/raid1/www/Hosts/bankrupt/TCRAP_Public/180608.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, June 8, 2018, Vol. 21, No. 113
Headlines
A U S T R A L I A
CHELSEA OIL & GAS: MNP LLP Raises Going Concern Doubt
CORMAC CONTRACTING: First Creditors' Meeting Set for June 18
GEMSBI PTY: First Creditors' Meeting Slated for June 14
H TRAN: First Creditors' Meeting Slated for June 15
OLIVER BROWN: 50 Franchisees Face Uncertain future
OPTIMUM LABOUR: First Creditors' Meeting Set for June 14
QUEENSLAND NICKEL: Refinery in Townsville Set to Reopen
RETAIL FOOD: Shares Drop as it Expects AUD86.7MM Full-Year Loss
SPACEBUILD PTY: First Creditors' Meeting Set for June 15
X-FIVE PTY: First Creditors' Meeting Set for June 18
* S&P Ups Ratings on 35 Tranches of Australian RMBS
C H I N A
IMAGE CHAIN GROUP: Recurring Losses Raise Going Concern Doubt
I N D I A
AARVEE COLD: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating
AMAYA HOTELS: CRISIL Assigns B+ Rating to INR7MM LT Loan
ANWESHA ENGINEERING: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
ARA MUNICIPAL: Ind-Ra Assigns BB LT Issuer Rating; Outlook Stable
BIJAPUR EDUCATION: CARE Assigns B+ Rating to INR10cr LT Loan
BIOVET PRIVATE: Ind-Ra Assigns BB- Issuer Rating; Outlook Stable
DEMANDSHORE SOLUTION: Ind-Ra Moves B+ Rating to Non-Cooperating
ELECTRA GLOBAL: CRISIL Raises Rating on INR5.5MM Loan to B+
GURUDEVA CHARITABLE: CRISIL Reaffirms B- Rating on INR10.5MM Loan
HAJI SHEIK: CRISIL Lowers Rating on INR10.58MM LT Loan to D
HINDAUN CITY: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
HINDUSTAN FERRO: Ind-Ra Maintains BB- Rating in Non-Cooperating
KHARE & TARKUNDE: Ind-Ra Maintains BB+ Rating in Non-Cooperating
KISAN PROTEINS: Ind-Ra Lowers Long Term Issuer Rating to 'B+'
KOTHARI PRIMA: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
KWALITY FEEDS: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
LIBRA FABRIC: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating
M.R.S. LEATHER: CRISIL Lowers Rating on INR3.5MM Loan to B+
MADHAV INDUSTRIES: Ind-Ra Maintains B+ Rating in Non-Cooperating
MASCOM STEEL: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating
NEW BABA: CARE Assigns B+ Rating to INR5.80cr LT Loan
ORIANAA DECORPACK: CARE Assigns B+ Rating to INR15cr LT Loan
P. H. WOVEN: CARE Migrates B Rating to Not Cooperating Category
PARAMESWARA COTTON: Ind-Ra Maintains B Rating in Non-Cooperating
PRITS LEATHER: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
PURVANCHAL FLOUR: Ind-Ra Migrates BB LT Rating to Non-Cooperating
QUEST INFOSYS: Ind-Ra Keeps 'B' Loan Rating in Non-Cooperating
RVM CHARITABLE: CRISIL Reaffirms B+ Rating on INR30MM LT Loan
SANMAN CONSTRUCTIONS: CRISIL Withdraws B Rating on INR4.5MM Loan
SAVARIYA INDUSTRIES: CRISIL Migrates B Rating to Not Cooperating
SHIBSATI COLD: CRISIL Migrates B Rating to Not Cooperating
SHREE SIDDHESHWAR: CRISIL Cuts Rating on INR114.85MM Loan to D
SHRI GEETA: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
SHRIDHAR INDUSTRIES: CARE Assigns B+ Rating to INR10.25cr LT Loan
SILVERSTONE ELASTO: Ind-Ra Maintains B- Rating in Non-Cooperating
SITARAM INFRAPROJECT: Ind-Ra Assigns BB+ Rating; Outlook Stable
SMIT DEVELOPERS: Ind-Ra Maintains B LT Rating in Non-Cooperating
SUCHEM INTERNATIONAL: CRISIL Assigns B+ Rating to INR10MM Loan
SUBHKARAN AND SONS: CRISIL Migrates D Rating to Not Cooperating
SUPERWAYS ENTERPRISES: CRISIL Moves D Rating to Not Cooperating
TALREJA TEXTILE: CRISIL Migrates B+ Rating to Not Cooperating
TERA SOFTWARE: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
T S R COTTON: CRISIL Reaffirms B+ Rating on INR10MM Cash Loan
UNNAO DISTILLERIES: CRISIL Lowers Rating on INR14MM Loan to B+
USK AGRO: CRISIL Migrates B Rating to Not Cooperating Category
VAMA WOVENFAB: CRISIL Assigns B- Rating to INR10.57MM LT Loan
VICTORIAN MARKETING: CRISIL Raises Rating on INR8.5MM Loan to B+
VIDEOCON INDUSTRIES: NCLT Admits Insolvency Proceedings
* INDIA: 30 Regional Firms Face Insolvency Proceedings
I N D O N E S I A
MODERNLAND REALTY: Fitch Affirms 'B' IDR, Outlook Stable
TIPHONE MOBILE: Fitch Cuts National LT Rating to 'B+(idn)'
J A P A N
TAKATA CORP: Special Master Launches Airbag Compensation Program
S I N G A P O R E
STATS CHIPPAC: Fitch Affirms B+ IDR, Outlook Stable
V I E T N A M
VIETNAM ELECTRICITY: Fitch Assigns 'BB' IDR; Outlook Stable
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=================
A U S T R A L I A
=================
CHELSEA OIL & GAS: MNP LLP Raises Going Concern Doubt
-----------------------------------------------------
Chelsea Oil and Gas Ltd. filed with the U.S. Securities and
Exchange Commission its annual report on Form 20-F, disclosing a
net loss of $9,925,337 on $19,899 of revenue for the year ended
December 31, 2017, compared to a net loss of $542,938 on $36,702
of revenue for the year ended in 2016.
MNP LLP in Calgary, Canada, states that the Company incurred a
consolidated net loss of $9,925,337 during the year ended
December 31, 2017 and, as of that date, the Company's
consolidated current liabilities exceeded its total assets by
$3,405,090. These events or conditions, along with other matters,
indicate that a material uncertainty exists that casts
substantial doubt on the Company's ability to continue as a going
concern.
The Company's balance sheet at December 31, 2017, showed total
assets of $1,964,989, total current liabilities of $5,370,079,
decommissioning liabilities of $402,400, and a total
stockholders' deficit of $3,807,490.
A copy of the Form 20-F is available at:
https://is.gd/teUlQt
Chelsea Oil and Gas Ltd., incorporated on October 1, 2013, is
engaged in exploration, development and production of oil,
natural gas, and natural gas liquids in Australia. The Company
has working interests (WI) operations and overriding royalty
interests (ORRI) in the States of Queensland, South Australia and
Victoria in Australia. The Company operates through oil and gas
exploration, development and production activities within
Australia segment. The Company has a portfolio of assets, which
include Surat-Bowen Basin, Georgina and Simpson Basins, and ORRI.
CORMAC CONTRACTING: First Creditors' Meeting Set for June 18
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Cormac
Contracting Pty Ltd will be held at Level 7, 151 Castlereagh
Street, in Sydney, NSW, on June 18, 2018, at 11:00 a.m.
Shumit Banerjee -- shumit.banerjee@svp.com.au -- and Jason Lloyd
Porter -- jason.porter@svp.com.au -- of SVP were appointed as
administrators of Cormac Contracting on June 5, 2018.
GEMSBI PTY: First Creditors' Meeting Slated for June 14
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Gemsbi Pty
Ltd will be held at BGC Conference Room, Plaza Leve, BGC Centre,
28 The Esplanade, in Perth, WA, on June 14, 2018, at 10:00 a.m.
Jeremy Joseph Nipps and Clifford Stuart Rocke of Cor Cordis were
appointed as administrators of Gemsbi Pty on June 1, 2018.
H TRAN: First Creditors' Meeting Slated for June 15
---------------------------------------------------
A first meeting of the creditors in the proceedings of H Tran
Group Pty Ltd will be held at the offices of Cor Cordis
One Wharf Lane, Level 20, 171 Sussex Street, in Sydney, NSW, on
June 15, 2018, at 11:00 a.m.
Jason Tang and Andre Lakomy of Cor Cordis were appointed as
administrators of H Tran on June 4, 2018.
OLIVER BROWN: 50 Franchisees Face Uncertain future
--------------------------------------------------
Emma Koehn at SmartCompany reports that around 50 Oliver Brown
franchise stores face uncertain futures after the company
collapsed into voluntary administration, reportedly owing
AUD29 million in liabilities.
SmartCompany says the Belgian-inspired chocolate store lists 52
franchised stores on its website; all are on the east coast and
43 are in New South Wales. This list includes the Weatherill Park
store, which, according to Australian Securities and Investments
Commission (ASIC) documents, was placed in liquidation on
March 14. It also includes the Sydney's World Square store, which
fell into administration at the beginning of May.
On May 8, Timothy Heesh of TPH Insolvency was appointed to the
brand's operating business Doutmost Pty Ltd. On June 13,
creditors will meet for a second time to vote on a possible Deed
of Company Arrangement.
According to SmartCompany, the company has collapsed before: in
2012, it was placed in voluntary administration as a result of a
dispute between shareholders of the business.
SmartCompany relates that stores have continued to trade and the
business has remained active in promotions of its offers on
social media. A large number of the sites are located within
large shopping centres operated by the likes of Stockland and
Westfield.
The company owes creditors AUD29 million and company director
Eric Song had contested a AUD5.1 million tax debt identified in
2016, SmartCompany discloses citing an Inside Retail report.
Seeking to recover this debt, the Australian Taxation Office
reportedly issued garnishee notices to franchisees instead of
head office. The ATO is said to be claiming AUD5.2 million in
liabilities at this stage, while landlords are reportedly owed
upwards of AUD20 million.
According to SmartCompany, Inside Retail further reports that
Heesh is expected to recommend a vote in favor of a Deed of
Company Arrangement proposal, which would allow the stores to
continue trading.
OPTIMUM LABOUR: First Creditors' Meeting Set for June 14
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Optimum
Labour Services Pty Ltd will be held at Level 4, 232 Adelaide
Street, in Brisbane, Queensland, on June 14, 2018, at
10:00 a.m.
Peter Anthony Lucas of P A Lucas & Co was appointed as
administrator of Optimum Labour on June 4, 2018.
QUEENSLAND NICKEL: Refinery in Townsville Set to Reopen
-------------------------------------------------------
ABC News reports that embattled Queensland businessman Clive
Palmer said the Queensland Nickel refinery in Townsville is set
to reopen, despite its financial collapse more than two years ago
and debts of hundreds of millions of dollars.
Mr. Palmer issued a press release on June 5 saying as chairman of
QNI Resources he had approved plans to reopen the refinery, the
report relates.
He said a related group of companies had nearly AUD500 million of
cash reserves in Queensland banks which could be used get the
plant up and running again, ABC News relays.
While he said he does not need any financial assistance to reopen
the refinery, he was calling on governments to lend their
support, according to the report.
"What is needed is a positive approach from Government to assist
the refinery reopening in the shortest possible time," the report
quotes Mr. Palmer as saying.
The global nickel price has surged in the last 18 months in the
wake of high demand, particularly from electric vehicle
manufacturers.
ABC News understands there is nothing preventing Mr. Palmer
reopening the refinery or enhancing the value of the plant, other
than requiring certain government permits and licences.
While Queensland Nickel went into administration in 2016, its two
related companies QNI Resources and QNI Metals, could be free to
take over operations, the report notes.
Last week, Mr. Palmer told the ABC's 730 program he had "assets
of AUD2.9 billion, which are here in Australia".
He rebuffed questions about sending money to his nephew and
former Queensland Nickel director Clive Mensink, who is currently
wanted on an arrest warrant for failing to appear to answer
questions in court, according to ABC News.
"It's my money, he's my nephew and if I want to pay him AUD1
million a week I will because I've earned my money hard," Mr.
Palmer, as cited by ABC News, said.
Last month, Mr. Palmer had more than AUD500 million worth of
private and company assets frozen by the Supreme Court, ABC News
recalls.
The report relates that the action was taken by Queensland
Nickel's liquidator PPB Advisory, which is trying to claw back
AUD70 million in taxpayer funds paid to sacked workers.
When Queensland Nickel collapsed in 2016 it was left owing debts
of about AUD300 million to creditors and put more than 800 people
out of work, ABC News discloses.
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.
RETAIL FOOD: Shares Drop as it Expects AUD86.7MM Full-Year Loss
---------------------------------------------------------------
Mathew Dunckley at The Sydney Morning Herald reports that
embattled franchise chain Retail Food Group's share price dived
to a record low after it flagged a significant statutory loss
this financial year.
Shares in the company, which controls major brands such as Gloria
Jeans, Crust Pizza, Brumbies Bakeries and Donut King, plunged
more than 6 per cent to 72.5 cents in early trade on June 5 after
the company said it expected underlying net profit after tax of
about AUD34.5 million for the year to June 30, SMH discloses.
SMH relates that the profit would compare to the AUD75.7 million
the company posted for the 2017 financial year and an average
forecast from the two analysts covering the stock of about
AUD54.6 million.
The shares finished the day at 76 cents, down 2.56 per cent,
after rallying in late trade, the report notes.
According to SMH, the company said the underlying profit figure
would turn into an AUD87.6 million loss after tax once it was
calculated on a statutory basis and writedowns were taken into
account.
SMH says RFG has been under pressure since Fairfax Media revealed
many franchisees operating under its umbrella were struggling to
stay afloat.
The report notes that the company previously downgraded its half-
year earnings on several occasions, before in February unveiling
a AUD24.7 million underlying net profit after tax for the six
months to December 31, which it described as "disappointing".
At the time, the company did not provide guidance for its full-
year profit but on June 5 said it still faced a number of
challenges.
"Trading performance has continued to be impacted by a
combination of previously noted persistent difficult retail
market conditions, the cumulative impact of planned domestic
outlet closures, and ongoing negative sentiment regarding both
retail franchising and RFG in particular," the company said in a
statement to the ASX, SMH relays.
Last week, RFG announced chief executive Andre Nell would leave
the company and on June 5 said his severance pay had contributed
to the final profit figure, SMH recounts.
The company said it was in continuing discussions with its banks
after agreeing in March to new conditions with its main lenders,
Westpac and National Australia Bank, notes the report. RFG has
agreed to reduce its borrowings and earmark the proceeds from any
asset sales to repay debt.
SMH adds that on a brighter note the company said it could yet
receive about AUD3 million in international licence fee revenue
but it could not be certain that this would occur before the end
of the year.
RFG's conduct is under the microscope, alongside the rest of the
franchising industry, through a parliamentary inquiry which is
due to start public hearings in Brisbane today, June 8, says SMH.
Former Brumbies owner Michael Sherlock is among those scheduled
to give evidence at the hearing having publicly criticised RFG
for its treatment of franchisees in the past, SMH adds.
Retail Food Group Limited (ASX:RFG) -- http://rfg.com.au/--
together with its subsidiaries, owns, develops, and manages
multi-brand retail food franchise in Australia. The company
engages in the ownership of intellectual property; development
and management of coffee roasting facilities; and the wholesale
supply of coffee and allied products. It is also involved in the
development and management of the procurement, warehousing,
manufacturing, and distribution business of various brands. The
company operates a network of approximately 2,500 outlets across
12 brand systems spanning 83 territories.
SPACEBUILD PTY: First Creditors' Meeting Set for June 15
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Spacebuild
Pty Ltd will be held at the offices of Hall Chadwick Chartered
Accountants, Level 14, 440 Collins Street, in Melbourne,
Victoria, on June 15, 2018, at 9:00 a.m.
Richard Albarran and Gaurav Mishra of Hall Chadwick were
appointed as administrators of Spacebuild Pty on June 5, 2018.
X-FIVE PTY: First Creditors' Meeting Set for June 18
----------------------------------------------------
A first meeting of the creditors in the proceedings of X-Five Pty
Ltd will be held at the offices of PPB Advisory, Level 7, 8-12
Chifley Square, in Sydney, NSW, on June 18, 2018, at 11:00 a.m.
Daniel Walley and Andrew Scott of PPB Advisory were appointed as
administrator of X-Five Pty on June 5, 2018.
* S&P Ups Ratings on 35 Tranches of Australian RMBS
---------------------------------------------------
S&P Global Ratings raised its ratings on 35 tranches of
Australian residential mortgage-backed securitization (RMBS)
transactions sponsored by five Australian originators. At the
same time, S&P affirmed its ratings on 33 tranches.
S&P said, "The rating actions follow our periodic review of 15
2016-vintage securitization transactions sponsored by a range of
issuers. The diverse range of issuers fall into several
categories, including major banks, other banks, nonbanks, and
regional banks. We have excluded transactions in this group that
are warehouse-style facilities and those that have recently
undergone a review."
