/raid1/www/Hosts/bankrupt/TCRAP_Public/171103.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
Friday, November 3, 2017, Vol. 20, No. 219
Headlines
A U S T R A L I A
BANK OF QUEENSLAND: Fitch Affirms BB Support Rating Floor
COOKSLEY ENTERPRISES: First Creditors' Meeting Set for Nov. 13
DARROUZET RESTAURANT: First Creditors' Meeting Set for Nov. 9
MERCHANT OVERSEAS: First Creditors' Meeting Set for Nov. 13
PROSEC SECURITY: First Creditors' Meeting Set for Nov. 8
VITALITY HEALTH: First Creditors' Meeting Set for Nov. 13
C H I N A
DONGBEI SPECIAL: Steelmaker's Privatisation Sets Precedent
CHINA HUISHAN: Majority of Lenders Agree to Restructure Debt
I N D I A
AASHAPURA AGRO: CRISIL Reaffirms B+ Rating on INR6.81MM Term Loan
ACOUSTICS INDIA: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan
AGRO PULPING: CRISIL Reaffirms B+ Rating on INR1.5MM Cash Loan
EASTERN PILLING: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan
G.A.V. AGRO: CRISIL Assigns 'B' Rating to INR10MM LT Loan
G.R. INTERNATIONAL: CRISIL Assigns B+ Rating to INR7.5MM Loan
HOMA ENGINEERING: CRISIL Hikes Rating on INR2MM Cash Loan to B+
ISPAT DAMODAR: Ind-Ra Assigns 'B' Issuer Rating, Outlook Stable
JAYKRISHNA RICE: CRISIL Assigns 'B' Rating to INR10MM Cash Loan
JS DESIGNER: Ind-Ra Affirms & Moves D Rating to Not Cooperating
KALAISELVI MODERN: CRISIL Assigns B+ Rating to INR10.5MM Loan
KANNAPPAN TEXTILE: Ind-Ra Migrates 'BB' Rating to Not Cooperating
KHUKHRAIN BUILDERS: CRISIL Reaffirms B+ Rating on INR5.56MM Loan
LIFELINE MULTI: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
MAHESH DYEING: CRISIL Reaffirms B+ Rating on INR5.1MM Cash Loan
NAGPAL EXPORTS: Ind-Ra Moves B+ Issuer Rating to Not Cooperating
NAHAR TEXTILES: Ind-Ra Affirms 'BB' Issuer Rating; Outlook Stable
SAKTHI VINAYAGA: CRISIL Reaffirms 'B+' Rating on INR6MM Loan
SHIVA TRADING: CRISIL Reaffirms B+ Rating on INR3.5MM Cash Loan
SHREE KUMARASAMY: CRISIL Reaffirms B+ Rating on INR2.4MM Loan
SHREE PRITHVI: Ind-Ra Moves BB+ Issuer Rating to Not Cooperating
SIDDHARTH INFRA: CRISIL Reaffirms 'B' Rating on INR6.5MM Loan
SRI LAKOSHA: CRISIL Reaffirms 'B' Rating on INR3.3MM Term Loan
SRI VENKATA: CRISIL Reaffirms B+ Rating on INR8.0MM Cash Loan
SUDHAKARAN NAIR: Ind-Ra Moves BB Issuer Rating to Not Cooperating
TECHNE INFRA: CRISIL Reaffirms B+ Rating on INR3.5MM Cash Loan
TECPRO SYSTEMS: CRISIL Reaffirms 'D' Rating on INR1.65BB Loan
THANE STEELS: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
VAIGAI LEATHER: CRISIL Assigns 'B+' Rating to INR6MM Loan
VIKAS TECHNOPLAST: Ind-Ra Affirms 'BB-' Issuer Rating
J A P A N
KOBE STEEL: Withdraws FY2017 Earnings Forecast Amid Data Scandal
M A L A Y S I A
MULTI SPORTS: Bursa Malaysia Reprimands Firm, Fines 3 Directors
N E W Z E A L A N D
TOP RETAIL: Unused NZ Gift Cards Worthless Now, Receivers Say
P H I L I P P I N E S
WORLD PARTNERS: Creditors Have Until Nov. 9 to File Claims
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A U S T R A L I A
=================
BANK OF QUEENSLAND: Fitch Affirms BB Support Rating Floor
---------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of six Australia-based regional banks:
- Suncorp-Metway Limited (SML) at 'A+', Outlook Stable
- ING Bank (Australia) Limited (INGBA) at 'A', Outlook Stable
- Bendigo and Adelaide Bank Limited (BEN) at 'A-', Outlook
Stable
- Bank of Queensland Limited (BOQ) at 'A-', Outlook Stable
- Heritage Bank Limited (HBL) at 'BBB+', Outlook Stable
- Police Bank Ltd (PBL) at 'BBB+', Outlook Stable
Fitch has also affirmed all other ratings of these banks. SML's
Support Rating Floor has been withdrawn at the same time as it is
no longer considered relevant to Fitch's coverage.
Risk appetite remains the key rating driver for the Viability
Ratings of each of these six banks as it is a key determinant of
profitability and capitalisation through a cycle. It is also
normally a key input for asset quality, although regulatory
intervention means differentiation between the asset quality of
these banks is unlikely over the rating horizon. Fitch do not
expect risk appetites to be materially weakened in the current
environment, especially given the regulatory focus on mortgage
underwriting. This is particularly important as risks continue to
build in Australia's household sector. High and rising household
debt combined with low wage growth and still elevated levels of
underemployment make Australia's households increasingly
susceptible to a sharp rise in either unemployment or interest
rates. However, neither of these scenarios is part of Fitch's
base case for the system. All six banks have more than half of
their assets in residential mortgages, with HBL having the
highest proportion at about 80%.
Fitch considers these banks to be price-takers due to their
relatively modest national franchises. SML's franchise benefits
from being part of the Suncorp group, which also operates one of
the largest non-life insurers in Australia. Franchises tend to be
stronger within the banks' regional home markets and some
entities benefit from community or member support. This
ultimately leads to a level of geographic concentration for all
but INGBA, which has a more diversified portfolio.
KEY RATING DRIVERS
IDRS, VIABILITY RATINGS AND SENIOR DEBT
Suncorp-Metway Limited
SML's Long-Term IDR and senior debt ratings are aligned with that
of its ultimate parent, Suncorp Group Limited (SGL; A+/Stable),
reflecting an extremely high probability of support, if required.
SGL's ability to provide support to the bank, most likely through
its insurance entities, is strong. Moreover, all entities operate
under the same regulator, indicating that capital fungibility
would be high.
SML's Viability Rating is underpinned by its strengthened risk
framework, meaning it is well placed to withstand a downturn
should it occur. The investment made into the risk framework
supports SML's sound asset quality, profitability and
capitalisation and means the bank is likely to be among the first
of its regional bank peers to seek advanced accreditation. SML
has a relatively high reliance on offshore wholesale funding,
although liquidity management is sound.
SML's franchise gains some benefit from its ownership by SGL. The
bank's strategy is largely driven by the group, and is likely to
result in greater integration between SGL's operating
subsidiaries. This could boost SML's market share, as it has a
much deeper customer base, although the boost is likely to take
longer to achieve than Fitch's two- to three-year rating horizon
and hence has limited positive implications for SML's Viability
Rating at present.
ING Bank (Australia) Limited
INGBA's Long-Term IDR is rated one notch below that of its
ultimate parent, ING Bank N.V. (ING, A+/Stable), and reflects an
extremely high probability of institutional support from the
parent should it be required. INGBA has an important role within
the group in Fitch's opinion and the parent is well placed to
provide support if needed - INGBA accounted for 4% of ING's total
assets at 31 December 2016. It also reflects that the parent is
based in another country and subject to a different regulator.
INGBA's risk appetite is a key driver of its Viability Rating,
especially given the bank's growth aspirations. The loan book is
heavily weighted towards residential mortgages, although the bank
is growing its wholesale banking exposures. INGBA's management
quality and risk framework benefit from being part of the ING
group and result in a conservative risk appetite.
INGBA's capitalisation, as measured on both risk- and un-risk
weighted ratios, should continue to support its Viability Rating
through the next 12-18 months, even though Fitch expects the
bank's capitalisation ratios to fall as a result of the bank's
growth plans. Similarly, INGBA's asset-quality ratios are likely
to move towards those of its peers due to its growth aspirations.
However, INGBA has the ability to support its capital levels by
means of the level of dividend payments it makes to the parent
entity.
Bendigo and Adelaide Bank Limited
BEN's IDRs, Viability Rating and senior debt ratings reflect its
adequate risk appetite, which supports its consistently low non-
performing loan ratio. The ratings also consider BEN's moderate
franchise in a highly concentrated and competitive market, as
well as its weaker funding position relative to international
peers. Competitive pressure on lending spreads, combined with
slower organic asset growth, rising funding costs and potential
increasing loan impairment charges, albeit from a low base, are
likely to restrain profit growth in the financial year ending
June 2018 (FY18).
Fitch expects BEN's risk appetite to remain stable, benefiting
from risk control improvements and tight underwriting standards
in recent years. This should support the bank's loan-quality
performance through the economic cycle. BEN is mainly exposed to
residential mortgages. Asset growth is likely to continue to be
driven by organic growth and opportunistic acquisitions of
smaller lenders or loan portfolios, which Fitch expects to be
within BEN's risk appetite settings.
BEN's funding position benefits from a larger proportion of
household deposits relative to many domestic peers, although the
proportion lags those of many international retail banks.
Wholesale funding adds diversity and the lengthened maturity
profile supports the bank's liquidity management. Fitch expects
BEN's capital to remain adequate, as Fitch expect it to maintain
solid profitability. Additionally, BEN would be able to increase
its internal capital generation through its dividend re-
investment plan or raise capital directly through the capital
markets, an option its mutual peers do not have.
Bank of Queensland Limited
BOQ's improved underwriting standards, risk control framework,
and financial profile leave it well positioned to withstand a
downturn in the operating environment if it were to emerge. A
modest franchise in a competitive environment and greater
reliance on wholesale funding relative to most domestic peers
somewhat offset these factors.
BOQ has a competitive advantage in some niches, such as with
medical professionals, which results in some pricing power in
these segments, reflected in the returns generated. This is
partially offset by a relatively large asset leasing exposure,
which is likely to have weaker performance than BOQ's retail
portfolios through a cycle. BOQ's capitalisation, including its
regulatory capital targets, is adequate for its current rating.
BOQ has reasonable capital flexibility - it is a listed entity so
it can access fresh capital from the markets and manage its
dividend reinvestment plan. Liquidity management is sound and
alleviates some of the risks associated with BOQ's reliance on
wholesale funding.
Heritage Bank Limited
HBL's heavy weighting towards mortgages - these made up 96% of
total loans at 30 June 2017 - has resulted in consistently strong
loan quality ratios. However, profitability metrics lag some
peers and are reflective of the bank's mutual ownership
structure, which results in a greater focus on customer service.
Capitalisation is adequate for HBL's size and nature of
operations. The bank's risk-weighted ratios are towards the
upper-end of Fitch-rated Australian banks, but this appears
warranted as HBL's small absolute size and mutuality limit
financial flexibility and ability to access new common equity.
Police Bank Limited
PBL's IDRs and Viability Rating reflect its conservative risk
appetite, strong asset quality, robust capitalisation and wholly
deposit funded loan book.
PBL's modest franchise is aimed at servicing core members. The
bank operates a simple business model, mainly focused on retail
lending, and benefits from a loyal membership base. The
management change that occurred in 2016 is unlikely to
significantly alter the bank's core strategy in the short term,
although it may increase its focus on improving its digital
offerings and cost efficiency to make it more competitive.
