/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/170518.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 18, 2017, Vol. 20, No. 98 Headlines A U S T R A L I A ACQUIRE LEARNING: First Creditors' Meeting Set for May 24 AUSSIE CARE: Second Creditors' Meeting Set for May 25 CK CROUCH: First Creditors' Meeting Set for May 25 CMF PROJECTS: Brisbane Construction Firm Goes Into Liquidation COURTENAY HOUSE: Court Appoints Grant Thornton as Liquidators DALY INTERNATIONAL: In Administration; 80 Workers Axed DAMAT HOLDINGS: Second Creditors' Meeting Set for May 25 DIGIMOB AUSTRALIA: First Creditors' Meeting Set for May 25 FELICI PTY: First Creditors' Meeting Slated for May 25 JETSPARK PTY: Second Creditors' Meeting Set for May 24 MESOBLAST LIMITED: Director Acquires 255,912 Ordinary Shares C H I N A BIOSTIME INT'L: PGT Option Disclosure No Impact Moody's Ba2 CFR HONG SENG: Fitch Rates Proposed US$ Senior Notes at 'B(EXP)' LOGAN PROPERTY: Fitch Rates Proposed USD Senior Notes 'BB-(EXP)' H O N G K O N G NOBLE GROUP: Moody's Lowers CFR to Caa1; Outlook Negative I N D I A AARTI INFRA: CARE Issues D Issuer Not Cooperating Rating AASTHA COLD: CARE Issues D Issuer Not Cooperating Rating ARDEE TECHNOLOGIES: CARE Lowers Rating on INR27.10cr Loan to D ARUMUGHA MUDHALIAR: CARE Reaffirms 'D' Rating on INR5.13cr Loan BANSAL RICE: Ind-Ra Migrates 'B' Rating to Non-Cooperating CENTURY 21: ICRA Raises Rating on INR92cr Loan to BB CHIRAG AGROFINS: ICRA Cuts Rating on INR20cr Fund Based Loan to D CLS INDUSTRIES: CARE Raises Rating on INR14.01cr Loan to 'C' COASTAL ENERGY: ICRA Lowers Rating on INR645.50cr Loan to 'D' CURE LIFE: CARE Issues D Issuer Not Cooperating Rating ELKAYPEE SPINNERS: Ind-Ra Migrates BB- Rating to Non-Cooperating GAJRA GEARS: CARE Issues D Issuer Not Cooperating Rating GEMINI CONSOLIDATED: CARE Reaffirms 'D' Rating on INR6.56cr Loan GULSHAN RAI: Ind-Ra Migrates BB Rating to Non-Cooperating H K TIMBERS: CARE Assigns 'D' Rating to INR7.50cr ST Loan LION INSULATION: CARE Issues D Issuer Not Cooperating Rating LOKMANGAL SUGAR: CARE Lowers Rating on INR174.71cr Loan to D MOHAN BREWERIES: CARE Reaffirms 'D' Rating on INR122.91cr Loan NEEL KANTH: Ind-Ra Migrates B+ Rating to Non-Cooperating NV DISTILLERIES: CARE Reaffirms 'D' Rating on INR285.10cr Loan QUADROS AUTOMARK: CARE Issues D Issuer Not Cooperating Rating S.M. CONSTRUCTIONS: CARE Reaffirms 'C' Rating on INR6.39cr Loan S.N.N TEXTILES: ICRA Reaffirms B+ Rating on INR10cr Loan SAARTH ENTERPRISES: CARE Lowers Rating on INR8cr Loan to 'D' SARVESH CARS: ICRA Assigns B+ Rating to INR8.90cr LT Loan SEA BLUE: CARE Issues D Issuer Not Cooperating Rating SHIVA STRUCTURES: Ind-Ra Assigns BB Long-Term Issuer Rating SHRI BALAJI: CARE Issues D Issuer Not Cooperating Rating SKS POWER: CARE Reaffirms 'D' Rating on INR5,456.96cr Loan SRI RANGANATHA: CARE Lowers Rating on INR7.50cr LT Loan to D VAIDEHI TRENDZ: Ind-Ra Assigns BB- Long-Term Issuer Rating VRIDHI IRON: Ind-Ra Migrates B+ Rating to Non-Cooperating J A P A N MORITOMO GAKUEN: Files for Bankruptcy Protection TOSHIBA CORP: Group Companies Pulling Money out of Parent M A C A U LINIU TECHNOLOGY: UHY LLP Raises Going Concern Doubt M A L D I V E S MALDIVES: Fitch Assigns First-Time 'B+' Long-Term IDR P H I L I P P I N E S CHONTA INDUSTRIAL: BIR Files PHP61.82MM Tax Evasion Case S O U T H K O R E A DAEWOO SHIPBUILDING: Set to Receive New Loan Later This Month - - - - - ================= A U S T R A L I A ================= ACQUIRE LEARNING: First Creditors' Meeting Set for May 24 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Acquire Learning & Careers Pty Ltd, Acquire Learning Pty Ltd, and Acquire Retail Pty Ltd will be held at the Institute of Chartered Accountants, Level 18, 600 Bourke Street, in Melbourne, Victoria, on May 24, 2017, at 10:30 a.m. Barry Wight, Bruno A Secatore & Sam Kaso of Cor Cordis Chartered Accountants were appointed as administrators of May 12, 2017. AUSSIE CARE: Second Creditors' Meeting Set for May 25 ----------------------------------------------------- A second meeting of creditors in the proceedings of Aussie Care Holdings Ltd has been set for May 25, 2017, at 10:00 a.m. at 426 King St, in Newcastle West, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by May 24, 2017, at 4:00 p.m. Daniel Jon Quinn, Daniel Jon Quinn and Darren John Vardy of SV Partners were appointed as administrators of Aussie Care on April 19, 2017. CK CROUCH: First Creditors' Meeting Set for May 25 -------------------------------------------------- A first meeting of the creditors in the proceedings of CK Crouch Pty Ltd will be held at Level 30, 525 Collins Street, in Melbourne, Victoria, on May 25, 2017, at 11:00 a.m. Stephen Robert Dixon and Ahmed Bise of Grant Thornton were appointed as administrators of CK Crouch on May 16, 2017. CMF PROJECTS: Brisbane Construction Firm Goes Into Liquidation -------------------------------------------------------------- Glen Norris at The Courier-Mail reports that another Brisbane construction company has gone under in the latest sign the downturn in the city's apartment market is deepening, and a damning prediction from an industry insider says many more companies will soon fall. Liquidators were called in to wind up Nathan-based CMF Projects last week, leaving scores of subcontractors in the lurch and at least two incomplete projects around Brisbane, according to the report. CMF, whose directors include Greg Campbell and Cameron Fidler, built high-rise apartments in inner city suburbs including Woolloongabba, Newstead and Bulimba, the report discloses. According to the Courier-Mail, CMF's collapse is the latest in a string of building company insolvencies as a boom in apartment construction tanks. The Courier-Mail says Newstead-based CKP collapsed last month after it racked up debts in excess of AUD3 million and left four uncompleted projects around the city, while Brisbane-based Bloomer Constructions has gone under, owing an estimated AUD15 million. Brisbane/Gold Coast-based Cullen Group collapsed just before Christmas owing subbies an estimated AUD18 million and leaving a string of uncompleted projects, adds The Courier-Mail. COURTENAY HOUSE: Court Appoints Grant Thornton as Liquidators ------------------------------------------------------------- Following an application by the Australian Securities and Investment Commission, the Supreme Court of NSW has made orders, by consent, for the winding up of Courtenay House Capital Trading Group Pty Ltd and Courtenay House Pty Ltd (Courtenay House companies) and the appointment of Said Jahani and John McInerney, of Grant Thornton, as joint liquidators to both companies. ASIC sought the appointment of a liquidator as part of its ongoing investigation into the Courtenay House companies so that the affairs of the companies can be wound up in an orderly manner for the benefit of all creditors. Mr. Jahani and Mr. McInerney, as liquidators, now have control over the assets and business of Courtenay House Trading Group and Courtenay House. The Courtenay House companies had previously offered returns to investors on capital allegedly invested in foreign exchange and futures commodities when they were not licensed to do so. The winding up follows interim orders made by the Supreme Court of NSW on May 1, 2017 against Courtenay House Trading Group, Courtenay House and associated parties to freeze their assets, prevent them from carrying on a financial services business and to prevent Mr. Tony Iervasi, director of the Courtenay House companies from leaving Australia. ASIC's investigation is ongoing and cannot comment at this time. All publicly available information will be published on a dedicated webpage at http://asic.gov.au/courtenay-house.This site also includes information on how to contact ASIC to provide information as part of our investigation. Investors in the Courtenay House companies should refer to this website for ongoing updates. Investors seeking information about the impact of the winding up of the Courtenay House companies for them and their investment funds should contact Mr. Jahani and Mr. McInerney at Grant Thornton care of: Mr. Fraser Wilkinson Phone: (02) 8297 2698 Email: courtenayhouse@au.gt.com General information about liquidation and its implications for creditors can be found in ASIC's Information Sheet Information Sheet 45 Liquidation: a guide for creditors [INFO 45]. DALY INTERNATIONAL: In Administration; 80 Workers Axed ------------------------------------------------------ CRN reports that Daly International has called in administrators under the weight of millions in debt to unsecured creditors and employees. The company, which has offices in Australia and the UK, appointed Peter Dinoris of Artemis Insolvency on April 13 after more than 25 years in business, predominantly delivering projects for mobile carriers, including Vodafone and Optus, CRN says. According to CRN, the administrator terminated all 80 of Daly's staff upon its appointment, as well as vacating all business premises, which included offices in Sydney, Brisbane, Melbourne, Adelaide and Perth. Minutes from the first meeting of creditors did not reveal the cause of the collapse nor the full extent of Daly's debt, however, the administrator has so far received proof of AUD5.1 million owed to unsecured creditors, according to CRN. Priority employee entitlements total AUD2.1 million, including superannuation, wages and annual leave, CRN discloses. Secured creditors include ANZ Bank and cashflow finance provider Hermes Capital, the report notes. The administrator, Peter Dinoris, told CRN that he was yet to receive proof of debts from all creditors. Daly International has AUD250,000 cash in the bank and a debtor book worth AUD2.1 million -- still a significant shortfall given the size of its debts, the report states. CRN relates that Mr. Dinoris said he was looking into the sale of shares in wholly owned subsidiary Woolacott Consulting Engineers to another company, Daly Capital, on April 7, a week before his appointment. "Investigations are continuing into the affairs of the company, which include the sale of the shares in Woolacotts to determine if the sale represented an uncommercial transaction," he told CRN. In a separate document, Mr. Dinoris revealed he had been contacted in March through business turnaround consultant Vantage Performance to help the director, Peter John Daly, submit a proposed deed of company arrangement, says CRN. A DOCA is a formal agreement under which a company can continue trading while in administration to maximise the return to creditors, rather than be liquidated, the report notes. CRN adds that the future of the company -- with liquidation one option alongside the proposed DOCA -- will be decided by creditors at their next meeting, where creditors will discuss the administrator's "major report" into Daly's business, property, affairs and financial services. DAMAT HOLDINGS: Second Creditors' Meeting Set for May 25 -------------------------------------------------------- A second meeting of creditors in the proceedings of Damat Holdings Pty Ltd has been set for May 25, 2017, at 2:00 p.m. at the offices of Heard Phillips Chartered Accountants, Level 12, 50 Pirie Street, in Adelaide, SA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by May 24, 2017, at 5:00 p.m. Mark Lieberenz and Anthony Phillips of Heard Phillips were appointed as administrators of Damat Holdings on April 19, 2017. DIGIMOB AUSTRALIA: First Creditors' Meeting Set for May 25 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Digimob Australia Pty Ltd will be held at the offices of Heard Phillips Chartered Accountants, Level 12, 50 Pirie Street, in Adelaide, SA, on May 25, 2017, at 11:00 a.m. Mark Lieberenz and Andrew Heard of Heard Phillips were appointed as administrators of Felici Pty on May 15, 2017. FELICI PTY: First Creditors' Meeting Slated for May 25 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Felici Pty Ltd will be held at the offices of Heard Phillips Chartered Accountants, Level 12, 50 Pirie Street, in Adelaide, SA, on May 25, 2017, at 10:00 a.m. Mark Lieberenz and Andrew Heard of Heard Phillips were appointed as administrators of Felici Pty on May 15, 2017. JETSPARK PTY: Second Creditors' Meeting Set for May 24 ------------------------------------------------------ A second meeting of creditors in the proceedings of Jetspark Pty Ltd has been set for May 24, 2017, at 11:00 a.m. at Level 1, 6 Allison Street, in Bowen Hills, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by May 23, 2017, at 4:00 p.m. Anne Marie Barley of AMB Insolvency was appointed as administrator of Jetspark Pty on April 7, 2017. MESOBLAST LIMITED: Director Acquires 255,912 Ordinary Shares ------------------------------------------------------------ Mesoblast Limited submitted a Change in Director's Interest Notice form to the Australian Securities Exchange. Donal O'Dwyer had exercised his option to acquire 255,912 ordinary shares of Mesoblast for US$113,599. Prior to the transaction, Mr. O'Dwyer held the following securities: (a) 511,824 Options held as follows: * 255,912 options held directly; and * 255,912 options held indirectly. (b) 619,818 Ordinary Shares held as follows: * 300,000 shares held directly; and * 319,818 shares held indirectly. Following the transaction, Mr. O'Dwyer held these securities: (a) 255,912 Options held as follows: * 255,912 options held directly; and * Nil options held indirectly. (b) 875,730 Ordinary Shares held as follows: * 555,912 shares held directly; and * 319,818 shares held indirectly. A full-text copy of the regulatory filing is available at: https://is.gd/WtLfXZ About Mesoblast Ltd. Melbourne, Australia-based Mesoblast Limited (ASX:MSB; Nasdaq:MESO) develops cell-based medicines. The Company has leveraged its proprietary technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a broad portfolio of late-stage product candidates. Mesoblast's allogeneic, 'off-the-shelf' cell product candidates target advanced stages of diseases with high, unmet medical needs including cardiovascular diseases, immune-mediated and inflammatory disorders, orthopedic disorders, and oncologic/hematologic conditions. As of Dec. 31, 2016, Mesoblast had $660.88 million in total assets, $150.36 million in total liabilities and $510.51 million in total equity. Mesoblast reported a loss before income tax of $90.82 million for the year ended June 30, 2016, compared to a loss before income tax of $96.24 million for the year ended June 30, 2015. PricewaterhouseCoopers, in Melbourne, Australia, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2016, citing that the Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. ========= C H I N A ========= BIOSTIME INT'L: PGT Option Disclosure No Impact Moody's Ba2 CFR --------------------------------------------------------------- Moody's Investors Service says that Biostime International Holdings Limited's disclosure of PGT Healthcare LLP's (PGT, unrated) option in the collaboration agreement between PGT and Swisse Wellness Group Pty Ltd (unrated), an Australian vitamin, herbal and mineral supplements provider that Biostime owns 100%, will not immediately affect its Ba2 corporate family rating, the Ba3 rating on its senior notes, or the stable outlook on the ratings. "The PGT option, which gives PGT the option to take over active sales of Swisse's products in China, can take effect at the earliest in September 2020 and will not affect Biostime's operations before that time," says Gerwin Ho, a Moody's Vice President and Senior Analyst. Based on Moody's expectation of continued deleveraging and a steady rise in active sales of Swisse's products in China, Moody's expects the PGT option, if exercised, to have limited financial impact on Biostime's credit metrics. The collaboration agreement gives PGT the right to develop markets for Swisse's products globally, except for the markets of Australia, New Zealand, United States, Canada and China. PGT Healthcare LLP is a joint venture between The Procter & Gamble Company (Aa3 stable) and Teva Pharmaceutical Industries Ltd (Baa2 negative). On 12 May 2017, Biostime disclosed that the global collaboration agreement signed by Swisse and PGT in November 2013, and subsequently amended in March 2015, grants PGT an option in respect of active sales of Swisse's products in China, which encompass sales through China cross border e-commerce platforms and normal trade. Active sales of Swisse's products in China accounted for only 6% of Biostime's revenues in 2016. The PGT option, if exercised, will require Swisse to either (1) transfer its China active sales business to PGT; or (2) continue to operate in China and pay PGT a royalty based on net sales achieved after the exercise date. The option does not affect the other territories operated by Swisse, including Australia, New Zealand, the United States and Canada. The earliest time the option could take effect is on September 2020, subject to a 12-month notice period. The first option would grant Swisse the right to receive an annual fixed income stream from PGT which would be the aggregate of 50% of the operating profit of active sales of Swisse's products in China in the 12 months prior to the transfer date, plus royalties of between 4% and 7.75% of the incremental net sales of active sales of Swisse's products in China after the transfer date and certain other milestone payments. Under the second option, Swisse would pay royalties representing 4.75% of net sales of active sales of Swisse's products in China to PGT each year after the exercise date. Moody's will monitor (1) the growth and scale of active sales of Swisse's products in China and (2) any regulatory developments that could affect active sales of Swisse's products in China. Moody's also understands from Biostime that there are no other substantial undisclosed clauses in the collaboration agreement between PGT and Swisse. The principal methodology used in these ratings was Global Packaged Goods published in January 2017. 