/raid1/www/Hosts/bankrupt/TCRAP_Public/180806.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
Monday, August 6, 2018, Vol. 21, No. 154
Headlines
A U S T R A L I A
ASTUTE PROJECTS: First Creditors' Meeting Set for Aug. 13
CAPITAL ONE: Second Creditors' Meeting Set for August 10
HEATHCOTE SERVICES: Second Creditors' Meeting Set for Aug. 10
INTERNATIONAL FERRO: First Creditors' Meeting Set for Aug. 10
PERFECTION FLOORING: First Creditors' Meeting Set for Aug. 10
SAAFIN CONSTRUCTIONS: First Creditors' Meeting Set for Aug. 15
TRAC DEVELOPMENTS: Former Director Convicted of Fraud
SUMO SALAD: Still Searching For a Buyer
XTV NETWORKS: Second Creditors' Meeting Set for August 14
C H I N A
GUIRENNIAO CO: Moody's Confirms B2 CFR, Outlook Negative
I N D I A
AKHIL SHIP: Ind-Ra Affirms 'B' LT Issuer Rating, Outlook Stable
AL MEHFOOZ: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
ANDHRA PRADESH: CRISIL Migrates B- Rating to Non-Cooperating
ANNAPURNA BUILDCON: CRISIL Lowers Rating on INR15cr Loan to B+
BAGGA LUXURY: CRISIL Reaffirms B+ Rating on INR10cr Cash Loan
BANIK ASSOCIATES: CRISIL Assigns B+ Rating to INR10cr Term Loan
DESIGNMATE INDIA: CRISIL Reaffirms D Rating on INR11cr Loan
GOVINDAM TEX: CRISIL Reaffirms B Rating on INR7.05cr Term Loan
INFRAHITE INFRASTRUCTURE: CRISIL Assigns B+ Rating to INR2cr Loan
KAKATIYA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR2.5cr Loan
KAMALESH CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating
KASTUM ENGINEERS: CRISIL Migrates B+ Rating to Not Cooperating
MANISH EMPIRE: CRISIL Migrates D Rating to Not Cooperating
MITTAPALLI AUDINARAYANA: CRISIL Ups Rating on INR56cr Loan to B+
MOZZECO TILES: CRISIL Assigns B+ Rating to INR7cr LT Loan
OMC POWER: CRISIL Reaffirms B- Rating on INR20cr Loan
OVEL LAMINATE: CRISIL Assigns B Rating to INR6.35cr Term Loan
P.C.S TRADES: CRISIL Withdraws B Rating on INR6cr Cash Loan
PBR SELECT: CRISIL Migrates B+ Rating to Not Cooperating
RAJESH ESTATES: CRISIL Migrates B+ Rating to Not Cooperating
S. R. S. MEDITECH: CRISIL Lowers Rating on INR12cr Loan to B
SHAH & SONS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
SHERE PUNJAB: CRISIL Lowers Rating on INR14cr Cash Loan to C
SHREYAS ENTERPRISES: CRISIL Cuts Rating on INR9.25cr Loan to B
SHRUTI SALES: CRISIL Assigns B+ Rating to INR6.3cr Cash Loan
SIR SHADI: CRISIL Lowers Rating on INR71cr Cash Loan to C
SPECIALITY SILICA: CRISIL Withdraws B+ Rating on INR4.75cr Loan
STAR BATTERY: CRISIL Raises Rating on INR2cr LT Loan to B+
TEXOOL LIMITED: CRISIL Withdraws B Rating on INR3cr Loan
UNIVERSAL TUBE: CRISIL Assigns D Rating to INR4.32cr LT Loan
VINIRRMAA PROJECTS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
WOCKHARDT LTD: Net Loss Narrows to INR86cr in Qtr Ended June 30
J A P A N
CHOSHI ELECTRIC: Launches 'Foul-Tasting' Snack to Boost Revenue
S I N G A P O R E
HYFLUX LTD: Sembcorp, YTL Said to Eye Pursuing Tuaspring Plant
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A U S T R A L I A
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ASTUTE PROJECTS: First Creditors' Meeting Set for Aug. 13
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Astute
Projects Pty Ltd will be held at the offices of BDO, Level 10, 12
Creek Street, in Brisbane, Queensland, on Aug. 13, 2018, at
10:00 a.m.
Andrew Peter Fielding and Helen Newman of BDO were appointed as
administrators of Astute Projects on Aug. 1, 2018.
CAPITAL ONE: Second Creditors' Meeting Set for August 10
--------------------------------------------------------
A second meeting of creditors in the proceedings of Capital One
Securities Pty Ltd has been set for Aug. 10, 2018, at 10:00 a.m.
at the offices of SV Partners, Level 17, 200 Queen Street, in
Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 9, 2018, at 9:00 a.m.
Michael Carrafa and Peter Gountzos of SV Partners were appointed
as administrators of Capital One on July 6, 2018.
HEATHCOTE SERVICES: Second Creditors' Meeting Set for Aug. 10
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Heathcote
Services & Citizens Club Ltd has been set for Aug. 10, 2018, at
11:00 a.m. at the offices of BDO, Level 11, 1 Margaret Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 9, 2018, at 4:00 p.m.
Andrew Thomas Sallway of BDO was appointed as administrator of
on March 1, 2018.
INTERNATIONAL FERRO: First Creditors' Meeting Set for Aug. 10
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of
International Ferro Metals Limited will be held at the offices of
Grant Thornton, Level 17, 383 Kent Street, in Sydney, NSW, on
Aug. 10, 2018, at 11:00 a.m
Philip Campbell-Wilson and John McInerney of Grant Thornton were
appointed as administrators of International Ferro on July 31,
2018.
PERFECTION FLOORING: First Creditors' Meeting Set for Aug. 10
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Perfection
Flooring Pty Ltd will be held at the offices of Veritas Advisory
Level 5, 123 Pitt Street, in Sydney, NSW, on Aug. 10, 2018, at
11:00 a.m.
Vincent Pirina and Steve Naidenov of Veritas Advisory were
appointed as administrators of Perfection Flooring on July 31,
2018.
SAAFIN CONSTRUCTIONS: First Creditors' Meeting Set for Aug. 15
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Saafin
Constructions Pty Ltd will be held at Level 15, 114 William
Street, in Melbourne, Victoria, on Aug. 15, 2018, at 2:30 p.m.
Matthew Kucianski and Ivan Glavas of Worrells Solvency & Forensic
Accountants were appointed as administrators of Saafin
Constructions on Saafin Constructions Aug. 3, 2018.
TRAC DEVELOPMENTS: Former Director Convicted of Fraud
-----------------------------------------------------
Former director Adam John Copping of Ascot, Queensland has been
convicted of dishonestly using his position to fraudulently
remove company property.
Mr. Copping was a former director of Trac Developments Pty Ltd,
which was placed in liquidation on March 7, 2016. An ASIC
investigation found that soon after the appointment of
liquidators, Mr. Copping fraudulent removed an Isuzu truck that
belonged to the Company without providing any consideration.
Australian Securities and Investments Commission commenced an
investigation after receiving a report from the liquidators, Ann
Fordyce and Nigel Robert Markeyof Pilot Partners. ASIC assisted
the liquidators to prepare their report by providing funding from
the Assetless Administration Fund.
Mr. Copping appeared in the Brisbane Magistrates Court on
July 6, 2018 and pleaded guilty to one count of engaging in
conduct that resulted in the fraudulent concealment or removal of
the property belonging to the Company. Mr. Copping was convicted
and fined AUD2,500.
The matter was prosecuted by the Commonwealth Director of Public
Prosecutions.
Mr. Copping was charged and found guilty of breaching
s.590(1)(c)(i) of the Corporations Act 2001.
As a consequence of his conviction, Mr. Copping is disqualified
from managing companies until July 5, 2023.
The Phoenix Taskforce comprises 20 Federal, State and Territory
government agencies that provides a whole-of-government approach
to combat illegal phoenix activity.
Strong cross-government agency collaboration underpins on-going
strategic and operational matters aimed at disrupting those who
facilitate illegal phoenix activity.
Suspected phoenix activity can be reported to the Phoenix Hotline
on 1800 807 875, or online at the ATO website.
SUMO SALAD: Still Searching For a Buyer
---------------------------------------
Stuart Marsh at Nine.com.au reports that health-focused fast-food
chain Sumo Salad is still searching for a buyer after the
business went into voluntary administration late last month.
The Sumo Group, which boasts a network of 85 franchise stores,
called in Ferrier Hodgson partners Morgan Kelly and Peter Gothard
as administrators on July 18, the report discloses.
Nine.com.au relates that the administration process has an
approximate timeline of 35 to 60 days, as Ferrier Hodgson
scrambles to explore "rescue options" such as the sale of the
business or reaching a compromise with creditors.
Because the chain's individual stores are operated by franchisees
the day-to-day operations of Sumo Salad's have not yet been
impacted, according to Nine.com.au.
Stores owned by Sumo Salad Holdings WA will also not be affected
by the restructuring process.
Nine.com.au relates that in a letter to Sumo Salad employees,
administrator Morgan Kelly said it would be "business as usual".
"The Administrators have been appointed because the Group is
having difficulties in meeting its financial commitments," reads
the letter.
"The Administrator's role is to take full control of the business
and investigate options to resolve the financial position
quickly.
"The Voluntary Administration process is designed to provide
companies with breathing space from creditors and permit time to
explore rescue options."
According to Nine.com.au, Mr. Kelly said Sumo Salad was "a strong
brand" with "a viable business model", but had been struggling
with "legacy debts".
"With the support of key stakeholders, we are confident that the
business can be restructured successfully," the report quotes Mr.
Kelly as saying.
"The administration process gives the Sumo Salad Group some
breathing space, helping to stabilise and restructure the
business."
During Sumo Salad's administration process employees who had not
already booked annual leave will be forced to take unpaid leave,
the report notes.
"Leave days taken by employees of the Group during the period of
the voluntary administration will need to be taken as leave
without pay, notwithstanding that annual leave may have been
approved prior to the appointment of the Voluntary
Administrators," Mr. Kelly said in a letter to employees,
Nine.com.au relays.
