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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, February 22, 2018, Vol. 21, No. 038
Headlines
A U S T R A L I A
EREBOS ENERGY: First Creditors' Meeting Set for March 2
HARDWIRE PTY: First Creditors' Meeting Set for March 1
HUNT CIVIL: First Creditors' Meeting Set for March 2
MAGGIE T: Second Creditors' Meeting Set for March 1
QUEENSLAND NICKEL: Workers Call on Mensink to Return to Aus.
SAPPHIRE XVIII: Moody's Assigns (P)B2 Rating to Cl. F Notes
SCHOKMAN PTY: First Creditors' Meeting Set for March 1
H O N G K O N G
MANLEY TOYS: Sanctioned for Violating U.S. Court's Stay Order
MANLEY TOYS: U.S. Court Recognizes Hong Kong Foreign Proceeding
I N D I A
ABHIMANU ADVENTURE: CRISIL Withdraws D Rating on INR8MM Term Loan
ANCHOR AGRITECH: CARE Cuts Rating on INR5.45cr LT Loan to B
AUTOCREATES SERVICES: CRISIL Cuts Rating on INR15MM Loan to D
BABA RICE: CRISIL Removes B+ Rating From Not Cooperating Category
BSCPL INFRASTRUCTURE: CARE Ups Rating on INR690cr Loan to B+
CONTINENTAL CORRUGATORS: CARE Rates INR11.20cr LT Loan B+
CORROSION ENGINEERS: CRISIL Reaffirms D Rating on INR8MM Loan
ESSAR STEEL: Sale Advisers Recommend Disqualifying All Bids
FIRDOUS GOLD: CRISIL Hikes Rating on INR5MM Cash Loan to 'B'
FOREST VIEW: CRISIL Assigns D Rating to INR8MM Long Term Loan
GRS ENGINEERING: CARE Assigns B+ Rating to INR6cr LT Loan
INDERA ETHNICS: CARE Assigns B Rating to INR5.0cr LT Loan
JAIN HYDRAULICS: CARE Lowers Rating on INR10cr LT Loan to D
KAMRUP PACKAGING: CRISIL Assigns B Rating to INR6.6MM Term Loan
M G THREADS: CARE Reaffirms B+ Rating on INR17cr LT Loan
MAA BHAWANI: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan
NEELI AQUA: CARE Assigns B+ Rating to INR10.43cr LT Loan
NOVA AGRI: CRISIL Reaffirms B Rating on INR4.5MM Long Term Loan
PANCHANAN COLD: CARE Reaffirms B Rating on INR4.74cr LT Loan
PARAMOUNT BLANKETS: CARE Lowers Rating on INR21cr LT Loan to D
POORVI HOUSING: CRISIL Assigns B Rating to INR15MM Cash Loan
PUNJAB NATIONAL: Fitch Puts bb Viability Rating on Watch Neg.
SEABOY FISHERIES: CRISIL Reaffirms B+ Rating on INR5MM Loan
SECURENS SYSTEMS: CRISIL Withdraws B+ Rating on INR3MM Term Loan
SHREE RAMKRISHNA: CARE Reaffirms B+ Rating on INR9.50cr LT Loan
SHRI GANESH: CRISIL Reaffirms B Rating on INR4MM Term Loan
STAR ORGANIC: CRISIL Lowers Rating on INR3MM Loan to D
SVR ELECTRO: CRISIL Reaffirms B+ Rating on INR2.9MM Secured Loan
TRUBA ADVANCE: CARE Reaffirms B Rating on INR3.34cr LT Loan
M A L A Y S I A
MALAYSIA PACIFIC: Faces Wind Up Petition Over MYR118.16MM Debt
N E W Z E A L A N D
MECCANO APPAREL: Placed in Voluntary Administration
PROPERTY VENTURES: Dave Henderson Seeks Costs From Liquidator
P A P U A N E W G U I N E A
TOLUKUMA GOLD: Placed in Liquidation Over Unpaid Bills
- - - - -
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A U S T R A L I A
=================
EREBOS ENERGY: First Creditors' Meeting Set for March 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Erebos
Energy Pty Ltd will be held at the offices of BRI Ferrier (NSW)
Pty Ltd, Level 30, Australia Square, 264 George Street, in
Sydney, NSW, on March 2, 2018, at 3:30 p.m.
Geoffrey Peter Granger and Brian Raymond Silvia of BRI Ferrier
(NSW) Pty Ltd were appointed as administrators of Erebos Energy
on Feb. 21, 2018.
HARDWIRE PTY: First Creditors' Meeting Set for March 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of Hardwire
Pty Ltd will be held at Level 7, 114 William St, in Melbourne,
Victoria, on March 1, 2018, at 10:30 a.m.
Andrew Schwarz of AS Advisory was appointed as administrator of
Hardwire Pty on Feb. 19, 2018.
HUNT CIVIL: First Creditors' Meeting Set for March 2
----------------------------------------------------
A first meeting of the creditors in the proceedings of Hunt Civil
Pty Ltd will be held at the offices of PPB Advisory, Level 7, 8
Chifley, 8-12 Chifley Square, in Sydney, NSW, on March 2, 2018,
at 10:00 a.m.
Daniel Austin Walley and Andrew John Scott of PPB Advisory were
appointed as administrators of Hunt Civil on Feb. 20, 2018.
MAGGIE T: Second Creditors' Meeting Set for March 1
---------------------------------------------------
A second meeting of creditors in the proceedings of Maggie T
Corporation Pty Limited has been set for March 1, 2018, at
11:00 a.m. at the Burke Room, Chartered Accountants Australia and
New Zealand, Level 9, 33 Erskine Street, in Sydney, NSW, on
March 1, 2018, at 11:00 a.m.
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. 28, 2018, at 5:00 p.m.
Cameron Hamish Gray and Justin Holzman of DW Advisory were
appointed as administrators of Maggie T on Jan. 3, 2018.
QUEENSLAND NICKEL: Workers Call on Mensink to Return to Aus.
------------------------------------------------------------
The Australian reports that former Queensland Nickel workers and
state government ministers have called on Clive Mensink to return
to Australia to face questions over the AUD300 million corporate
collapse after confirmation at the weekend that he is living
comfortably in Bulgaria.
The Australian has learned Mr. Mensink's lawyers are finalising a
legal challenge against two arrest warrants, issued over his
failure to appear in the Federal Court, even as a media crew is
in the city of Sofia documenting his new life.
The Australian relates that Mr. Mensink, the nephew of Clive
Palmer, has played a key role in many of his ventures, including
the Queensland Nickel refinery in Townsville that closed in 2016.
Having left Australia soon after the QNI collapse, and still
receiving funds from Palmer companies, Mr. Mensink has been
overseas for 20 months, taking cruises, getting fit and meeting a
new girlfriend.
Liquidators are suing Mr. Mensink, Mr. Palmer and 19 other people
for almost AUD500 million over the corporate collapse, which left
800 Townsville people without jobs and the federal government
covering their pensions and entitlements, according to the
report.
The Australian understands Mr. Mensink's lawyers two weeks ago
completed submissions for an appeal hearing next month in front
of the full bench of the Federal Court. They are expected to
argue that Mr. Mensink cannot be subject to arrest warrants for
contempt if there is no evidence he was aware of the proceedings
or his alleged contempt.
Last year, Federal Court judge Michael Wigney, in hearing such
arguments, questioned Mr. Mensink's motives for staying away from
Australia. "It's a fair inference . . . that he has absolutely no
intention of coming back to Australia while the liquidators
intend to examine him," he said, notes the report.
According to The Australian, a News Corp journalist earlier
attempted to speak to Mr. Mensink in Sofia, asking what he had to
say about the collapse of Queensland Nickel and whether he would
return to Australia. He did not comment. When Mr. Mensink's
girlfriend suggested it was inappropriate to confront him, the
journalist told them both: "We don't need to if he comes back to
Australia and talks to the court."
The Australian says Mr. Palmer, who recently bought a Brisbane
mansion and fleet of cars, has cast doubt on the authenticity of
the newly published photos of Mr. Mensink.
Asked whether his nephew should return to help him deal with the
collapse, Mr. Palmer messaged: "(Rupert) Murdoch should return to
Australia so we can serve him," referring to the News Corp
proprietor, The Australian relays. "Will be serving the Sunday
mail (sic) for lies they published," wrote Mr. Palmer, a frequent
litigator.
Mr. Mensink cannot be extradited because the arrest warrants
relate to civil matters, not criminal offences, but authorities
are likely to monitor his border movements, according to The
Australian.
About Queensland Nickel
Queensland Nickel was engaged in the production and marketing of
nickel and cobalt. It owned and operates the Palmer Nickel and
Cobalt Refinery in Queensland, Australia. It is owned by
businessman and politician Clive Palmer.
The Company experienced financial difficulties and Palmer sought
assistance from the Queensland Government in late 2015 but was
rejected. The Company's ownership was later transferred to a new
company named Queensland Nickel Sales Pty Ltd in a joint venture
between two of Clive Palmer's companies, QNI Resources Pty Ltd
and QNI Metals Pty Ltd, with the directorship going to Palmer's
nephew Clive Theodore Mesnick.
On Jan. 19, 2016, the Company entered into voluntary
administration. John Park, Stefan Dopking, Kelly-Anne Trenfield
and Quentin Olde of FTI Consulting were appointed as voluntary
administrators of the Company.
FTI as administrators issued a report in early April 2106 that
the Company "incurred debts of AUD771 million after going
insolvent in November [2015]."
On April 22, 2016, the Companies' creditors voted for
liquidation.
FTI went from being administrators to liquidators at the second
creditors meeting in April 2016.
SAPPHIRE XVIII: Moody's Assigns (P)B2 Rating to Cl. F Notes
-----------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the notes to be issued by Permanent Custodians Limited
as trustee of Sapphire XVIII Series 2018-1 Trust.
Issuer: Sapphire XVIII Series 2018-1 Trust
-- AUD125.00 million Class A1 Notes, Assigned (P)Aaa (sf)
-- AUD50.00 million Class A2 Notes, Assigned (P)Aaa (sf)
-- AUD29.00 million Class A3 Notes, Assigned (P)Aaa (sf)
-- AUD24.75 million Class B Notes, Assigned (P)Aa2 (sf)
-- AUD6.50 million Class C Notes, Assigned (P)A2 (sf)
-- AUD5.00 million Class D Notes, Assigned (P)Baa2 (sf)
-- AUD4.50 million Class E Notes, Assigned (P)Ba2 (sf)
-- AUD2.50 million Class F Notes, Assigned (P)B2 (sf)
The AUD1.50 million Class G and AUD1.25 million Class H Notes are
not rated by Moody's.
The ratings address the expected loss posed to investors by the
legal final maturity.
The deal is an Australian non-conforming residential mortgage-
backed securities (RMBS) transaction secured by a portfolio of
prime and non-conforming residential mortgage loans. All
receivables were originated by Bluestone Group Pty Limited or
Bluestone Mortgages Pty Limited (Bluestone) and are serviced by
Bluestone Servicing Pty Limited (Bluestone Servicing).
RATINGS RATIONALE
The provisional ratings take into account, among other factors,
evaluation of the underlying receivables and their expected
performance, the evaluation of the capital structure and credit
enhancement provided to the notes, the availability of excess
spread over the life of the transaction, the liquidity facility
in the amount of 2.0% of the notes balance, the legal structure,
and the credit strength and experience of Bluestone Servicing as
servicer.
- Moody's MILAN CE - representing the loss that Moody's expects
the portfolio to suffer in the event of a severe recession
scenario - is 18.0%. Moody's expected loss for this transaction
is 2.0%.
Key transactional features are as follows:
- Whilst the Classes A1, A2 and A3 Notes rank sequentially in
relation to interest and charge-offs, they rank pari passu in
relation to principal throughout the life of the transaction.
Principal repayments will be allocated pro-rata, based on the
stated amount of the notes. This feature reduces the absolute
amount of credit enhancement available to the Class A1 and Class
A2 Notes.
- Class B to Class F Notes will start receiving their pro-rata
share of principal if step-down conditions are met.
- Permitted further advances can be funded within the trust,
which could lead to a deterioration in the credit quality of the
pool. Further advances are subject to certain conditions. Further
advances will be funded through principal collections.
- A retention mechanism will be used to divert excess available
income towards the repayment of the most junior class of notes
outstanding other than Class H Notes. The retention amount will
be up to 0.05% of the current outstanding pool balance per month,
and up to a total captured amount of AUD750,000. At the same
time, the trustee will issue Class RM Notes, equivalent to the
retention amount allocated, leaving subordination levels
unchanged.
Key pool features are as follows:
- While the portfolio has a reasonably high weighted-average
scheduled loan-to-value (LTV) of 68.4%, there are no loans in the
pool with a scheduled LTV above 85.0%.
- Investment and interest-only loans represent 19.8% and 10.2% of
the pool, respectively.
- Based on Moody's classifications, the portfolio contains 32.0%
exposure to borrowers with prior credit impairment (default,
judgment or bankruptcy). Moody's assesses these borrowers as
having a significantly higher default probability.
- Based on Moody's classifications, the portfolio contains 55.2%
of loans granted on the basis of alternative income
documentation, with a further 5.1% granted on the basis of low
income documentation.
- Based on Moody's classifications, around 62.1% of the loans in
the portfolio were extended to self-employed borrowers.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.
Factors That Would Lead to an Upgrade or Downgrade of the
Ratings:
Factors that could lead to an upgrade of the notes include a
rapid build-up of credit enhancement, due to sequential
amortization or better-than-expected collateral performance. The
Australian jobs market and the housing market are primary drivers
of performance.
A factor that could lead to a downgrade of the notes is worse-
than-expected collateral performance. Other reasons that could
lead to a downgrade include poor servicing, error on the part of
transaction parties, a deterioration in the credit quality of
transaction counterparties or lack of transactional governance
and fraud.
Moody's Parameter Sensitivities:
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process - here the MILAN
credit enhancement (CE) and mean expected loss - differed. The
analysis assumes that the deal has not aged. Parameter
Sensitivities only reflect the ratings impact of each scenario
from a quantitative/model-indicated standpoint.