The rating actions reflect:
-- The credit support provided through note subordination or
excess spread is sufficient to cover expected losses at their
respective rating levels and withstand various cash-flow
stresses, including interest-rate rises. Each of the
transactions reviewed benefits from subordination provided by
an unrated note.
-- The stable portfolio collateral quality for the group of
transactions. The weighted-average loan-to-value ratio across
these transactions is around 60.9% and weighted-average
seasoning levels are about 4.4 years. This demonstrates an
established repayment history for the majority of borrowers.
-- The steady collateral performance, as evidenced by low levels
of arrears and losses. For this group of transactions, 0.53%
of loans is more than 30 days in arrears compared with 1.16%
for Australian prime RMBS as of Feb. 28, 2018, according to
the Standard & Poor's Performance Index (SPIN). The SPIN is a
weighted-average performance index of all Australian RMBS
transactions rated by S&P Global Ratings that are more than
30 days in arrears.
-- The diverse collateral characteristics specific to each
transaction. The average exposure to investor loans is 30%,
with the lowest being 5.9% and the highest 50.1% of the pool.
Interest-only loans make up about 26.8% of loans across the
pools, with the lowest having no exposure and the highest
having an exposure of around 58.4%.
-- S&P said, "Our cash-flow analysis considers variables that
could affect cash flow, the portfolio performance of the
transaction, and outlook, as well as the current and
potential future payment mechanisms. Our cash-flow analysis
demonstrates the timely payment of interest and ultimate
payment of principal for the rated notes at their respective
rating levels after the application of the appropriate rating
stresses outlined in the criteria."
-- S&P said, "Our analytical review considers the credit quality
and cash-flow mechanics of each transaction taken from
collateral data as of February 2018. All originators in this
review have been categorized as 'CA1,' in line with our
"Methodology For Assessing Mortgage Insurance And Similar
Guarantees And Supports In Structured And Public Sector
Finance And Covered Bonds" criteria, published on Dec. 7,
2014.
-- Of the 15 transactions, 14 benefit from lenders' mortgage
insurance (LMI). LMI covers an average of 40.6% of all loans
for the transactions analyzed, with the remainder being
uninsured. S&P's analysis has given credit to the presence of
LMI in the pools.
-- S&P will continue to monitor quantitative and qualitative
variables as part of its surveillance and future rating
review.
A list of Affected Ratings can be viewed at:
https://bit.ly/2JCefK6
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C H I N A
=========
IMAGE CHAIN GROUP: Recurring Losses Raise Going Concern Doubt
-------------------------------------------------------------
Image Chain Group Limited, Inc., filed its quarterly report on
Form 10-Q, disclosing a net loss of $246,666 on $195,731 of net
revenues for the three months ended March 31, 2018, compared with
a net loss of $45,815 on $1,148,223 of net revenues for the same
period in 2017.
At March 31, 2018, the Company had total assets of $13,192,311,
total liabilities of $12,521,952, and $670,359 in total
stockholders' equity.
As of March 31, 2018, the Company had accumulated deficits of
$4,892,699 and incurred losses to maintain its listing as an U.S.
public company. There was substantial doubt regarding the
Company's ability to continue as going concern at March 31, 2018.
Management continues to employ its previous plan to support the
Company's operations and maintain its business strategy by
raising additional funds through public and private offerings, or
loans from related parties, or to rely on officers and directors
to perform essential functions with minimal compensation was
unsuccessful.
A copy of the Form 10-Q is available at:
https://is.gd/hjzHje
About Image Chain Group Limited, Inc.
Image Chain Group Limited, Inc., formerly Have Gun Will Travel
Entertainment, Inc., incorporated on December 18, 2013, through
its operating subsidiaries, is engaged in the business of
promoting and distributing its own branded teas that are grown,
harvested, cured and packaged in the People's Republic of China
(PRC). The Company's products are sold in the PRC for domestic
consumption.
=========
I N D I A
=========
AARVEE COLD: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Aarvee Cold
Chain Logistics Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR120 mil. Term loans maintained in Non-Cooperating Category
with IND BB+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 17, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Aarvee Cold Chain Logistics provides cold chain logistics
services for agriculture products and other food products.
AMAYA HOTELS: CRISIL Assigns B+ Rating to INR7MM LT Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long
term bank facilities of Amaya Hotels (AH).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 7 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Assigned)
The ratings reflect exposure to risk associated with ramp up of
operations and its sustenance. The ratings also factor its
exposure to vulnerability to cyclicality in hospitality industry.
These weaknesses are partially offset by extensive experience of
promoters in hospitality industry.
Key Rating Drivers & Detailed Description
Weakness
* Exposure to risk associated with ramp up of operations: The
firm is expected to start its hotel full-fledged by
October/November 2018. Revenues are expected to be modest
estimated at INR2 crore for fiscal 2018.
* Vulnerability to cyclicality in hospitality industry: The hotel
industry is vulnerable to changes in the domestic and
international economy. Typically, the industry follows a six-year
cycle. Companies which have a high financial leverage are more
vulnerable to cyclicality due to their fixed financial
commitments
Strength
* Extensive experience of promoters in hospitality industry:
Promoters have been engaged in the hospitality industry over past
few years through its other company which owns and operates a
hotel in Civil Lines, Bareilly.
Outlook: Stable
CRISIL believes that AH will benefit from its promoters'
extensive experience over the medium term. The outlook may be
revised to 'Positive' in case of timely completion of its
renovation with subsequent significant ramp-up in sales, leading
to sufficient cash accruals. Conversely, the outlook may be
revised to 'Negative' if company faces time overrun in the
completion of its project or delay in stabilization of
operations.
AH was set up as a partnership concern was taken over in 2017 by
Mr. Sanjay Sharma. The firm is setting up a hotel namely AMAYA
HOTELS in Lohiya Vihar, Bareilly. The hotel is expected to fully
start its operations by October-November 2018.
ANWESHA ENGINEERING: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Anwesha
Engineering & Projects Limited's (AEPL) Long-Term Issuer Rating
to 'IND D' from 'IND BB+'.
The instrument-wise rating actions are:
-- INR1,100 bil. (reduced from INR1,250 bil.) Fund-based limit
(Long-term/Short-term) downgraded with IND D rating;
-- INR1,921.2 bil. (reduced from INR2,460 bil.) Non-fund-based
limit (Long-term/Short-term) downgraded with IND D rating;
-- INR500 mil. Proposed non-fund-based limit* (Long-term/Short-
term) downgraded with Provisional IND D rating; and
-- INR239.25 mil. Term loan (Long-term) due on March 2021
downgraded with IND D rating.
* The rating is provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above
facilities by AEPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by AEPL during
the six months ended May 2018 due to a tight liquidity position,
resulting from elongated debtor collection period.
COMPANY PROFILE
AEPL is an engineering, procurement and construction player
engaged in the business of erection of oil, comfier and fire
water storage tanks, piping and pipe rack foundation, and related
civil and structural works for refineries in India and overseas.
ARA MUNICIPAL: Ind-Ra Assigns BB LT Issuer Rating; Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ara Municipal
Corporation (AMC) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable.
KEY RATING DRIVERS
The rating is constrained by AMC's high revenue dependency on
grants, which formed 43.73% of the total revenue income over
FY15-FY17. This is on account of low tax revenue collections, and
the consequent own income reliance. AMC's own income to total
revenue income ratio was below 24% over FY15-FY17.
Also, AMC incurs high establishment expenditure, which accounted
for 83.55% on average of AMC's total revenue expenditure and
increased at a CAGR of 26.70% over FY15-FY17. Consequently,
allocation for key expenditure area such as operations and
maintenance was low at 11.55%.
The rating is also constrained by Ara city's poor infrastructure.
Although Ara is a well-connected city through roads and railways,
the lack of a proper supply of water, sewerage system, solid
waste management and poor social infrastructure hinders potential
growth. Under Atal Mission for Rejuvenation and Urban
Transformation, INR631.20 million will be incurred to improve the
civic services during FY18-FY20 with the central government
contributing INR315.5 million, the state government contributing
INR189.4 million and AMC's share being INR126.3 million.
The rating however is supported by AMC's consistent financial
performance. AMC's revenue receipts increased to INR236.93
million in FY17 from INR217.88 million in FY15. Tax revenues
formed a small part of the revenue (average FY15-FY17: 12.63%).
The revenue account stayed in surplus over the past three years.
The surplus moderated to INR95.18 million in FY17 from INR135.62
million in FY15.
RATING SENSITIVITIES
Positive: A sustained improvement in the delivery of civic
services along with an improvement in revenue account will lead
to a positive rating action.
Negative: Lowered state government support in form of grants
leading to sustained deterioration in the revenue, will lead to a
negative rating action.
COMPANY PROFILE
Ara is the administrative headquarter of the Bhojpur district in
Bihar. AMC is mainly responsible for the administration of the
city, providing and maintaining the various infrastructure
facilities including roads, housing, water, solid waste
management, education, health services etc. to its citizens.
BIJAPUR EDUCATION: CARE Assigns B+ Rating to INR10cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Bijapur Education and Social Welfare Society (BESWS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 10.00 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of BESWS are primarily
tempered by small scale of operations with fluctuating surplus
margins albeit remained satisfactory, on-going capex and highly
regulated industry, high level of Competition from other
established institutes in the region and uneven cash flow
associated with educational institutes.
However, the rating derives comfort from vast experience of the
managing committee, growth in gross receipts and moderate capital
structure and debt coverage indicators.
Going forward, the society's ability to scale up its operations
and admitting more students by increasing the divisions and
grades offered in the future and completion of on-going
expansion.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with fluctuating surplus margins: The
Trust has small scale of operations marked by gross receipts of
INR2.75 crore during FY17 and low corpus fund of INR1.63 crore as
on March 31, 2017. The corpus fund has been increasing on the
back of internal accruals of the society. The Surplus margins of
the trust have been fluctuating during the review period. Due to
increasing student strength, the number of teaching staff was
also increased. Furthermore, qualified staff members were
recruited at a higher pay for the PU College in order to maintain
the standard of education. Thus the cost of administration has
been increasing during the review period. This resulted in the
decline in SBID margin by 107 bps from 36.09% in FY16 to 35.02%
in FY17. The surplus margins also declined in line with the SBID
margin from 13.90% in FY16 to 9.41% in FY17.
On-going Capex: The society has purchased a land in Vijayapur for
construction of building in order to accommodate the students in
the PU College. Also, the school has sought permission from CBSE
(Central Board of Secondary Education), New Delhi and plans
to accommodate the students of the CBSE school post construction.
The society plans to construct 4 wings initially which is likely
to be completed by June 2018. The total cost of the project is
INR14 crore of which INR5 crore is expected to be funded through
term loan, which is under appraisal and the balance through
corpus funds. INR6 crore has been incurred till date by the
trustees. The site is under construction. Post construction of 4
wings, the society proposes to construct 2 more wings at an
estimated cost of INR2 crore which will be funded through term
loan, which is also under appraisal.
High level of Competition from other established institutes in
the region: The educational sector is highly competitive. The
demand for CBSE schools is increasing, and the schools run under
the society are operated under the Karnataka State Board
syllabus. The society has sought approval to follow CBSE
curriculum from the academic year 2018-19 to offer education from
class 1 upto class 8. Due to the presence of other established
institutions in the vicinity offering state board as well as CBSE
curriculum, BESWS face competition with respect to filling of
seats.
Uneven cash flow associated with educational institutes: The
revenue stream of the society is skewed towards the beginning of
the academic year when the bulk of the tuition fees and other
related income is collected whereas the society incurs regular
stream of payments for meeting staff salary, maintenance
activities, interest expenses amongst others.
Key Rating Strengths
Vast experience of the managing committee: The President of the
Society, Ms. Sheela M Hurali and Secretary, Dr. Suresh B Biradar
has around three decades of experience working as a lecturer in a
government aided college. The schools operated under the society
are managed by the Principal, Mr. Chandan Gouda Malipatil, who
has been the principal for five years and has about a decade
experience in the teaching field. The teaching members of all the
institutions are well qualified and distinguished personalities
in their respective fields.
Growth in Gross receipts: The gross receipts of BESWS has been
increasing year-on-year from INR1.84 crore in FY15 to INR2.75
crore in FY17 on account of increase in the overall students
strength from 815 students during the academic year 2014-15 to
996 students during the academic year 2016-17. Currently the
student strength of all the schools under BESWS stands at 1082.
Moderate capital structure and debt coverage indicators: The
capital structure marked by overall gearing improved and stood
moderate at 1.76x as on March 31, 2017 against 2.21x as on March
31, 2016 on account of repayment of tem loans raised for the
purchase of vehicles. The debt coverage ratios improved and stood
moderate marked by Total debt/GCA at 4.34x in FY17 due to
satisfactory surplus margins and cash accruals along with
moderate debt levels. The interest coverage ratio declined
marginally from 3.62x in FY16 to 3.17x in FY17 on the back of
increase in finance cost associated with loan borrowings.
Bijapur Education and Social Welfare Society (BESWS) was
established under the Societies Registration Act in 2003 by Ms.
Sheela M Hurali and Dr. Suresh B Biradar. The society operates
two schools and two Pre-university Education colleges in
Vijayapur. The trustees established Ajeet Education Society in
2000 and operates one school under the society. The trustees have
submitted a proposal to merge the two societies into Bijapur
Education and Social Welfare Society. BESWS operates four
institutions namely, Vishwabharati Public School, Vishwabharati
Model High School, Shantiniketan Pre- University Science and
Commerce College (Vijayapur) and Shantiniketan Pre-University
Science and Commerce College (Dharawad). One school namely,
Shantiniketan Pre-primary School is operated under Ajeet
Education Society. The registered office of the society is
located in Vijayapur, Karnataka.
BIOVET PRIVATE: Ind-Ra Assigns BB- Issuer Rating; Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Biovet Private
Limited (BVPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR60 mil. Fund-based working capital limit assigned IND BB-
/Stable/IND A4+ rating; and
-- INR50 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect BVPL's small scale of operations as indicated
by revenue of INR556.1 million in provisional FY18 (FY17:
INR429.3 million). The increase in revenue was on account of
strong order flow from state governments.
The ratings are also constrained by the company's volatile EBITDA
margins. The EBITDA margin expanded to 19.5% in FY18P, after a
plunge to 0.8% in FY17 (FY16: 31.1%), owing to better absorption
of input costs. The decline in the margin in FY17 was mainly due
to write-off of bad debts of INR112.4 million.
The ratings also factor in BVPL's modest liquidity position. Net
working capital cycle was volatile between 205 days and 546 days
over FY15-FY18P and its average peak utilization of its cash
credit limits was 55% during the six months ended April 2018.
However, the ratings are supported by BVPL's comfortable credit
metrics owing to low debt levels. In FY18P, interest coverage
(operating EBITDA/gross interest expense) improved to 6.4x (FY17:
0.2x) on the back of anb increase in EBITDA to INR108.3 million
(INR3.5 million). The company had a net cash position in FY18P
(FY17 net leverage (total adjusted net debt/operating EBITDA):
2.5x).
The ratings are also supported by the promoter's two decades of
experience in manufacturing of vaccines.
RATING SENSITIVITIES
Positive: A sustained growth in the top line and operating
profitability, leading to an improvement in the credit metrics
will lead to a positive rating action.
Negative: Decline in the operating profitability resulting in a
sustained deterioration in the credit metrics will lead to a
negative rating action.
COMPANY PROFILE
Incorporated in 2005, BVPL manufactures animal health care
products including veterinary biological, bio-vaccines and other
related products for large animals, poultry and pet animals. It
has a foot and mouth disease vaccine production facility near
Bangalore. The company was started by Dr. Krishna M. Ella, who is
also the founder of Bharat Biotech International Limited. The
company sells products to state governments.
DEMANDSHORE SOLUTION: Ind-Ra Moves B+ Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated DemandShore
Solutions Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
surveillance exercise despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using the rating. The rating
will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR18.2 mil. Long-term loans due on December 2018 migrated to
Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
rating;
-- INR65 mil. Fund-based facilities migrated to Non-Cooperating
Category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER
NOT COOPERATING) rating;
-- INR20 mil. Non fund-based facilities migrated to Non-
Cooperating Category with IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR20 mil. Proposed fund-based facilities migrated to Non-
Cooperating Category with Provisional IND B+ (ISSUER NOT
COOPERATING) /Provisional IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR10 mil. Proposed non fund-based facilities migrated to
Non-Cooperating Category with Provisional IND A4 (ISSUER NOT
COOPERATING) rating; and
-- INR13 mil. Proposed long-term loans migrated to Non-
Cooperating Category with Provisional IND B+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 16, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
DemandShore Solutions provides lead management services. It
offers suites of products and services to support B2B companies,
and sales and marketing decision-makers across multiple stages of
the customer acquisition lifecycle.
ELECTRA GLOBAL: CRISIL Raises Rating on INR5.5MM Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its long term ratings on the bank facilities
of Electra Global Resources Private Limited (EGRPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable' while reaffirming its short
term ratings at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 3.5 CRISIL A4 (Reaffirmed)
Proposed Long Term 0.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
The upgrade reflects the improvement in its business risk profile
with steady growth in revenues and improved profitability in
FY18. The same has resulted in better liquidity with accruals
expected at INR30-35 lacs against which it does not have any
repayments. The bank limits also remain moderately utilized.