XTV NETWORKS: Second Creditors' Meeting Set for August 14
---------------------------------------------------------
A second meeting of creditors in the proceedings of XTV Networks
Ltd has been set for Aug. 14, 2018, at 3:00 p.m. at the offices
of Ferrier Hodgson, Level 28, 108 St Georges Terrace, in Perth,
WA, on Aug. 14, 2018, at 3:00 p.m.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 13, 2018, at 4:00 p.m.
Wayne Rushton and Martin Jones of Ferrier Hodgson were appointed
as administrators of XTV Networks on July 10, 2018.
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C H I N A
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GUIRENNIAO CO: Moody's Confirms B2 CFR, Outlook Negative
--------------------------------------------------------
Moody's has confirmed Guirenniao Co., Ltd.'s B2 corporate family
rating (CFR).
The rating outlook is negative.
This rating action concludes the review for downgrade initiated
on June 28, 2018.
RATINGS RATIONALE
"The confirmation of Guirenniao's B2 CFR and negative outlook
reflect the company's increased refinancing risk amid tighter
funding market conditions in China (A1 stable)," says Stephanie
Lau, a Moody's Vice President and Senior Analyst.
At the end of 1Q 2018, the company's RMB891 million of cash was
insufficient to cover its debt obligations maturing over the next
12 months, including RMB1.3 billion in short-term borrowings and
RMB900 million of short-term notes payable in 2018.
In addition, the company has to refinance RMB1.1 billion of
private and public onshore bonds due in 2019.
Given this material amount of debt maturing over the next 12-18
months, the company may have to seek alternate sources of
liquidity beyond its current banking facilities.
The negative outlook reflects Moody's expectation that
Guirenniao's high refinancing risk and weak liquidity will
continue against a backdrop of tight credit conditions in China,
which are likely to persist over the next 12-18 months. Such a
situation puts pressure on its single B rating.
Upward ratings pressure is limited, given the negative outlook.
The ratings outlook could return to stable if the company: (1)
demonstrates its ability to refinance its short-term debt; (2)
shows adequate liquidity.
On the other hand, downward ratings pressure could emerge if
there is a further deterioration of Guirenniao's already weak
liquidity.
The principal methodology used in this rating was Apparel
Companies published in December 2017.
Founded in 2004 and headquartered in Jinjiang, Fujian, Guirenniao
Co., Ltd. listed on the Shanghai Stock Exchange (CH:603555) in
2014 and was 77% owned by Chairman and CEO Mr. Tianfu Lin at the
end of March 2018. The company posted revenues of RMB3.3 billion
(USD0.5 billion) in the 12 months ended March 31, 2018. As at
August 1, 2018, Guirenniao had a market capitalization of around
RMB6 billion.
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I N D I A
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AKHIL SHIP: Ind-Ra Affirms 'B' LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Akhil Ship
Breakers Pvt Ltd.'s (ASBPL) Long-Term Issuer Rating at 'IND B'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR300 mil. Non-fund-based limits affirmed with IND
B/Stable/IND A4 rating.
KEY RATING DRIVERS
The affirmation reflects ASBPL's continued small scale of
operations and weak credit metrics due to low profits. Revenue
fell to INR172.32 million in FY18 (FY17: INR265.59 million)
because ASBPL was unable to procure ships. Gross interest
coverage (operating EBITDA/gross interest expense) reduced to
0.62x in FY18 (0.76x) and net financial leverage (adjusted net
debt/operating EBITDAR) improved to 7.36x (19.94x) due to a rise
in EBITDA and a decline in debt. Moreover, the company continued
to earn substantial interest income of INR2.68 million in FY18
(FY17: INR3.14 million) as against an interest expense of INR3.12
million (INR0.5 million).
The ratings also reflect ABSPL's comfortable liquidity position;
with positive cash flow from operations of INR18.50 million in
FY18.
The rating is constrained by ASBPL's modest return on capital
employed (FY18: 3.77%, FY17: 3.13%) and EBITDA margin levels
(0.89%, 1.65%) due to volatile metal (iron & steel) prices. The
margin improved due to a decline in raw material cost.
RATING SENSITIVITIES
Negative: A decline in the EBITDA leading to deterioration in the
credit metrics on a sustained basis could lead to a negative
rating action.
Positive: Revenue growth, along with improved credit metrics, on
a sustained basis could lead to a positive rating action.
COMPANY PROFILE
ASBPL, incorporated in 1999, is engaged in shipbreaking activity.
The company owns a plot in the Alang-Sosiya belt of the Bhavnagar
district. The company is managed by Mr. Anil Jain and Mr. Manish
Jain.
AL MEHFOOZ: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of AL Mehfooz Agro Foods Private Limited
(AMAFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B+/Stable (Assigned)
Long Term Loan 3 CRISIL B+/Stable (Assigned)
The rating reflects modest scale of AMAFPL's operations, and just
sufficient cash accrual against maturing debt. These weaknesses
are partially offset by the experience of the promoters and their
funding support.
Analytical Approach
Unsecured loans (outstanding at INR0.6 crore as on March 31,
2018) extended to AMAFPL by the promoters have been treated as
neither debt nor equity. That is because these loans do not bear
any interest and should remain in the business over the medium
term.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Intense competition and trading
nature of the business may continue to restrict scalability and
limit pricing power, thereby constraining profitability. Revenue
and operating margin were around INR54 crore and 1%,
respectively, in fiscal 2018.
* Just sufficient cash accrual against maturing debt: Cash
accrual projected at INR0.23 crore and INR0.3 crore for fiscals
2019 and 2020, respectively, are Just sufficient to meet yearly
maturing debt of INR0.2 crore and INR0.25 crore. However,
financial support from promoters will continue to aid the
liquidity needs, going forward.
Strengths
* Experience of promoters and their funding support: Benefits
from the promoters' industrial presence, their strong
understanding of the local market dynamics, and healthy relations
with customers and suppliers should continue to support the
business. Further, the promoters are expected to continue
extending timely, need-based funds to aid financial flexibility;
additionally INR0.2 crore of unsecured loans and INR1.5 crore of
equity have been infused during fiscal 2019 so far.
Outlook: Stable
CRISIL believes AMAFPL will continue to benefit from the
experience of the promoters. The outlook may be revised to
'Positive' if substantial increase in revenue, profitability, and
cash accrual along with prudent working capital management
strengthens financial risk profile. Conversely, the outlook may
be revised to 'Negative' if lower-than-expected cash accrual or
stretched working capital cycle weakens financial risk profile
and liquidity.
AMAFPL, established in 2011 at Meerut, trades in livestock,
particularly buffaloes. Mr. Hashmat Ali and family are the
promoters.
ANDHRA PRADESH: CRISIL Migrates B- Rating to Non-Cooperating
------------------------------------------------------------
CRISIL has migrated the rating on bank facility of Andhra Pradesh
Power Development Company Limited (APPDCL) to 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 900 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 600 CRISIL B-/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
CRISIL has been consistently following up with APPDCL for
obtaining information through emails and letter dated July 13,
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 APPDCL. This restricts
CRISIL's ability to take a forward-looking view on the credit
quality of the entity. Based on the discussion with one of the
banker of APPDCL, APPDCL is servicing its debt obligations on
time. CRISIL believes that the information available for APPDCL
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facility of APPDCL to 'CRISIL B-/Stable Issuer Not Cooperating'.
APPDCL is a special-purpose vehicle which was originally set up
as a 50:50 joint venture between Andhra Pradesh Power Generation
Corporation Ltd (APGenco) and Infrastructure Leasing & Financial
Services Ltd, to implement mega power projects. Subsequently, the
company was reconstituted, with APGenco holding 51 percent stake
and the balance 49 percent being held by the four discoms of
erstwhile Andhra Pradesh (together holding 45.04 percent) and the
Government of Andhra Pradesh (3.96 percent).
APPDCL runs a thermal power project, Sri Damodaram Sanjeevaiah
Thermal Power Station, in Krishnapatnam, Andhra Pradesh. The
project has three units of 800 MW each. While Unit I commenced
commercial operations on February 5, 2015, and Unit II on August
24, 2015, the construction of Unit III commence in the current
fiscal and is expected to become operational by June 2019.
ANNAPURNA BUILDCON: CRISIL Lowers Rating on INR15cr Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Annapurna Buildcon Infra Private Limited (ABIPL) to 'CRISIL
B+/Stable' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 10 CRISIL B+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
Term Loan 15 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade reflects exposure to high project implementation
risk on account of launch of new project and lower bookings in
the two existing projects. The Annapurna Avenue project has been
completed, but only 25% of the units are booked. Furthermore, the
Span Signature project is only 15% complete and has not seen much
traction in bookings. Also, this project is to be funded through
a term loan of INR15 crore, which accentuates risks related to
slower bookings and receipt of customer advances.
The rating reflects ABIPL's susceptibility to inherent risk and
cyclicality in the real estate industry, low saleability of
completed projects, and exposure to risk associated with new
project. These weaknesses are partially offset by the extensive
experience of its promoter.
Key Rating Drivers & Detailed Description
Weaknesses
* Susceptibility to inherent risks and cyclicality: The real
estate sector is cyclical and affected by volatile prices and a
highly fragmented market structure. These risks are compounded by
aggressive completion timelines and shortage of manpower (project
engineers and skilled labour). Also, high transaction costs
discourage the development of a robust secondary market, leading
to liquidity risks.
* Low saleability of completed project: The Annapurna Avenue
project has witnessed low saleability, with only 25% of the units
having been booked till date.
* Exposure to risk associated with new project: Only 15% of the
company's new Span Signature project has been booked, leading to
implementation risk.
Strength
* Extensive experience of promoter: The company will continue to
benefit from its promoter's established track record in executing
residential and commercial projects in Mumbai, Pune, and Vapi.
Outlook: Stable
CRISIL believes ABIPL will continue to benefit from the extensive
experience of its promoter. The outlook may be revised to
'Positive' if increase in bookings in Annapurna Avenue and faster
implementation and bookings in new project improve cash inflow.
