/raid1/www/Hosts/bankrupt/TCRAP_Public/180216.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, February 16, 2018, Vol. 21, No. 034
Headlines
A U S T R A L I A
ASSURE NSW: Second Creditors' Meeting Slated for Feb. 23
BANTEX PTY: Second Creditors' Meeting Set for Feb. 23
GRIFFIN COAL: Miners End Six-Month Strike, Take Big Pay Cut
JDP DUO: First Creditors' Meeting Scheduled for Feb. 26
QUINTIS LTD: S&P Discontinued 'D' Corporate Credit Rating
SMART STAY: First Creditors' Meeting Slated for Feb. 23
C H I N A
NO.1 BICYCLE: Bike Sharing Firm Shut Down After Six Months
PACTERA TECHNOLOGY: S&P Cuts CCR to 'CCC+' on Weakening Liquidity
H O N G K O N G
ANWELL TECHNOLOGIES: No Further Extensions for Judicial Mgt.
I N D I A
ARCH INFRA: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
ASHOKA DEVELOPERS: CRISIL Moves B Rating to Not Cooperating
AVIGNA PROPERTIES: Ind-Ra Assigns BB+ Rating to INR200MM Loan
AWADH OILS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
BRAHMAPUTRA BIOCHEM: CRISIL Moves D Rating to Not Cooperating
CDE ASIA: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
FABMARK EXPORTS: CRISIL Moves B Rating to Not Cooperating Cat.
GIRIRAJ TRADING: CRISIL Moves B Rating to Not Cooperating Cat.
GODAVARI MEGA: CRISIL Puts B Rating to Not Cooperating Cat.
GREEN FACADE: CRISIL Assigns B+ Rating to INR1.57MM LT Loan
GSR AND KKR: CRISIL Migrates B Rating to Not Cooperating Category
GURUSHARANAM FOODS: Ind-Ra Migrates B+ Rating to Non-Cooperating
KODAI CARS: CRISIL Lowers Rating on INR10MM Cash Loan to D
KRISHNA CONTAINERS: CRISIL Moves D Rating to Not Cooperating
MALWA AUTOMOTIVES: Ind-Ra Migrates BB- Rating to Non-Cooperating
PUNEET AUTOMOBILES: Ind-Ra Migrates BB Rating to Non-Cooperating
PUNEET LAB: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
QUADRANT CABLES: CRISIL Removes 'Not Cooperating' Loan Ratings
S.P. MANI: CRISIL Moves B+ Rating to Not Cooperating Category
SAGAR INDUSTRIES: Ind-Ra Affirms 'BB-' Rating on INR200MM Loans
SANGEETH TEXTILES: Ind-Ra Lowers Long Term Issuer Rating to BB+
SILVER STAR: Ind-Ra Affirms 'B' Rating on INR100MM Loan
SPECTRUM COMPLEX: Ind-Ra Migrates BB- Rating to Non-Cooperating
SREE DAKSHA: CRISIL Lowers Rating on INR15MM Term Loan to D
SREEJITH S S: CRISIL Assigns B Rating to INR5MM Cash Loan
STYLE MARKETING: Ind-Ra Migrates BB- Rating to Non-Cooperating
YADAV SOLVEX: CRISIL Moves B Rating to Not Cooperating Category
J A P A N
TAKATA CORP: 13 Automakers to Provide $130MM for U.S. Settlement
TOSHIBA CORP: Appoints Nobuaki Kurumatani as CEO and Chairman
S I N G A P O R E
KITCHEN CULTURE: Net Loss Widens to SGD1.69MM in H1 ended Dec. 31
- - - - -
=================
A U S T R A L I A
=================
ASSURE NSW: Second Creditors' Meeting Slated for Feb. 23
--------------------------------------------------------
A second meeting of creditors in the proceedings of Assure (NSW)
Pty Limited has been set for Feb. 23, 2018, at 11:00 a.m. at
Suite 1, Level 15, 9 Castlereagh Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 22, 2018, at 4:00 p.m.
Simon Cathro of Worrells Solvency & Forensic was appointed as
administrator of Assure (NSW) on Jan. 18, 2018.
BANTEX PTY: Second Creditors' Meeting Set for Feb. 23
-----------------------------------------------------
A second meeting of creditors in the proceedings of Bantex Pty
Ltd has been set for Feb. 23, 2018, at 2:00 p.m. at Rydges
Parramatta, 116-118 James Ruse Drive, in Rosehill, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 22, 2018, at 4:00 p.m.
Riad Tayeh and Suelen McCallum of de Vries Tayeh were appointed
as administrators of Bantex Pty on Dec. 27, 2017.
GRIFFIN COAL: Miners End Six-Month Strike, Take Big Pay Cut
-----------------------------------------------------------
Australian Mining reports that the Australian Manufacturing
Workers Union (AMWU) has ended a six-month dispute with the Fair
Work Commission (FWC) over pay for miners at Griffin Coal's mine
in Collie, Western Australia.
Twenty-nine of 30 maintenance workers from the AMWU agreed to
accept a new enterprise agreement with Griffin Coal, taking a
blow to their pay packets in exchange for family-friendly rosters
and other entitlements, Australian Mining relates citing an AAP
report.
It represents the end of the longest period of industrial action
ever taken within the WA coal mining industry, the report says.
According to Australian Mining, wages returned to the FWC's 2010
Black Coal Mining Industry award rates when the mine started to
hit financial trouble in mid-2016 - production staff and
maintenance staff saw pay cuts of over 35 per cent and 40 per
cent, respectively.
Australian Mining relates that the beleaguered miner even had to
be propped up by its Indian holding company Lanco Infratech,
which itself went into receivership last May, initiating
insolvency proceedings through the Reserve Bank of India.
The report says AMWU State Secretary Steve McCartney criticised
the Fair Work Commission's handling of the situation, but was
"prepared to cop" the new pay given the other benefits and roster
changes.
"Despite the pressures of foreign banks, a massive 46 per cent
pay cut, million dollar international consultants and the broken
Fair Work Commission, the workers and the broader Collie
community have stood together and won, the result a testament to
their resolve," Australian Mining quotes Mr. McCartney as saying.
The AMWU members involved in the strike were expected to return
to work Feb. 13, adds Australian Mining.
Based in Australia, The Griffin Coal Mining Company Pty Ltd --
http://www.griffincoal.com.au/-- is engaged in coal mining and
processing. Griffin Coal operates major mines in the Collie
area, approximately 220 kilometers south east of Perth. The
Company is producing more than three million tons of coal per
year. Griffin Coal has operations at Ewington Mine, Muja Mine
and Buckingham Mine.
JDP DUO: First Creditors' Meeting Scheduled for Feb. 26
-------------------------------------------------------
A first meeting of the creditors in the proceedings of JDP DUO
Pty Ltd, JDP HP5 Pty Ltd, and JDP ROC Pty Ltd, will be held at
the offices of PKF, Level 8, 1 O'Connell Street, in Sydney, NSW,
on Feb. 26, 2018, at 11:00 a.m.
Geoffrey Trent Hancock of PKF was appointed as administrator of
JDP DUO on Feb. 14, 2018.