The rating continues to reflect EGRPL's modest scale of
operations and below-average financial risk profile marked by
subdued debt protection metrics. These rating weaknesses are
partially offset by extensive experience of promoters in the
batteries industry.
Key Rating Drivers & Detailed Description
Weakness
* Below-average financial risk profile: Electra's below-average
financial risk profile is marked by average debt protection
metrics as indicated by average interest coverage ratio of around
1.5-1.8 times in fiscal 2018.
* Modest scale of operations in highly fragmented battery
industry: The scale of operations remained modest marked by
modest revenues of INR42 Cr. in fiscal 2018. The revenues remain
modest in the highly fragmented battery and lead industry.
Strengths
* Extensive experience of promoters: The promoters of Electra,
Mr. Chetan Sanghvi and Mr. Bhaumik Sanghvi have extensive
experience in the field of batteries. The company benefits from
the extensive experience of the promoters, their understanding of
the dynamics of the local market, and established relationships
with customers and suppliers.
Outlook: Stable
CRISIL believes that EGRPL will maintain its business risk
profile over the medium term backed by the promoter's extensive
industry experience. The outlook may be revised to 'Positive' if
the company reports significantly higher than expected revenues
and profitability, while improving its capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
lower than expected revenues and profitability, or stretch in
working capital cycle, resulting in deterioration in financial
risk profile.
EGRPL erstwhile known as Priti International Pvt Ltd was
incorporated in 1995 by Mr. Chetan Sanghvi and Mr. Bhaumik
Sanghvi. The company is engaged in trading of motorcycle
batteries and lead. The company had started with trading of lead
in July 2015 whereas trading of batteries started from September
2015.
GURUDEVA CHARITABLE: CRISIL Reaffirms B- Rating on INR10.5MM Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of
Gurudeva Charitable Trust (GCT) at 'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 4.5 CRISIL B-/Stable (Reaffirmed)
Secured Overdraft
Facility 6.0 CRISIL B-/Stable (Reaffirmed)
Term Loan 10.5 CRISIL B-/Stable (Reaffirmed)
Working Capital
Demand Loan 6.0 CRISIL B-/Stable (Reaffirmed)
The rating continue to reflect GCT's small scale of operations,
geographic concentration in revenue, susceptibility to risks
related to regulatory changes, and a below-average financial risk
profile because of a weak networth. These weaknesses are
partially offset by the extensive experience of the trustees in
the education industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Susceptibility to risks related to regulatory changes: The
education sector is highly regulated sector and compliance with
specific operational and infrastructure norms set by regulatory
bodies, such as the Medical Council, is essential. Thus, regular
investment in the workforce and infrastructure are needed and
approvals have to be received even to set up new courses or
increase the number of seats for any course.
* Small scale of operations and geographical concentration in
revenue: The entire revenue is derived from a medical college and
hospital in Kerala and a single course, resulting in a small
scale of operations. Revenues were estimated to be INR58 crore in
fiscal 2018. Furthermore, as revenue is derived from just the one
college, the trust is exposed to geographical concentration
risks.
* Below-average financial risk profile: The trust has weak net
worth as on March 31, 2018 due to the losses. However, the
promoters provide need-based fund support through unsecured
loans, the balance of which is estimated to be INR22.8 crore as
on March 31, 2018.
Strength
* Extensive industry experience of the trustees: The trust is
managed by a group of professionals who have extensive experience
in the industry. This has helped to establish itself as one of
the leading institutes providing medical education.
Outlook: Stable
CRISIL believes GCT will continue to benefit from the extensive
industry experience of its trustees. The outlook may be revised
to 'Positive' in case of sustainable increase in the scale of
operations with higher student intake, leading to significant
improvement in liquidity. The outlook may be revised to
'Negative' if the financial risk profile, particularly liquidity,
weakens, most likely due to sizeable debt-funded capital
expenditure, an adverse impact of any regulatory change, or
deterioration in cash flow management.
GCT, based in Ernakulam, was set up in 2003 by a group of non-
resident Indians and businessmen from Kerala. It is registered
under the Indian Trust Act, 1881. The trust comprises of a
medical college and hospital, Sree Narayana Institute of Medical
Sciences, offering the MBBS course.
HAJI SHEIK: CRISIL Lowers Rating on INR10.58MM LT Loan to D
-----------------------------------------------------------
CRISIL has downgraded its rating to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating' on
the bank facility of Haji Sheik Ismail Educational and Charitable
Trust (HSIET). The downgrade of rating is due to delays in debt
servicing due to weak liquidity. The rating also reflects its
exposure to risk related to regulatory changes. This weakness is
partially offset by trustee' experience in the industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.5 CRISIL D (Issuer Not
Cooperating; Downgraded from
'CRISIL B-/Stable Issuer Not
Cooperating')
Long Term Loan 10.58 CRISIL D (Issuer Not
Cooperating; Downgraded from
'CRISIL B-/Stable Issuer Not
Cooperating')
Proposed Long Term
Bank Loan Facility .42 CRISIL D (Issuer Not
Cooperating; Downgraded from
'CRISIL B-/Stable Issuer Not
Cooperating')
CRISIL has been consistently following up with Haji Sheik Ismail
Educational and Charitable Trust (HSIET) for obtaining
information through letters and emails dated November 21, 2016,
December 22, 2016 and March 16, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of HSIET. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
HSIET is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL B Rating
category or lower.'
Key Rating Drivers & Detailed Description
Weakness
* Exposure to risks related to regulatory changes: The
establishment and operations of institutions providing higher
education are governed by various governmental and quasi-
governmental agencies such as the University Grants Commission,
All India Council for Technical Education (AICTE), universities,
and state governments.
Strength
* Trustee's extensive industry experience: HSIET is headed by Mr.
Mohamed Jahangeer, who has extensive experience in the academics
field. The trustee established these educational institutions to
incorporate Dr. A P J Abdul Kalam's mission of Providing Urban
Amenities in Rural Areas.
HSIET was set up by Mr. Mohamed Jahangeer in 2007. In 2008, the
trust set up Haji Sheik Ismail Polytechnic College, which offers
polytechnic courses. In 2013, Haji Sheik Ismail Engineering
College was established to provide engineering courses. Both
these colleges are located in Nagapattinam, Tamil Nadu.
HINDAUN CITY: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Hindaun City
Municipal Council's Long-Term Issuer Rating of 'IND BB'. The
Outlook was Stable.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the rating, as the
issuer rating was assigned under the Atal Mission for
Rejuvenation and Urban Transformation programme and no specific
debt was issued against the rating.
COMPANY PROFILE
Hindaun is a city in Rajasthan. Hindaun City Municipal Council is
responsible for the provisioning and governance of civic services
in Hindaun.
HINDUSTAN FERRO: Ind-Ra Maintains BB- Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Hindustan
Ferro Alloy Industries Pvt Ltd.'s Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using these ratings. The rating
will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on
the agency's website.
The instrument-wise rating actions are:
-- INR180 mil. Fund-based facilities maintained in non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR65 mil. Non-fund-based facilities maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Feb. 9, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Hindustan Ferro Alloy Industries manufactures bright bars
including wire drawing of bright bars of various shapes, sizes
and grades.
KHARE & TARKUNDE: Ind-Ra Maintains BB+ Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Khare &
Tarkunde Infrastructure Private Limited's Long-Term Issuer Rating
in the non-cooperating category. The issuer did not participate
in the rating exercise despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using the rating. The rating
will continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on
the agency's website.
The instrument-wise rating actions are:
-- INR425 mil. Fund-based limit maintained in Non-Cooperating
Category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR1,003.1 bil. Non-fund-based limit maintained in Non-
Cooperating Category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR181 mil. Term loan maintained in Non-Cooperating Category
with IND BB+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 10, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Khare & Tarkunde Infrastructure primarily focuses on designing
and constructing bridges for governments or government
enterprises.
KISAN PROTEINS: Ind-Ra Lowers Long Term Issuer Rating to 'B+'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Kisan Proteins
Private Limited's (KPPL) Long-Term Issuer rating to 'IND B+' from
'ND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR95.0 mil. Fund-based working capital limits downgraded
with IND B+/Stable rating.
KEY RATING DRIVERS
The downgrade reflects the significant fall in KPPL's revenue in
FY17 on account of a decline in the receipt of orders. The
ratings also reflect the company's continued weak margins, due to
the high cost of its raw material, which along with high debt
levels lead to weak credit metrics. Revenue was INR381.9 million
in FY17 (FY16: INR558.6 million), EBITDA margin was 3.6% (2.9%),
gross interest coverage was 1.3x (1.3x) and net leverage was 7.7x
(7.1x). Net leverage declined on account of a decline in absolute
EBITDA. Operating margin improved with a decline in raw material
cost. During FY18, revenue further declined to INR291.2 million
(provisional).
Moreover, the liquidity profile of the company is tight with
average working capital utilization of around 98.8% during the 12
months ended April 2018. Also, net working capital cycle
deteriorated to 110 days in FY17 (FY16: 81 days) on account of
higher inventory days and receivable days.
The ratings, however, are supported by KPPL's promoters' over two
decades of experience in the oil extraction and trading business.
RATING SENSITIVITIES
Positive: An improvement in the revenue and operating profit
leading to an improvement in the credit metrics and an
improvement in net working capital days, all on a sustained
basis, will be positive for ratings.
Negative: Deterioration in the revenue and credit metrics on a
sustained basis will be negative for ratings.
COMPANY PROFILE
KPPL was incorporated in January 2005 by Kisakn Group in
Ahmedabad. The company is primarily engaged in solvent extraction
from rapeseed and mustard seeds. The company is operated by
Ranchhodhai Kanjibhai Patel and Manubhai Karsandas Patel.
KOTHARI PRIMA: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kothari Prima
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR160 mil. Long-term loan due on June 2022 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR40 mil. Fund-based facilities migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) /IND A4 (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 18, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2012, Solapur-based KPPL manufactures polyvinyl
chloride pipes and irrigation systems.
KWALITY FEEDS: Ind-Ra Maintains 'BB' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kwality Feeds
Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR75.3 mil. Term loans maintained in non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR47.5 mil. Fund-based facilities maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 31, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Kwality Feeds is a fish feed manufacturer with an installed
capacity of 60,000 metric tons per annum.
LIBRA FABRIC: Ind-Ra Maintains 'BB-' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Libra Fabric
Designs Private Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR150 mil. Fund-based facilities maintained in Non-
Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 24, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Libra Fabric Designs is engaged in fabric trading.
M.R.S. LEATHER: CRISIL Lowers Rating on INR3.5MM Loan to B+
-----------------------------------------------------------
CRISIL has downgraded its rating on the long term bank facilities
of M.R.S. Leather Exports Private Limited (MRS) to 'CRISIL
B+/Stable' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Export Packing Credit 3.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term
Bank Loan Facility 0.8 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Standby Line of 0.7 CRISIL B+/Stable (Downgraded
Credit from 'CRISIL BB-/Stable')
The rating downgrade reflects deterioration in operating
performance; Revenues declined YoY by 20 per cent to around
INR19.5 Cr while operating margins remained modest at around 5
per cent estimated in fiscal 2018 owing to intense competition in
the industry. Consequently cash accruals were low at around
INR0.3 Cr and the same is expected to remain constrained over the
medium term as well. Decline in profitability has also resulted
in modest debt protection metrics; Interest cover and Net cash
accruals to total debt ratios were around 1.69 times and 8 per
cent estimated in fiscal 2018.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: MRS's operations are modest as
reflected in revenues of around INR19.5 Cr estimated in fiscal
2018 marked by intense competition in the market. Further small
scale also precludes any benefits from economies of scale
constraining the overall profitability
* Large working capital requirements: MRS's operations, as those
of other players in the leather industry, are working capital
intensive mainly because of the long process period involved,
large raw material inventory, and lengthy payment cycle. The
company maintains inventory of around 4 months including semi-
finished leather. On the other hand, MRS has to make immediate
payments to its suppliers, as reflected in average payables of 10
to 20 days over the three years ended March 31, 2018 accentuating
its working capital requirements.
Strengths:
* Promoters' extensive experience in leather processing industry:
MRS benefits from the extensive industry experience of its
promoters; the company has around three decades of experience in
the leather industry, during which its promoters have established
a strong market position. It has also helped them scale up the
company's operations, as evident from the growth in revenue.
Outlook: Stable
CRISIL believes MRS will continue to benefit over the medium term
from the promoters' extensive industry experience. The outlook
may be revised to 'Positive' in case of a substantial increase in
revenue and profitability, leading to higher-than-expected
accrual. Conversely, the outlook may be revised to 'Negative' in
case of a large, debt-funded capital expenditure (capex), or a
decline in revenue and profitability, weakening the financial
risk profile.
Set up as a partnership firm, MRS Leather Traders, in 1989, MRS
processes tanned goat skin to finished leather; the partnership
firm was reconstituted as a private limited company in 2001.
MADHAV INDUSTRIES: Ind-Ra Maintains B+ Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Madhav
Industries' Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are given below:
-- INR148.7 mil. Term loan due on March 2021 maintained in non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating;
-- INR30 mil. Fund-based facilities maintained in non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)/
IND A4 (ISSUER NOT COOPERATING rating; and
-- INR20 mil. Non-fund-based facilities maintained in non-
cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 18, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2015, Madhav Industries manufactures fine and
specialty inorganic chemicals such as molecular sieves, activated
alumina, zeolite and silicon dioxide.
MASCOM STEEL: Ind-Ra Migrates B- Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Mascom Steel
India Private Limited's Long-Term Issuer rating to the non-
cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND B- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR140 mil. Fund-based working capital limits migrated to
non-cooperating category with IND B- (ISSUER NOT COOPERATING)
/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR48 mil. Term loan due on March 2021 migrated to non-
cooperating category with IND B- (ISSUER NOT COOPERATING)
rating;
-- INR100 mil. Proposed term loan migrated to non-cooperating
category with Provisional IND B- (ISSUER NOT COOPERATING)
rating; and
-- INR100 mil. Proposed non-fund-based working capital limits
migrated to non-cooperating category with Provision IND A4
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 16, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Mascom Steel India has a steel plant to produce TMT bars.
NEW BABA: CARE Assigns B+ Rating to INR5.80cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of New
Baba Rice Mill (NBRM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5.80 CARE B+, Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of NBRM is tempered by
small scale of operations with fluctuating total operating income
and short track record of business, financial risk profile marked
by leveraged capital structure and weak debt coverage indicators,
seasonal nature of availability of paddy resulting in working
capital intensive nature of operations, intense competition from
several other players with material price volatility and
constitution of entity as a partnership firm with inherent risk
of withdrawal of capital.
The rating is, however, underpinned by the Experience of partners
for more than two decades in rice milling industry, increase in
profitability margins during review period, locational advantage
with presence in cluster and easy availability of paddy and
healthy demand outlook of rice.
Going forward, ability of the firm to increase its scale of
operations and profitability margins, manage its working capital
requirements effectively and improve its capital structure and
debt coverage indicators would be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operation with fluctuating total operating income
and short track record of business: The firm's scale of
operations were small in nature as marked by a TOI of INR28.25
crore in FY17 and INR27 crore in 11M-FY18 (refers to the period
from April to January; Provisional). However the TOI has
marginally increased from INR27.43 crore in FY16 to INR28.25
crore in FY17. Further, the firm had short track record of
business operations, which is partially offset by the over two
decades of experience of the partners in the same line of
business.
Financial risk profile marked by leveraged capital structure and
weak debt coverage indicators: The firm has leveraged capital
structure during review period. However, the debt equity and
overall gearing ratio of the firm has improved from 1.32x and
4.95x respectively as on March 31, 2016 to 0.36x and 4.57x
respectively as on March 31, 2017 due to increase in tangible net
worth at the back of accretion of profits to capital and
repayment of term loans. The debt coverage indicators of the firm
have weak during review period. However, total debt/GCA of the
firm has improved from 12.58x in FY16 to 12.13x in FY17 due to
increase in gross cash accruals. The PBILDT interest coverage
ratio of the firm is also improved from 2.07x in FY16 to 2.38x in
FY 17 due to decrease in finance cost.
Seasonal nature of availability of paddy resulting in working
capital intensive nature of operations: Paddy in India is
harvested mainly at the end of two major agricultural seasons
Kharif (June to September) and Rabi (November to April). The
millers have to stock enough paddy by the end of the each season
as the price and quality of paddy is better during the harvesting
season. During this time, the working capital requirements of the
rice millers are generally on the higher side. Majority funds of
the firm are blocked in inventory and with customers. Due to the
above reasons, the operating cycle of the firm is deteriorated
from 58 days in FY16 to 73 days in FY17 due to increase in
average inventory period from 78 days in FY16 to 86 days in FY17.
Moreover, the paddy is procured from the farmers and merchants
generally against cash payments or with a minimal credit period
of 20-30 days. The firm collects payment from its customers
within 10-20 days. The above factors resulting in high working
capital utilization reflecting working capital intensity of
business. The average utilization of fund based working capital
limits of the firm was utilized (80%) during the last 12 months
period ended February 28, 2018.
Constitution of entity as a partnership firm with inherent risk
of withdrawal of capital: With the entity being partnership firm,
there is an inherent risk of instances of capital withdrawal by
proprietor resulting in lesser of entity's net worth. Further,
the partnership firms are attributed to limited access to
funding.