Based on the current structure, if the MILAN CE increased to
22.50% and the portfolio expected loss remained unchanged at
2.0%, the model implied rating of the Class A1, Class A2 and
Class A3 Notes would reduce by one notch to Aa1. The sensitivity
in the ratings is due to the pro-rata allocation of principal
among the Class A1, Class A2 and Class A3 Notes, on the basis of
their stated amounts, throughout the life of the deal, thus
reducing the absolute amount of credit enhancement available to
Class A1 and Class A2 Notes.
SCHOKMAN PTY: First Creditors' Meeting Set for March 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of Schokman
Pty Ltd will be held at the offices of Veritas Advisory, Level 5,
123 Pitt Street, in Sydney, NSW, on March 1, 2018, at 11:00 a.m.
David Iannuzzi and Vincent Pirina of Veritas Advisory were
appointed as administrators of Schokman Pty on Feb. 19, 2018.
================
H O N G K O N G
================
MANLEY TOYS: Sanctioned for Violating U.S. Court's Stay Order
-------------------------------------------------------------
Judge Jerrold N. Poslusny, Jr., of the U.S. Bankruptcy Court for
the District of New Jersey granted the motion filed by ASL Inc.,
f/k/a Aviva Sports, Inc., seeking sanctions, including actual
damages, costs, attorneys' fees, and punitive damages against Toy
Quest Ltd. for its alleged willful violation of the stay imposed
by order of the Court on April 1, 2016.
The alleged violation relates to Aviva's motion for garnishment
currently pending in the United States District Court for the
Middle District of Tennessee. The Garnishment Action involves
$97,654.31 (the "Funds") that Dollar General Corporation
possessed and was due and owing to "Toy Quest Limited." Aviva
essentially makes two separate arguments in the Garnishment
Action. Under Aviva's alter ego theory, the Funds belong to
respondent Toy Quest, but may be folded into Debtor's assets if
Aviva can establish its alter ego or fraudulent transfer claim.
However, under Aviva's trade name theory, the Funds are part of
the Debtor's assets right now. Aviva argues that the Debtor used
the trade name "Toy Quest Limited" in its business dealings with
Dollar General and these Funds were supposed to be paid to the
Debtor. Under this theory, the respondent to this motion, which
happens to also be called Toy Quest Ltd., has no claim to the
Funds at all. Toy Quest filed a motion to intervene in the
Garnishment Action on Dec. 7, 2015. While Toy Quest's motion to
intervene was pending, the Debtor filed a Chapter 15 petition for
recognition and the Court entered the Stay Order.
Upon analysis of all the arguments and evidence presented, the
Court concludes that a debtor's claims in ongoing litigation are
protected by the Stay Order and that this protection extends to
any property, the debtor's interest in which is being litigated
at the time the stay goes into effect. As such, the Court finds
Toy Quest violated the Stay Order in filing its Limited Response
in the Garnishment Action with the Tennessee Court, seeking
release of the Funds. Moreover, the Court finds that creditors do
have standing to bring a motion for sanctions under section
362(k) of the Bankruptcy Code. The Court will award Aviva
reasonable and necessary attorney fees and costs associated with
bringing this motion.
A full-text copy of the Court's Memorandum Decision dated
Feb. 14, 2018 is available at:
http://bankrupt.com/misc/njb16-15374-271.pdf
Matt Ng and John Robert Lees filed a petition under Chapter 15 of
the Bankruptcy Code for Hong Kong-based Manley Toys Limited on
March 22, 2016 (Bankr. D.N.J., Case No.: 16-15374). Manley Toys
is engaged in the development, sourcing, and marketing of toys,
children's products and party supplies. The case is before Judge
Jerrold N. Poslusny Jr.
The Chapter 15 Petitioners are represented by Stephen M. Packman,
Esq., at Archer & Greiner, P.C., in Haddonfield, New Jersey.
MANLEY TOYS: U.S. Court Recognizes Hong Kong Foreign Proceeding
---------------------------------------------------------------
Judge Jerrold N. Poslusny, Jr., of the U.S. Bankruptcy Court for
the District of New Jersey granted the motion of Mat Ng and John
Robert Lees, the Appointed Liquidators and Foreign
Representatives of Debtor Manley Toys Limited, for recognition of
a foreign proceeding commenced by the Debtor in Hong Kong on
March 22, 2016.
Recognition of a foreign insolvency proceeding requires that the
proceeding: (a) meets the definition of a "foreign proceeding"
under section 101(23) of the Bankruptcy Code; (b) meets the
requirements for recognition under section 1517(a); and (c) is
not "manifestly contrary to the public policy of the United
States." The Liquidators argued that they have met all of the
requirements for recognition and that recognition would not be
manifestly contrary to United States public policy. ASI Inc.,
f/k/a Aviva Sports Inc. and Toys "R" Us, Inc., who opposed the
motion, argued that the foreign proceeding is not collective in
nature; is not a foreign main proceeding; and is manifestly
contrary to public policy. TRU further argued that the
Court should deny the motion because (according to TRU) the
Debtor and an affiliated company, Toy Quest Ltd., are the same
entity, and if they were considered as one entity, that entity is
solvent. There is also no court oversight or administration of
the Hong Kong liquidation. Aviva further argued that even if the
Court recognizes the foreign proceeding, it should be dismissed
or suspended under section 305 of the Bankruptcy Code.
The Court does not doubt that Toy Quest and other insiders have
taken actions to avoid paying Aviva's claims and a-trial against
TRU. There may also be significant claims against Toy Quest and
insiders for their apparent efforts to avoid paying or to hide
assets from creditors. However, companies often enter liquidation
as a last-ditch effort to avoid creditors, and an independent
fiduciary is tasked with sorting everything out for the benefit
of all creditors. Here, that liquidation was commenced in Hong
Kong rather than the United States. The fact that the Debtor (and
insiders), may have acted in bad faith in other litigation, does
not mean that the Court should not recognize the foreign
proceeding, and thereby force the Liquidators to pursue their
duties under Hong Kong law without the assistance of the US
Court and the protections of Chapter 15.
The Liquidators have met their burden of proof in showing that
the Hong Kong proceeding is a foreign main proceeding. Moreover,
recognition of the foreign proceeding is not manifestly contrary
to United States public policy.
A full-text copy of the Court's Opinion dated Feb. 13, 2018 is
available at:
http://bankrupt.com/misc/njb16-15374-268.pdf
Matt Ng and John Robert Lees filed a petition under Chapter 15 of
the Bankruptcy Code for Hong Kong-based Manley Toys Limited on
March 22, 2016 (Bankr. D.N.J., Case No.: 16-15374). Manley Toys
is engaged in the development, sourcing, and marketing of toys,
children's products and party supplies. The case is before Judge
Jerrold N. Poslusny Jr.
The Chapter 15 Petitioners are represented by Stephen M. Packman,
Esq., at Archer & Greiner, P.C., in Haddonfield, New Jersey.
=========
I N D I A
=========
ABHIMANU ADVENTURE: CRISIL Withdraws D Rating on INR8MM Term Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of
Abhimanu Adventure Resorts Private Limited (AARPL) and
subsequently withdrawn the ratings at the company's request and
on receipt of no-objection certificate from the bankers. The
withdrawal is in line with CRISIL's policy on withdrawal of bank
loan ratings.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL D (Rating reaffirmed
and Withdrawal)
Term Loan 8 CRISIL D (Rating reaffirmed
and Withdrawal)
Incorporated in 2010, AARPL owns and operates Ram Shehar Fort, a
hotel in Nalagarh. It commenced operations in June 2014;
operations are managed by Mr Parveen Bansal and Mr Sanjeev
Bansal. It has converted a historical fort into a hotel (under
the heritage hotel category), which has 30 rooms, a banquet hall,
two lawns, and a restaurant.
ANCHOR AGRITECH: CARE Cuts Rating on INR5.45cr LT Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Anchor Agritech (ARG), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.45 CARE B; Stable Revised from
Facilities CARE B+; Stable
Detailed rationale
The revision in the rating assigned to the bank facilities of ARG
is constrained on account of delay in commencement of operations
which has led to small scale of operations along with operating
loss, weak capital structure, weak debt coverage indicators and
stretched liquidity position in FY17 (refers to the period
April 1 to March 31).
Furthermore, the rating is also constrained on account of
partnership nature of constitution, fragmented nature of the
industry with high level of government regulation, seasonal and
perishable nature of agro-commodities.
The rating, however, derive strength from the experienced
promoters along with the locational advantage having favorable
location for the cold storage.
ARG's ability to increase its scale of operations and profit
margins in light of volatile material costs would remain the key
rating sensitivities. Further, improvement in capital structure,
debt coverage indicators and liquidity position would also remain
crucial.
Detailed description of key rating drivers
Key Rating Weaknesses
Delay in commencement of operations: ARG had envisaged to
commence its commercial operations by the end of April, 2017.
However, due to non-occupancy of cold storage during the year the
operations have not been started and stabilized. As per new
schedule, the proper operations will start from Q1FY19.
Small Scale of operations coupled with loss in first full year of
operation: FY17 was the first full year of operations and during
the year the firm has registered TOI of INR0.03 crore which has
also led to operating loss during the year.
Weak capital structure and weak debt protection indicators: On
the back of Negative net worth base and that of higher total debt
level, capital structure stood weak as on March 31, 2017.
Further, debt coverage indicators stood weak due to operating
loss reported by the firm.
Stretched liquidity position: As on March 31, 2017, liquidity
position stood stretched marked by current ratio of 1.08 times.
Working capital cycle stood elongated at 485 days mainly due to
high collection period.
Seasonal and perishable nature of agro commodities: Agro-
commodity business is highly seasonal and is largely dependent on
monsoons which impacts availability of crops and leads to
volatility in prices. Moreover, agro-commodities are perishable
in nature, which results in lower bargaining power for the
supplier.
Fragmented nature of industry with high level of government
regulation: ARG operates in highly fragmented industry wherein
there is presence of a large number of players in the unorganized
and organized sectors. There are number of small and regional
players catering to the same market which limit ARG's bargaining
power and exert pressure on its margins. The government
intervenes in the market to keep a check on the prices to
safeguard the interest of farmers, which in turn limits the
bargaining power of the buyers. However, the government also
provides subsidies like MIDH (Mission for Integrated Development
for Horticulture) subsidy to encourage demand in the industry.
Key Rating Strength
Experienced partners and favorable location for cold storage:
Promoters of ARG hold more than a decade of experience into
similar line of operations through their association with ARG as
well as their associate concern named Anchor Pharma. ARG has set
up its cold storage facility in Valsad. The location gives easy
access to the required commodity and also to Agriculture Produce
Market Committee (APMC) market yards like Kheragam, Dharampur,
Chikhli and Vasanda.
M/s. Anchor Agritech (ARG) was initially setup by Mrs. Kalpana
Desai as a sole proprietorship firm in 2013 under the name of
M/s. Anchor Chemicals. It was reconstituted into a partnership
firm in September 2015, under its current name by adding Mrs
Kalpana Desai, Mr. Jayesh Desai as a partner in the firm. The
firm is engaged in storage and handling of fruit and vegetables
and their ripening, packaging and distribution.
AUTOCREATES SERVICES: CRISIL Cuts Rating on INR15MM Loan to D
-------------------------------------------------------------
CRISIL has been consistently following up with Autocreates
Services Private Limited (ASPL) for obtaining information through
letters and emails dated December 29, 2017, and January 12, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Lease Rental 15 CRISIL D/Issuer Not
Discounting Loan Cooperating (Issuer Not
Cooperating; Downgraded
from 'CRISIL B+/Stable')
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 the management, CRISIL failed
to receive any information on either financial or strategic
intent of ASPL. This restrict the CRISIL ability to take forward
looking view on the credit quality of the entity.CRISIL believes
that the information available for the group is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information' corresponding to CRISIL BB rating category or
lower.
Based on the best available information, CRISIL has downgraded
its rating on the long-term bank facilities of ASPL from 'CRISIL
B+/Stable to 'CRISIL D Issuer Not Cooperating'. The downgrade
reflects delays in servicing term debt obligations owing to weak
liquidity.
Key Rating Drivers & Detailed Description
Weakness
* Delay in debt servicing: The Company has delayed servicing term
loan owing to stretched liquidity.
Strengths
* Established relationships with clients: ASPL has an established
relationship with its key client, TML. ASPL is working with TML
for more than 25 years through its group company AIPL. This
relationship is resulted in ASPL also getting repeat business
from the dealers of TML and UAPL from the past eight years
ASPL, incorporated in 2006, is a subsidiary of Autocreates
(India) Pvt Ltd (AIPL). AIPL has 90 per cent ownership in ASPL
with the remaining 10 per cent being equally owned by the
promoters of AIPL, Mr. Gurinder Singh Arora and Mrs. Tarvinder
Kaur Arora. ASPL has a dedicated parking yard at Panvel
(Maharashtra), on the Mumbai-Pune highway. The yard is given on
lease to various reputed clients.
BABA RICE: CRISIL Removes B+ Rating From Not Cooperating Category
-----------------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated the rating
on the long-term bank facility Baba Rice Industry (BRI) to
'CRISIL B+/Stable/Issuer Not Cooperating'. However, management
has subsequently started sharing information necessary for
carrying out a comprehensive review of the rating. Consequently,
CRISIL is migrating the rating on the company's bank facility
from 'CRISIL B+/Stable/Issuer Not Cooperating' to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable'
Issuer Not Cooperating)
The rating continues to reflect a modest scale of operations in
the intensely competitive rice milling industry, susceptibility
to volatility in raw material prices, and an average financial
risk profile a small networth, high gearing, and average debt
protection metrics. These weaknesses are partially offset by the
extensive experience of partners in the rice milling industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in intensely competitive rice-
milling industry: BRI's business risk profile is constrained by
its modest scale of operations. Firm booked revenues of INR 49.6
crore in 2016-17. The rice-milling industry is fragmented because
of low capital intensity, which results in low entry barriers.
The fragmented nature of the business and the modest capacity of
operations limit the firm's ability to bargain with its suppliers
and customers.