QUINTIS LTD: S&P Discontinued 'D' Corporate Credit Rating
---------------------------------------------------------
S&P Global Ratings discontinued its 'D' rating on Quintis Ltd.,
an Australian sandalwood plantation company. On Sept. 1, 2017,
S&P lowered the rating on Quintis to 'D' after the company had
missed its interest payment on its US$250 million notes in August
2017. Quintis appointed receivers and administrators in late
January 2018.
SMART STAY: First Creditors' Meeting Slated for Feb. 23
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Smart Stay
Villages Pty Ltd will be held at United Services Club Queensland,
183 Wickham Terrace, in Spring Hill, Queensland, on Feb. 23,
2018, at 11:00 a.m.
Simon Cathro of Worrells Solvency & Forensic Accountants was
appointed as administrator of Smart Stay on Jan. 18, 2018.
=========
C H I N A
=========
NO.1 BICYCLE: Bike Sharing Firm Shut Down After Six Months
----------------------------------------------------------
Reuters reports that Chinese bike sharing firm No.1 Bicycle said
on Feb. 7 that it will halt service immediately after operating
for just six months.
According to the report, the swift demise of the Beijing-based
firm is the latest casualty in China's bike sharing bubble that
is seeing increasing numbers of firms going under, leaving
consumers without the means to retrieve their deposits.
Reuters says the country has seen a wave of shared bicycles hit
its city streets over the last year causing waste concerns as
mountains of misshapen bikes pile up leaving eyesores across
China.
In November, the chief executive of Bluegogo said in a public
letter posted online he had "made mistakes" and the firm was
winding up, the report recalls. He apologised to investors,
partners and 20 million registered users of the company's 600,000
bikes.
Reuters relates that No. 1 Bicycle said on its website that it
was shutting due to changes in its operating direction and did
not say how it will deal with the left over bikes.
It said it would be refunding deposits up until Feb. 12, Reuters
notes.
The firm has registered capital of CNY5 million (SGD1.05
million), according to official filings cited by Reuters.
PACTERA TECHNOLOGY: S&P Cuts CCR to 'CCC+' on Weakening Liquidity
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on Pactera Technology International Ltd. to 'CCC+' from 'B'. The
outlook is negative. S&P also lowered its long-term issue rating
on the company's guaranteed senior unsecured notes to 'CCC+' from
'B'. Pactera is a China-based information technology (IT)
consulting services provider.
S&P downgraded Pactera because it expects its debt leverage to
remain high and cash flows to be deficit over the next 12 months.
In addition, the company will need to raise new funds to meet its
upcoming debt obligations.
Increasing working capital outflows have weakened Pactera's
liquidity while declining profitability has pushed up its
leverage. The company's reported operating cash outflows expanded
to US$82.7 million for the nine months ended September 2017, from
US$56.4 million in 2016. Heightened competition in China's IT
consulting services market caused Pactera's margins to decline
and its working capital outflows to increase.
S&P said, "We forecast the company's adjusted EBITDA margin to
drop to 4.5%-5.0% in 2017-2019, from 7.0% in 2016. This
translates to a decline in estimated EBITDA by around 30% in 2017
and minimal EBITDA growth in 2018-2019. The lower profitability
is mainly a result of lower gross margin stemming from labor cost
inflation. We expect the company's debt-to-EBITDA ratio to weaken
to more than 7.0x in 2017-2019, from 6.0x in 2016. We include the
shareholder loan from HNA Group in our debt calculation."
The lengthening of the revenue collection period is one of the
main causes for Pactera's discretionary cash flow deficit. The
company's account receivable days outstanding increased to 150
days as of Sept. 30, 2017, from 128-130 days in 2014-2016. This
signals risks in continued working capital investments to support
revenue growth. The elongated collection period along with the
pressure on margin makes it difficult for the company to reverse
its negative cash flow trend.
S&P said, "We consider Pactera to be a moderately strategic
subsidiary of the HNA Group. We have revised downward our
assessment of HNA Group's group credit profile to 'ccc+' from 'b'
mainly to reflect the group's deteriorating liquidity position.
That said, the rating on Pactera reflects the company's own
stand-alone credit profile of 'ccc+' because, in our view, HNA
Group is unlikely to provide any additional financial support to
Pactera in the event of the company's financial distress. On the
other hand, we believe that HNA group is unlikely to negatively
intervene in Pactera, given the company's small scale."
The negative outlook reflects Pactera's liquidity and refinancing
risks over the next 12 months. These risks stem from the
company's weak performance and high debt maturity, and a negative
impact of the parent facing liquidity pressure due to uncertain
access to capital markets.
S&P said, "The outlook also reflects our view that Pactera's
ability to generate sufficient cash flows to meet its debt
amortization and interest payments depends on favorable business
and financial conditions in the next 12 months. We note that
Pactera has limited cash on hand. Any operational
underperformance would put the company at risk of nonpayment."
S&P could downgrade Pactera if: (1) its liquidity deteriorates,
and it takes no immediate actions to identify new funding
alternatives; or (2) its profitability or working capital flows
continue to deteriorate due to stiff market competition.
S&P could revise the outlook to stable if Pactera stabilizes its
liquidity position, such that it has more than sufficient
resources to meet its short-term debt obligations. This could
happen if the company identifies new funding alternatives,
improves its profitability, or enhances its working capital cash
flows.
================
H O N G K O N G
================
ANWELL TECHNOLOGIES: No Further Extensions for Judicial Mgt.
------------------------------------------------------------
Lynette Khoo at The Business Times reports that the judicial
managers of Anwell Technologies announced that there will not be
any further extension of the judicial management order as they
have exhausted all means to try to achieve the objectives set
out.
They will hence apply to the Singapore High Court for their
release and the discharge of the order, and concurrently for the
winding up of the company, the report says.
According to the report, the listed company's China subsidiary
Dongguan Anwell Digital Machinery, as well as Dongguan Anwell's
officers, had been found guilty of fraud and sentenced by the
Chinese courts.
The officers include Dongguan Anwell's executive chairman and CEO
Fan Kai Leung, its executive director and chief financial officer
Wu Wai Kin, and its group financial controller Kwong Chi Kit
Victor, the report discloses.
The Business Times relates that Judicial managers from RSM
Corporate Advisory said last November that Dongguan Anwell was
fined CNY200 million (SGD41 million), and has been ordered to
repay the Economic & Trade Commission of Guangdong CNY150
million, the Dongguan Finance Bureau CNY150 million and Dongguan
Trust Co Ltd CNY700 million.
It added that Fan has been sentenced to life imprisonment and a
seizure of his personal assets of up to CNY5 million; Wu was
sentenced to 20 years' imprisonment and a fine of CNY4 million;
and Kwong was sentenced to 19 years' imprisonment and a fine of
CNY4 million, the report discloses.
Other officers also received fines and prison sentences. The
Dongguan Anwell officers have filed an appeal. Investigations by
the Chinese public security officials dated as far back as 2013,
the Business Times notes.
Headquartered in Hong Kong, Anwell Technologies Limited
manufacturers thin film solar modules and optical media with its
proprietary technologies and in-house designed equipment. The
Company also designs, produces and sells industrial equipments
for manufacture of solar modules, optical media and OLED (Organic
Light Emitting Diode) panels.
