/raid1/www/Hosts/bankrupt/TCRAP_Public/190123.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
Wednesday, January 23, 2019, Vol. 22, No. 016
Headlines
A U S T R A L I A
ADK INVESTMENT: First Creditors' Meeting Set for Jan. 31
COUNTRY WELLNESS: Second Creditors' Meeting Set for Jan. 30
HORSFIELD TRANSPORT: Second Creditors' Meeting Set for Feb. 1
MESOBLAST LIMITED: Draws Down $15M From Exiting Credit Facility
NT BEVERAGES: Second Creditors' Meeting Set for Jan. 30
QUIKFUND AUSTRALIA: Second Creditors' Meeting Set for Jan. 30
UNITY GROUP: Second Creditors' Meeting Set for Jan. 30
C H I N A
CAR INC: Moody's Lowers CFR to B1, Outlook Stable
CBAK ENERGY: Fails to Comply with Nasdaq's MVPHS Rule
CBAK ENERGY: Yunfei Li Hikes Stake to 17.6% as of Jan. 7
CHINA LOGISTICS: Moody's Cuts CFR to B3 & Alters Outlook to Neg.
SPI ENERGY: Will Raise $7.6 Million from Private Placement
I N D I A
ADITYA ARAV: CARE Migrates B Rating to Not Cooperating Category
AJAI BUILDERS: CARE Lowers Rating on INR2.47cr LT Loan to B+
AJAY HIRALAL: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
ANANDESHWAR RICE: CARE Lowers Rating on INR6cr Loan to B
B. ONE BUSINESS: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating
BISWAPITA COLD: CARE Lowers Rating on INR6.31cr LT Loan to 'B'
CHETAN ALLOYS: CARE Maintains B+ Rating in Not Cooperating
FIVEBRO INTERNATIONAL: Ind-Ra Lowers Issuer Rating to 'D'
GOLDEN RETREATS: CARE Moves B+ Rating to Not Cooperating Category
INFINITY INFRATECH: CARE Maintains B+ Rating in Not Cooperating
INFRASTRUCTURE LEASING: Faces Overseas Bond Payment Due Jan. 25
JAIN SARVODAYA: Ind-Ra Moves D Issuer Rating to Non-Cooperating
JHARKHAND ROAD: Ind-Ra Lowers Senior Secured Rating to BB-
KAMSA STEEL: CARE Migrates B+ Rating to Not Cooperating Category
KUNAL LOHACHEM: CARE Reaffirms B Rating on INR6cr LT Loan
LORDS ORIENTAL: CARE Maintains D Rating in Not Cooperating
MANGALAYATAN UNI: Ind-Ra Maintains 'B+' Rating in Non-Cooperating
NORTECH POWER: CARE Hikes Rating on INR2cr LT Loan to B
PARADIGM TUNNELING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
RK POULTRIES: Ind-Ra Migrates D Issuer Rating to Non-Cooperating
SAMRAT GEMS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
SINGHAL BUSINESS: CARE Hikes Rating on INR18cr LT Loan to BB-
SURYA WIRES: CARE Reaffirms B+ Rating on INR10cr LT Loan
TULSI RAM: CARE Assigns B+ Rating to INR4cr LT Loan
UNITON INFRA: CARE Migrates B+ Rating to Not Cooperating Category
M A C A U
STUDIO CITY: S&P Affirms BB- Issuer Credit Rating, Outlook Stable
N E W Z E A L A N D
ROLLO'S OUTDOOR: To Shut Down Business After 47 Years
S O U T H K O R E A
SAMSUNG BIOLOGICS: Court Suspends FSC's Penalties
T H A I L A N D
KTB SECURITIES: Fitch Rates THB400MM Subordinated Debentures BB-
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A U S T R A L I A
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ADK INVESTMENT: First Creditors' Meeting Set for Jan. 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of ADK
Investment Pty Ltd, trading as Narati Noodle & Grill, will be
held on Jan. 31, 2019, at 4:00 p.m. at the offices of Deloitte
Financial Advisory Pty Ltd, at Level 23, Riverside Centre,
123 Eagle Street, in Brisbane, Queensland.
David Orr of Deloitte Financial was appointed as administrator of
ADK Investment on Jan. 18, 2019.
COUNTRY WELLNESS: Second Creditors' Meeting Set for Jan. 30
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Country
Wellness Pharmacy Pty Ltd has been set for Jan. 30, 2019, at
10:00 a.m. at the offices of BRI Ferrier, at Level 4, 307 Queen
Street, in Brisbane, Queenslad.
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 Jan. 29, 2019, at 5:00 p.m.
Ian Alexander Currie and Stefan Dopking of BRI Ferrier were
appointed as administrators of Country Wellness on Aug. 27, 2018.
HORSFIELD TRANSPORT: Second Creditors' Meeting Set for Feb. 1
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Horsfield
Transport Pty. Ltd. and Horsfield Trading Pty. Ltd. has been set
for Feb. 1, 2019, at 11:00 a.m. at the offices of Rodgers Reidy,
at Level 3, 326 William 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 Jan. 31, 2019, at 5:00 p.m.
Brent Leigh Morgan of Rodgers Reidy was appointed as
administrator of Horsfield Transport on Dec. 17, 2018.
MESOBLAST LIMITED: Draws Down $15M From Exiting Credit Facility
---------------------------------------------------------------
Mesoblast Limited has drawn down a further US$15 million from its
US$75 million, non-dilutive, four-year credit facility with
Hercules Capital, Inc. The funds will be used primarily to ramp
up Mesoblast's product commercialization programs including
building out a targeted sales force for its product candidate for
acute graft versus host disease (aGVHD).
The additional non-dilutive capital was made available after the
success of Mesoblast's product candidate Revascor (MPC-150-IM) in
having significantly reduced hospitalization rates from major
gastrointestinal bleeding in patients with end-stage heart
failure and a left ventricular assist device (LVAD) compared with
controls in the 159-patient Phase 2 trial funded by the U.S.
National Institutes of Health.
Mesoblast plans to meet with the U.S. FDA during the first half
of 2019 to discuss a potential approval pathway for Revascor
having met this clinically meaningful outcome in LVAD patients.
Additionally, Mesoblast plans to submit a rolling Biologics
License Application with the FDA for use of remestemcel-L in
treating aGVHD in children in early 2019 and will execute on the
product candidate's market access and commercialization strategy.
There are no FDA approved treatments for this disease with high
mortality.
Scott Bluestein, chief investment officer of Hercules Capital,
said: "We are pleased with the continued clinical and corporate
progress of Mesoblast since the original funding of our credit
facility. We have made available a US$15 million second advance
following Mesoblast's performance in 2018.
"This additional advance once again demonstrates Hercules' unique
ability to continue to finance our companies through multiple
value inflection points."
An additional draw of US$25 million from the Hercules facility
may occur through Q4 2019 subject to certain conditions. There
are no warrants associated with this credit facility.
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited
(ASX:MSB; Nasdaq:MESO) -- http://www.mesoblast.com/-- is a
global developer of innovative cell-based medicines. The Company
has leveraged its proprietary technology platform to establish a
broad portfolio of late-stage product candidates with three
product candidates in Phase 3 trials - acute graft versus host
disease, chronic heart failure and chronic low back pain due to
degenerative disc disease.
Through a proprietary process, Mesoblast selects rare mesenchymal
lineage precursor and stem cells from the bone marrow of healthy
adults and creates master cell banks, which can be industrially
expanded to produce thousands of doses from each donor that meet
stringent release criteria, have lot to lot consistency, and can
be used off-the-shelf without the need for tissue matching.
Mesoblast has facilities in Melbourne, New York, Singapore and
Texas and is listed on the Australian Securities Exchange (MSB)
and on the Nasdaq (MESO).
Mesoblast reported a net loss attributable to the owners of
Mesoblast of US$35.29 million for the year ended June 30, 2018,
compared to a net loss attributable to the owners of Mesoblast of
US$76.81 million for the year ended June 30, 2017. As of
Sept. 30, 2018, Mesoblast had US$688.78 million in total assets,
US$161.19 million in total liabilities, and US$527.59 million in
total equity.
PricewaterhouseCoopers, in Melbourne, Australia, the Company's
auditor since 2008, issued a "going concern" opinion in its
report on the consolidated financial statements for the year
ended June 30, 2018. The auditors noted that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.
NT BEVERAGES: Second Creditors' Meeting Set for Jan. 30
-------------------------------------------------------
A second meeting of creditors in the proceedings of NT Beverages
Limited and NT Beverages Group Pty Ltd has been set for Jan. 30,
2019, at 2:00 p.m. at the offices of Mantra Pandanas, at 43
Knuckey Street, in Darwin, NT.
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 Jan. 29, 2019, at 4:00 p.m.
Stewart Alexander McCallum and George Georges of Ferrier Hodgson
were appointed as administrators of NT Beverages on Dec. 16,
2018.
QUIKFUND AUSTRALIA: Second Creditors' Meeting Set for Jan. 30
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Quikfund
(Australia) Pty Ltd has been set for Jan. 30, 2019, at 10:00 a.m.
at the offices of Hall Chadwick, at Level 40, 2 Park 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 Jan. 29, 2019, at 4:00 p.m.
Blair Pleash of Hall Chadwick was appointed as administrator of
Quikfund (Australia) on Dec. 17, 2018.
UNITY GROUP: Second Creditors' Meeting Set for Jan. 30
------------------------------------------------------
A second meeting of creditors in the proceedings of Unity Group
of Companies (2009) Pty Ltd has been set for Jan. 30, 2019, at
10:30 a.m. at the offices of Clifton Hall, at Level 3, 431 King
William Street, in Adelaide, SA.
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 Jan. 29, 2019, at 4:00 p.m.
Timothy James Clifton and Daniel Lopresti of Clifton Hall were
appointed as administrators of Unity Group on Dec. 13, 2018.
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C H I N A
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CAR INC: Moody's Lowers CFR to B1, Outlook Stable
-------------------------------------------------
Moody's Investors Service has downgraded CAR Inc.'s corporate
family and senior unsecured ratings to B1 from Ba3.
The ratings outlook is stable.
RATINGS RATIONALE
"The downgrade reflects our view that CAR's debt leverage is
unlikely to improve over the next 12-18 months, given the
company's investment to maintain its leading market position --
by expanding its fleet -- in China's competitive car rental
industry," says Gerwin Ho, a Moody's Vice President and Senior
Credit Officer, and the Lead Analyst for CAR.
The company's total fleet grew 24% year-on-year to reach 123,879
vehicles at the end of June 2018. Moody's expect CAR to further
grow its fleet by about 15% year-on-year in the next 12-18 months
from the level at the end of 2018.