* Susceptibility of profitability margins to volatility in paddy
prices, and exposure to regulatory changes: Cost of paddy
accounts for 80 to 90 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
firm 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.
* Average financial risk profile: Financial risk profile is
average marked by modest net worth, high gearing and average debt
protection metrics. Interest coverage ratio and net cash accrual
to total debt was around 1.67 times and 5% for the Fiscal 2017.
Strength:
* Extensive experience of partners in the rice milling industry:
BRI partner's Mr. M Sree Rama Raju and Mr. M Narayan Raju have an
experience of over two decades in this industry. This has enabled
the firm to establish healthy relationships with its customers.
This results in repetitive orders from them reflected in
Compounded Annual Growth Rate (CAGR) of 18 per cent for the past
three years ended as on 2016-17. CRISIL believes that BRI will
continue to benefit over the medium term from its partners'
extensive industry experience and established relationship with
agents and dealers.
Outlook: Stable
CRISIL believes BRI will benefit over the medium term from the
industry experience of its partners. The outlook may be revised
to 'Positive' if revnues increase significantly with stable
operating margins or substantial equity infusion results in a
better capital structure. Conversely, the outlook may be revised
to 'Negative' if low cash accrual, stretched working capital
cycle, capital withdrawals or large, debt-funded capital
expenditure leads to deterioration in the financial risk profile.
Established as a partnership firm in 2000, BRI processes raw
rice. It has an installed paddy milling capacity of 5 tonne per
hour (tph). Its rice mill is located in Nellore (Andhra Pradesh).
The operations are managed by Mr. M Sree Rama Raju and Mr. M
Narayan Raju.
BSCPL INFRASTRUCTURE: CARE Ups Rating on INR690cr Loan to B+
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BSCPL Infrastructure Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 690.00 CARE B+; Stable Revised
Facilities from CARE D
Short term Bank 70.00 CARE A4 Revised from CARE D
Facilities
Long term/Short 2,493.58 CARE B+; Stable/CARE A4 Revised
term bank from CARE D/CARE D
facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
BSCPL Infrastructure Ltd takes into account the improvement in
the liquidity position of the company on account of receipt of
sale proceeds during Q4FY17( refers to the period Jan. 1 to Mar
31) from sale of one of its road assets and healthy order book
position. The ratings are however constrained by moderate capital
structure, high group exposure albeit low pending equity
commitments and working capital intensive operations with
elongated operating cycle.
The ratings, however, are underpinned by the experience of the
promoters, track record of successful execution of projects,
steady growth in the total operating income during FY17 (refers
to April 1 to Mar 31) coupled with improvement in the
profitability margins during FY17, further improvement in
liquidity envisaged
with proposed sale of another road asset and healthy growth
opportunities in the infrastructure sector.
The ability of the company to further improve its liquidity
position is the key rating sensitivity.
Key rating weakness:
Moderate capital structure: The capital structure of the company
was moderate as on March 31, 2017. The overall gearing of the
company has improved from 1.32x as on March 31, 2016 to 1.10x as
on March 31, 2017 on account of repayment of term loans and
accretion of profits to net worth. Overall gearing however
deteriorated as on September 30, 2017 to 1.35x on account of high
mobilization advances and infusion of loans by promoters and
Special Purpose Vehicles (SPV's).
Elongated operating cycle on account of working capital intensive
nature of operation: Operating cycle of the company during FY17
was stretched and has deteriorated compared to FY16 on account of
increased collection and inventory period. High group exposure
albeit low pending equity Commitment towards its SPV's BSCPL is
an investment vehicle for the BSCPL group in the infrastructure
sector. The company has pending equity commitment towards its
SPV. On account of lack of sufficient cash flows, the company is
proposing to liquidate some of its road assets to meet the equity
commitments.
Key rating strengths
Improvement in liquidity: The operating cycle of the company was
elongated during FY17 on account of increased collection and
inventory period resulting in cash flow mismatches. However,
during Q4FY17, BSCPL liquidated one of its road asset i.e. BSCPL
Godhra Tollways Ltd (BGTL) and the sale proceeds were utilized to
regularize the delays in debt servicing. The sale transaction was
completed in March 2017 and the company has repaid all its
existing term loans of from the sale proceeds of BGTL, new
availed debt and through internal cash accruals.
Proposed sale of road asset resulting in improved liquidity
position: BSCPL Infra projects Ltd (BIPL; a wholly owned
subsidiary of BSCPL) has signed a definitive agreement for the
sale of its stake in another one of its road assets, i.e.
Simhapuri Expressway Limited. As per the definitive agreement,
sale proceeds are expected after the final completion of SEL
project, i.e. by end of March 2018. The same is expected to
result in further improvement in liquidity of the company.
Steady growth in total operating income and profitability
margins: The total operating income of the company grew by around
10% from INR966.71 crore in FY16 to INR1065.03 crore in FY17 on
account of increase in income from construction contracts
division. With decrease in the operational expenses the
profitability margins of the company have improved during the
year. During H1FY18, the company has achieved operating income of
INR406.33 crore with a PBILDTA of INR87.96 crore and PAT of
INR4.75 crore.
Healthy and diversified order book position: The company has a
healthy and diversified order book of INR6022.99 crore as on
September 30, 2017 which provides revenue visibility for the
period FY18-FY20. About 90% of the order book constitutes EPC
contract orders. Experienced promoters and management team: BSCPL
has been established by Mr Bollineni Krishnaiah, the Chairman and
his brother Mr Bollineni Seenaiah, the Managing Director of the
company. It is a Hyderabadbased conglomerate with interests in a
wide range of businesses including roads, bridges, railways,
airports and ports. Besides infrastructure, the group has
interests in real estate development, Power and steel sector,
stone crushing, education and hospitals (Krishna Institute of
Medical Sciences (KIMS).
BSCPL infrastructure Limited (erstwhile B Seenaiah & Co Projects
Limited; BSCPL) is the flagship cum holding company of the BSCPL
group. BSCPL acts as an investment vehicle of the BSCPL group for
all its investments in the infrastructure sector and is ultimate
holding company of diversified infrastructure assets of the
group. BSCPL at a standalone level is engaged in executing EPC
contracts for roads and irrigation projects. It also develops,
operates and maintains national and state highways. On a
consolidated basis, BSCPL's assets are divided into three major
segments i.e. EPC for infrastructure projects (Roads, Bridges,
Airports, Railways, Irrigation works etc), real-estate and BOT
projects. It conducts and operates through three subsidiaries,
three step down subsidiaries and five associate companies as on
March 31, 2017. BSCPL has spread its operations in India,
Afghanistan, Dubai and Nepal.
CONTINENTAL CORRUGATORS: CARE Rates INR11.20cr LT Loan B+
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Continental Corrugators Private Limited (CCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 11.20 CARE B+; Stable Assigned
Detailed Rationale and key rating drivers
The rating assigned to the bank facilities of CCPL are
constrained by small and fluctuating scale of operations and low
profitability margins, leveraged capital structure, weak debt
service coverage indicators. The ratings are further constrained
by CCPL's presence in a highly competitive industry along with
susceptibility to volatility in prices of raw material. The
rating constraints are partially offset by the experienced
promoters and moderate operating cycle.
Going forward, the ability of the CCPL to increase its scale of
operations while improving profitability margins and its
capital structure shall be the key rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small and fluctuating scale of operations: The scale of
operations stood small marked by a total operating income and
gross cash accruals of INR23.03 crore and INR0.53 crore,
respectively, in FY17 (refers to the period April 1 to March 31).
The small scale limits the company's financial flexibility in
times of stress and deprives it from scale benefits. Also,
company's total operating income has been fluctuating over the
past three years (FY15-FY17) owing to order based nature of
business. TOI has registered a decline on a y-o-y basis in FY15
and FY16, and registered a growth of around 40% in FY17 due to
higher number of orders executed.
Low profitability margins: The profitability margins of the
company have always been on the lower side for the past three
financial years (FY15-FY17) owing to low value addition and
competitive nature of industry. Further, high interest cost and
depreciation charges restricted the net profitability of the
company. The PBILDT and PAT margins stood at 5.27% and 0.78%
respectively in FY17.
Leveraged capital structure and weak coverage indicators: The
capital structure of the company stood leveraged as marked by
overall gearing ratio stood at 1.46x as on March 31, 2017. The
same improved from 3.23x as on March 31, 2016 on account of
increase in net worth base owing to infusion of funds by the
promoters. The coverage indicators of CCPL stood moderate as
marked by interest coverage ratio and total debt to gross cash
accruals of 2.28x and 13.19x respectively in FY17.
Highly competitive industry along with susceptibility to
volatility in prices of raw material: CCPL operates in
competitive segments of the industry, which is very fragmented
due to low entry barriers. There are numerous players in the
unorganized sector which increases the level of competition.
Moreover, raw material cost constitutes approximately 80% of the
total cost of production for the past three financial years.
Thus, margins are
vulnerable to fluctuation in raw material cost. Hence, the
profitability of the company is based on the ability of the
company to absorb the increase in raw material prices which will
have an impact on the profitability margins and sales
realization.
Key Rating Strengths
Experienced Promoters: CCPL is being managed by directors namely
Mr. Vinod Sachdeva and Mrs. Neena Sachdeva Both of them look
after the overall management of the company and have an
experience of more than three decades of experience in packaging
industry through their association with CCPL and other family run
businesses.
Moderate operating cycle: The operating cycle of the company
stood moderate at 10 days for FY17. The company is required to
maintain adequate inventory of raw material for smooth running of
its production process resulting into average inventory holding
of around 26 days for FY16. The company normally offers as well
as receives credit period of around 2-3 months to its customers
resulting in the average collection period of around 53 days and
average creditor period of around 69 days for FY17. The
sanctioned working capital limits remained around 80% utilized
for the pasr 12 months period ended November 30, 2017.
Faridabad (Haryana) based Continental Corrugators Private Limited
(CCPL) was established in 1997 and is promoted by Mr. Vinod
Sachdeva and Mrs. Neena Sachdeva. The company is engaged into
manufacturing of different varieties of corrugated boxes. The
manufacturing unit is located at Faridabad, Haryana with the
installed capacity of approximately 70,000 boxes per month. The
products of CCPL find application in packaging and the company
sells its products across India. The main raw material is waste
paper, dyes, kraft paper etc. is procured from companies located
in Faridabad and nearby regions.
CORROSION ENGINEERS: CRISIL Reaffirms D Rating on INR8MM Loan
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Corrosion Engineers Private Limited (CEPL) at 'CRISIL D/CRISIL
D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3 CRISIL D (Reaffirmed)
Letter of Credit 8 CRISIL D (Reaffirmed)
The ratings continue to reflect CEPL's weak liquidity, marked by
delays in debt servicing reflected in over-utilization of fund-
based limit for more than 30 days, and devolvement of letter of
credit, mainly due to a stretch in the working capital cycle.
The other credit weaknesses are the below-average financial risk
profile - marked by weak capital structure and subdued debt
protection and modest scale of operations. However, promoters
have extensive experience in industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Delays in debt servicing and weak liquidity: Bank limit remains
fully utilised with instances of overdrawl for the 11 months
through November 2017 due to delay in payment by customers. This
has resulted in cash flow mismatches. Consequently, working
capital requirement remains large with gross current assets of
more than 650 days, driven by high debtors and inventory of 332
and 328 days, respectively, as on March 31, 2017.
* Below-average financial risk profile: The total outside
liabilities to tangible networth ratio was high at 20.14 times as
on March 31, 2017. Debt protection metrics were below-average,
with net cash accrual to total debt and interest coverage ratios
of 0.03 time and 1.3 times, respectively, in fiscal 2017.
* Small scale of operations: The continued modest scale of
operations should limit business risk profile over the medium
term revenue was INR22.13 crore in fiscal 2017. Revenue may
remain stable, on account of geographical concentration in
topline as ~80% of sale accrues from Uttar Pradesh.
Strength:
* Extensive experience of the promoters: Benefits from the
promoters' four decades of experience and healthy relationships
with customers and suppliers, should support the business.
Incorporated in 1974, Delhi-based CEPL is owned and managed by Mr
Sanjay Kumar and Mr Narender Kumar. It trades poly-vinyl-chloride
(PVC) resin, plasticiser, ethylene vinyl acetate, PVC heat
stabilisers, waxes, rubber additives and other chemicals that are
used in manufacturing plastics and auto components.
ESSAR STEEL: Sale Advisers Recommend Disqualifying All Bids
-----------------------------------------------------------
Bloomberg News reports that ArcelorMittal and Russia's state-
controlled VTB Group have hit a fresh snag in their pursuit of
Essar Steel India Ltd., an insolvent producer that could fetch at
least $6 billion.
Advisers evaluating the offers for Essar Steel are recommending
that all the bids be disqualified, Bloomberg says citing people
with knowledge of the matter. A committee of Essar Steel lenders
will meet later this week to discuss the eligibility of the
proposals, the people said, asking not to be identified because
the information is private, Bloomberg relates.
Legal and accounting advisers expressed concerns to the interim
resolution professional overseeing the sale about the eligibility
of the offers from both ArcelorMittal and a rival VTB-led
consortium, the people, as cited by Bloomberg, said. The
advisers' opinion is meant as a guide, and there's no certainty
the bids will be blocked, according to the people. Any final
decision will involve the lenders' committee and India's National
Company Law Tribunal, the people said, Bloomberg relays.
ArcelorMittal, the world's biggest producer of the alloy,
submitted a higher offer than the VTB investor group, which is
backed by the son of a billionaire founder of Essar Steel, the
people said. There were only two bids for the steel company,
which could fetch a valuation of at least $6 billion, people with
knowledge of the matter said earlier, Bloomberg adds.
According to Bloomberg, Essar Steel was owned by billionaire
brothers Shashi and Ravi Ruia before being brought under a new
insolvency resolution process that was designed to clear out
distressed companies through asset sales. The two advisers based
their opinions on new Indian bankruptcy rules aimed at making it
difficult for founders of firms with long-term non-performing
loans from bidding for assets in insolvency proceedings, the
report states.