Key Rating Strengths
Experience of partners for more than two decades in rice milling
industry: New Baba Modern Rice Mill (NBRM) was incorporated in
2013, promoted by Mr. H. Basha and his family members. The
partners are having around 25 years of experience in rice milling
business. Through their vast experience in the rice milling
business, the firm is able to establish healthy relationship with
key suppliers, customers, local farmers, dealers and also with
the brokers facilitating the rice business within the state.
Increase in profitability margins during review period: The
profitability margins of the firm have been increasing during
the review period. However, the PBILDT margin of the firm is
marginally decreased from 3.86% in FY16 to 3.85% in FY17. The PAT
margin of the firm has been increasing during the review period
from 0.92% in FY16 to 1.19% in FY17 on account of decrease in
finance cost and depreciation at the back of repayment of term
loan coupled with marginal increase in PBILDT in absolute terms.
Locational advantage with presence in cluster and easy
availability of paddy: The rice milling unit of NBRM is located
at Ballari district which is the one of the top for producing
paddy in Karnataka. The manufacturing unit is located near the
paddy producing region, which ensures easy raw material access
and smooth supply of raw materials at competitive prices and
lower logistic expenditure.
Healthy demand outlook of rice: Rice is consumed in large
quantity in India which provides favorable opportunity for the
rice millers and thus the demand is expected to remain healthy
over medium to long term. India is the second largest producer of
rice in the world after China and the largest producer and
exporter of basmati rice in the world. The rice industry in India
is broadly divided into two segments - basmati (drier and long
grained) and non-basmati (sticky and short grained). Demand of
Indian basmati rice has traditionally been export oriented where
the South India caters about one-fourth share of India's exports.
However, with a growing consumer class and increasing disposable
incomes, demand for premium rice products is on the rise in the
domestic market. Demand for non-basmati segment is primarily
domestic market driven in India. Initiatives taken by government
to increase paddy acreage and better monsoon conditions will be
the key factors which will boost the supply of rice to the rice
processing units. Rice being the staple food for almost 65% of
the population in India has a stable domestic demand outlook. On
the export front, global demand and supply of rice, government
regulations on export and buffer stock to be maintained by
government will determine the outlook for rice exports.
Karnataka based, New Baba Rice Mill (NBRM) was established in
2013 and promoted by Mr. H. Basha and his family members. The
firm has four partners i.e. Mr. H. Basha, Mr. H. Peerasab, Mr. H.
Shaikshavali and Mr. H. Yusuf Sab. All the partners have more
than two decades of experience in the same line of business. NBRM
is engaged in processing and selling of rice. The rice processing
unit of the firm is located at Sindhanur road, Siruguppa,
Ballari, Karnataka. Apart from rice processing and selling, the
firm is also engaged into selling off by-products such as broken
rice and rice bran. The main raw material, paddy, is majorly
procured from paddy merchants and farmers located in Andhra
Pradesh, Telangana and karnataka region. The firm sells rice and
other by-products to the rice dealers located in Bangalore,
Mysore, Goa and Mumbai. The installed capacity of the firm is 900
tonnes of rice per day.
ORIANAA DECORPACK: CARE Assigns B+ Rating to INR15cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Orianaa Decorpack Private Limited (ODPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 15 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of ODPL is constrained
on account of its implementation and stabilization risk
associated with on-going debt-funded capex. Further, the rating
remained constrained on account of its presence in the highly
competitive and fragmented plastic packaging industry along with
susceptibility of operating margins to volatility in raw material
costs.
The rating, however, derives strength from experienced promoters
coupled with accessibility of existing selling and distribution
network of the associate firm. ODPL's ability to stabilize its
business operations by commencing commercial production within
specified timeline, cost parameters and establishing customer
base would be key rating sensitivity. Further, achieving
envisaged level of sales and profitability in volatile raw
material pricing scenario and highly competitive industry would
also remain crucial.
Detailed description of the key rating drivers
Key Rating Weaknesses
Implementation and stabilization risk associated with on-going
debt-funded capex: ODPL is implementing a Greenfield project for
manufacturing Sticker labels, Shrink sleeve labels, BOPP
(Biaxially Oriented polypropylene) wrap around labels, BOPP
Pouches, HTL (Heat Transfer labels) & IMA (In Mould Labels) etc.
having estimated total project cost of INR19.33 crore, which is
envisaged to be funded by debt/equity mix of 2.22 times. Till
May 14, 2018, the firm has incurred 51% of the envisaged project
cost and ODPL envisages commencing commercial operations from
July 2018.
Presence in the highly competitive and fragmented plastic
packaging industry: ODPL operates in a highly competitive and
fragmented industry. The company has witnessed intense
competition from both organized players & unorganized players.
This fragmented and highly competitive industry results into
price competition thereby affecting the profit margins of the
companies operating in this industry.
Susceptibility of operating margins to volatility in raw material
costs: Prices of raw materials i.e. printing inks, PVC (Polyvinyl
Chloride) films in roll form, BOPP films in roll form, Packing
material and Solvent etc. are market driven and expected to put
pressure on the margins of the manufacturers. The
profitability of ODPL remains exposed to volatile raw material
prices.
Key Rating Strengths
Experienced promoters
The key promoter, Mr. Yogesh Shahani has more than three decades
of experience in the packaging industry. He is also associated
with other entity Bullion Flexipack Private Limited as a
director.
Accessibility of existing selling and distribution network of the
associate firm ODPL has an advantage of already established
selling and distribution network of its associate firm named
Bullion Flexipack private Limited. At an initial stage ODPL will
cater some of the existing customers of the Bullion Flexipack
Private Limited.
Vadodara (Gujarat) based Orianaa Decorpack Private Limited (ODPL)
was incorporated in March, 2017. Mr. Yogesh Shahani and Ms.
Jharna Shahani are the key directors of ODPL. ODPL will operate
from its sole manufacturing unit located Bhamangam (Vadodara).
ODPL is implementing a project for manufacturing of Plastic
Labels, Sticker Labels, Shrink Sleeve labels, BOPP wrap around
labels and HTL & IMA etc. having total cost of INR19.33 crore,
which is envisaged to be funded through debt/equity mix of 2.22
times. The firm has incurred around 51% of the project cost till
May 14, 2018, while the commercial operations are expected to
commence from July, 2018.
P. H. WOVEN: CARE Migrates B Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of P. H.
Woven Sacks Private Limited (PHW) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 6.85 CARE B: ISSUER NOT COOPERATING;
Facilities Based on best available
information
CARE has been seeking information from PHW to monitor the ratings
vide e-mail Communications/letters dated February 8, 2018,
February 15, 2018, March 5, 2018, March 23, 2018, April 19, 2018
and April 23, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on P.H. Woven Sacks Private Limited's bank facilities and
instruments will now be denoted as CARE B; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings. The ratings takes into account moderate scale of
operations coupled with thin profit margins, leveraged capital
structure and weak debt coverage indicators, moderate liquidity
position in FY17 (refers to the period April 1, 2016 to March 31,
2017). Furthermore, the ratings continue to remain constrained
due to presence in highly fragmented industry with limited value
addition and prices and supply for cotton being highly regulated
by government and susceptibility of operating margins to
fluctuation in cotton prices and seasonality associated with
cotton industry. The ratings, however, take comfort from the long
experience of the promoters in the cotton industry and location
advantage. The ability of PHW to increase it scale of operations,
profitability, improve capital structure & liquidity position are
the key rating sensitivities.
Detailed description of the key rating drivers
At the time of last rating on April 27, 2017 the following were
the rating strengths and weaknesses. (Updated for the information
available from Registrar of Companies).
Key Rating Weaknesses
Moderate scale of operations coupled with moderate profit
margins: During FY17, PHW has registered a growth of 47.51% and
stood at INR41.73 crore as against INR28.29 crore during FY16.
Profitability margins of PHW stood thin marked by PBILDT margin
stood at 2.09% in FY17 as against 3.14% in FY16 and the
company has continued to report net loss in FY17.
Leveraged capital structure and weak debt coverage indicators:
As on March 31, 2017, Capital Structure of PHW has improved but
continued to stood leveraged marked by overall gearing ratio at
2.91 times as against 3.81 times as on March 31, 2016. Debt
coverage indicators of PHW has also improved marked by Total debt
to GCA stood at 27.12 times as on March 31, 2017 as against 26.34
times as on March 31, 2016. Interest coverage ratio has remained
in the same line as previous year during FY17 and stood at 1.41
times as against 1.40 times during FY16.
Moderate liquidity position: During FY17, Liquidity position of
PHW stood moderate marked by current ratio of 1.18 times which
has improved from 1.03 times during FY16. Working capital cycle
has improved and stood at 45 days during FY17 as against 55 days
during FY16.
Highly fragmented and competitive nature of industry and prices
are regulated by the government: High proportion of small scale
units operating in cotton ginning and pressing industry has
resulted in fragmented nature of industry leading to intense
competition amongst the players. Furthermore, the cotton prices
in India are regulated by government through fixation of MSP
(Minimum Support Price). Hence, prospects of players in cotton
ginning industry are also susceptible to adverse changes in
government policies.
Susceptibility of operating margins to fluctuations in the raw
material prices: Cotton ginners usually have to procure raw
material at significantly higher volume to bargain bulk discount
from suppliers. Cotton is a seasonal crop which results in higher
inventory holding period. Thus, aggregate effect of both the
above factors results in exposure of ginners to price volatility
risk.
Key Rating Strengths
Experienced promoters: The overall affairs of PHW are managed by
its directors, Mr Rajnikant Patel, Mr Piyush Patel and Mr
Prahladbhai Patel. All the promoters have wide experience in the
field of oil mill and ginning line from 2002 to 2007 and are
associated with the partnership firm Akshat Polymers which is
involved in manufacturing of HDPE and PP fabrics and sacks.
Location advantage PHW is based in Kadi region of Gujarat.
Gujarat produces majority of the total national production of
cotton. PHW's presence in cotton producing region leads to
benefit derived out of lower logistic expenditure (both on
transportation and storage) and easy availability and procurement
of raw cotton at effective prices.
P.H. Woven Sacks Private Limited (PHW) is a private limited
company incorporated in March 2013. Mr. Rajnikant Patel, Mr.
Piyush Patel and Mr. Prahladbhai Patel are the key promoters of
the company. All the promoters have wide experience in the field
of oil mill and ginning line from 2002 to 2007 and are associated
with the partnership firm Akshat Polymers which is involved in
manufacturing of HDPE and PP fabrics and sacks. Initially, the
main objective of establishing PWSPL was for the manufacturing of
HDPE/PP woven sacks and fabrics, but considering the existing
capacity of Akshat Polymers, the company changed the main
objective to manufacturing of cotton bales and cotton seeds oil
with their byproducts.
PARAMESWARA COTTON: Ind-Ra Maintains B Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Parameswara
Cotton Mills' Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR14 mil. Term loan due on March 2018 maintained in Non-
Cooperating Category with IND B (ISSUER NOT COOPERATING)
rating; and
-- INR40 mil. Fund-based facilities maintained in Non-
Cooperating Category with IND B (ISSUER NOT COOPERATING)/
IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 18, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Parameswara Cotton Mills is a partnership concern engaged in the
processing and ginning of cotton balls.
PRITS LEATHER: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Prits Leather
Art Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR145 mil. Fund-based limits migrated to Non-Cooperating
Category with IND BB+ (ISSUER NOT COOPERATING) /IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 4, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Prits Leather Art manufactures and exports a wide line-up of
leather products, including garments, bags, belts, accessories.
PURVANCHAL FLOUR: Ind-Ra Migrates BB LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Purvanchal Flour
Mill Private Limited's Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR55 mil. Term loan due on January 2024 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR20 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 26, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Purvanchal Flour Mill is engaged in manufacturing and commercial
packaging of wheat products.
QUEST INFOSYS: Ind-Ra Keeps 'B' Loan Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Quest Infosys
Foundation's bank loan ratings in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using the ratings. The ratings will continue to appear as
'IND B (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR57 mil. Term loan maintained in non-cooperating category
with IND B (ISSUER NOT COOPERATING) rating; and
-- INR40 mil. Fund-based working capital facility maintained in
non-cooperating category with IND B (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 7, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Quest Infosys Foundation, which is chaired by Mr. Dipinder Singh
Sekhon, established Quest Group of Institutions in Jhanjeri,
Mohali, Punjab, in 2009-10 that offers bachelor of technology and
master of business administration courses.
RVM CHARITABLE: CRISIL Reaffirms B+ Rating on INR30MM LT Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating to the long-
term bank facility of RVM Charitable Trust (RVMCT).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 30 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the RVMCT's geographic
concentration in revenue profile, modest scale of operations and
exposure to intense competition and stringent regulations in the
education sector. The rating also reflects below average
financial risk profile. These rating weaknesses are partially
offset by its promoters' extensive industry experience.
Key Rating Drivers & Detailed Description
Weaknesses
* Geographic concentration in revenue profile, modest scale and
exposure to intense competition: RVMCT derives its revenues from
a medical college, nursing college and teaching hospital located
in Medak district of Telangana. This leads to geographic
concentration in its revenue profile. Besides, RVMCT faces
intense competition from many reputed colleges in the state.
* Stringent regulations in the education sector: RVMCT is
affiliated to Kaloji Narayana Rao University of Health Sciences
and is regulated by authorities such as Ministry of Health and
Family Welfare. Each body has specified guidelines regarding
courses offered, infrastructure, faculty members, and syllabus
and course content. Any non-compliance with the guidelines may
adversely affect the Trust's operations.
* Below average financial risk profile: RVMCT has DSCR of 1.5
times over the next 3 years. The Trust is expected to spend its
surplus in improving the infrastructure over the medium term. The
financial risk profile would continue to remain constrained by a
modest net worth as majority of promoters' contribution would
come in the form of unsecured loans.
Strengths
* Promoters' extensive experience: RVMCT's promoter, Dr. R.
Yakaiah is the Chairman of the Governing Body, and is an
academician and medical practitioner. He has more than 2 decades'
experience in the teaching and medical industry. CRISIL believes
that RVMCT's growth will be driven by its experienced management
and sound infrastructure.
Outlook: Stable
CRISIL believes that RVMCT will continue to benefit over the
medium term from its promoters' extensive experience. The outlook
may be revised to 'Positive' if the Trust reports significant
growth in revenue and profitability leading to improved cash
accruals and liquidity. Conversely, the outlook may be revised
to 'Negative' if it undertakes larger-than-expected debt-funded
capital expenditure, or reports a steep decline in revenue and
surplus. Any adverse impact on the Trust's financial risk profile
because of regulatory or legal policies related to educational
institutions may also result in the outlook being revised to
'Negative'.
RVMCT was established in 2004 by Dr. R Yakaiah, the Chairman, and
runs a medical college, nursing college and teaching hospital at
Vantimamidi, Shamirpet.
SANMAN CONSTRUCTIONS: CRISIL Withdraws B Rating on INR4.5MM Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Sanman
Constructions (SC) at the company's request and after receiving a
no-objection certificate from Bank. The rating action is in line
with CRISIL's policy on withdrawal of its ratings on bank
facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.1 CRISIL A4 (Issuer Not
Cooperating; Migrated from
'CRISIL A4'; Rating Withdrawn)
Cash Credit 4.5 CRISIL B/Stable (Issuer Not
Cooperating; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
Proposed Cash 0.4 CRISIL B/Stable (Issuer Not
Credit Limit Cooperating; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with SC for obtaining
information through letters and emails dated May 11, 2018 and
May 16, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SC. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for SC
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Information Adequacy Risk with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of SC to
'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
B/Stable/CRISIL A4'.
SC, set up as a partnership firm in 1998 by Mr. Satish Maheshwari
and Mr. Nitin Maheshwari, undertakes construction of buildings
and allied works, and roads. Around 90 percent of its projects
are for government bodies, such as the Public Works Department of
the Maharashtra government, and Nanded Municipal Corporation, and
are tender based.
SAVARIYA INDUSTRIES: CRISIL Migrates B Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Savariya
Industries (SI) to CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
CRISIL has been consistently following up with Savariya
Industries (SI) for obtaining information through letters and
emails dated April 26, 2018, May 11, 2018 and May 16, 2018 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Savariya Industries, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Savariya Industries is consistent with 'Scenario 1' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BB' category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Savariya Industries to CRISIL B/Stable Issuer not
cooperating'.
Formed in 1996 as a proprietorship firm by Mr Rajkumar Kakraniya,
SI is engaged in cotton seed oil extraction and trading of
pulses. The firm is based in Amravati, Maharashtra.
SHIBSATI COLD: CRISIL Migrates B Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Shibsati
Cold Storage Private Limited (SCSPL) to CRISIL B/Stable/CRISIL A4
Issuer not cooperating.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.2 CRISIL A4 (Issuer Not
Cooperating; Rating Migrated)
Cash Credit 5.87 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term 1.13 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
Term Loan 2.50 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
CRISIL has been consistently following up with SCSPL for
obtaining information through letters and emails dated April 26,
2018, May 11, 2018 and May 16, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shibsati Cold Storage Private
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Shibsati Cold Storage Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Shibsati Cold Storage Private Limited to CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
SCSPL, set up in 2010, is promoted by Mr Debkalyan Roy and Mr
Debabrata Roy of Kolkata. The company provides cold-storage
facilities to potato farmers and traders. Its facilities are in
Paschim Mednipur, West Bengal.