As a result of this continued investment, Moody's expects that
CAR's adjusted debt levels will likely grow by about 10% year-on-
year over the same time frame.
At the same time, Moody's expects rental revenue will grow about
9% year-on-year and rental gross margin will remain stable at
about 39.0%-39.5% in the next 12-18 months versus 2018 levels as
competition-induced pricing pressures offset cost improvements
from scale and cost controls.
Furthermore, Moody's expects that CAR's moderate growth in debt
and EBITDA will result in debt leverage - as measured by adjusted
net debt/EBITDA - rising to about 3.1x over the next 12-18 months
from 2.1x in 2017. In addition, leverage, as measured by adjusted
debt/EBITDA, will also rise to about 4.1x from 3.7x. Such levels
position the company in the B rating category.
CAR liquidity is weak. Although its restricted and unrestricted
cash of RMB4.6 billion was sufficient to cover its short-term
debt of RMB3.5 billion as of June 30, 2018, Moody's expects
cash/short-term debt to decline at the end of 2018 due to term
debt maturities in the next 12-18 months.
Nonetheless, the company has demonstrated a track record of
access to diversified funding channels, including debt
instruments such as onshore corporate bonds, offshore RMB bonds,
and USD bonds.
Moody's also expects that the company will be able to roll over
its debt with domestic banks, given its profitable operations and
strong market position.
However, the inability of CAR to re-finance its short term debt
will pressure its rating.
CAR's B1 corporate family rating is supported by the company's
leadership position in China's growing car rental market.
The B1 rating also consider the company's business model, which
exhibits a certain level of financial flexibility, as seen by the
short lead time for its fleet acquisitions, its asset-light
network, and its ease of asset disposals.
On the other hand, the ratings also reflect the fact that CAR
faces: (1) competition from other car rental companies and
indirect competition from non-car rental companies that provide
transportation services; and (2) regulatory risks in terms of
controls on vehicle ownership, the traffic points system, local
regulation of the automotive rental industry, and regulations
related to online chauffeured car services.
The stable ratings outlook takes into account Moody's expectation
that CAR will maintain its leading market position and stable
level of debt leverage, and will be able to re-finance its short
term debt.
Ratings upgrade pressure could arise if CAR: (1) maintains its
leading market position, grows in scale, and demonstrates
resilience in down-cycles; (2) demonstrates stability in its
profit margins; (3) maintains prudent financial management; and
(4) shows improved credit metrics, such that cash/short-term debt
exceeds 1x and debt/EBITDA is below 3x on a sustained basis.
On the other hand, ratings downgrade pressure could arise if CAR
exhibits: (1) declining revenues; (2) a further weakening of
liquidity; or (3) a deterioration in its credit metrics, due to
increased competition, shareholder distributions, or aggressive
expansion and acquisitions.
Credit metrics indicative of ratings downgrade pressure include
debt/EBITDA exceeding 5.0x on a sustained basis.
The principal methodology used in these ratings was Equipment and
Transportation Rental Industry published in April 2017.
CAR Inc., founded in 2007 and headquartered in Beijing, provides
car rental services, including car rentals and fleet rentals in
China. CAR listed on the Hong Kong Stock Exchange in September
2014.
At June 30, 2018, CAR had a total fleet of 123,879 company-owned
vehicles. It commands a leading position in China by fleet size
and revenue. During 1H 2018, it reported net sales of RMB3.1
billion.
And, at June 30, 2018, CAR's key shareholders included Legend
Holdings (26.2%); UCAR Technology Inc. (29.3%); and private
equity firm, Warburg Pincus (12.2%).
CBAK ENERGY: Fails to Comply with Nasdaq's MVPHS Rule
-----------------------------------------------------
CBAK Energy Technology, Inc., received on Jan. 15, 2019, notice
from the Listing Qualifications staff of The Nasdaq Stock Market
LLC notifying the Company that for the last 30 consecutive
business days prior to the date of the Notice, the market value
of publicly held shares of the Company's common stock was less
than $15 million, which does not meet the requirement for
continued listing on The Nasdaq Global Market, as required by
Nasdaq Listing Rule 5450(b)(3)(C). In accordance with Nasdaq
Listing Rule 5810(c)(3)(D), Nasdaq has provided the Company with
180 calendar days, or until July 15, 2019, to regain compliance
with the MVPHS Rule.
To regain compliance with the MVPHS Rule, the market value of
publicly held shares of the Company's common stock must meet or
exceed $15 million for a minimum of ten consecutive business days
during the 180-day grace period. In the event the Company does
not regain compliance with the MVPHS Rule prior to the expiration
of the 180-day period, it will receive written notification that
its common stock is subject to delisting. Alternatively, the
Company may apply to transfer its common stock to The Nasdaq
Capital Market.
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn-- is engaged in the
business of developing, manufacturing and selling new energy high
power lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of US$21.46 million for the year
ended Dec. 31, 2017 compared to a net loss of US$12.65 million
for the year ended Sept. 30, 2016. As of Sept. 30, 2018, the
Company had $132.15 million in total assets, $128.18 million in
total liabilities, and $3.97 million in total equity.
Centurion ZD CPA Limited, in Hong Kong, China, the Company's
auditor since 2016, issued a "going concern" opinion in its
report on the consolidated financial statements for the year
ended Dec. 31, 2017 stating that the Company has a working
capital deficiency, accumulated deficit from recurring net losses
and significant short-term debt obligations maturing in less than
one year as of Dec. 31, 2017. All these factors raise
substantial doubt about its ability to continue as a going
concern.
CBAK ENERGY: Yunfei Li Hikes Stake to 17.6% as of Jan. 7
--------------------------------------------------------
In a Schedule 13D/A filed with the Securities and Exchange
Commission, Yunfei Li disclosed that as of Jan. 7, 2019, he
beneficially owns 5,592,685 shares of common stock of CBAK Energy
Technology, Inc., which represents 17.6 percent of the shares
outstanding. The percentage is based on 31,770,518 shares of
common stock that are deemed to be outstanding (including
5,098,040 shares to be issued pursuant to the cancellation
agreement that the Company entered into with two individual
creditors, including the Reporting Person, on Jan. 7, 2019 and
all of the restricted shares granted to the Reporting Person that
have not been vested and issued).
On Jan. 7, 2019, the Reporting Person entered into a cancellation
agreement with the Company pursuant to which, the Reporting
Person acquired 1,666,667 shares of Common Stock in exchange for
the cancelation of $1.7 million that CBAK Energy owed to the
Reporting Person, at the exchange price of $1.02 per share. Upon
receipt of the Shares, the Reporting Person will release the
Company from any claims, demands and other obligations relating
to the Debt.
A full-text copy of the regulatory filing is available for free
at https://is.gd/famclh
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn-- is engaged in the
business of developing, manufacturing and selling new energy high
power lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of US$21.46 million for the year
ended Dec. 31, 2017 compared to a net loss of US$12.65 million
for the year ended Sept. 30, 2016. As of Sept. 30, 2018, the
Company had $132.15 million in total assets, $128.18 million in
total liabilities, and $3.97 million in total equity.
Centurion ZD CPA Limited, in Hong Kong, China, the Company's
auditor since 2016, issued a "going concern" opinion in its
report on the consolidated financial statements for the year
ended Dec. 31, 2017 stating that the Company has a working
capital deficiency, accumulated deficit from recurring net losses
and significant short-term debt obligations maturing in less than
one year as of Dec. 31, 2017. All these factors raise
substantial doubt about its ability to continue as a going
concern.
CHINA LOGISTICS: Moody's Cuts CFR to B3 & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's has downgraded to B3 from B2 the corporate family rating
of China Logistics Property Holdings Co., Ltd.
Moody's has also affirmed CNLP's B3 senior unsecured rating, and
has changed the ratings outlook to negative from stable.
RATINGS RATIONALE
"The downgrade of CNLP's rating reflects the fact that its
interest coverage -- as measured by EBITDA/interest -- was below
1.0x in 2018 and will remain weak for the next 12 months," says
Stephanie Lau, a Moody's Vice president and Senior Analyst.
Moody's estimates that the company's EBITDA/interest will
register around 0.8x for the full year 2018 and will improve
slightly to 0.9x in 2019. This weak level of interest coverage
reflects the slower growth in market rental rates, despite the
company maintaining occupancy rates in accordance with its
business plan. Such interest coverage levels position the company
at the B3 rating level.
The company has kept sufficient cash balances to meet its
interest payments. As of June 2018 the company reported a cash
balance of RMB1.2 billion versus an estimated annual adjusted
interest payment of around RMB504 million in 2018.
The company is planning to step up its asset recycling in order
to replenish its cash balances and secure longer term funding for
business growth. Specifically, the company has been seeking
investors to set up property funds to which it will sell its
projects to raise cash, and from which it will receive management
fees and retain some ownership. In addition, CNLP entered into an
agreement with ICBCI LP in December 2018 to inject five of its
property projects.
The company's business expansion will be funded by asset sales
and fund management platforms, which are used to secure equity
and long-term funding. This change -- a departure from CNLP's
previous development-and-hold model -- raises execution risks, as
the company has yet to establish a track record in property fund
management.
Moody's will monitor the company's cash balances and the progress
of its fund management platforms. The company's ratings could
come under further pressure if there is a decline in its cash
balance or reduced asset recycling through more funds.
"The rating downgrade also reflects the company's high
refinancing risk," adds Lau, who is also Moody's Lead Analyst for
CNLP.
The company's cash/short-term debt ratio was weak at 0.77x as of
June 30, 2018.
In addition, beyond the next 12 months, the company will have to
refinance USD300 million of senior unsecured offshore bonds due
in August 2020, and USD100 million of senior secured offshore
notes puttable in March 2020.
The negative rating outlook reflects CNLP's high refinancing risk
over the next 12-18 months. This risk is somewhat mitigated by
the company's adjusted debt/total assets ratio of around 36% at
the end of June 2018, providing it with some flexibility to raise
additional cash through asset disposals if it is unable to
refinance some debts.
CNLP's B3 corporate family rating reflects the company's
operational experience, strong market position in Grade-A
logistics facilities in China and nationwide coverage of major
transportation hubs. CNLP's rental portfolio and revenue growth
will be supported by strong demand in China for Grade-A logistics
services from e-commerce and third-party logistics operators. The
company has more than 15 years of operational experience.
The rating also reflects CNLP's portfolio of reputable tenants,
including JD.com, Inc., Cainiao and Benlai from the e-commerce
industry, and SF Express, Sinotrans and Li & Fung Limited among
major third-party logistics providers.