ArcelorMittal was considered ineligible to bid because it held a
stake in Uttam Galva Steels Ltd., which is classified as a
delinquent borrower, when it made its offer for Essar Steel, the
people said, Bloomberg relays. A unit of ArcelorMittal
transferred 29.1 percent stake in the Mumbai-based company to
other Uttam Galva founders, Bloomberg discloses citing an
exchange filing earlier this month.
The VTB investor group was deemed ineligible because its backers
include Rewant Ruia, the son of former Essar Steel owner Ravi
Ruia, the people said. The VTB consortium submitted a bid through
a Mauritius-based investment vehicle called Numetal, in which the
Russian financial group is the largest shareholder, people
familiar with the matter said earlier.
About Essar Steel
Incorporated in 1976, Essar Steel India Ltd. is a part of the
Essar Group and is having 10 MTPA integrated steel manufacturing
facilities at Hazira, Gujarat and iron ore beneficiation and
pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag,
Andhra Pradesh (8 mtpa). The company also owns and operates two
iron ore slurry pipelines -- one each in Odisha (Dabuna to
Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the
iron ore slurry from the beneficiation plant (located near the
iron ore mines in Dabuna and Kirandul) to the pellet plant
(located near the Paradip and Vizag ports). A large portion of
the iron ore pellets produced are intended for captive
consumption by ESIL's steel plant at Hazira for cost
optimization.
The National Company Law Tribunal (NCLT), Ahmedabad, admitted
Essar Steel's insolvency case on Aug. 2, 2017. State Bank of
India's suggested interim resolution professional (IRP) Satish
Kumar Gupta, of Alvarez and Marsal India, has been appointed as
IRP.
Essar Steel owes more than INR45,000 crore to lenders, of which
INR31,671 crore had already been declared as non-performing as of
March 31, 2016, The Economic Times disclosed. The SBI-led
consortium of 22 creditors accounts for 93% of this amount. Essar
Steel owes $ 450.67 million to SCB in debt.
Both petitions filed by State Bank of India (SBI) and Standard
Chartered Bank (SCB) for initiating insolvency proceeding under
Insolvency & Bankruptcy Code (IBC) against the steel major Essar
Steel Ltd have been admitted by NCLT on Aug. 2, according to ET.
FIRDOUS GOLD: CRISIL Hikes Rating on INR5MM Cash Loan to 'B'
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Firdous Gold Pattambi LLP (FGP) to 'CRISIL B/Stable' from 'CRISIL
B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects improvement in FGP's business
profile, marked by improved revenue and operating margin. Firm
reported revenue and operating margin of INR14.5 crore and 5.64%,
respectively in fiscal 2017, as against INR11.7 crore and 0.03%
in fiscal 2016. Consequently, the cash accrual improved to INR0.2
crore in fiscal 2017. CRISIL believes that FGP will maintain its
improved business profile due to improved scale of operation.
The ratings also reflect the modest scale of operations and
geographic concentration in revenue profile. These weaknesses are
partially offset by the extensive experience of FGP's partner.
Key Rating Drivers & Detailed Description
Weakness:
* Small scale of operations and geographic concentration in
revenue: Revenue of INR14.54 crore in fiscal 2017, reflects the
modest scale of operations. Further, the firm derives its entire
revenue from one showroom at Pattambi. Kerala, which exposes the
revenue profile to geographical concentration risk.
Strength:
* Extensive experience of the partner: The 3 decade-long
entrepreneurial experience of the partner, and need-based funding
support from group companies, will continue to support the
business risk profile.
Outlook: Stable
CRISIL believes FGP will continue to benefit from the
entrepreneurial experience of its partner. The outlook may be
revised to 'Positive' if sustained growth in revenue and
profitability leads to sizeable cash accrual. The outlook may be
revised to 'Negative' if decline in cash accrual, due to lower-
than-expected ramp-up in sales or profitability, stretch in
working capital cycle, or further capital withdrawal, weakens the
financial risk profile, particularly liquidity.
FGP, set up in 2012, retails gold jewellery at its showroom in
Pattambi, Kerala. Mr Benseer PP and Mr Mohammed Ali are the
partners.
FOREST VIEW: CRISIL Assigns D Rating to INR8MM Long Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facility of Forest View Resort (FVR).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 8 CRISIL D (Assigned)
The rating reflects irregularities in debt servicing by the firm.
It has a below-average financial risk profile and short track
record of operations. The firm, however, benefits from its
strategic location.
Key Rating Drivers & Detailed Description
* Irregularities in debt servicing: FVR's liquidity is
constrained because of seasonal revenue and ongoing capital
expenditure, resulting in irregularity in debt servicing.
Weaknesses
* Below-average financial risk profile: The firm had modest
networth of INR23 lakh and high gearing of 23 times as on
March 31, 2017. Its interest coverage was below 1 time for fiscal
2017.
* Short track record of operations: The firm has been operational
only since fiscal 2017.
Strength
* Benefits from location: The firm is located in Shimla which is
a key tourist destination in the country.
FVR is a proprietorship concern of Mr Deepanshu Gautam. The firm
has a resort, De Exotica Crest Resort and Spa, at Theoug, 28
kilometre from Shimla.
GRS ENGINEERING: CARE Assigns B+ Rating to INR6cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of GRS
Engineering Private Limited (GRSEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.00 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of GRSEPL are tempered
by modest scale of operations with low net worth base and
fluctuating profitability margins, leveraged capital structure
and weak debt coverage indicators, working capital intensive
nature of operations and profitability margins are susceptible to
fluctuation in foreign exchange prices. The rating, however,
derives benefit from long track record and experience of the
promoters for more than three decades in casting industry, growth
in total operating income during review period and growing demand
for alloy based products. Going forward, ability of the company
to increase its scale of operations and improve its profitability
margins in competitive environment and improve its capital
structure and debt coverage indicators while managing its working
capital efficiently would be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operations with low net worth base and
fluctuating profitability margins: The total operating income
(TOI) of the company remained modest at INR51.82 crore in FY17
with low net worth base of INR3.78 crore as on March 31, 2017 as
compared to other peers in the industry. The PBILDT margin of the
company is fluctuating during review period between 5.43%-11.07%
due to increase in expenses like maintenance costs, fluctuation
in raw material prices and power and fuel prices. The PAT margin
of the company has been fluctuating during review period in
between 0.06%-1.56% at the back of increasing financial expenses
and fluctuation in depreciation cost. However, the PAT margin of
the company remained thin during review period.
Leveraged capital structure and weak debt coverage indicators:
GRSEPL has leveraged capital structure during review period. The
debt equity ratio of the company remained leveraged at
5.25x as on March 31, 2017 due to the fact that the company
availed unsecured loans from directors and relatives for
purchase of new land for further expansion. Furthermore, there
have been increasing working capital bank borrowings to
support the business operations. Due to the above said factors,
the overall gearing ratio also remained leveraged at 6.77x
as on March 31, 2017. Due to increasing debt levels coupled with
low cash accruals, the Total debt/GCA of the company stood weak
at 10.60x in FY17 and PBILDT interest coverage ratio stood at
2.03x in FY17at the back of high interest cost and low PBILDT
level.
Working capital intensive nature of operations: The firm is
operating in working capital intensive nature of operations due
to inventory levels of around 2 months to meet manufacturing
requirements along with credit period extended to customers for
about 2 months to ensure regular inflow of orders. The operating
cycle of the company stood at 72 days in FY17 compared to 93 days
in FY16. The credit period availed by the firm from its suppliers
is 30-45 days. The average utilization of fund based working
capital limits of the company was utilized (70%) during the last
12 months period ended December 31, 2017.
Profitability margins are susceptible to fluctuation in foreign
exchange prices: In FY17, GRSEPL's out of total sales, 15%
belongs to export sales, exposing the profitability margins to
susceptible in fluctuation of foreign exchange prices. The
company receives payment from its customers at current exchange
rate. The firm does not have any hedging mechanism to avoid
fluctuation in foreign exchange prices.
Key Rating Strengths
Long track record and experience of the promoters for more than
three decades in casting industry: GRSEPL is promoted by Mr. B
Subraya Baliga along with family members and friends. The other
directors are Mrs. M Pushpalatha, Mr. M. Yogesh Dange, Mr. K
Dayanand Kudva and Mr. M. Manjunath Nayak. All the directors are
qualified graduates and have more than three decades of
experience as the promoters in same line of business. Due to long
term presence in the market by the partners, the firm has good
relation with customers and suppliers.
Growth in total operating income during review period: The total
operating income of the company grew by Compounded Annual Growth
Rate (CAGR) of 32.31% from INR29.60 crore in FY15 to INR51.82
crore in FY17 due to increase in orders from existing customers
as well as addition of new customers. The firm has reputed
clientele from whom it gets repeat orders. During April 1, 2017
to Nov. 30, 2017 (Provisional), the company has achieved total
operating income of INR 20 crore.
Growing demand for alloy based products: The firm is engaged in
manufacturing alloy based products like valves, pumps, bushes,
forgings, casted sleeves, flanges and fittings which finds its
application primarily in heavy engineering sectors like ship
building, refineries, chemical process plants etc. The
engineering sector is a growing market. Spending on engineering
services is projected to increase to US$ 1.1 trillion by 2020,
which is to benefit SBT.
Mysore based, GRS Engineering Private Limited (GRSEPL) was
established on April 25, 2006 as a Private Limited. The company
is promoted by Mr. B Subraya Baliga along with family members and
friends. The company is engaged in manufacturing, forging of
alloy based products and carbon Steels. Some of the major
products of GRSEPL are automotive parts, machinery spares, parts
of pumps etc. The products manufactured by the firm finds its
application in automobile and infrastructure industries. The
major clientele of the company includes companies like Wipro
Products Limited, Automotive Axels Limited ([ICRA] A+(Stable);
[ICRA]A1+; Reaffirmed as on July 11, 2017), Kennametal India
Limited, Bharat Heavy Electricals Limited (BHEL)(IND AA+
(Stable); IND A1+; Affirmed as on September, 2017), besides
others. The company also exports its products to Sweden and
Brazil. The firm purchases raw materials such as castings and
bought out items from its local suppliers. In FY17, the total
operating income of the firm comprised of 85% domestic sales and
15% export sales.
INDERA ETHNICS: CARE Assigns B Rating to INR5.0cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Indera
Ethnics and Designs Private Limited (IEDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5.00 CARE B; Stable Assigned
Short-term Bank
Facilities 0.50 CARE A4 Assigned
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of IEDPL are
constrained by its small scale of operations with low profit
margins, high inventory period leading to high working capital
intensive nature of business, leveraged capital structure with
moderate debt coverage indicators and intensely competitive
nature of the industry with presence of many unorganized players.
However, the ratings derive strength form extensive experience of
the promoters and long track record of operations.
Going forward, IEDPL's ability to increase its scale of
operations with improvement in profitability margins and
effective management of its working capital will be the key
rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with low profit margins: IEDPL is a
small player vis-a-vis other players in the retailing industry
marked by total operating income of INR11.35 crore (Rs.12.75
crore in FY16) with a PAT of INR0.03 crore (Rs.0.04 crore in
FY16) in FY17. However, the company has reported turnover of
INR10.50 crore in 9MFY18. The profit margins of the company
remained marked by moderate PBILDT margin of 10.10% and low PAT
margin of 0.28% in FY17 mainly due to its trading nature of
operations.
High inventory period leading to high working capital intensive
nature of operations: IEDPL is into retailing of branded and non-
branded apparels along with other accessories. IEDPL has to
maintain a large quantity of readymade garments for display as
well as for meeting its customer's demand. Accordingly the
average inventory period of the company remained on the higher
side which has resulted into high working capital intensive
nature of its operations. However, it receives credit of around
six months from its suppliers due to its long presence of the
industry, which mitigates the working capital intensity to a
certain extent.
Leveraged capital structure with moderate debt coverage
indicators: The capital structure of the company remained
leveraged owing to its working capital intensive nature of
operations resulting in higher dependence on bank borrowings.
Accordingly, the overall gearing ratio remained weak at 2.55x as
on March 31, 2017. The debt coverage indicators of the company
remained moderately weak marked by interest coverage of 1.37x
and total debt to GCA of 24.72xin FY17.
Intensely competitive nature of the industry with presence of
many unorganized players: Retail trading business is highly
fragmented and competitive due to presence of many players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. High competition
restricts the
pricing flexibility of the industry participants and has a
negative bearing on the profitability.
Key Rating Strengths
Experienced promoters with long track record of operations: IEDPL
is into apparel retailing business since 2005 and thus has more
than a decade of track record of operations. Being in the same
line of business since long period, the promoters have
established their brand presence in the market and the company is
deriving benefits out of this. Mr. Manjit Singh has more than
three decades of experience in the same line of business looks
after the day to day operations of the company supported by Mr.
Bishen Singh and Mr. Navpreet Singh who also have an average
experience of around a decade in same line of business.
Incorporated in April 2005, IEDPL was promoted by the Singh
family of Rourkela, Odisha. The company is into retailing of
sarees (mill made & handloom cloth), readymade garments(men,
women & kids), hosiery goods, optical jewellery, artificial
jewellery, plastic items, linens & accessories for door mats,
table covers and cushion covers along with tailoring services
through its showrooms. The company presently operates through
2showroomlocated at Rourkela, Odisha completely owned by it under
the name 'Indera Textiles'. The company deals in both branded and
non-branded readymade apparels.
JAIN HYDRAULICS: CARE Lowers Rating on INR10cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Jain Hydraulics Private Limited (JHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Revised from CARE BB-; ISSUER
NOT COOPERATING
Rating Rationale
The rating assigned to the bank facilities of JHPL is primarily
constrained on account ongoing delays in debt servicing.
Detailed description of the key rating drivers
Key rating weakness
Ongoing delay in debt servicing: There have been delays in
interest servicing of working capital borrowings on account of
stressed liquidity position due to delays in realization from the
debtors.