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 provider Swisse Wellness Group Pty Ltd (unrated) in September 2015, and further raised its stake to 100% in February 2017. 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 in the company at end-December 2016. HONG SENG: Fitch Rates Proposed US$ Senior Notes at 'B(EXP)' ------------------------------------------------------------ Fitch Ratings has assigned Hong Seng Limited's proposed US dollar guaranteed senior notes an expected 'B(EXP)' rating with a Recovery Rating of 'RR4'. Hong Seng is wholly owned by Hong Yang Group Company Limited (B/Stable), which will provide an unconditional and irrevocable guarantee to the proposed notes. The notes are rated at the same level as Hong Yang's senior unsecured rating because they constitute its direct and senior unsecured obligations. Hong Yang's ratings are supported by its high-quality landbank, which focuses on the city of Nanjing, capital of China's Jiangsu province, and the Yangtze River Delta. This helps drive the company's contracted sales growth and better gross profit margin than its 'B' rated peers. Hong Yang also has a higher recurring income arising from the larger scale of its property rental business. The homebuilder's ratings are constrained by its small landbank, which limits its ability to deleverage. Furthermore, home purchase restrictions that affect cities within Jiangsu province create uncertainty for Hong Yang's contracted sales pace, although selling prices are likely to be supported by firm demand. The final rating of the notes is subject to the receipt of final documentations conforming to information already received. Hong Yang says it intends to use the net proceeds from the note issue for refinancing and general corporate purposes. KEY RATING DRIVERS Landbank Drives Expanding Scale: Hong Yang's high-quality landbank drives its expanding scale, with contracted sales growth of 46% and a contracted average selling price (ASP) increase of 39% in 2016. About 57% of the homebuilder's landbank is located in Nanjing and over 80% is located in tier-2 cities within the Yangtze River Delta, as measured by attributable gross floor area. Hong Yang's well-positioned landbank and differentiated products enable the company to enjoy a higher gross profit and EBITDA margin - before capitalised interest - than most of its 'B' rated peers. Government policies to control residential property price rises create near-term uncertainty for Hong Yang's contracted sales pace, since its landbank is concentrated in Nanjing, which is affected by these measures. However, the company is diversifying its landbank to the city of Hefei in Anhui province, as well as Suzhou, Wuxi, Changzhou, Nantong and Zhenjiang in Jiangsu province. Fitch expects Nanjing to account for about 30% of Hong Yang's contracted sales in 2017, compared with 64% in 2016. Niche Property Rental Business: Hong Yang's investment property portfolio, with large-scale retail and wholesale of household construction and decoration materials, enjoys a niche market position and near-full occupancy rates. The portfolio provides a recurring EBITDA/interest coverage ratio of 0.3x-0.5x, higher than for 'B' rated peers. Rental income increased during 2014- 2016 due to strong upgrade demand for household furniture and decorations. Fitch expects rental income from this segment to continue improving and supporting Hong Yang's ratings. Small Landbank: Hong Yang's total landbank was about 4 million square metres (sq m) at end-2016, which will last for three to four years based on its current development pace. Hong Yang has to replenish its landbank at market prices, mainly from public auctions. The homebuilder acquired land in 2016 through the formation of joint ventures with other developers and financial institutions, which helped diversify its geographical asset allocation. Fitch expects the contracted sales contribution from joint ventures to be the key growth driver of attributable contracted sales in 2017. Land Replenishment Pressures Leverage: Fitch expects Hong Yang's leverage, measured by net debt/adjusted inventory, to hover at 50%-60% in 2017, as Fitch believes the company will need to use about 70% of its attributable contracted sales proceeds each year to acquire new land to sustain its contracted sales scale. Hong Yang's attributable land acquisition costs amounted to CNY8.4 billion in 2016, representing over 70% of its attributable contracted sales. The average cost of its landbank amounted to CNY6,854/sq m at end-2016, or about 40% of Fitch's expected 2017 contracted ASPs, which appears reasonable. The average cost of land acquired in 2016 rose to CNY11,000/sq m, indicating steadily rising prices that may pressure profit margins if selling prices remain tightly controlled. DERIVATION SUMMARY Ronshine China Holdings Limited (B+/Stable) is the closest peer to Hong Yang, as both companies focus on first- and second-tier cities in the Yangtze River Delta region. Compared with Ronshine, Hong Yang has a smaller contracted sales scale and landbank, while its leverage, defined by net debt/adjusted inventory, is higher. Yida China Holdings Limited (B/Positive) is comparable with Hong Yang in terms of scale, margin and investment property recurring EBITDA/gross interest of above 0.3x. However, Yida's leverage is lower, at about 45%, with a larger landbank. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: - Consolidated contracted sales at CNY10 billion-20 billion a year in 2017-2019 (2016: CNY12 billion) - Annual land premium accounting for about 70% of attributable contracted sales (2016: 69%) - Gross profit margin before capitalised interest and after business tax of 32%-36% in 2017-2019 (2016: 30%) - Average occupancy rate for investment properties to remain near 100% RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Contracted sales sustained at CNY15 billion or above - EBITDA margin, excluding capitalised interest, sustained at 30% or above - Leverage, measured by net debt/adjusted inventory, sustained below 50% Developments that May, Individually or Collectively, Lead to Negative Rating Action - Contracted sales below CNY8 billion for a sustained period - EBITDA margin, excluding capitalised interest, below 20% for a sustained period - Leverage, measured by net debt/adjusted inventory, above 60% for a sustained period LIQUIDITY Sufficient Liquidity: Hong Yang had unrestricted cash of CNY3.6 billion as at end 2016 and unused bank credit facilities of CNY2.8 billion, mainly from the big-five state-owned banks, sufficient to cover short-term borrowings of CNY4.9 billion. The company has approval to issue CNY4 billion in private onshore bonds. Its debt maturities are spread out for the next five years and beyond and its average borrowing cost declined to 6.5% in 2016, from 8.7% in 2015. LOGAN PROPERTY: Fitch Rates Proposed USD Senior Notes 'BB-(EXP)' ---------------------------------------------------------------- Fitch Ratings has assigned Logan Property Holdings Company Limited's (BB-/Stable) proposed US dollar senior notes a 'BB- (EXP)' expected rating. The notes are rated at the same level as Logan's senior unsecured rating because they constitute its direct and senior unsecured obligations. The final rating is subject to the receipt of final documentation conforming to information already received. Logan's ratings are supported by its well-located land bank in Shenzhen city and the Guangdong region. This provides the company with stronger contracted sales and margin visibility over the next 24 months compared with rated peers of similar size. KEY RATING DRIVERS Leverage to Increase: Fitch expects Logan's leverage, measured by net debt/adjusted inventory, to rise to 40%-45% in the next 12-18 months. Its 2016 leverage increased to 37%, from 32% in 2015, after it acquired well-located sites in Shenzhen to reposition its land bank. Fitch expects the company to replenish its land bank in Shenzhen from 2017, mostly via redevelopment projects due to the limited land parcels available in the open market. This may result in lower land cost and more spread-out land payment terms. Robust Contracted Sales, Margins Maintained: The company's contracted sales have increased by over 40% a year since 2014, to CNY29 billion in 2016. The Fitch-calculated EBITDA margin widened to 30% in 2016, compared with 26% in 2014. Fitch expects average selling prices to improve given Logan's well-positioned land bank, although sales by gross floor area are likely to drop. Fitch expects the company to meet its consolidated contracted sales target of CNY35 billion for the next 12-18 months and maintain its margin at 29%-30% over the next two years. Cash Outflow for JVs: Fitch expects Logan to buy back stakes in its joint ventures (JVs) held by financial investors once contracted sales in these projects start in 2017. Logan says these investors have committed CNY8.7 billion to the JVs. Fitch expects a cash outflow of around CNY4.4 billion in 2017 related to these stake purchases, which will leave CNY4.3 billion to be purchased later. Concentration Risks: Fitch believes the well-located and high- quality land bank mitigates Logan's concentration risks over the next year or two. Logan's contracted sales are highly concentrated in the Guangdong region, with Shenzhen city contributing around 43% of 2016 contracted sales. The cities of Shenzhen, Shantou, Foshan and Nanning - all in the Pearl River Delta region - accounted for over 80% of contracted sales in 2015 and 2016. Fitch expects Shenzhen to continue to account for 30%- 45% of Logan's total attributable contracted sales in 2017-2018. However, the concentration in Guangdong means Logan's sales performance is strongly correlated with the local economy and local policy changes compared with developers that have more geographically diversified operations. DERIVATION SUMMARY Logan's contracted sales are comparable with other 'BB-' rated Chinese developers that have contracted sales of CNY28billion-32 billion. These peers include KWG Property Holding Limited (BB- /Stable), China Aoyuan Property Group Limited (BB-/Stable) and CIFI Holdings (Group) Co. Ltd. (BB-/Positive). Logan's EBITDA margin is also similar to that of margin-focused homebuilders such as KWG and Yuzhou Properties Company Limited (BB-/Stable). The increase in Logan's leverage to 37% at end-2016 puts it in line with that of peers such as KWG, with leverage of 40%-42%, Yuzhou's 38%-42% and Times Property Holdings Limited (B+/Positive), with 38%-40%. No Country Ceiling or parent/subsidiary aspects affect the rating. Operating environment risks make it unlikely for companies in this sector to be rated above 'BBB+'. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: - Contracted sales by gross floor area to decrease by 35% in 2017 and increase by 2% in 2018 - Average selling price for contracted sales to increase by 60% in 2017 and 2% in 2018 - EBITDA margin stays at 29%-30% in 2017-2018 - Cash out flow of around CNY4.4 billion in 2017 to buy back financial investors' JV stakes RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Substantial increase in its scale, with annual attributable contracted sales sustained above CNY30 billion - Sustained leadership position in key cities in the greater Guangdong area - Achieving sustainable neutral or positive cash flow from operation - EBITDA margin sustained above 30% - Net debt/adjusted inventory sustained below 35% Developments that May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory above 45% for a sustained period - EBITDA margin below 25% for a sustained period LIQUIDITY Sufficient Liquidity: Logan had CNY15 billion of cash on hand, including CNY1.2 billion of restricted cash, at end-2016, compared with short-term debt of CNY5.1 billion. The company had a high cash collection ratio of above 90% for the past two years. Over 75% of Logan's total debt is denominated in Chinese yuan, as the company continued to tap onshore debt markets, including CNY7.4 billion raised in 2016. ================ H O N G K O N G ================ NOBLE GROUP: Moody's Lowers CFR to Caa1; Outlook Negative --------------------------------------------------------- Moody's Investors Service has downgraded Noble Group Limited's corporate family rating and senior unsecured bond ratings to Caa1 from B2, and the rating on its senior unsecured medium-term note (MTN) program to (P)Caa1 from (P)B2. The ratings outlook remains negative. RATINGS RATIONALE "The downgrade reflects heightened concern over Noble's liquidity stemming from its weak operating cash flow and large debt maturities over the next 12 months," says Gloria Tsuen, a Moody's Vice President and Senior Analyst. "In addition, the company's loss during 1Q 2017 suggests significant uncertainties over an operational turnaround and the high likelihood of debt leverage remaining elevated," adds Tsuen. Noble's liquidity headroom - including readily available cash and unutilized committed facilities - was at $2.4 billion at end-1Q 2017 compared with $2.0 billion at end-2016, helped by the issuance of a $750 million, five-year senior unsecured bond in March. However, after paying down $650 million in bank debt and the maturity of a revolving credit facility in early May 2017, the headroom would have narrowed to $1.2 billion and become insufficient to cover the $2.1 billion in debt due for the rest of 2017 and 1H 2018. Moreover, Moody's expects its profitability and operating cash flow to remain weak over the next 12 months, which would further worsen its liquidity position and make it more difficult to renew or refinance the maturing debt. Moody's expects that the company will not return to profitability this year and EBITDA will be at depressed levels. As a result, Noble's adjusted net debt/EBITDA should be above 10x over the next 12 months when compared with the 7.6x registered in 2016. Likewise, its adjusted EBITDA/interest should decrease to below 1.0x from 1.6x in 2016. On May 11, 2017, Noble announced that its reported loss before interest and tax reached $107 million in 1Q 2017, compared with a profit of $125 million a year ago. The company said the weak performance was driven mainly by dislocations in the coal market, where the decoupling of long-term price correlations impacted hedging activities. Working capital also used up $223 