However, CNLP's B3 corporate family rating is constrained by the
company's relatively short public listing track record and
moderate scale.
The rating is also constrained by CNLP's weak interest coverage
and liquidity position as well as increased execution risk from
the property fund model.
Moody's has removed the structural subordination previously
incorporated in CNLP's senior unsecured bond rating, because
claims at operating companies together with secured debt are less
than the senior unsecured debt at the holding company.
Given the negative ratings outlook, an upgrade of CNLP's ratings
is unlikely over the next 12-18 months.
Nevertheless, the ratings outlook could return to stable if CNLP
can (1) maintain adequate liquidity through asset recycling and
by refinancing its maturing debt; and (2) sustain EBITDA/interest
at 1.0x.
CNLP's rating could be downgraded if (1) its liquidity position
further deteriorates; (2) it is unable to raise cash through
further asset recycling; or (3) there is a deterioration in the
rental or occupancy rates of its core property portfolio.
The principal methodology used in these ratings was REITs and
Other Commercial Real Estate Firms published in September 2018.
China Logistics Property Holdings Co., Ltd is a leading operator
of Grade-A logistics facilities in China. At June 30, 2018, it
had 138 completed facilities in operation totaling 2.4 million
square meters. The facilities are located in 14 provinces or
centrally administered municipalities. Additionally, it had
900,000 square meters of facilities under development, and
800,000 square meters of land held for future development. Its
portfolio had a total value of RMB16.4 billion at June 30, 2018.
The company listed on the Hong Kong Stock Exchange on July 15,
2016.
SPI ENERGY: Will Raise $7.6 Million from Private Placement
----------------------------------------------------------
SPI Energy Co., Ltd. has entered into share purchase agreements
with certain existing shareholders (including certain key
management personnel of the Company) and other investors, to
purchase an aggregate of 6,600,000 ordinary shares of the Company
at a price of US$1.16 per Share, for a total consideration of
approximately US$7.6 million. The outside closing date is
April 14, 2019.
The Shares are being offered and sold solely to non-U.S.
investors, on a private placement basis in reliance on Regulation
S promulgated under the U.S. Securities Act of 1933, as amended.
The completion of the above transaction is subject to the
satisfaction of customary closing conditions. The Purchasers are
subject to a 90-day lock-up period beginning on the closing date.
The ordinary shares have not been and will not be registered
under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration.
Net proceeds from the transaction are intended to be used for
expansion of SPI Energy's global PV project activities and
general corporate purposes.
About SPI Energy
SPI Energy Co., Ltd. -- http://investors.spisolar.com/-- is a
global provider of photovoltaic (PV) solutions for business,
residential, government and utility customers and investors. SPI
Energy focuses on the EPC/BT, storage and O2O PV market including
the development, financing, installation, operation and sale of
utility-scale and residential PV projects in China, Japan, Europe
and North America. The Company operates an online energy
e-commerce and investment platform in China, as well as B2B
e-commerce platform offering a range of PV and storage products
in Australia. The Company has its operating headquarters in
Hong Kong and maintains global operations in Asia, Europe, North
America and Australia.
SPI reported a net loss attributable to shareholders of the
Company of $91.08 million for the year ended Dec. 31, 2017,
compared to a net loss attributable to shareholders of the
Company of $220.69 million for the year ended Dec. 31, 2016. As
of June 30, 2018, SPI Energy had $312.23 million in total assets,
$413.95 million in total liabilities, and a total deficit of
$101.71 million.
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I N D I A
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ADITYA ARAV: CARE Migrates B Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Aditya
Arav Dev Construction Company Private Limited (AADCCPL) to Issuer
Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2.25 CARE B; Stable; Issuer not
Facilities cooperating; Revised from
CARE B+; Stable; based on
best available information
Short-term Bank 11.00 CARE A4; Issuer not
Facilities cooperating; based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from AADCCPL to monitor the
rating vide letters/e-mails communications dated October 4, 2018,
October 22, 2018, November 9 2018, and November 19, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the entity has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the ratings on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at fair ratings. The rating on company's
bank facilities will now be denoted as CARE B; Stable/A4; ISSUER
NOT COOPERATING. Further, banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account constitution as a, working capital
intensive nature of the business and high competitive intensity
on account of low complexity of work involved with sluggish
economic scenario. The ratings, however, continue to draw comfort
from its experienced promotors.
Detailed description of the key rating drivers
At the time of last rating in November 29, 2017, the following
were the ratings strengths and weaknesses:
Key Rating Strengths
Experienced promoters with long track record of operations
AADCCPL is into construction activity since 2009 and thus has
more than 7 years of track record of operations. Mr. Laxman Singh
and the other promoter Mrs. Meena Singh W/o Laxman Singh is
having significant experience in the similar line of business
looked after the day to day operation of the company.
Key Rating Weaknesses
Working capital intensive nature of the business: The operations
of the company remained working capital intensive as the entity
executes orders mainly for public sector units and government
departments. Due to its working capital intensive nature of
operations, the entity stretches its payments to its suppliers.
High competitive intensity on account of low complexity of work
involved with sluggish economic scenario: The company has to bid
for contracts based on tenders opened by the government
departments. Upon successful technical evaluation of various
bidders, the lowest bid is awarded the contract. The company
faces intense competition from other players. The company
receives projects which majorly are of a short to medium tenure
(i.e. to be completed within maximum period of twelve to fifteen
months). Apart from this, moderate economic growth during the
last three years is also having a negative bearing on the
construction sector, which may also hinder the growth of the
company.
Established in 2009, Aditya Arav Dev Construction Co. Pvt. Ltd.
(AADCCPL) is engaged in construction activity in Jharkhand.
AADDCCPL secures all its contracts through tender driven open
bidding process from Drinking Water and Sanitation Department
(Government of Jharkhand) and E.C. Railway (Sonpur). The company
is managed by two of its promoters Mr. Laxman Singh and Mrs.
Meena Devi who are having more than five years of experience in
construction business.
AJAI BUILDERS: CARE Lowers Rating on INR2.47cr LT Loan to B+
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ajai Builders (ABS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 2.47 CARE B+; Stable; Issuer Not
Facilities Cooperating; Revised from
CARE BB-; Stable on the basis
of best available information
Short-term bank 15.00 CARE A4 Reaffirmed on the basis
Facilities of best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from ABS to monitor the
rating(s) vide e-mail communications/letters dated December 11,
2018, October 10, 2018, October 5, 2018, September 20, 2018, etc.
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Ajai
Builders facilities will now be denoted as CARE B+ Outlook:
Stable/CARE A4; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating has been revised by taking into account non-
availability of information and no due-diligence conducted due to
non-cooperation by Ajai Builders with CARE'S efforts to undertake
a review of the rating outstanding. CARE views information
availability risk as a key factor in its assessment of credit
risk.
The rating of Ajai builders continued to be constrained by modest
scale of operation, geographical and customer concentration risk,
constitution of firm being a proprietorship and exposure of
tender driven nature of business with intense competition faced
by firm. However, rating continues to take comfort from moderate
financial risk profile and moderate order book. The rating
further draw comfort from experienced proprietors.
Detailed description of the key rating drivers
Credit Risk Assessment
Key Rating Weakness
Modest Scale of operations: ABS's total operating income stood
modest with total operating income and gross cash accruals of INR
49.74 crore and INR 3.11 crore in FY17. Further, the firm has
achieved TOI of INR 22.50 crore during 7MFY18 (refers to the
period April 1 to October 31, based on provisional results). The
ability of the company to scale up to larger-sized contracts
having better operating margins is constrained by its
comparatively low capital base of INR4.84 crore as on March 31,
2017 (FY refers to the period April 1 to March 31; based on
unaudited results). The modest scale of operations in a
fragmented industry limits the pricing power and benefits of
economies of scale.
Geographical and client concentration risks: The two major
clients were, i.e, Public Works Department (PWD), Unnao District
of Uttar Pradesh. Furthermore, the order book of the firm
remained concentrated to single state i.e. Uttar Pradesh due to
which, the firm is exposed to any unfavorable changes in the
government policies in that region as well as regional
disturbances.
Constitution of the entity being a proprietorship firm: ABS's
constitution as a proprietorship firm has the inherent risk of
possibility of withdrawal of the proprietor's capital at
the time of personal contingency and firm being dissolved upon
the death/retirement/insolvency of partner. Moreover,
proprietorship firms have restricted access to external borrowing
as credit worthiness of partners would be the key factors
affecting credit decision for the lenders.
Highly competitive industry and risks associated with tender-
based orders: ABS faces direct competition from various organized
and unorganized players in the market. There are number of small
and regional players catering to the same market which has
limited the bargaining power of the firm and therefore has a
bearing on its margins. Furthermore, the firm majorly undertakes
government projects, which are awarded through the tender-based
system. The firm is exposed to the risk associated with the
tender-based business, which is characterized by intense
competition. The growth of the business depends on its ability to
successfully bid for the tenders and emerge as the lowest bidder.
This apart, any changes in the government policy or government
spending on projects are likely to affect the revenues and
profits of the firm.
Key Rating Strengths
Established proprietor in the civil construction industry:
Currently, the firm is being managed by Mr. Ajay Singh
(proprietor). He has more than a decade of experience in the
construction industry through his association with the firm
(established in 2001 as a partnership firm).
Moderate profitability margin and capital structure: The
profitability margins of the firm is directly associated with the
type of contract. The profitability margins of the firm stood at
moderate level marked by PBILDT and PAT margins of around 7% and
4.25% respectively in FY17. The capital structure mainly
comprises of working capital borrowings and small term loans for
equipment and vehicles. The capital structure stood moderate
marked by overall gearing ratio of the firm of 1.20x as on March
31st 2016, Further, the coverage indicators of the firm also
stood moderate marked by interest coverage ratio and total debt
to GCA of 12.89x
and 1.86x for FY17.
Moderate operating cycle: The firm is engaged in civil
construction of road and registered as class-II contractors with
Public Works Department. The executions of contracts are based on
performance bank guarantee linked and the realization later on
happens in stages. The firm's customers are companies, institutes
and government departments in Uttar Pradesh which have longer
payment periods attributable to varying inspection and approval
timelines. The firm raises bill on percent completion basis and
receives nearly 80%-90% of the payment within 60 days and
remaining is kept as retention money which is normally released
after the project completion. The firm executes the inventory at
the site resulting in minimal inventory holding. Further, the
firm receives creditor period of around 30-45 days to pay its
creditors due as defined in contracts.