Delhi based, Jain Hydraulics Private Limited (JHP) was
incorporated in May 1981 by Mr. Ajay Kumar Jain and his family
members. The company is currently managed by Mr. Ajay Kumar Jain,
Mr. Ajay Jain and Mr. Ankit Jain. The company is engaged in the
manufacturing of recycling equipment used for recycling of metal,
bio medical waste and solid waste. The product portfolio of the
of the company comprises scrap baling presses, shredders &
crushers, box balers & shearers paper shredders, slag crushers &
finer etc. The company has its manufacturing unit located in
Manesar, Gurgaon and the manufacturing processes of the company
are ISO 9001:2000 certified. Further, the company has its
separate trading unit in Delhi. The company has entered into new
business of manpower consulting. JHP provides the skilled and
technical employees to the different government departments. The
company attains the contracts through tendering and bidding and
provide the employees on its on pay rolls.
KAMRUP PACKAGING: CRISIL Assigns B Rating to INR6.6MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
facilities of Kamrup Packaging Udyog (KPU).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.9 CRISIL B/Stable (Assigned)
Term Loan 6.6 CRISIL B/Stable (Assigned)
The rating reflects the firm's weak financial risk profile and
exposure to risks related to the initial stage of operation.
These weaknesses are partially offset by the extensive experience
of KPU's partners.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak financial risk profile: Debt protection metrics are
expected to remain weak during fiscal 2018, with interest
coverage ratio of less than 1 time, due to the initial stage of
operation and high interest and finance costs incurred on project
funding. Further, capital structure is also expected to be
leveraged, driven by increased working capital debt.
* Exposure to risks related to initial stage of operation:
As commercial operations commenced from February 2017, the firm
remains exposed to risks related to initial stage of operation.
Stabilisation of operations, and commensurate ramp-up in revenue
and operating profitability, during this phase remain critical.
Strength:
* Extensive experience of the partners: Benefits from the
partners' 15 years of experience and established relations with
customers and suppliers should support the business.
Outlook: Stable
CRISIL believes KPU will benefit from the extensive experience of
its partners. The outlook may be revised to 'Positive' if
increase in revenue and profitability, lead to substantial cash
accrual and strengthen liquidity. The outlook may be revised to
'Negative' if decline in cash accrual due to low offtake of goods
exerts pressure on liquidity.
Guwahati (Assam)-based KPU, manufactures different types of
corrugated boxes for use in various fast moving consumer goods
industries. The unit is located in Kamrup (Assam) and operations
are managed by Mr Arya.
M G THREADS: CARE Reaffirms B+ Rating on INR17cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
M G Threads (MGT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 17.00 CARE B+; Stable Reaffirmed
Short-term Bank
Facilities 0.70 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of MGT is constrained
on account of MGT's presence into highly fragmented and
competitive yarn manufacturing industry coupled with
susceptibility of operating margins to fluctuations in raw
material price. The ratings are also constrained due to its
partnership nature of constitution.
The ratings, however, derive strength from experienced partners
and also take into consideration successful completion of its
project.
MGT's ability to achieve envisaged level of sales and
profitability will remain the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Susceptibility of operating margins to fluctuations in raw
material price: The raw material cost accounts for higher
proportion among total operating income for MGT. The basic raw
materials used for manufacturing of polyester staple yarn (PSY)
are polyester staple fibre (PSF) and raw cotton to manufacture
cotton yarn. Prices of these raw materials are volatile in nature
which exposes its operating profitability to fluctuations in raw
material prices.
Highly fragmented and competitive nature of industry: The Indian
textile industry also faces competition from the low cost
countries like China and Bangladesh. Smaller companies are more
vulnerable to intense competition and have limited pricing
flexibility, which constrains their profitability as compared
with larger companies who have better efficiencies and pricing
power considering their scale of operations. The highly
fragmented textile processing industry restricts ability to
completely pass the volatility in cost to customers, leading to
lower profit margins.
Partnership nature of its constitution: The constitution as a
partnership firm restricts MGT's overall financial flexibility in
terms of limited access to external funds for any future
expansion plans. Furthermore, there is inherent risk of
possibility of withdrawal of capital and dissolution of the firm
in case of death/insolvency of partner which may affect financial
flexibility of the firm.
Key Rating Strengths
Successful completion of project coupled with stabilization of
operations: MGT completed project and commenced its commercial
operations from August 2017. The plant operates with an installed
capacity of 1500 MTPA. During its five months of operations in
FY18 (i.e. from August 2017 to December 2017), MGT reported total
operating Income (TOI) of INR3.52 crore.
Banaskantha-based (Gujarat), M G Threads (MGT) was established in
December 2015 by Mr Mahendra Modi, Mr Arvind Modi, Mr Hitesh Modi
and Mr Ritesh Modi to carry out business of manufacturing cotton
and polyester yarn through spinning process. MGT has completed
its green filed project to manufacture cotton and polyester yarn
with installed capacity of 1500 MT per annum at its manufacturing
facilities located at Banaskantha, Gujarat. and started its
commercial operations from August 2017 onwards. MGT has an
associate concerns viz. M G Spintex Private Limited which is also
engaged in similar line of business.
MAA BHAWANI: CRISIL Reaffirms B+ Rating on INR4MM Cash Loan
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of Maa Bhawani Ginning & Pressing (MBGP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.93 CRISIL B+/Stable (Reaffirmed)
Term Loan 1.87 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the firm's modest scale of
operations in the intensely competitive cotton ginning industry,
susceptibility to volatility in cotton prices and moderate
financial risk profile. These weaknesses are partially offset by
the proprietor's extensive experience in the cotton ginning
industry and their funding support.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale: The scale remains modest, indicated by revenue of
INR59.6 crore for fiscal 2017 in the intensely competitive cotton
ginning industry.
* Susceptibility to volatility in raw material prices: Raw
material (cotton) prices have been volatile over the past few
years and are regulated by government policies. The firm's
operating margin is susceptible to fluctuations in input prices
and changes in government regulations.
* Moderate financial risk profile: Despite small networth of INR
5.1 crore, the firm had a low gearing of 0.75 time and TOLTNW of
2 times, as on March 31, 2017.
Strengths:
* Partners' extensive experience and established business
relationships: The partners' experience of over a decade in the
cotton ginning industry and long-term relationships with
customers and suppliers will continue to support the firm.
Further, the partners infused capital of INR3.37 crore in fiscal
2017 to support incremental working capital requirement. The
funding support is likely to continue over the medium term.
Outlook: Stable
CRISIL believes MBGP will continue to benefit from its partners'
extensive experience. The outlook may be revised to 'Positive' if
there is a significant and sustained increase in revenue and
profitability, leading to higher cash accrual. The outlook may be
revised to 'Negative' if the financial risk profile, particularly
liquidity, deteriorates because of low cash accrual on account of
decline in revenue or profitability, stretch in working capital
cycle, withdrawal of capital, or large, debt-funded capital
expenditure.
Established in 2014 by Mr Sachin Madamwar, Mr Mangesh Madamwar,
Mr Sanjay Madamwar, and Mr Ashok Kanchalwar as a partnership
firm, MBGP gins and presses cotton. It has ginning and pressing
capacity of about 280 bales per day in two shifts. The units
operate at 75-80% of capacity. MBGP is based at Hinganghat in
Vidarbha (Maharashtra).
NEELI AQUA: CARE Assigns B+ Rating to INR10.43cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Neeli
Aqua Private Limited (NAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 10.43 CARE B+; Stable Assigned
Long-term/Short
Term Bank
Facilities 7.00 CARE B+; Stable/CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of NAPL are tempered
by nascent stage of operations for the processing unit resulting
in low capacity utilization levels during FY16(FY refers from
April 1 to March 31) and FY17 albeit improvement during FY17,
volatile operating margins coupled with low PAT margins,
geographic concentration risk in revenue profile, diseases prone
raw materials which are highly dependent on climatic condition,
working capital intensive nature of business and regulated nature
of industry with intense competition. The ratings are, however,
underpinned by the extensive experience of promoters in seafood
industry, expanding scale of operation with substantial growth in
revenue during FY17, accredited manufacturing facility from
various authorities coupled with benefits derived from being an
Export Oriented Unit (EOU) status and adequate raw material
supply due to presence in aquaculture zone.
The ability of the company to continue to expand the scale of
operation while maintaining the profit margins, along with
efficient management of increasing working capital requirements
and adhere to regulatory norms are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Nascent stage of operations: The company recently started its
processing unit with an installed capacity of 6,750 MT. Capacity
utilization however, remained low at 8.32% during FY16 since
facility operated for 8 months(for period August 15-March
2016).During FY17 the capacity utilization improved to 50.37%
being the first full year of operations. Volatile operating
margins coupled with low PAT margins: The operating margin of the
company has been volatile during FY15-17. PBILDT margin increased
during FY16 from 10.64% in FY15 to 29.40% in FY16 and then
declined during FY17 to 12.11%. Operating margin declined on
account of increased operational costs with commencement of
processing unit, pending stabilization of operations being first
year of operations for the processing unit. PAT margin of the
company was low at 3.09% for FY17 (3.31% in FY16) primarily on
account of high capital charge.
Geographic concentration risk in revenue profile: NAPL has high
geographical concentration as it generated about 46% of its
revenue from single country during FY17 and 95% during Q1FY18.
Any order recall from the country can subject the business
profile to volatility.
Diseases prone raw materials: There are varieties of lethal viral
and bacterial diseases that may affect shrimp. The fact that the
shrimps are kept in clusters, acts as an exponential factor in
multiplying the disease caught by a single shrimp and wipe out
the almost 90% of total shrimp population in a particular farm.
Working capital intensive nature of business: NAPL operates in
the industry where the requirement of working capital is very
high. The working capital cycle of the company moderate at 46
days in FY17 as against to 41 days in FY16. The average
utilization of working capital borrowing utilization remained
close to 90-100% during the 12 month period ended August 31,
2017.
Regulated nature of industry with intense competition: The
seafood export segment is marked by stringent regulations and
quality requirements. Many of the export destinations such as the
US, Japan, and European countries implement regulations from time
to time (including anti-dumping duty, food safety regulations,
and quality requirements) that need to be met. The seafood
processing industry is highly fragmented, marked by the presence
of several small players operating in India's coastal areas and
also intense competition neighboring countries such as Thailand,
Vietnam.
Key Rating Strengths
Extensive experience of promoters: NAPL benefits from promoters'
extensive industry experience in shrimp industry. The company's
one of the promoters Mr. K V Ramana(Managing Director) who has
over two decades of experience and expertise in shrimp industry.
Mr. Ramana looks after procurement and export functions of the
company.
Expanding scale of operation: The company has been expanding its
scale of operations. Total operating income (TOI) of the company
grew 3.67x to INR56.33 crore during FY17 with a y-o-y growth by
267.76% over FY16. TOI increased on account of increased export
sales to US. Besides that, the company has agreement with IFB
Agro Industries Ltd. to provide processing capacity and
supplementary cold storage facility which has further contributed
to the TOI during FY17.
Accredited manufacturing facility coupled with benefits derived
from being an EOU status: The processing facility of NAPL is very
well equipped and compliant with international standard of
seafood products. The processing unit is accredited with
certifications from United States Food and Drug Administration
(USFDA) and European Union (EU) Health Authorities. NAPL is an
Export Oriented Unit which earns majority of exports revenue from
USA among others.
Adequate raw material supply: NAPL's processing plant is
strategically located at Prakasam district enabling company to
procure raw materials and process them immediately. They procure
from the major coastal regions of Andhra Pradesh.
Neeli Aqua Private Limited (NAPL) was incorporated on October 13,
2005 by Mr. K V Ramana. The company is engaged in processing and
export of of Vannamei Shrimps to European Union and USA which are
its primary markets. NAPL has setup its unit with an annual
processing capacity of 6,750 Metric Tonne (MT) with the latest
technology of Individual Quick Freezing (IQF) at Prakasam
district of Andhra Pradesh. The processing & freezing facility
started its operations in August 2015.
Furthermore, NAPL has entered into agreement with IFB Agro
Industries Ltd. to process the shrimp procured by them in
Andhra Pradesh and has a minimum billing of INR 0.33 crore per
month which covers part of the company's fixed expenditure.NAPL
is an Export Oriented Unit which earns majority of exports
revenue from USA.
NOVA AGRI: CRISIL Reaffirms B Rating on INR4.5MM Long Term Loan
---------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of NOVA Agri Sciences (P) Limited (NASPL) at 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 4.5 CRISIL B/Stable (Reaffirmed)
Term Loan 2.5 CRISIL B/Stable (Reaffirmed)
The rating reflects NASPL's exposure to risks inherent in
domestic agrochemicals market, fluctuations in raw material
prices, successful acceptance of its new products and weak
financial risk profile. These rating weaknesses are partially
offset by the extensive industry experience of its promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks inherent in domestic agrochemicals market,
fluctuations in raw material prices, and successful acceptance of
its new products: The industry is marked by intense price and
product competition from local players and multi-national
companies. Acceptability of the product is yet to be seen.
NSAPL's operating margin will remain susceptible to high
competition from domestic players and increase in raw material
prices.
* Weak financial risk profile: NASPL has weak financial risk
profile marked by modest net worth and below-average debt
protection metrics.
Strengths
* Extensive industry experience of the promoters: NSAPL is aided
by the extensive experience of its promoters in the
manufacturing, and marketing of bio fertilizers and micro
nutrients for a period of over a decade.
Outlook: Stable
CRISIL believes that NASPL will benefit over the medium term from
the extensive industry experience of its promoters. The outlook
may be revised to 'Positive' if the company records higher
revenues and profitability, leading to improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if there is decline in profitability resulting in
weakening of its financial risk profile.
Incorporated in the year 2010, NASPL is engaged in the business
of manufacturing of pesticides both liquids and wettable powders.
Promoted by Mr. Mohammed Ali and Mr. Yeluri Sambasiva Rao, the
company is operates a unit at Singannaguda, Medak district
(Telangana).
Loss was INR0.85 crore on an operating income of INR1.8 crore in
fiscal 2017, vis-a-vis INR0.2 crore and INR0.8 crore,
respectively, in fiscal 2016.