The bank's asset quality is one of the strongest within its peer
group and is supported by PBL's conservative underwriting
criteria, which is focused mainly on owner-occupier mortgages.
PBL has a higher proportion of personal lending than its peers,
although this risk is partially mitigated by the profile of its
core borrowers - mostly public-service employees that Fitch sees
as having higher employment security compared with other
industries. The focus on this niche market does however, create
concentration risk for the bank in terms of geographic and sector
exposure.
PBL has the highest capitalisation ratios within its domestic
peer group, however Fitch views its absolute capital base as
small and access to new capital is limited as a result of the
mutual ownership structure.
SUPPORT RATING AND SUPPORT RATING FLOOR
Suncorp-Metway Limited, ING Bank (Australia) Limited
SML and INGBA's Support Ratings of '1' reflect the extremely high
likelihood of support from their respective parents should it be
required.
SML's Support Rating Floor of 'BB+' was withdrawn as it is no
longer considered relevant to the agency's coverage. SML's
ratings are driven by institutional support and Support Rating
Floors are usually only assigned to banks with a sovereign-driven
Support Rating. It reflected a moderate potential for government
support. SML's Support Rating Floor was one notch higher than
BEN's and BOQ's to reflect that it is part of a larger financial
group that plays a key role in the Australian market.
Bendigo and Adelaide Bank Limited, Bank of Queensland Limited
BEN and BOQ's Support Rating of '3' and Support Rating Floor of
'BB' reflect the moderate potential of government support should
it be needed, given their modest market shares and role in the
banking system.
Heritage Bank Limited, Police Bank Limited
HBL and PBL's Support Rating of '5' and Support Rating Floor of
'No Floor' reflect Fitch's view that while support from the
authorities is possible, it cannot be relied upon due to the
banks' small market share and low systemic importance.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
The ratings of the subordinated debt issued by BEN, BOQ and HBL
are notched one level down from the anchor Viability Ratings for
loss severity. No notching has been applied for non-performance
risk.
RATING SENSITIVITIES
IDRS AND SENIOR DEBT
SML and INGBA's IDRs are sensitive to changes in the ability or
propensity of their respective parents to provide support.
The IDRs and senior debt ratings of BEN, BOQ, HBL and PBL are
sensitive to factors that would affect their respective Viability
Ratings.
VIABILITY RATING
The Viability Ratings of all six banks included in this review
remain sensitive to any weakening in their respective risk
appetites. This is most likely to be evidenced through more
aggressive underwriting standards or looser risk controls while
seeking asset growth, possibly in an effort to increase the
bank's company profile. This may in turn manifest in a larger-
than-peer deterioration in asset quality, profitability and
capitalisation should there be a significant downturn in the
operating environment. Strong asset growth may also challenge
funding profiles, which may also pressure ratings if not offset
through adequate capital and liquidity management.
Positive rating action is unlikely given the modest franchises of
these banks, as well as funding profiles that are weaker than
many similarly rated international peers.
SUPPORT RATING AND SUPPORT RATING FLOOR
SML and INGBA's Support Ratings are sensitive to changes in
Fitch's assumptions about the ability and propensity of their
respective parents to provide timely support, if needed. This may
result from a change in the parent's ratings (IDR for SML and
Viability Rating for INGBA) or a weakening of the importance of
SML or INGBA to their respective group's strategy.
The Support Ratings and Support Rating Floors of BEN, BOQ, HBL
and PBL are sensitive to changes in Fitch's assumptions about the
propensity or ability of the Australian sovereign (AAA/Stable) to
provide timely support.
No change to the propensity of the authorities to provide support
appears imminent, despite global moves, although Fitch expect
Australia's resolution framework to be strengthened in the medium
term. This would remove any assumption of sovereign support.
Negative action on the Support Ratings and Support Rating Floors
of the Australian regional banks will not directly affect their
IDRs, which are currently driven by their Viability Ratings (BEN,
BOQ, HBL and PBL) or institutional support (SML and INGBA).
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
The subordinated debt ratings of BEN, BOQ, and HBL are broadly
sensitive to the same considerations that might affect their
relevant anchor ratings, the Viability Rating.
The rating actions are:
Suncorp-Metway Limited:
Long-Term IDR affirmed at 'A+'; Outlook Stable
Short-Term IDR affirmed at 'F1'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '1'
Support Rating Floor affirmed at 'BB+' and withdrawn
Senior unsecured debt affirmed at 'A+'/'F1'
Commercial paper affirmed at 'F1'
ING Bank (Australia) Limited:
Long-Term Issuer Default Rating affirmed at 'A'; Outlook Stable
Short-Term Issuer Default Rating affirmed at 'F1'
Support Rating affirmed at '1'
Viability Rating affirmed at 'a-'
Bendigo and Adelaide Bank Limited:
Long-Term IDR affirmed at 'A-'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Senior unsecured debt affirmed at 'A-'/'F2'
Commercial paper affirmed at 'F2'
Subordinated debt affirmed at 'BBB+'.
Bank of Queensland Limited (BOQ):
Long-Term IDR affirmed at 'A-'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Senior unsecured debt affirmed at 'A-'
Subordinated debt affirmed at 'BBB+'
Heritage Bank Limited (HBL):
Long-Term IDR affirmed at 'BBB+'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Senior unsecured debt affirmed at 'BBB+'/F2'
Subordinated debt affirmed at 'BBB'
Police Bank Limited (PBL):
Long-Term IDR affirmed at 'BBB+'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Senior unsecured debt affirmed at 'BBB+'/'F2'
COOKSLEY ENTERPRISES: First Creditors' Meeting Set for Nov. 13
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Cooksley
Enterprises Pty Ltd, Pepperz Sydney Pty Ltd, and Transglobal
Logistics Solutions Pty Ltd will be held at the offices of
BPS Recovery, Level 18, 201 Kent Street, in Sydney, on Nov. 13,
2017, at 10:00 a.m.
Daniel Frisken and Mitchell Ball of BPS Recovery were appointed
as administrators of Cooksley Enterprises on Nov. 1, 2017.
DARROUZET RESTAURANT: First Creditors' Meeting Set for Nov. 9
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Darrouzet
Restaurant Group Pty Ltd will be held at the offices of Vincents,
Level 14, MLC Centre, 19-29 Martin Place, in Sydney, New South
Wales, on Nov. 9, 2017, at 9:30 a.m.
Louisa Sijabat of Vincents Chartered Accountants was appointed as
administrator of Darrouzet Restaurant on Oct. 30, 2017.
MERCHANT OVERSEAS: First Creditors' Meeting Set for Nov. 13
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Merchant
Overseas Logistics Pty Ltd will be held at Comfort Inn Bay of
Isles, Conference Room, 32 The Esplanade, in Esperance, WA, on
Nov. 13, 2017, at 12:00 p.m.
Andrew Schwarz and Jon Howarth of AS Advisory were appointed as
administrators of Merchant Overseas on Oct. 31, 2017.
PROSEC SECURITY: First Creditors' Meeting Set for Nov. 8
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Prosec
Security Pty Ltd will be held at the Meeting Room of Servcorp,
Level 26, 44 Market Street, in Sydney, NSW, on Nov. 8, 2017, at
11:30 a.m.
Henry Kwok and Gavin Moss of Chifley Advisory were appointed as
administrators of Prosec Security on Oct. 20, 2017.
VITALITY HEALTH: First Creditors' Meeting Set for Nov. 13
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Vitality
Health Pty Ltd will be held at the offices of BPS Reconstruction
and Recovery, Suite 6, Level 5, 350 Collins Street, in Melbourne,
on Nov. 13, 2017, at 10:00 a.m.
Simon Patrick Nelson of BPS Reconstruction was appointed as
administrator of Vitality Health on Oct. 31, 2017.
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C H I N A
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DONGBEI SPECIAL: Steelmaker's Privatisation Sets Precedent
----------------------------------------------------------
The Financial Times reports that after years of propping up
lossmaking state companies with fiscal subsidies and cheap
credit, one Chinese province has embraced privatisation to cast
off its burden, setting a precedent for dealing with thousands of
"zombie enterprises."
Dongbei Special Steel, based in the north-east rust-belt province
of Liaoning, is a high-profile example of the excessive debt and
poor profitability that has plagued thousands of lossmaking state
groups, the FT says. These "zombies", which survive because of
state support are a key challenge for the Communist party's newly
selected top leadership, the report relates.
According to the FT, the steel group has defaulted 10 times since
last year on RBM7 billion ($1.1bn) worth of bonds held by more
than 100 creditors. The company entered formal bankruptcy last
October, and the chairman's recent suicide has added a morbid air
to the proceedings.
Now, one of the country's most successful private steel tycoons
has agreed to invest RMB4.5 billion as part of a restructuring
and will take over as the largest shareholder, the FT relates.
Shen Wenrong was ranked as China's richest steel magnate and
111th richest person overall, with wealth of $3.7 billion, in
this year's Hurun rankings, the country's best-known rich list,
the report says.
The FT notes that Dongbei Special's unexpected privatisation has
raised hopes that authorities are becoming open to market-based
solutions to the zombie problem. Until now, Beijing has
cautiously promoted so-called mixed ownership -- a euphemism for
partial privatisation -- but the state has typically retained its
controlling share.
"Shen Wenrong's intervention in Dongbei Special's restructuring
to become the largest shareholder has an extraordinary
significance," Qin Yuan, senior metals analyst at CIB Research,
an arm of Industrial Bank, wrote in a report, the FT relays. "An
advanced representative of China's private economy has penetrated
a core pillar of heavy industry in the north-east region, where
the atmosphere of the state-owned economy is extremely thick."
Headquartered in Dalian, China, Dongbei Special Steel Group Co.
manufactures carbon structural, alloy, tool, stainless, and
bearing steel; and super alloy products. It offers stainless
steel bars and wire rods; bearing steel bars and wire rods; steel
products for the automotive industry.
CHINA HUISHAN: Majority of Lenders Agree to Restructure Debt
------------------------------------------------------------
Nikkei Markets reports that China Huishan Dairy Holdings said it
has been informed by its chairman and controlling shareholder
Yang Kai that a majority of the Chinese creditors to the company
and Yang have in principle agreed to support an overall debt
restructuring.
Yang was informed by his debt restructuring adviser that more
than half of the Chinese creditors in number have signed an
agreement to act in concert supporting the debt restructuring,
the company said in a statement to the stock exchange late on
Nov. 1, Nikkei relates. The creditors represent more than two-
thirds of the outstanding amount due by the group or Yang and
other companies as of March 31, the statement said.
According to the report, China Huishan said Yang also informed
the company that a major creditor of Champ Harvest, which holds a
70.76% stake in China Huishan Dairy on behalf of Yang, has served
an application to start liquidation proceedings against Champ
Harvest. The identity of the creditor wasn't disclosed.
The Hong Kong-listed company's shares have been on a trading halt
since an 85% crash in the morning session on March 24, Nikkei
notes.
In its statement on Nov. 1, China Huishan said the company has
continued to do business in the ordinary course, and that it is
on track to achieve positive cash flow from operations by March
2018, the report adds.
About China Huishan
China Huishan Dairy Holdings Co Ltd (HKG:6863) is principally
engaged in the production and sales of raw milk, liquid milk
products and milk powder products. The Company operates its
business through three segments. The Dairy Farming segment is
engaged in planting, growing and harvesting alfalfa grass and
other feed crops, processing feeds and breeding dairy cows. The
Liquid Milk Products Production segment is engaged in the
production and sales of pasteurized milk, ultra-high temperature
(UHT) milk, yoghurt and milk beverages. The Milk Powders
Production segment is engaged in the production and sales of
infant milk formula products, adult milk powder products and
dairy ingredient products.