Lucknow-based (Uttar Pradesh) ABS is a proprietorship concern
managed by Mr. Ajai Singh, proprietor. The firm has succeeded an
erstwhile partnership firm established in 2001. ABS is engaged in
civil construction works i.e. construction of roads and other
civil construction work.
AJAY HIRALAL: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ajay Hiralal
Thakur'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 actions are:
-- INR25 mil. Fund-based limits migrated to Non-Cooperating
Category with IND BB (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR30 mil. Non-fund-based limits migrated to Non-Cooperating
Category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 20, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Founded in 2009, Ajay Hiralal Thakur is a civil contractor. In
2012, AHT became a Class A contractor, thereby becoming eligible
for undertaking direct contract works. It has been participating
in tenders floated by government departments in Gujarat and Daman
and Diu. It undertakes road construction and repairs. Since FY16,
AHT has been executing private construction projects, including
industrial construction works.
ANANDESHWAR RICE: CARE Lowers Rating on INR6cr Loan to B
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Anandeshwar Rice Industries (ARI) as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE B; Stable Issuer Not
Facilities Cooperating; Revised from
CARE B+; Positive on the
basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from ARI to monitor the
rating(s) vide e-mail communications/letters dated December 11,
2018, October 10 ,2018, October 5, 2018, September 20, 2018,
September 13, 2018, etc. and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided
the requisite information for monitoring the ratings. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Anandeshwar rice industries facilities will now be
denoted as CARE B Outlook:Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating has been revised by taking into account non-
availability of information and no due-diligence conducted due to
non-cooperation by Anandeshwar rice industries with CARE'S
efforts to undertake a review of the rating outstanding.
CARE views information availability risk as a key factor in its
assessment of credit risk.
The ratings assigned to the bank facilities of Anandeshwar Rice
Industries (ARI) primarily constrained on account of modest scale
of operations with financial risk profile marked by leveraged
capital structure, stressed liquidity position and weak debt
coverage indicators. The rating is, further, constrained on
account of seasonality associated with agro commodities, its
presence in highly fragmented and government regulated industry
and its constitution as a partnership firm. The rating, however,
draws comfort from the experienced partner in the agro industry
as well as group support.
Detailed description of the key rating drivers
Credit Risk Assessment
Key Rating Weakness
Modest scale of operation, leveraged capital structure and
stressed liquidity position: The scale of operations of the
company stood small marked by TOI of INR36.56 crore in
FY17(refers to the period April 1 to March 31). Furthermore, the
company's net worth base was modest at INR1.72 crore as on March
31, 2017. The small scale limits the company's financial
flexibility in times of stress and deprives it from scale
benefits. Further, during FY16 (based on unaudited results), the
company achieved sales amounting to INR16.67 crore witnessing a
growth of 32%. The capital structure of the firm stood highly
leveraged marked with an overall gearing of 4.25 times as on
March 31, 2017. The debt service coverage indicators of the firm
stood weak with total debt to GCA at 11.87 times and interest
coverage ratio at 2.40 times for FY17. The business of the firm
is working capital intensive nature of operations marked by high
utilization level. Due to higher creditors, Current ratio and
Quick ratio stood at 0.88 times and 0.28 times respectively as on
March 31, 2017.
Seasonality associated with agro commodities and Presence in
highly fragmented and government regulated industry: As the firm
is engaged in the business of trading and processing of
agriculture commodities, the prices of agriculture commodities
remained fluctuating and depend on production yield demand of the
commodities and vagaries of weather. Hence, profitability of the
firm is exposed to vulnerability in prices of agriculture
commodities. The rice milling industry is characterized by
limited value addition, highly fragmented and competitive in
nature as evident by the presence of numerous unorganized and few
organized players. Further, the industry is characterized by high
degree of government control both in procurement and sales for
rice. Government of India (GoI) decides the Minimum Support Price
(MSP) payable to farmers and also procures rice under the levy
route from rice mills.
Key Rating Strengths
Experienced partner in agro industry as well as group support:
Mr. Anand Kumar, Mr. Chandra Prakash Gupta and Mr. Ritesh Kumar,
Partners has more than two decades of experience in agro industry
and looks after purchase, production and marketing affairs
respectively of the firm. Mr. Salil Kumar Gupta has more a decade
of experience in the agro industry and looks after accounts &
finance affairs of the firm. The partners of the firm are also
promoting Anandeshwar Trading Company, Prakash Udyog, Jagdamba
Trading Company and Hanuman Rice Mill, which are engaged in the
same line of business. With the long-standing presence of the
partners in the industry, the partners have established
relationship with customers as well as suppliers.
Fatehpur (Uttar Pradesh) based Anandeshwar Rice Industries (ARI)
was formed in February 2016. The commercial operations started
from February 2016. The firm is engaged in the processing of
paddy.
B. ONE BUSINESS: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated B. One Business
House Private Limited's Long-Term Issuer Rating of 'IND BB+' to
the non-cooperating category. The issuer did not participate in
the rating exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using these ratings. The rating
will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR225 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating;
-- INR5 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR165 mil. Term loan due March 2026 migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 1, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
B. One Business House was incorporated in October 2012 and
started its commercial operations in April 2013. The company
exports frozen shrimp mainly to Far East countries, Middle East
and North America. It is registered with Marine Products Export
Development Authority.
BISWAPITA COLD: CARE Lowers Rating on INR6.31cr LT Loan to 'B'
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Biswapita Cold Storage Private Limited (BCSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.31 CARE B; Stable; Issuer not
Facilities cooperating; Revised from
CARE B+; Stable based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BCSPL to monitor the
ratings vide letters/emails communications dated October 5, 2018,
October 15, 2018, November 9, 2018 and December 17, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the entity has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the ratings on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at fair ratings. The ratings on Biswapita
Cold Storage Private Limited's bank facilities will now be
denoted as CARE B; Stable; ISSUER NOT COOPERATING. However,
banker could not be contacted.
Users of these rating (including investors, lenders and the
public at large) are hence requested to exercise caution while
using the above ratings.
The rating takes into account its small scale of operations,
moderate capital structure with moderate debt coverage
indicators, regulated nature of industry, seasonality of business
with susceptibility to vagaries of nature, risk of delinquency in
loans extended to farmers and competition from other players. The
ratings, however, derive strength from its experienced promoters
with long track record of operations and proximity to potato
growing area. The ability of the company to increase the scale
of operations with improvement in profitability margins and to
manage working capital effectively will be the key rating
sensitivities.
Detailed description of the key rating drivers
At the time of last rating in January 12, 2018, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses
Small scale of operations: BCSPL is a small player in the cold
storage industry marked by total operating income of INR2.62
crore (INR2.46 crore in FY16) with a PAT of INR0.05 crore
(INR0.04 crore in FY16) in FY17. Regulated nature of business In
West Bengal, the basic rental rate for cold storage operations is
regulated by the state government through West Bengal State
Marketing Board. The rent of these cold storages is decided by
taking into account political considerations, not economic
viability. Due to severe government intervention, the cold
storage facility providers cannot enhance rental charge
commensurate with increased power tariff and labour charge.
Seasonality of business with susceptibility to vagaries of nature
BCSPL's operation is seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of
February and lasts till March. Additionally, with potatoes having
a perceivable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period from December to January.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent
on the basis of quantity stored and the production of potato is
highly dependent on vagaries of nature.
Risk of delinquency in loans extended to farmers: Against the
pledge of cold storage receipts, BCSPL provides interest bearing
advances to the farmers & traders. Before the closure of the
season in November, the farmers & traders are required to clear
their outstanding dues with the interest. In view of this, there
exists a risk of delinquency in loans extended, in case of
downward correction in potato or other stored goods prices, as
all such goods are agro commodities. Moderate capital structure
with moderate debt coverage indicators The capital structure of
the company was moderate with overall gearing ratio of 2.39x
(FY16: 3.51x) as on March 31, 2017. However, overall gearing
ratio has improved in FY17 as compared to FY16 due to lower debt
level. Moreover, BCSPL's current ratio was below unity at 0.94x
as on March 31, 2017. Further the debt coverage indicators also
remained moderate marked by interest coverage of 1.67x (FY16:
1.57x) and total debt to GCA of 11.47x (FY16: 19.39x) in FY17.
Improvement in total debt to GCA was on account of lower debt
level.
Competition from other local players: In spite of being capital
intensive, the entry barrier for new cold storage is low, backed
by capital subsidy schemes of the government. As a result, the
potato storage business in the region has become competitive,
forcing cold storage owners to lure farmers by providing them
interest bearing advances against stored potatoes which augments
the business risk profile of the companies involved in the trade.
Key Rating Strengths
Experienced promoters with long track record of operations: Seikh
Khalilur Rahaman (aged about 73 years), possesses over four
decades of experience in the cold storage industry and looks
after the overall management of the company. Seikh Tamijuddin
Khan (aged about 61 years) has also more than three decades of
experience in the same line of business. They are further
supported by other two directors namely, Seikh Jiyayur Rahaman
Khan (aged about 38 years) and Mr. Seikh Iktiyararuddin Khan
(aged about 32 years), along with a team of experienced
professionals. Furthermore, BCSPL commenced commercial operation
since February 2009 and accordingly has a long track record of
operations.
Proximity to potato growing area: BCSPL is located in the potato
growing belt of the Paschim Medinipore district of West Bengal,
having a large network of potato growers along with potato
traders, thereby making it suitable for the farmers and traders
in terms of transportation and connectivity and ensures company's
higher level of capacity utilization.
Biswapita Cold Storage Pvt Ltd (BCSPL) was incorporated in 2008
to set up a cold storage facility with a storage capacity of
13,500 Metric Tonnes in Paschim Medinipore, West Bengal. Since
its inception, the company has been engaged in the business of
providing cold storage facility primarily for potatoes to
farmers. Besides providing cold storage facility, the company
also provides interest bearing advances to farmers for their
agricultural activities against the receipts of potato stored.
CHETAN ALLOYS: CARE Maintains B+ Rating in Not Cooperating
----------------------------------------------------------
CARE had, vide its press release dated October 13, 2017, placed
the rating(s) of Chetan Alloys Private Limited (CAPL) under the
'issuer non-cooperating' category as CAPL had failed to provide
information for monitoring of the rating for the rating exercise
as agreed to in its Rating Agreement. CAPL continues to be non-
cooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated
December 14, 2018, January 2, 2019, January 3, 2019 and numerous
phone calls. However, despite CARE's repeated requests, the
company has not provided the requisite information for monitoring
the ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 10.00 CARE B+; Issuer not cooperating;
Facilities Based on best available
information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account, CAPL's fluctuating scale of
operations, moderate profit margins, leveraged capital structure,
weak debt coverage indicators, modest liquidity position and
susceptibility of CAPL's Presence in highly competitive metal
industry and susceptibility to cyclicality of the metal industry.