The outlook may be revised to 'Negative' if delay in receipt of
customer advances, slower-than-expected pace of bookings, or
launch of any new project weakens liquidity.
Incorporated in 2010, ABIPL is a part of the Mumbai-based
Annapurna group promoted by Mr. Gopal K Dwivedi. The company has
so far, executed 8-10 real estate projects and is currently
constructing a residential project (Span Signature) in Bhayandar
(W) in Mumbai.
BAGGA LUXURY: CRISIL Reaffirms B+ Rating on INR10cr Cash Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating to the bank
facility of Bagga Luxury Motorcars LLP (BLML). The rating
reflects the modest scale of operations in the intensely
competitive automobile dealership industry and constrained
financial risk profile, due to capital withdrawals by partners.
These weaknesses are partially offset by experience of the
partners.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations amidst intense competition: Stiff
competition from several organised and unorganised players in the
auto dealership business, has kept the scale of operations
modest, as reflected in revenue of INR40.2 crore in fiscal 2018.
Moreover, the luxury car segment, especially in India, is already
flooded with many foreign manufacturers, and entry of few more
such players could further intensify competition over the medium
term.
* Below average financial risk profile: Capital has been
withdrawn by partners, leading to negative gearing as on March
31, 2018. Moreover, debt protection metrics have also been muted,
owing to modest profitability.
Strengths
* Significant experience of the partners in automotive dealership
business: Partners, Mr. Sukhbir Singh Baggga and Ms Khushboo
Kaur have been engaged in the auto dealership business, in and
around Ahmedabad, for nearly 15 years. They also deal in two-
wheelers of Suzuki and Yamaha (via Planet Automotive Pvt Ltd),
passenger cars of Hyundai, and medium and heavy commercial
vehicles of Ashok Leyland (Petal Motocon Pvt Ltd).
Outlook: Stable
CRISIL believes BLML will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if there is substantial growth in revenue and
subsequently in cash accrual, while maintaining profitability and
working capital cycle. The outlook may be revised to 'Negative'
if there is poor working capital management or decline in cash
accrual, most likely, due to a drop in revenue or profitability.
BLML was established on April 24, 2015, as a limited liability
partnership firm, by Mr. Sukhbir Singh Baggga and Ms Khushboo
Kaur Bagga. The firm holds the dealership of Maserati Luxury cars
for the Ahmedabad market. In fiscal 2016, net profit was INR0.04
crore on operating income of INR10.91 crore.
BANIK ASSOCIATES: CRISIL Assigns B+ Rating to INR10cr Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facility of Banik Associates (Banik).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10 CRISIL B+/Stable (Assigned)
The rating reflects the firm's exposure to demand risk for area
yet to be leased. This weakness is partially offset by the
management's extensive experience in the real estate and leasing
business, and comfortable debt service coverage ratio (DSCR).
Key Rating Drivers & Detailed Description
Weakness
* Exposure to demand risk for area yet to be leased: The firm is
yet to tie up 33.5% of the total leasable area in its upcoming
mall. Leasing of the remaining space at sustainable rental rates
and to clients with sound credit risk profiles will remain a key
monitorable.
Strengths
* Management's extensive experience in real estate and leasing
business: The promoters Mr. Rabindranath Banik and Mr. Rathindra
Nath Banik have experience of more than 4 decades in the
business. The promoters' experience, healthy relationships with
tenants, and reputation in West Bengal, has helped lease around
65% space in the firm's upcoming mall for 18 years (lock-in
period of 3 years), providing sufficient revenue visibility over
the medium term.
* Comfortable DSCR: Banik has comfortable DSCR of around 1.4
times over the tenure of its debt.
Outlook: Stable
CRISIL believes Banik will maintain steady collection of lease
rental over the medium term, backed by agreement with large
brands. The outlook may be revised to 'Positive' if the firm
generates significantly large accrual because of higher-than-
expected rental income from remaining areas to be leased, or
improves its ratio of rental income to debt obligation. The
outlook may be revised to 'Negative' if debt protection metrics
weaken on account of unexpected termination of lease agreement or
significant delays in realisation of rental income from lessees.
Banik, set up in 1985, constructs malls and multiplexes in West
Bengal.
DESIGNMATE INDIA: CRISIL Reaffirms D Rating on INR11cr Loan
-----------------------------------------------------------
CRISIL has reaffirmed its rating on the long term bank facility
of Designmate India Private Limited (DIPL) at 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 11 CRISIL D (Reaffirmed)
The rating continues to reflect the company's weak liquidity with
the continuous overdrawals in its bank lines for more than 30
days on account of shortage of funds. The company's liquidity is
further stretched by its weak financial risk profile with
negative networth and weaker debt protection metrics. The
company's operation continues to be modest along with being
working capital-intensive. Theses weaknesses are offset by its
established market position in niche product segment.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: The company's gearing has remained
high and the company's net worth continues to be negative as of
March 2018 due to accumulated losses. DIPL has weak debt
protection metrics as reflected in the negative interest coverage
and net cash accruals to total debt as on March 31, 2018.
Significant de-leveraging in terms of capital infusion or
significant accruals would lead some improvement in its financial
risk profile over the medium term.
* Working-capital-intensive operations: DIPL's gross current
assets were 380-740 days over the three years ended March 31,
2018, driven by book debts 280-560 days respectively. CRISIL
believes that DIPL's operations will remain working capital
intensive over the medium term.
* Modest scale of operations: The company's operations continue
to be modest with its presence in the niche segment. The company
sales in the year 2017-18 are estimated around Rs.30 Cr. CRISIL
believes that the scale of operations of DIPL would continue to
be modest over the medium term.
Strengths
* Established market position in niche product segment: DIPL has
been in the business of developing e-content and animations for
more than 20 years. However, for the past 10 years, it has been
focusing on education segment and that too specifically on K12
education. The company sells its products (software) under the
brand, Eureka, in a 3D animated content catering to K12
curriculum of physics, chemistry, biology, and mathematics. This
focus has helped DIPL to develop the product which has been well
received by the market. CRISIL believes the company would
continue to benefit due to its established name in the niche
product segment.
DIPL, founded in 1988 and incorporated in 2002, is promoted by
Capt Kamaljeet Singh Brar and his wife, Mrs Ragini Brar. It is a
3D production house, developing creative eLearning content for
the K12 segment. DIPL started as a production facility
specialising in 3D animation for films, television, and video
games. However, the company now exclusively develops digital
learning (eLearning) content, mainly for the K12 segment.
GOVINDAM TEX: CRISIL Reaffirms B Rating on INR7.05cr Term Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-
term bank facilities of Govindam Tex Fab Private Limited (GTPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.7 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.25 CRISIL B/Stable (Reaffirmed)
Term Loan 7.05 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect a moderate scale of operations in
a fragmented industry and high customer concentration in revenue.
These weaknesses are partially offset by the extensive
entrepreneurial experience of the promoters and their funding
support.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and exposure to intense competition
in the textile industry: The business risk profile remains
constrained by a modest scale of operations and no significant
track record in the intensely competitive textile industry.
Provisional revenue was just INR7.65 crore in fiscal 2018.
* High customer concentration in revenue: The major customer,
Manomay Tex India Ltd, contributed nearly the entire revenue in
the first fiscal of operations (2018). As there are has no plans
to diversify the customer base over the medium term, the business
risk profile should remain constrained by high customer
concentration risks.
Strengths
* Extensive entrepreneurial experience of the promoters: The
promoters have an experiences of around two decades in various
other industries including transport and hospitality. This has
given them an understanding of the dynamics of the local market.
Outlook: Stable
CRISIL believes GTPL will continue to benefit from the extensive
experience of its promoters and their funding support. The
outlook may be revised to 'Positive' if revenue and profitability
improve significantly, leading to higher-than-expected cash
accrual, while working capital management is efficient. The
outlook may be revised to 'Negative' in case of lower-than-
expected cash accrual, deterioration in working capital
management, or any large, debt-funded capital expenditure,
weakening the financial risk profile, especially liquidity.
GTPL was established in April 2015, promoted by Mr. Sanjay Kumar
Sharma, Mr. Shyam Lal Sharma, Mr. Praveen Tak, and Mr. Kishanwati
Atri. The company undertakes weaving on a job-work basis for
clients at its facility in Bhilwara, Rajasthan.
INFRAHITE INFRASTRUCTURE: CRISIL Assigns B+ Rating to INR2cr Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Infrahite Infrastructure Private Limited
(IIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Assigned)
Cash Credit 2 CRISIL B+/Stable (Assigned)
The ratings reflect the company's small scale of operations in
the intensely competitive civil construction industry, exposure
to geographical concentration risk and large working capital
requirement. These weaknesses are partially offset by the
extensive experience of its promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations amid intense competition: Intense
competition may continue to restrict scalability and limit the
pricing power with suppliers and customers, thereby constraining
profitability. Revenue is estimated at INR5.75 crore in fiscal
2018.
* Exposure to geographical concentration risk: As revenue is
solely generated from Kerala, risks related to geographical
concentration may continue to constrain the business.
* Working capital-intensive operations: Gross current assets
(GCA) are estimated at 189 days as on March 31, 2018, due to
large inventory resulting in large working capital requirement.
The GCA days have been at around 180-300 days depending on the
nature of work.
Strength
* Extensive experience of the promoters: Presence of around three
decades in the civil construction segment has enabled the
promoters to establish strong relationships with customers and
suppliers.
Outlook: Stable
CRISIL believes IIPL will continue to benefit from the experience
of the promoters. The outlook may be revised to 'Positive' if
there is a substantial increase in revenue, profitability, and
cash accrual along with prudent working capital management.
Conversely, the outlook may be revised to 'Negative' if steep
decline in revenue and profitability or stretched working capital
cycle weakens financial risk profile and liquidity.
KAKATIYA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR2.5cr Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank loan facilities of Kakatiya Constructions - Hyderabad -
Sridhar Chadalawala (KCHSC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Secured Overdraft
Facility 2.5 CRISIL B+/Stable (Assigned)
Bank Guarantee 3 CRISIL A4 (Assigned)
Proposed Long Term
Bank Loan Facility 1 CRISIL B+/Stable (Assigned)
The ratings reflect modest scale of operations, exposure to
tender-based business and customer concentration risk. These
weaknesses are partially offset by extensive industry experience
of promoters and moderate financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and exposure to risk of tender-based
business: The modest scale, reflected in estimated revenue of
11.74 crore for fiscal 2018, restricts the ability to bid for
large projects. Further, revenue is susceptible to the quantum of
tenders floated and the firm's success in winning them.