As reported in the Troubled Company Reporter-Asia Pacific on
April 13, 2017, The South China Morning Post said a Shanghai
court has frozen assets of China Huishan Dairy Holding and its
chairman as requested by a mainland wealth management firm, and
that HSBC alleges it has defaulted on a US$200 million loan.
Huishan said in a filing to the Hong Kong stock exchange on
April 10 that it had received a letter on April 7 from HSBC
alleging "non-compliance with certain of the covenants" and "has
therefore called events of default under the Facility Agreement".
HSBC acted on behalf of six creditor banks, including China CITIC
Bank International.
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I N D I A
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AASHAPURA AGRO: CRISIL Reaffirms B+ Rating on INR6.81MM Term Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Aashapura Agro Industries
(AAI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .5 CRISIL A4 (Reaffirmed)
Cash Credit 6.0 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility .29 CRISIL B+/Stable (Reaffirmed)
Term Loan 6.81 CRISIL B+/Stable (Reaffirmed)
The ratings reflect AAI's average financial risk profile and
working capital-intensive operations. These weaknesses are
partially offset by the partners' experience and funding support
along with healthy growth prospects of the rice industry.
Key Rating Drivers & Detailed Description
Weakness
* Average financial risk profile: Low networth of INR3.85 crore
as on 31st March 2017 and high gearing of over 2 times has weaken
the financial risk profile.
* Working capital-intensive operations: Gross current assets were
82 days as on March 31, 2017, driven by inventory and debtors of
33 days and 35 days, respectively.
Strengths
* Experience of partners: Benefits derived from the partners'
experience of over a decade and healthy relations with customers
and suppliers should continue to support the business.
* Funding support from partners: The partners have been
supporting the business through need-based funds in the form of
equity and unsecured loans.
Outlook: Stable
CRISIL believes AAI will continue to benefit from experience of
partners. The outlook may be revised to 'Positive' if larger-
than-expected cash accrual or prudent working capital management
strengthens financial risk profile. Conversely, the outlook may
be revised to 'Negative' if lower-than-expected operating
profitability or sizeable, debt-funded capital expenditure
weakens financial risk profile.
AAI is a partnership firm set up by Mr Sandip Chandak and family
in May 2014. The firm processes and sells rice. Its facility is
in Dantali (Gujarat). Commercial operations commenced from
December 2015.
ACOUSTICS INDIA: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Acoustics India Pvt Ltd (AIPL) at 'CRISIL B+/Stable/CRISIL
A4'. The ratings continue to reflect AIPL's weak financial risk
profile and modest scale of operation. These weaknesses are
partly offset by the extensive experience of AIPL's promoter in
the engineering industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 4 CRISIL A4 (Reaffirmed)
Cash Credit 5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 1 CRISIL B+/Stable (Reaffirmed)
Key Rating Drivers & Detailed Description
Weakness
* Weak debt protection metrics: Financial risk profile is weak
marked by average debt protection metrics. Interest coverage
remains low due to high reliance on bank borrowings despite
improving to 1.54 times in fiscal 2017 from 1.1 times in fiscal
2016.
* Modest scale of operation: Modest scale of operation constrains
profitability. Further, low value addition limits the bargaining
power with customers.
Strengths
* Extensive experience of the promoter: Benefits from the
promoter's two decade-long experience in the industry and
established relationships with suppliers and customers should
support business.
Outlook: Stable
CRISIL believes AIPL will continue to benefit from the extensive
experience of its promoter. The outlook may be revised to
'Positive' if increase in scale of operations and profitability
strengthens financial risk profile. The outlook may be revised to
'Negative' if stretch in working capital cycle or any large debt-
funded capital expenditure weakens capital structure and
liquidity.
Incorporated in 1991 and promoted by Mr Sukumar, AIPL
manufactures noise and pollution control products used in
industries such as power, engineering, fertilisers, oil and gas,
and petrochemicals.
AGRO PULPING: CRISIL Reaffirms B+ Rating on INR1.5MM Cash Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Agro Pulping Machinery Private Limited (APMPL) at 'CRISIL
B+/Stable/CRISIL A4'. The ratings continue to reflect the
company's modest scale of operations, vulnerability to
fluctuations in raw material prices and below-average financial
risk profile. These rating weaknesses are partially offset by the
promoter's extensive experience in pulping and paper
manufacturing equipment industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.3 CRISIL A4 (Reaffirmed)
Cash Credit 1.5 CRISIL B+/Stable (Reaffirmed)
Proposed Bill
Discounting
Facility 2.0 CRISIL A4 (Reaffirmed)
Proposed Letter
of Credit 5.0 CRISIL A4 (Reaffirmed)
Proposed Packing
Credit 3.0 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility .2 CRISIL B+/Stable (Reaffirmed)
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: APMPL's scale of operations is
modest and has fluctuated in the range of INR3 crore to INR30
crore over the 5 years through fiscal 2017. High dependence on
single product coupled with long order cycles result in spill-
over of orders to the following fiscal year. Scale is expected to
remain modest over the medium term.
* Vulnerability to fluctuations in raw material prices: High
inventory levels of the key raw material, steel, and absence of
price escalation clause exposes the company's operating margin to
volatility in input costs.
* Below-average financial risk profile: Total outside liabilities
to tangible networth (TOLTNW) was moderate at 1.71 times as on
March 31, 2017 and interest coverage modest at 1.41 times in
fiscal 2017. Liquidity marked by moderate bank limit utilisation
and adequate accruals against negligible repayment obligation.
Financial risk profile is expected to remain modest owing to
modest scale and profitability.
Strength
* Promoter's extensive industry experience: The promoter's
experience in the industry of over 2 decades has enabled the
company to diversify product portfolio, establish strong
relationship with suppliers, and bag large orders from foreign
companies. The promoter's experience in the industry is expected
to result in improvement of revenues over the medium term.
Outlook: Stable
CRISIL believes APMPL will benefit over the medium term from the
promoters' extensive experience in the pulping and paper
manufacturing equipment industry. The outlook may be revised to
'Positive' if APMPL enhances its business and financial risk
profiles with successful customer diversification, and higher-
than-expected revenue and cash accrual. Conversely, the outlook
may be revised to 'Negative' if low cash accrual, or increase in
working capital requirements weakens the financial risk profile.
Incorporated in 1991, APMPL manufactures pulping and paper
manufacturing equipment. The company also specialises in chemical
recovery from the wastes of paper mills. The company, promoted by
Mr. S Raghavan, has its manufacturing facility in Chennai.
EASTERN PILLING: CRISIL Reaffirms B+ Rating on INR5MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities
of Eastern Pilling and Construction Pvt Ltd (EPCPL) to 'CRISIL
B+/Stable/CRISIL A4.'
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed;
Removed from 'Issuer Not
Cooperating')
Cash Credit 5 CRISIL B+/Stable
(Reaffirmed; Removed from
'Issuer Not Cooperating')
CRISIL's ratings continue to reflect the limited scale of
operations, geographical and segmental concentration in revenue,
and modest financial risk profile. These weaknesses are partially
offset by extensive experience of the promoter in the
transmission towers industry.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations, and geographical and segmental
concentration: Despite the company's presence of over two decades
in the transmission tower industry, scale of operations remains
small, with estimated revenue of around INR10 crore in fiscal
2017, due to focus on small turnkey projects of up to 300 KV, and
exposure to intense competition.
* Moderate financial risk profile constrained by small networth:
Financial risk profile is marked by small networth, moderate
gearing and average debt protection metrics. Networth and gearing
stood at INR5.44 crore and 1.14 times, respectively, as on
March 31, 2017. Interest coverage ratio has declined from 2.18
times in fiscal 2016, to 1.90 times in fiscal 2017, as reduction
in scale of operations constrained the operating profitability.
Strength
* Extensive experience of the promoter in the transmission tower
industry: Promoters of the company commenced operations by
supplying transmission towers-related material to government
projects in 1991 and gradually diversified into executing turnkey
projects for the private sector in 2005. Over the years, the
management has gained significant expertise in providing turnkey
solutions for installation of power transmission towers,
substations, and power distribution systems.
Outlook: Stable
CRISIL believes EPCPL will continue to benefit from the extensive
experience of its promoter. The outlook may be revised to
'Positive' if geographical and segmental diversification leads to
ramp-up in operations, or if capital structure improves. The
outlook may be revised to 'Negative' if large working capital
requirement, low cash accrual, or debt-funded capital
expenditure, weakens the financial risk profile.
EPCPL was set up by the promoter, Mr Abhay Kumar Das in 1991. The
Cuttack, Odisha-based company conducts surveys, procures raw
material as per approved designs, and completes installation of
transmission lines, including sub-station repair work, mainly for
private companies, apart from government agencies.EPCPL was set
up by the promoter, Mr Abhay Kumar Das in 1991. The Cuttack,
Odisha-based company conducts surveys, procures raw material as
per approved designs, and completes installation of transmission
lines, including sub-station repair work, mainly for private
companies, apart from government agencies.
G.A.V. AGRO: CRISIL Assigns 'B' Rating to INR10MM LT Loan
---------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facilities of G.A.V. Agro Private Limited (GAVPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8 CRISIL B/Stable
Long Term Loan 10 CRISIL B/Stable
The rating reflects the company's modest scale of operations,
exposure to fluctuations in commodity prices, and working
capital-intensive operations. These weaknesses are partially
offset by the extensive experience of its promoters in the rice
milling industry and long-term relationship with customers.
Analytical Approach
Unsecured loans of INR1.76 crore from promoters and related
parties have been treated as 75% equity and 25% debt since the
same are interest-free and are expected to remain in business
over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: With an operating income of
INR22.26 crore for fiscal 2017, scale remains small in the
fragmented rice industry.
* Exposure to fluctuations in commodity prices: Operating margin
remains susceptible to volatility in commodity prices. Hence an
upward movement in the prices of the raw materials may impact the
operating profitability of the company.
* Working capital intensive operations: Since the company is
related to the rice milling industry, it has working capital
intensive operations. Its gross current asset days stood at 197
days for the fiscal 2017 with gross inventory at 101 days.
Strength
* Extensive experience of promoters: Longstanding presence in the
rice industry has enabled the promoters to establish healthy
relationship with customers.
Outlook: Stable
CRISIL believes GAVPL will benefit over the medium term from its
established relationship with customers and extensive experience
of promoters. The outlook may be revised to 'Positive' if ramp up
in operations leads to higher net cash accrual, thereby improving
financial risk profile. The outlook may be revised to 'Negative'
if financial risk profile deteriorates on account of decline in
revenue and profitability or larger-than-expected, debt-funded
capital expenditure.
Incorporated in 2013 and promoted by Mr Pradeep Kumar and Mr Om
Prakash, GAVPL processes non-basmati rice for the domestic and
global markets. The processing facilities of the company is
located in Lucknow, Uttar Pradesh.
G.R. INTERNATIONAL: CRISIL Assigns B+ Rating to INR7.5MM Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of G.R. International (INC) (GRI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.5 CRISIL B+/Stable (Assigned)
The rating reflects the firm's below-average financial risk
profile because of high total outside liabilities to tangible
networth (TOLTNW) ratio, modest scale of operations, and large
working capital requirement in the highly fragmented rice
industry. These weaknesses are partially offset by partners'
extensive industry experience.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations, and large working capital
requirement: The modest scale is reflected in turnover of
INR55.18 crore in fiscal 2017 and modest capacity compared to
other players in the industry. Gross current assets were at 91
days, driven by sizeable inventory of 72 days and receivables of
11 days, as on March 31, 2017.