It also takes into account healthy experience of directors and
strong relationships with customers and suppliers.
Detailed description of the key rating drivers
At the time of last rating on October 13, 2017, the following
were the rating strengths and weaknesses (Updated for the
information available from Registrar of Companies):
Key rating weaknesses
Fluctuating scale of operations and moderate profit margins
Total Operating Income (TOI) has improved over previous year and
stood at INR 30.78 crore during FY18 as against INR 12.93 crore
during FY17. However, dueing FY16 it stood at INR 22.30 crore.
Profit margins have remained moderate and dipped in FY18, marked
by PBILDT and PAT margin of 4.21% and 0.49% respectively during
FY18 as against healthy margins of 26.41% and 15.80% during
FY17(25.12% and 18.62% during FY16).
Leveraged capital structure and weak debt coverage indicators:
As on March 31, 2018, capital structure stood leveraged marked by
overall gearing ratio of 2.12x as against 2.29x as on March 31,
2017.(1.85x as on March 31, 2016). Further debt coverage
indicators stood weak marked by total debt to GCA ratio which has
deteriorated and stood at 60.30 years during FY18 as against 4.62
years during FY17(FY16:2.41 years). Further Interest coverage
ratio has deteriorated and stood at 1.13x as against 2.49x during
FY17 (FY16: 3.87x).
Modest liquidity
As on March 31, 2018, Liquidity stood modest marked by moderation
in current ratio and quick ratio to 1.84x and 1.68x respectively,
as against 4.31x as on March 31, 2017. Working capital cycle
stood elongated at 151 days during FY18. Cash flow from operating
activities turned positive but stood modest at INR 1.54 crore
during FY18. Cash and bank balance has remained in the same line
as previous year and stood modest at INR 0.07 crore as on
March 31, 2018 as against INR0.06 crore as on March 31, 2017.
Presence in highly competitive metal industry: CAPL operates in
highly competitive and open market of metal industry marked by
large number of medium sized players. The industry is
characterized by low entry barrier due to negligible government
policy restrictions, no inherent resource requirement constraints
and easy access to customers and supplier. Also, the presence of
big sized players with established marketing & distribution
network results into intense competition in the industry.
Susceptible to cyclicality of the metal industry: Prospects of
the metal industry are strongly co-related to economic cycles and
sensitive to trends of various industries such as automotive,
construction, infrastructure, cement, etc. which are the key
consumers of metal products. These key user industries in turn
depend on macroeconomic factors, such as consumer confidence,
employment rates, interest rates, etc. in which, they sell their
products. Downturns in these economies affect the metal industry
which may lead to decrease in metal prices putting pressure on
the entire value chain.
Key Rating Strengths
Experienced promoters and healthy relationship with customers and
suppliers: Mr. Chetan Maheshwari and Mr. Satish Maheshwari are
well-experienced in metal industry and are responsible for entire
business operations for the company. Also all the promoters
maintain healthy relationship with its customer and suppliers and
capitalize their experience in maintaining the same.
Chetan Alloys Private Limited (CAPL) was incorporated in May 2011
by Mr.Chetan Maheshwari and Satish Maheshwari and commercial
operations commenced from October 2012. Business of group entity,
ShekharImpex, where Mr.Sureshbhai Maheshwari was proprietor, was
transferred to CAPL in 2011. CAPL has its Head office in Delhi
and Branch office at Jamnagar. It deals in the scrap products of
ferrous metals and non-ferrous metals like aluminum, bronze,
zinc, titanium etc. CAPL obtains sales orders from its customers
and procures the products from prime suppliers of India.
FIVEBRO INTERNATIONAL: Ind-Ra Lowers Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Fivebro
International Private Limited's (FIPL) Long-Term Issuer Rating to
'IND D' from 'IND C' while migrating it to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR8.6 mil. Term loan (Long-term) March 31, 2019 downgraded
and migrated to non-cooperating category with IND D (ISSUER
NOT COOPERATING) rating;
-- INR130 mil. Fund-based working capital limits (Long-
term/Short-term) downgraded and migrated to non-cooperating
category with IND D (ISSUER NOT COOPERATING) rating;
-- INR120 mil. Non-fund-based letter of credit limits (Short-
term) downgraded and migrated to non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating; and
-- INR30 mil. Non-fund-based bank guarantee limits (Short-term)
downgraded and migrated to non-cooperating category 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 the delays in debt servicing by FIPL for
more than 30 days due to a tight liquidity position.
The ratings have been migrated to the non-cooperating category as
the company did not provide Ind-Ra with information related to
its business and financial profiles.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months
would be positive for the ratings.
COMPANY PROFILE
Incorporated in 2002 in Gujarat, FIPL is involved in the trading
of water treatment components such as pumps, motors, valves and
membranes. The company has 11 offices and nine warehouses across
India. FIPL is promoted by Mr. Nishit Doshi and his family, who
have almost three decades of experience in the same line of
business.
GOLDEN RETREATS: CARE Moves B+ Rating to Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Golden
Retreats Private Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.35 CARE B+; Stable; Issuer not
Facilities cooperating; based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Golden Retreats Private
Limited to monitor the rating vide letters/e-mails communications
dated Oct. 4, 2018, Oct. 10, 2018, Nov. 8, 2018, Dec. 17, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the entity has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the ratings on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at fair ratings. The rating on Golden
Retreats Private Limited's bank facilities will now be denoted as
CARE B+; Stable ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account its project implementation risk,
seasonality associated with hotel industry, highly competitive
and fragmented nature of the industry and capital intensive
nature of operation. However, the aforesaid constraints are
partially offset by its experienced promoters and locational
advantage of the hotel.
Detailed description of the key rating drivers
At the time of last rating in December 21, 2017 the following
were the rating strengths and weaknesses:
Key Rating Weakness
Project implementation risk: GRPL is engaged in the construction
of four star hotel in Murshidabad, West Bengal with an aggregate
project cost of INR14.45 crore, which is proposed to be financed
by way of promoter's contribution of INR6.35 crore and term loan
of INR8.10 crore. The company has already invested INR1.91 crore
towards land & site development, building etc. till November 30,
2017 which is met entirely through promoter's contribution. The
project is expected to be operational from July, 2019.
Seasonality associated with hotel industry: The demand for hotel
and hospitality sector has direct relation to the overall health
of economy. The Indian hotel industry normally experiences high
demand during April to November month, mainly on account of
summer vacations and marriage season in the state. However, this
trend is seeing a change over the recent few years. Hotels have
introduced various offerings to improve performance (occupancy)
during the lean months. These include targeting the conferencing
segment and offering lucrative packages during the lean period.
Highly competitive and fragmented nature of the industry: The
Indian hotel industry is highly fragmented in nature with
presence of large number of organized and unorganized players
spread across various regions. Further, the hotel industry is
region-based and is highly sensitive to the untoward events such
as slowdown in the economy coupled with the slew of militant
attacks which have had an adverse impact on the hotel industry.
Cyclical nature of the hotel industry and increasing competition
from already established hospitality addresses in and around
Murshidabad district may impact the performance of GRPL.
Capital intensive nature of operation: The hospitality business
is extremely capital intensive in nature as a very high amount of
investment is required to get the requisite infrastructure in
place.
Key Rating Strengths
Experienced promoters: Mr. Debosree Das, Mr. Himadri Das and Mr.
Niladri Das are the directors of GRPL and looks after the overall
management of the company. They all are having more than two
decades of experience in the hotel industry and are ably
supported by a team of experienced professional who has rich
experience in the same line of business.
Locational advantage of the hotel: The proposed hotel is
strategically located having access to all forms of logistics
thereby enhancing its acceptability amongst the likely clientele
of the hotel. The Murshidabad district, being centrally located
in the state capital, and one of main tourism as well as business
destination of the state of West Bengal, is well connected by
road. The surrounding areas are renowned for natural beauty,
which leading to envisaged regular occupancy by the business, as
well as, leisure travelers.
Incorporated in March 2010, Golden Retreats Private Limited is
engaged in setting up a four star hotel in Murshidabad, West
Bengal. The proposed hotel will be spread over 0.52 acre, and is
expected to comprise of 43 furnished rooms (i.e. presidential
suite, super delux room and delux room), restaurants, spa,
Conference Hall, Swimming Pool, mini-theatre etc. The project is
estimated to be set up at a cost of INR14.45 crore, which is
proposed to be financed by way of promoter's contribution of
INR6.35 crore and term loan of INR8.10 crore. The company has
already invested INR1.91 crore towards land & site development,
building etc. till November 30, 2017 which is met entirely
through promoter's contribution. The project is expected to be
operational from July, 2019. Mr. Debosree Das (aged, 71 years),
having more than two decades of experience in the hotel industry,
looks after the day to day operations of the company. He is
supported by other directors Mr. Himadri Das (aged, 44 years) and
Mr. Niladri Das (aged, 47 years) and a team of experienced
professionals.
INFINITY INFRATECH: CARE Maintains B+ Rating in Not Cooperating
---------------------------------------------------------------
CARE had, vide its press release dated September 12, 2017, placed
the rating(s) of Infinity Infratech (IIT), under the 'issuer non-
cooperating' category as IIT had failed to provide information
for monitoring of the rating for the rating exercise as agreed to
in its Rating Agreement. IIT continues to be non-cooperative
despite repeated requests for submission of information through
e-mails dated July 20, 2018, August 9, 2018, November 12, 2018,
December 10, 2018, January 2, 2019 and January 8, 2019 and
numerous phone calls. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.91 CARE B+; Issuer Not Cooperating;
Facilities
Short-term Bank
Facilities 0.60 CARE A4; Issuer Not Cooperating;
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on September 12, 2017, the following
were the rating strengths and weaknesses:
Key Rating Weaknesses
Proprietorship nature of constitution: The constitution as a
proprietorship firm restricts IIT's overall financial flexibility
in terms of limited access to external funds for any future
expansion plans. Furthermore, there is inherent risk of
possibility of withdrawal of capital and closure of the firm in
case of insolvency of the proprietor.
Fluctuating scale of operations: The total operating income (TOI)
of IIT during FY16 (refers to the period April 1 to March 31)has
reached to INR17.26 crore which shows increase of almost 3 fold
as compared with FY15 while TOI during FY15 was INR6.16 crore
which had declined by 14.80% as compared with FY14.