SHREE SIDDHESHWAR: CRISIL Cuts Rating on INR114.85MM Loan to D
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shree Siddheshwar Sahakari Sakhar Karkhana Limited (SSSSKL) to
'CRISIL D' from 'CRISIL B+/Stable'. The downgrade reflects
continuous overdrawing of working capital facility by the society
for more than 30 days due to weak liquidity, following moderation
in in sugar prices.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Rupee Term Loan 114.85 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Sugar Pledge
Cash Credit 25.15 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating factors in the society's below-average capital
structure, large working capital requirement and exposure to
regularity risks. These weaknesses are partially offset by the
society's established presence in the sugar industry, fully
integrated operations and benefits from the positive outlook for
the sugar industry.
Analytical Approach
Interest-bearing deposits of INR64.52 crore that the society has
received from its members have been treated as neither debt nor
equity, as the deposits have a maturity tenure of more than five
years and carry interest at rates that are lower than the market
rate.
Key Rating Drivers & Detailed Description
Weakness
* Overdrawing of working capital facility: Stretched liquidity,
caused by moderation in sugar prices, has led to cash credit
limit being overdue for more than 30 days.
* Working capital-intensive operations: The large working capital
requirement constrains liquidity; gross current assets exceeded
300 days as on March 31, 2018, because of large inventory
holding.
* Below-average capital structure: The networth has deteriorated,
due to cash losses in the past. Sizeable term loans and working
capital debt should keep the gearing high over the medium term.
* Exposure to regulatory changes and cyclicality in sugar
industry: The sugar manufacturing industry is highly regulated
and is also exposed to risks related to seasonality in sugarcane
production. These factors can impact the scale of operations and
margin.
Strength
* Established market position in the sugar industry and healthy
relations with member-farmers: The society has established
presence in the Maharashtra sugar industry since 1971 and has
command area which is spread over across Maharashtra and
Karnataka. The society has more than 28000 farmers as members,
ensuring about 15 lakh tonne of sugar cane availability.
* Integrated nature of operations: The society produces sugar and
by-products, such as rectified spirit, ethanol through distillery
and power through newly set up co-gen plant. Fully integrated
operations and moderate margin estimated on by-products will
enable the society to record better operating performance over
medium term.
SSSSKL, based in Solapur, Maharashtra was established in 1971 by
Late Mr Appasaheb Kadadi. The society is managed by Mr Dharmraj
Kadadi along with an elected board of directors. The society has
its plant at Kumthe, Maharashtra with installed capacity of 7500
tonne crushing per day (TCD). Also, it has distillery with 20
kilolitre per day capacity. Furthermore, the society entered an
agreement with Maharashtra State Electricity Distribution Company
Ltd to set up and operate 38 mega-watt (MW) co-gen plant, which
commenced commercial operations in sugar season of fiscal 2018.
SHRI GEETA: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shri Geeta Sacks
Private Limited (SGSPL) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR150 mil. Non-fund-based facilities assigned with IND A4+
rating.
KEY RATING DRIVERS
The ratings reflect SGSPL's weak credit metrics owing to a low
EBITDA margin due to the trading nature of business, high
competitive and volatile raw material prices. According to FY18
provisional financials, net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 3.77x (FY17: 18.75x) and EBITDA
interest coverage (operating EBITDA to gross interest expense)
was 1.05x (0.52x). Operating EBIDTA margins fell to 0.5% in FY18
(FY17: 1.2%; FY16: 1.3%). Ind-Ra expects SGSPL's EBITDA margin to
be in the range of 1%-2% in the near term.
The ratings are constrained by SGSPL's small scale of operations.
Revenues fell to INR320 million in FY18 (FY17: INR412 million;
FY16: INR287 million) on account of a less number of orders.
However, the ratings are supported by SGSPL's modest liquidity.
Its use of the non-fund-based facilities was about 82.7% on
average during the 12 months ended April 2018. The ratings are
also supported by the company's promoter's three decades of
experience in the plastic packaging industry and a diversified
customer base with long-term customer relationships.
RATING SENSITIVITIES
Negative: Sustained deterioration in the EBITDA margins and
credit metrics will be negative for the ratings.
Positive: Substantial revenue growth, along with any significant
rise in EBITDA margin, leading to an improvement in the credit
metrics on a sustained basis will be positive for the ratings.
COMPANY PROFILE
SGSPL is incorporated on November 14, 2006 and promoted by Mr.
Sunil Ranasaria and Mr. Sajjan Ranasaria. SGSPL is engaged in the
trading of plastic granules.
SHRIDHAR INDUSTRIES: CARE Assigns B+ Rating to INR10.25cr LT Loan
-----------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Shridhar Industries Katni Private Limited (SIKPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 10.25 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SIKPL is primarily
constrained on account of modest scale of operations with thin
profitability margins, moderate solvency position and working
capital intensive nature of operations. The ratings further
constrained on account of seasonality associated with agro
commodities and presence in highly fragmented and government
regulated industry.
The rating, however, favorably takes into account long track
record of operations, experienced promoters in the agro industry
with established relations with various customers and suppliers
and strategically located in proximity to major cultivation areas
for pulses.
Increase in the scale of operations with improvement in
profitability and efficient management of working capital is the
key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operations with thin profitability margins: The
scale of operation of the company stood modest at INR104.52 crore
as on March 31, 2018, during FY17, PBILDT margins of the firm
stood thin at 3.98%, declined by 66 bps over FY16 owing to high
cost of material. The PAT margin of the company also stood thin
at 0.35% in FY17 owing to higher interest expenses.
Moderate Solvency position: The capital structure of SIKPL stood
leveraged with an overall gearing of 3.51 times as on March 31,
2017, improved from 6.05 times as on March 31 2016 mainly on
account of lower utilisation of working capital bank borrowings
as on balance sheet date. Further, debt service coverage
indicators of the company stood weak as reflected by total debt
to GCA of 27.49 times as on March 31, 2017, improved from 42.92
times as on March 31, 2016 mainly due to high proportionate
decline in total debt level as compared to decline in GCA level.
Further, the Interest coverage ratio stood moderate at 1.60 times
in FY17 as against 1.73 times in FY16 due to increase in interest
cost.
Working capital intensive nature of operations: The business of
the company is working capital intensive nature of operations
being present in the processing and trading of agriculture
commodities industry. The operating cycle of the company stood
elongated at 61 days in FY17 due to higher inventory holding
period. Masoor Dal (red Lentil) is a rabi crop and the production
of masoor dal came in the market from March to May. The current
ratio of the company stood moderate as on March 31, 2017 and
quick ratio stood below unity as on March 31, 2017 due to higher
inventory.
Seasonality associated with agro commodities and presence in
highly fragmented and government regulated industry As the
company is engaged in the business of trading of agriculture
commodities, the prices of agriculture commodities remained
fluctuating and depend on production yield, demand of the
commodities and vagaries of weather. Hence, profitability of the
company is exposed to vulnerability in prices of agriculture
commodities.
Further, the business of the firm is characterized by highly
fragmented and competitive in nature as evident by the presence
of numerous unorganized and few organized players. The entry
barriers in this industry are very low on account of low capital
investment and technological requirement. Due to this, the
players in the industry do not have any pricing power. Further
the company has limited flexibility to pass on the price of
increase in raw material prices to its customer.
Further, the industry is characterized by high degree of
government control both in procurement and sales for agriculture
commodities. Government of India (GoI) decides the Minimum
Support Price (MSP) payable to farmers.
Key Rating Strengths
Long track record of operations, experienced promoters in the
agro industry with established relations with various customers
and suppliers: SIKPL was initially formed in 1998 and hence, has
a track record of around two decades in the industry. Mr. Mathura
Prasad Soni has more than three decades of experience in the agro
industry and looks after overall affairs of the company. Mr. Ram
Hit Soni looks after finance related functions of the company and
has more than two decades of experience. Mr Arun Soni is having
an experience of 15 years in the industry and looks after
marketing, sales and purchases.
Strategically located in proximity to major cultivation areas for
pulses: The plant of the company is located in one of the pulses
producing belt of Katni (Madhya Pradesh) in India. The presence
of SKIPL in cotton producing region results in benefit derived
from lower logistics expenditure (both on transportation and
storage), easy availability and procurement of raw materials at
effective price.
Shridhar Industries Katni Private Limited (SIKPL) was initially
formed as a proprietorship concern in 1998 however; in August
2008 it was incorporated as a private limited company by Mr
Mathura Prasad Soni, Mr Ram Hit Soni and Mr Arun Soni. The
company is engaged in the processing of pulses mainly masoor dal
in Katni district of Madhya Pradesh with an annual installed
capacity for milling of 15000 Metric Tonnes Per Annum.
SILVERSTONE ELASTO: Ind-Ra Maintains B- Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Silverstone
Elastomer Private Limited's Long-Term Issuer Rating in the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND B- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR100 mil. Proposed term loan maintained in Non-Cooperating
Category with Provisional IND B- (ISSUER NOT COOPERATING)
rating; and
-- INR20 mil. Proposed fund-based facility maintained in Non-
Cooperating Category with Provisional IND B- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 19, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in May 2013, SEPL is in the process of setting up a
facility for the manufacture of tread rubber (2,400 metric tons
per annum) and the mixing of rubber compounds (12,000 metric tons
per annum).
SITARAM INFRAPROJECT: Ind-Ra Assigns BB+ Rating; Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sitaram
Infraproject Private Limited (SIPL) a Long-Term Issuer Rating of
'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating; and
-- INR100 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
KEY RATING DRIVERS
The rating reflects SIPL's medium scale of operations. Its
revenue declined to INR842 million in FY18 from INR930 million in
FY17 owing to low project execution. The management expects
revenue to grow in FY19, given it had an order book of INR1,171.9
million (1.4x of FY18 revenue). Its EBITDA margin marginally rose
to 6.5% in FY18 after declining over FY14-FY17. Ind-Ra expects
the margin to decline over FY19-FY20 as the company is likely to
continue execute low-margin projects. FY18 financials are
provisional in nature.
The rating also reflects deterioration in SIPL's net cash
conversion cycle to an elongated level from a modest level (FY18:
85 days; FY17: 43 days). This was due to an increase in inventory
days (86 days; 30 days) as the company procured a large part of
its raw materials in 4QFY18. Hence, the company's average peak
working capital limit utilization was nearly full during the 12
months ended April 2018. However, the liquidity is supported by a
cash and bank balance of INR31.5 million as of March 2018.
The ratings, however, are supported by an improvement in the
credit metrics, albeit they still are modest, primarily driven by
a reduction in debt. The interest coverage (operating
EBITDA/gross interest expense) improved to 2.3x in FY18 from 2.2x
in FY17, with the net leverage (total adjusted net debt/operating
EBITDA) enhancing to 2.6x from 3.5x.
The ratings are also supported by the promoter's experience of
more than two decades in the civil construction business.
RATING SENSITIVITIES
Negative: A further decline in the revenue and a fall in the
profitability, leading to any further stress on the liquidity and
any deterioration in the credit metrics, on a sustained basis,
will lead to a negative rating action.
Positive: A substantial rise in the revenue and the
profitability, and an improvement in the liquidity, leading to an
improvement in the credit metrics, on a sustained basis, will be
positive for the ratings.
COMPANY PROFILE
SIPL constructs roads and bridges, and executes pipeline projects
for state (Gujarat, Maharashtra and Goa) and central governments.
The company expects a further improvement of INR472 million in
the order book, the execution of which would commence from
2QFY19.
SMIT DEVELOPERS: Ind-Ra Maintains B LT Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Smit
Developers' Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR70 mil. Term loan maintained in non-cooperating category
with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 29, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2008, Ahmedabad-based Smit Developers is a
partnership firm engaged in residential real estate development.
SUCHEM INTERNATIONAL: CRISIL Assigns B+ Rating to INR10MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Suchem International (SI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Assigned)
Foreign Letter
of Credit 10 CRISIL B+/Stable (Assigned)
The ratings reflect the modest scale of operations in an
intensely competitive trading industry and below average
financial risk profile. These weaknesses are partially offset by
extensive experience of the promoter in the trading industry.
Analytical Approach
For arriving at the ratings, CRISIL has treated unsecured loans
from promoters of INR1 crore as on March 31, 2018 as neither debt
nor equity as these are expected to be retained in business over
the medium term.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations amid intense competition: Scale of
operations is modest, reflected in its estimated revenue of INR45
crore in fiscal 2018, due to intense competition and fragmented
trading industry.
* Below-average financial risk profile: Small net worth of
INR1.20 crore, total outside liabilities to tangible net worth
(TOLTNW) of 6 times and debt protection metrics marked by
interest coverage and net cash accrual to total debt ratios of
2.50-2.75 times and 0.15-0.18 time, respectively, in fiscal 2018.
Strength
* Extensive experience of the promoter SI benefits from its
promoter industry experience of over 30 years, which has resulted
in steady orders from customers and longstanding relationships
with suppliers and customers.
Outlook: Stable
CRISIL believes SI will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if substantial increase in revenue leading to large
cash accruals while improving its financial risk profile. The
outlook may be revised to 'Negative' if decline in cash accrual,
large working capital requirement, or sizeable, debt-funded
capital expenditure constrains liquidity.
Set up in 1996 by Mr Sushil Jhanwar, SI engaged into trading of
chemicals. The firm mainly deals into chemicals such as Hydrazine
Hydrate, Morpholine, Hydroxylamine Sulphate, and Potassium
Carbonate.
SUBHKARAN AND SONS: CRISIL Migrates D Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Subhkaran and
Sons to CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 50 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
CRISIL has been consistently following up with Subhkaran and Sons
(SAS) for obtaining information through letters and emails dated
April 26, 2018, May 11, 2018 and May 16, 2018 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Subhkaran and Sons, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Subhkaran and Sons is consistent with 'Scenario 1' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BB' category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Subhkaran and Sons to CRISIL D Issuer not
cooperating'.
Incorporated in 1981 by Mr Vinod Jatia and Mr Prateek Jatia, SAS
trades in iron and steel products such as hot- and cold-rolled
coils, sheets, and plates, sponge iron lumps, and fines.
SUPERWAYS ENTERPRISES: CRISIL Moves D Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Superways
Enterprises Private Limited to CRISIL D Issuer not cooperating.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 100 CRISIL D (Issuer Not
Cooperating; Rating Migrated)
CRISIL has been consistently following up with Superways
Enterprises Private Limited (SEPL) for obtaining information
through letters and emails dated April 26, 2018, May 11, 2018 and
May 16, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Superways Enterprises Private
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Superways Enterprises Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of Superways Enterprises Private Limited to CRISIL D
Issuer not cooperating'.
Incorporated in 1989 by Mr Vinod Jatia and his family, SEPL
trades in iron and steel products such as hot- and cold-rolled
coils, sheets, and plates, sponge iron lumps, and fines.
TALREJA TEXTILE: CRISIL Migrates B+ Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Talreja
Textile Industries Private Limited to CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.5 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Export Packing 1.5 CRISIL A4 (Issuer Not
Credit Cooperating; Rating Migrated)
Import Letter of 1.25 CRISIL A4 (Issuer Not
Credit Limit Cooperating; Rating Migrated)
Long Term Loan .18 CRISIL B+/Stable (Issuer Not
Cooperating; Rating Migrated)
Proposed Long Term .57 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating; Rating Migrated)
CRISIL has been consistently following up with Talreja Textile
Industries Private Limited (TTIPL) for obtaining information
through letters and emails dated April 26, 2018, May 11, 2018 and
May 16, 2018 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Talreja Textile Industries
Private Limited, which restricts CRISIL's ability to take a
forward looking view on the entity's credit quality. CRISIL
believes information available on Talreja Textile Industries
Private Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Talreja Textile Industries Private Limited to
CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'.
TTIPL, incorporated in 1980, manufactures fusible interlinings.
Its operations are managed by Mr Ashok L Talreja and Mr Mukesh L
Talreja.
TERA SOFTWARE: Ind-Ra Lowers Long Term Issuer Rating to 'BB+'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Tera Software
Limited's (Terasoft) Long-Term Issuer Rating to 'IND BB+' from
'IND BBB-'. The Outlook is Negative.
The instrument-wise rating actions are:
-- INR430 mil. Fund-based limits downgraded with IND BB+/
Negative/IND A4+ rating; and
-- INR880 mil. Non-fund based limits downgraded with IND BB+/
Negative/IND A4+ rating.
KEY RATING DRIVERS
The downgrade and Negative Outlook reflect the sharp fall in
Terasoft's overall credit metrics in FY18, driven by a fall in
revenue and thus EBITDA margin due to lower absorption of fixed
cost. The is attributed to the slower execution of the Andhra
Pradesh State Fibrenet Limited's last mile connectivity projects
(which contribute around 60% to order book as of end-September
2017, which are scheduled to be executed by FY20 in a phased
manner. Ind-Ra expects that the credit profile will continue to
fall in FY19, if company is unable obtain new orders from
government agencies or delays execution speeding of the existing
projects.