* Below-average financial risk profile: The financial risk
profile is constrained by high TOLTNW ratio of 4.0 times as on
March 31, 2017, and weak debt protection metrics, reflected in
interest coverage ratio of 1.35 times and net cash accrual to
total debt ratio of 0.06 time for fiscal 2017.
Strengths
* Extensive industry experience of partners: The partners'
experience of over three decades in the rice industry has helped
them establish a strong clientele and supplier base, and gain a
sound understanding of the market dynamics.
Outlook: Stable
CRISIL believes that GRI will continue to benefit from its
partners' extensive industry experience. The outlook may be
revised to 'Positive' if there is a substantial improvement in
financial risk profile, driven by more-than-expected revenue
growth leading to high cash accrual, or capital infusion along
with efficient working capital management. The outlook may be
revised to 'Negative' if lower-than-expected cash accrual, or
larger-than-expected working capital requirement, or sizeable,
debt funded capital expenditure leads to further pressure on
liquidity.
GRI was established as a partnership firm in 1992 by Mr Sham
Sunder and Ms Anupa Garg. The firm mills and processes basmati
rice at its facilities in Panipat, Haryana. It has milling and
sorting capacity of 4 tonne per hour, of which, 80-85% is
utilised.
HOMA ENGINEERING: CRISIL Hikes Rating on INR2MM Cash Loan to B+
---------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Homa Engineering Works (HEW) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable'. The rating on the short-term facility has
been reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter Of Guarantee 4 CRISIL A4 (Reaffirmed)
Proposed Short Term
Bank Loan Facility 2 CRISIL A4 (Reaffirmed)
The rating upgrade reflects the sustainable improvement in the
company's business risk profile marked by significant improvement
in working capital cycle. The working capital cycle of the
company has improved as reflected by the debtor of 40 days in
fiscal 17 as against 129 days in fiscal 16. In earlier years the
firms has conducted a single refitting work of INR15 crore for
Vijita for coast guard. Lumpiness in order resulted in stretch in
cycle, current work executed by the firm are of small order size
of INR1 to 4 crore, therefore reduce concentration has resulted
in improvement in debtors days to 40 from 120 earlier. The firm
has order of 11 crore with small order size therefore HEW working
capital cycle is expected to remain at similar level over medium
term.
The upgrade also factors in the financial risk profile backed by
modest net worth of and comfortable net cash accruals against
which the company has minimal debt repayment obligations.
The ratings continue to reflect HEW's the extensive experience of
the promoters. These strengths are partially offset by small
scale of operations and customer concentration in revenue
profile.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations: HEW's operations are modest with
revenue at around INR14 cr in 2016 - 17. The firm provides ship
repairing and maintenance services and therefore operates in the
highly fragmented marine industry. Low entry barriers in the
industry because of low capital and technological requirements
have resulted in intense competition from various established
players and from players operating at the bottom of the value
chain.
* Customer concentration in revenue profile: HEW generates all
its revenue from Coastal Guard, thus significantly exposing
itself to the risks associated with over-reliance on a single
customer. Any curtailment in orders by Coastal Guard might
adversely affect the revenue profile of HEW. Dependence on a
single customer for revenue generation may also reduce HEW's
negotiation power. HEW would continue to generate majority of its
revenues primarily from Coastal Guard, the firm will continue to
face the risks associated with the customer concentration in its
revenue profile.
Strengths
* Extensive experience of promoters in marine industry and
established customer relationship: HEW is part of the SHM group,
which was set up in 2001, by Mr. Saifuddin Hajee along with his
family. The group manufactures products required by various
shipping companies, ship yards, port authority, and oil and gas
companies. The group also manufactures and supplies life rafts,
rescue/work boat, inflatable life boats, FRP boats lifesaving and
fire-fighting equipment, communication and navigational equipment
and marine chemicals and welding/refrigeration products among
others. HEW is a partnership firm, which was taken over by Mr.
Saifuddin Hajee in 2007. Mr. Saifuddin Hajee has more than 20
years of experience in the marine equipment industry. The
promoters' extensive experience has helped the firm to work with
various reputed clients such as Coast Guard, Indian Navy, Oil and
Natural Gas Corporation Limited, Shipping Corporation of India,
Port Trusts, Anglo Indian Shipping, among others.
* Improvement in working-capital cycle: HEW's operations are
working capital intensive, as reflected in its gross current
assets (GCA) of 158 days in fiscal 17 as against the same as 260
days in fiscal 16. HEW continues to have large working capital
requirements because of a stretch in its receivables and delay in
certification of work. The company generally receives around 10
per cent as mobilization advance; 20 per cent against docking; 10
per cent of proceeds after undocking of the ship; 10 per cent is
received on sea trial; 50 per cent post completion of the project
and 10 per cent as retention money which is released post few
weeks. The firm generally receives payment after 100 days
resulting in high debtor days. Further, 5 to 10 per cent of the
project cost is required to be maintained as retention money
which is released 6 to 12 months after the commissioning of the
project. The working-capital-intensive operations have resulted
in HEW almost fully utilizing its bank lines.
Outlook: Stable
CRISIL believes that HEW will maintain its stable business risk
profile over the medium term, backed by its partner's extensive
industry experience and established customer relationship. The
outlook may be revised to 'Positive' if HEW demonstrates higher-
than-expected growth in revenues, while substantially improving
its working capital cycle, thereby leading to an improved
liquidity. Conversely, the outlook may be revised to 'Negative'
in case of deterioration in the firm's financial risk profile due
to delay in receivables or due to decline in revenues and
profitability.
HEW was set up in 1974, by Mr. Hoshang Bengali, and his business
acquaintances Captain Vistas Patel and Mrs. Khurshid Irani. The
firm was taken over by Mr. Saifuddin Hajee and his son Mr.
Aliasgar Hajee in 2007. The firm is engaged in providing ship
repairing and maintenance services for both Indian and foreign
merchant navy vessels and coast guard ships. Mr. Aliasgar Hajee
oversees the day to day operations of the firm.
ISPAT DAMODAR: Ind-Ra Assigns 'B' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ispat Damodar
Private Limited (IDPL) a Long-Term Issuer Rating of 'IND B'. The
Outlook is Stable. The instrument-wise rating actions are:
-- INR648 mil. Fund-based working capital limit assigned with
IND B/Stable rating;
-- INR139.378 mil. Long-term loans due on September 2018
assigned with IND B/ Stable rating; and
-- INR260 mil. Non-fund-based working capital limit assigned
with IND A4 rating.
KEY RATING DRIVERS
The ratings reflect IDPL's tight liquidity situation due to high
working capital requirements, as reflected from its close to 100%
use of the fund-based limit for the 12 month ended September 2017
and net cash cycle of 122 days during FY17. The high working
capital requirement is owing to high inventory days of 155 in
FY17.
The ratings factor in the continuous decline in the company's
revenue to INR2,767 million in FY17 from INR2,798 million in FY16
and INR3,521 million in FY15. This has mainly been due to a
slowdown in the overall demand from its customers.
The ratings, however, are supported by IDPL's moderate credit
metrics, supported by its strong operating margins because of low
raw material prices. Gross interest coverage was 2x in FY17
(FY16: 2x), net financial leverage (adjusted net debt/operating
EBITDAR) was 3.4x (3.7x) and EBITDA margins were 10% (9.8%).
The ratings are also supported by IDPL's promoters' more than two
decade of experience in manufacturing steel products.
RATING SENSITIVITIES
Negative: Any further tightening of the liquidity may lead to a
negative rating action.
Positive: An improvement in the liquidity position along with
maintenance of the key credit ratios will be positive for the
ratings.
COMPANY PROFILE
IDPL was incorporated in 1996 by Mr. Ram Kishore Bansal. The
company manufactures ferro alloys, sponge iron and steel billets
at 58,000MTPA, 60,000MTPA and 60,000MTPA capacities,
respectively, at its unit in Purulia, West Bengal.
The company belongs to Eurasia Group promoted by Mr. Ram Kishore
Bansal, Mr. Vikas Bansal and Mr. Satpal Bansal. Its group
companies include Brand Alloys Private Limited ('IND
BB+'/Stable), Sonic Thermal Limited ('IND BB+'/Stable) and Haldia
Steels Private Limited ('IND BB+'/Stable).
JAYKRISHNA RICE: CRISIL Assigns 'B' Rating to INR10MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its rating on the long term bank
facility of Jaykrishna Rice industries (JKRI) at 'CRISIL
B/Stable'
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B/Stable
CRISIL's rating on the long-term bank facilities of JKRI
continues to reflect the firm's below-average financial risk
profile marked by its modest net worth, high gearing supported by
moderate debt protection metrics, modest scale of operations and
susceptibility of its profitability to changes in paddy prices
and government regulations. These weaknesses are partially offset
by extensive experience of its promoters in the rice milling
industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Below average financial risk profile: Financial risk profile is
moderate marked by high gearing, moderate debt protection metrics
and modest net worth. Net worth was modest at INR4.88 crore
against total debt outstanding of INR11.75 crore resulting in
gearing of around 2.4 times as on March 31 2017. Debt protection
metrics was moderate as reflected in interest coverage ratio and
net cash accruals to adjusted debt of around 1.91 times and 6%
for the Fiscal 2017.
* Modest scale of operations: JKRI's scale of operations is
modest, as indicated by its estimated revenues of around INR54.42
Crore for 2017-18. The firm has witnessed modest growth in
revenues over the years. The firm has an installed milling
capacity of 10 tonnes per hour (tph), which is modest given the
presence of players with capacities of 50 to 70 tph in Andhra
Pradesh (AP). While large players have better efficiencies and
pricing power because of their scale of operations, small players
are exposed to intense competition.
* Susceptibility of its profitability margins to changes in
government regulations and paddy prices: Cost of paddy accounts
for about 80 to 85 per cent of the cost of producing rice.
Availability of paddy being an agriculture product is seasonal,
and is dependent on the monsoons/irrigation. This exposes the
company to the risk of limited availability of paddy in case of
unfavourable climatic conditions. The price of paddy has also
been volatile in the past. The rice milling business is marked by
intense competition, which restricts the ability of the players
from fully passing on the increase in paddy prices to customers
or retaining any benefit of lower paddy price.
Strength
* Extensive experience of promoters in rice milling industry:
JKRI's managing partner, Mr. Brahmanandam and another main
partner and his brother Mr. Kumar has been in the rice milling
business since past 20 years. After running various rice mills
with other partners, they set up JKRI with his family members as
partners in 2009. The mill is favourably located in the middle of
large paddy growing areas in the Nellore Region, which is one of
the largest rice growing areas in Andhra Pradesh specializing in
high-yielding rice varieties.
CRISIL believes that JKRI will leverage the experience of its
management in the rice milling business.
Outlook: Stable
CRISIL believes JKRI will continue to benefit over the medium
term from the promoters' extensive experience in the business.
The outlook may be revised to 'Positive' in case of substantial
improvement in scale of operations and profitability, while the
capital structure remains stable. Conversely, the outlook may be
revised to 'Negative' if the financial risk profile weakens owing
to decline in profitability, stretch in working capital cycle, or
any large debt-funded capital expenditure.
Incorporated in 2009, JKRI mills and processes paddy into rice.
The manufacturing plant is in Nellore, Andhra Pradesh. Mr K.
Bramhanandam and Mr K. Kumar and their families are the
promoters.