* Customer concentration risk: Majority of the firm's revenues
are from Telangana State Medical Infrastructure Development
Corporation (TSMIDC) and Telangana State Welfare Educational
Infrastructure Development Corporation (TSWEIDC) and Tribal
Development Authority (TTDA). KCHSC is thus highly vulnerable to
changes in the state government's policies on civil
infrastructure and the socio-economic and political conditions in
the state.
Strengths:
* Extensive experience of promoters: The promoter Mr. Chadalawada
Sridhar has been in the construction industry for over 19 years
and has gradually built a strong network with government
departments.
* Moderate financial risk profile: The firm has modest net worth
of around INR3.88 crores as on March 31, 2017 and estimated
networth of INR2.73 Cr as on March 2018. The gearing stood at
around 0.05 times as on March 2017 and estimated gearing of 0.41
times as on March 2018. The firm has interest coverage ratio of
2.51 times as on March 2018.
Outlook: Stable
CRISIL believes KCHSC will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if increase in revenue and profitability result in
high cash accrual. The outlook may be revised to 'Negative' if
capital withdrawal deteriorates capital structure, or aggressive
bids for tenders exerts pressure on profitability, or stretch in
receivables weakens liquidity.
Established in 1999 as a partnership firm, KCHSC is engaged in
civil construction works like construction of buildings and
electrical works for Telangana State Medical Infrastructure
Development Corporation (TSMIDC) and Telangana State Welfare
Educational Infrastructure Development Corporation (TSWEIDC).
Firm is promoted by Mr. Chadalawada Sridhar.
KAMALESH CONSTRUCTION: CRISIL Moves B Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Kamalesh
Construction Private Limited (KCPL) from 'CRISIL B/Stable/CRISIL
A4; Issuer not cooperating' to 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (Migrated from
'CRISIL A4 Issuer Not
Cooperating')
Cash Credit 3.2 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable Issuer
Not Cooperating')
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL had migrated its
ratings on the bank facilities of KCPL to 'CRISIL B/Stable/CRISIL
A4; Issuer not cooperating'. However, the company's management
has subsequently started sharing information necessary for a
comprehensive review of the ratings. Consequently, CRISIL is
migrating the ratings from 'CRISIL B/Stable/CRISIL A4; Issuer not
cooperating' to 'CRISIL B/Stable/CRISIL A4'.
The ratings continue to reflect KCPL's modest scale of
operations, exposure to customer concentration risk, and large
working capital requirement and weak capital structure marked by
small networth and high gearing. These weaknesses are partially
offset by the extensive experience of the promoters in the civil
construction industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations and exposure to customer
concentration risk: Intense competition and tender-driven
business constrain scaleability of operations. Topline was
modest, estimated at INR21 crore in fiscal 2018. Customer
concentration risks persist, with the top three customers
contributing 60% to revenue. The hotel business is in its nascent
phase and has limited contribution in revenue. Over the medium
term, the hotel business is expected to increase and support the
business risk profile.
* Large working capital requirement: Gross current assets were
132-140 days in the three years through fiscal 2018, because of
stretched receivables (83-109 days). Earnest money and security
deposits maintained with customers add to working capital
requirement. Due to nature of construction business, it is
expected that the operations will remain working capital
intensive over the medium term.
* Weak capital structure: Networth was small and gearing high
estimated to be around 4.97 Cr and 3.01 times, respectively, as
on March 31, 2018. With increase in scale of operation and
revenue visibility over the medium term, the accretion to
reserves is expected to increase resulting in an increase in
networth and improvement in the gearing over the medium term.
Strengths
* Promoters' experience, strong client relationships, and healthy
order book: The experience of two decades of the promoters, Mr.
Satyadev Swain, Mr. Satyabrata Swain, and Mr. Gagan Behari
Behera, and their healthy relationships with customers and
suppliers, should continue to support business. Orders of INR37
crore as of July 2018 support revenue visibility for the medium
term.
Outlook: Stable
CRISIL believes KCPL will continue to benefit from its promoters'
extensive experience. The outlook may be revised to 'Positive' if
a significant increase in scale of operations or better working
capital management strengthens liquidity. The outlook may be
revised to 'Negative' if stretch in working capital cycle, debt-
funded capital expenditure, low accrual, or sizeable support to
group company weakens the financial risk profile and liquidity.
KCPL was set up in 1997 as a partnership firm named Kamalesh
Construction, and was reconstituted as a private limited company
with the current name in 2008. Mr. Satyadev Swain, Mr. Satyabrata
Swain, and Mr. Gagan Behari Behera are the promoters. The
company, based in Angul (Odisha), undertakes civil construction
contracts, mainly relating to large manufacturing units. It also
operates a 3-star hotel, Kalinga Guest House and Resorts, in
Angul.
KASTUM ENGINEERS: CRISIL Migrates B+ Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Kastum
Engineers - Aurangabad (KEA) to 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.3 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 2.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with KEA for obtaining
information through letters and emails dated July 13, 2018 and
July 18, 2017, 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 KEA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KEA is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB Rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of KEA to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
KEA was established in fiscal 2005 as a proprietorship firm by
Mr. Mahindra Kala. The firm undertakes electrification contracts
(foundation, erection, and stringing of transmission lines)
currently for Maharashtra State Electricity Distribution Company
Ltd.
MANISH EMPIRE: CRISIL Migrates D Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated its rating on the bank facilities of Manish
Empire (ME) to 'CRISIL D Issuer not cooperating' from 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12.6 CRISIL D (ISSUER NOT
COOPERATING; Rating migrated)
CRISIL has been consistently following up with Manish Empire (ME)
for obtaining information through letters and emails dated
July 13, 2018 and July 18, 2018, 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 ME. 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 ME
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with 'CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated its rating on the bank facilities of ME to
'CRISIL D Issuer not cooperating' from 'CRISIL D'
Established in 2014 by Vadodara-based Mr. Manish Patel and his
family members, ME has a hotel in Vadodara
MITTAPALLI AUDINARAYANA: CRISIL Ups Rating on INR56cr Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facility of
Mittapalli Audinarayana Enterprises Private Limited (MAEPL) to
'CRISIL B+/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Open Cash Credit 56 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects MAEPL's sustained operating
performance and working capital management which is expected to
continue over the medium term. The company booked revenues of
Rs.57 crores in fiscal 2018 with operating margins estimated at
around 8% which has been sustained at similar levels in the past
2 years. The GCA days stood at 488 days as on March 31, 2018
against 515 days as on March 31, 2017.
The ratings reflect the extensive experience of its promoters in
the tobacco industry and below average financial risk profile
marked by its modest net worth, high gearing, and below average
debt protection metrics, constrained on account of its large
working capital requirements and its exposure to intense
competition and regulatory risks in the tobacco industry, and the
susceptibility to fluctuations in foreign exchange rates. These
rating weaknesses are partially offset by the extensive
experience of the company's promoters in the tobacco-processing
industry, and established relationship with customers.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: With revenue of Rs.57 Cr in the
Fiscal 2018 the scale of operations remains small. Small scale of
operations limits company's ability to take advantages associated
with economies of scale that other players with large scale of
operations are able to enjoy.
* Below average financial risk profile: Company's financial risk
profile is marked by modest net worth, high gearing and below
average debt protection metrics. Gearing is expected to remain
high on account of small scale of operation, hence small
accretion to reserves and high working capital requirements
resulting in dependence upon cash credit limits. Debt protection
metrics are below average and are expected to remain so over the
medium term.
* High working capital requirements: Working capital requirement
for the company remains high on account of stretched debtors and
increasing inventory requirement of the company. Working capital
requirements of the company are partially assuaged by the credit
period of 3 to 4 months that the company is able to get from
local raw material suppliers and stretched liquidity of credit
period 3 to 4 months, Furthermore comfortable current ratio and
no major long term debt gives some comfort to the liquidity
position.
* Exposure to intense competition and regulatory Risk: Company's
business risk profile remains constrained on account of intense
competition in the tobacco processing industry. Furthermore as
the industry in many aspects are controlled by the government of
India any non-favourable regulation may adversely impact the
business risk profile of the company
Strengths
* Extensive experience of promoters: Mittapalli was promoted in
the year 1964 by Mr. Mitapalli Rama Rao. It gives the promoter an
extensive experience in the tobacco processing industry which has
enabled the firm to establish strong relationships with the
customers and suppliers which ensures steady procurement of raw
material and repeated orders from the customers. CRISIL believes
that Mittapalli will continue to benefit from the extensive
industry experience of promoters.
Outlook: Stable
CRISIL believes that Mittapalli will continue to benefit over the
medium term from its promoters' extensive industry experience and
its established relationship with customers. The outlook may be
revised to 'Positive' if the company registers a sustained
improvement in its working capital cycle, resulting in improved
liquidity or there is a substantial improvement in its capital
structure on the back of sizeable equity infusion by its
promoters. Conversely, the outlook may be revised to 'Negative'
in case of a steep decline in the company's profitability, or
significant deterioration in its capital structure caused most
likely because of a large debt-funded capital expenditure or a
stretch in its working capital cycle.
MAEPL was set up as a partnership firm in 1964 by Mr. Mittapalli
Rama Rao and his sons Mr. Mittapalli Umamaheswar Rao and Mr.
Mittapalli Siva Kumar. The firm was reconstituted as a private
limited company in 2006. The company is engaged in tobacco leaves
trading and is based in Guntur, Andhra Pradesh.
MOZZECO TILES: CRISIL Assigns B+ Rating to INR7cr LT Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Mozzeco Tiles LLP (MTL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 7 CRISIL B+/Stable (Assigned)
Bank Guarantee 1 CRISIL A4 (Assigned)
Cash Credit 3 CRISIL B+/Stable (Assigned)
The ratings reflect the start-up phase and expected modest scale
of operations in the intensely competitive ceramic tiles
industry, and the likelihood of large working capital
requirement. These weaknesses are partially offset by the
extensive industry experience of the partners and a favourable
location.