PANCHANAN COLD: CARE Reaffirms B Rating on INR4.74cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Panchanan Cold Storage Private Limited (PCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 4.74 CARE B; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of PCPL is constrained
by its small scale of operation with moderately low net profit
margins, regulated nature of the industry, competition from local
players, seasonality of business with susceptibility to vagaries
of nature, risk of delinquency in loans extended to farmers and
working capital intensive nature of business resulting in
leveraged capital structure. The aforesaid constraints are
partially offset by its experienced promoters with long track
record of operations and proximity to potato growing areas. Going
forward, ability to increase its scale of operation and
profitability margins and ability to manage working capital
effectively are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Strengths
Experienced promoters with long track record of operations: The
main promoter of PCPL, Shri SibaramSamanta (Managing Director,
aged about 50 years) has more than two decades of experience in
similar line of business and is involved in the strategic
planning and running the day to day operations of the company. He
is being duly supported by the other director Shri. Ayan Samanta
(Director, Age: 28 years) and Shri Sayan Samanta (Director, Age:
24 years) and a team of experienced personnel. Further, PCPL
commenced commercial operation in 1989 and accordingly has a long
track record of commercial operations.
Proximity to potato growing areas: The said cold storage is
located in potato growing belt of Hooghly district of West
Bengal, having large network of potato growers along with potato
traders, thereby making it suitable for the farmers and traders
in terms of transportation and connectivity and ensures company's
higher level of capacity utilization.
Key Rating Weaknesses
Small scale of operations with moderately low net profit margins:
PCPL is a relatively small player in the cold storage business
having total operating income and net loss of INR4.14 crore and
INR 1.01 crore respectively, in FY17. The total capital employed
was also low at around INR12.51 crore as on March 31, 2017. Small
scale of operations with low net worth base limits the credit
risk profile of the company in an adverse scenario. PBILDT margin
which was moderately satisfactory at 40.27% in FY17 primarily on
the back of better operating efficiency translated from
absorption of fixed overheads. The company has achieved a
turnover of INR2.20 crore for 9MFY18.
Regulated nature of industry: In West Bengal, the basic rental
rate for cold storage operations is regulated by state government
through West Bengal State Marketing Board. Due to ceiling on the
rentals to be charged it is difficult for cold storage units like
PCPL to pass on sudden increase in operating costs leading to
downward pressure on profitability.
Competition from other local players: Despite being capital
intensive, entry barrier for setting up of new cold storage unit
is low on account of government support and high demand for cold
storages in West Bengal. The storage business is highly
competitive in the potato growing regions of the state as it is
the second largest producer of potato in India. In view of the
same, cold storage business is highly competitive in this region
forcing cold storage owners to lure farmers by offering them
lower rental and other services.
Seasonality of business with susceptibility to vagaries of nature
PCPL's operations are seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of
February and lasts till March. Additionally, with potatoes having
a preservable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period between December to February.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent
on the basis of quantity stored and the production of potato and
other vegetables is highly dependent on vagaries of nature.
Risk of delinquency in loans extended to farmers: Against the
pledge of cold storage receipts, PCPL provides interest bearing
advances to the farmers & traders. Before the closure of the
season in November, the farmers & traders are required to clear
their outstanding dues with the interest. In view of this, there
exists a risk of delinquency in loans extended, in case of
downward correction in potato or other stored goods prices, as
all such goods are agro commodities.
Working capital intensive nature of business resulting in
leveraged capital structure: The capital structure of the company
remained leveraged marked by high debt equity ratio and overall
gearing ratio during the last three account closing dates. Debt-
equity ratio deteriorated from 3.82x as on March 31, 2016 to
9.62x as on March 31, 2017 on account of availment of long term
loan for the expansion of its existing storage capacity and
decrease of tangible net worth during the period. Overall gearing
ratio deteriorated from 8.16x as on Mar.31, 2016 to 21.89x as on
March 31, 2017 on account of higher utilisation of working
capital limits on account of growing nature of operations. Total
debt to GCA also remained high at 38.07x in FY17 (33.81x in
FY16).
Panchanan Cold Storage Private Ltd. (PCPL) was incorporated on
January 16, 1989 by Jaiswal family of Hooghly, West Bengal to
provide cold storage services with the facility being located at
village: Olipur, Hooghly, and West Bengal. However, the earlier
promoters were unable to run the management efficiently and the
current promoters Shri Ayan Samanta, Shri Sayan Samanta and Shri
Sibaram Samanta of Hooghly, West Bengal took over from the
earlier management in November, 2014. PCPL is currently engaged
in the business of providing cold storage facility at the same
location primarily for potatoes and is operating with a storage
capacity of 1,79,000 quintals. Besides providing cold storage
facility the unit also works as a mediator between the farmers
and marketers of potato, to facilitate sale of potatoes stored
and it also provides interest free advances to farmers for
farming purposes of potato against potato stored. Further, PCPL
commenced trading of potatoes from FY14 onwards. During FY15,
PCPL undertook a capacity expansion project thereby enhancing the
capacity from 1,03,000 quintals to 1,79,000 quintals since March,
2015.
Shri SibaramSamanta (MD) looks after the day to day operations of
the unit with the help of other directors a team of expert
professionals who are having an relevant experience in the
similar line of business.
PARAMOUNT BLANKETS: CARE Lowers Rating on INR21cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Paramount Blankets Private Limited (PBL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 21.00 CARE D; ISSUER NOT COOPERATING
Facilities Revised from CARE C; ISSUER NOT
COOPERATING
Long-term/Short- 1.00 CARE D; ISSUER NOT COOPERATING
term Bank Revised from CARE C/CARE A4;
Facilities ISSUER NOT COOPERATING
Rating Rationale
The rating assigned to the bank facilities of PBL is primarily
constrained on account ongoing delays in debt servicing.
Detailed description of the key rating drivers
Key rating weakness
Ongoing delay in debt servicing: There have been delays in debt
servicing and interest payment of bank facilities on account of
stressed liquidity position.
Paramount Blankets Private Limited (PBL) was incorporated as a
private limited company in 2004 by Mr Sat Bhusan, Mr Mukesh Gupta
and Mr Rakesh Dayal. PBL is currently being managed by Mr Sat
Bhusan, Mr Mukesh Gupta, Mr Rakesh Dayal and Mr Rajiv Gupta. The
company is engaged in manufacturing and trading of blankets such
as mink blanket, polar fleece. PBL procures the raw material i.e.
polyester yarn from yarn manufactures in Gujarat and Haryana.
POORVI HOUSING: CRISIL Assigns B Rating to INR15MM Cash Loan
------------------------------------------------------------
CRISIL has revoked the suspension of its rating on bank
facilities of Poorvi Housing Development Company Private Limited
(PHDC), and has assigned its 'CRISIL B/Stable' rating to the
facilities. The rating was 'suspended' vide rating rationale
dated September 23, 2016, as the company had not provided
information required for the rating review. PHDC has now shared
the requisite information, enabling CRISIL to assign a rating to
its bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B/Stable (Assigned;
Suspension Revoked)
Proposed Term Loan 5 CRISIL B/Stable (Assigned;
Suspension Revoked)
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to intense competition, and susceptibility to risks
inherent 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
because of the presence of a large number of regional players.
Moreover, the multiplicity of property laws and non-standardized
regulations across states are likely to affect tenure of project
implementation. The risk is compounded by the aggressive
completion timelines and shortage of manpower (project engineers
and skilled labor) in this sector.
* Susceptibility to risks related to completion and saleability
of its ongoing real estate projects: PHDC is exposed to risks
related to the execution and saleability of its ongoing project.
Given, the high dependence on debt for funding the construction
costs, any delays in the sanction of the debt are likely to
derail the construction progress. The timely sale of the
apartments and the flow of the customer advances would be
critical for ensuring adequate liquidity position and hence
timely repayment of the term loan. CRISIL believes that the cash
flows and hence the credit risk profile of the company will
remain susceptible to timely completion and saleability of the
projects.
Strength:
* Extensive experience of promoter in the real estate development
segment: PHDC's business risk profile is strengthened by the
extensive experience of its promoters in the real estate
business. The company is promoted by Mr. Prakash Naik, who
ventured into the residential real-estate segment in 2010 through
a partnership firm Poorvi Developers (PD). The promoters have
successfully completed five residential projects in South
Bengaluru region. CRISIL believes that PHDC will continue to
benefit over the medium term from the extensive experience of its
promoters in real estate development.
Outlook: Stable
CRISIL believes PHDC will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of a significant
increase in cash flows, supported by early completion of, or
significantly high realizations from, the ongoing project.
Conversely, the outlook may be revised to 'Negative' in case of
delays in project completion or in receipt of payments from
customers, a slowdown in booking, or an additional, large, debt-
funded project, leading to deterioration in liquidity.
Incorporated in 2013, PHDC is engaged in residential real estate
construction in Bangalore (Karnataka). The promoters have been
associated with group entity Poorvi Developers and have completed
five projects in the South Bengaluru region. The day-to-day
operations of the company are managed by Mr. Prakash S Naik.
PUNJAB NATIONAL: Fitch Puts bb Viability Rating on Watch Neg.
-------------------------------------------------------------
Fitch Ratings has placed Punjab National Bank's (PNB) Viability
Rating of 'bb' on Rating Watch Negative (RWN), following the
large fraud reported by PNB. Fitch will resolve the Rating Watch
once more clarity emerges on the extent of control failures and
the impact on PNB's financial position.
At this stage, Fitch does not view this event to have an impact
on PNB's Support Rating Floor (BBB-) due to the bank's high
systemic importance as the second-largest state-owned bank. Fitch
believe that the state's propensity to provide extraordinary
support to PNB remains high, subject to the sovereign's ability,
which is captured in India's sovereign rating of 'BBB-'.
KEY RATING DRIVERS
VIABLITY RATING
The RWN reflects the possibility of a downgrade of PNB's
Viability Rating following the detection of a large fraud in one
of the bank's branches amounting to USD 1.8 billion. While the
exact financial impact from this event is still being
ascertained, it has raised questions on both internal and
external risk controls as well as the quality of management
supervision considering that the fraud went undetected for
several years.
PNB's asset quality and capital parameters continue to be weak
but have shown some stability since Fitch's rating action in June
2017. For the nine months of financial year to December 2018
PNB's non-performing loan (NPL) ratio eased to 12.1% (12.5%
FYE17) while its CET1 ratio improved to 8.05% (7.9%).
Profitability continued to be weak but the bank raised INR50
billion (USD770 million) in fresh equity from the capital markets
in 3QFY18. PNB is also likely to get an additional INR54 billion
(USD850 million) from the government by end-March 2018 under the
government's recapitalisation agenda.
However, this recent fraud event has been a setback for the bank
in its reputation and has had a capital market impact.]
RATING SENSITIVITIES
VIABILITY RATING
Fitch will look to resolve the RWN once clarity emerges on the
extent of control failures within PNB and how management plans to
address them. Significant control failures that attract
substantial management time to rectify would be likely to weaken
Fitch view of risk appetite and management, and result in a
downgrade of the VR.
In addition, the agency will monitor PNB's full liability,
potential recoveries and the extent of additional fresh capital
from both internal and external sources (eg government) to
determine if the bank's financial position is no longer
consistent with the current VR.
PNB's other ratings are unaffected by this action and are:
- Long-Term IDR at 'BBB-; Outlook Stable
- Short-Term IDR at 'F3'
- Support Rating at '2'
- Support Rating Floor at 'BBB-'
SEABOY FISHERIES: CRISIL Reaffirms B+ Rating on INR5MM Loan
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Seaboy Fisheries Private Limited (SFPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Discounting
Bill Purchase 1 CRISIL A4 (Reaffirmed)
Packing Credit 5 CRISIL B+/Stable (Reaffirmed)
The ratings reflect its modest scale of operations in the
competitive seafood processing and export industry, average
financial risk profile because of leveraged capital structure and
susceptibility of operating margin to volatility in raw material
prices and foreign exchange (forex) rates, and to inherent
industry risks. These weaknesses are partially offset by the
extensive experience of its promoters.
Analytical Approach
Unsecured loans of INR87 lakh have been treated as 75% equity and
25% debt as these are non-interest bearing and subordinate to
bank debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations in the competitive seafood processing
and export industry: With revenue of about INR25 crore in fiscal
2017 and aggregate capacity of 35 tonne per day (low compared to
other players), scale remains modest in the highly fragmented
seafood processing segment.
* Average financial risk profile: Total outside liabilities to
adjusted networth ratio was weak at 3.2 times as on March 31,
2017. However, ratio is expected to improve over the medium term
with absence of debt-funded capital expenditure (capex). Debt
protection metrics were moderate, with interest coverage ratio of
2.7 times in fiscal 2017. Liquidity is moderate, reflected in
moderate bank limit utilisation and adequate cash accrual against
nil debt obligation.
* Susceptibility of margin to volatility in raw material prices
and forex rates, and to inherent industry risks: As the company
mostly exports its products, it is susceptible to changes in the
regulations of importing countries such as Japan, China, and
Spain; where norms governing seafood trade are strict. Any ban on
shrimp and fish imports due to outbreak of disease in India may
adversely affect SFPL's operating margin. Imposition of duty to
protect local producers may also affect performance.
Strength
* Extensive experience of promoters: Presence of around 20 years
in the seafood industry has enabled the promoters to expand
operations and establish healthy relationship with customers.
Outlook: Stable
CRISIL believes SFPL will continue to benefit over the medium
term from promoters' extensive experience and established
customer relationship. The outlook may be revised to 'Positive'
if better-than-expected cash accrual improves financial risk
profile. The outlook may be revised to 'Negative' if revenue and
operating margin decline or large, debt-funded capex further
weakens financial risk profile.
Established in 2004 in Thiruvananthapuram, Kerala, by Mr Anil
Vincent, Mr Jose Vincent, and Mr Sunil Vincent, SFPL processes
and exports seafood.
SECURENS SYSTEMS: CRISIL Withdraws B+ Rating on INR3MM Term Loan
----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Securens Systems Private Limited (SSPL) and subsequently
withdrawn the ratings at the company's request and on receipt of
no-objection certificate from the bankers. The withdrawal is in
line with CRISIL's policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Rating reaffirmed
and Withdrawal)
Cash Credit 0.75 CRISIL B+/Stable (Rating
reaffirmed and Withdrawal)
Proposed Long Term
Bank Loan Facility 2.25 CRISIL B+/Stable (Rating
reaffirmed and Withdrawal)
Term Loan 3 CRISIL B+/Stable (Rating
reaffirmed and Withdrawal)
SSPL, incorporated in 2012 by Mr. Sunil Udupa and Mr. Srinivas
Popuri, is engaged in providing security services like
installation of surveillance equipment, maintenance and
monitoring of the site, primarily ATMs.