=========
I N D I A
=========
ARCH INFRA: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Arch Infra
Properties Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The ratings
will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is as follows:
-- INR250 mil. Long-term loan due on December 2018 migrated to
Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 5, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Arch Infra Properties was incorporated in 2008 for the
development of a residential project Starwood in Chinar Park,
Kolkata. Mr. Jugraj Kothari, Prashant Vashistha and Harish Kumar
Giria are the directors of the company.
ASHOKA DEVELOPERS: CRISIL Moves B Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has been consistently following up with Ashoka Developers
and Builders Limited (Ashoka) for obtaining information through
letters and emails dated December 18, 2017 and January 09, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .5 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Proposed Bank 1.5 CRISIL A4 (Issuer Not
Guarantee Cooperating; Rating Migrated)
Proposed Overdraft 4.5 CRISIL B/Stable (Issuer Not
Facility Cooperating; Rating Migrated)
Secured Overdraft 18.0 CRISIL B/Stable (Issuer Not
Facility Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Ashoka Developers and Builders
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Ashoka Developers and Builders Limited
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Ashoka Developers and Builders Limited to CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Incorporated in 1989, and promoted by Mr. Jaiveer Reddy and his
family, Ashoka develops residential and commercial property in
Hyderabad. Mr. Reddy manages the company's day-to-day operations.
AVIGNA PROPERTIES: Ind-Ra Assigns BB+ Rating to INR200MM Loan
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M/s Avigna
Properties Private Limited (APPL) a Long-Term Issuer Rating of
'IND BB+'. The Outlook is Stable. The instrument-wise rating
action is given below:
-- INR200 mil. Term loan due on March 2021 assigned with IND
BB+/Stable ratings.
KEY RATING DRIVERS
The ratings reflect the funding, execution and saleability risks
associated with APPL's ongoing project Avigna Celeste.
It is a villa and apartment project with a total project cost of
INR2,539.3 million (including interest on debts) which is being
funded by a debt of INR700 million, promoter contribution of
INR391.6 million and customer advance of INR1,267.7million. APPL
has availed the debt and the promoters have infused their entire
share in the project. There could be cash flow mismatches, as
customer advances are the major source of funding.
The project is scheduled to be completed by March 2021. By end-
September 2017, the company achieved about 75% project completion
and incurred INR1,362.70 million of the total project cost.
APPL has booked 36.34% of the units (245 units out of 549) as of
September 2017, and collected 82% of the total amount due from
the buyers (INR1,327.40 million).
The ratings are supported by the company's promoters' experience
of over a decade of executing real estate projects. They have so
far implemented projects with a total saleable area of more than
100,000 sf.
RATING SENSITIVITIES
Positive: Successful completion of the project and sale of units
as planned, leading to strong visibility of cash flows could lead
to a positive rating action.
Negative: Delays or weak sales in the project leading to less-
than-expected cash inflow and cost overruns in the project
leading to a shortfall in cash flows required for debt servicing
could be negative for the ratings.
COMPANY PROFILE
Incorporated in 2013, APPL undertakes real estate projects. Its
current project consists of 182 apartments and 367 villas and is
spread over 9,86,388sf.
AWADH OILS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Awadh Oils Pvt
Ltd's (AOPL) 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 action is given below:
-- INR75 mil. Fund-based limits migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) Ratings.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed
January 24, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
AOPL was incorporated in 1997 by Mr. Rajendra Ji Goyal and Vipin
Ji Goyal. The company primarily manufactures mustard oil and
mustard cake. AOPL has an annual installed capacity of 5,400mt
for edible oil and 10,000mt for cake.
AOPL is also engaged in the trading of rice bran oil, mustard oil
and other edible oils. The company caters to the markets in
Chattisgarh, Orissa, Assam, Bihar, West Bengal, Uttar Pradesh and
other north-eastern regions of the country and sells its products
under the brand names Agri Drop and Active Heart.
BRAHMAPUTRA BIOCHEM: CRISIL Moves D Rating to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has been consistently following up with
Brahmaputra Biochem Private Limited (BBPL) for obtaining
information through letters and emails dated December 22,2017 and
January 9, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 17.91 CRISIL D (Issuer Not
Cooperating; Rating
Migrated)
Proposed Long Term 3.90 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating
Migrated)
Proposed Term Loan 20.00 CRISIL D (Issuer Not
Cooperating; Rating
Migrated)
Term Loan 58.20 Cooperating; Rating
Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Brahmaputra Biochem Private
Limited which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Brahmaputra Biochem Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Brahmaputra Biochem Private Limited to 'CRISIL D
Issuer not cooperating'.
Incorporated in August 2010 by Mr Jagmohan Singh Arora, Mr
Kuljeet Singh Arora, Mr Hari Singh Arora, Mr Avinash Deewan and
Mr Mrigaraj Das, BBPL manufactures grain-based extra neutral
alcohol (ENA). The company has set up a plant in Guwahati, with a
capacity to manufacture 60,000 litres of ENA per day. It also has
a 2 MW cogeneration power plant and a CO2 recovery plant, with
capacity of 40 MT per day. The project was commissioned and
commercial operations started in the first quarter of fiscal
2017.
CDE ASIA: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated CDE Asia
Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are as follows:
-- INR14.3 mil. Term loan due on August 2021 migrated to Non-
Cooperating Category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR140 mil. Fund-based working capital facilities migrated to
Non-Cooperating Category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) ratings;
-- INR11 mil. Non-fund-based limits (capex buyers credit)
migrated to Non-Cooperating Category with IND BB (ISSUER NOT
COOPERATING) rating; and
-- INR71.5 mil. Non-fund-based limits (bank guarantee and loan
equivalent risk) migrated to Non-Cooperating Category with
IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 19, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2007, CDE Asia is jointly promoted by the CDE
Group and Manish Bhartia of Kolkata. The company provides fixed
and mobile mineral washing equipment for sand, iron ore and
limestone, and waste recycling. Since inception, CDE Asia has
successfully completed over 200 installations. It has a
manufacturing facility located in Dhulagarh, Howrah and a
corporate office in Rajarhat, Kolkata.
CDE Asia's parent, CDE Global Investments is the holding company
of the CDE Group.
The group's flagship company CDE Global, set up in 1992, is
engaged in the designing, production, and sale of mobile washing
equipment for iron ore, coal, and sand washing. The group has a
presence in the Middle East, Asia, Europe and Brazil.
FABMARK EXPORTS: CRISIL Moves B Rating to Not Cooperating Cat.
--------------------------------------------------------------
CRISIL Ratings has been consistently following up with Fabmark
Exports (Fabmark) for obtaining information through letters and
emails dated December 20, 2017 and January 12, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase 3.5 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit .5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Export Packing 3.5 CRISIL B/Stable (Issuer Not
Credit Cooperating; Rating Migrated)
Proposed Long Term 3.0 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Fabmark Exports which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Fabmark Exports is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Fabmark Exports to 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Fabmark was set up in 2002 by proprietor, Mr Rajan Gupta. The
firm manufactures and exports readymade garments and has its
facility at Ludhiana.
GIRIRAJ TRADING: CRISIL Moves B Rating to Not Cooperating Cat.
--------------------------------------------------------------
CRISIL has been consistently following up with Giriraj Trading
Co. (GTC) for obtaining information through letters and emails
dated December 27, 2017 and January 9, 2018 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 5.45 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 1.55 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Giriraj Trading Co. which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Giriraj Trading Co. is consistent with 'Scenario 2' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BBB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Giriraj Trading Co. to 'CRISIL B/Stable Issuer not
cooperating'.