Declining profit margins: PBILDT margin of IIT has declined to
12.35% during FY16 as compared with 24.75% during FY15. This
decline was mainly due to increase in material cost. Despite
decline in operating margins, the PAT margin decreased by 62 bps
during FY16 and remained at 2.99% (3.61% during FY15).
Leveraged capital structure and moderate debt coverage
indicators:
The capital structure of IIT although improved substantially
stood leveraged marked by an overall gearing of 2.03 times as on
March 31, 2016 as against 6.81 times as on March 31, 2015. The
debt coverage indicators remained moderate marked by total debt
to GCA of 3.49 times [FY15: 5.36 years] and interest coverage
ratio of 4.47 times [FY15: 6.93 times] in FY16 due to healthy
operating margins but leveraged capital structure.
Working capital intensive nature of operations: The operations of
IIT are working capital intensive in nature as marked by current
ratio and quick ratio at 1.15 times and 1.12 times respectively
as on March 31, 2016. Its cash credit limit was utilized at
around 85% over the past 12 months ended March 31, 2016. The firm
had an operating cycle of 18 days in FY16. The cash flow from
operations remained low at INR2.00 crore during FY16 as against
negative INR0.55 crore during FY15. Operates in the fragmented
and unorganized sector characterized by environmental issues
associated with stone crushing.
IIT predominantly operates in the unorganized and fragmented
sector, which is marked by severe price undercutting especially
among the small players leading to intense competition. Also, the
stone crushing industry is perceived to be a highly polluting
industry both in terms of noise pollution and air pollution and
also unscrupulous mining activities associated with the stone
crushing industry.
Risk inherent due to linkage with the real estate sector which is
cyclical in nature coupled with low entry barriers: IIT supplies
to the construction and real estate sector mainly in Gujarat,
Maharashtra and Dadra Nagar & Haveli, the demand for which is
linked to the economic cycles. Furthermore, due to low entry
barriers the competition gets intensified, which might put
pressure on profitability of the existing as well as new players.
Key Rating Strengths
Experienced proprietor and established relationship with
customers and suppliers: Mr Pratik Desai, the proprietor, aged 29
years is B.Tech by qualification. Mr Pratik has an experience of
6 years in the stone aggregate and concrete pipe industry. He has
well established relationship with the customers and suppliers.
Vapi-based (Gujarat), IIT was established by the proprietor, Mr
Pratik Desai in 2010. The firm is engaged mainly in stone
crushing activity and manufacturing of RCC (Reinforced Cement
Concrete) Hume pipes and service tenders of government in civil
projects. The proprietor owns a quarry from which stone is
extracted and then extracted material is crushed and transformed
in the form of various stones and artificial crushed sand. IIT
owns two plants for stone crushing in Karajgam, located near Vapi
(Gujarat). The installed capacity was of 9.6 lakh stones per
annum as on March 31, 2016. The major customers of IIT are
located in Gujarat, Maharashtra and Dadra & Nagar Haveli.
Status of non-cooperation with previous CRA: CRISIL has suspended
rating assigned to the bank facilities of IIT vide press release
dated August, 2016 on account of non-cooperation by IIT with
CRISIL's efforts to undertake a review of the rating outstanding.
INFRASTRUCTURE LEASING: Faces Overseas Bond Payment Due Jan. 25
---------------------------------------------------------------
Denise Wee at Bloomberg News reports that Infrastructure Leasing
& Financial Services Ltd., which sent a shock through Indian
financial markets last year when it defaulted on debt, faces a
much-awaited coupon payment due Jan. 25 on overseas bonds.
The so-called dim sum bonds, or offshore yuan-denominated bonds,
are guaranteed by IL&FS Transportation Networks Ltd., a unit of
IL&FS, which has already defaulted on interest payments due on
five rupee-denominated bonds, Bloomberg relates citing a Dec. 31
filing. The company must pay a CNY37.5 million ($5.5 million)
coupon on the CNY1 billion outstanding note issued by a special
purpose entity, according to Bloomberg-compiled data.
India's government seized control of the non-bank lender last
year, and pledged to avoid more nonpayments in October. But IL&FS
has continued to miss payments on onshore debt. The troubled firm
is pursuing a sale of assets but there are doubts on how quickly
any relief will come, Bloomberg says.
"The only way that IL&FS dim sum bondholders may get paid is if
there is a coupon held in the reserve account," Bloomberg quotes
Mihir Chandra, head analyst at fixed income finance firm SC Lowy,
as saying.
Bloomberg notes that the prospectus for the Dim Sum bonds, which
were sold in January 2018 and mature in 2021, stipulates that the
issuer must keep a yuan-denominated debt service reserve account
and ensure that the amount in that account isn't less than the
interest due on all notes outstanding on succeeding interest
payment date.
The dim sum bonds, which were quoted at 47.4 points on Jan. 18,
are pricing an "optimistic outcome," and a lot needs to go right
for bondholders to break even at those levels, according to
Chandra, Bloomberg relays.
One of the key assets linked to the dim sum bond is a 49 percent
stake in Chongqing Yuhe Expressway Co., which IL&FS
Transportation Networks acquired through a subsidiary in 2011,
Bloomberg discloses citing the dim sum bond prospectus. But that
stake isn't held directly by the issuer and selling assets and
moving money out of China may be challenging.
"The primary way for dim sum bondholders to recover value is
through the sale of their stake in the Yuhe Expressway in China,"
Chandra, as cited by Bloomberg, said. "But that's easier said
than done."
About IL& FS
Infrastructure Leasing & Financial Services Limited (IL&FS)
operates as an infrastructure development and finance company in
India. It focuses on the development and commercialization of
infrastructure projects, and creation of value added financial
services. The company operates in Financial Services,
Infrastructure Services, and Others segments. Its Financial
Services segment engages in the commercialization of
infrastructure; investment banking, including corporate finance,
advisory, capital market, and other financial services; and
securities trading, venture capital, and trusteeship operations.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 3, 2018, the Indian Express said that the government on
Oct. 1 stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a
series of its debt payments over the last one month. This was
said to be an attempt to restore the confidence of financial
markets in the credibility and solvency of the infrastructure
financing and development group.
JAIN SARVODAYA: Ind-Ra Moves D Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jain Sarvodaya
Vidhya Gyanpith Samiti's bank loans rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR1.041 bil. Term loans (long-term) June 30, 2026 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 17, 2018. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.
COMPANY PROFILE
Registered under Madhya Pradesh Societies Registration Adhiniyam
1973, Jain Sarvodaya Vidhya Gyanpith Samiti manages and operates
a 300-bed hospital in Bhopal, Madhya Pradesh.
JHARKHAND ROAD: Ind-Ra Lowers Senior Secured Rating to BB-
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the rating on
Jharkhand Road Projects Implementation Company Limited's (JRPICL)
non-convertible debentures (NCDs) and maintained it on Rating
Watch Negative (RWN) as follows:
-- INR17.300 bil. (outstanding INR16,284.40 bil) Senior,
secured, redeemable NCDs* downgraded and maintained on RWN
with IND BB- (SO)/RWN
* Details in annexure
KEY RATING DRIVERS
The rating action reflects JRPICL's request to the trustee to
desist from making further debits from the company's account for
servicing any debt obligation in light of the National Company
Law Tribunal's (NCLAT) order. The debenture holders have written
to the company stating the letter is untenable as the NCLAT order
is been misread in light of the legal opinion being received
which states that the regular principal and interest payments of
the existing debentures are not injuncted in the stay order.
However, the ambiguity in interpretation of the order may result
in inaction by the escrow bank from making payments on the due
date on January 21, 2019. Failure to honor payments on the due
date will lead a further rating downgrade to 'IND D' in line with
The Securities and Exchange Board of India's regulations, which
direct credit rating agencies to recognize defaults on the 'one
day one rupee' principle.
The management has indicated that pursuant to the NCLAT order,
they are testing each special purpose vehicle for a solvency
test. The solvency test undertaken considers the subordinated
loans provided by the sponsor - IL&FS Transportation Networks
Limited ('IND D') for its computation. While in Ind-Ra's initial
analysis these loans from the sponsors were considered fully
subordinated, the new stance of the management to consider the
same loans for testing solvency reduces the repayment capability
of the loans. Basis the update provided, Ind-Ra has revised its
analysis and adopted a consolidated approach which indicates
inability of the project to pay off both senior NCDs and
subordinated loans from the sponsor.
The project has adequate cash of INR2.21 billion in the debt
service reserve account against a stipulation of INR2.11 billion,
INR1.09 billion in major maintenance reserve account against a
stipulation of INR1.03 billion and surplus cash of INR1.28
billion.
RATING SENSITIVITIES
Ind-Ra will resolve the rating watch upon NCLAT's judgment on
legal position of the ring fencing of special purpose vehicles,
tenability of stance on consolidation of subordinated loan from
sponsors and actions undertaken by the trustees and the escrow
bank towards timely debt payment.
COMPANY PROFILE
In 2007, the government of Jharkhand (GoJ) launched Jharkhand
Accelerated Road Development Programme under a public-private
partnership framework. In February 2008, the GoJ and
Infrastructure Leasing & Financial Services Limited ('IND D')
signed a programme development agreement to improve 1,500 lane km
of selected project road corridors. The programme is being
implemented by Jharkhand Accelerated Road Development Company
Ltd.
JRPICL, which is 6.57%-owned by IL&FS and 93.43%-owned by its
subsidiary IL&FS Transportation Networks, has undertaken and
implemented five projects totalling 627 lane km: Ranchi Ring Road
(sections III, IV, V and VI), Ranchi Patratu Dam, Patratu Dam
Ramgarh, Adityapur Kandra and CKC. All these projects have
separate concession agreements with the GoJ, along with separate
escrow accounts.
KAMSA STEEL: CARE Migrates B+ Rating to Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Kamsa
Steel Private Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.00 CARE B+; Stable; Issuer not
Facilities cooperating; based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Kamsa Steel Private
Limited to monitor the rating vide letters/e-mails communications
dated Oct. 4, 2018, Oct. 10, 2018, Nov. 8, 2018, Dec. 17, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the entity has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the ratings on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at fair ratings. The rating on Kamsa
Steel Private Limited's bank facilities will now be denoted as
CARE B+; Stable ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account small scale of operations,
susceptibility to volatility in raw material prices leading to
low profitability margins, working capital intensive nature of
business, intense competition due to fragmented nature of
industry, sluggish growth in user industries and cyclicality in
the industry. The rating, however, derives strength from the
experienced promoters with long track record of operations,
strategic location of the plant and satisfactory leverage ratios
with satisfactory debt protection metrics.