SHREE RAMKRISHNA: CARE Reaffirms B+ Rating on INR9.50cr LT Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shree Ramkrishna Oil Industries (SROI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long- term Bank
Facilities 9.50 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SROI continues to
remain constrained on account of its moderate scale of operations
with low profitability during FY17 (refers to the period April 1
to March 31), moderate capital structure, weak debt coverage
indicators and moderate liquidity position. Further, the rating
also continue to remain constrained owing to partnership nature
of constitution, susceptibility of operating margins to cotton
price fluctuations, its presence in highly fragmented, seasonal
and regulated cotton industry with limited value addition. The
rating, however, continues to derive benefit from the vast
experience of promoters and locational advantage in terms of
proximity to the cotton-growing region in Gujarat. The ability of
SROI to increase its scale of operations and improve its overall
financial risk profile by improving its profitability, capital
structure and debt coverage indicators via efficient working
capital management would remain the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Moderate Scale of operation along with low profit margins: The
scale of operation of SROI stood moderate marked by total
operating income of INR61.56 crore during FY17. The profit margin
of SROI remained thin on account of limited value addition and
presence in the highly competitive segment of the cotton
industry.
Moderate capital structure, weak debt coverage indicators and
moderate liquidity position: The capital structure of SROI stood
moderate marked by overall gearing ratio of 1.63 times as on
March 31, 2017 on account of high debt. As a result of its thin
profitability, the debt coverage indicators deteriorated and
remained weak marked by high ratio of total debt to GCA of 45.81
times during FY17. The liquidity position stood moderate marked
by current ratio of 1.55 times as on March 31, 2017.
Partnership nature of constitution: The constitution as a
partnership firm restricts SROI's overall financial flexibility
in terms of limited access to external funds for any future
expansion plans. Further, there is inherent risk of possibility
of withdrawal of capital and dissolution of the firm in case of
death/insolvency of partner. Susceptibility of operating margins
to cotton price fluctuations The profitability of SROI is exposed
to fluctuations in raw material prices, which is being
agricultural commodity its prices are volatile in nature and
linked to production in the domestic market. Further, the supply
of key raw materials is primarily dependent upon monsoon during a
particular year as well as overall climatic conditions. Hence any
adverse movement in cotton prices would impact profitability of
the firm.
Presence in the highly fragmented, seasonal and regulated cotton
industry with limited value addition: SROI is engaged in the
ginning and pressing of cotton which involves very limited value
addition and hence results in thin profitability SROI operates in
industry characterized by low entry barriers, high fragmentation,
the presence of a large number of players in the organized and
unorganized sector and very low bargaining power against its
customers puts pressure on the profitability margins. Further,
cotton being a seasonal crop as it is available mainly from
November to February results into a higher inventory holding
period for the business. Furthermore, the cotton prices in India
are highly regulated by government through MSP (Minimum Support
Price) fixed by government. Any adverse change in
government policy may also impact the prices of raw cotton in
domestic market and could result in lower realizations and
profit.
Key rating strengths
Experienced partners: Mr. Bharatbhai Patel, Mr. Manjibhai
Narshibhai Patel, Mr. Bhudarbhai Shankarbhai Patel and Mr.
Laljibhai Chaturdas Patel are key partners of SMOI, who holds
more than a decade of experience in the industry and jointly look
after overall operation of the firm.
Proximity to the cotton-producing region of Gujarat: The
processing facility of SROI is located at Kadi (Gujarat). Gujarat
is one of the major cotton producing states hence, SROI's
presence in cotton producing region results in benefit derived
from lower logistic expenditure (both on transportation and
storage), easy availability and procurement of raw materials at
effective prices and consistent demand for finished goods
resulting in easy access to customer base.
Kadi (Gujarat) based SROI was established in the year 1986 as a
partnership firm by 11 partners with Mr. Bharatbhai Bhudarbhai
Patel, Mr. Manjibhai Narshibhai Patel, Mr. Bhudarbhai Shankarbhai
Patel and Mr. Laljibhai Chaturdas Patel being the key partners
who are actively involved in business operations. SROI is engaged
in cotton ginning & pressing and seed crushing with installed
capacity of 52.48 MT of cotton bales per day, 49.5 MT of oil cake
per day and 7.00 MT of cotton seed wash oil per day as on
March 31, 2017.
SHRI GANESH: CRISIL Reaffirms B Rating on INR4MM Term Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-
term bank facility of Shri Ganesh Agro Products (SGAP; a part of
the Shri Ganesh group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 2 CRISIL B/Stable (Reaffirmed)
Term Loan 4 CRISIL B/Stable (Reaffirmed)
Working Capital
Facility 0.6 CRISIL B/Stable (Reaffirmed)
Warehouse Financing 2.4 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the group's modest scale of
operations, exposure to risks related to intense competition and
volatile raw material prices, and average financial risk profile.
These weaknesses are partially offset by the experience of the
partners and their funding support.
Analytical Approach
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Shri Ganesh Agro Industries (CRISIL
B/Stable) (SGAI) and SGAP, together referred to herein as the
Shri Ganesh group. That's because both the entities are in the
same line of business, under a common management.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations amid intense competition: Small
scale, with revenue of INR40.3 crore in fiscal 2017, amidst
intense competition, limits the pricing power with suppliers and
customers, and thus, constrains profitability.
* Exposure to volatile raw material prices: The price of paddy,
the key raw material has been highly volatile over the past few
years, and is highly regulated through government policies. Thus,
operating margin remains susceptible to fluctuations in input
prices.
* Average financial risk profile: Financial risk profile is
marked by a small networth and high gearing of INR2 crore and
3.82 times, respectively, as on March 31, 2017.
Strength
* Extensive experience of the partners, and their funding
support: The five decade-long experience of the partners, and
their healthy relationships with customers and suppliers, should
continue to support the business. Partners may continue to extend
funding support via unsecured loans (outstanding at INR0.79 crore
as on March 31, 2017) to aid liquidity.
Outlook: Stable
CRISIL believes the group will continue to benefit from the
experience of its partners. The outlook may be revised to
'Positive' if substantial growth in revenue and profitability, or
a capital infusion by the partners, along with prudent working
capital management, strengthen the financial risk profile. The
outlook may be revised to 'Negative' if an aggressive, debt-
funded expansion, significant decline in revenue and
profitability, or sizeable capital withdrawal by the partners,
weakens the financial risk profile.
SGAI and SGAP were set up in 2010 and 2017, respectively. Both
firms are partnerships between Mr Dinesh Bhutada and Mr Survesh
Bhutada. The group mills and processes paddy into rice, bran, and
broken rice. Processing facilities at Gondiya (Maharashtra) have
an installed capacity of about 8 tons per hour.
STAR ORGANIC: CRISIL Lowers Rating on INR3MM Loan to D
------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated the rating
on bank facilities of Star Organic Foods Inc (SOFI) to 'CRISIL
B/Stable/CRISIL A4/Issuer Not Cooperating'. However, the
management subsequently started sharing the information necessary
for carrying out a comprehensive review of the rating.
Consequently, CRISIL is downgrading the rating from 'CRISIL
B/Stable/CRISIL A4/Issuer Not Cooperating' to 'CRISIL D/CRISIL
D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Bill
Discounting 3 CRISIL D (Downgraded from
'CRISIL A4' Issuer Not
Cooperating)
Letter of Credit 1 CRISIL D (Downgraded from
'CRISIL A4' Issuer Not
Cooperating)
Long Term Loan 1.85 CRISIL D (Downgraded from
'CRISIL A4' Issuer Not
Cooperating)
Packing Credit 5 CRISIL D (Downgraded from
'CRISIL B/Stable' Issuer
Not Cooperating)
Proposed Long Term 0.15 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable' Issuer
Not Cooperating*)
The downgrade reflects delays in servicing term debt obligations
owing to weak liquidity.
The rating also reflects weak financial risk profile, exposure to
risks inherent in seafood industry and large working capital
requirements. These weaknesses are partially offset by the
Benefits derived from extensive experience of promoters in the
seafood industry.
Analytical Approach
For arriving at its ratings, CRISIL has considered SOFI on
standalone basis. CRISIL has, however, discontinued its earlier
approach of combining the business and financial risk profiles of
SOFI with Star Agro Marine Exports (P) Ltd, Star Aqua
International Pvt. Ltd. (SAIPL), Star Agro Marine Inc (SAMI), and
Star Agro Marine Foods Ltd (SAMFL). The change in analytical
approach is on account of the management's decision to operate
SOFI independently.
Key Rating Drivers & Detailed Description
Weakness:
* Delay in debt servicing: The company has delayed servicing term
loan owing to stretched liquidity.
* Weak Financial Risk profile: The financial risk profile of the
company is marked by low networth, high gearing and weak debt
protection metrics. The company has low networth of around
INR2.15 crores as on March 31, 2017. Consequently, the gearing
stood at around 4.59 times as on the same date. Majority of the
total debt includes working capital borrowings. The company has
weak debt protection metrics as indicated by its NCATD of around
3 percent and interest coverage ratio of around 1.48 times as on
March 31, 2017. Financial risk profile is expected to remain weak
over the medium term.
* Large working capital requirements: SOFI operations are working
capital intensive indicated by its high GCA of around 281 days of
sales as on March 31, 2017. The firm maintains an average
inventory of around 4 to 5 months of cost of sales to support its
operations. The high inventory is partially on account of the
firms fully integrated operations which include its presence from
the shrimp farming to cold storage of processed shrimp and
exports. Hence, the firm's inventory is likely to consist of live
shrimp being cultivated in addition to the pre-processed and
frozen shrimps ready for exports. While, the firm offers a credit
of around 60-70 days of sales to its customers, it receives a
credit of around 1-2 months of cost of sales from its raw
material suppliers thereby partially assuaging its working
capital requirements. Consequently, the firm's bank limits are
fully utilised over the past 12 months ended December 2017.
CRISIL believes that SOFI's operations will remain working
capital intensive over the medium term owing to its significant
inventory holding requirements.
* Exposure to risks inherent in seafood industry: The firm's
business profile is exposed to risks inherent to the seafood
industry. The seafood industry is marked by uncertainty, which is
more pronounced on the supply side than on the demand side. The
industry is subject to strict regulations on excess fishing and
restriction on trawling etc. Furthermore, the industry is
susceptible to the outbreak of diseases, natural calamities and
increasing prices of commodities such as diesel, ice, nets,
fishing gear, boats, and trawlers. Further, adverse government
regulation of cross-border sea food trade by countries also
affects the operations of the players in the shrimp export
segment. While the firm is partially guarded against risks such
as disease outbreaks owing to its fully integrated operations
thereby ensuring a firm control on quality, CRISIL believes that
firm's business risk profile will remain susceptible to risks
inherent in the seafood industry.
Strengths
* Benefits derived from extensive experience of promoters in the
seafood industry: Firm's business risk profile benefits from the
extensive industry experience of its promoters in the seafood
industry. The firm is promoted and managed by Mrs. Shaik Sharmila
and Mrs. Shaik Fouziabanu who has been associated with the Shrimp
export segment of the seafood industry for more than a decade.
The extensive industry experience of the promoters have enabled
the firm to maintain established relationships with customers and
suppliers. CRISIL believes that firm's business risk profile will
continue to benefit from the extensive industry experience of its
promoters and its established presence in the seafood export
segment in Nellore.
SOFI is a partnership firm incorporated in 2011 and engaged in
exports of shrimps, providing cold storage facilities for the
group entities and shrimp pre-processing in addition to sale to
local traders for shrimp exports. The entity was initially
involved in trading of organic fruits in addition to shrimps till
April 2011. The firm is located in Nellore, Andhra Pradesh (AP).
Profit after tax was INR0.06 crore on revenue of INR42.88 crore
in fiscal 2017, against INR0.35 crore on revenue of INR13.33
crore in fiscal 2016.
SVR ELECTRO: CRISIL Reaffirms B+ Rating on INR2.9MM Secured Loan
----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank loan facilities of
SVR Electro Projects Private Limited (SVR) at 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 7.1 CRISIL A4 (Reaffirmed)
Secured Overdraft
Facility 2.9 CRISIL B+/Stable (Reaffirmed)
The ratings reflect a modest scale of operations and geographical
concentration in revenue. The rating also factors in a below-
average financial risk profile and working capital-intensive
operations. These rating weaknesses are partially offset by the
extensive experience of the promoters in the heavy electric
equipment and engineering procurement, and construction (EPC)
industry, and revenue visibility because of moderate orders in
hand.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and geographical concentration in
revenue: Revenue was modest at INR19.12 crore in fiscal 2017. The
company undertakes EPC contracts in the power sector and also
civil construction, primarily in the irrigation segment. Any
slowdown in infrastructure spending or operational delays may
affect the flow of orders and thus impact revenue. Furthermore,
the industry is highly fragmented with low entry barriers,
leading to intense competition. This, coupled with the tender-
based process of obtaining projects from government departments,
significantly affects the business and financial risk profiles.
Revenue is mainly derived from Telangana, Andhra Pradesh, Orissa,
and Bihar. The modest scale of operations will continue to
constrain the business risk profile over the medium term.
* Below average financial risk profile: The networth was modest
at INR1.12 crore against total debt of INR2.94 crore, resulting
in a gearing of around 2.61 times, as on March 31, 2017. The
interest coverage ratio was 2.28 times and the net cash accrual
to adjusted debt ratio 0.22 time, in fiscal 2017; the metrics are
expected to remain at these levels over the medium term.
The financial risk profile is expected to remain below average
over the medium term due to a modest networth, high gearing, and
moderate debt protection metrics.