Established in 1996 in Mumbai as a proprietorship firm by Mr.
Girish Shah, GTC trades in chemical additives such as calcium
carbonate, fillers, lead, and PE-wax. Operations are managed by
Mr. Girish Shah and his son, Mr. Padmanabh Shah. The firm has
warehouses in Delhi, Vadodara, and Mumbai.
GODAVARI MEGA: CRISIL Puts B Rating to Not Cooperating Cat.
-----------------------------------------------------------
CRISIL Ratings has been consistently following up with Godavari
Mega Aqua Food Park Private Limited (GMAFPPL) for obtaining
information through letters and emails dated December 26, 2017
and January 9, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Working 9.71 CRISIL B/Stable/Issuer Not
Capital Facility Cooperating
Term Loan 45.29 CRISIL B/Stable/Issuer Not
Cooperating
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Godavari Mega Aqua Food Park
Private Limited which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on Godavari Mega Aqua Food Park
Private Limited is consistent with 'Scenario 2' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BBB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Godavari Mega Aqua Food Park Private Limited to
'CRISIL B/Stable Issuer not cooperating'.
GMAFPPL is a special purpose vehicle promoted by a cluster of
nine companies for setting up a mega food park in West Godavari
district of Andhra Pradesh. The food park will have a cold
storage facility and a processing facility for shrimp, fish,
prawns, and crabs.
GREEN FACADE: CRISIL Assigns B+ Rating to INR1.57MM LT Loan
-----------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Green Facade Solutions Private Limited (GFSPL) and
assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the
facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6.43 CRISIL A4 (Assigned;
Suspension Revoked)
Cash Credit 1.00 CRISIL B+/Stable (Assigned;
Suspension Revoked)
Proposed Long Term 1.57 CRISIL B+/Stable (Assigned;
Bank Loan Facility Suspension Revoked)
CRISIL had suspended the ratings on December 13, 2016, on account
of non-cooperation by GFSPL with CRISIL's efforts to undertake a
review of the ratings. The company has now shared the requisite
information, enabling CRISIL to assign its ratings.
The ratings reflect the company's modest scale of operations,
susceptibility of its operating profitability to volatility in
prices of raw materials, and large working capital requirement.
These weaknesses are partially offset by the extensive experience
of the promoters in the facade engineering segment, and its above
average financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the facade engineering industry:
GFSPL's small scale is reflected in revenue of Rs 19.9 crore in
fiscal 2017, despite being operational since 2010. The small
scale exposes it to competition, and limits bargaining power with
customers.
* Susceptibility of operating profitability to volatility in raw
materials prices: Raw material cost accounted for 66% of
operating income for fiscal 2017 and around 70% of the cost
structure for the past few years, rendering operating
profitability susceptible to changes in the price of aluminum,
the key raw material. Volatility in aluminum prices and long
tenure of projects may directly impact operating profitability.
* Large working capital requirement: Gross current assets were at
227 days as on March 31, 2017, driven by retention money and
margin money on bank guarantees. The company raises bills on
milestone basis, and has to fund work executed till billing. It
extends credit of 25-30 days post raising of bill. However, there
are delays in receipt.
Strength
* Extensive experience of the promoters in the facade engineering
industry: Mr Rai Singh set up GFSPL in 2009 and the company
commenced operations in fiscal 2011. Before establishing the
entity, the promoter was in the business through another entity
and has experience of more than 15 years in the facade
engineering industry. The promoters' experience and project
execution capability have enabled the company to create strong
relationships with prominent customers.
* Above average financial risk profile: Gearing was healthy at
0.53 time as on March 31, 2017, while debt protection metrics
were comfortable, with interest coverage and net cash accrual to
total debt ratios at 3.5 times and 0.42 time, respectively, for
fiscal 2017.
Outlook: Stable
CRISIL believes GFSPL will continue to benefit from its
promoters' industry experience. The outlook may be revised to
'Positive' if revenue and profitability increase and working
capital cycle improves. The outlook may be revised to 'Negative'
if revenue and profitability are lower than expected, or if the
company undertakes sizeable, debt-funded capital expenditure, or
if working capital cycle lengthens, weakening financial risk
profile.
GFSPL, based in New Delhi, was established in 2010 by Mr Rai
Singh and Ms Anju Singh. The company commenced operations in
fiscal 2011. GFSPL is engaged in engineering and installation of
aluminium and glass doors and windows, cladding and facades.
GSR AND KKR: CRISIL Migrates B Rating to Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings has been consistently following up with GSR and
KKR Educational Society (GSR) for obtaining information through
letters and emails dated December 20, 2017 and January 9, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 6 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GSR and KKR Educational
Society which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on GSR and KKR Educational Society is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of GSR and KKR Educational Society to 'CRISIL B/Stable
Issuer not cooperating'.
GSR located in Andhra Pradesh (AP), was established in 2007 under
the Society's Registration Act, 1861. The society operates an
education institute 'KKR & KSR Institute of Technology &
Sciences' in Vinjanampadu near Guntur in Andhra Pradesh. The
college offers undergraduate and post graduate courses in
engineering and business management.
GURUSHARANAM FOODS: Ind-Ra Migrates B+ Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Gurusharanam
Foods' 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 as follows:
-- INR62.5 mil. Fund-based working capital limit migrated to
Non-Cooperating Category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR0.14 mil. Non-fund-based working capital migrated to Non-
Cooperating Category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 6, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established on April 1, 2008 in Taraori (Karnal, Haryana),
Gurusharanam is a partnership firm engaged in the business of
rice milling. The total annual installed processing capacity of
its plant is 72,000 quintals of paddy. The firm uses paddy as raw
material and basmati rice is its final product.
KODAI CARS: CRISIL Lowers Rating on INR10MM Cash Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities
of Kodai Cars Private Limited (KCPL) to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 10 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The downgrade reflects delay in servicing debt due to stretched
liquidity. The ratings reflect KCPL's susceptibility to intense
competition and weak financial risk profile because stretched
liquidity. These weaknesses are partially offset by the extensive
experience of its promoters in the automotive dealership industry
and established relationship with principal, Mahindra and
Mahindra Ltd (M&M; rated 'CRISIL AAA/Stable/CRISIL A1+').
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: The financial risk profile is weak
due to its leveraged capital structure and weak liquidity. KCPL's
liquidity is hampered due to stretched receivable cycle towards
its corporate clients leading to delay in servicing debt
obligation.
* Exposure to intense competition: Growth in KCPL's revenue and
operating profitability is directly linked to the performance of
its principal. Also, the auto dealership segment is intensely
competitive, which limits bargaining power with principals.
Strength
* Extensive experience of promoters: Presence of over two decades
in the automotive dealership industry has enabled the promoters
to establish strong relationship with principal, M&M.
Incorporated in 2007 in Tamil Nadu and promoted by Mr. Jayakumar
and his wife, Ms. Sunita Jayakumar, KCPL is an authorised dealer
for M&M's passenger cars.