Revenue fell 33.21% yoy to INR1,694.38 million in FY18 and EBITDA
margin declined to 5.7% (FY17: 8.9%). Interest coverage
(operating EBITDA/Gross Interest Expense) deteriorated to 1.3x in
FY18 (FY17: 3.9x) and net leverage (adjusted net debt/operating
EBITDAR) increased to 4.1x (2.0x) on account of a fall in the
EBITDA to INR96.62 million (INR225.81 million).
Moreover, the company has a tight liquidity profile, on account
of the working capital intensive nature of operations, driven by
higher receivables days. Its average peak use of the fund-based
working capital facilities during the 12 months ended April 2018
was 96.29%. The company's net working capital cycle stretched to
210 days in FY18 (FY17: 147 days). Debtors increased by 25 days
because the company faced delays in receiving payments from its
major customers who are mainly government agencies and inventory
days increased by 22. Even though the debtor period is long
overdue, the realization is not disputed as they are mainly from
state or central agencies. Any further delay in receiving
payments may impact the liquidity of the company.
RATING SENSITIVITIES
Negative: Further deterioration in the credit metrics and
liquidity could result in a negative rating action.
Positive: A sustained improvement in the revenue coupled with
credit metrics and liquidity could result in a positive rating
action.
COMPANY PROFILE
Hyderabad-based Terasoft provides hardware and software services
through long-term contracts on a build-own-operate-transfer basis
to government organizations. Its three business segments are
projects, technical services and systems integration.
T S R COTTON: CRISIL Reaffirms B+ Rating on INR10MM Cash Loan
-------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank loan
facility of T S R Cotton Ginning Mill (TCGM) at 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
The rating reflects a modest scale of operations with
susceptibility to volatility in cotton prices and to changes in
government regulations and large working capital management. The
rating also factors in a below average financial risk profile
because of an aggressive capital structure and below-average debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the promoters in the cotton
industry and an established customer relationship.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations with susceptibility to volatility in
cotton prices and to changes in government regulations: Scale of
operations is modest, reflected in revenue of INR30.67 Cr in
fiscal 2017 and estimated revenue of INR46.2 Cr in fiscal 2018.
Profitability remains susceptible to movement in cotton prices,
which is further determined by demand-supply dynamics, and any
adverse change in government policies.
* Below average financial risk profile: The company has low
networth of around INR2.88 crores as on March 31, 2017 and
estimated networth of INR3.18 Cr as on March 2018. Gearing stood
at around 3.52 times as on March 2017 and estimated gearing of
3.05 times as on March 2018. The company has below average debt
protection metrics as indicated by its NCATD of around 0.04 times
and interest coverage ratio of around 1.90 times for fiscal 2017.
Estimated NCATD and interest coverage ratio at 0.05 times and
1.70 times respectively for fiscal 2018.
* Large working capital management: Operations are highly working
capital intensive, with gross current assets (GCAs) of 208 days
as on March 31, 2017, led by receivables and inventory of 122 and
71 days, respectively. Gross current assets days are estimated to
be around 150-160 days over the medium term.
Strength
* Extensive industry experience of the promoters and an
established customer relationship: The promoters have been
operating in the cotton industry for over three decades; this has
enabled them to establish a strong relationship with customers
and suppliers.
Outlook: Stable
CRISIL believes TCGM will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of substantial and sustained increase in
profitability, or sizeable capital infusion, leading to a better
capital structure. The outlook may be revised to 'Negative' in
case of a steep decline in profitability, further capital
withdrawal, or a stretched working capital cycle, leading to
weakening of the capital structure.
Established in 1985 and based in Guntur, Andhra Pradesh, TCGM
undertakes cotton ginning, and processing of cotton seed oil.
UNNAO DISTILLERIES: CRISIL Lowers Rating on INR14MM Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Unnao
Distilleries and Breweries Limited (Unnao) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 14.0 CRISIL B+/Stable (Downgraded
from 'CRISIL BB+/Stable')
Proposed Long Term 3.07 CRISIL B+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB+/Stable')
The downgrade reflects sharp deterioration in the business risk
profile of the company marked by significant decline in operating
income, operating margins and stretch in working capital cycle
leading to weakening of the liquidity risk profile of the
company. The company reported operating income of INR62.34 crore
in fiscal 2017 which declined by -38% from fiscal 2016 against
CRISIL's expectation of INR96 crore for fiscal 2017. The
operating income is estimated to remain subdued in fiscal 2018 as
well. Further operating margins declined to 1.5% in fiscal 2017
against CRISIL's expectation of 4.0% over the same period which
led to overall losses. Losses amounted to negative INR3.08 crore
for fiscal 2017 against CRISIL's expectation of profit of INR45
lakhs over the same period exerting downward pressure on
liquidity. The company was able to generate net cash accruals of
negative INR16 lakhs in fiscal 2017 against repayment obligation
of INR39 lakhs over the same period. Consequently the repayment
was made through the infusion of equity by the promoters to the
tune of INR75 lakhs. CRISIL expects the business and liquidity
profile of the company to remain subdued over the medium term.
The downgrade reflects deterioration of the business risk profile
of the Unnao. The decline in profitability resulted in stretched
liquidity with insufficient net cash accrual against meet
repayment obligations. However, the liquidity was supported by
infusion of equity by the promoters to the tune of INR75 lakhs in
fiscal 2017.
The ratings reflects Unnao Distilleries and Breweries Ltd's
(Unnao) established position in the country liquor segment in
Uttar Pradesh, and moderate networth. These rating strengths are
partially offset by exposure to risks relating to unfavorable
government regulations, volatility in prices of molasses, and
modest scale of operations.
Key Rating Drivers & Detailed Description
Strengths
* Established position in the country liquor segment in Uttar
Pradesh: With around 20 years of presence in its core liquor
manufacturing business, Unnao is an established player in the
industry with recognized brands in Indian Made Liquor in state of
Uttar Pradesh.
* Moderate networth: The networth of the company is expected to
remain above average at over INR12 cr as on 31st March 2018. The
networth of the company stood at INR14.26 cr as on March 31,
2017.
Weaknesses
* Vulnerability to government regulations and raw material prices
Unnao operates in the liquor industry, which is highly regulated
by the state and central governments. Government regulation of
the liquor industry covers production, wholesale, and retail
distribution, raw material availability, and pricing. The price
of molasses is determined principally by market forces, and
depends on sugarcane production for the year. Changes in
government policies regarding the prices or supply of molasses
can affect Unnao's operations
* Modest scale of operations: Unnao's scale of operations remains
modest in the highly competitive and fragmented country liquor
segment. Unnao has registered negative annual growth rate of 38
per cent in revenues over the past two fiscal years and has
cocked operating income of INR62.34 cr in fiscal 2017. The county
liquor segment remains fragmented with intense competition from
smaller player which sometimes impacts the more established
players such as Unnao.
Outlook: Stable
CRISIL believes that Unnao will continue to benefit over the
medium term from its established position in the country liquor
segment and will maintain its moderate financial risk profile.
The outlook may be revised to 'Positive' if Unnao reports
substantial and sustained improvement in its revenue and
profitability, thereby improving its business risk profile and
liquidity. Conversely, the outlook may be revised to 'Negative'
if the company reports considerably low revenue or profitability
leading to further weakening of its business risk profile and
liquidity, or if it undertakes a large debt-funded capital
expenditure program, leading to weakening of its capital
structure, or witnesses significant build-up in debtors or
inventory.
Unnao, set up in 2000, is promoted by Mr. Tilak Raj Sharma. Unnao
manufactures and sells country liquor under the Madhuri brand in
Uttar Pradesh. Company has its plant near Kanpur.
USK AGRO: CRISIL Migrates B Rating to Not Cooperating Category
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of USK Agro
Sciences to CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
Long Term Loan 1.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating Migrated)
CRISIL has been consistently following up with USK Agro Sciences
(USK) for obtaining information through letters and emails dated
April 26, 2018, May 11, 2018 and May 16, 2018 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of USK Agro Sciences, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
USK Agro Sciences is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BB' category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of USK Agro Sciences to CRISIL B/Stable Issuer not
cooperating'.
USK Agro Sciences (USK) is a Maharashtra based partnership firm
incorporated in 1999 by Mr. Umakant Mali and Mrs. Manisha
Sambhaji Chavan. USK is engaged in manufacturing of Plant growth
regulators, pesticides, herbicides, insecticides and fungicides.
VAMA WOVENFAB: CRISIL Assigns B- Rating to INR10.57MM LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-
term bank facilities of Vama Wovenfab Private Limited (VWPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.5 CRISIL B-/Stable (Assigned)
Long Term Loan 10.57 CRISIL B-/Stable (Assigned)
The rating reflects a below-average financial risk profile and
working capital-intensive operations. These rating weaknesses are
partly offset by the experience of the promoters in the textile
industry and their funding support.
Key Rating Drivers & Detailed Description
Weakness
* Below-average financial profile: The networth was modest at
INR5.21 crore and the gearing high at 3.36 times, as on March 31,
2017. The debt protection metrics were average, with interest
coverage ratio of 1.8 times and net cash accrual to total debt
ratio of 0.06 time, for fiscal 2017. Moreover, debt obligation is
high at INR3.79 crore, against cash accrual of INR1.03-2.79
crore, per fiscal over the medium term. The financial risk
profile is likely to remain below average over this period.
* Working capital-intensive operations: Extension of significant
credit to customers and large inventory result in high working
capital requirement. Gross current assets were around 6 months,
and are expected at around 161 days over the medium term.
Strengths
* Extensive industry experience of the promoters and their
funding support: The promoters have more than 18 years of
experience in the textile industry through a group firm. This has
led to a strong relationship with customers and suppliers.
Moreover, the promoters have extended funding support and are
expected to continue to do so over the medium term if required.
Outlook: Stable
CRISIL believes VWPL will continue to benefit from the extensive
industry experience of its promoters and their funding support.
The outlook may be revised to 'Positive' in case of a significant
increase in the scale of operations with sustained profitability,
leading to improvement in the debt protection metrics. The
outlook may be revised to 'Negative' if the financial risk
profile, particularly liquidity, weakens because of a stretch in
the working capital cycle or major debt-funded capital
expenditure.
Incorporated in 2011, VWPL was promoted by Mr Vaibhav Gupta and
Mr Suresh Gupta and is engaged in manufacturing of woven fabric
used for packaging.
VICTORIAN MARKETING: CRISIL Raises Rating on INR8.5MM Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facility of
Victorian Marketing Private Limited (VMPL) to 'CRISIL B+/Stable'
from CRISIL B/Stable.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects the improvement in its business risk
profile on the back of significant ramp up in scale of
operations, leading to an improvement in its net cash accruals.
The revenues is estimated to be around INR88 crore in fiscal 2018
against INR43.17 crore in fiscal 2017. Further conversion of
external commercial borrowing to equity of around INR2.8 crore in
fiscal 2018 has resulted in improved financial risk profile with
net worth estimated at INR8 crore and Total outside liabilities
to adjusted networth (TOLANW) of sub 3 times as on March 31,
2018. However, the sustenance of increased revenue and working
capital management with increased scale of operations to remain a
key rating sensitivity factor over the medium term.
Rating continues to reflect volatile operating profitability and
working capital intensive operations. These weaknesses are
partially offset by extensive experience of the promoters in the
coal trading industry.
Key Rating Drivers & Detailed Description
Weakness:
* Volatile operating profitability: Profitability has remained
volatile and is estimated to be at around 5% in fiscal 2018
against 9.9% in fiscal 2016 as operations are sensitive to
fluctuations to prices of coal and transportation cost.
* Working capital-intensive operations: Company has working
capital intensive operations indicated by gross current assets of
around 148 days as on March 31, 2017. Increased working capital
requirements were on account of stretched debtors (100 days as on
March 31, 2017) and moderate inventory (59 days as on March 31,
2018). This has resulted in high bank limit utilization.
Strengths:
* Extensive experience of the promoters: The promoters have an
experience of around 4 decades in the coal industry. Over the
years, the promoters have developed good insight of the coal
industry resulting in healthy business relationships with
customers.
Outlook: Stable
CRISIL believes VMPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of sustained growth in revenue and
profitability or further equity infusion, leads to an improved
capital structure. The outlook may be revised to 'Negative' in
case of a lower than expected cash accruals, deterioration in the
capital structure, or stretched liquidity due to increase in
working capital requirement.
VMPL, based in Nagpur, Maharashtra, was established in 1976 by
the Agrawal family. The company was engaged in domestic coal
trading.
VIDEOCON INDUSTRIES: NCLT Admits Insolvency Proceedings
-------------------------------------------------------
Vishwanath Nair at BloombergQuint reports that the Mumbai bench
of the National Company Law Tribunal on June 6 admitted Videocon
Industries Ltd. under the Insolvency and Bankruptcy Code, two
bankers in the know confirmed on the condition of anonymity.
Anuj Jain from KPMG has been appointed as the interim resolution
professional at the company by the NCLT, BloombergQuint says.
According to the report, State Bank of India had filed the
insolvency petition against Videocon Industries in December last
year, following directions from the Reserve Bank of India. The
regulator in August 2017 had sent a list of 29 stressed corporate
accounts to bankers for action under the insolvency process. The
RBI gave banks six months to resolve the cases outside the NCLT,
failing which, the insolvency process would be initiated.
BloombergQuint relates that Videcon Industries promoter Venugopal
Dhoot said the company will not challenge the insolvency
admission. "We already had a proposal approved by lenders where
all our cash flows from the oil business would be given to banks.
But before we could proceed on that, the NCLT issue came up. We
are certain lenders will agree to withdraw since under our plan,
they will get repaid fully," Dhoot told BloombergQuint over the
phone.
According to the bankers quoted above, the claims of financial
creditors may exceed INR20,000 crore, BloombergQuint says. The
Indian lending consortium to Videocon Industries consists of 27
banks, which includes SBI and its five associate banks. Together,
Videocon's gross borrowing stands at over INR47,000 crore, as on
March 31, 2016, according to the India Corporate Health Tracker
report by Credit Suisse released in February.
Videocon Industries fell into financial stress after its oil
business suffered losses, the report says. The company attempted
to sell some of its assets and repay banks, but nothing serious
materialised. Lenders have been trying to resolve the stress in
the company since 2016, under the previous stressed asset
management framework.
The Central Bureau of Investigation in March had said that it had
initiated an initial enquiry against Dhoot. This was in relation
to alleged suspicious business dealings with Deepak Kochhar,
whose wife Chanda Kochhar heads ICICI Bank. In 2016, investor
Arvind Gupta had alleged that ICICI Bank's loans to Videocon
Group were approved under suspicious circumstances. An initial
enquiry is conducted to establish facts before conducting a full
fledged investigation.
Videocon Industries sells consumer products like color
televisions, washing machines, air conditioners, refrigerators,
microwave ovens and many other home appliances in India.
Videocon is on the second list of 28 defaulters by the Reserve
Bank of India (RBI) under the Insolvency and Bankruptcy Code.
* INDIA: 30 Regional Firms Face Insolvency Proceedings
------------------------------------------------------
The Tribune reports that at least 30 companies in Punjab region
are undergoing insolvency proceedings filed by banks before the
National Company Law Tribunal (NCLT), Chandigarh, since the
enactment of Insolvency and Bankruptcy Code (IBC) last year.
"These include Amtek Auto, SEL Manufacturing, James Hospitality,
Arcee Ispat Udyog Ltd, Mor Farms (P) Ltd and Castex Technologies.
The cases have been filed by the creditors, including Corporation
Bank, SBI and PNB," said sources.
Amtek Auto has a liability of INR14,000 crore. Recently, Liberty
House, a part of Sanjeev Gupta's global industrial group GFG
Alliance, has been chosen as the highest preferred bidder for
Amtek Auto's assets, which include 35 automotive component plants
across India, Japan, Thailand and Spain, employing 6,000 people.
Similarly, SBI filed bankruptcy proceedings against Ludhiana-
based textile player, SEL Manufacturing Company Ltd in October
last year. As per sources, SEL owes over INR4,000 crore to 17
nationalised banks as of March 2017.
On being asked about the resolution mechanism, experts said,
"Under the IBC, once the case is filed for insolvency with the
NCLT, the resolution professional takes over the management of
the company and tries to resolve the issue. The liquidation
process begins only when the resolution professional is not
hopeful of reviving the company."
=================
I N D O N E S I A
=================
MODERNLAND REALTY: Fitch Affirms 'B' IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based homebuilder PT
Modernland Realty Tbk's Long-Term Issuer Default Rating (IDR) at
'B'. The Outlook is Stable.
The affirmation of Modernland's ratings reflects Fitch's view
that the company's business and financial risk profiles are
largely intact, despite the still-weak demand for properties in
Indonesia. Fitch believes Modernland's ratings are supported by
the quality of its assets and established domestic franchise. In
Fitch's view, the company has successfully managed its liquidity
through its strategy of selling land in bulk, which reinforces
its track record during challenging conditions.
KEY RATING DRIVERS
Presales Decline Amid Weak Demand: Fitch forecasts Modernland
will book around IDR2 trillion-2.5 trillion of attributable
presales in 2018 as the company continues to launch new
residential clusters in its Jakarta Garden City (JGC) project.
Modernland's 1Q18 attributable presales rose more than 60% yoy to
around IDR1 trillion, mainly due to a bulk land sale to PT
Waskita Karya Realty. Attributable presales, excluding the bulk
land sale, fell around 50% to about IDR330 billion in the quarter
from a year earlier, with weak industrial land sales contributing
to the decline.