million in cash, and as a result cash flow from operations was negative $323 million in 1Q 2017. Noble's senior unsecured ratings are not notched down for legal subordination, as secured debt totaling $721 million remained below 15% of total reported debt at end-March 2017. However, any further increase in secured debt would lead to an application of notching and would therefore pressure the senior unsecured ratings. The negative outlook on the ratings reflects the company's weak liquidity over the next 12 months and significant uncertainty around its ability to rebuild and reposition its operations to improve profitability and cash flow. The ratings outlook could return to stable, if the company can generate positive earnings and operating cash flow and maintain cash balances at levels more than sufficient to cover its maturing debt over the next 12 months. However, Noble's ratings are likely to be downgraded if its cash flow from operations or liquidity deteriorates further. The principal methodology used in these ratings was Trading Companies published in June 2016. Noble Group Limited is the largest global physical commodities supply chain manager in Asia by revenue. Its diversified activities across the supply chain include the sourcing, storage, processing, transportation, and distribution of over 20 commodity products. Founder and Chairman Emeritus, Mr. Richard Elman, holds an approximate 18% stake in the company. China Investment Corporation - the Chinese sovereign wealth fund - owns about 10%. ========= I N D I A ========= AARTI INFRA: CARE Issues D Issuer Not Cooperating Rating -------------------------------------------------------- CARE Ratings has been seeking information from Aarti Infra Projects Private Limited (AIPL), to monitor the rating(s) vide e- mail communications/letters dated February 3, 2017, February 18, 2017, March 8, 2017 and March 10, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on Aarti Infra Projects Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 26.23 CARE D; Issuer not Facilities cooperating; Based on best available Information Short-term Bank 15.00 CARE D; Issuer not Facilities cooperating; Based on best available Information Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been taken into account feedback received from banker of the company regarding conduct of the account of Aarti Infra Projects Private Limited. Key Rating Weaknesses Ongoing delays in debt servicing: As per interaction with banker, there has been delay in debt servicing and account has been classified as NPA. Nagpur-based, Aarti Infra-Projects Private Limited (AIPL) was incorporated in May 2006 and is a part of the Mandhana Group of Industries. Promoted by Mr Kanhaiyalal S Mandhana, and its entire shares are held by the Mandhana family. AIPL operates in three verticals viz, irrigation projects (barrage/dam radial gates and others), thermal power projects (fabrication and erection of heavy structures for power station and others) and hydro power projects (automatic tilting gates, high radial gates etc). The company is involved in designing, fabrication, erection, testing and commissioning of hydro mechanical equipments, penstocks, large diameter high pressure/low pressure pipeline and heavy structural works required for power plants and irrigation projects in the private and government sector. Since 2010, the company has also ventured into laying of power transmission lines. AIPL is registered as a Class 1A contractor in 15 states, including Maharashtra, Madhya Pradesh, Chattisgarh, Karnataka and Andhra Pradesh. The company is ISO 9001 certified and is based in Nagpur, Maharashtra, with projects executed all over India. Clients of AIPL include Vidarbha Irrigation Development Corporation (Rated CARE A-(SO), Dec 2014), BHEL (Rated CRISIL AAA/A1+, April 2015), Patel Engineering Ltd (Rated CARE BB/CARE A4, September 2014) Larsen & Toubro Ltd, SMS Infrastructure Ltd, Konkan Irrigation Development Corporation (CARE BBB+(SO), March 2013) and others. AASTHA COLD: CARE Issues D Issuer Not Cooperating Rating -------------------------------------------------------- CARE Ratings has been seeking information from Aastha Cold Storage to monitor the rating(s) vide e-mail communications/letters dated October 4, 2016, January 7, 2017, February 1, 2017 and February 17, 2017 and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. Furthermore, the firm has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on Aastha Cold Storage's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.90 CARE D; ISSUER NOT Facilities COOPERATING Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Deesa-based (Gujarat) Aastha Cold Storage (ACS) is a partnership firm engaged in the business of providing cold storage services. Established in the year 2013, ACS is operating from its plant located at Modasa-Gujarat. ACS has an installed capacity of 5000 metric tonnes of storage capacity as on March 31, 2015. ARDEE TECHNOLOGIES: CARE Lowers Rating on INR27.10cr Loan to D -------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Ardee Technologies Private Limited (ATPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 27.10 CARE D Revised from Facilities CARE B+ Short-term Bank 18.50 CARE D Revised from Facilities CARE A4 Detailed Rationale & Key Rating Drivers The revision in the rating assigned to the bank facilities of ATPL takes into account subdued demand for steel resulting stressed liquidity position and consequent delays in servicing of debt obligation. Improvement in the liquidity profile with subsequent regularization of debt servicing is the key rating sensitivity. Detailed description of the key rating drivers Key rating Weaknesses Delays in debt servicing: The demand for steel remained subdued during FY16 (refers to the period April 1 to March 31) on account of weak domestic and international market scenario, resulting in higher inventory pile up coupled with delay in realization of debtors leading to stressed liquidity conditions during FY16. The above situation led to cash flow mismatches and in turn the company has been delaying in meeting its debt obligations in time. Decline in total operating income: The company has been witnessing decline in its scale of operations year-on-year. The total operating income of the company declined from Rs 59.58crore in FY15 and to Rs 45.65 crore in FY16 mainly on account of non- renewal of a long term purchase contract with a Germany based firm for supplying of a raw material - "inserts" which is required for the production of final product. However, the company could not operate efficiently due to non-availability of raw material which along with general industry slow-down resulted in decline in scale of operations. The company is now procuring the same raw material from a firm in Italy. Deterioration of capital structure and debt coverage indicators: The capital structure of the company has been deteriorating, although remained at moderate level during the review period. The debt to equity has been deteriorated from 0.49x as on March 31, 2015 to 0.67x as on March 31, 2016, on account of increase in bank term loan (from EXIM and SIDBI) used for financing its investment/loan to its overseas subsidiary, viz. Keystone Sensors LLC, USA (KSL) for the purpose of acquisition of some specific assets. Furthermore, the Overall gearing of the company deteriorated from 1.20x as on March 31, 2015 to 1.32x as on March 31, 2016 on account of reason mentioned above coupled with full working capital utilization. Elongation of working capital cycle: The company has been facing tight liquidity position as indicated by its elongated operating cycle of 262 days in FY16 (FY15: 177 days), low quick ratio of 0.68x in FY16 (FY15:0.82x) and full working capital utilization. The extended operating cycle was due to high collection and inventory days. Key rating Strengths Experienced promoters with established track record: ATPL is promoted by Mr G S Narayan who is a chemical engineer with an experience of around 40 years in the iron and steel industry in India and abroad specifically in the field of molten metal measurements and control. Another director, Dr G Sunanda, is a PhD qualified in chemical engineering. ATPL has an established track record of business of over 25 years has its operations spread over six units across India in Orissa, West Bengal, AP, Chhattisgarh and Maharashtra. In-house R&D centre approved by Department of Science and Technology: The company has in-house R&D centre approved by the Department of Science and Technology Government of India. The company has developed many innovative products (Viz. high dimension cored wire for deoxidation of steel, "Wire-in Wire" for improved recovery during wire injection and magnesium & calcium metal powder) and also received patents for some of them. ATPL has been granted ISO 9001:2008 certificates for its two units atRourkele, manufacturing measurement instruments and cored wires. ATPL, incorporated on October 7, 1987, was promoted by Mr G S Narayan who is a chemical engineer with about 40 years of experience in the iron and steel industry. The company is engaged in manufacturing of various kinds of sensors used for measuring temperature and gas content in molten iron, steel and other metals. The product profile comprises products like sensors (Active Oxygen Sensors, Hydrogen measurement sensors, carbon sensors, multiple sensors, etc), ferro alloy and modification products (cored wire with calcium modification agents, aluminium, magnesium, etc), accessories (auto-lance, arcocored wires, CECAL pipes, etc). It also provides services, viz, Total probe management, De-oxidation management, Desulphurisation management, lance management, etc. Furthermore, the company also manufactures cored wires at its manufacturing facility located in China. During FY16, the company reported PBILDT of INR8.55 crore (FY15 - INR9.03 crore) and net profit of INR0.20 crore (FY15 - net profit of INR2.39 crore) on a total operating income of INR45.65 crore (FY15 -Rs.59.58crore). ARUMUGHA MUDHALIAR: CARE Reaffirms 'D' Rating on INR5.13cr Loan --------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Arumugha Mudhaliar Sornam Educational Trust (AMT), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.13 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of AMT continue to be constrained by ongoing delays in servicing of debt obligation. Improvement in the liquidity profile with subsequent regularization of debt servicing is the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Ongoing delays in meeting the debt obligations: The trust is irregular in servicing its debt obligations with ongoing delays from the month of October 2016, which remains overdue for more than 3 months as of March 20, 2017. The delay is primarily due to tight liquidity position of trust. However, banker opined that trust has applied for the restructuring of term loans which is expected to be sanctioned in the near future. Arumugha Mudhaliar Sornam Educational Trust (AMT) was established in March 1992 by Mr A. Krishnaswamy and registered under Indian Trust Act. The main objective of the trust is to provide education services and engage in social welfare activities like eye camp and blood donation camp to the rural population. Presently, the trust runs 6 institutions consisting of an engineering college (both UG and PG courses), Arts and Science College, Polytechnic College, one teacher training college (B.Ed. course), Matriculation higher secondary school and a nursery school. The institutions are located in Cuddalore district, Tamil Nadu. The above institutions are managed by experienced professionals in their respective fields. The total student strength of the institutions run by the trust as at March 20, 2017 was 2181. In FY16, AMT reported a PAT of INR0.55 crore on a total operating income of INR9.79 crore, as against a PAT and TOI of INR4.05 crore and INR12.77 crore respectively in FY15. BANSAL RICE: Ind-Ra Migrates 'B' Rating to Non-Cooperating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Bansal Rice Mills' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR24.40 mil. Term Loan migrated to Non-Cooperating Category; and -- INR120 mil. Fund Based Working Capital Limit migrated to Non-Cooperating Category Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 30, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established on April 13, 2007, in Punjab, Bansal Rice Mills is a partnership firm engaged in the business of rice milling. CENTURY 21: ICRA Raises Rating on INR92cr Loan to BB ---------------------------------------------------- ICRA Ratings has upgraded its long-term rating to [ICRA]BB from [ICRA]B+ on the INR92.0-crore fund-based facilities and INR2.0- crore unallocated limits of Century 21 Town Planners Private Limited (CTPPL). The outlook on the long-term rating is 'Stable'. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based limits 92.00 [ICRA]BB(Stable); upgraded from [ICRA]B+ Unallocated limits 2.00 [ICRA]BB(Stable); upgraded from [ICRA]B+3 Rationale The rating upgrade takes into account the healthy operating profile of the company's C-21 mall, characterised by full occupancy, growing average rentals and good client profile as well as the refinancing of the company's lease rental discounting loan provides cushion to the cash flows in the short to medium term given the longer repayment tenure . The rating positively factors in the established and strengthened position of the group that owns three leading malls in Indore. The rating continues to be supported by the presence of escrow mechanism, with debt servicing reserve account and favourable interest cost for its loans. The rating, however, remains constrained by the company's exposure to execution risk pertaining to its commercial project, wherein progress has remained modest; the company will be availing additional debt to fund the same. ICRA notes that the Treasure Island mall acquired by the group in 2015 is now operational and well occupied, thus the funding support from CTPPL would be minimal. Going forward, the company's ability to maintain the performance of the existing mall and manage cashflows efficiently in the backdrop of ongoing project execution will continue to be rating sensitivity. Additionally, the impact of any additional debt availment on the company's credit profile will be a key rating monitorable. Key rating drivers Credit strengths * Strong market position of the group in Indore * Mature status of C21 mall which is 100% occupied; presence of well known brands has assisted in attracting higher footfalls. * Longer repayment tenure of new loan lends comfort Credit weaknesses * Moderate execution risk with commitments towards existing commercial project; the risk is partly alleviated by execution track record of the promoters * Pending debt tie up for construction of the new project Description of key rating drivers highlighted above: The company's promoters have more than a decade of experience in the real estate business and the group owns most of the leading malls in Indore. The C21 mall has a high occupancy, with a total leasable area of more than 25 lakh sq. ft, 100% of which is occupied. It generates healthy gross annual cash flows of ~Rs 25 crore. The average rentals are expected to grow with major renewals coming up in the next two years. Furthermore, the attractive location of the property and the presence of well known brands such as More Megastore, Lifestyle, Inox Cinemas has assisted the mall in attracting higher footfalls. The top three tenants account for ~42% of the leasable area at present. The company's existing commercial project is ongoing at a modest pace for which it is planning to raise a construction loan, hence exposing it to execution risks. Given that the new project is yet to be launched, pending the ramp up of new cashflows, the company's ability to improve its coverage metrics remains to be seen. . Nevertheless, the longer tenure of new loan provides cushion to the company's cashflows in the short to medium term. The same continues to be supported by an escrow and debt service reserve account mechanism. The ability of