Key Rating Drivers & Detailed Description
Weaknesses
* Start-up phase: Manufacturing is expected to start in January
2019 and it should take some time to stabilise operations.
* Modest scale of operations: The scale is likely to be modest in
the intensely competitive ceramic tiles industry.
Strengths
* Extensive experience of promoters: Longstanding presence of
promoters and already established dealer network, through other
entities, are likely to reduce demand risk.
* Favourable location: The firm is based in Morbi, Gujarat, which
is the hub of the ceramic tiles industry in India. Benefits from
the location include easy access to red clay (main raw material),
and availability of contractors and skilled labourers.
Outlook: Stable
CRISIL believes MTL will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' in case of timely stabilisation of operations and
substantial cash accrual. The outlook may be revised to
'Negative' if cash accrual is low due to fewer orders or subdued
profitability, or if the financial risk profile weakens further
because of sizeable working capital requirement or debt-funded
capital expenditure.
MTL was established in 2018 as a limited liability partnership
(LLP) firm by Mr. Anil Kavathiya, Mr. Chetanbhai Kantilal Ughreja
and three others. It is setting up a plant to manufacture ceramic
glazed tiles at Morbi, with an installed capacity of 34,200 tonne
per annum. Ceramic glazed tiles have wide usage for commercial as
well as domestic buildings. Operations are expected to commence
in December 2018.
OMC POWER: CRISIL Reaffirms B- Rating on INR20cr Loan
-----------------------------------------------------
CRISIL has reaffirmed its 'CRISL B-/Stable' ratings on the non-
convertible debentures of OMC Power Private Limited (OMC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 20.00 CRISIL B-/Stable (Reaffirmed)
Debentures
The rating continues to reflect OMC's modest scale of operations,
the ongoing operating losses, and dependence on external funding
to service interest. These rating weaknesses are partially offset
by the benefits OMC derives from its experienced management,
funding support of the promoters and the availability of
additional credit opportunities.
Key Rating Drivers & Detailed Description
Weakness
* Operating losses: OMC continues to operate under losses, owing
to the modest scale of operations vis-a-vis its sizeable
administrative and corporate expenses. Operating losses
aggregated of INR3.45 crore in fiscal 2018 (Rs 6.27 crore the
previous fiscal). Revenue and realisations are not sufficient to
cover the administrative and corporate expenses.
* Dependence on external credit funding: OMC remains dependent on
external borrowings and funding to meet its interest obligations.
The company has outstanding debentures of INR20 crore and is
expected to seek additional funding over the medium term. It
received equity infusion of INR53 crore in fiscal 2018 from
Mitsui & Co Ltd. The interest payments on the debentures are made
with quarterly rests from the external funds received.
* Modest scale of operations: Operating income was modest at
INR8.7 crore in fiscal 2018 (INR7.5 crore in fiscal 2017). The
company operates 100 power plants in 9 districts in Uttar Pradesh
and plans to operate more towers in fiscal 2019, funded by
external borrowings.
Strengths
* Benefits from the experienced management in the industry: The
management and have extensive experience in diversified
businesses, and have provided the company with strategic tie-ups,
government subsidies and external borrowings.
* Funding support from the promoters: The company receives
funding support from the promoters, in addition to additional
borrowing opportunities available to cater to its expansion plans
and for the servicing of its debt obligations amidst losses at
its operating levels.
Outlook: Stable
CRISIL believes that OMC will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if the company scales up its
operations and breaks even at the operating level, with lower
debts resulting in an improved financial structure. Conversely,
the outlook may be revised to 'Negative' if low cash accrual and
operating margin further weaken the financial risk profile.
In 2011, Mr. Anil Raj, Mr. Rohit Chandra, and Mr. Sushil
Jiwarajka jointly incorporated OMC with OMC Televentures Private
Limited (formerly known as Artheon Televentures Private Limited)
as the majority shareholder of the company. OMC commenced
commercial operations in July 2012.
The company operates 100 solar micro-plants (off-grid and on-grid
photovoltaic hybrid solar diesel power systems) of 30-75 KW
capacity in and across 9 districts in Uttar Pradesh that has
little or no grid connectivity. End users include telecom
companies, small and medium enterprises, small commercial
establishments and rural households.
OVEL LAMINATE: CRISIL Assigns B Rating to INR6.35cr Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
facilities of Ovel Laminate LLP (OLL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (Assigned)
Term Loan 6.35 CRISIL B/Stable (Assigned)
The rating reflects OLL's exposure to risk of ramp-up in sales
during the initial phase of operations. The rating also factors
in expectation of a moderate financial risk profile and small
scale of operations. These weaknesses are partly offset by the
extensive experience of the partners and their funding support.
Analytical Approach
For arriving at the rating, CRISIL has treated unsecured loans of
INR29 lakh from the partners as on March 31, 2018, as neither
debt nor equity, as these are expected to remain in business over
the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest expected scale of operation: Ramp-up in scale of
operation during the initial phase will remain critical, and
hence, be monitored closely. Further, intense competition on
account of low entry barriers and capital requirement, would
constrain the scale of operations.
* Average financial risk profile: Networth is expected at a
modest INR4.66 crore as on March 31, 2019, while gearing and
total outside liabilities to tangible networth ratio are likely
to be at 1.5 times and 1.9 times. Financial risk profile is
expected to improve over the medium term, driven by better
accretion to reserve and gradual repayment of term debt
obligation.
Strength:
* Extensive experience of the partners: Benefits from the
partners' decade-long experience in the industry, their in-depth
understanding of the dynamics of the local market, and
established relationships with suppliers and customers, should
support the business.
Outlook: Stable
CRISIL believes OLL will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if ramp up in operations leads to higher than
anticipated revenue, profitability and cash accrual during the
initial phase of operations. The outlook may be revised to
'Negative' if lower-than-expected revenue and cash accrual, or
stretch in working capital cycle or any large debt funded capital
expenditure weakens financial risk profile, especially liquidity.
Established in April, 2017, OLL, a partnership firm of Mr. Amit
Ughreja, Mr. Jayanti Ughreja, Mr. Jasmin Patel and Mr. Sandip
Patel, is engaged in the manufacture of laminate sheets.
P.C.S TRADES: CRISIL Withdraws B Rating on INR6cr Cash Loan
-----------------------------------------------------------
CRISIL has withdrawn its rating on the long-term bank facility of
P.C.S Trades (PCST) following a request from the company and on
receipt of a 'no dues certificate' from the banker. The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Withdrawn)
Set up in 1997, Virudhunagar (Tamil Nadu)-based P.C.S. Trades
(PCST) is involved in importing and trading of agro commodities
like pulses. The operations of the firm are handled by the
proprietor Mr. PCS Govindaraja Perumal.
PBR SELECT: CRISIL Migrates B+ Rating to Not Cooperating
--------------------------------------------------------
CRISIL is migrating the rating on bank facilities of PBR Select
Infra Projects (PBRS) from 'CRISIL B+/Stable/CRISIL A4 issuer not
cooperating' to 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Secured Overdraft 6 CRISIL B+/Stable (Migrated
Facility from 'CRISIL B+/Stable ISSUER
NOT COOPERATING')
Due to inadequate information, CRISIL, in line with Securities
and Exchange Board of India guidelines, had migrated the rating
on bank loan facilities of PBRS to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'. However, the management subsequently
started sharing the information necessary for carrying out a
comprehensive review of the rating. Consequently, CRISIL is
migrating the rating from 'CRISIL B+/Stable/CRISIL A4 issuer not
cooperating' to 'CRISIL B+/Stable/CRISIL A4'.
The rating continues to reflect modest scale of operations, below
average financial risk profile and working capital intensive
nature of operations. These weaknesses are partially offset by
extensive experience of the promoters in the civil construction
industry.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations: The modest scale, reflected in
revenue of INR11.87 Cr for fiscal 2017 and estimated revenue of
12.4 crore for fiscal 2018, restricts the ability to bid for
large projects. Further, revenue is susceptible to the quantum of
tenders floated and the firm's success in winning them.
* Working capital-intensive operations: Operations are working
capital intensive as reflected in gross current assets of 205-285
days over the three years through March 31, 2018. The working
capital requirement in accentuated by the high work in progress
inventory and debtor levels.
* Below average financial risk profile: The firm has modest net
worth of around INR2.66 Cr as on March 31, 2017 and estimated
networth of INR 2.75 Cr as on March 2018. The gearing stood at
around 3.46 times as on March 2017 and estimated gearing of 3.03
times as on March 2018. The firm has below average debt
protection metrics as indicated by its NCATD and interest
coverage ratio of 0.06 and 1.66 times for fiscal 2017 and
estimated NCATD and interest coverage ratio of 0.07 and 1.72
times for fiscal 2018.
Strengths
* Promoters' industry experience: PBRS is managed by Mr. P
Bhaskar Reddy and his family members. Mr. P Bhaskar Reddy has
experience of over two decades in the construction industry
through PBR, which has been in existence since 1996 and has an
established market position and relationship with customers.
Outlook: Stable
CRISIL believes PBRS will continue to benefit from its promoter's
extensive industry experience. The outlook may be revised to
'Positive' if capital infusion or larger than expected accretion
improves financial risk profile. The outlook may be revised to
'Negative' if stretch in working capital cycle, or any large,
debt-funded capital expenditure, weakens financial risk profile,
particularly liquidity.
Set up in 2010 as a partnership firm, PBRS undertakes civil
construction activities, primarily in construction of roads,
bridges and flyovers. Based out of Hyderabad (Telangana), the
firm is managed by Mr. P Bhaskar Reddy and his family.
RAJESH ESTATES: CRISIL Migrates B+ Rating to Not Cooperating
------------------------------------------------------------
CRISIL has migrated the rating on non convertible debentures of
Rajesh Estates and Nirman Pvt Ltd (RENPL) to 'CRISIL B+/Stable
Issuer Not Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 297.60 CRISIL B+/Stable (ISSUER NOT
Debentures COOPERATING; Rating Migrated)
CRISIL has been following up with RENPL for getting information
through letters and emails, dated June 12, 2018, and July 19,
2018, July 23, 2018 apart from various telephonic communications.