Detailed description of the key rating drivers
At the time of last rating in November 27, 2017, the following
were the rating strengths and weaknesses:
Key Rating Weakness
Small size of operations: KSPL is a relatively small player in
iron and steel industry having total operating income and PAT of
INR15.18 crore and 0.11 crore in FY17. The total capital employed
was also low at around INR5.65 crore as on March 31, 2017. During
7MFY18, the company has achieved total operating income of INR
11.81crore.Small scale of operations with low net worth base
limits the credit risk profile of the company in an adverse
scenario.
Susceptibility to volatility in raw material prices leading to
low profitability margin: KSPL does not have its captive mine and
also it does not have any long-term tie-up for supply of raw
materials with any company. Since, the raw material is the major
cost driver (comprising around 64% of FY17total operating
income), prices of which are volatile in nature, the
profitability of the company is susceptible to fluctuation in raw
material prices exposing it to price volatility risk. Such
fluctuations in the raw material prices led to pressure on
profitability margins resulting in low profit margins for the
company during past years.
Working capital intensive nature of business: KSPL being a
manufacturer of MS Ingots is engaged in a working capital
intensive nature of business marked by 96% utilization of cash
credit limit during the 12 months ended November, 2018.
Intense competition due to fragmented nature of the industry:
KSPL is engaged in the manufacturing of MS. Ingots, which is
primarily dominated by large players and characterized by high
fragmentation and competition due to the presence of numerous
players in India owing to relatively low entry barriers. High
competitive pressure limits the pricing flexibility of the
industry participants which induces pressure on profitability.
Sluggish growth in user industries and cyclicality in the
industry: The fortunes of companies like KSPL from the iron &
steel industry are heavily dependent on the automotive,
engineering and infrastructure industries. Steel consumption and,
in turn, production mainly depends upon the economic activities
in the country. Construction and infrastructure sectors drive the
consumption of steel. Slowdown in these sectors may lead to
decline in demand of steel. Furthermore, all these industries are
susceptible to economic scenarios and are cyclical in nature.
Key Rating Strengths
KSPL is managed by Mr. Manoj Kumar Sharma (Promoter and MD) and
Mr. Pawan Kumar Kadwashra (Director) having about two decades of
experience in the steel industry and looks after the production
function of the company. Further, the company started its
operation since 1999 and accordingly has a satisfactory track
record of operation of almost two decades.
Strategic location of the plant: KSPL's plant is located at
Jamshedpur, Jharkhand which is in the vicinity of steel
manufacturing companies of Jharkhand, from where KSPL procures
its raw materials. The proximity to the raw material sources
reduces the transportation cost to the company.
Satisfactory leverage ratios with satisfactory debt protection
metrics: The leverage ratios of the company were satisfactory
with debt equity ratio and overall gearing ratio being 0.26x and
0.96x, respectively, as on March 31, 2017. The interest coverage
ratio although deteriorated marginally in FY17 over FY16
however, the same being comfortable at 2.06x in FY17.
Kamsa Steel Private Limited (KSPL) was incorporated in May, 1999
by Mr. Manoj Kumar Sharma and Mr. Pawan Kumar Kadwashra. The
company is engaged in manufacturing of MS Ingots with its factory
located at Plot No.M-44(P), 4th Phase, Adityapur Industrial Area,
Gamharia,Jamshedpur - 832108.It has a current installed capacity
of 7200 MTPA (approx). Mr. Manoj Kumar Sharma (aged, 43 years)
and Mr. Pawan Kumar Kadwashra (aged, 45 years) having more than
two decades of experience in the same line of industry, looks
after the day to day operations of the company and they are ably
supported by a team of team of experienced professionals.
Liquidity
The liquidity position of the company remained moderate marked by
current ratio of 1.60x and quick ratio of 1.16x as on March 31,
2017. The cash and bank balance amounting to INR0.02 crore
remained outstanding as on March 31, 2017. The Gross cash
accruals also remained moderate at INR0.37 crore as on March 31,
2017.
KUNAL LOHACHEM: CARE Reaffirms B Rating on INR6cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Kunal Lohachem Private Limited (KLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.00 CARE B; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of KLPL continues to
take into account its small scale of operation with thin profit
margin due to trading nature of business, presence in the highly
competitive and fragmented industry, working capital intensive
nature of operation, moderate financial performance in FY18
(refers to the period April 1 to March 31) and leveraged capital
structure with weak debt protection metrics. The rating, however,
derives strength from KLPL's experienced promoters.
Growth in scale of operation with improvement in profitability
and capital structure along with effective management of working
capital are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations: KLPL is a small player in steel wire
trading segment, having an annual turnover of INR46.71 crore &
total capital employed of INR24.09 crore in FY18. The small size
deprives the company of benefits of economies of scale and
restricts the financial flexibility of the company in times of
stress.
Thin profit margin: Given the trading nature of business and
intense competition, KLPL continues to operate on a thin margin
although improved from 1.39% in FY17 to 2.16% in FY18 due to
money lending activities.
Moderate financial performance in FY18: KLPL's total operating
income fell by about 28% y-o-y to INR46.71 crore in FY18 in view
of decline in trading opportunities. The company sold only 5963
tons of HB wires in FY18 vis-Ö-vis 17644 tons in FY17. However,
the PBILDT margin improved from 1.39% in FY17 to 2.16% in FY18
due to increase in income from money lending activities. The
interest coverage ratio was stable at 1.07x in FY18 vis-Ö-vis
1.04x in FY17. Furthermore, KLPL generated cash accruals of
INR0.07 crore in FY18 (INR 0.03 crore in FY17). In 9MFY19 KLPL
reported total operating income of INR32.00 crore.
Presence in highly competitive and fragmented industry: The steel
wire trading industry is highly fragmented and competitive marked
by presence of numerous players across India. Hence the players
in the industry lacks pricing power and exposed to competition
induced pressures on profitability.
Leveraged capital structure and weak debt protection metrics: The
capital structure of the company has deteriorated from 3.74x as
on March 31, 2017 to 6.00x as on March 31, 2018 due to availment
of unsecured loan of INR10.95 crore as a result of blockage of
fund in trade receivables (INR24.29 crore as on Mar 31, 2018 vis-
Ö-vis INR7.71 crore as on Mar 31, 2017). Total debt/GCA was also
very high at 282.40x in FY18.
Working capital intensive nature of operation: As the company is
engaged in trading of various products so it has to maintain
sufficient level of inventory of all the finished goods. Further,
company need to extend higher credit period to its customers on
account of its low bargaining power owing to its small size of
operations. This led to higher gross operating cycle for the
company. The same is financed by increased level of creditors.
The working capital cycle of the company deteriorated from 55
days in FY17 to 66 days in FY18 due to increase in average
collection period from 62 days in FY17 to 111 days in FY18.
Key Rating Strengths
Experienced promoters: KLPL was promoted by Mr. Praveen Kumar
Jain (graduate), having around a decade of experience in trading
of steel products and is involved in the strategic planning and
running the day to day operations of the company. Furthermore,
KLPL commenced operations in May 1997 and accordingly, has track
record of more than two decades.
Liquidity: The company reported current ratio of 1.36x as on
March 31, 2018. The liquidity profile of KLPL continued to
remain moderate with about 90% utilization of its cash credit
limits during the last 12 months ended on December 31, 2018. The
company reported free cash & bank balance of INR 0.44 crore as on
March 31, 2018.
Kunal Lohachem Pvt. Ltd. (KLPL) incorporated in May, 1997 was
promoted by one Mr. Praveen Kumar Jain of Raipur. KLPL is engaged
in the trading of Hard Bright (H.B) wire, Galvanised Iron (G.I)
wire and MS Round bar, Barbed wire and Wire Nails. Apart from
this, the company is also engaged in job work for converting H.B
wire into G.I wires. The products sold by KLPL are largely used
in industries like power, construction, automobile, engineering,
etc. The company mainly sells its products to dealers and
retailers located in Chhattisgarh. Apart from trading and job
work activities, KLPL also undertook money lending activities,
whereby the company borrow and lend funds to outside & associate
companies and received interest (accounted for about 3.94% of
total operating income in FY18). The day-to-day affairs of the
company are looked after by one of the director i.e., Mr. P.K.
Jain.
LORDS ORIENTAL: CARE Maintains D Rating in Not Cooperating
----------------------------------------------------------
CARE had, vide its press release dated September 21, 2017, placed
the ratings of Lords Oriental Resorts Developers (Silvassa)
Private Limited (LORDSPL) under the 'issuer non-cooperating'
category as LORDSPL had failed to provide information for
monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement.
LORDSPL continues to be non-cooperative despite repeated requests
for submission of information through e-mails, phone calls and a
letter/email dated January 1, 2019, January 2, 2019, January 4,
2019 and January 7, 2019 and numerous phone calls. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information, which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 13.16 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating done on September 21, 2017, the
following were the rating strengths and weaknesses:
Key Rating Weaknesses
Ongoing delay in debt servicing: LORDSPL has been irregular in
servicing its debt obligation owing to weak liquidity position of
the company.
LORDSPL was incorporated in 2011 as a Private Limited Company by
Mr. Pushpendra Bansal, Mr. Sanjeev Gupta and Mr. Brijesh Chauhan.
The company is engaged into hospitality business and it operates
one resort, Lords Resorts Silvassa, at Silvassa which has 76
rooms of different categories. The resort has a restaurant which
can accommodate around 60 people and a coffee shop which can
accommodate around 25 people. The resort also has two banquet
halls having capacity of 500 people and 250 people respectively.
Other amenities in the resort include swimming pool, spa, health
club etc.
Status of non-cooperation with previous CRA: India Ratings has
put LORDSPL's rating under non-cooperation category vide press
release dated May 18, 2018 on account of its inability to carry
out rating in the absence of the requisite information from the
company.
MANGALAYATAN UNI: Ind-Ra Maintains 'B+' Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mangalayatan
University's bank facilities in the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND B+ (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR54.79 mil. Term loan I due on March 2020 maintained in
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR260.46 mil. Term loan II due on July 2024 maintained in
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 4, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Mangalayatan University offers undergraduate and postgraduate
courses in engineering, management, architecture, law, humanities
and others.