the company to maintain the performance of the existing mall and manage cash flows efficiently against the backdrop of ongoing project execution will be the key rating sensitivity. Additionally, the impact of any additional debt sanction on the company's credit profile will be a key rating monitorable. Analytical approach: For arriving at the ratings, ICRA has taken into account the standalone financial of CTTPL, along with its business risk profile and the management profile. CTTPL is promoted by Mr. Gurjeet Singh Chhabra and is currently operating a mall (C-21 Mall) in Indore, Madhya Pradesh with a gross leasable area of 3.5 lakh square feet. The mall is fully leased out and some of the tenants include - More Mega Store, Lifestyle, INOX Cinemas, Reliance Trends, Max, Mom & Me, Tommy Hilfiger, Levis, Wills Lifestyle, Arrow, U.S. Polo, Puma, Hush Puppies etc. The company is also constructing a commercial project in the name of C21 Business Park in Indore with a total leasable area of 5.0 lakh square feet at a total cost of INR~120 crore to be funded by INR50.0 crore of term loan and the remaining by internal accruals and promoter contribution. In FY2016, the company reported a net profit of INR7.26 crore on a net operating income of INR22.90 crore, as compared to a net profit of INR6.12 crore on a net operating income of INR21.99 crore in the previous year. On a provisional basis, the company reported net revenue of ~INR18.84 crore in 9M FY2017. CHIRAG AGROFINS: ICRA Cuts Rating on INR20cr Fund Based Loan to D ----------------------------------------------------------------- ICRA has downgraded the long-term rating to [ICRA]D from [ICRA]BB- (Stable) for the INR20.00-crore fund-based bank facility of Chirag Agrofins Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Limits 20.00 [ICRA]D; Downgraded from [ICRA]BB- (Stable) Rationale The rating revision takes into account the delay in debt servicing owing to delays in receipt of advances which resulted in cash flow mismatch. The market risk of the project continues to remain high on account of slow sales velocity with only 30% of the area under the project sold till March 2017 and delay in completion of the project by five months with actual completion date being March 31, 2017. As of February 28, 2017, the expected date of completion is August 31, 2017. The rating takes into account the experience of the promoters' group in executing real estate projects in Mumbai. Key rating drivers Credit strengths * Experience of the promoter group in executing real estate projects in Mumbai Credit weaknesses * Delay in debt servicing due to delay in receipt of advances which resulted in cash flow mismatch * High market risk on account of slow sales velocity (booking achieved for only 30% of the total saleable area till March 31, 2017) * Cost and time overrun as 103% of the budgeted construction cost has already been incurred with ~8% of the construction work still pending including plumbing, electrical, flooring, painting and interiors * High competition from other ongoing and completed projects in the vicinity Description of key rating drivers: The company, incorporated in 1991, is into the business of developing real estate projects. Currently, the company has one project in Malad, Mumbai where it is constructing a commercial- cum-residential complex "Bhagat Grandeur" comprising 84 residential flats (2 BHK, 3 BHK and Duplex) and eight commercial shops spread across three wings with a total area of 1,38,285 square feet. The project has obtained commencement certificate for all the slabs (19th slab) from Brihanmumbai Municipal Corporation (BMC). The total budgeted project cost of INR79.28 crore is proposed to be funded by way promoters' contribution (43%), debt (25%) and the remaining by way of advances from customers. ~92% of the promoters' contribution in form of equity and unsecured loans, and 90% of the sanctioned term loan from the bank has been availed till February 28, 2017. Although the company has been able to collect advances to the tune of INR~33.72 crore till March 31, 2017 as against expected INR25.00 crore, high market risk persist on account of slow sales velocity as only ~30% of the total saleable area has been booked till March 31, 2017. Also, there has already been cost overrun which may lead to funding gaps. Going forward, the ability to improve the collection efficiency by ensuring timely inflow of receipts from customers and achieving project completion without any further time or cost-overruns will be critical from the credit perspective to comfortably service the debt repayments which has commenced from the fourth quarter of FY2017. Timely completion of the residual work (~8%) and the ability to scale up bookings for the project would also remain critical in the medium term amidst the risk of bookings cancellation. The company is incorporated in 1991 and is engaged in real estate development. Currently, the company is executing one project in Malad, Mumbai where it is constructing a commercial-cum- residential complex. CAPL is part of Bhagat Group promoted by Mr. Suraj Prakash Bhagat and his family. Bhagat group is engaged in brewing and distilleries along with development of real estate projects. The group has executed twelve projects in Mumbai. CLS INDUSTRIES: CARE Raises Rating on INR14.01cr Loan to 'C' ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of of CLS Industries Private Limited (CIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14.01 CARE C; Stable Facilities Revised from CARE D Detailed Rationale and Key Rating Drivers The revision in the ratings assigned to the bank facilities of CIPL was primarily on account of improvement in debt servicing track record coupled with growth in total operating income in FY16 (refers to the period April 1 to March 31). The ratings continue to draw strength from the experience promoters having diversified business interests. The ratings, however, continue to remain constrained on account of its short track record of operations in a highly competitive industry and moderately leveraged capital structure, weak debt coverage indicators and weak liquidity position. The ability of CIPL to increase its scale of operations coupled with improving its profit margins, capital structure and debt coverage indicators via efficient working capital management are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Strengths Key Rating Weaknesses Dip in profit margins during FY16 The profit margins dipped during FY16 as marked by PBILDT margin which has dipped by 330bps and stood at 8.20% as compared to 11.50% during FY15 on account of higher material cost. Consequently, the PAT margin has also dipped by 13bps and stood at 0.28% during FY16 as compared to 0.41% during FY15 on account of higher interest and finance charges. Moderately leveraged capital structure, weak debt coverage indicators and weak liquidity position The capital structure stood moderately leveraged marked by overall gearing ratio of 1.84x as on March 31, 2016 as compared to 1.48x as on March 31, 2015. Overall gearing deteriorated due to increase in the total debt as against net worth base. Debt coverage indicators as marked by total debt to GCA stood weak on the back of low GCA level compared to total debt position. Further, the liquidity position remained weak marked by the current ratio stood at 1.29x as on March 31, 2016 as compared to 1.09x as on March 31, 2015. The working capital cycle stood at 81 days during FY16 as compared to 92 days during FY15, the improvement was mainly on account of decrease in the inventory and collection period. The working capital utilization remained 99% for the past 12 months ended February, 2017. Presence in a highly competitive and fragmented plastic industry The industry is highly fragmented with a large number of small to medium scale unorganized players. Furthermore, fungible nature of products with no visible differentiators has also resulted in a highly competitive market. High competition in the operating spectrum and proposed small size of operations of the company limits the scope for improvement in margins. However, there is healthy demand of metalized films from the textile industry. Key Rating Strengths Improvement in debt servicing There has been improvement in debt servicing on the back of improved liquidity position with improved realizations from its customers. Growth in Total Operating Income during FY16 During FY16, the TOI has increased by 71.86% and stood at INR42.50 crore as compared to INR24.73 crore during FY15, the improvement was mainly on account of increase in the demand from the customers along with the addition of new customers in its portfolio. Gandhidham-based (Gujarat) CIPL, erstwhile Ave Hotels and Resorts Private limited, was incorporated in the year 2008 as a private limited company by Mr Shyam Sharma (Director) and his two sons Mr Mohit Sharma (Director) and Mr Rohit Sharma (Director). The name of the company was changed to its present form on May 18, 2010. CIPL is engaged in the manufacturing of core veneer with an installed capacity of 18.25 lakh Square Meter per Annum (SMPA), phase veneer with an installed capacity of 54.75 lakh SMPA, marine plywood with an installed capacity of 1.10 lakh per annum, block board with an installed capacity of 3.65 lakh per annum and flush doors with an installed capacity of 1.10 lakh per annum as on March 31, 2016. The commercial production of CIPL was started in February 2011. The promoter group also has business interests in various other fields such as hospitality, leasing, trading etc. through their group concerns namely CLS Enterprise Private Limited, Shiv Petroleum, Shiv Enterprise and C.L. Sharma Resorts Private Limited. During FY16 (A), CIPL reported PAT of INR0.12 crore on a TOI of INR42.50 crore as against TOI of INR24.73 crore and PAT of INR0.10 crore in FY15 (A). Till 9MFY17 (Provisional), CIPL has achieved TOI of INR33.83 crore. COASTAL ENERGY: ICRA Lowers Rating on INR645.50cr Loan to 'D' ------------------------------------------------------------- ICRA has revised the long-term rating to [ICRA]D from [ICRA]BB on INR113.501-crore fund-based limits and the short-term rating to [ICRA]D from [ICRA]A4 on INR645.50-crore non-fund based limits of Coastal Energy Private Limited. ICRA has also revised the long- term/short-term rating on INR335.50-crore unallocated limits of CEPL to [ICRA]D from [ICRA]BB/[ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 113.50 Revised to [ICRA]D from [ICRA]BB(Negative) Non-fund Based 645.50 Revised to [ICRA]D from Facilities [ICRA]A4 Unallocated Limits 335.50 Revised to [ICRA]D from [ICRA]BB(Negative)/[ICRA]A4 Rationale The revision in ratings factors in the delays in servicing debt obligations by the company owing to its stretched liquidity position. High receivables, pending for more than a year, have deteriorated the working capital metrics, resulting in inadequate accruals for the company. Further, improved coal availability from domestic sources has resulted in lower dependence on imported coal in India in FY2016 and FY2017. This has adversely affected the revenues of the company, as imported coal trading accounts for 90%-97% of the revenues of the company. Key rating drivers Credit strengths * Long track record of coal trading operations in the domestic market; Group company, Coal & Oil Company, has significant experience in coal trading in international markets with established relationship with its suppliers Credit challenges * Delays in debt servicing on account of stretched liquidity Position * Decline in revenues owing to lower dependence on imported coal in India over the last two years * Long pending and high receivables from MMTC Limited have adversely impacted the working capital metrics Description of key rating drivers CEPL has a long standing presence in the coal trading operations in the domestic market. The raw material, coal, is supplied by its group company, Coal & Oil Company (C&O) which has significant experience in coal trading business in the international market along with established relationship with its suppliers. Decline in revenues along with deterioration in the working capital metrics has resulted in inadequate cash flows and stretched liquidity position for CEPL. Coal trading has been a significant revenue driver for CEPL, accounting for more than 90% of the total revenues. The revenue of the company has been adversely impacted in the last two years due to an increase in coal production by Coal India Limited (9% in FY2016 on a YoY basis). This has lowered the steam coal imports by 10% in FY2016 on a YoY basis. The imports have further declined in FY2017 on account of subdued growth in thermal power generation. Further, the working capital position of CEPL has weakened on account of long pending receivables to the tune of INR72.00-crore from MMTC Limited. The payments are held by MMTC Limited on account of coal classification ambiguity, which is yet to be resolved. Coastal Energy Private Limited (CEPL) engages in non-coking coal trading and coal handling services. The company is promoted by Mr. Ahmed Abdul Rahman Buhari, along with Mr. Ameer Faizal, with the objective of undertaking coal handling services for exports made by its Dubai-based group company, Coal & Oil Company, in India; later the company began importing coal on stock and sale basis. In the last four-five years, the company has been securing orders through tenders and around 70% of the sales are made through this process. CURE LIFE: CARE Issues D Issuer Not Cooperating Rating ------------------------------------------------------ CARE Ratings has been seeking information from Cure Life Care Private Limited (CLPL) to monitor the rating(s) vide email communications/ letters dated October 3, 2016, November 7, 2016, November 15, 2016, January 18, 2017, February 9, 2017, February 20, 2017, February 28, 2017, March 3, 2017, March 21, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. In line with the extant SEBI guidelines, CARE's ratings on CLPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 17.61 CARE D; Issuer not Facilities cooperating; Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into account ongoing delays in servicing of debt obligations due to weak liquidity position. Establishing a clear track record of timely servicing of debt obligations along with improvement in the liquidity position remain the key rating sensitivities. Detailed description of the key rating drivers At the time of last rating in April 14, 2016, the following were the rating strengths and weaknesses. Key Rating Weaknesses Ongoing delay in debt servicing: CLPL has been irregular in servicing its debt obligation due to its weak liquidity position, owing to its inability to generate operating profits. Cure Life Care Private Limited (CLPL) was incorporated in 2011 to manufacture intra-venous (IV) fluid under form-fill-seal (FFS) technology. The operations commenced from September 2015 onwards, from its manufacturing unit in Tapi, Gujarat. Initially, the company plans to cater to domestic pharmaceutical players and gradually expand its overseas reach. During FY16 (refers to the period April 1 to March 31), the company reported net loss of INR4.41 crore on a TOI of INR5.80 crore. ELKAYPEE SPINNERS: Ind-Ra Migrates BB- Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Elkaypee Spinners Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limit migrated to Non- Cooperating Category; -- INR52.6 mil. Long-term loans migrated to Non-Cooperating Category; and -- INR6.90 mil. Non-fund-based working capital limit migrated to Non-Cooperating Category Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 16, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Elkaypee Spinners has a total installed capacity of 20,800 spindles and produces poly-cotton blended yarn, mainly in 30-40 counts. GAJRA GEARS: CARE Issues D Issuer Not Cooperating Rating -------------------------------------------------------- CARE Ratings has been seeking information from Gajra Gears Private Limited (GGPL) to monitor the rating(s) vide e-mail communications/ letters dated October 3, 2016, February 1, 