However, the issuer has continued to be 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 RENPL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on RENPL is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB Rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on non
convertible debentures of RENPL to 'CRISIL B+/Stable Issuer Not
Cooperating'
The ratings on NCDs of RENPL continues to factor in the continued
high reliance on external debt to fund the project construction
work, thereby leading to deterioration in the debt protection
metrics. The rating also factors in the susceptibility of sales
to cyclicality, which is inherent in the real estate sector.
The rating weaknesses are however offset by the extensive
experience of RENPL's promoters in the real estate industry, and
the prime location and advanced stage of completion of its
project, Raj Grandeur.
Incorporated in 1996, RENPL is a fully owned subsidiary of Rajesh
Constructions Company Pvt Ltd (the flagship company of the Rajesh
group) .The company has been developing two projects: Raj
Grandeur and Raj Embassy and has recently started developing Raj
Torres in Thane aggregating to a total saleable area of 1.9
million sq ft.
The Rajesh group is a Mumbai-based real estate developer,
promoted by Mr. Raghavji Patel. Group companies have been engaged
in real estate construction and development for over 50 years.
Operations are currently managed by the third-generation of the
family, Mr. Priyal Patel and Mr. Pratik Patel. The Rajesh group
has nearly 8.6 million sq ft of area under development across
various projects in Mumbai as on date.
S. R. S. MEDITECH: CRISIL Lowers Rating on INR12cr Loan to B
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of S. R.
S. Meditech Limited (SML) to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable (Downgraded
from 'CRISIL BB/Stable')
Letter of Credit 4.5 CRISIL A4 (Downgraded from
'CRISIL A4+')
Long Term Loan 3.5 CRISIL B/Stable (Downgraded
from 'CRISIL BB/Stable')
Proposed Letter 0.57 CRISIL A4 (Downgraded from
of Credit 'CRISIL A4+')
The downgrade reflects weakening of liquidity on account of
increase in repayment obligation due to significant increase in
debt after fire broke out at SML's plant in November, 2016. Term
debt increased to INR20 crore as on March 31, 2018 from INR9
crore as on March 31, 2016, resulting in repayment obligation of
INR7 crore which is higher than expected cash accrual of INR6
crore for fiscal 2019. Over the medium term, liquidity is
expected to remain under pressure as cash accrual is expected to
remain insufficient for repayment, however it is supported by
moderate cushion in bank lines and supplier credit.
Furthermore, total debt increased to INR28 crore as on March 31,
2018 from INR17 crore as on March 31, 2016, resulting in a
corresponding increase in total outside liabilities to adjusted
networth to 3.5 times from 2.5 times.
Notwithstanding the deterioration in liquidity, business risk
profile of the company has continued to be moderate, marked by
increase in operating income to INR106.4 crore in fiscal 2018
from INR92.1 crore in the previous fiscal.
The ratings reflect the deterioration in financial risk profile
and exposure to intense competition in the medical disposables
industry. These weaknesses are partially offset by diversified
geographical reach and dealer network, and moderate scale of
operations.
Key Rating Drivers & Detailed Description
Strengths
* Diversified geographical reach and dealer network: Dealer
network comprises 50 dealers spread across India. Also, 30% of
the revenue comes from sales to government entities of
Maharashtra, West Bengal, and Andhra Pradesh. Furthermore,
promoter has been actively participating in overseas trade fairs
to create brand awareness and bring in export orders.
* Moderate scale of operations: Revenue has increased to INR106.4
crore in fiscal 2018 from INR92.1 crore in the previous fiscal,
driven by promoter's understanding of the industry and the
capability to secure large orders from state governments.
Weakness
* Weak liquidity: Liquidity has significantly weakened on account
of term debt increase to INR20 crore as on March 31, 2018 from
INR9 crore as on March 31, 2016, which resulted in high repayment
obligation of around INR7 crore during fiscal 2019 against
expected cash accrual of INR6 crore. This stress in liquidity is
partially alleviated by moderate cushion in bank lines and
supplier credit, as indicated by bank limit utilization of around
90% averaged over 12 months ended March, 2018 and increase in
creditor days to 112 days as on March 31, 2018 from 74 days as on
March 31, 2017, respectively.
* Deterioration in financial risk profile: Total outside
liabilities to adjusted networth ratio increased to 3.5 times as
on March 31, 2018, from 2.5 times as on March 31, 2016, due to
increase in term debt. However, the profile is supported by
moderate networth of INR15.6 crore as on March 31, 2018, and
comfortable debt protection metrics with net cash accrual to
adjusted debt of 0.14 time and interest coverage ratio of 2.2
times for fiscal 2018.
* Exposure to intense competition in the medical disposables
industry: The medical disposables industry is dominated by
established export players, such as Baxter International Inc. and
B Braun Melsungun AG. In the domestic market, SML also has to
compete with established companies, such as Hindustan Syringes &
Medical Devices Ltd and Poly Medicare Ltd, apart from small
players and low-cost producers from China. Also, these products
have low realisation. This, along with the prevailing perception
of India as a low-cost centre for manufacturing medical
disposables, prevents domestic players from commanding a
significant premium abroad.
Outlook: Stable
CRISIL believes SML's liquidity profile will remain weak, due to
excessive leveraging. The outlook may be revised to 'Positive' if
scale of operations improves significantly because of
diversification in product profile, and if exports lead to a
higher operating margin, while working capital cycle is
maintained, thereby resulting in sufficient cash accrual to
service maturing debt. The outlook may be revised to 'Negative'
if liquidity weakens on account of a decline in operating margin
or scale of operations, or if capital structure further weakens
because of substantial, debt-funded capital expenditure.
Incorporated in 2010 in Noida and promoted by Mr. Syed Askari,
SML commenced commercial operations in 2011. The company
manufactures medical disposable products, such as syringes, IV
sets, and other tubing items under own brands, Sterivan and I
Safe.
SHAH & SONS: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated P.D. Shah & Sons
Traders 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:
-- INR210 mil. Fund-based cash credit facilities 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
July 21, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
P.D. Shah & Sons Traders is engaged in the trading of milk and
milk products. It is an agent and distributor of Shree Warana
Sahakari Dudh Utpadack Prakriva Sangh Ltd, and an agent of
Karnataka Cooperative Milk Producers Federation Ltd. Moreover, it
trades agri-products such as frozen fruits and vegetables and
cosmetic products. The company is promoted by Mr. Ashok Shah and
his family.
SHERE PUNJAB: CRISIL Lowers Rating on INR14cr Cash Loan to C
------------------------------------------------------------
CRISIL has downgraded its rating on the long term bank facilities
of Shere Punjab Jewellers Private Limited (SPJPL) to 'CRISIL C'
from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
The rating downgrade reflects expected deterioration in liquidity
of SPJPL that may adversely impact the debt servicing ability of
the company. SPJPL's single retail showroom in Satna (Madhya
Pradesh) has been non-operational since April 2018. Consequently,
SPJPL has not been generating cash flow from operations. Its fund
based bank lines have high utilization. While the operations are
expected to resume post September 2018, which may result in
resumption of cash generation thus relieving any stress on the
financial profile, same will remain a monitorable.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale coupled with geographic concentration: With
revenue of INR31.71 crore for fiscal 2017, the scale remains
modest in a highly competitive fragmented industry, largely
dominated by the unorganised sector. Furthermore, there is
geographical concentration in revenue, with entire revenue being
derived from its single showroom in Satna (Madhya Pradesh). Being
a local player, it is vulnerable to adverse changes in preference
of customers. Changes in purchasing power of customers in the
local market or in business conditions could affect revenue
significantly.
* Working capital-intensive operations, constraining liquidity
Gross current assets were high (around 363 days as on March 31,
2017) primarily driven by substantial inventory (335 days).
Strengths
* Extensive experience of promoters: The promoters' experience of
over 30 years in the gems and jewellery industry has helped them
gain insights into consumers' buying patterns and identify trends
in jewellery designs.
Incorporated in 2007, SPJPL, promoted by Mr. Sanjay Verma and Mr.
Rajeev Verma, primarily retails gold, diamond, and silver
jewellery. The company operates its single retail showroom in
Satna. Prior to 2007, the company operated as a proprietorship
firm since 1972.
SHREYAS ENTERPRISES: CRISIL Cuts Rating on INR9.25cr Loan to B
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Shreyas Enterprises - Gorakhpur (SE) to 'CRISIL B/Stable' from
'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.25 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects the drop in operating margin to 0.8% in
fiscal 2018, from 1.2% and 1.4% in fiscals 2017 and 2016,
respectively, and the weak financial risk profile and liquidity.
However, liquidity is aided by unsecured loans extended by
partners (outstanding at INR1.85 crore on March 31, 2018) and
absence of any term-debt. These rating weaknesses are partially
offset by extensive experience of partners and the firm's
moderate working capital requirement.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Intense competition in the coal
trading business, has kept the scale of operations modest, as
reflected in estimated revenue of INR67.23 crore in fiscal 2018.
The firm also manufactures bricks, and derives 20-25% of overall
revenue from this segment.
* Weak financial risk profile: Financial risk profile was marked
by a highly leveraged capital structure and below-average debt
protection metrics. Total outside liabilities to tangible
networth (TOLTNW) ratio was estimated at 2.35 times as on March
31, 2018 (2.35 times as on March 31, 2017, while the networth was
small at INR2.17 crore. Debt protection metrics were marked by an
interest coverage ratio of 0.54 time in fiscal 2018. Sizeable
working capital debt and muted profitability may continue to
constrain the financial risk profile.
Strength:
* Extensive experience of the partners: Longstanding presence of
the partners in the coal trading and brick manufacturing
businesses, through the family business, has helped the firm
build healthy relationships with clients, as reflected in net
sales of INR67.23 crore in fiscal 2018.