KRISHNA CONTAINERS: CRISIL Moves D Rating to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has been consistently following up with Krishna
Containers (KC) for obtaining information through letters and
emails dated October 16, 2017 and January 5, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 9.3 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
Letter of Credit 37.7 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Krishna Containers, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Krishna Containers is consistent with 'Scenario 1' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Krishna Containers to CRISIL D/CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
KC, established in 1999, is promoted by Mr Dinesh Arora and his
family, who have been in the business of oil refining and palm
oil trading for over two decades. It is based in Kanpur, Uttar
Pradesh. The firm trades in crude palm oil (CPO) on a high-seas
sale basis. It imports CPO from Malaysia and sells in the
domestic market, mainly to refineries based in Uttar Pradesh and
Punjab. It also trades in CPO in the domestic market and
manufctures corrugated boxes.
MALWA AUTOMOTIVES: Ind-Ra Migrates BB- Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Malwa
Automotives Private Limited's (MAPL) 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 action is given
below:
-- INR130 mil. Fund-based working capital limit migrated to Non-
Cooperating Category with IND BB- (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) ratings.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 24, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
MAPL was incorporated in September 2012 by Mr. Bal Krishan
Sharma, Ms. Kamlesh Sharma, Mr. Chander Mohan Sharma and Ms.
Dimple Sharma. The company is an authorized dealer of Jaguar Land
Rover India Limited since September 2014. MAPL commenced
operations in 2014 and has a showroom/workshop/go down at GT
Karnal Road, Haryana.
PUNEET AUTOMOBILES: Ind-Ra Migrates BB Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Puneet
Automobiles Private Limited's (PAPL) 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 given below:
-- INR470 mil. Fund-based working capital limit's ratings are
migrated to Non-Cooperating Category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) ratings; and
-- INR31.53 mil. Term loan due on September 2020 has rating
migrated to Non-Cooperating Category with IND BB (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 19, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
PAPL was incorporated in 2002 by Prabhat Mishra, Harish Mishra
and Subash Mishra. PAPL is an authorized 3S (sales, service and
spare parts) dealer of Tata Motors Limited. The company operates
out of Varanasi.
PUNEET LAB: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Puneet
Laboratories Private Limited's (PLPL) 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 as follows:
-- INR60.96 mil. Long-term loans migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR50.0 mil. Fund-based facilities migrated to Non-
Cooperating Category with IND B+ (ISSUER NOT
COOPERATING)/IND
A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 23, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
PLPL was incorporated in Mumbai in 1986 by Mr. Lalit Raizada. The
company provides pharmaceutical solutions, from the concept stage
to the final product, to pharmaceutical manufacturers such as
Zydus Cadila Healthcare Private Limited, Sanofi Aventis and Micro
Labs Limited. The company initially engaged in the trading and
contract manufacturing of pharmaceutical active pharmaceutical
ingredients and intermediates. It later diversified into the
finished formulations business in the Indian and overseas
markets. Ms. Sunila Raizada, Ms. Priyanka Raizada and Mr. Puneet
Raizada, the family members of Mr. Lalit Raizada, manage PLPL's
operations.
QUADRANT CABLES: CRISIL Removes 'Not Cooperating' Loan Ratings
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Quadrant Cables Private
Limited (QCPL) to 'CRISIL B/Stable/Issuer Not Cooperating'.
However, the management has subsequently started sharing
requisite information, necessary for carrying out comprehensive
review of the rating. Consequently, CRISIL is migrating the
rating on bank facilities of QCPL from 'CRISIL B/Stable/Issuer
Not Cooperating to 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash 5 CRISIL B/Stable (Migrated from
Credit Limit 'CRISIL B/Stable' Issuer Not
Cooperating)
Term Loan 8 CRISIL B/Stable (Migrated from
'CRISIL B/Stable' Issuer Not
Cooperating)
The rating continues to reflect QCPL's start-up phase of
operations and lack of orders in hand, exposure to risks related
to implementation and stabilisation of operations and to flow of
orders from Indian Railways, and weak financial risk profile
because of poor debt protection metrics. These weaknesses are
partially offset by extensive experience of the promoters in the
electrical equipment industry.
Till December 2017 in fiscal 2018, the company had no operations.
It was expected to book revenue of Rs 15-16 crore by fiscal 2017,
but due to delay in setting up infrastructure, it had no order
till the third quarter of fiscal 2018. CRISIL believes the
company's business risk profile will remain constrained because
of its nascent stage of operations.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to project related risk: The company completed
infrastructure and installation of machinery by the end of fiscal
2017. However, it has no order in hand, which will constrain its
business risk profile in the near term.
* Below-average financial risk profile: The financial risk
profile is constrained by weak debt protection metrics, indicated
by net cash accrual to adjusted debt ratio of 0.01 time and
interest coverage of 0.51 time in fiscal 2017. In the absence of
revenue, debt protection metrics will remain weak over the medium
term.
Strength
* Extensive experience of the promoters: The Randhawa, Sandhu,
and Abrol families have been in the electrical equipment industry
for more than three decades. Their resourcefulness has helped
QCPL attain most project-related approvals, and will support the
company's operations.
Outlook: Stable
CRISIL believes QCPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if the company starts receiving orders and executes
them without any significant time and cost overrun, and achieves
more-than expected capacity utilisation. The outlook may be
revised to 'Negative' if there are delays in project
implementation resulting in delay in cash accrual.
QCPL was incorporated in September 2015 by Mr A S Randhawa, Mr
Mohit Vohra, Mr Rajbir Singh Randhawa, Mr E S Sandhu, Mr R S
Sandhu, Mr Vivek Abrol, Mr Vishesh Abrol, and Mr Amit Dhawan. The
company is setting up a unit for manufacturing electron beam
cables (copper cable) in Mohali (Punjab).
S.P. MANI: CRISIL Moves B+ Rating to Not Cooperating Category
-------------------------------------------------------------
CRISIL Ratings has been consistently following up with S.P. Mani
and Mohan Dairy India Private Limited (SP Mani) for obtaining
information through letters and emails dated December 20, 2017
and January 4, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Term Loan 30 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of S.P. Mani and Mohan Dairy
India Private Limited, which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on S.P. Mani and Mohan Dairy India
Private Limited is consistent with 'Scenario 2' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BBB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, 'CRISIL has migrated the rating on bank
facilities of S.P. Mani and Mohan Dairy India Private Limited to
CRISIL B+/Stable Issuer not cooperating'
SP Mani, incorporated in 2011, is promoted by Mr. S P Loganathan
and Mr. R Mohanasundaram. The company is setting up a milk
processing unit in Erode.
SAGAR INDUSTRIES: Ind-Ra Affirms 'BB-' Rating on INR200MM Loans
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sagar Industries
& Distilleries Private Limited's (Sagar) Long-Term Issuer Rating
at 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are given below:
-- Rating on INR6.28 mil. long-term loans due on November 2017
are withdrawn, loans repaid in full;
-- INR200 mil. (increased from INR150 mil.) fund-based
facilities has IND BB-/Stable rating affirmed; and
-- INR90 mil. (reduced from INR160 mil.) non-fund-based
facilities has IND A4+ rating affirmed.