2017, February 1, 2017 and March 4, 2017 and numerous phone calls. However, despite CARE's repeated requests, GGPL has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines CARE's has reviewed the ratings on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on GGPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING and CARE C/CARE A4; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 1.42 CARE D; ISSUER NOT Facilities-Term COOPERATING; Based on Loan best available information Long term Bank 14.50 CARE C; ISSUER NOT Facilities-fund COOPERATING; Based on Based best available information Short term Bank 25.25 CARE A4; ISSUER NOT Facilities COOPERATING; Based on best available information Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings take into delays in servicing of term loan installments due to weak liquidity position. Detailed description of the key rating drivers At the time of last ratings in February 16, 2016, following were the rating strengths and weaknesses (updated for the information available from MCA website): Key rating strengths Vast experience of the promoters in the auto component industry: Group has been into gears and components manufacturing since 1950. Key rating weaknesses Delay in debt servicing owing to weak liquidity position and working capital-intensive nature of operations: As per the interaction with management and bankers, there have been delays in the term loan servicing due to weak liquidity position. The term loan quarterly installment was delayed by 4 to 5 days since past one year ended December 2015. Furthermore, the working capital limit utilization remained full during the last 12 months ended December 2015. Modest scale of operations, group's presence in auto component industry and low profit margins: GGPL's total income witnessed a marginal decline in total income (by 4.69%) in FY15 on account of slowdown in the end-user industry. Nevertheless, despite the decline in the total income comfort can be drawn from the fact that GGPL due to its long presence in the industry and long association with reputed client base continues to receive repeated orders from them. Though the operations of the company stood modest, comfort can be drawn from group's presence in auto component industry since 1950. The Gajra group is engaged in the manufacturing of transmission and differential gears, cutting tools and tooling's (jigs, fixtures) businesses, including GGPL and other two group companies, namely, Gajra Differential Gears Limited and Elve Corporation. Leveraged capital structure and debt coverage indicators: The capital structure of the entity remained leveraged with high dependence on external borrowings to support the operations which. Furthermore, due to above, the debt coverage indicators remained weak. Incorporated in 1974, Gajra Gears Private Limited (GGPL), is engaged in manufacturing of transmission gears, components and cutting tools at its plant located at Dewas (Madhya Pradesh). The company manufactures transmission gears majorly for tractors and commercial vehicles (mainly LCVs) and has a product library of around 1700 types of gears as on date. At present GGPL has installed capacity of 4,210 MTPA (capacity utilization stood at 76% during FY15) for gear and components and 3,480 nos for per annum for cutting tools (capacity utilization stood at 48% during FY15). GGPL generated around 33% (viz 36% in FY14) of revenue from original Equipment manufacturing segment (OEM) and 31% (viz 32% in FY14) from replacement market segment. GGPL is part of Gajra group formed in 1950 and is engaged in manufacturing of transmission and differential gears, cutting tools and tooling's (jigs, fixtures) businesses. In addition to GGPL the group comprises of Gajra Differential Gears Limited (engaged in manufacturing of crown wheel and pinions, bevel gears, bevel pinions, spider kit assemblies and differential cages and housings and Elve Corporation (engaged in manufacturing of automotive transmission gears such as engine gears, gear box assemblies, and castings. The group has consolidated manufacturing capacity of 7,435 MTPA to make gears and components. During FY16, GGPL posted total income and PAT of INR131.82 crore (vis-a-vis INR 141.14 crore in FY15) and INR0.61 crore (vis-a-vis INR0.93 crore in FY15) respectively. GEMINI CONSOLIDATED: CARE Reaffirms 'D' Rating on INR6.56cr Loan ---------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Gemini Consolidated Projects Private Limited (GCP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.56 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The reaffirmation of the rating assigned to the bank facilities of GCP is constrained by delays in servicing of debt on account on of stretched liquidity position. Establishing a track record of timely servicing of debt obligations with improvement in liquidity position is the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Delay in servicing of debt obligation: As per banker interaction, company has not paid installment for all term loans for the month of February 2017 and in the past one year there were several instances of delays in servicing of debt obligations. Incorporated in 2011 by Mr. Rajiv Sethi, Gemini Consolidated Projects Private Limited (GCP) is engaged in the business of undertaking sub contracts for providing metal fabrication and erection services. Currently, the company majorly caters the power sector; however it has plans to diversify into oil & gas, hydrocarbons, cement and steel sectors. During FY16 (refers to the period from April 1 to March 31, 2016), GCP reported total operating income of INR 1.80 crore as against INR 8.07 crore in FY15 and net loss of INR2.35 crore in FY16 as against net loss of INR1.28 crore in FY15. GULSHAN RAI: Ind-Ra Migrates BB Rating to Non-Cooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Gulshan Rai Jain-II's (GRJ) Long Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR150 mil. Fund-based working capital limit migrated to Non-Cooperating Category; and -- INR240 mil. Non-fund-based working capital limit migrated to Non-Cooperating Category Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 5, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. KEY RATING DRIVERS COMPANY PROFILE Incorporated in 2008, GRJ is engaged in civil, mechanical and electrical construction work in Madhya Pradesh. It mainly executes construction works for Public Works Department, Indore Development Authority, Sagar Municipal Corporation and Bhopal Municipal Corporation. The firm was awarded the status of A Class contractor by Public Works Department Bhopal. H K TIMBERS: CARE Assigns 'D' Rating to INR7.50cr ST Loan --------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of H K Timbers Private Limited (HTPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.00 CARE D Assigned Short-term Bank Facilities 7.50 CARE D Assigned Detailed Rationale and key rating drivers The rating assigned to the bank facilities of H K Timbers Private Limited(HTPL) is constrained on account of on-going delays in its debt servicing due to weak liquidity position. Establishing a clear track record of timely servicing its debt obligations along with improvement in the liquidity position remain the key rating sensitivities. Detailed description of the key rating drivers Key rating weaknesses Ongoing delays in debt servicing As per the written feedback from banker, there have been frequent instances of LC Devolvement in the month of February and March 2017. As per the interaction with the banker, need based temporary overdraft were also sanctioned to HTPL and were regularized later on. Moderate scale of operations and thin profitability Overall operations of HTPL stood moderate marked by total operating income of INR36.25 crore during FY16 (refers to the period April 1 to March 31) and profitability remained thin marked by low PBILDT margin and thin PAT margin. Consequently, gross cash accruals (GCA) also remained low during FY16. Financial risk profile marked by leveraged capital structure, weak debt coverage indicators and weak liquidity position Capital structure of HTPL stood leveraged marked by an overall gearing ratio of 3.01 times as on March 31, 2016 mainly on account of high debt level as compared to net worth base. Debt coverage indicators also stood weak marked by high total debt to GCA ratio and moderately weak interest coverage ratio as on March 31, 2016. The liquidity position of HTPL remained weak marked by current ratio of 1.17 times as on March 31, 2016 and the elongated working capital cycle during FY16. Presence in a highly fragmented industry HTPL operates in a highly fragmented and competitive trading industry wherein large numbers of unorganized players are present, wherein it has a very low bargaining power against its customers as well as its suppliers. This coupled with limited value addition in trading puts pressure on the profitability margins as well. Key rating strengths Experienced Management along with established operation Mr Rajeshbhai Rudani possesses more than decade of experience in the timber industry and looks after overall management and functioning of the company. Other directors, Mr Jagdish Rudani, Mr Bharatbhai Rudani, Mr Dheerajbhai Patel etc. looks after different departments like administration, purchase, production, sales etc. Location advantage resulting in easy access of raw material HTPL is located at Gandhidham (Kutch), which is near to Kandla port, which enjoys good road & rail connectivity leading to better lead-time and facilitates import and delivery of finished products in a timely manner. Gandhidham-based (Gujarat) HTPL was incorporated in 2012 by Rudani and Patel Family and currently managed by Mr Rajeshkumar Rudani and other family members. Mr Rajeshbhai Rudani possesses 10 years of experience in wood and wood products industry. HTPL is engaged into manufacturing of veneer sheets, manufacturing of plyboard, particle board and other plyboard products. H K Lumbers LLP Is the group entities of HTPL, which is engaged in same line of business saw milling and planning of wood. During FY16 (refers to the period April 1 to March 31), HTPL reported PAT of INR0.15 crore as against INR0.18 crore in FY15 on a total operating income (TOI) of INR36.25 crore as against INR40.58 crore in FY15. HPTL has achieved TOI of INR20.53 crore during 11MFY17 (Prov.). LION INSULATION: CARE Issues D Issuer Not Cooperating Rating ------------------------------------------------------------ CARE Ratings has been seeking information from Lion Insulation Private Limited (LIPL), to monitor the rating(s) vide e-mail communications/letters dated October 3, 2016, October 24, 2016; November 17, 2016, December 8, 2016, January 27, 2017, February 3, 2017, February 9, 2017, February 17, 2017, March 10, 2017, March 15, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating of Lion Insulation Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.33 CARE D; Issuer not Facilities cooperating; Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating takes into account delays in debt repayment owing to weak liquidity position. Detailed description of the key rating drivers At the time of last rating in June 8, 2016, the following were the rating strengths and weaknesses. Key Rating Weaknesses Delay in debt servicing: LIPL has been irregular in servicing its debt obligation as the cash credit interest has remained unpaid for 35 days due to weak liquidity position of the company. This was mainly on account of lower revenue generated as the company was not able to receive orders as against envisaged earlier thereby leading to delay in debt servicing Lion Insulation Private Limited (LIPL) was incorporated in 2011. LIPL had set up a manufacturing plant located at Guna, Madhya Pradesh with total capacity of 9000 MTPA for manufacturing thermal and acoustical insulation products like Rockwool mattress, Rockwool slabs and pipe section, which will be used in refineries, chemicals plants and malls where temperature control is required. LIPL has commenced commercial production from December, 2013. LIPL procures its raw material from Dhanbad (Coal mines), Bhilai (steel plants and iron ore plants) and from various local markets. LIPL has been supplying its product to the reputed clients like Lloyd Insulation (India) Limited and National Thermal Power Corporation Limited and is also targeting various government agencies like Bharat Heavy Electricals Limited. During FY16 (refers to the period April 1 to March 31), LIPL reported net loss of INR0.27 crore on a TOI of INR7.39 crore as against a PAT of INR0.01 crore on a TOI of INR6.69 crore during FY15. LOKMANGAL SUGAR: CARE Lowers Rating on INR174.71cr Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Lokmangal Sugar Ethanol and Co-Generation Industries Limited (LSECIL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 174.71 CARE D; Revised from Facilities CARE BB; Detailed Rationale& Key Rating Drivers The revision in the ratings assigned to the bank facilities of LSECIL factor in instances of delay in debt servicing by LSECIL due to its stressed liquidity position. Lokmangal Sugar Ethanol & Cogeneration Industries Limited (LSECL), was incorporated in year 2003 to undertake sugar and sugar related production by Mr. SubhashDeshmukh (Founder Chairman), Mr. Mahesh Deshmukh (Present Chairman) and Mr. Manish Deshmukh (Executive Director) with an installed capacity of 2,500 Tonnes of Cane Crushed Per Day (TCD). In the year 2009-10 LSECL increased its installed crushing capacity to the tune of 6,000 TCD. To mitigate the seasonal and cyclical nature of sugar industry, LSECL has also installed Co-generation unit of 31.5 Mega-watt (MW). The partially integrated sugar factory of LMIL is located in Bhandarkawathe, Tal. South Solapur, Dist. Solapur- 413 221. During FY16 (refers to April 1 ,2015 to March 31,2016), LSECIL reported Profit After Tax (PAT) of Rs (28.77) on total income of INR202.76crore as compared to PAT of INR0.65 crore on total income of INR114.57 crore during FY15. MOHAN BREWERIES: CARE Reaffirms 'D' Rating on INR122.91cr Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Mohan Breweries and Distilleries Limited (MBDL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 122.91 CARE D Reaffirmed Short-term Bank Facilities 1.13 CARE D Reaffirmed Detailed Rationale The ratings assigned to the bank facilities of MBDL continue to take into account the instances of delays in debt servicing by MBDL. Detailed description of the key rating drivers Key Rating Weaknesses Instances of delays in debt servicing: The delays in debt servicing can be attributed to the stressed liquidity position of the company in the absence of returns from investments made in subsidiary & associate companies. Mohan Breweries and Distilleries Ltd (MBDL) was incorporated in 1982 to manufacture and sell Indian Made Foreign Liquor (IMFL) in Tamilnadu. MBDL was set up in collaboration with M/s Mohan Meakins Ltd (MML). MBDL was originally promoted by three individuals namely Mr Nandhagopal, Mr Ethurajan and Mr Udayar. MBDL has installed capacity of 78.63 lakh cases of IMFL in TN, 12.00 lakh cases of IMFL in AP, 105.3 lakh cases of Beer in TN, 62 KLPD distillery unit in TN and 78,000 TPA (tones per annum) installed capacity of glass production. MBDL also has a 35.2 MW wind farm plant. As per the audited results for FY16 (12 months period ended March 31, 2016), MBDL reported a net loss of INR31 crore over a total income of INR262 crore as against a net loss of INR58 crore over a total income of INR472 crore during FY15 (18 month period ended March 31, 2015). NEEL KANTH: Ind-Ra Migrates B+ Rating to Non-Cooperating -------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Neel Kanth Strips Pvt. Ltd.'s (NSPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR70 mil. Fund-based working capital limit migrated to Non- Cooperating Category Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 14, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1996, NSPL manufactures cold rolled strips at its facility in Punjab. The company is promoted by Mr. Krishan Kumar. It sells its product under the brand name Neel Kanth. The