Fitch's rating case assumes minimum bulk sales in 2019 and
forecasts attributable presales of around IDR2 trillion due to
potential election friction, and growth to IDR3 trillion-3.5
trillion in 2020-2021 as the company opens up its second
residential and industrial estate in Bekasi.
Bulk Land Sales Support Liquidity: Fitch believes Modernland's
large land bank and the sites' good locations allow the company
to sell land in bulk, which may provide liquidity support during
downturns in the property cycle. In 2013-2017, Modernland sold
over 200 hectares of land to Charoen Pokphand, 8.5 hectares to
AEON, 0.5 hectares to Cross Mobile, 3.7 hectares to IKEA and 125
hectares to PT Alam Sutera Realty Tbk (ASRI; B/Stable).
In 4Q16 and 1Q18, the company also sold around 67 hectares to its
67:33 joint venture (JV) with PT Astra Land Indonesia and around
350 hectares to its 60:40 JV with Waskita Karya Realty. The bulk
land sales are volatile but they are also important contributors
to Modernland's cash flows and the volatility is mitigated by low
development risks as bulk and industrial land sales have
relatively wide profit margins.
Good Locations and Established Franchise: Modernland has a 27-
year record in developing industrial estates and has built strong
relationships with tenants. Its flagship industrial estate in
Cikande in the west of Java island has a very low average land
cost, compared with the current average selling price of around
IDR1.6 million per sq m, and Modernland has sufficient land to
continue developing there for around 10 years, assuming no
further land acquisitions. Fitch believes Modernland can build on
its success in Cikande and use a similar business model for
future developments in its other industrial estate in Bekasi,
also in western Java.
Improving Residential Track Record: Fitch expects Modernland's
residential and commercial property segment to account for an
average of 50% of attributable presales in 2018-2021, driven by
the JGC project and new launches in Bekasi. Fitch believes the
JVs that Modernland has entered into may further improve the
company's track record in developing integrated, large-scale
residential projects, and also the growing proportion of
residential sales may counterbalance volatility in industrial
land sales.
Land Sales to ASRI: As of end-2017, ASRI completed the purchase
and payment of 125 hectares of land out of the agreed 170
hectares. Modernland and ASRI are in further discussions over the
purchase of the remaining land, with no specific timeline for
completion. Modernland's management believes ASRI may eventually
complete the acquisition, given the strategic location of the
land in Serpong in western Java and the decision of ASRI's
management to accelerate land acquisition in the area due to the
completion of a number of toll roads in the region in 2018-2019.
Fitch has assumed 5 hectares of annual land sales to ASRI in 2018
and 2019.
Manageable Forex Risk: Modernland has fully hedged the principal
of its outstanding US dollar bonds using call-spread options,
covering rupiah depreciation of up to IDR15,000 per US dollar.
Fitch also believes that Modernland's US dollar cash reserves and
relatively wide profit margins may be sufficient to absorb short-
term currency volatility. As of end-2017, Modernland had around
USD17 million of cash, which is sufficient to cover a substantial
amount of its US dollar bond coupons in 2018.
DERIVATION SUMMARY
Modernland's rating may be compared with other Fitch-rated
Indonesian property developers such as PT Agung Podomoro Land Tbk
(APLN, B+/Stable), PT Kawasan Industri Jababeka Tbk (Jababeka,
B+/Stable) and ASRI.
Jababeka is one of Indonesia's leading industrial property
developers. Its Long-Term IDR is supported by the recurring cash
flows it derives from its power plant, which has a 20-year power
purchase agreement (PPA) with state-owned PT Perusahaan Listrik
Negara (Persero) (PLN; BBB/Stable), as well as from its other
infrastructure businesses. Although Jababeka's power plant is
currently on a reserve-shutdown status, Fitch's understanding is
that Jababeka still receives regular payments from PLN under the
PPA offtake agreement.
These cash flows provide adequate cover for Jababeka's interest
expenses across economic cycles. The stability of its recurring
cash flow supports a higher rating than for Modernland, whose
property sales have been somewhat volatile in the last two years.
Fitch also believes Jababeka's industrial development, which is
more strategic than Modernland's Cikande estate, further supports
its higher rating.
APLN is a leading residential and commercial property developer
in Indonesia and Fitch believes its larger presales scale, lower
exposure to cyclical industrial land sales and stronger recurring
income profile warrant the one-notch difference with Modernland's
rating. Modernland's exposure to bulk and industrial land sales
results in more volatile cash flows than peers that depend on
residential sales.
ASRI's established track record in residential development is a
key differentiating factor to Modernland. Fitch believes ASRI has
a better record of selling residential properties and a larger
land bank to support sales compared with Modernland. Still,
Modernland has demonstrated stronger sales execution during the
recent downturn. These reasons, combined with both companies'
similar presales scale, support their similar ratings.
Modernland's lower leverage profile also offsets ASRI's wider
profit margins.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Attributable presales of around IDR2 trillion-2.5 trillion
in 2018.
- Land acquisition capex of around IDR500 billion-550 billion
in 2018
- Construction capex of about IDR800 billion in 2018
Key Recovery Rating assumptions:
- The recovery analysis assumes Modernland will be liquidated
in a bankruptcy rather than continue as a going-concern because
it is an asset trading company
- For estimating the liquidation value, Fitch has assumed a 75%
advance rate against the value of accounts receivable and a 50%
advance rate against its inventories and fixed assets. Fitch
believes the company's reported land bank value, which is based
on historical land cost, is at a significant discount to current
market value and, thus, is already conservative
- Fitch has assumed that Modernland's secured bank loans and
secured rupiah bonds outstanding as of December 31, 2017 will
rank prior to its USD297 million senior unsecured notes in a
liquidation
- Fitch has deducted 10% of the resulting liquidation value for
administrative claims
- The above estimates result in a recovery of 91%-100% of
Modernland's unsecured debt, corresponding to a 'RR1' Recovery
Rating for the senior unsecured notes. Nevertheless, Fitch has
rated the senior notes at 'B' with a Recovery Rating of 'RR4'
because under Fitch's Country-Specific Treatment of Recovery
Ratings criteria, Indonesia falls into 'Group D' of creditor
friendliness. Instrument ratings of issuers with assets in this
group are subject to a soft cap at the issuer's IDR.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Sustained generation of attributable residential and
commercial presales (excluding bulk sales) above IDR2 trillion
without any material weakening in financial profile may result in
a positive rating action (2017: IDR1.3 trillion)
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Attributable presales/gross debt sustained at less than 40%
(2017: 43%)
- Sustained generation of attributable residential and
commercial presales (excluding bulk sales) below IDR1 trillion
may result in a negative rating action
LIQUIDITY
Sufficient Liquidity: As of end-2017, Modernland had a readily
available cash balance of over IDR1 trillion compared with around
IDR700 billion of maturing short-term debt, consisting mainly of
IDR600 billion in bonds and a IDR50 billion short-term debt
facility, which is renewed annually over the normal course of
business. Fitch expects Modernland's overall liquidity ratio to
be around 1.3x for 2018 after taking into account its forecast of
negative free cash flows of around IDR170 billion during the
year.
Modernland's capex in the short term is going to be limited to
construction costs, which are partly contingent upon meeting
sales thresholds in the current period. This, coupled with the
discretionary nature of land acquisitions, may allow Modernland
to accumulate cash and shore up its liquidity profile. Liquidity
is also supported by Modernland's access to local banks and
capital markets.
FULL LIST OF RATING ACTIONS
PT Modernland Realty Tbk
- Long-Term Issuer Default Rating affirmed at 'B'; Outlook
Stable;
- Senior unsecured debt rating affirmed at 'B';
Modernland Overseas Pte Ltd
- USD240 million 6.95% senior unsecured bond due 2024 affirmed
at 'B' with Recovery Rating of 'RR4'
Marquee Land Pte Ltd
- USD57 million 9.75% senior unsecured bond due 2019 affirmed
at 'B' with Recovery Rating of 'RR4'
TIPHONE MOBILE: Fitch Cuts National LT Rating to 'B+(idn)'
----------------------------------------------------------
Fitch Ratings Indonesia has downgraded Indonesian-based
telecommunication trading company PT Tiphone Mobile Indonesia
Tbk's National Long-Term Rating to 'B+(idn)' from 'BBB+(idn)'. At
the same time, the agency has downgraded the ratings on Tiphone's
IDR500 billion bonds due in July 2018 to 'B+(idn)' from
'BBB+(idn)'. All of the ratings have been placed on Rating Watch
Negative (RWN).
The downgrade is driven by Tiphone's weak cash flow generation
and liquidity profile due to sustained negative CFO. Negative CFO
of IDR583 billion at end-2017 was much worse than Fitch's
previous expectation of less than IDR200 billion. This resulted
in adjusted debt/EBITDAR rising to 5.7x as at end-2017 (2016:
4.8x).
The RWN reflects the increasing liquidity risk as the company
does not yet have funds in place to meet IDR1 trillion bond
maturities in July 2018, although plans are in progress to issue
a new bond. Tiphone has limited liquidity backup, as its cash
position of IDR785 billion and its undrawn facilities would leave
the company with limited cash to support its business. The
company's prolonged negative CFO also puts pressure on its
liquidity.
'B' National Ratings denote a significantly elevated default risk
relative to other issuers or obligations in the same country.
Financial commitments are currently being met, but a limited
margin of safety remains and capacity for continued timely
payments is contingent upon a sustained, favourable business and
economic environment.
KEY RATING DRIVERS
Enduring Negative CFO: Fitch expects adverse working capital
movements and a longer cash conversion cycle to continue, driving
the need for new external funding. Tiphone has had negative CFO
of above IDR580 billion at least since 2015. Its negative CFO
rose to IDR583 billion in 2017, despite the significant decline
in sales growth to just 2.2% in 2017 (2016: 23.9%). This
increased total debt/EBITDA to above 5.5x in 2017, from less than
5.0x in 2016.
Concentrated Debt Maturity: Tiphone has more than IDR1 trillion
of bonds maturing in July 2018, comprising IDR500 billion of
bonds issued in July 2015 and IDR514 billion of bonds issued in
June 2017. In addition, the company has another large IDR2.7
trillion of debt maturing in 2020, which mostly consists of a
long-term revolving loan.
Minimal Liquidity: The company has almost fully drawn down its
bank facilities, with an undrawn portion of less than IDR300
billion left as of 1Q18, which was mostly short-term facilities.
In addition, the company had only IDR785 billion in cash. As
such, Tiphone will have to find additional sources of capital to
repay the July 2018 maturities and for working capital if the
trend of negative CFO persists. The company has shareholder-
approved plans to issue bonds in 2018 to address the maturing
debt, although Fitch cannot be certain of the market's appetite
for this instrument.
Changing Business Mix: Tiphone's revenue from its voucher
business have fallen in 2017 and 1Q18, while revenue from its
handset business recorded yoy growth of more than 30% in 2017 and
90% in 1Q18. This is a potentially adverse change in the
company's business mix, as the handset business carries less
stable cash flow and higher inventory risk than the voucher
business.
DERIVATION SUMMARY
The company's liquidity position indicates a limited margin of
safety against default remains and capacity for future payments
is reliant on the favourable trends, and the provision of new
external capital which Fitch is uncertain will be available.
These risks are characteristics of 'B(idn)' category rating
definitions, although Fitch rates the company at 'B+(idn)' as the
company still has some time to find funds to meet the July 2018
maturity.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- 10% decline in voucher business in 2018 and slow revenue
growth of around 2% in 2019-2021
- 11% growth in handset business in 2018 with growth slowing to
2%-3% in 2019-2021
- Lower EBITDA margin of around 2.5% in 2018-2021 (2017: 3.3%)
- Longer cash conversion cycle of around 100 days in 2018-2021
(2017: 89 days)
- Dividend pay-out ratio of 25% in 2019-2021 (2017: 9%)
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Positive action will be contingent on the company accessing
funds to meet the July 2018 maturities and progress on the
implementation of a sustainable capital structure and improved
liquidity management
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Evidence of further deterioration in the company's liquidity
profile
LIQUIDITY
Critically Weak Short-Term Liquidity: Tiphone had IDR785 billion
of cash as of 1Q18, compared to IDR1 trillion of bonds maturing
in 2018. Tiphone also has minimal undrawn committed and
uncommitted facility of less than IDR300 billion. The company has
publicly announced a bond issue of IDR1 trillion to refinance its
maturing bond and cover its liquidity shortfall. However, the
company has another IDR2.7 trillion of debt maturing in 2020,
which mostly consists of a long-term revolver loan.
=========
J A P A N
=========
TAKATA CORP: Special Master Launches Airbag Compensation Program
----------------------------------------------------------------
The following statement is being issued by Professor Eric D.
Green, Special Master for the Department of Justice's Takata
Airbag Individual Restitution Fund and the Trustee of the Tort
Compensation Trust Fund Created in the Takata Bankruptcy Cases.
Takata Defective Airbag Claims
Professor Eric D. Green, the Court-Appointed Special Master of
the Department of Justice's $125 million Takata Individual
Restitution Fund ("IRF") and the Court-Appointed Trustee of the
Takata Airbag Tort Compensation Trust Fund ("TATCTF") created in
the Takata bankruptcy case on May 30 disclosed that he has
launched the compensation program for individuals who suffered
personal injury or wrongful death caused by the rupture or
aggressive deployment of a Takata phase-stabilized ammonium
nitrate airbag inflator (a "Takata Airbag Inflator Defect"). The
TATCTF has about $140 million.
There are three types of claims that can be brought by
individuals who suffered injury or wrongful death caused by a
Takata Airbag Inflator Defect: (i) an "IRF Claim" for
compensation from the IRF, the personal injury and wrongful death
restitution fund overseen by the Special Master and established
under the Restitution Order entered by the United States District
Court for the Eastern District of Michigan (the "District Court")
on February 27, 2017 in connection with the Department of
Justice's criminal case against Takata, U.S. v. Takata
Corporation, Case No. 16-cr-20810 (E.D. Mich.); (ii) a "Trust
Claim" against Takata, which must be resolved through the TATCTF,
overseen by the Trustee and established in connection with
Takata's Chapter 11 Plan of Reorganization (the "Bankruptcy
Plan") in the Bankruptcy Court for the District of Delaware (the
"Bankruptcy Court"), and (iii) a "POEM Claim" against a
Participating Original Equipment Manufacturer (a "POEM;"
presently the only POEM is Honda/Acura), which must be resolved
pursuant to the Bankruptcy Plan through the TATCTF overseen by
the Trustee.
Each of these three types of claims has its own eligibility
requirements and each claim type covers only physical injuries
and wrongful death resulting from a Takata Airbag Inflator
Defect. Claims related to injuries or wrongful death caused by
other airbag components -- such as airbag failure to deploy,
spontaneous airbag deployment, crash injuries unrelated to the
inflator, or economic losses unrelated to physical injuries or
death -- are not covered by the three types of claims described
above.
Individuals can now access the claim forms, which include
detailed instructions regarding how to file a claim, on the IRF
website, www.takataspecialmaster.com, or on the TATCTF website,
www.TakataAirbagInjuryTrust.com.
Oversight of the Claims Process and Resources for More
Information
Professor Green was appointed by the District Court to serve as
the Special Master overseeing IRF Claims and was appointed by the
Bankruptcy Court to serve as the Trustee overseeing Trust Claims
and POEM Claims
About Takata Corp
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 17-11375) on June 25, 2017. Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
US$1.588 billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata. Ernst & Young
LLP is tax advisor. Prime Clerk is the claims and noticing
agent. The Debtors Meunier Carlin & Curfman LLC, as special
intellectual property counsel.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act. The
Canadian Court appointed FTI Consulting Canada Inc. as
information officer. TK Holdings, as the foreign representative,
is represented by McCarthy Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New
York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The
Committee has also tapped Chuo Sogo Law Office PC as Japan
counsel.
The Official Committee of Tort Claimants selected Pachulski Stang
Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate of the
insurance policies. Sakura Kyodo Law Offices will serve as
special counsel.
Roger Frankel, the legal representative for future personal
injury claimants of TK Holdings Inc., et al., tapped Frankel
Wyron LLP and Ashby & Geddes PA to serve as co-counsel.
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
* * *
In February 2018, the U.S. Bankruptcy Court confirmed the Fifth
Amended Chapter 11 Plan of Reorganization filed by TK Holdings,
Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's
subsidiaries and affiliates.
=================
S I N G A P O R E
=================
STATS CHIPPAC: Fitch Affirms B+ IDR, Outlook Stable
---------------------------------------------------
Fitch Ratings has affirmed Singapore-based STATS ChipPAC Pte.
Ltd.'s (STATS) Long-Term Foreign-Currency and Local-Currency
Issuer Default Ratings (IDR) at 'B+'. The Outlook is Stable.
Simultaneously, the agency has affirmed STATS's 8.5% USD425
million senior secured notes due 2020 at 'BB', with Recovery
Rating of 'RR2'. The notes are guaranteed by all the key
operating companies, except those in China and Thailand.