KEY RATING DRIVERS
The affirmation reflects Sagar's low revenue because of a small
scale of operations, and weak margins and credit metrics due to
the seasonal nature of key raw material. Revenue fell to INR386
million in FY17 (FY16: INR641 million) due to a low production
volume and hence sales because of a shortage of molasses and
water supply in the absence of sufficient rainfall. Interest
coverage (operating EBITDA/gross interest expense) fell to 2.4x
in FY17 (FY16: 3.3x) on account of a decline in operating EBITDA
and net financial leverage (adjusted net debt/operating EBITDA)
increased to 13.7x in FY17 (FY16: 11.6x) due to an increase in
debt. EBITDA margins fluctuated between 6%-10.9% during FY14-FY17
due to volatile raw material prices as the main raw material is a
seasonal product.
The ratings, however, are supported by the company's moderate
liquidity position, with the fund-based facilities being utilized
at an average of 81.5% over the 12 months ended December 2017.
The ratings are also supported by over two decades of experience
of the company's founders in running a portable and non-portable
alcohol business.
RATING SENSITIVITIES
Positive: Substantial growth in the top line profitability
leading to a sustained improvement in the overall credit metrics
would lead to a positive rating action.
Negative: Any decline the profitability resulting in sustained
deterioration in the overall credit metrics would lead to a
negative rating action.
COMPANY PROFILE
Incorporated in 1999, Sagar manufactures portable and non-
portable alcohol at its facility in Nashik, Maharashtra. The
company has a total installed capacity of 10 million litres per
day and the capacity utilization is around 70% due to the
shortage of molasses.
SANGEETH TEXTILES: Ind-Ra Lowers Long Term Issuer Rating to BB+
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sangeeth
Textiles Private Limited's (STPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB- (ISSUER NOT CO-OPERATING). The Outlook is
Stable.
The instrument-wise rating actions are as follows:
-- INR170.04 mil. (increased from INR158.7 mil.) Term loan due
on March 2022 downgraded to IND BB+/Stable rating;
-- INR300.0 mil. Fund-based working capital limits downgraded
to IND BB+/Stable/IND A4+ rating; and
-- INR100.0 mil. Non-fund-based working capital limits whose
rating is withdrawn on full payment of loan.
KEY RATING DRIVERS
The downgrade reflects the substantial deterioration in STPL's
credit metrics in FY17, as against Ind-Ra's expectation of an
improvement. Ind-Ra had expected EBITDA interest coverage
(operating EBITDA/gross interest expense) to exceed 2.0x and net
leverage (total debt/operating EBITDA) to reduce below 3.0x in
FY17 because of the expected improvement in the revenue; however,
the company reported 1.9x (FY16: 1.7x) and 4.5x (4.9x),
respectively. The deterioration was due to a 15.5% yoy decline in
revenue to INR1,045 million on account of demonetization. STPL
achieved revenue of INR814 million during 9MFY18. The company had
an order book of INR65 million at end-January 2018 that will be
executed during February 2018.
Ind-Ra expects credit metrics to deteriorate further in FY18 due
a debt-funded capex. The company has raised term loans totaling
INR69.6 million towards the addition of machinery which will
reflect at FYE18.
The ratings also reflect STPL's tight liquidity.. Its average
maximum peak utilization of the fund-based working capital limits
was 98% for the 12 months ended December 2017, due to a stretch
in receivables from customers due to demonetization.
The ratings, however, are supported by an improvement in
profitability in FY17. EBITDA margin improved to 9.2% in FY17
(FY16: 7.4%) due to a shift in the business model to 100%
manufacturing during FY17 (FY16: 88%) and manufacturing 100%
compact yarn (a high-margin product) as against combed yarn. Ind-
Ra expects the operating profitability to improve in the medium
term by installing automated machinery to reduce the labor cost.
Moreover, the promoters have more than four decades of experience
in the cotton yarn manufacturing industry.
RATING SENSITIVITIES
Positive: A substantial increase in the top line along with an
improvement in the profitability leading to the net leverage
reducing below 4.0x on a sustained basis could be positive for
the ratings.
Negative: Any deterioration in the EBITDA margins leading to the
net leverage exceeding 5.0x on a sustained basis could be
negative for the ratings.
COMPANY PROFILE
STPL was established in 1981. The company manufactures compact
yarn and had an installed capacity of 34,000 spindles with 98%
capacity utilization.
SILVER STAR: Ind-Ra Affirms 'B' Rating on INR100MM Loan
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Silver Star
Group's (SSG) Long-Term Issuer Rating at 'IND B'. The Outlook is
Stable. The instrument-wise rating actions are given below:
-- INR100 mil. Fund-based working capital limit# assigned with
IND B/Stable rating; and
-- INR100 mil. Proposed term loan* assigned with Provisional IND
B/Stable rating.
* The ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facility by MCPL to the satisfaction of Ind-Ra.
# The final rating is assigned following the receipt of sanction
letter by Ind-Ra.
KEY RATING DRIVERS
The affirmation reflects the continued execution and funding
risks associated with SSG's ongoing project - Silver Palm Grove
Phase II. Around 40% of the construction has already been
completed in Phase II and the project is scheduled to be
completed by December 2019.
The funding risk emanates from the firm's substantial dependence
on customer advances for its funding needs. Customer advances
form 74% of the total project cost of INR447.77 million in Phase
II. Under a joint development agreement, the firm needs to pay an
amount equivalent to the 50,000sf. of the total saleable area or
the number of flats to the land owners.
Out of the total 144 flats being built in Phase II, as on
December 2017, SSG had received bookings for 15 flats while the
remaining 90% expose the firm to saleability risk. Out of the
total 179 units (including of land owner share) in phase I, 151
have been booked.
The ratings are supported the successful execution of Phase I.
The construction was completed in July 2017. Also, the firm's
promoters' have over 10 years of operating experience in the real
estate segment and a record of completing four projects
(residential and commercial) in Pune.
RATING SENSITIVITIES
Positive: Sale of flats as planned, leading to strong visibility
of cash flows, will be positive for the ratings.
Negative: Further leveraging of the existing business for new
projects and/or time and cost overruns stressing cash flows for
debt service, could be negative for the ratings.
COMPANY PROFILE
Pune-based SSG, incorporated in 2013, is a partnership firm.
SSG's current project Silver Palm Grove consists of 329 saleable
flats (including owner land) covering a total saleable area of
3,25,732sf.
SPECTRUM COMPLEX: Ind-Ra Migrates BB- Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Spectrum Complex
Private Limited's (SCPL) 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 action is as
follows:
-- INR183.1 mil. Long-term loans migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) ratings.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 5, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SCPL was incorporated in 2007 for the development of Arch Square
in Kolkata. The directors Rajendra Kumar Sarogi, Rabindra
Bacchawat, Lalit Kumar Jain and Rajesh Osatwal belong to the Arch
Group, which was established in 2005. The directors have
successfully completed several residential and commercial
projects, particularly corporate and professional office centres
in Kolkata. SCPL has a registered office in Kolkata.
SREE DAKSHA: CRISIL Lowers Rating on INR15MM Term Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facility of Sree Daksha Property Developers India Private Limited
(SDPD) to 'CRISIL D' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 15 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The downgrade reflects delays in servicing debt because of
stretched liquidity.