company is also engaged in the trading of iron and steel. NV DISTILLERIES: CARE Reaffirms 'D' Rating on INR285.10cr Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of NV Distilleries & Breweries Private Limited (NVDB), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 285.10 CARE D Reaffirmed Short-term Bank Facilities 2.00 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of NVDB continue to factor in the instances of delays in the servicing of the debt obligations on account of strained liquidity position and weak financial profile of the company. The ability of the company to improve its financial discipline by servicing its debt in a timely manner and improve its overall financial risk profile will remain crucial. Detailed description of the key rating drivers Key Rating Weaknesses Delays in servicing of term debt There have been instances of delays in servicing of debt obligations by the company on account of its stretched liquidity position. The working capital cycle of NVDB remains high at 129 days on account of its high inventory days, which stood at 130 days. The company needs to maintain high inventory to ensure continuous availability of raw material for distillery operations which results in the aforementioned stretch in the operating cycle. Although, the promoters have been supporting the company by the required equity funds infusion the company still faces liquidity pressure which further impacts the repayments of the debt obligations. Weak financial risk profile NVDB's operations witnessed a decline in net losses to INR57.13 crore for FY16 (refers to the period April 1 to March 31) as against losses of INR70.43 crore for FY15. The company's operating profitability improved to INR5.79 crore in FY16 as against profits of INR0.15 crore in FY15, however the operational profitability of the company remains inadequate to cover the cost of finance of NVDB. The debt metrics of the company remained moderately similar as reflected by the debt-equity and overall gearing which stood at 1.33x (PY: 1.04x) and 2.22x (PY:1.85x) respectively. Key Rating Strengths Experienced promoters, management & group companies in related business NVDB was incorporated in year 1994 by Mr Ashok Jain (Chairman) and Mr Sameer Goyal (Managing Director). The promoters have been engaged in the related business through other group companies and possess rich experience of nearly three and two decades respectively in the alcoholic beverage industry. The promoters are well supported by an experienced and professional management team. Strategic Location NVDB has set up grain-based distillery in Rajpura (Punjab), which provides locational advantage in terms of availability of raw material (grains) in the state of Punjab and nearby states, viz. Haryana and Uttar Pradesh. Moreover, the company distributes country liquor and IMFL in nearby states which are some of the biggest consumers of liquor in northern region. NV Distilleries and Breweries Private Limited, promoted by Mr Ashok Jain and Mr Sameer Goyal, was incorporated in 1994. The company is operating a grain-based distillation cum bottling plant in Rajpura, Punjab, with an installed capacity of 120 KLPD of Extra Neutral Alcohol (ENA), 48 lakh cases per annum each of Indian made foreign liqour (IMFL) and Country liqour along with a power generation plant of 11MW. The plant was fully commissioned from August, 2011. The company is also operating a Polyethylene terephthalate (PET) bottling plant with an installed capacity of 0.23 crore bottles per annum (180 ml), 3.20 crore bottles per annum (375 ml) and 3.50 crore bottles per annum (750 ml) since April, 2012. NVDB is a part of NV group which consists of group companies namely NV Distilleries Private Limited (Rated- CARE B; reviewed in March 2017), Gemini Distilleries (Goa) Pvt. Ltd, NV International Pvt. Ltd (Rated- CARE C; reviewed in March 2017), NV Distilleries & Breweries (North East) Pvt. Ltd. Status of non- cooperation with previous CRA: CRISIL has suspended its ratings in absence of adequate information required to review the ratings on account of non-cooperation by NVDPL, vide press release dated August 5, 2014. QUADROS AUTOMARK: CARE Issues D Issuer Not Cooperating Rating ------------------------------------------------------------- CARE Ratings has been seeking information from Quadros Automark Private Limited (QAPL) to monitor the rating vide e-mail communications/letters dated September 13, 2016, March 14, 2017, and March 18, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on QAPL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 10.68 CARE D; Issuer not Facilities Cooperating; Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings take into account the ongoing delays in interest servicing on the bank facilities on account of stressed liquidity. Detailed description of the key rating drivers At the time of last rating on April 26, 2016 the following were the rating strengths and weaknesses: Key Rating Weaknesses Ongoing delays in debt servicing: Due to stressed liquidity positon, there are on-going delays in servicing of bank debt obligations with respect to interest payments on term loan facility and cash credit limits. Quadros Auto Mark Private Limited (QAPL) incorporated in the year 2012 and is authorized dealer for Renault India Private Limited (Renault) and covers the south Goa region. QAPL is promoted by Mr Evencio Quadros and Mr Ramchandra Shirodlar and are fi rst generation entrepreneurs. QAPL being an authorised dealer for Renault, also provides its spares and services by virtue of being a '3-S' dealer. However, QAPL has surrendered the dealership of Renault India Private Limited (Renault) and acquired the dealership of Hyundai Motors. S.M. CONSTRUCTIONS: CARE Reaffirms 'C' Rating on INR6.39cr Loan --------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of S.M. Constructions (SMC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.39 CARE C Reaffirmed Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of S.M. Constructions (SMC) continues to remain constrained due to stretched liquidity position evident through irregularities in debt servicing of bank facilities (not rated by CARE), weak financial risk profile marked by deteriorating capital structure and debt coverage indicators and elongating operating cycle, exposure to highly regulated mining industry and small scale of operations. The rating is also constrained due to geographical and customer concentration risk, limited scope for growth in operations and proprietorship nature of the entity. The rating, however, continues to factor in the long track record of the business operations, considerable experience of the promoter and long-term association with the mine owner. The ability to the entity to increase the scale operations coupled with improvement in profitability and capital structure in light of stringent governmental regulations and export bans imposed along with improvement in liquidity position and reduction in exposure in group entities are the key rating sensitivities. Detailed description of the key rating drivers Key Rating Strengths Long track record of operations with experienced promoter: The firm has been into existence since 1994, with the business of iron ore mining running for more than nine years. Although, SMC is headed by Mrs Shamshun Shaikh, the dayto- day operations are looked after by her husband; Mr Muktar Shaikh, who has been in the ore trading business since the past 18 years and is well- versed with the iron ore extraction and export mechanism. In addition, the firm has employed professionals in the fields of finance and marketing to ensure smooth functioning of the business. Long-term contract with mine owner: SMC repeatedly enters into a contract for 2 to 3 years for the past 11 years with Nadeem Minerals (NM) with the objective of raising iron ore at Sandur, Hospet, Karnataka, having mining area of 53.20 hectares as approved by the Government of India in October 2016. There exists no adherence to any price escalation clause by the parties, but in case of any price fluctuations, the prices are mutually revised by them as and when required. Key Rating Weaknesses Customer and geographical concentration risk: SMC undertakes mine raising operations for only NM (Sandur Hospet mine, Karnataka) being the sole customer of SMC, the firm is susceptible to customer concentration risk. The contract received by SMC is further sub-contracted to its group company; Muktar Minerals Private Limited (MMPL). With heavy reliance of SMC on NM and MMPL, its growth is directly linked to the operational efficiencies of both companies, primarily the ability of NM to sell the ore inventory. Any impact on operational performance of NM and MMPL can have a direct impact on the financial risk profile of SMC. Highly regulated industry: SMC operates in the mining industry which is subject to various regulatory approvals. SMC bids for the mining contracts from Government as well as private players. The necessary approvals relating to mining activities like clearances from Ministry of Environment and Forest (MOEF) and Pollution Control Board are required to commence the mining operations. Furthermore, the firm is also susceptible to any mining ban imposed by the Government of India. This is reflected in decline in income from operations in FY16 (refers to the period April 1 to March 31) due to the mining ban on iron ore. Goa-based S.M. Constructions (SMC) was established as a proprietorship concern in the year 1994 by Mrs Shamshun Shaikh, with the assistance of her husband Mr Muktar Shaikh, for industrial construction and real estate development in the state of Goa. The firm belongs to the Shaikh Muktar Group (SMG) of companies in Goa, which has interests in mining, construction, engineering, logistics, hospitality (new venture), shipping and automobiles. The flagship entity of the group is Muktar Minerals Pvt Ltd, which is also involved in mineral exploration, mining, processing and exporting in Goa. In 2006, the business of SMC of real estate and construction was transferred to Muktar Infrastructure Pvt. Ltd. and SMC has primarily undertaken iron ore extraction services business since then. Muktar Automobiles Pvt Ltd (MAPL; rated 'CARE B/CARE A4' February 29, 2016) is also a group company of SMC engaged in the exclusive trading and servicing of vehicles of Mahindra & Mahindra Limited (MML). SMC has a long-standing contract with Nadeem Minerals which is a mine owner, for raising iron ore in a mine (Sandur-Hospet mine) in Karnataka. SMC has been extracting iron ore for NM since 2006 which it further sub-contracts to MMPL by SMC. Finally, e-auction of the iron ore is done by Nadeem Minerals in its name, while SMC has no role to play in the sale of iron ore. The agreements are fixed price in nature and the price of iron ore is pre-determined through mutual consent. S.N.N TEXTILES: ICRA Reaffirms B+ Rating on INR10cr Loan -------------------------------------------------------- ICRA Ratings has reaffirmed the long term rating assigned to the INR10.00 crore term loans and the INR5.00 crore fund based facilities of S.N.N Textiles Private Limited at [ICRA]B+. The outlook on the long term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term: Term Loan 10.00 [ICRA]B+(Stable) Reaffirmed Long-term: Fund based facilities 5.00 [ICRA]B+(Stable) Reaffirmed The rating action is based on the best available information. As part of its process and in accordance with its rating agreement with SNNTPL. ICRA had sent repeated reminders to the company for information and payment of surveillance fee that became overdue; however despite multiple requests; the company's management has remained non-cooperative. ICRA's Rating Committee has taken a rating view based on best available information. In line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the company's rating is now denoted as: "[ICRA] B+(Stable) ISSUER NOT COOPERATING". The lenders, investors and other market participants may exercise appropriate caution while using this rating, given that it is based on limited or no updated information on the company's performance since the time it was last rated. STPL, incorporated in 2013 at Coimbatore, is engaged in the manufacturing and selling of cotton yarn. The company manufactures carded cotton yarn in the relatively coarser count range of 30s to 40s. Its manufacturing facility is located in Coimbatore (Tamil Nadu) and operates with a total installed capacity of 14,400 spindles. The company also has installed wind turbines with a generation capacity of 600 kW. SAARTH ENTERPRISES: CARE Lowers Rating on INR8cr Loan to 'D' ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Saarth Enterprises Private Limited (Saarth), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8 CARE D; ISSUER NOT Facilities COOPERATING; Revised from CARE BB- based on best available information Detailed Rationale & Key Rating Drivers CARE has been seeking information from Saarth Enterprises Private Limited (Saarth), to monitor the rating vide e-mail communications/ letters dated October 7, 2016, January 5, 2017, January 18, 2017, February 14, 2017, March 29, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines CARE has reviewed the rating on the basis of publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on Saarth's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The revision in rating of Saarth is primarily on account of delay in servicing of debt obligations. Detailed description of the key rating drivers Key rating weakness Delay in debt servicing As per interaction with banker, there has been delay in debt servicing and account has been classified as NPA. Incorporated in June 2012, Saarth Enterprises Private Limited (Saarth) took over the business of M/s. Hitesh Trading Co. (established in the year 1995) which was engaged in the trading of construction materials in Maharashtra. The company trades in various construction materials viz. clay (comprising 90% of the total income of FY15 (refers to the period April 01 to March 31)) and ancillary materials such as Geo Textiles & Geo Synthetics used for road construction. The company runs its operations from Powai, Mumbai. SARVESH CARS: ICRA Assigns B+ Rating to INR8.90cr LT Loan --------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B+ outstanding on the INR3.57 crore term loan facilities, INR7.50 crore E-DFS and INR1.40 crore cash credit facilities of Sarvesh Cars and Motors Private Limited. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term: Fund based limits (Note) 8.90 [ICRA]B+ (Stable) assigned Long term: Term loan 3.57 [ICRA]B+ (Stable) assigned Rationale The assigned rating factors in the track record of the promoters in the dealership business. The rating also positively factors in the established position as a ford dealer in Tamilnadu and recent showroom addition in Pondicherry. However, the ratings are constrained by financial profile of the company characterized by the leveraged capital structure and moderate accruals resulting from thin margins. Debt funded capital expenditure plans in the short term for setting up a new dealership would further impact the stretched debt indicators negatively. Going forward, ability of the company to improve topline and improve its margins by focusing on service income and spare and accessories sales would be crucial in improving debt profile of the company. Key rating drivers Credit Strengths * Established market position of SCMPL being an authorized dealer of Ford India Private Limited for the regions of Vellore, Kanchipuram, Tiruvanamalai in Tamilnadu and Pondicherry * Significant increase in operating income in FY2017aided by new showroom in Pondicherry Credit Weakness * Intense competition among dealers of various automobile companies and the commission structure decided by the principal, leading to thin margins * Financial profile characterized by high gearing due to debt funded capital expenditure * Exposure to cyclical nature of the Indian passenger vehicle industry Description of key rating drivers highlighted above: Sarvesh Cars and Motors Private Limited is the authorized dealer for sale of passenger vehicles of Ford India Private Limited since 2010. It is involved in the sale of passenger vehicles, sale of spare parts and derives income from service. It is the exclusive dealer of Ford passenger vehicles in the regions of Vellore, Kanchipuram, Tiruvanamalai and Pondicherry. The company derives around 80% from sale of new vehicles, 15% from sale of spares and ~5% from service income. The operating income of the company had registered a significant growth in FY17 primarily on account of the new showroom in Pondicherry. However, the capital structure remained weak on account of increase in working capital borrowing and debt funded capital expenditure for funding the new showroom. The dealership business has most of the borrowings related to funding of working capital as it requires considerable inventory which makes the capital structure of the company aggressive. High debt level, coupled with low profitability has kept the coverage indicators weak. Going forward, SCMPL's ability to increase volume and improve its debt protection metrics amidst thin margin would be the key rating sensitivities. Incorporated in 2009 by Mr. B. Gnanaprakash and his wife Ms. Ashwini, Sarvesh Cars and Motors Private Limited is located in Vellore (Tamil Nadu) and is an authorized dealer for Ford India Private Limited, for Vellore, Kanchipuram, Tiruvannamalai districts of Tamil Nadu and Pondicherry. The company sells models of Ford - compact car Figo, sedan Fiesta (Classic and New Fiesta), Utility vehicle Endeavour and the compact sports utility vehicle Ecosport. SCMPL also sells spare parts, accessories and provides service to passenger cars in Vellore. The company has a full-fledged 3S (Sales, Service, and Spares) showroom in Vellore, started in February 2010, and in 2011, a touch point with one car display, was inaugurated in Kanchipuram. SEA BLUE: CARE Issues D Issuer Not Cooperating Rating ----------------------------------------------------- CARE Ratings has been seeking information from Sea Blue Shipyard Limited to monitor the rating(s) vide e-mail communications/ letters dated February 6, 2017,February 21, 2017, March 11, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requiste information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on Sea Blue Shipyard Limited's bank facilities and will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 11.57 CARE D; Issuer not Facilities Cooperating Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers Ongoing delays in servicing of debt obligations There are ongoing delays in the debt servicing of working capital and term loan facilities. Bank guarantees issued by SBS were also invoked. The delay in debt servicing is a result of the delay in collection of receivables. Normally a small ship building process takes around 18 months to complete and the payment is received stage wise from clients. For manufacturing and sale of products, SBS follow stage wise payment for projects with long tenure. Once the bill is raised its takes an average of 60 days tenure for collection from government entity and 30 days tenure from private entity. At times, the collection goes beyond 60 days from government entity due to inspection and delay in passage of bills. Due to long tenure and delay in payment of bills raised has resulted in elongation of average collection period which was 163 days in FY15 (refers to the period April 1 to March 31). As on March 31, 2015, out of the total debtors, 24% were due for more than 180 days. SBS follows Just-in-time (JIT) mechanism for ship building and manufacturing of goods, however the company is required to hold minimum set of inventory required for ship repair and other services, where the average inventory period stood at 102 days in FY15. SBS incorporated on December 08, 2003, is promoted by Mr. OC John and is engaged in ship building and ship repairs activities. Initially the company was established under the name of Sea Blue Marine Engineering (Pvt.) Ltd. and later converted into a Public Limited Company in 2009, with its new name SBS. SBS operates from a yard located at Vypin (Kerala) and a branch office in Goa. It undertakes contractual work of public sector as well as private sector agencies operating in the Western region. SBS is registered with Indian Coast Guard for undertaking repairs of their vessels. SBS has three licensed slipways, capable of hauling up vessels up to 3000 deadweight tonnage (DWT). SBS has berthing facilities for ships up to 115m. It provides afloat repairs of medium sized vessels and also provides shelter to vessels during off season especially to those vessels plying between Kochi and Lakshadweep Islands. The total length of the wharf is 115m with a draft of above 6m. SHIVA STRUCTURES: Ind-Ra Assigns BB Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Shiva Structures Private Limited (SSPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR75 mil. Fund-based working capital limit assigned with 'IND BB/Stable' rating; -- INR15.09 mil. Term loans assigned with IND BB/Stable rating; and -- INR180 mil. Non-fund based working capital limits assigned with IND A4+ rating KEY RATING DRIVERS The ratings reflect SSPL's moderate credit metrics and moderate scale of operations. In FY16, EBITDA interest coverage (operating EBITDA/gross interest expense) was 2.2x (FY15: 1.6x) while net financial leverage (total Ind-Ra adjusted net debt/operating EBITDA) was 1.3x (2.4x). Revenue increased to INR361 million in FY16 from INR325 million in FY15, driven by a healthy order book. Provisional FY17 financials indicate revenue of INR572 million, EBITDA interest coverage of 2.9x and net financial leverage stood of 0.5x. The ratings also reflect SSPL's moderate liquidity position, indicated by 95.44% of the average utilization of the fund-based working capital limits over the 12 months ended April 2017. However, the ratings are supported its proprietors' experience of more than two decades in the construction industry. RATING SENSITIVITIES Positive: An increase in the revenue along with maintenance of comfortable credit metrics could result in a positive rating action. Negative: Substantial deterioration in the credit metrics could result in a negative rating action. COMPANY PROFILE Aurangabad-based SSPL was reconstituted as a private limited company in 2008. It is engaged in the activity of civil works such as irrigation projects, dams, canals, minor irrigation tank, site excavation, site development, pipeline project, roads, building constructions, industrial sheds, tunnel, barrages, roads and other allied works. The company is registered as a Class 1A contractor with the state's Public Work Department and an approved contractor for various government and civil bodies. The company is managed by directors Mr. Madhukar D. Deshmukh and Mrs. Archana M. Deshmukh. SHRI BALAJI: CARE Issues D Issuer Not Cooperating Rating -------------------------------------------------------- CARE Ratings has been seeking information from Shri Balaji Sahakari Soot Girni Limited (SBSSG) to monitor the ratings vide e-mail communications/letters dated September 9, 2016, October 26, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on SBSSG's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 7.18 CARE D; Issuer not Facilities cooperating; Based on best available information Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The ratings take into account the ongoing delays in debt servicing of its bank facilities. Detailed description of the key rating drivers At the time of last rating on April 13, 2016 the following were the rating strengths and weaknesses: Key Rating Weaknesses Ongoing delays in debt servicing: The society was unable to meet its principal repayment on account of stressed liquidity conditions resulting from lower profitability. Furthermore, there were continuous overdrawals in cash credit account. The society has been reporting deficit since commencement of business operations. Moreover, the funds infused by the trustees are invested in the fixed assets for setting up the unit. Furthermore, the funds have also been blocked in the inventory as the society has been maintaining high inventory on account of seasonal nature of business operations leading to stretch liquidity position of the society. Analytical approach: Standalone SBSSG was established as a co-operative society on January 21, 1991, but commenced commercial operation from May 25, 2011 onwards. SBSSG is engaged in cotton spinning through open end spinning method with an installed capacity of 6,624 spindles for manufacturing of cotton yarn with end-user industries being power loom companies situated in and around the area of Washim, Maharashtra. In FY14 (refers to the period of April 1 to March 31), SBSSG earned net deficit of INR0.60 crore on a total operating income of INR12.01 crore against a net deficit of INR4.16 crore on a total operating income of INR4.23 crore in FY13. SKS POWER: CARE Reaffirms 'D' Rating on INR5,456.96cr Loan ---------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of SKS Power Generation (Chhattisgarh) Limited (SPGCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5456.96 CARE D Reaffirmed Short-term Bank Facilities 504.00 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings of SPGCL continue to reflect the on-going delays in servicing of debt obligations by the company on account of delays in project completion along with cost over-run. SPGCL promoted by the SKS group is a 51% subsidiary of SKS Ispat and Power Limited (SIPL). SPGCL is setting up a thermal power plant with capacity of 1,200 MW (4x300 MW) in the State of Chhattisgarh based on domestic coal in two phases of 600 MW each. SPGCL is currently executing Phase I (600 MW) of the project. Phase II of the project has currently been delayed because of non-availability of full form (PPA) and pending tie-up of equity funding. SRI RANGANATHA: CARE Lowers Rating on INR7.50cr LT Loan to D ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Sri Ranganatha Swamy Jewellary Works, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.50 CARE D; Issuer not Facilities cooperating; Revised from CARE B on the basis of best available information CARE has been seeking information from Sri Ranganatha Swamy Jewellary Works to monitor the ratings vide e-mail communications dated December 9, 2016, December 23, 2016, January 4, 2017, January 9, 2017, February 20, 2017 and February 21, 2017 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the rating. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on Sri Ranganatha Swamy Jewellary Works bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The rating has been revised on the back of ongoing delay in its debt servicing. Detailed description of the key rating drivers Delay in debt servicing The rating has been revised on the back of ongoing delays in its debt servicing due to weak liquidity position. Sri Ranganatha Swamy Jewellary (SRJ) is a proprietary concern started by Mr.K. Rangachari, in Sep' 1989. The major operation of the firm is in the business of wholesale trading and retailing of gold and silver ornaments and also has facility of designing and making gold and silver ornaments as per the customer request. The showroom is situated at Challakere, Karnataka. Mr. Ranagachari has an experience of around 25 years in the industry, he is also the managing partner in a partnership firm by name "Sri Ranganatha Gold and silver" which is also involved in the similar line of business. The firm has a total of 10 skilled employees, 8 unskilled employees and 8 contract labours working for both SRJ and "Sri Ranganatha Gold and silver". The other associate concerns of the firm are; "Ranganatha Gold Palace" which commenced its operations from May 2015 and "Sri Ranganatha Theater Pvt Ltd" operating a theater and turnover was around INR 40 lakh in FY15. VAIDEHI TRENDZ: Ind-Ra Assigns BB- Long-Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Vaidehi Trendz Private Limited (VTPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is: -- INR75 mil. Fund-based limits assigned with 'IND BB-/Stable' rating KEY RATING DRIVERS The ratings reflect VTPL's small scale of operations and moderate credit metrics. According to provisional financials for FY17, revenue was INR480 million (FY16: INR360 million; FY15: INR443 million), gross interest coverage (EBITDA/gross interest) was 1.6x (1.3x; 1.7x), net financial leverage (net debt/EBITDA) was 5.9x (8.5x; 6.7x) and operating EBITDA margin was 3.5% (3.2%; 2.3%). The increase in revenue was due to the execution of a large number of work orders. Meanwhile, the marginal improvement in EBITDA margin was due to fluctuations in costs of raw materials. The ratings also reflect VTPL's tight liquidity profile, indicated by almost 100% average working capital limit utilization during the 12 months ended March 2017. The ratings, however, are supported by the owner's experience of more than a decade in the textile industry. RATING SENSITIVITIES Negative: Any deterioration in profitability leading to deterioration in credit metrics may lead to a negative rating action. Positive: An improvement in the revenue along with an improvement of its credit profile will lead to a positive rating action. COMPANY PROFILE VTPL is a private limited company formed in 1989. The company started its commercial operation in 2005. The company executes embroidery work in polyester fibres and is based out of Surat, Gujarat. VRIDHI IRON: Ind-Ra Migrates B+ Rating to Non-Cooperating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vridhi Iron and Steels' Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR10.8 mil. Long-term loans migrated to Non-Cooperating Category; and -- INR43.0 mil. Fund-based working capital limit migrated to Non-Cooperating Category Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 1, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Vridhi Iron and Steels was incorporated in 2008 as a partnership firm. The registered office of the company is located in Guwahati, Assam. The company manufactures structural steel products. The entity started commercial operation in June 2012. ========= J A P A N ========= MORITOMO GAKUEN: Files for Bankruptcy Protection ------------------------------------------------ The Japan Times reports that the troubled Osaka school operator at the center of national political scrutiny applied for protection from creditors on April 21 via court-mediated rehabilitation. The Japan Times relates that the links alleged between nationalism-espousing school firm Moritomo Gakuen and Prime Minister Shinzo Abe and his wife, Akie, who promoted it, have been extensively investigated in recent months since it acquired a piece of state-owned land last year at a dramatic discount. According to the report, the school will try to rebuild its finances after incurring large debts connected with the elementary school, which it had hoped to open on the new but apparently polluted piece of land this month in Toyonaka, Osaka Prefecture. The school is standing empty after prefectural authorities in March refused to grant it accreditation, the report says. The report relates that the construction company contracted to build the school said Moritomo still owes it more than JPY1.6 billion. Construction costs had been set at around JPY1.5 billion but spiraled to around JPY2 billion, according to the company. The Osaka District Court, which is handling the bankruptcy filing, has already given provisional approval for the land and buildings of a Moritomo Gakuen-run kindergarten and day care center, and also the home of its president, Yasunori Kagoike, to be seized to pay off the construction company, the report says. TOSHIBA CORP: Group Companies Pulling Money out of Parent --------------------------------------------------------- Nikkei Asian Review reports that major Toshiba group companies are parking significantly less money with the troubled conglomerate, seeking to minimize potential risks and appease wary shareholders. Like many other big Japanese businesses, Toshiba manages money deposited by subsidiaries and affiliates. Such arrangements allow for more efficient use of cash within