JKRI reported a profit after tax of INR0.50 crore on revenue of
INR49.47 crore in fiscal 2017, against INR0.45 crore on revenue
of INR39.19 crore in fiscal 2016.
JS DESIGNER: Ind-Ra Affirms & Moves D Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed JS Designer
Limited's Long Term Issuer Rating at 'IND D' while simultaneously
migrating it 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 D(ISSUER NOT
COOPERATING)' on the agency's website. The instrument-wise rating
actions are:
-- INR610.30 mil. Fund-based limit (Long term/Short term)
affirmed then migrated to non-cooperating category with IND
D(ISSUER NOT-COOPERATING) rating;
-- INR47.50 mil. Non-fund-based limit (Short term) affirmed then
migrated to non-cooperating category with IND D(ISSUER NOT-
COOPERATING) rating; and
-- INR356.50 mil. Term loans (Long term) affirmed then migrated
to non-cooperating category with IND D(ISSUER NOT-
COOPERATING) rating.
ISSUER NOT-COOPERATING: Issuer did not cooperate; based on best
available information
KEY RATING DRIVERS
The ratings reflect continued delays in debt servicing by JS
Designer in the month of October 2017 due to its stressed
liquidity position.
COMPANY PROFILE
The ratings reflect continued delays in debt servicing by JS
Designer in the month of October 2017 due to its stressed
liquidity position.
KALAISELVI MODERN: CRISIL Assigns B+ Rating to INR10.5MM Loan
-------------------------------------------------------------
CRISIL Ratings has revoked the suspension of its rating on the
long-term bank facilities of Kalaiselvi Modern Rice Mill (KMRM)
and has assigned its 'CRISIL B+/Stable' rating to the facilities.
CRISIL had, on October 5, 2016, suspended the rating as ALP had
not provided information required for a rating review. KMRM has
now shared the requisite information, enabling CRISIL to assign a
rating to its bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10.5 CRISIL B+/Stable (Assigned;
Suspension Revoked)
Proposed Cash 1.5 CRISIL B+/Stable (Assigned;
Credit Limit Suspension Revoked)
The ratings reflect the modest scale of operations and intense
competition, its susceptibility of operating margins to adverse
government regulations and raw material price volatility and it's
below average financial risk profile. These weaknesses are
partially offset by the extensive experience of its promoters in
the industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and intense competition in the
industry: KMRM's business risk profile remains constrained by its
modest scale of operations in the intensely competitive rice
milling industry. The modest scale of operations is indicated by
its revenues of INR48 crores for fiscal 2017.
* Susceptibility of operating margin to adverse government
regulations and raw material price volatility: The domestic rice
industry is highly regulated in terms of paddy prices,
export/import policy for rice, and rice release mechanism, which
affects the credit quality of players in the industry. The
minimum support price of paddy and prevailing rice prices are two
important factors that determine a rice mill's profitability
* Below Average financial risk profile: KMRM's financial risk
profile is below average with net worth and gearing INR4.6 crore
and 3 times as on March 31, 2017. Interest coverage and net cash
accruals to total debt ratio (NCATD) ratio at around 1.6 times
and 3 percent for fiscal 2017.
Strength
* Extensive industry experience of the proprietor: The market
position of the firm benefits from the extensive industry
experience of its proprietor in the rice milling business. The
proprietor Mr. Jayaraman has been operating in the rice milling
business for over 25 years.
Outlook: Stable
CRISIL believes that KMRM will continue to benefit over the
medium term from the long standing industry experience of its
promoters. The outlook may be revised to 'Positive' if the firm's
revenues and profitability increase substantially leading to an
improvement in its financial risk profile or in case of
significant infusion of capital into the firm resulting in
further improvement in capital structure. Conversely, the outlook
may be revised to 'Negative' if KMRM undertakes aggressive, debt-
funded expansions, or if there is a stretch in its working
capital management leading to deterioration in its financial risk
profile.
Set up in 2007, as a proprietorship firm by Mr. Jayaraman, KMRM
is engaged in the processing of paddy into rice. The firm has a
milling unit in located at Dindugal (Tamil Nadu) with an
installed capacity of 5 tonnes per hour (TPH).
KMRM reported a profit after tax (PAT) of INR0.18 crore on
operating income of INR48.39 crore for fiscal 2017 against PAT of
INR0.10 crore of INR45.5 crore for fiscal 2016.
KANNAPPAN TEXTILE: Ind-Ra Migrates 'BB' Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kannappan
Textile Mill Pvt. Ltd.'s (KTMPL) 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:
-- INR35 mil Fund-based working capital limit migrated to non-
cooperating category with IND BB(ISSUER NOT COOPERATING)
rating;
-- INR18.87 mil. Term loans migrated to non-cooperating category
with IND BB(ISSUER NOT COOPERATING) rating; and
-- INR16.2 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Oct. 4, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
KTMPL (formerly Sumangala Spinning Mills Pvt Ltd) manufactures
polyester cotton yarn in Madurai, Tamil Nadu. The company is
managed by four directors, T.S.P. Kannappan, K.P. Thirumalai
Raja, K. Pushpavalli and K. Kalaiselvi.
KHUKHRAIN BUILDERS: CRISIL Reaffirms B+ Rating on INR5.56MM Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank loan
facilities of Khukhrain Builders (KB) at 'CRISIL
B+/Stable/CRISILA4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6.5 CRISIL A4 (Reaffirmed;
Removed from 'Issuer Not
Cooperating')
Overdraft 5.56 CRISIL B+/Stable (Reaffirmed;
Removed from 'Issuer Not
Cooperating')
The ratings reflect small scale of, and working capital intensity
in, KB's operations, and stretched liquidity, however liquidity
is supported by need-based support from its promoters. These
weaknesses are partially offset by the firm's established
position in the industry.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations: Intense competition keeps scale of
operations small. Further, the ability to win projects is
dependent on networth and scale of operations. The expected
revenue of INR33-38 crore over the medium term will continue to
constrain business risk profile.
* Working capital intensive operations: Operations are expected
to remain working capital intensive over the medium term-gross
current assets were 295 days as on March 31, 2017 driven by high
loan advances, earnest money deposit, security deposit, funds
against performance bank guarantee and advances to group
companies. Further, an inventory of 20-30 days is maintained and
debtors are of 60-90 days. Working capital requirement is met by
supplier credit and short-term debt from bank.
* Stretch in liquidity: Liquidity is slightly stretched as
accruals are expected to be just sufficient for servicing
repayment obligation along with high dependence on bank lines.
However, liquidity is aided by partners' need-based funding
support-unsecured loans were INR1.62 crore as on March 31, 2017.
In the medium term, reliance on partner-support will be greater
due to expected moderate accruals.
Strength
* Longstanding presence in the industry: Benefits from the
partners' 35 years of experience in the industry and established
relations with suppliers and customers should support business.
The firm is a registered Class-I contractor with Delhi Jal Board,
UP Jal Nigam, and Punjab Water Supply and Sewerage Board.
Operations have now been extended to Ranchi, Jharkhand.
Outlook: Stable
CRISIL believes KB will continue to benefit from the extensive
experience of its partners and moderate outstanding orders. The
outlook may be revised to 'Positive' if sales are higher-than-
expected and profitability is healthy. The outlook may be revised
to 'Negative' if increase in working capital requirement or
capital withdrawals weakens financial risk profile.
Established in 1979, Delhi-based KB is in the civil construction
business-especially involving laying water and sewerage lines.
Mr. Sunil Anand and his son Mr. Piyush Anand manage operations.
LIFELINE MULTI: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Lifeline Multi
Ventures Private Limited (LMVPL) a Long-Term Issuer Rating of
'IND BB-'. The Outlook is Stable. The instrument-wise rating
actions are:
-- INR350.0 mil. Term loan due on December 2025 assigned with
IND BB-/Stable rating.
KEY RATING DRIVERS
The ratings reflect a time and cost overrun risk posed by the
ongoing commercial project of LMVPL. The company is constructing
a project in Bhubaneswar that comprises retail space, a hotel, a
restaurant and office space. The company incurred INR734.72
million of the total projected cost of INR826 million until
September 2017. The company used INR252.27 million of the INR350
million term loan and INR482.45 million in unsecured loans and
promoter contribution on the construction until September 2017.
The management expects civil work to complete by end-October
2017.
The ratings also reflect a risk of revenue generation, as the
retail space and the hotel will come online in April 2018 and
October 2018, respectively.
The ratings, however, are supported by the promoters' experience
of more than two decades in the real estate industry. The ratings
are also supported by the fact that 165,000 square feet of the
project has already been leased out.
RATING SENSITIVITIES
Negative: Any time or cost overrun or a delay in project
commercialisation will be negative for ratings.
Positive: Timely project completion within the cost outlay
projected by March 2018 will be positive for ratings.
COMPANY PROFILE
LMVPL was incorporated in 1989 in Bhubaneswar, Odisha. The firm
is engaged in the construction of a commercial project on a
leasehold 2.71-acre land. It is managed by Mr Jagadish Prasad
Naik, Mrs Ratnamala Swainand and Mrs Shyam Sundar Padhy.
MAHESH DYEING: CRISIL Reaffirms B+ Rating on INR5.1MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facilities of Mahesh Dyeing and Printing Mills Private Limited
(MDPMPL) at 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.1 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility .18 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 4.72 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect a leveraged capital structure and
stretched liquidity, modest scale of operations, and exposure to
intense competition in the fragmented dyeing and processing
industry. These weaknesses are mitigated by the extensive
industry experience of the promoters and their funding support,
and moderate operating profitability.
Key Rating Drivers & Detailed Description
Weaknesses
* Leveraged capital structure: The networth was modest at INR2.3
crore and the gearing high at 2.5 times, as on March 31, 2017.
* Stretched liquidity: The modest networth, along with large
working capital requirement and term debt obligation, results in
stretched liquidity and hence highly utilised bank limit.
* Exposure to intense competition in a fragmented industry:
Revenue was modest at INR35 crore in fiscal 2017 due to intense
competition as the industry is highly fragmented with many
players.
Strengths
* Extensive industry experience of the promoters and their
funding support: The promoters have more than two decades of
experience in the dyeing and processing industry resulting in a
healthy relationship with customers and suppliers. They have also
provided funding support through unsecured loans, the balance of
which was INR2 crore as on March 31, 2017.
* Moderate operating profitability margin: The margin was 11.2%in
fiscal 2017, thus supporting the debt protection metrics.
Outlook: Stable
CRISIL believes MDPMPL will continue to benefit from the
extensive industry experience of its promoters and their funding
support. The outlook may be revised to 'Positive' if higher-than-
expected cash accrual and prudent working capital management lead
to improved liquidity. The outlook may be revised to 'Negative'
if cash accrual declines, working capital requirement increases
further, or there is large, debt-funded capital expenditure,
weakening the financial risk profile, particularly liquidity.
Incorporated in 1997 and based in Surat, Gujarat, MDPMPL is
promoted by Mr Nandkishore Rathi and his family members. The
company dyes and processes fabrics, catering mainly to textile
players in Surat.
NAGPAL EXPORTS: Ind-Ra Moves B+ Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Nagpal Exports'
(NGPE) 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:
-- INR55 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B+(ISSUER NOT COOPERATING)/IND
A4(ISSUER NOT COOPERATING) rating;
-- INR34.5 mil. Proposed fund-based working capital limit
migrated to non-cooperating category with Provisional IND
B+(ISSUER NOT COOPERATING)/Provisional IND A4(ISSUER NOT
COOPERATING) rating; and
-- INR10.5 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Nov. 1, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1995, NGPE manufactures hosiery goods for kids and
adults. The firm is also engaged in the manufacturing of various
types of yarns such as acrylic and polyester yarn. NGPE is
managed by Mr. Bahadur Chand Nagpal, Mr. Gurinder Nagpal, Mr.