* Moderate working capital requirement: Gross current assets
(GCAs) were estimated at 68 days as on March 31, 2018, led by
moderate inventory and low receivables of 8 and 2 days,
respectively, and are likely to be in the range of 60-70 days in
the medium term.
Outlook: Stable
CRISIL believes SE will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if improvement in profitability and capital structure,
strengthens the financial risk profile. The outlook may be
revised to 'Negative' if stretch in working capital cycle, muted
profitability, or withdrawal of capital by partners, exerts
pressure on liquidity.
SE was set up as a partnership firm of Mr. Vinay Kumar Singh and
Ms Tara Singh in 2012. The Gorakhpur (Uttar Pradesh)-based firm
trades in coal, and manufactures bricks.
SHRUTI SALES: CRISIL Assigns B+ Rating to INR6.3cr Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Shruti Sales Corporation (SSC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.3 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3.7 CRISIL B+/Stable (Assigned)
The rating reflects modest scale of operations in a highly
fragmented industry, low operating margin and subdued financial
risk profile. These rating weaknesses are partially offset by
extensive experience of promoter in the flour industry and
efficient working capital management.
Analytical Approach
Unsecured loans from promoter and family members are treated as
neither debt nor equity.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale in intensely competitive industry with low
profitability: The flour business is highly fragmented, with
numerous small-scale unorganized players catering to local
demands which has led to a modest scale, reflected in revenue of
INR40.18 crore for fiscal 2018. This restricts benefits of
economies of scale and limits pricing flexibility, thereby
constraining profitability as reflected in margins of around 1-2
per cent in last 3 fiscals.
* Subdued financial risk profile: SSC has weak capital structure
marked by low networth of INR1.56 crore with gearing and total
outside liabilities to adjusted tangible networth (TOLTNW) of
3.10 times and 3.7 times, respectively, as on March 31, 2018. The
debt protection metrics are subdued marked by interest coverage
and net cash accruals to total debt (NCATD) of 1.37 times and
0.03 times, respectively, in fiscal 2018.
Strengths:
* Promoters' extensive industry experienced: Promoter's
experience of around 5 years in the flour industry has helped
them to have understanding of the dynamics of the local market,
anticipating price trends and calibrating purchasing and stocking
decisions. They have established strong relationship with its
customer base to Goa and maintaining continuous order flow.
* Efficiently managed working capital requirement: SSC's working
capital cycle is efficiently managed as reflected in gross
current asset of 76 days due to moderate debtors of 43 days and
inventory of 24 days, as on March 31, 2018. Management of working
capital will remain key rating sensitivity factor.
Outlook: Stable
CRISIL believes SSC will benefit over the medium term from the
industry experience of its promoter. The outlook may be revised
to 'Positive' if substantial increase in revenue and
profitability, leads to better financial risk profile. The
outlook may be revised to 'Negative' if decline in revenue or
profitability or stretch in working capital cycle, weakens
financial risk profile, particularly liquidity.
SSC based in Kolhapur, Maharashtra was established as a
proprietorship firm by Mr. Yuvraj Mali in 2014. The firm
processes and sells wheat atta, suji, maida, etc.
SIR SHADI: CRISIL Lowers Rating on INR71cr Cash Loan to C
---------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Sir Shadi Lal Enterprises Limited (SSLEL) to 'CRISIL C' from
'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 71 CRISIL C (Downgraded from
'CRISIL B/Stable')
Proposed Long Term 40.45 CRISIL C (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
SEFASU Loan 18.55 CRISIL C (Downgraded from
'CRISIL B/Stable')
Working Capital 70 CRISIL C (Downgraded from
Term Loan 'CRISIL B/Stable')
The downgrade reflects deterioration in the company's business
risk profile in fiscal 2018, reflected in decline in sales to
INR392 crore and operating loss of 0.3% driven by drop in sugar
prices in sugar season (SS) 2017-18, leading to fall in
realisations. On account of operating loss, debt protection
metrics deteriorated. Additionally, with subdued realisations in
fiscal 2019 for sugar, operating margin is expected to remain
weak over the medium term, impacting accrual.
The rating continues to reflect the company's working capital-
intensive operations, stretched liquidity with significant
accumulated losses, and exposure to regulatory risk in the sugar
industry. These weaknesses are partially offset by the promoters'
extensive experience in the sugar industry and their funding
support.
Key Rating Drivers & Detailed Description
Weaknesses
* Adverse networth because of significant accumulated losses: The
capital structure remains weak, with negative networth of
INR64.41 crore as on March 31, 2018, owing to losses in the past.
* Susceptibility to regulatory risk in the sugar industry: The
sugar industry is highly regulated with controls on both
pricing/supply of sugarcane, and sale of sugar. Consequently, the
credit quality of domestic players continues to hinge on
sugarcane price regulations, the export-import policy, and the
sugar release mechanism of the Government of India.
* Working capital-intensive operations: The company's large
working capital requirement is reflected in gross current assets
of 201 days as on March 31, 2018, with inventory estimated at 182
days.
Strengths:
* Promoters' extensive experience: The promoters have significant
experience in the sugar industry, and have developed good
relationships with customers and suppliers.
* Need-based funding support from the promoters: The promoters
have supported the company in the form of unsecured loans, which
stood at INR13.55 crore as on March 31, 2018. In fiscal 2019, the
promoters are likely to extend additional unsecured loans.
Support from the promoters is expected to continue in case of
exigencies.
SSLEL was established in 1933 by Mr. Shadi Lal. The company
manufactures sugar and alcohol at its facilities in Shamli, Uttar
Pradesh. It is listed on the Bombay Stock Exchange.
SPECIALITY SILICA: CRISIL Withdraws B+ Rating on INR4.75cr Loan
---------------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Speciality
Silica Private Limited (SSPL) from 'CRISIL B+/Stable/Issuer Not
Cooperating to 'CRISIL B+/Stable' and has withdrawn the same at
the company's request and based on the no objection certificate
received from the banker. The rating action is in-line with
CRISIL's policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL B+/Stable/Issuer Not
Cooperating (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING' and Rating
Withdrawn)
Proposed Long Term 3.00 CRISIL B+/Stable/Issuer Not
Bank Loan Facility Cooperating (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING' and Rating
Withdrawn)
Term Loan 9.50 CRISIL B+/Stable/Issuer Not
Cooperating (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING' and Rating
Withdrawn)
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of SSPL to 'CRISIL
B+/Stable/Issuer Not Cooperating'. However, the management has
subsequently started sharing requisite information, necessary for
carrying out comprehensive review of the rating. Consequently,
CRISIL is migrating the ratings on bank facilities of SSPL from
'CRISIL B+/Stable/Issuer Not Cooperating to 'CRISIL B+/Stable'
and has withdrawn the same at the company's request and based on
the no objection certificate received from the banker. The rating
action is in-line with CRISIL's policy on withdrawal of bank loan
ratings.
Set up in 2004, SSPL is promoted by Mr. Ravi Soni, who has been
associated with the chemicals industry for around three decades.
The company produces precipitated silica with capacity of 6000
tpa. Currently, it primarily manufactures rubber-grade silica and
silica for dental care. The company commenced production in
fiscal 2009.
STAR BATTERY: CRISIL Raises Rating on INR2cr LT Loan to B+
----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Star Battery Limited (SBL) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable', and reassigned its 'CRISIL A4' rating to the short-
term facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (Reassigned)
Letter of Credit 5 CRISIL A4 (Reassigned)
Proposed Long Term 2 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
The upgrade reflects a track record of timely debt servicing,
which was earlier delayed due to a stretch in liquidity and delay
in project implementation. The upgrade also factors in
stabilisation of operations after the full and final payment of
dues to Industrial Development Bank of India, State Bank of
India, and Kotak Mahindra Bank. The scale of operations is likely
to improve supported by orders in hand from both private and
public sector clients.
The ratings reflect a weak financial risk profile, a modest scale
and working capital-intensive nature of operations, and
susceptibility to risks related to the tender-based nature of the
business. These rating weaknesses are partially offset by the
extensive experience of the promoters in the lead-acid-storage
battery industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest market position: Despite the three-decade presence in
the industry, the scale of operations remains modest, as
reflected in net sales of INR23.5 crore in fiscal 2018.
* Moderate gearing and modest networth: The gearing and networth
are estimated at around 1.12 times and INR6.36 crore,
respectively, as on March 31, 2018. The gearing has reduced from
2.2 times a year earlier after pre-payment of long-term debt, and
is expected to improve further due to gradual accretion to
reserves and absence of any debt-funded capital expenditure
(capex) plan over the medium term. The overall capital
requirement is also supported by preference shares of INR3.64
crore subscribed to by the promoters and need-based unsecured
loans from them.
* Susceptibility to the tender-based nature of the business:
Revenue depends on the ability to successfully bid for tenders
and hence this will remain a key rating monitorable.
Strength:
* Extensive industry experience of the promoters: The three-
decade presence of the promoters in the lead-acid-storage battery
industry has helped the company become one of the few approved
vendors in India.
Outlook: Stable
CRISIL believes SBL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of an increase in the scale of operations
while profitability is maintained. The outlook may be revised to
'Negative' in case of a decline in revenue or operating margin,
leading to lower'than-expected cash accrual, and/or a stretch in
the working capital cycle, weakening the financial risk profile.
SBL was incorporated in 1986, promoted by Mr. S K Kejriwal at
Kolkata. The company manufactures valve-regulated and flooded
lead-acid batteries, which are used in industries such as the
telecommunications, railways, and solar power.
TEXOOL LIMITED: CRISIL Withdraws B Rating on INR3cr Loan
--------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Texool
Limited (Texool) at the company's request and receipt of no
objection certificate from Bank. The rating action is in line
with CRISIL's policy on withdrawal of its bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 0.5 CRISIL B/Stable/Issuer not
cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
Foreign Bill 3 CRISIL B/Stable/Issuer not
Purchase cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
Packing Credit 6 CRISIL A4/Issuer not
cooperating (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL has been consistently following up with Texool for
obtaining information through letters and emails dated April 26,
2018, May 11, 2018, June 6, 2018 and June 11, 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 Texool. 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 the firm is consistent with 'Scenario 1' outlined
in the 'Framework for Assessing Consistency of Information'
corresponding to CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of
Texool continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Texool is an export-oriented unit (EOU) with a facility in Kandla
SEZ, Gujarat. The company is engaged in manufacturing and sales
of shoddy yarns and rendered unserviceable used clothing.