the group while giving the parent a less-costly source of money than bank loans, the report notes. But several Toshiba subsidiaries have taken back their cash recently. According to the report, Toshiba Plant Systems & Services cut its deposits to zero by the end of fiscal 2016 from JPY85.5 billion ($753 million) at the end of the fiscal year through March 2016, citing the "current situation." Though cash on hand surged from JPY6.4 billion to JPY88.2 billion, the company said it has no plans to invest or otherwise spend this money. Chipmaking equipment manufacturer NuFlare Technology also zeroed out its deposits with Toshiba, which stood at JPY31 billion at the end of fiscal 2015, says Nikkei. Investors had complained that the amount parked at the parent was high compared with NuFlare's sales, which totaled JPY47.7 billion for fiscal 2016. Toshiba Tec, a top maker of point-of-sale systems, slashed its deposits to just over JPY400 million at the end of fiscal 2015, then to zero last fiscal year, planning to use the money itself. Social infrastructure company Nishishiba Electric's deposits plunged 96% to just under JPY50 million, according to Nikkei. Nikkei relates that group deposit agreements have come under fire in recent years from shareholders arguing that subsidiaries' money should be put toward their own growth. In Toshiba's case, the parent's dire financial straits seem to be a factor as well. Nikkei says Toshiba Plant Systems withdrew its funds after legal action by major shareholder Oasis Management (Hong Kong). The investment fund took a dim view of the company effectively offering low-interest loans to a parent with such a poor credit rating. Toshiba released unaudited fiscal 2016 earnings on May 15 showing a JPY950 billion net loss and liabilities exceeding assets by JPY540 billion, Nikkei notes. The company seeks to return its net worth to positive territory by selling its memory chip unit, but American partner Western Digital's move to block the sale through arbitration has left this plan up in the air, adds Nikkei. About Toshiba 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 Dec. 30, 2016, Moody's Japan K.K. downgraded Toshiba Corporation's corporate family rating (CFR) and senior unsecured rating to 'Caa1' from 'B3'. Moody's has also downgraded Toshiba's subordinated debt rating to 'Ca' from 'Caa3', and affirmed its commercial paper rating of Not Prime. At the same time, Moody's has placed Toshiba's 'Caa1' CFR and long-term senior unsecured bond rating, as well as its 'Ca' subordinated debt rating under review for further downgrade. The TCR-AP reported on March 21, 2017, that S&P Global Ratings has lowered its long-term corporate credit rating on Japan-based capital goods and diversified electronics company Toshiba Corp. two notches to 'CCC-' from 'CCC+' and lowered the senior unsecured debt rating three notches to 'CCC-' from 'B-'. Both ratings remain on CreditWatch with negative implications. Also, S&P is keeping its 'C' short-term corporate credit and commercial paper program ratings on the company on CreditWatch negative. The long- and short-term ratings on Toshiba have remained on CreditWatch with negative implications since December 2016, when S&P also lowered the long-term ratings because of the likelihood that the company might recognize massive losses in its U.S. nuclear power business; S&P kept them on CreditWatch negative when it lowered the long- and short-term ratings in January 2017. ========= M A C A U ========= LINIU TECHNOLOGY: UHY LLP Raises Going Concern Doubt ---------------------------------------------------- LiNiu Technology Group filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F, disclosing a net loss of $214.98 million on $32.37 million of total revenues for the year ended December 31, 2016, compared to a net income of $5.12 million on $105 million of total revenues for the year ended December 31, 2015. The audit report of UHY LLP states that the Company has experienced a continued decrease in revenue, negative working capital, and default on the credit agreements during 2016 and has relied on loans from shareholders to fund their operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at December 31, 2016, showed total assets of $77.48 million, total liabilities of $75.34 million, all current, and a stockholders' equity of $2.13 million. A full-text copy of the Company's Form 20-F is available at: http://bit.ly/2qGnYGv Macau-based LiNiu Technology Group is engaged in offering agricultural products and services. The Company offers LiNiu Network platform, which is electronic business to consumer (B2C), customer to customer (C2C) and online to offline (O2O) trading platform focused on the Chinese agricultural industry, at its Website www.liniuyang.com and through its application on the Android mobile operating system. The Company offers its products in a range of categories which include agricultural resource, seeding agricultural products, agricultural and sideline products, wisdom agriculture, tourism, financial, Chinese herbal medicine and handicrafts. It also conducts VIP gaming promotion business at approximately five VIP gaming rooms located in over five casinos in Macau and approximately two casinos in Australia. =============== M A L D I V E S =============== MALDIVES: Fitch Assigns First-Time 'B+' Long-Term IDR ----------------------------------------------------- Fitch Ratings has assigned The Republic of Maldives first-time Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'. The Outlook on the ratings is Stable. The Country Ceiling is assigned at 'BB-' and the Short-Term Foreign- and Local-Currency IDRs at 'B'. KEY RATING DRIVERS The ratings balance the Maldives' advanced economic development, strong GDP growth and high government revenue generated by a prosperous tourism sector against a high government debt burden and low foreign-reserve buffers. The country's high dependence on a single sector causes volatility in economic metrics, such as GDP growth, and makes the country vulnerable to external shocks and domestic developments that undermine the Maldives' attractiveness as a tourist destination - for example, changes in perceptions of safety. The Maldives' success as a prime luxury tourist destination has generated relatively high GDP per capita of USD9,145 ('B' category median is USD3,362). Real GDP growth has proved volatile in the last few years, illustrating the dependency of the tourism sector on global growth. Fitch expects real GDP growth to pick up to 4.0% in 2017 and 4.5% in 2018, from 3.9% in 2016, due to continued tourism demand and construction. New resorts are being built and the government has initiated large infrastructure projects. These include capacity expansion of the main airport; the construction of a bridge linking the capital to population centres; an advanced medical centre; and new housing. Some of these projects seem to have the potential to facilitate a surge in tourism in a few years, but execution of so many large projects at the same time has posed serious fiscal challenges. The government laid out remedial measures to avoid a blow-out of government debt in its latest budget announced at end-2016. It indicated its intention to significantly increase the amount of revenue raised and to cut current expenditure to make fiscal space for the large construction projects underway. Fitch believes the official target of reducing the fiscal deficit from the government's estimate of 7.4% of GDP in 2016 to 0.5% in 2017 seems highly ambitious, but the remedial action should significantly lower the deficit to 4.3% of GDP in 2017 and 3.5% in 2018. On the basis of the government's announced measures and Fitch's nominal GDP forecast, the agency expects general government debt/GDP to fall gradually from 72.3% in 2017 to 70.0% in 2020. At the same time, risks to debt sustainability remain and the stabilisation of debt, assumed by Fitch, depends on the government's willingness and ability to follow through on its fiscal consolidation plan. The government's ability and propensity to tax the luxury tourism sector has led to a revenue ratio of 34.9% of GDP, significantly higher than the 'B' median of 24.7%. There is still potential to further increase the amount of revenue raised from tourism if needed, given the likelihood of rather inelastic demand in the luxury segment to moderate price rises. Government revenue forms an important link between tourism and other sectors of the economy. The level of gross foreign reserves is very low, registering USD501.2 million at end-March 2017 (1.6 months of current account payments), especially considering the Maldives Monetary Authority's peg of the Maldivian rufiyaa to the US dollar. Useable reserves, defined as gross reserves minus short-term foreign liabilities, are even lower, at USD224.7 million. The risks to external balances from the low reserve base are mitigated by the persistent current account deficits being fully financed by foreign direct investment and by the tourism sector both earning and spending in US dollars. This implies that tourism-related outflows should also fall in the case of a sudden drop in tourism-related inflows. In addition, the country has managed with similarly low levels of foreign-exchange reserves for a number of years without experiencing an exchange-rate shock. However, foreign-debt financing of the large construction projects will increase the importance of foreign-reserve buffers in the years ahead. The high dependence on tourism implies the economy is vulnerable to sudden events that harm the perception of Maldives as a safe and reliable tourist destination. Such potential events include the emergence of political instability in an already-polarised environment or security issues. Fitch considers that the sovereign's exposure to banking-sector risk is relatively low. Private credit represents only 39% of GDP and the banking system is well-capitalised, with a reported Tier 1/risk-weighted asset ratio of 34% in 2016. Non-performing loans were high, at 10.7% of total loans, but are on a declining trend from a peak of 21.0% in 2012. SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns the Maldives a score equivalent to a rating of 'BB-' on the Long-Term Foreign-Currency IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final Long-Term Foreign-Currency IDR by applying its QO, relative to rated peers, as follows: - External Finances: -1 notch to reflect exposure to low reserve coverage in combination with high dependence on one sector - tourism - and an expected accumulation of external debt in the next few years from the execution of large infrastructure projects. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch criterias that are not fully quantifiable and/or not fully reflected in the SRM. RATING SENSITIVITIES The Stable Outlook reflects Fitch's assessment that upside and downside risks to the ratings are balanced. However, the main factors that could lead to negative rating action are: - A significant rise in general government debt; for instance, caused by a failure of the government's fiscal consolidation strategy. - Balance-of-payment pressures; for instance, a fall in foreign- exchange reserves or a higher-than-Fitch-expected increase in external debt. The main factors that could lead to positive rating action are: - Policy initiatives that lower general government debt to levels closer to the rating category median. - Strengthening of external buffers through accumulation of foreign-exchange reserves. - Diversification of the economy by developing sectors other than tourism; for example, facilitated by implementing structural reforms that enhance the business environment. KEY ASSUMPTIONS - The world economy performs broadly in line with Fitch's latest Global Economic Outlook. - Tourism in the Maldives is not severely affected by a sudden outburst of political violence or security issues. ===================== P H I L I P P I N E S ===================== CHONTA INDUSTRIAL: BIR Files PHP61.82MM Tax Evasion Case -------------------------------------------------------- Virgil Lopez at GMA News reports that the Bureau of Internal Revenue (BIR) on May 16 filed with the Department of Justice (DOJ) tax evasion complaints against three taxpayers in Caloocan City who owe the government PHP121.47 million in unpaid taxes. In the first complaint, the BIR accused Marilyn San Luis, sole proprietor of Aerostar Industrial Supply, of violating Section 255 of the Tax Code for alleged failure to pay tax deficiencies amounting to PHP3.62 million for 2011, GMA News relates. The report says the BIR is also running after PHP61.82 million in unpaid taxes for 2012 from Chonta Industrial Packaging, Inc. (CIPI) and its assistant managing director Arlyn Mazo. CIPI is engaged in the manufacture of goods. Its major clients include Hilmarc's Construction Corp.; Rockwell Land Corp.; DMConsunji, Inc.; and Eco Resort Development Corp. The third complaint, meanwhile, is against Well-Pack Container Corporation (WCP) and its president, Manuel Jamera, the report discloses. WCP, a company engaged in the manufacture of containers and boxes of papers, was assessed with a tax liability of PHP56.03 million from January 1, 2015 up to June 30, 2015, according to GMA News. The report adds that he BIR said the respondents were served notices of the tax liabilities but failed to either protest or to submit additional documents to refute said assessments, thus making them "final, executory, and demandable." ==================== S O U T H K O R E A ==================== DAEWOO SHIPBUILDING: Set to Receive New Loan Later This Month ------------------------------------------------------------- Yonhap News Agency reports that Daewoo Shipbuilding & Marine Engineering Co. is set to receive KRW500 billion (US$448 million) in fresh loans from its creditors later this month, industry sources said on May 17. The financial aid, part of the second bailout fund drawn up by its creditors, will be spent on payments to subcontractors and to employees, they said, Yonhap relays. In March, the creditors led by the KDB announced a fresh rescue package for the ailing shipbuilder that has been suffering from severe liquidity problems over heavy losses in its offshore projects, the report says. Under the rescue package, Daewoo Shipbuilding receives new loans worth KRW2.9 trillion, with lenders and bondholders swapping KRW2.9 trillion of debt for new shares in the shipbuilder. Bondholders will also give a three-year grace period for the repayment of the remaining debt. In return, Daewoo Shipbuilding has pledged to implement self- rescue measures, worth KRW5.3 trillion, through 2018. It has already sold off noncore assets and cut its workforce, through which it has raised or saved KRW1.8 trillion, the report says. Yonhap, meanwhile, reports that trading of Daewoo Shipbuilding may resume in October this year after its financial status improves, the sources said. The trading of Daewoo Shipbuilding stocks have been halted since July last year, due to its impaired capital base, the report notes. Meanwhile, shareholders of Daewoo Shipbuilding approved a proposal to hike the ceiling of sales of convertible bonds to KRW4 trillion from the current KRW2 trillion, paving the way for the shipyard to receive fresh funding from its creditors. With the debt-for-equity swap, Daewoo Shipbuilding's debt ratio will sharply fall to the 300 percent range from 2,732 percent at the end of last year, says Yonhap. Headquartered in Seoul, South Korea, Daewoo Shipbuilding & Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in building ships and offshore structures. Its product portfolio includes commercial ships, such as liquefied natural gas (LNG) carriers, oil tankers, containerships, liquefied petroleum gas (LPG) carriers, pure car carriers; offshore structures, such as FPSO vessels, drilling rigs, drillships and fixed platforms, and naval vessels, including submarines, destroyers, rescue ships and patrol boats. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2017. 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 Joseph Cardillo at 856-381-8268. *** End of Transmission ***