* Working capital-intensive operations: Gross current assets were
high at 137 days, driven by debtors of 88 days and inventory of
14 days, as on March 31, 2017. Also, various deposits are
required to be maintained with government agencies along with
retention money and margin money for bank guarantee. Debtors and
inventory are expected to be around similar levels over the
medium term. Working capital requirement is funded through bank
lines that have been 97% utilised over the nine months through
December 2017. Creditors were at 19 days as on March 31, 2017,
and are expected to be at a similar level over the medium term.
Operations are likely to remain working capital intensive over
the medium term.
Strengths
* Extensive industry experience of the promoters, and revenue
visibility on account of moderate orders in hand: The promoters
have an experience of decade in the heavy electric equipment and
EPC industry. This has resulted in a healthy relationship with
various suppliers and key principals. Revenue has grown at a
healthy pace since inception and was INR19.1 crore in fiscal
2017. Revenue was INR20.0 crore for the 10 month through January
2018. There were orders of INR90 crore as on January 31, 2018, to
be executed over the next two years, providing medium term
revenue visibility.
Outlook: Stable
CRISIL believes SVR will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of a significant and sustained increase in
revenue, along with improvement in margins, working capital
cycle, and capital structure. The outlook may be revised to
'Negative' if a significant decline in revenue or margins, a
stretched working capital cycle, or any large, debt-funded
capital expenditure, weakens the financial risk profile.
SVR was established in 2014, promoted by Mr Radha Krishna A, Mr K
Ramanaih, and Mr V Srihari. The company, based in Hyderabad,
undertakes EPC contracts for setting up of transmission lines,
sub-stations, and distribution lines for state power utilities.
It also undertakes civil construction, primarily in the
irrigation segment.
Profit after tax was INR0.59 crore on revenue of INR19.12 crore
in fiscal 2017, against INR0.25 crore and INR12.92 crore,
respectively, in fiscal 2016.
TRUBA ADVANCE: CARE Reaffirms B Rating on INR3.34cr LT Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Truba Advance Sciences Kombine (Truba), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 3.34 CARE B; Stable Reaffirmed
Short-term Bank
Facilities 7.50 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings of Truba continue to remain constrained on account of
its modest scale of operations and moderate profitability along
with moderate debt coverage indicators. The ratings are, further,
continue to remain constrained on account of stressed liquidity
in highly regulated education industry with regard to approvals
and accreditations. The ratings, however, continue to favourably
take into account wide experience of promoters in the education
sector and established operational track record coupled with
moderate enrolment ratio. The ratings, further, also takes into
account its comfortable capital structure.
The ability of the firm to increase its scale of operations while
maintaining profitability and better management of working
capital would be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Marginal decline in Total Operating Income (TOI): During FY17,
Total Operating Income (TOI) of Truba declined marginally by
4.44% to INR20.35 crore as against INR21.30 crore during FY16
mainly on account of lower number of students enrolled. In
academic year 2017, the number of enrolled students has declined
to 772 from 920 in AY16, which were 940 in AY15.
Stressed liquidity position: Truba collects 50% of fee in the
beginning of academic year in July for all courses and remaining
is received in January from the students. However, the operating
expenses of the society are spread evenly throughout the year.
Hence, liquidity of Truba remained stressed. Out of total fee
receivable of INR13.10 crore as on March 31, 2017, INR 4.77 crore
has been recovered as on December 31, 2017. Further, the cash
flow from operating activities stood at INR1.78 crore in FY17
against INR1.39 crore in FY16 mainly due to lower working capital
gap.
The society has almost full utilized its working capital
borrowings during last twelve month ended December 2017.
Key Rating Strengths
Improvement in profitability margins: The profitability margins
continued to remain moderate marked by SBID margin and surplus
margin of 22.39% and 11.03% respectively in FY17.
Comfortable capital structure and moderate debt coverage
indicators: The capital structure of Truba has improved and stood
comfortable with overall gearing of 0.55 times as on March 31,
2017. Further, the debt service coverage indicators of the
society continued to remain moderately high marked by total debt
to gross cash accruals at 8.05 times as on March 31, 2017. The
interest coverage ratio stood moderate at 1.70 times as on
March 31, 2017.
Bhopal-based (Madhya Pradesh), Truba Advance Science Kombine was
formed in August, 2000 as a Society under the Madhya Pradesh
Registrar Firm and Society, 1973 by Mr. Shyam Rathore, Mr.
Dharmendra Singh Raghuvanshi and Mr. Sunil Dandir with the object
of setting up professional education institutions. Presently,
Truba offers various graduation and post-graduation courses in
Engineering and Pharmacy through three educational institutions
named Truba Institute of Engineering and Information Technology
(TIEIT; started in 2000), Truba College of Science and Technology
(TCST; started in 2009), Truba Institute of Pharmacy (TIP;
started in 2005). The trust started offering post-graduation
courses of Engineering in TIEIT in AY07 and in TCST in AY12.
Truba has also started post-graduation courses in Pharmacy in
AY08. Engineering colleges of Truba are affiliated to Rajiv
Gandhi Prodhoyogic Vishva Vidhyalaya, Bhopal and Pharmacy College
is recognized by Council of Pharmacy.
===============
M A L A Y S I A
===============
MALAYSIA PACIFIC: Faces Wind Up Petition Over MYR118.16MM Debt
--------------------------------------------------------------
The Edge Financial Daily reports that Malaysia Pacific Corp Bhd
(MP Corp), a Practice Note 17 (PN17) company, has been served
with a winding-up petition by RHB Bank Bhd, demanding repayment
of debt totalling MYR118.16 million.
The case management was fixed for Feb. 21, MP Corp said in a
stock exchange filing Feb. 20. "The company will be seeking legal
advice on the above and will make further announcement in due
course," it added.
According The Edge Financial Daily, the debt-laden company's
balance sheet shows its main assets were land held for
development that was worth MYR211.8 million and current assets
held for sales that were worth MYR256 million as at Sept 30,
2017. Its net asset per share stood at 46 sen per share.
MP Corp, which has accumulated losses of MYR154.08 million, has
been wanting to sell part of Wisma MPL that it bought from tycoon
Tan Sri Quek Leng Chan to raise fresh funds to revive its
financial health, notes the report. Unfortunately, the company
has yet to find a buyer for the office building located in the
'Golden Triangle' along Jalan Raja Chulan. It is not easy to find
a buyer mainly because it is a strata-titled office block.
The Edge Financial Daily says the company is facing a cash-flow
problem. It had a negative cash flow of MYR92.1 million as at
Sept 30, 2017.
On June 14, 2016, MP Corp had received a notice of statutory
demand from RHB Bank, seeking the repayment of the debt or risk
winding-up petition proceedings against the company, the report
notes. The sum comprises MYR43.64 million in revolving credit
facilities, and two overdraft facilities amounting to MYR74.52
million as at June 8, 2016.
The bank is also demanding for interest to be calculated at 3.5%
per annum, plus the base lending rate on monthly rest from
June 9, 2016 onwards, until the date of full settlement, the
report relates.
Additionally, says the report, it is seeking an interest of 3%
per annum on the principal sum of MYR25.7 million, plus the cost
of fund, to be calculated from June 9, 2016 until the date of
full settlement.
About Malaysia Pacific
Malaysia Pacific Corporation Berhad is a Malaysia-based company
engaged in the business of letting of investment properties and
investment holding. The Company's segments are Property
development, Investment property and Construction. The Property
development segment is engaged in development of residential and
commercial properties. The Investment property segment is engaged
in letting of investment properties. The Construction segment is
engaged in construction of buildings. The Company's projects
include LakeHill Resort City, which include the LakeHill Medical
& Rejuvenation Center, the Heritage and Cultural Village, the
Entertainment City of Nusa Paradis, Factory Premium Outlets and
Real Rock Cafe; Asia Pacific Trade & Expo City-APTEC, which
include trade and Expo Center, Office Towers, Hotels; and a
Residential, Halal Center and Retail Mall. The Company's
subsidiaries include MPC Properties Sdn. Bhd. and MPC Management
Services Sdn. Bhd.
MP Corp fell into PN17 status after its external auditors
expressed a disclaimer opinion on its latest audited accounts in
December 2014.
====================
N E W Z E A L A N D
====================
MECCANO APPAREL: Placed in Voluntary Administration
---------------------------------------------------
Chloe Winter at Stuff.co.nz reports that menswear brand Meccano
has been placed in voluntary administration.
The nationwide chain employs about 60 staff across 12 stores, the
report says.
Administrators Grant Graham and Neale Jackson of KordaMentha,
said all stores would remain open while they sought a buyer for
the business, Stuff relates.
According to Stuff, Meccano director Vere Sharma said the company
was unable to adapt fast enough to what has been a "trying time"
for many mall-based retailers.
Sharma's family business, De Vere Investments, bought the company
in 2016 determined to "turn the brand around", he said, the
report relates.
The decision to put Meccano into voluntary administration was not
made lightly, he said, Stuff notes.
"I'm committed to the clothing industry, and have been for 30
years," the report quotes Mr. De Vere as saying. My other
business dealings are in no way affected by this."
De Vere Investments also owns fashion label Ruby, the report
discloses.
Stuff adds that Mr. Jackson said he was seeking "urgent
expressions of interest" for Meccano. Mr. Jackson said he and
Graham were working closely with the management team.
Meccano has its head office in Auckland, as well as stores in
Auckland, Hamilton, Mt Maunganui, Christchurch, and Dunedin.
PROPERTY VENTURES: Dave Henderson Seeks Costs From Liquidator
-------------------------------------------------------------
Chris Hutching at Stuff.co.nz reports that Christchurch
businessman Dave Henderson has taken a drubbing from a High Court
judge over his efforts to claim legal costs from liquidator
Robert Walker.
According to the report, Messrs. Henderson and Mr. Walker have
been embroiled in numerous legal disputes since 2010 when
Henderson's company Property Ventures was liquidated.
Stuff relates that Mr. Walker, as liquidator of several Property
Ventures subsidiaries, had initiated an order banning Mr.
Henderson from being a director of any company in 2012. But
Mr. Walker abandoned the claim just before it was due to come to
trial on February 12, and Mr. Henderson said that meant he had
been successful and entitled to costs.
Mr. Henderson told the court Mr. Walker had acted inappropriately
on numerous occasions while undertaking the liquidations, the
claim could never have benefited any of the companies' creditors,
and Mr. Walker was trying to leverage against him in other legal
proceedings.
Mr. Henderson's claim would have amounted to a few thousand
dollars because he represented himself in court.
"I accept that ordinarily Mr. Henderson would be entitled to an
award of costs," Stuff quotes Justice Graham Lang as saying.
A separate 2016 High Court ruling prohibited Mr. Henderson from
running a business, being a director, or being employed by a
relative without the court's permission.
"The fact that the Court of Appeal has now confirmed the orders .
. . amounts to a change of circumstances . . . there remained no
need for the plaintiffs (Walker) to continue with their own
application for a banning order . . . had it been necessary for
them to continue with it, the plaintiffs are likely to have been
successful in their application for a banning order.
"Mr. Henderson has an unusually active history in both the
criminal and civil litigation. He has committed numerous offences
under the relevant taxation legislation. Included among them are
25 convictions for PAYE offences entered on four earlier
occasions and 12 convictions for other taxation offences on seven
separate occasions. He has been a frequent appellant before this
Court and the Supreme Court.
"Mr. Henderson carefully structured his personal affairs both
before and in the decade following his first bankruptcy (1996) so
as to have no assets. But he provided personal guarantees for
huge sums. Consequently those creditors entitled to call on his
guarantees would almost inevitably receive no payment if the
company-borrower defaulted."
Justice Lang ruled that Messrs. Henderson and Walker would pay
for their own costs, Stuff adds.
Property Ventures (PVL), the central company of the
David Henderson property development ventures, was put into
receivership in March 2010, and then into liquidation in July the
same year.
=============================
P A P U A N E W G U I N E A
=============================
TOLUKUMA GOLD: Placed in Liquidation Over Unpaid Bills
------------------------------------------------------
Post Courier reports that one of Papua New Guinea's gold mines,
Tolukuma, has been liquidated after a service provider took them
to court for non-payment of bills totaling US$233,844 last year.
According to Post Courier, the National Court ordered on Feb. 8,
that:
* Tolukuma Gold Mines Limited is placed into liquidation by this
Court under the provisions of the Companies Act on the ground
that its just and equitable that the company be placed into
liquidation.
* Andrew Pini of Pini Accountants and Advisors is appointed to
act as liquidator of Tolukuma Gold Mines Limited.
* Tolukuma Gold Mines Limited is to pay Hevi Lift Limited and
IPI Catering Limited's costs of and incidental to the proceeding.
* The time of the entry of these orders is abridged to the date
of settlement by the Registrar which shall take place forthwith.
Post Courier relates that liquidator Andrew Pini confirmed on
Feb. 12 that the National Court on Feb. 8 appointed his
accounting firm to take on the liquidation process effective
immediately.
Post Courier says Hevi Lift took the matter to court in
October 2017 for their outstanding of US$233,844 owing since June
last year. Two other companies, IPI Catering and Pacific
Development Contractors submitted in support their statements to
the court, as they were also owed K1.6 million and K1.8 million
respectively by Tolukuma Gold Mines.
"I don't know exactly how much they owe the creditors or service
providers, what I intend to do immediately is make an assessment
of the real debt figure and then will put out a report," the
report quotes Mr. Pini as saying.
"I will visit the mine to start our process of liquidation, but
for now I have come up with directions on how we can immediately
start. I have put out public statements to all creditors of the
company to come and lodge their claims using the prescribed claim
Form 43 of Schedule 1 of the Companies Regulations 1998.
"In accordance with Regulations 21 and 22 creditors of the
company are required to lodge their claims by 5pm Wednesday March
14, 2018. After this, then I will ascertain the real debt figure
for the mine."
A Singapore-based Asidokona Mining Resources, a private company,
bought the Tolukuma gold mine in Central Province for PGK81.35
million to recapitalise and eventually restart it. They took over
from Petromin in 2015.
Based in Papua New Guinea, Tolukuma Gold Mine Limited provides
gold mining and exploration services. Tolukuma Gold Mine Limited
operates as a subsidiary of Asidokona Mining Resources Pte. Ltd.
*********
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 ***