The rating also reflects exposure to risks related to completion
of ongoing projects, geographical concentration in revenue, and
exposure to intense competition and to risks inherent in the
Indian real estate industry. These weaknesses are partially
offset by the established track record and extensive experience
of the promoters in the real estate market of Coimbatore, Tamil
Nadu.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to completion of ongoing projects and
geographical concentration in revenue: The company remains
susceptible to risks related to implementation and saleability of
ongoing projects. Furthermore, all the projects are in
Coimbatore. Hence, any region-specific event or change in
customer preferences could adversely impact saleability. Also,
any unfavourable change in government regulations may weaken the
business.
* Exposure to risks relating to cyclicality in the Indian real
estate industry: The real estate sector in India is cyclical and
marked by volatile prices, opaque transactions, and a highly
fragmented market structure. The execution of real estate
projects is affected by multiple property laws and non-
standardised government regulations across states. The risk is
compounded by aggressive timelines for completion with shortage
of manpower (project engineers and skilled labour) in this
sector.
Strengths
* Established track record in Coimbatore: Benefits from a track
record of over a decade will continue. Since inception, about 10
residential projects have been completed, while five projects are
in progress, with total saleable area of 0.9 million square foot.
SDPD, set up in 2010 and based in Coimbatore, is a real estate
developer. Its operations are managed by the promoter, Mr R
Mohan.
SREEJITH S S: CRISIL Assigns B Rating to INR5MM Cash Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Sreejith S S (SS). The ratings reflect the
firm's modest scale of operations in the highly fragmented civil
construction industry, limited scale of operations owing to
presence in a single state, working capital-intensive operations
and average financial risk profile. These ratings are partially
offset by the long-standing industry experience of its promoter.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4
Cash Credit 5 CRISIL B/Stable
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in a highly fragmented industry: The
scale of operations of SS is modest, as reflected in its
estimated revenues of Rs 5.67 crore in fiscal 17. This is due to
tender-based nature of operations which results in volatility in
revenue and operating margin as the same vary across various
tenders.
* Limited scalability owing to presence in a single state: The
firm undertakes almost all of its projects in Trivandrum, Kerala,
limiting the scale of operations to a limited geography.
Moreover, it has presence only in the roads construction, with no
diversity by way of presence in other segments such as power,
irrigation, etc. Any events such as slowdown in the
infrastructure spending in Kerala or operational delays may
affect the flow of orders for the firm and thus impact its
revenue growth.
* Working capital-intensive nature of operations: The
construction industry is inherently working capital intensive.
The gross current assets of SS are high, at 240 days as at March
31, 2017 on account of various deposits the firm has to maintain
with the government agencies and blockage of funds as retention
money and margin money for bank guarantee.
Strength
* Promoter's experience in the civil construction industry: Mr
Sreejith has about 8 years of experience in the civil
construction industry. SS currently has an order book of around
Rs 17 crore which provides the firm with healthy revenue
visibility over the medium term.
Outlook: Stable
CRISIL expects SS to benefit from its promoter's extensive
industry experience. The outlook may be revised to 'Positive' if
the firm reports substantial growth in its scale of operations
and profitability while improving its working capital cycle. The
outlook may be revised to 'Negative' if the firm's financial risk
profile deteriorates due to lengthening of its operating cycle or
if the firm suffers a decline in its revenues or profitability.
SS is a sole proprietorship firm, based in Trivandrum, Kerala,
which undertakes contracts for construction of roads for Kerala
Public works department (PWD).
STYLE MARKETING: Ind-Ra Migrates BB- Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Style Marketing
Private Limited's Long Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is given below:
-- INR130 mil. Fund-based working capital limit migrated to
Non-Cooperating Category with IND BB- (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) ratings.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 28, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Style Marketing Private Limited was incorporated in 1996, and is
engaged in trading wires and wire mesh products. The entity is
promoted by Mr. Amit Garg and has its registered office in New
Delhi.
YADAV SOLVEX: CRISIL Moves B Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has been consistently following up with Yadav Solvex Pvt.
Ltd. (YSPL) for obtaining information through letters and emails
dated October 26, 2017 and December 13, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Term Loan 7.15 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Yadav Solvex Pvt. Ltd. which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Yadav Solvex Pvt. Ltd. is consistent with 'Scenario 4' outlined
in the 'Framework for Assessing Consistency of Information'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Yadav Solvex Pvt. Ltd. to 'CRISIL B/Stable Issuer
not cooperating'.
YSPL was incorporated in 2003 by Mr. Bhagwan Singh and his
family. The firm processes basmati rice at its plant at Muktsar
in Punjab. YSPL has a total milling and sorting capacity of 4.5
tonne per hour each.
=========
J A P A N
=========
TAKATA CORP: 13 Automakers to Provide $130MM for U.S. Settlement
----------------------------------------------------------------
Reuters reports that a group of 13 automakers will contribute as
much as $130 million to compensate those injured by faulty Takata
Corp. air bag inflators as part of a deal to resolve the Japanese
company's bankruptcy, a U.S. plaintiffs' attorney said.
Reuters says the agreement clears the way for the sale of
Takata's noninflator business to Key Safety Systems, a unit of
China's Ningo Joyson Electric Corp., for $1.6 billion, helping to
ensure a steady supply of car parts for the world's biggest
automakers.
Reuters relates that Attorney Joe Rice of Motley Rice, who
represents dozens of personal injury plaintiffs in the
bankruptcy, said the deal, which was disclosed in court papers on
Feb. 10, was aimed at keeping Takata operations afloat so it
could make replacement inflator kits.
Tens of millions of air bags with the inflators have been
recalled but not yet replaced, the report notes.
In an interview late on Feb. 12, Mr. Rice said the group of 13
automakers would contribute about $80 million to $130 million to
Takata's bankruptcy estate to help compensate those injured by
the Takata inflators, Reuters relays.
In return for the automakers' contribution, a committee of
injured drivers dropped their objection to TK Holdings' proposed
bankruptcy exit plan. The plan will be presented to a U.S. judge
on Friday for approval, the report states.
Reuters notes that victims of the faulty inflators will also be
able to collect from a separate $125 million compensation fund
created as part of a plea deal Takata entered with the U.S.
Department of Justice early last year. As part of that plea,
automakers will receive their share of an $850 million
restitution fund.
According t Reuters, Mr. Rice said funds from the Justice
Department settlement and the bankruptcy are likely to fall short
of full compensation for injured drivers, but they will still be
able to sue the car manufacturers.
The one exception is Honda Motor Co., which agreed to create a
trust to ensure injuries linked to its vehicles will be
compensated in full, according to Mr. Rice, Reuters says. He said
Honda also will not contest fault for the injuries, the report
adds.
About TK Holdings
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 17-11375) on June 25, 2017. Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
USGD1.588 billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata. Ernst & Young
LLP is tax advisor. Prime Clerk is the claims and noticing
agent. The Debtors Meunier Carlin & Curfman LLC, as special
intellectual property counsel.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act. The Canadian
Court appointed FTI Consulting Canada Inc. as information
officer. TK Holdings, as the foreign representative, is
represented by McCarthy Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel. The
Committee has also tapped Chuo Sogo Law Office PC as Japan
counsel.
The Official Committee of Tort Claimants selected Pachulski Stang
Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the
insurance policies. Sakura Kyodo Law Offices will serve as
special counsel.
Roger Frankel, the legal representative for future personal
injury claimants of TK Holdings Inc., et al., tapped Frankel
Wyron LLP and Ashby & Geddes PA to serve as co-counsel.