Currently, operations are managed by Mr. Surinder Sajdeh.
UNIVERSAL TUBE: CRISIL Assigns D Rating to INR4.32cr LT Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Universal Tube Accessories Private Limited (UTAPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.68 CRISIL D (Assigned)
Long Term Loan 4.32 CRISIL D (Assigned)
The rating reflects delays in debt servicing by UTAPL due to weak
liquidity. The rating also factors in small and declining scale
of operations, large working capital requirement, and modest
financial risk profile. These weaknesses are partially offset by
the promoter's experience.
Key Rating Drivers & Detailed Description
* Delays in debt servicing: There have been delay in repayment of
maturing debt due to weak liquidity.
Weaknesses
* Small scale of operations: Revenue increased to INR3.56 crore
in fiscal 2018 from INR1.98 crore in fiscal 2017 due to product
diversification. However, intense competition may continue to
restrict scalability and limit pricing power, thereby
constraining profitability
* Large working capital requirement: Gross current assets were
494 days as on March 31, 2018, driven by debtors of 150 days, and
substantial loans and advances.
* Weak financial risk profile: Gearing was at 1.43 times as on
March 31, 2018, due to modest networth of INR4.50 crore. Networth
remains constrained by low initial capital, and modest accretion
to reserve
Strength
* Experience and funding support of promoter: Benefits from the
promoter's experience of over three decades, his strong
understanding of the local market dynamics, and healthy relations
with customers and suppliers should continue to support the
business.
UTAPL, incorporated in 2011 by Mr. Dayanand Petkar, manufactures
plastic pipe fittings used in oil and gas industries; it also
produces plastic packaging material for paint and chemical
industries, and food products. The production facility at Jejuri
MIDC (Pune) has installed capacity of 3.6 lakh sets per annum.
VINIRRMAA PROJECTS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vinirrmaa
Projects Pvt Ltd.'s Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based
on the best available information. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR80 mil. Fund-based working capital limits (long-/short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR150 mil. Non-fund-based working capital limits (short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The downgrade reflects intermittent delays in debt repayments
over the 12 months ended June 2018 due to a stretched liquidity
position.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in an upgrade.
COMPANY PROFILE
Vinirrmaa Projects executes engineering, procurement and
construction contracts in the civil building and mining segments.
WOCKHARDT LTD: Net Loss Narrows to INR86cr in Qtr Ended June 30
---------------------------------------------------------------
The Hindu BusinessLine reports that Wockhardt Ltd has reported
narrowing of its consolidated net loss to INR86 crore for the
quarter ended June 2018 against a loss of INR410 crore in the
same period a year ago.
Consolidated revenue from sales increased by 13.13 per cent to
INR1,008 crore during the reported quarter from INR891 crore in
the corresponding period of 2017-18, the company said, the report
relays.
"The business performance of the company during the quarter ended
June 30, 2018 showed marked improvement with a sales growth of 13
per cent compared with the similar quarter of the previous year
driven by growth in US, lndia business and growing emerging
markets," the company, as cited by BusinessLine, said.
India, US and Irish businesses of the company grew 30 per cent,
20 per cent and 7 per cent, respectively, while there was a
de-growth of 7 per cent in the UK business, BusinessLine
discloses.
Research and development expenditure during the quarter stood at
INR61 crore (6 per cent of sales) and including capital
expenditure, it was at 8.3 per cent of sales. "Capital
expenditure during the quarter was INR73 crore," the company
said.
About Wockhardt Limited
Wockhardt Limited is an India-based pharmaceutical company. The
Company is a subsidiary of Khorakwala Holdings and Investments
Private Limited. The geographical segments of the Company are
India, the United States/Western Europe and Rest of the World.
The Company's subsidiaries includes Wockhardt Biopharm Limited,
Vinton Healthcare Limited, Wockhardt Infrastructure Development
Limited, Wockhardt UK Holdings Limited, CP Pharmaceuticals
Limited, Wallis Group Limited, The Wallis Laboratory Limited,
Wallis Licensing Limited, Wockhardt UK Limited, Wockhardt France
(Holdings) S.A.S., Girex S.A.S., Niverpharma S.A.S., Laboratories
Negma S.A.S., DMH S.A.S., Phytex S.A.S., Scomedia S.A.S. and
Mazal Pharmaceutique S.A.R.L. In August 2009, the Company
completed the divestment of its Animal Health Division to
Vetoquinol, France.
=========
J A P A N
=========
CHOSHI ELECTRIC: Launches 'Foul-Tasting' Snack to Boost Revenue
---------------------------------------------------------------
The Japan Times reports that a small railway in Choshi, Chiba
Prefecture, has turned to a stick-shaped snack with a funny name
in an attempt to boost its business, which has been battered by a
decline in ridership.
Choshi Electric Railway Co., which runs a 6.4-km line in the
city, began selling the Mazui Bo, meaning "foul-tasting stick,"
on Aug. 3, the report says.
"Actually, it is tasty," its official website says of the snack,
which has a corn potage flavor. A phrase on the packaging says
the only thing going bad is its own business, the Japan Times
relays.
According to the report, Mazui Bo isn't the company's first foray
into the snack industry. The Japan Times relates that the railway
has been selling chewy wet rice crackers called Nuresembei for
more than 20 years to help offset losses from the decline in
ridership caused by depopulation in the surrounding areas.
The crackers accounted for 70 percent of the company's revenue in
fiscal 2017, with rail enthusiasts eagerly buying them to support
the company, which was established in 1923.
Mazui Bo are sold at Inubo Station for JPY50 each. A set of 15 is
available for JPY600. The company said it also plans to start
selling the product online.
"By trying new things, we want to appeal to people nationwide
that Choshi Electric is still working in good spirits," the
report quotes President Katsunori Takemoto as saying.
The Japan Times notes that the company is not the only railway
operator in the country facing a harsh business environment
caused by Japan's graying population and low birthrate.
Japan has seen dozens of railways scrapped since 2000, and many
of the survivors are shifting their businesses to sectors outside
of transportation, the report states.
=================
S I N G A P O R E
=================
HYFLUX LTD: Sembcorp, YTL Said to Eye Pursuing Tuaspring Plant
--------------------------------------------------------------
Joyce Koh and Elffie Chew at Bloomberg News report that Sembcorp
Industries Ltd. and Keppel Corp. are among parties planning to
study bids for Hyflux Ltd.'s biggest asset, according to people
with knowledge of the matter, in a sale that's key to helping the
cash-strapped company get back on its feet.
Hyflux's Tuaspring project, which includes Southeast Asia's
biggest desalination plant, has also drawn interest from
Malaysian generator YTL Power International Bhd., the people
said, asking not to be named as the process is private, Bloomberg
relates. The asset had a book value of SGD1.47 billion ($1.1
billion) at the end of March, Bloomberg discloses citing Hyflux
exchange filings.
Hyflux had also reached out to billionaire Anthoni Salim's Metro
Pacific Investments Corp. to gauge its interest, the people said,
the report relays.
Suitors would need approval from the Public Utilities Board,
which regulates the Singapore water supply, before receiving more
details of Tuaspring's business operations, according to the
people, Bloomberg notes. More information, including the price
Tuaspring receives for the water it sells to PUB, will be
provided to bidders who get approval, the people said.
Saddled with SGD2.95 billion of liabilities, Hyflux started a
court-supervised reorganization process in May and obtained a
six-month debt moratorium in the latest casualty among
overstretched Singapore companies, according to Bloomberg. The
water treatment firm is led by founder Olivia Lum, who was a
poster child for Singapore entrepreneurs before Hyflux's finances
were strained by an ill-timed entry into the energy business.
Bloomberg says the Tuaspring project combines a desalination
plant and a gas turbine power plant. It has a designed capacity
of 318,500 cubic meters per day of desalinated water and 411
megawatts of power, according to its website.
Any deal would add to the $59.6 billion of acquisitions announced
in Southeast Asia this year, data compiled by Bloomberg show.
Hyflux expects to get binding bids for Tuaspring by Oct. 1, Lum
said last month, Bloomberg recalls. The company agreed with main
creditor Malayan Banking Bhd. to execute a binding agreement with
a successful bidder by Oct. 15, in return for the lender
refraining from starting enforcement proceedings.
Bloomberg relates that Lum said last month there are eight
interested parties for Tuaspring. Bids for the project shouldn't
be "so unreasonably low" that the firm can't pay back its
stakeholders, she said at the time.
A representative for Hyflux said the company is unable to
comment, as the Tuaspring divestment process is ongoing,
Bloomberg says. Sembcorp said by email that from time to time,
the company may evaluate different opportunities. There's no
assurance any such discussions will lead to a transaction,
according to Sembcorp. Keppel said in a statement that it's
always evaluating opportunities where it is able to grow its
businesses, Bloomberg relays.
YTL Power Managing Director Yeoh Seok Hong couldn't immediately
be reached by phone and didn't respond to emailed queries. "We
were offered to take a look, but we have no details as of now,"
Metro Pacific President Joey Lim said in response to Bloomberg
queries.
Asset sales are key to Hyflux's efforts to trim its debt load
while it also seeks rescue financing for working capital,
Bloomberg states. At the end of March, it had SGD500 million of
perpetual securities, SGD400 million of preference shares and
SGD803 million of unsecured loans and bonds among its
liabilities, Bloomberg discloses citing an exchange filing.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The
company operates through two segments, Municipal and Industrial.
The Municipal segment supplies a range of infrastructure
solutions, including water, power, and waste-to-energy to
municipalities and governments. The Industrial segment supplies
infrastructure solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering
Pte Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux
Innovation Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied
to the High Court of the Republic of Singapore pursuant to
Section 211B(1) of the Singapore Companies Act to commence a
court supervised process to reorganize their liabilities and
businesses. The Company said it is taking this step in order to
protect the value of its businesses while it reorganises its
liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this
process.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2018. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***