Satish Nagpal and Mr. Abi Nagpal. The firm's manufacturing
facility is located in Ludhiana, Punjab.
NAHAR TEXTILES: Ind-Ra Affirms 'BB' Issuer Rating; Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Nahar Textiles
Pvt Ltd's (NTPL) Long-Term Issuer Rating at 'IND BB'. The Outlook
is Stable. The instrument-wise rating actions are:
-- INR115 mil. Fund-based limit affirmed with IND BB/Stable
rating; and
-- INR50 mil. Non-fund-based limit affirmed with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects continued small scale of operations. In
FY17, revenue was INR492 million (FY16: INR546 million) and
operating profitability was 9.4% (13.4%). The decline in revenue
was primarily due to a fall in exports and that in operating
profitability was owing to sales of some products at lower
margins. FY17 financials are provisional in nature.
The ratings also reflect an elongated working capital cycle of
163 days in FY17 (FY16: 141 days). The elongation was primarily
due to high debtor days (FY17: 88 days; FY16: 60 days).
The ratings factor in a moderate liquidity, indicated by an
average utilisation of its fund-based limits of about 61% for the
12 months ended September 2017.
The ratings, however, are supported by continued comfortable
credit metrics. In FY17, interest coverage (operating
EBITDA/gross interest expenses) was 4.9x (FY16: 4.4x) and net
financial leverage (total adjusted net debt/operating EBITDAR)
was 1.5x (1.5x). The interest coverage improved due to a fall in
interest expenses.
The ratings are also supported by the promoters' over three
decades of experience in the garment manufacturing and export
business.
RATING SENSITIVITIES
Negative: A decline in the scale of operations on a sustained
basis could be negative for the ratings.
Positive: An improvement in the scale of operations while
maintaining credit metrics and operating profitability at the
current levels could be positive for the ratings.
COMPANY PROFILE
Incorporated in 1982, NTPL manufactures and exports fabrics. The
company is managed by Ashwin Nahar and family. Its registered
office is in Mumbai.
SAKTHI VINAYAGA: CRISIL Reaffirms 'B+' Rating on INR6MM Loan
------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings at 'CRISIL B+/Stable'
on the bank loan facilities of Sakthi Vinayaga Gin and Pressing
Mills (SVG) while removing it from 'Issuer Not Cooperating '.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6 CRISIL B+/Stable (Removed
from 'Issuer Not
Cooperating;
Rating Reaffirmed)
The ratings continue to reflect the firm's modest scale of
operations with exposure to intense competition in the highly
fragmented cotton ginning industry and average financial risk
profile. These weaknesses are partially offset by the extensive
experience of the partners in the cotton ginning business.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations with exposure to intense competition
in the highly fragmented cotton ginning industry: The scale of
operations was modest with revenue of INR20.5 crore for fiscal
2017. The cotton ginning industry is highly fragmented industry
and SVG is exposed to intense competition from large as well as
small players in the region.
* Average financial risk profile: The firm has an average
financial risk profile marked by high gearing and moderate debt
protection metrics.
Strengths
* Extensive experience of the partners: The partners have an
experience of around two decades in the cotton ginning industry
and have established strong relationships with suppliers as well
as customers. CRISIL believes that SVG will continue to benefit
from the extensive experience of the partners over the medium
term.
Outlook: Stable
CRISIL believes SVG will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if the firm scales up its operations significantly and
improves its profitability. The outlook may be revised to
'Negative' if the financial risk profile deteriorates due to
higher-than-expected working capital requirements or decline in
cash accruals.
Established in 2009, SVG is a partnership firm. It gins and
presses cotton and also sells cotton lint and cotton seeds.
SHIVA TRADING: CRISIL Reaffirms B+ Rating on INR3.5MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Shiva Trading Company (STC) at 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 4 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect its modest scale of operations in
the competitive steel industry and large working capital
requirement. These weaknesses are partially offset by the
extensive experience of its proprietor.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: With revenue of INR14.57 crore in
fiscal 2017, scale remains small in the intensely competitive
steel trading segment, leading to pressure on operating
profitability.
* Working capital-intensive operations: Gross current assets were
214 days as on March 31, 2017, owing to stretched receivables and
substantial inventory.
Strength
* Extensive experience of proprietor: Presence of over two
decades in the steel trading industry has enabled the proprietor
to establish strong relationship with key stakeholders.
Outlook: Stable
CRISIL believes STC will continue to benefit over the medium term
from the extensive experience of its proprietor. The outlook may
be revised to 'Positive' if higher-than-expected growth in
revenue and profitability leads to improvement in cash accrual
and liquidity. The outlook may be changed to 'Negative' if
liquidity deteriorates due to stretched working capital cycle or
lower-than-expected cash accrual.
Established in 1991 in Chennai as a proprietorship concern by Mr
Vijay Kumar Gupta, STC trades and processes a wide range of
stainless steel coils and strips.
Net profit was INR0.37 crore on sales of INR14.56 crore in fiscal
2017, vis-a-vis INR0.04 crore and INR14.93 crore, respectively,
in fiscal 2016.
SHREE KUMARASAMY: CRISIL Reaffirms B+ Rating on INR2.4MM Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Shree Kumarasamy Poly Chem
(SKPC) while removing it from 'Issuer Not Cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.4 CRISIL B+/Stable (Rating
Reaffirmed; Removed from
'Issuer Not Cooperating')
Long Term Loan 1.72 CRISIL B+/Stable (Rating
Reaffirmed; Removed from
'Issuer Not Cooperating')
Packing Credit 1.60 CRISIL A4 (Rating Reaffirmed;
Removed from 'Issuer Not
Cooperating')
Proposed Term Loan 2.28 CRISIL B+/Stable (Rating
Reaffirmed; Removed from
'Issuer Not Cooperating')
The ratings continue to reflect its modest scale and working
capital-intensive operations, and end-user concentration in
revenue. These weaknesses are partially offset by the extensive
experience of its promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and segment concentration in
revenue: Small scale, as reflected in turnover of around INR18
crore in fiscal 2017, limits bargaining power with customers and
suppliers. Furthermore, revenue concentration in the automotive
and laminates/plywood segments exposes the firm to cyclicality in
these industries.
* Working capital-intensive operations: Gross current assets were
117 days as on March 31, 2017, due to large receivables and
sizeable inventory.
Strength
* Extensive experience of promoters: Key promoter, Mr TKA
Karthik, has experience of more than 15 years in manufacturing
cashew nut shell liquid (CNSL) and cashew friction dust (CFD),
and has developed strong relationship with customers and
suppliers.
Outlook: Stable
CRISIL believes SKPC will benefit over the medium term from its
experienced management. The outlook may be revised to 'Positive'
in case of significant ramp up in operations and operating
profitability, while improving working capital management. The
outlook may be revised to 'Negative' if large, debt-funded
capital expenditure, decline in revenue and cash accrual, or
delays in collection of receivables further weakens financial
risk profile, particularly liquidity.
Set up in 1995 as a proprietorship firm and later converted to a
partnership firm in 2011, Cuddalore (Tamil Nadu) based SKPC is
involved in manufacture of Cashew Nut Shell Liquid (CNSL),
Cardanol and Cashew Friction Dust (CFD) from cashew shells. The
products are primarily used in automobile industries for brake
linings in addition to being used in paint and plywood
industries.
Profit after tax (PAT) was INR(0.2) crore on operating income of
INR17.5 crore in fiscal 2017, against INR1.4 crore and INR16.5
crore, respectively, in fiscal 2016.
SHREE PRITHVI: Ind-Ra Moves BB+ Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has Shree Prithvi Steel
Rolling Mills Private Limited's (Prithvi) 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:
-- INR147.5 mil. Fund-based working capital limit migrated to
non-cooperating category with IND BB+(ISSUER NOT COOPERATING)
rating;
-- INR52.68 mil. Term loans migrated to non-cooperating category
with IND BB+(ISSUER NOT COOPERATING) rating;
-- INR90 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Jan. 22, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1992, Prithvi manufactures mild steel angles and
channels. Its products mainly find application in power
transmission towers and telecommunication towers. Prithvi is
currently engaged in rolling head tube and mild steel angles for
transmission line towers projects of 400kV and 765kV power
transmission lines for Rajasthan Rajya Vidyut Prasaran Nigam
Limited, Power Grid Corporation India Ltd. and UP Power
Transmission Corporation Limited.
Prithvi also carries out job work for Steel Authority of India
Limited ('IND AA-'/Negative). Its plant is located in Jaipur
Rajasthan. Prithvi is managed by Mr Jagan Nath Sharma and Mr
Sudesh Sharma.
SIDDHARTH INFRA: CRISIL Reaffirms 'B' Rating on INR6.5MM Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Siddharth Infra Power Private
Limited (SIPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5.5 CRISIL A4 (Reaffirmed)
Cash Credit 6.5 CRISIL B/Stable (Reaffirmed)
Letter of Credit 3.0 CRISIL A4 (Reaffirmed)
Standby Fund-Based
Limits 1.0 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect SIPPL's small scale of operations
and exposure to risks inherent in tender-based business, its
large working capital requirement, and subdued financial risk
profile. These weaknesses are partially offset by its promoters'
extensive experience in the electrical and instrumentation
industry and established relationships with customers and
suppliers.
Analytical Approach
CRISIL had combined the business and financial risk profiles of
SIPPL and Siddharth Industries for the previous rating exercise.
However, in fiscal 2017, SIPPL acquired Siddharth Industries.
Hence, CRISIL has now considered SIPPL's standalone business and
financial risk profiles.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations and exposure to risks inherent in
tender-based business: SIPPL's small scale of operations,
reflected in revenue of INR24.6 crore in fiscal 2017, coupled
with moderate networth restricts its ability to bid for large
contracts. CRISIL believes that SIPPL's scale of operation is
expected to remain in the range of INR25 crores to INR30 crores
over the medium term. The company is also exposed to risks
inherent in tender-based operations, which render operating
margin susceptible to cost escalation.
* Large working capital requirement: Gross current assets were at
350 days as on March 31, 2017, and ranged from 210 to 350 days in
the four fiscals through 2017, driven by long collection cycle
(receivables of 240 days as on March 31, 2017). The large working
capital requirement is on account of project-based operations,
delay in clearing bills by government agencies, and requirement
of security deposits and retention money. Prudent working capital
management while maintaining revenue remains a critical factor.
* Modest financial risk profile: The financial risk profile is
constrained by modest networth of INR5.7 crore and high total
outside liabilities to adjusted networth ratio of 3.3 times as on
March 31, 2017. Debt protection metrics were subdued, with
interest coverage ratio at 2.08 times in fiscal 2017. Liquidity
is weak because of modest cash accrual, high bank limit
utilisation, and large working capital requirement. CRISIL
believes the financial risk profile will remain subdued over the
medium term
Strength
* Extensive industry experience of the promoters and established
relationships with customers and suppliers: The promoters have
been in the electrical and instrumentation industry for 20 years,
and have established strong relationships with customers that
include Gujarat Energy Transmission Corporation Limited (GETCO),
Cadila Healthcare Ltd, and Larsen & Toubro Ltd. SIPPL has been
appointed by 3M as distributor for their electrical equipment
distribution. The promoters' experience will help the company
sustain its business risk profile.