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
TOSHIBA CORP: Appoints Nobuaki Kurumatani as CEO and Chairman
-------------------------------------------------------------
The Board of Directors of Toshiba Corporation, meeting on
Feb. 14, resolved to appoint Mr. Nobuaki Kurumatani for the post
of Representative Executive Officer and Chairman of Toshiba
Corporation, as of April 1, 2018. The Board has also decided to
reappoint Mr. Satoshi Tsunakawa to his current position of
Representative Executive Officer and President of the Company
after the ordinary general meeting of the shareholders scheduled
for June this year. Mr. Kurumatani as Chief Executive Officer
(CEO), and Mr. Tsunakawa as Chief Operation Officer (COO) will
together execute the management of Toshiba Group.
The appointments of Mr. Kurumatani and Mr. Tsunakawa as Directors
of the Board are subject to approval by the ordinary general
meeting of the shareholders.
Toshiba Group is currently engineering major transformations to
its business portfolio and capital formation. In order to
continue its commitment to contributing to a sustainable society
through its business and technology, the Group must effectively
secure a strong financial platform, and nourish the businesses
that will drive future growth. In executing these objectives, the
Board recognizes that Toshiba must proactively take in outside
perspectives and views, and decided to appoint a CEO with a
proven track record of achievement and a business perspective
shaped outside Toshiba Group. The new Chairman, as CEO, will be
responsible for strategies for growth in the medium- to long-term
and public relations; at the same time, the Representative
Executive Officer and President will act as COO for execution of
business operation. The Board believes that this approach will
best meet the interests of Toshiba Group and its management
structure.
Mr. Kurumatani is currently the President of CVC Asia Pacific
Japan (CVC), and a member of Sharp Corporation's Audit &
Supervisory Committee. Prior to joining CVC in May 2017, he was
Deputy President and a Director of Sumitomo Mitsui Financial
Group, where his career was devoted to corporate planning, public
relations and internal auditing. He has also served as a member
of the committee on corporate accounting and corporate governance
at Keidanren, the Japan Business Foundation, and also currently
is a member of a number of committees and councils of the Keizai
Doyukai, the Japan Association of Corporate Executives, where he
works with multiple Japanese government ministries, including the
Ministry of Finance, the Ministry of Economy, Trade and Industry,
and the Ministry of Health, Welfare and Labor. Mr. Kurumatani was
born in 1957, and graduated from The University of Tokyo with a
bachelor's degree in Economics in 1980.
Commenting on his appointment as Representative Executive Officer
and Chairman and CEO, Mr. Kurumatani said, "I am honored and
delighted to accept this appointment, and deeply aware of the
challenges I face. I will draw on all my experience and devote
all my efforts to rebuilding Toshiba Group, by recovering and
strengthening its financial base. I will reexamine the business
portfolio and allocate necessary resources needed, and also
inject a spirited commitment into the Group's activities to
improve its governance structure and rebuild its corporate
culture by driving forward Group unity.
"The past few years have not been easy for Toshiba, but I have
every confidence that overcoming all the difficulties it has
faced will shape a stronger Toshiba Group. This company has a
long and impressive history of creating new technologies and
turning them into massive businesses, and I see my most important
responsibility as reactivating this cultural DNA, and bringing
all management resources together to focus on reviving Toshiba."
About Toshiba Corp
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others. The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others. The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment. The
Others segment leases and sells real estate.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 24, 2018, S&P Global Ratings said it has raised two notches
to 'CCC+' from 'CCC-' both its long-term corporate credit and
senior unsecured debt ratings on Japan-based capital goods and
diversified electronics company Toshiba Corp. S&P said, "We also
placed the ratings on CreditWatch with positive implications. We
have kept our 'C' short-term corporate credit and commercial
paper program ratings on Toshiba on CreditWatch with positive
implications."
The TCR-AP on Dec. 15, 2017, reported that Moody's Japan K.K.
affirmed Toshiba Corporation's Caa1 corporate family rating and
senior unsecured debt ratings, and its Ca subordinated debt
rating. Moody's has also changed the ratings outlook to stable
from negative. At the same time, Moody's has affirmed Toshiba's
commercial paper rating of Not Prime.
=================
S I N G A P O R E
=================
KITCHEN CULTURE: Net Loss Widens to SGD1.69MM in H1 ended Dec. 31
-----------------------------------------------------------------
The Strait Times reports that Kitchen Culture Holdings' half-year
net loss widened to SGD1.69 million from its year-ago deficit of
SGD1.26 million as sales fell in its residential and distribution
and retail segments.
Loss per share for the six months ended Dec 31, 2017 was 1.7
Singapore cents, wider than the year-ago loss per share of 1.3
Singapore cents, the report discloses. Shares in Kitchen Culture,
a supplier of high-end kitchen systems, last traded at 17
Singapore cents apiece on Nov 21.
The Strait Times relates that for the six months ended Dec 31,
the group's revenue fell 61.5 per cent to SGD7.8 million from
SGD20.2 million in the previous year. Residential projects
revenue dropped by 71.2 per cent, or SGD10.4 million, to SGD4.2
million, while sales from the distribution and retail segment
declined 35.7 per cent, or SGD2 million, to SGD3.6 million, the
report discloses.
According to the report, Kitchen Culture described the business
outlook for the next 12 months as "challenging and competitive"
amid uncertainty in the global economy. But it noted that it
recently secured two contracts in Singapore amounting to
approximately SGD6.1 million that will be fulfilled over the next
one to three years.
Looking ahead, there are plans to broaden the group's business by
entering the mass market sector through a relaunch of the group's
Pureform brand for kitchen and wardrobe systems, and any interior
fit-out solutions. Kitchen Culture also plans to expand the
group's businesses through Kroom, which retails premium kitchen
appliances and wardrobe systems, the report says.
The Strait Times relates that in a separate filing on Feb. 15,
the company also announced that executive chairman and
controlling shareholder Lim Wee Li has agreed to convert SGD2.5
million of debt owed to him by the company into 18.5 million new
shares at a conversion price of 13.53 Singapore cents per share.
Mr Lim is owed a total of SGD4.21 million by Kitchen Culture.
The conversion price represents a 10 per cent discount to the
volume weighted average price of SGD0.1503 for trades done on
Nov. 21, being the last full market day on which the group's
shares were traded, the report relates.
Following the proposed debt conversion, Mr Lim's shareholding in
the company will be increased from 74.7 per cent to 78.6 per
cent. The new shares represent 15.6 per cent of the firm's
enlarged share capital, the report notes.
Based on Kitchen Culture's unaudited financial statements for the
half year ended Dec 31, the group was in a negative working
capital position of SGD3.5 million and a net liability position
of SGD1.4 million, according to the Strait Times.
Thus, the proposed debt conversion will enable the group to
improve its working capital and net tangible assets value; reduce
its gearing and loss per share; eliminate the need for any cash
repayment; and allow the group to focus its resources on
stabilising its business activities, Kitchen Culture, as cited by
the Strait Times, said.
Among other things, completion of the proposed debt conversion is
subjected to the listing and quotation notice being obtained from
SGX-ST (Securities Trading), and the approval from shareholders
at an extraordinary general meeting to be convened, the report
adds.
*********
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 2018. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***