The ratings on the semiconductor outsourced assembly and test
(OSAT) company are based on the consolidated credit profile of
Jiangsu Changjiang Electronics Technology Co. Ltd. (JCET), its
100% parent, given the strong operational and strategic linkages
between the two entities. JCET group has a smaller scale, weaker
market position and weaker technological capabilities relative to
Taiwanese peers. Fitch expects JCET group's FFO-adjusted leverage
to improve following a planned equity injection in 2018, but it
is likely to remain higher than that of larger peers. The group's
FCF is likely to continue to be negative given its substantial
capex plans to narrow the technology gap with larger peers.
KEY RATING DRIVERS
Strong Linkages with Parent: STATS is strategically important to
JCET group's consolidated credit profile as STATS accounts for
35%-40% of the group's revenue and EBITDA. STATS's advanced
packaging capability in Korea and Singapore are critical for
JCET's success in the OSAT industry. JCET controls the board at
STATS and its key operating and financial decisions. During 2017,
JCET provided an equity injection of USD163 million to STATS and
converted its shareholder loan of USD30 million into equity in
STATS.
Market Challenger Position: JCET group's business profile
benefits from its position as the third-largest OSAT company
globally with around 13%-14% revenue market share, its fully
integrated offerings and a diversified revenue base. Over half of
group revenue and EBITDA is from customers in the US and Europe,
with the rest from customers in China. The group's technological
capability is improving and it offers a full suite of packaging
technologies, including traditional wire bonding and advanced
packaging technologies, such as flip chip and wafer level.
The group has made significant investments in wafer-level
packaging and system in package (SiP) to strengthen its
competitive position relative to larger Taiwanese peers.
Volatile Cash Generation: JCET group's cash flows are more
volatile as demand for communication devices is slowing. Its
growing exposure to crypto-currency mining machines and lower-
margin SiP business may affect cash generation during cyclical
downturns, given the fixed cost nature of the business. Fitch
forecasts JCET group's revenue and EBITDA to increase by 3%-5% in
2018 driven by the SiP business and higher assembly and testing
demand from Chinese customers. Fitch expects JCET group's
operating EBITDAR margin to decline as growth is driven by lower-
margin SiP business and STATS utilisation rate remains low at
60%-70%.
Planned Equity Injection: Fitch expects JCET group's 2018 FFO-
adjusted leverage to improve to around 3.5x-4.0x with a planned
equity injection of CNY4.1 billion by China Integrated Circuit
Industry Investment Fund Co., Ltd. (IC fund), Semiconductor
Manufacturing Investment Corp (SMIC) and other investors. The
equity injection is subject to approval from the Chinese
Securities Regulatory Commission. JCET group's leverage is higher
than that of industry peers - market leader Advanced
Semiconductor Engineering, Inc. (ASE, BBB/Stable) and second-
largest Amkor Technology Inc. (Amkor) has FFO-adjusted leverage
of 2.0x-2.5x.
Negative FCF to Continue: Fitch forecasts JCET group's FCF to
continue to be negative as its CFO will be insufficient to fund
its large capex plans. JCET is likely to invest USD550 million-
600 million to expand STATS's wafer level technology capacity and
its SiP capacity at its Korean facility. Most industry
participants will continue to invest in SiP and wafer-level
advanced packaging technologies to meet demand for smaller chips
in end-user devices. SiP capabilities are important for the
growing market for wearable devices, such as Apple Watch and
iPhone.
Stable 2018 Industry Outlook: Fitch forecasts stable credit
quality for large OSAT companies. Industry cash generation should
benefit from a 3%-4% annual increase in communication device
demand in 2018. The industry's gross leverage is likely to remain
stable on lower but positive FCF. Industry CFO is likely to
remain robust as capex requirements hold steady. Fitch forecasts
the industry operating EBITDAR margin to remain stable, on cost
savings and improvements in capacity utilisations.
Bond Rated Higher Than IDR: Fitch rates STATS's 8.5% USD425
million secured bond two notches above the IDR, reflecting the
superior recovery benefits from the security package, which
covers principally all of STATS's group assets outside China and
Thailand. In line with Fitch's country-specific treatment of
Recovery Ratings, Fitch applies a jurisdiction cap of 'RR2' based
on the weighted average of revenue and assets for STATS key
facilities, despite higher bespoke recovery. The guarantor's
subsidiaries represent about 74% of STATS's group assets and 76%
of revenue. As of end-December 2017, the non-guarantor
subsidiaries had USD258 million of trade payables.
Fitch uses the going-concern value approach to calculate the
post-restructuring enterprise value. Fitch estimates post-
restructuring cash flow to be around USD200 million, based on the
assumptions that the current business position is depleted under
the stress that provoked a default and some corrective action
would have occurred during restructuring. Fitch has assumed a
cash flow multiple of 4.5x. The adjusted going-concern enterprise
value after administrative claims is USD810 million, which is
then applied to USD802 million owed to creditors. This consists
of the USD425 million of senior secured notes, a US dollar
syndicated facility and revolving credit facilities. The
company's USD219 million in perpetual securities are subordinated
to secured notes and a syndicated bank loan.
DERIVATION SUMMARY
The ratings on STATS are based on the consolidated credit profile
of JCET group, given the strong operational and strategic
linkages between the two entities. JCET group's consolidated
credit profile benefits from its position as the third-largest
OSAT company globally and its comprehensive service offerings,
which include advanced packaging, SiP and testing services.
JCET group's business risk profile is weaker than that of market
leaders ASE and Amkor. JCET group is a "challenger" in the OSAT
industry with around 13%-14% revenue market share compared with
ASE's 29% and Amkor's 16%. It has weaker technological
capabilities and product portfolio, and therefore requires more
capex to bridge the technology gap with ASE and Amkor. It has a
higher exposure to the fast-saturating communication devices
market, than peers, which exposes it to higher cash generation
volatility during cyclical downtrends. Both ASE and Amkor have
strengthened their market position through M&As.
JCET group's 2018 forecasted FFO-adjusted leverage of around
3.5x-4.0x (2017: 4.1x) is weaker than those of ASE and Amkor. The
group has a negative FCF profile given large capex requirements,
while ASE and Amkor both generate healthy positive FCF on a
consistent basis.
KEY ASSUMPTIONS
Fitch's Key Assumptions within Its Rating Case for the Issuer
- JCET's consolidated revenue to grow by 3%-5% in 2018, mainly
driven by the SiP business and higher demand from Chinese
customers.
- Consolidated operating EBITDAR margin to deteriorate by 50bp-
100bp to around 14.5%-15.5% (2017: 16%) as additional revenue is
driven by the lower-margin SiP business.
- Capex investments of USD550 million-600 million during 2018-
2019.
- JCET will receive planned equity injection of CNY4.1 billion
from IC fund, SMIC and other investors.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Fitch may upgrade the IDRs to 'BB-' if JCET group's
consolidated FFO-adjusted leverage improves to below 3.0x.
However, Fitch believes that the group is unlikely to deleverage
organically to this extent given the tough market environment and
the group's investment plans, and it is likely to require an
equity injection if leverage is to fall below 3.0x.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- JCET's cash flows are lower than Fitch's expectations,
leading to its consolidated FFO-adjusted leverage deteriorating
above 4.5x.
- JCET's loss of control and/or majority board representation
in STATS and its holding companies.
LIQUIDITY
Adequate Liquidity: At end-December 2017, JCET group's liquidity
was adequate with cash balance of CNY2.2 billion which was
sufficient to pay for short-term debt of CNY1.2 billion. Fitch
expects JCET group to continue to enjoy strong access to capital
from Chinese banks. Liquidity will further strengthen once the
planned equity injection of CNY4.1 billion is completed in 2018.
Liquidity at STATS was also adequate with cash of USD110 million
sufficient to pay for short-term debt of USD59 million.
=============
V I E T N A M
=============
VIETNAM ELECTRICITY: Fitch Assigns 'BB' IDR; Outlook Stable
-----------------------------------------------------------
Fitch Ratings has assigned Vietnam Electricity (EVN) a Long-Term
Foreign-Currency Issuer Default Rating (IDR) of 'BB' with a
Stable Outlook. The agency has also assigned EVN a senior
unsecured rating of 'BB'. EVN is the first government-linked non-
financial corporate rated by Fitch in Vietnam.
EVN's ratings reflect its standalone credit profile, which is at
the same level as that of the Vietnam sovereign (BB/Stable).
Under Fitch's Government-Related Entities Rating Criteria, EVN's
ratings will be equalised to that of the sovereign in case of any
weakening in its standalone credit profile, provided linkages
remain intact.
EVN's standalone credit profile benefits from its position as the
owner and operator of Vietnam's electricity transmission and
distribution network and near 61% share of the country's power
generation capacity. An upgrade of EVN's standalone credit
profile is contingent upon the consistent application of
electricity regulatory reforms, including timely changes to
tariffs that reflect cost changes, while FFO adjusted net
leverage is sustained below 5.0x.
KEY RATING DRIVERS
Strong State Linkages: Fitch sees EVN's status, ownership and
control by the Vietnam sovereign as very strong. The state fully
owns EVN, appoints its board and senior management, direct
investments and approves tariff hikes in excess of 5%. The
support record and Fitch's expectations of state support for EVN
are strong, as the company has received guarantees, step-down
loans, loans from state-owned banks at preferential rates,
subsidies for strategically important projects and tax incentives
among other support types. Fitch expects support to be available
if needed, even though the government intends to lower direct
support for state-owned enterprises and contain sovereign debt
levels.
Strong State Incentive to Support: Fitch believes the socio-
political implications of a potential EVN default are strong, as
a default by EVN would lead to service disruption in light of the
company's entrenched position across the electricity-sector value
chain. It would also be difficult to fund new power investments.
Fitch sees the financial implications of a potential default by
EVN as very strong, as this would significantly affect the
availability and cost of domestic and foreign financing options
for the state and government-related entities, as EVN is one of
Vietnam's key borrowers.
Entrenched Market Position: EVN is a monopoly in Vietnam's
electricity transmission and distribution sector. The company
owns and operates about 61% of the country's total installed
generation capacity, including large strategic hydro-power
assets, which the government uses to generate electricity,
control floods and for irrigation. EVN also operates the national
power-dispatch system, selling electricity to more than 25
million customers across the country. The group has steadily
augmented its generation capacity and cut transmission and
distribution losses over the previous few years.
Strong Demand, Solid Collections: Fitch expects electricity
demand in Vietnam to continue increasing at an average rate of 9%
per annum, driven by rising industrialisation, urbanisation and
affluence. Vietnam has a solid national electrification ratio of
99.2%, with the ratio reaching almost 100% in urban areas.
According to management, all electricity consumers are billed
regularly and collection rates are between 99% and 100% across
EVN's five power distribution companies.
Hydrology, Currency and Demand Risks: Hydro-power accounts for
about 43% of Vietnam's generation capacity. Years with productive
hydro-power generation lift EVN's profit margin, but times of
lower rainfall force the company to rely excessively on expensive
coal. Almost 70% of EVN's borrowing is denominated in foreign
currency, exposing the company to substantial currency risk.
Lower rises in electricity sales volume also subject EVN to
financial stress due to the company's massive capex plans.
However, Fitch expects EVN to adjust its investments if there is
a structural decline in demand. Fitch believes EVN's financial
profile can deteriorate rapidly in the absence of regular tariff
increases.
Restrictive Tariff Increase Allowance: EVN can increase
electricity tariffs every six months, in line with rising
production costs, in accordance with the regulatory framework
that was introduced in August 2017. However, automatic
adjustments are limited to 5%; price increases between 5%-10%
require approval from the Ministry of Industry and Trade and
higher increases require approval from the prime minister.
Nevertheless, Fitch expects delays in implementing tariff
increases due to strong resistance from household and industrial
customers.
Rising Capex: Fitch expects EVN to incur significant capex to
address continuing increases in power demand, tackle a shortage
of power plants in the country's southern region and the low
transmission capacity from north to south, and improve supply
services. Vietnam's average coal load factors are lower than in
nearby countries, given the higher contribution from hydro-power
plants, further augmenting the capex requirement. Fitch estimates
group capex of around VND150 trillion a year. Fitch expects
installed capacity to increase to about 54 gigawatts (GW) by end-
2020, against the government's plan for a 60GW rise, due to EVN's
and the sovereign's limited financial capability and delays in
execution.
The share of coal-fired capacity has increased steadily over the
previous few years and Fitch expects this to account for the
majority of Vietnam's capacity addition in the near term. The
increase in coal capacity coupled with development of domestic
gas fields and liquefied natural gas import terminals will
address hydrological risks to an extent in the medium term. The
country turned net-importer of coal in 2015 and we believe its
reliance on imported coal will continue rising, as most of
Vietnam's hydro potential has been utilised already.
Standalone Credit Profile: Fitch assesses EVN's standalone credit
profile at 'BB'. Fitch expects the company to generate more than
VND80 trillion in operational cash flow each year through 2020.
However, it is likely to face large negative free cash flow owing
to its high capex plans and will require external funding to
manage its capex targets, which Fitch believes it can secure due
to its close links to the sovereign. Fitch estimates EVN's FFO
adjusted net leverage to stay around 5x over the next two to
three years.
DERIVATION SUMMARY
Similar to EVN, Tenaga Nasional Berhad (A-/Stable), which has a
standalone credit profile of 'BBB' and PT Perusahaan Listrik
Negara (Persero) (PLN, BBB/Stable), which has a standalone credit
profile of 'BB+', are monopoly plays in their respective
countries' electricity transmission and distribution sectors, and
own and operate the majority of installed power-generation
capacity. Tenaga and PLN's IDRs are equalised with that of their
respective sovereigns - Malaysia (A-/Stable) and Indonesia
(BBB/Stable) - per Fitch's Government-Related Entities Rating
Criteria.
Fitch assesses Tenaga's status, ownership and control as
'Moderate', while its support record and expectations, along with
the state's incentive to support, are assessed as 'Strong'. We
assess PLN's linkages with the state and the state's incentive to
support as 'Very Strong'. Meanwhile, Fitch assesses EVN's status,
ownership and control and financial implications of default as
'Very Strong', whereas support, support record and expectations,
along with the socio-political impact of default, are assessed as
'Strong'.
PLN operates under the time-tested cost-plus framework, although
Indonesia's power tariffs are lower than the average cost of
electricity production. The government compensates PLN for
revenue shortfalls from the sale of electricity via regular
subsidies.
Fitch believes a notch of difference in standalone credit
profiles is justified between EVN and PLN, even though the two
entities' financial profiles are similar, to reflect EVN's higher
risks stemming from hydrology and foreign-exchange exposures. On
the other hand, Fitch believes Tenaga's financial profile is
stronger than that of EVN and its solid financial profile,
coupled with the fuel-cost-pass-through mechanism in operation
since 2014, justifies the three notch difference in the
standalone credit profile assessment.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Vietnam's installed generation capacity to increase to 54GW
by end-2020 (2016: 42GW)
- Aggregate system plant-load factors in the region of 50%
- System losses declining to 8% by 2021 (2016: 9%)
- Electricity sales volume increasing by 8.5% per year
- Electricity tariff increasing by 5% per annum for the next
few years
- Movement in coal cost (VND/kWh) to mirror Fitch's estimates
of global coal prices
- Average capex of USD7 billion per year; about USD2 billion at
the holding company level and the balance at subsidiaries
- Minimal dividend payout
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Positive rating action on the sovereign, provided EVN's
linkages with the state do not deteriorate significantly
- An upgrade of the company's standalone profile is contingent
upon regular implementation of the regulatory framework,
including timely changes to tariffs that reflect cost changes,
while FFO adjusted net leverage is sustained below 5.0x
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Negative rating action on the sovereign
- Deterioration in EVN's standalone credit profile, along with
significant weakening in linkages with the state
- Fitch would lower the company's standalone credit profile
upon adverse regulatory changes that result in a deterioration of
EVN's business profile or if EVN's FFO adjusted net leverage is
above 6.0x for a sustained period
For the sovereign rating of Vietnam, the following sensitivities
were outlined by Fitch in its Rating Action Commentary of May 14,
2018:
The main factors that, individually or collectively, might lead
to positive rating action are:
- Sustainable resolution of the structural weaknesses in the
banking sector.
- Commitment to policy-making that entrenches macroeconomic
stability, including inflation stability and a further build-up
of external buffers.
- Broader improvement in public finances through a sustained
decline in general government debt or contingent liabilities.
The main factors that could lead to negative rating action,
individually or collectively, are:
- A shift in the macroeconomic policy mix that results in
macroeconomic instability, increased overheating risks, higher
inflation and rise in external imbalances.
- Depletion of foreign-exchange reserves on a scale sufficient
to destabilise the economy or deter foreign investment.
- Crystallisation of contingent liabilities on the sovereign's
balance sheet, which add to the government debt burden.
LIQUIDITY
Reasonable Liquidity: EVN had VND42 trillion of cash and cash
equivalents as at end-2016, against current debt maturities of
VND36 trillion. Fitch estimates EVN to generate more than VND80
trillion in operational cash flow per year and expect internal
cash generation to be sufficient to manage debt maturities, which
will not exceed VND36 trillion a year for the next three to four
years.
Funding Required for Capex: EVN would require external funds to
manage its large annual capex targets. Fitch believes the company
can secure adequate funding in light of its position as an entity
closely linked to the sovereign. As per its forecasts, EVN would
require about VND77 trillion of additional borrowings per annum
over the next few years to meet its funding shortfalls.
*********
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.
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