Outlook: Stable
CRISIL believes SIPPL will continue to benefit from its
promoters' industry experience and established relationships with
customers and suppliers. The outlook may be revised to 'Positive'
i if scale of operations improve substantially while
profitability remains stable, leading to higher-than-expected
cash accrual, or infusion of capital leading to improvement in
capital structure. The outlook may be revised to 'Negative' if
liquidity deteriorates due to larger-than-expected working
capital requirement or sizeable, debt-funded capital expenditure,
or if financial risk profile is affected by fund withdrawal.
Incorporated in 2010 and promoted by Vadodara (Gujarat)-based Mr
Jagdeep Shukla and Ms Neena J Shukla, SIPPL undertakes supply and
installation of electrical equipment and cables for government
agencies (registered as 'Class AA' contractor) and private
organisations. Its daily operations are managed by Mr Jagdeep
Shukla.
SRI LAKOSHA: CRISIL Reaffirms 'B' Rating on INR3.3MM Term Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings to the bank loan facilities of Sri Lakosha Polymer
Private Limited (SLPPL) while removing them from 'Issuer Not
Cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1.5 CRISIL B/Stable (Removed from
'Issuer Not Cooperating';
Rating Reaffirmed)
Letter of Credit 19.0 CRISIL A4 (Removed from
'Issuer Not Cooperating';
Rating Reaffirmed)
Proposed Long Term 2.2 CRISIL B/Stable (Removed from
Bank Loan Facility 'Issuer Not Cooperating';
Rating Reaffirmed)
Term Loan 3.3 CRISIL B/Stable (Removed from
'Issuer Not Cooperating';
Rating Reaffirmed)
Working Capital 1.5 CRISIL B/Stable (Removed from
Demand Loan 'Issuer Not Cooperating';
Rating Reaffirmed)
The ratings continue to reflect weak financial risk profile and
exposure to volatility in traded material prices. These
weaknesses are partly offset by the experience of the promoters
in trading in polymer products.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Financial risk profile is weak
marked by interest coverage ratio of 1.6 times in fiscal 2017
while cash accrual is insufficient to meet repayment obligation.
Cash accrual was INR84 lakh against repayment obligation of about
INR1 crore in fiscal 2017.
* Exposure to volatility in traded material prices: Inventory of
30-50 days is maintained, which is not order backed.
Profitability will remain exposed to volatility in traded
material prices.
Strength
* Promoters experience in the industry: Promoters experience in
the industry for almost a decade and their need based fund
support is expected to support the business and financial risk
profile of the company.
Outlook: Stable
CRISIL believes SLPPL will continue to benefit from the industry
experience of its promoters. The outlook may be revised to
'Positive' if revenue and profitability improve, leading to an
increase in cash accrual and a better debt protection metrics.
The outlook may be revised to 'Negative' if lower than expected
revenue and profitability further weakens financial risk profile
especially liquidity.
SLPPL, promoted in 1998 by Mr S. K. Sridhar and his wife, Mrs S
Lalitha, trades in polymer products. The company imports these
products from Saudi Arabia, Kuwait, and Malaysia and sells to
traders and plastic manufacturers in Tamil Nadu. The
administrative office is in Tirupur, Tamil Nadu.
SRI VENKATA: CRISIL Reaffirms B+ Rating on INR8.0MM Cash Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Sri Venkata Srinivasa Polymers Private Limited (SVSPL) at
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.6 CRISIL A4 (Reaffirmed)
Cash Credit 1.0 CRISIL B+/Stable (Reaffirmed)
Inland/Import
Letter of Credit 2.0 CRISIL A4 (Reaffirmed)
Open Cash Credit 8.0 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect SVSPL's working capital-intensive
operations and below-average financial risk profile because of
leveraged capital structure and weak debt protection metrics.
These weaknesses are partially offset by the company's
established regional position in the packaging industry,
diversified customer base, and extensive experience of promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Working capital-intensive operations: Gross current assets were
319 days as on March 31, 2017, due to sizeable inventory of 208
days.
* Below-average financial risk profile: Networth is small,
capital structure leveraged, and debt protection metrics weak.
Strengths
* Established regional position and diversified customer base:
The Company has strong brand recall in Andhra Pradesh's north-
eastern part. Clientele is diverse, with top 10 customers
accounting for less than 35% of sales.
* Extensive experience of promoters: Presence of over two decades
in the plastic packaging segment has enabled the promoters to
establish strong relationship with suppliers and customers.
Outlook: Stable
CRISIL believes SVSPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if significant and sustained growth
in revenue, better profit margins, and improvement in working
capital cycle lead to sizeable net cash accrual and healthy debt
protection metrics. The outlook may be revised to 'Negative' if
financial risk profile weakens further due to stretched working
capital cycle, decline in revenue and profitability, or large,
debt-funded capital expenditure.
Incorporated in 1996 in Rajam, Andhra Pradesh, SVSPL manufactures
plastic packaging material. Operations are managed by the
promoters Mr. Janardhana Rao Inuganti, Mr. Rajagopal Chelikani,
and Mr. Ramakrishna Inuganti.
In fiscal 2017, profit before tax (PBT) was INR36.41 lakh on net
sales of INR21.9 crore, against a PBT of INR5.98 lakh on net
sales of INR18.7 crore in fiscal 2016.
SUDHAKARAN NAIR: Ind-Ra Moves BB Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated M/s Sudhakaran
Nair and Company Pvt. Ltd.'s (SNC) 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:
-- INR20 mil. Fund-based limits migrated to non-cooperating
category with IND BB(ISSUER NOT COOPERATING) rating;
-- INR11 mil. Term loan migrated to non-cooperating category
with IND BB(ISSUER NOT COOPERATING) rating; and
-- INR95 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Oct. 26, 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 1986 in Chennai, SNC provides plumbing and
sanitary installation, fire protection installation as well as
specialised installation services.
TECHNE INFRA: CRISIL Reaffirms B+ Rating on INR3.5MM Cash Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Techne Infra India Private Limited (TIIPL) at 'CRISIL
B+/Stable/CRISIL A4'. The ratings continue to reflect the
company's modest scale of and working capital intensive
operations, below-average financial risk profile and subdued debt
protection metrics. These weaknesses are partially offset by the
extensive experience of its promoters in the civil construction
industry and moderate unexecuted orders.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 3.5 CRISIL B+/Stable (Reaffirmed)
Analytical Approach
Unsecured loans from promoters of INR1.66 crore have been treated
as neither debt nor equity in fiscal 2017 as it is interest free
and expected to remain in business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Scale of operations is small with
net sales of INR5.97 crore in fiscal 2017. Sales were low due to
the impact of demonetisation. Revenue is expected to increase
significantly in fiscal 2018 driven by healthy outstanding orders
worth INR40 crore.
* Working capital intensive operations: Operations are expected
to remain working capital intensive over the medium term - gross
current assets were 718 days as on March 31, 2017, on account of
debtors of 535 days and inventory of 200 days.
* Below-average financial risk profile: As on March 31, 2017,
networth was small at INR2.87 crore and gearing moderately high
at 2.14 times. Debt protection metrics were also subdued with net
cash accrual to total debt at 0.06 time and interest coverage of
1.4 times for fiscal 2017.
Strengths
* Extensive experience of the promoters: Benefits from the
promoters' three decade-long experience in the industry should
support business.
* Moderate outstanding orders: Outstanding orders worth INR40
crore offers revenue visibility over medium term.
Outlook: Stable
CRISIL believes TIIPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if receivables cycle is controlled and growth in
revenue and stable profitability leads to higher cash accrual.
The outlook may be revised to 'Negative' if stretch in working
capital cycle due to delayed receivables, low cash accrual, or
any large, debt-funded capital expenditure further weakens
liquidity.
Incorporated in 2010 and promoted by Mr Dimitrius John D'Mello,
Mr Suneel Vashdev Alreja, and Mr Hemant Bidaiah Lychettira, TIIPL
is a Mumbai-based civil contractor.
In fiscal 2017, profit after tax was INR0 lakh on total sales of
INR5.97 crore against INR1 lakh and INR15.36 crore, respectively,
in fiscal 2016.
TECPRO SYSTEMS: CRISIL Reaffirms 'D' Rating on INR1.65BB Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities and commercial paper
programme of Tecpro Systems Limited (TSL; part of the Tecpro
group) continue to reflect delays by TSL in meeting its debt
obligations. NCLT has ordered the commencement of a corporate
insolvency resolution process against company on August 7, 2017.
The ratings are based on publicly available information.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1650 CRISIL D (Reaffirmed)
Cash Credit 950 CRISIL D (Reaffirmed)
Letter of credit
& Bank Guarantee 1650 CRISIL D (Reaffirmed)
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of TSL and its subsidiaries. This is
because all these entities, together referred to as the Tecpro
group, have operational and financial linkages.
Key Rating Drivers & Detailed Description
Weaknesses
* Delays in debt servicing: NCLT has ordered the commencement of
a corporate insolvency resolution process against company
* Poor financial risk profile: The company has not submitted
financials to the exchange since fiscal 2016
Strengths
* Extensive experience of the promoters: Business risk profile is
augmented by extensive experience of the promoters in the
material handling solutions business.
TSL, promoted by Mr. Ajay Kumar Bishnoi and Mr. Amul Gabrani,
provides material handling (MH) solutions on a turnkey basis for
power, cement, coal storage, steel, and other metallurgical
plants. Its projects involve designing, engineering,
manufacturing, supplying, erection, and commissioning of MH
systems. The company has its own MHE manufacturing facilities in
Bawal (Haryana) and Bhiwadi (Rajasthan). It also has design,
engineering, and marketing offices in Chennai, Gurgaon, Kolkata,
Mumbai, Secunderabad, Ahmedabad, and Bengaluru.
THANE STEELS: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Thane Steels
Private Limited's (TSPL) 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:
-- INR210 mil. Fund-based limits migrated to non-cooperating
category with IND BB(ISSUER NOT COOPERATING) rating;
-- INR29.64 mil. Term loan migrated to non-cooperating category
with IND BB(ISSUER NOT COOPERATING) rating; and
-- INR31.1 mil. Non-fund-based limits migrated to non-
cooperating category with IND A4+(ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Oct. 26, 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 1995, TSPL is engaged in manufacturing of MS
ingots and thermos-mechanically treated bars at its manufacturing
facility in Thane, Maharashtra. TSPL is operating with an annual
installed capacity of 60,000 metric tons of TMT bars.
VAIGAI LEATHER: CRISIL Assigns 'B+' Rating to INR6MM Loan
---------------------------------------------------------
CRISIL Ratings has revoked the suspension of its rating on bank
facilities of Vaigai Leather Corporation (VLC) and assigned its
'CRISIL B+/Stable' rating to these bank facilities. CRISIL had
suspended the rating vide its rating rationale dated December 29,
2015, as VAL had not provided necessary information required for
a rating review. The company has now shared the requisite
information, enabling CRISIL to assign its rating to the bank
facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing 6 CRISIL B+/Stable (Assigned;
Credit Suspension Revoked)
The rating reflects VLC's small scale of operations in a
fragmented industry and working capital-intensive operations.
These rating weaknesses are partially offset by the extensive
experience of the partners in the leather industry and moderate
financial risk profile.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations in a fragmented industry: The firm
has modest scale of operations, reflected in revenue of INR7.8
crore for fiscal 2017.
* Working capital-intensive operations: VLC has high working
capital requirement reflected in gross current assets (GCA) of
206 days as on March 31, 2017, driven by high inventory and
stretched credit period offered to its customers.
Strengths
* Industry experience of the partners in the leather industry:
The partners' have been in this industry from over 20 years,
helping them establish strong relationships with suppliers and
customers.
* Moderate financial risk profile: The firm has moderate
financial risk profile marked by low gearing and moderate debt
protection metrics.
Outlook: Stable
CRISIL believes that VLC should continue to benefit from the
experience of its partners in the leather industry. The outlook
may be revised to 'Positive' if the firm achieves considerable
increase in revenue and profitability, while maintaining its
financial risk profile. The outlook may be revised to 'Negative'
if considerable decline in accrual, inefficient working capital
management or a large debt-funded capital expenditure, weakens
the financial risk profile.
Set up in 1986 by Mr Mani and Mr. P Selvam, VLC is engaged in
manufacture of finished leather. The firm derives majority of its
revenues from the export market.
VIKAS TECHNOPLAST: Ind-Ra Affirms 'BB-' Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Vikas
Technoplast Pvt Ltd's (VTPL) Long-Term Issuer Rating at
'IND BB-'. The Outlook is Stable. The instrument-wise rating
actions are:
-- INR55 mil. (increased from INR30 mil.) Fund-based limits
affirmed with IND BB-/Stable/IND A4+ rating; and
-- INR25.2 mil. (increased from INR16.8 mil.) Term loan due on
September 2021 affirmed with IND BB-/Stable rating.
KEY RATING DRIVERS
The affirmation reflects VTPL's continued small scale of
operations and moderate credit metrics. As per FY17 provisional
financials, revenue declined to INR121 million (FY16: INR141
million) on account of reduced sales volume. Operating EBITDA
margins improved to 10.8% in FY17P (FY16: 7.9%) due to decline in
raw material prices and other overhead expenses. Consequently,
interest coverage (operating EBITDA/gross interest expenses)
improved to 1.7x in FY17P (FY16: 1.6x) and net leverage (total
debt/operating EBITDA) to 5.8x (7.4x).
The ratings also factor in the company's moderate liquidity
position with 94.2% average utilisation of working capital limits
during the 12 months ended September 2017.
However, the ratings remain supported by VTPL's founders' more
than two decades of experience in the plastic industry.
RATING SENSITIVITIES
Positive: A sustained improvement in EBITDA interest coverage
will be positive for the ratings.
Negative: Deterioration in the EBITDA interest coverage will be
negative for the ratings.
COMPANY PROFILE
Incorporated in 2013, VTPL manufactures plastic bottles, pet
jars, preform, moulds and other plastic products used for
packaging and storage purpose.
The company, with its administrative office and manufacturing
plant located in Silvassa in Dadra and Nagar Haveli, is managed
by its directors, Kannan B Naidu, Ramesh B Naidu and Kavya K
Naidu.
=========
J A P A N
=========
KOBE STEEL: Withdraws FY2017 Earnings Forecast Amid Data Scandal
----------------------------------------------------------------
Japan Today reports that crisis-hit Kobe Steel on Oct. 30 yanked
its net profit forecast for the current fiscal year, saying it
could not yet determine how much a snowballing fake data scandal
would damage its business.
The company also cancelled a planned dividend as it withdrew its
projection for a JPY35 billion net profit in the year to March
2018, says Japan Today.
It had announced the forecast before the quality data crisis
erupted several weeks ago, the report says.
"It's difficult at this moment to assess how much the improper
conduct concerning products made by our company and group
companies will impact earnings," the report quotes Kobe Steel as
saying.
According to the report, the firm has admitted falsifying
strength and quality data for a string of products shipped to
hundreds of clients, from automakers to plane manufacturers.
Japan Today relates that the crisis at a venerable company that
once employed Japan's Prime Minister Shinzo Abe has already hit
wide sections of Japanese industry, including Toyota, Nissan and
Honda which used the affected materials in their vehicles.
Also on Oct. 30, the company cut its operating-profit estimate to
JPY75 billion from an earlier 80-billion yen estimate while it
left revenue projections unchanged at JPY1.88 trillion for the
year, Japan Today relays.
Kobe Steel shares rose 2.22 percent on Oct. 30 after the Nikkei
business daily reported that major Japanese banks were preparing
billions of dollars in loans to the troubled steelmaker, Japan
Today discloses.
It made the earnings forecast announcement after markets closed,
the report adds.
Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel
Limited -- http://www.kobelco.co.jp/english/corp/index.html--
is a steel manufacturer, as well as supplier of aluminum and
copper products. Other businesses include welding consumables,
urban infrastructure and plant engineering services, and
industrial machinery. Kobe Steel has offices in New York,
Singapore, Bangkok and Beijing.
===============
M A L A Y S I A
===============
MULTI SPORTS: Bursa Malaysia Reprimands Firm, Fines 3 Directors
---------------------------------------------------------------
The Sun Daily reports that Bursa Malaysia Securities Bhd has
publicly reprimanded Multi Sports Holdings Ltd and its five
directors for breaches of the Main Market Listing Requirements.
Three of its directors were also fined a total of MYR1.66
million, the report says.
According to the report, the China-based sports shoes and apparel
manufacturer was reprimanded for failing to:
* issue FY15 and FY16 annual reports as well as quarterly
reports from the period ended June 30, 2016 until June 30,
2017 within the stipulated time frame;
* to ensure that there were at least two independent directors
in its board of directors;
* to have at least two independent directors whose principal
or only place of residence is within Malaysia; and
* make an immediate announcement of the change in the
composition of the board of directors and audit committee.
The Sun Daily relates that Bursa Malaysia said it views the
contraventions seriously as the timely and accurate disclosure of
material information and submission of financial statements are
fundamental obligations of listed companies.
"These obligations are of paramount importance in ensuring a fair
and orderly market for securities traded on Bursa Malaysia and
necessary to aid informed investment decisions."
The regulator reminded Multi Sports and its board of directors of
their responsibility to maintain appropriate standards of
corporate responsibility and accountability to shareholders and
investors, The Sun Daily adds.
Multi Sports Holdings Ltd is a Malaysia-based investment holding
company. The Company is engaged in footwear production. The
Company has five segments; TPR shoe soles, RB shoe soles, MD1
shoe soles, MD2 shoe soles and Apparels and accessories. TPR shoe
soles are a physical mix of polymers, usually rubber and plastic.
The RB shoe soles are waterproof and weatherproof. Natural and
synthetic rubbers are used in the production of RB shoe soles.
The MD1 shoe soles are lightweight, soft, flexible, elastic,
resistant to wear and tear. The main components of MD2 shoe soles
are similar to MD1 shoe soles. Apparels and accessories segment
comprise the main component is men's fashion wear and
accessories. The Company's subsidiaries include Pak Sing Shoe
Material (H.K.) Limited, Jinjiang Baixing Shoe Material Co., Ltd,
Fujian Evidoma Ltd., Fujian Qingte Investment Ltd and Quanzhou
Sente Trading Ltd.
====================
N E W Z E A L A N D
====================
TOP RETAIL: Unused NZ Gift Cards Worthless Now, Receivers Say
-------------------------------------------------------------
Rachel Clayton at Stuff.co.nz reports that over NZ$110,000 in
unused Topshop gift cards are worth nothing now, receivers of the
fashion retailer said.
It only opened two stores, but Topshop Topman New Zealand closed
in the red after three years, in September, to the tune of
NZ$4.1 million, Stuff discloses.
Although gift cards were redeemable when the stores were in
receivership, NZ$110,600 of gift cards not used were now
worthless, the report says.
"Now that the stores have closed, any unredeemed gift cards can
no longer be used for stock purchases given trading in
New Zealand has ceased," the report quotes receiver Kare
Johnstone as saying.
According to Stuff, the first report by McGrathNichol receivers
Conor McElhinney and Johnstone said Topshop owner Top Retail was
in negative equity of NZ$2.9 million when it went into
receivership in September.
TopRetail also owed NZ$1.8 million to unsecured creditors, but
there were no funds to pay them.
Mr. Johnstone said she could not name the unsecured creditors,
Stuff relays.
Stuff adds that Messrs. McElhinney and Johnstone said the main
reasons for the brand's failure were increasing competition and
the Australian stores going into receivership.
Staff had been paid NZ$95,000 in wages and holiday pay.
The Inland Revenue Department was owed NZ$55,000 in outstanding
income tax and a further NZ$1,400 in GST, the report discloses.
According to the report, TopRetail also spent NZ$5.9 million on
store furniture and fittings, which included a small amount of
pre-payments for new stores that were scheduled to open next
year.
Stuff says there were plans for Topshop New Zealand and Australia
to open online stores, but the brand went under before they could
be launched. However, Topshop United Kingdom is now selling its
stock on online store The Iconic, which is available in
New Zealand.
Conor McElhinney and Kare Johnstone of McGrathNicol were
appointed Receivers and Managers of fashion apparel retailer, Top
Retail Limited, on Sept. 7, 2017. The company trades under the
Topshop and Topman brands at two stores located in Auckland and
Wellington.
=====================
P H I L I P P I N E S
=====================
WORLD PARTNERS: Creditors Have Until Nov. 9 to File Claims
----------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) urged
creditors of the closed World Partners Bank (A Thrift Bank), Inc.
to file their claims against the bank's assets on or before
November 9, 2017. PDIC reiterated that claims filed after said
date shall be disallowed. Creditors refer to any individual or
entity with a valid claim against the assets of a closed bank and
include depositors with uninsured deposits that exceed the
maximum deposit insurance coverage (MDIC) of PHP500,000.
PDIC announced that creditors of the closed bank may file their
claims personally at the PDIC Public Assistance Center located at
the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino
St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM, except
holidays. Creditors may also file their claims through mail
addressed to the PDIC Public Assistance Department, 6th Floor,
SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City.
A sample Claim Form against the assets of the closed bank may be
downloaded from the PDIC website, www.pdic.gov.ph. PDIC, the
liquidator of the closed World Partners Bank, called on creditors
to transact only with authorized PDIC personnel.
In case claims are denied, creditors shall be notified officially
by PDIC through mail. Creditors whose claims are denied or
disallowed may file their claims with the liquidation court
within sixty (60) days from receipt of final notice of denial of
claim.
In addition, PDIC said that depositors with account balances of
more than the MDIC of PHP500,000 who have already filed claims
for the insured portion of their deposits are deemed to have
filed their claims for the uninsured portion or the amount in
excess of the MDIC.
PDIC, as Receiver of closed banks, requires personal data from
creditors to be able to process their claims and protects these
data in compliance with the Data Privacy Act of 2012.
World Partners Bank was ordered closed by the Monetary Board (MB)
of the Bangko Sentral ng Pilipinas on August 11, 2017 and as the
designated Receiver, PDIC was directed by the MB to proceed with
the takeover and liquidation of the closed bank in accordance
with Section 12(a) of Republic Act No. 3591, as amended. The
bank's Head Office is located at 74 A. Mabini St., Brgy.
Poblacion, San Pedro City, Laguna. Its four branches are located
in Meycauayan and Sta. Maria in Bulacan, San Pablo City in
Laguna, and Tanauan City in Batangas.
All requests and inquiries relating to the closed World Partners
Bank should be addressed to the PDIC Public Assistance Department
through mail at the 6th Floor, SSS Bldg., 6782 Ayala Avenue
corner V.A. Rufino St., Makati City, or through telephone numbers
(02) 841-4630 or 841-4631. Depositors and creditors outside Metro
Manila may call the PDIC Toll Free Hotline at 1-800-1-888-PDIC
(7342). Walk-in clients may also visit the PDIC Public Assistance
Center at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A.
Rufino St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM,
except holidays.
*********
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.
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
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268.
*** End of Transmission ***