NORTECH POWER: CARE Hikes Rating on INR2cr LT Loan to B
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Nortech Power Projects Pvt. Ltd. (NPPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 2.00 CARE B; Stable Revised from
Facilities CARE C; ISSUER NOT COOPERATING
Short term Bank 10.00 CARE A4 Revised from CARE A4;
Facilities ISSUER NOT COOPERATING
Detailed Rationale & Key Rating Drivers
The revision in ratings assigned to NPPPL takes into account
improvement in capital structure as on March 31, 2018. However,
the ratings continues to be constrained by high average
collection period leading to working capital intensiveness of the
business, vulnerability of margins to volatile input prices,
significant exposure in group companies, deterioration in
profitability margin in FY18 (refers to the period from April 1
to March 31) and weak debt protection metrics. The above
constraints are partially offset by experienced promoters and
major clients being government departments/enterprises leading to
relatively low counterparty credit risk.
Ability of the company to secure new orders, improve
profitability margins, reduction in exposure to group companies
and efficient management of working capital are the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
High average collection period leading to working capital
intensiveness of the business: NPPPL has a high average
collection period. Average collection period (including retention
money) stood high at 404 days in FY18, leading to working capital
intensiveness of the business.
Vulnerability of margins to volatile input prices: The prices of
all hydroelectric power equipments are subject to price
fluctuation. NPPPL does not have price escalation clause in its
contracts and thus, is vulnerable to the increase in costs.
Significant exposure in group companies: NPPPL has significant
exposure to its group and associated companies. As on Mar.31,
2018, the company has an aggregate exposure of INR26.98 crore in
the form of investments and loans and advances to related parties
forming 119% of the networth as on Mar 31, 2018. This apart,
NPPPL has also extended corporate guarantee of INR246.93 crore
for the bank facilities of its group company. The present
outstanding against the same was INR77.22 crore as on Dec 31.
2018.
Deterioration in profitability margin in FY18: The total
operating income of the company moderated from INR30.42 crore in
FY17 to INR23.40 crore in FY18. The company reported operating
loss in FY18 vis-Ö-vis operating profit of INR0.43 crore in FY17.
The company reported GCA of INR0.20 crore vis-Ö-vis debt
repayment of INR2.13 crore in FY18. The shortfall in debt
repayment is being made out of liquidation of other current
assets.
Weak debt protection metrics: Total debt/GCA deteriorated from
14.48x in FY17 to 62.62x in FY18.
Key Rating Strengths
Experienced promoters: The promoters of the company, Shri Praveen
Agarwal and Shri Vineet Agarwal have over a decade of experience
in the construction industry (mainly in execution of
hydroelectric power projects).
Major clients being Govt. departments /enterprises: NPPPL has
mostly government enterprises, and/or departments as its clients
awarding the maximum contracts to the company. The major clients
being government enterprises, their creditworthiness provides
comfort against default risk to some extent. As on Nov 30, 2018,
the order book of the company stood at about INR25 crore (1.09x
of FY18 total operating income).
Improvement in capital structure: The overall gearing ratio of
the company has improved from 0.70x as on Mar 31, 2017 to 0.56x
as on Mar 31, 2018.
Liquidity: The current ratio of the company was low at 0.91x as
on Mar 31, 2018. The average utilization of the working capital
facilities for the last 12 months ended Sep 30, 2018 was ~ 91%.
The company reported free cash & bank balance of INR0.40 crore as
on March 31, 2018.
NPPPL was incorporated in January 1999 by Shri Praveen Agarwal
and Shri Vineet Agarwal. NPPPL is engaged in setting up
hydroelectric power plants and infrastructure projects in the
Eastern and North-Eastern States of India on a turnkey basis. It
has experience in setting up various mini, micro & small
hydroelectric turbo alternator sets along with other allied
equipments and control systems in remote rural areas. This apart,
NPPPL has also been awarded with the contract of improvement of
water supply.
PARADIGM TUNNELING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Paradigm
Tunneling Private Limited's (PTPL) Long-Term Issuer Rating to
'IND D' from 'IND B'. The Outlook was Stable.
The instrument-wise rating actions are:
-- INR100 mil. (increased from INR30 mil.) Fund-based working
capital limit (Long-term) downgraded with IND D rating; and
-- INR15 mil. (reduced from INR110 mil.) Non-fund based working
capital limit (Short-term) downgraded with IND D rating.
KEY RATING DRIVERS
The downgrade reflects PTPL's overutilization of the fund-based
limits for more than 30 days during the three months ended
December 2018 due to a tight liquidity position.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
Incorporated in 2013, PTPL undertakes contracts for water
drainages, tunneling, and water pipelining projects.
RK POULTRIES: Ind-Ra Migrates D Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded RK Poultries
Private Limited's Long-Term Issuer Rating to 'IND D' from 'IND
BB' while migrating the rating to the non-cooperating category.
The Outlook was Stable. 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 action is:
-- INR60 mil. Fund-based facilities (long-/short-term)
downgraded and migrated to Non-Cooperating Category with
IND D (ISSUER NOT COOPERATING) rating.
Note: Issuer did not cooperate; Based on the best available
information
KEY RATING DRIVERS
The downgrade reflects ongoing delays in debt servicing by RK
Poultries for over 30 days since November 2018 due to a tight
liquidity.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
RK Poultries was incorporated on December 21, 2015 in Kharadi,
Pune, by Mrs. Ratnamala Kunjir and Mrs. Usha Mahadev Gandhale.
The company is engaged in broiler and layer farming.
SAMRAT GEMS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Samrat Gems
Impex Pvt Ltd.'s Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR299.5 mil. Fund-based working capital limits migrated to
non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR70 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 31, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1984 by Shyamlal Sharma and Rajiv Sharma, Samrat
Gems Impex manufactures and exports readymade garments to
retailers.
SINGHAL BUSINESS: CARE Hikes Rating on INR18cr LT Loan to BB-
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Singhal Business Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 18.00 CARE BB-; Stable Revised
Facilities from CARE B+; Stable
Short-term Bank
Facilities 6.00 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The revision in the long term rating assigned to the bank
facilities of Singhal Business Private Limited is on account of
improvement in its scale of operation, operating profit, profit
after tax, and cash profit level during FY18. However, the rating
continues to remain constrained by its relatively small scale of
operation with low profitability margins, volatility in prices of
traded goods, intense competitive nature of the industry with
presence of many unorganized players, working capital intensive
nature of operation and high leverage ratio and weak debt
coverage indicators. The rating, however, continues to draw
comfort from experienced management and satisfactory track record
of operation and stable demand outlook of traded goods.
Going forward, ability of the company to increase its scale of
operation, improve profitability margins and ability to manage
working capital effectively would remain as the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Strengths
Experienced management with satisfactory track record of
operation: Singhal Business Private Limited has commenced
operations from 2010. Since its inception the company has been
engaged in the trading of Iron ore fines, coal, mill scale,
billets and other steel products business. The company has
satisfactory track record of operations. Over the years, Singhal
Business Private Limited has been able to grow over the years by
constantly improving its service. Mr. Rahul Agarwal (Director)
along with his Mr. Ram Awatar Agarwal (Director) who has around
21 years and 24 years of experience in the similar line of
business look after the day to day operation of the company. The
benefit derived from the experience directors and healthy
relation with customers and suppliers are continuing to support
the company.
Stable demand outlook of traded goods: The demand of Iron ore
fines, coal, mill scale, billets and other steel products will
increase in the medium to long term with the pick-up in the
manufacturing activities and increased thrust of GoI on the
development of iron and steel sector.
Key Rating Weaknesses
Relatively small scale of operation with low profitability
margins: The company is a relatively small player vis-a-vis other
players in trading business of iron ore, mill scale, coal,
billets and other steel products marked by its total operating
income of INR68.94 crore (INR41.30 crore in FY17) with a PAT of
INR0.35 crore (INR0.18 crore in FY17) in FY18. The total
operating income increased in FY18 on account of stable demand of
iron ore, mill scale, coal, billets and other steel products in
the market. The tangible net worth of the company was moderately
low at INR6.68 crore as on March 31, 2018. The small size
restricts the financial flexibility of the company in terms of
stress and deprives it from benefits of economies of scale. Due
to its relatively small scale of operations, the absolute profit
levels of the company also remained low. Furthermore, the
profitability margins of the company remained low marked by
PBILDT margin of 2.65% (3.46%: FY17) and PAT margin of 0.51%
(0.45%: FY17) in FY18. This apart the company has achieved sale
of INR70.87 crore during 9MFY19.
Volatility in prices of traded goods: Singhal Business Private
Limited purchases trading goods (i.e. iron ore fines, coal, mill
scale, billets and other steel products from domestic market for
stock & sale basis. Since the prices of the traded goods are
volatile in nature and it is basically determined by demand
supply situation at a particular time. Thus the company is
exposed to price volatility in the traded goods.
Intensely competitive nature of the industry with presence of
many unorganized players: Singhal Business Private Limited is
engaged in the trading of iron ore fines, coal, mill scale,
billets and other steel products which is primarily dominated by
large players and characterized by high fragmentation and
competition due to the presence of numerous players in India
owing to relatively low entry barriers. High competitive pressure
limits the pricing flexibility of the industry participants which
induces pressure on profitability.
Working capital intensive nature of business: Singhal Business
private Limited's business, being trader of iron ore fines, coal,
mill scale, billets and other steel product etc., is working
capital intensive by nature. The company maintains adequate
inventory of traded goods for timely supply to its clients
demand. This apart, the average collection period also remained
high at 80-90 days in FY16-FY18 as the company offers moderately
high credit period to its customers to attract them and retain
them on the backdrop of intense competition. The average
utilization of working capital was around 80% during the last 12
months ended December 2018.
High leverage ratios and weak debt coverage indicators: Capital
structure of the company remained leveraged as marked by overall
gearing ratio of 1.73x (1.57x as on March 31, 2017) as on
March 31, 2018. However, long term debt equity ratio was 0.20x
(0.50x as on March 31, 2017) as on March 31, 2018. The long term
debt equity and overall gearing ratio was deteriorated as on
March 31, 2018 mainly on account of availament of vehicle loan,
higher utilization of working capital limit and infusion of
unsecured loan during the year .i.e. FY18. Moreover, the debt
coverage indicators also remained moderately high with total debt
to GCA ratio of 23.61x (32.13x in FY17) in FY18. However,
interest coverage ratio remained at 1.53x in FY18.
Singhal Business Private Limited was incorporated in October
2010. The company is promoted by Mr. Rahul Agarwal and his
brother Mr. Ram Awatar Agarwal. Since its inception the company
has been engaged in trading business of iron ore, mill scale,
coal, billet and other steel products. The company recently
purchased a bauxite mine in Ambikapur, Chhattisgarh. The
registered address of the company is located at Badai Para, Giri
Chowk, Raipur, Chhattisgarh. Mr. Rahul Agarwal (Director) and Mr.
Ram Awatar Agarwal (Director) who has around 21 years and 24
years of experience respectively in trading business looks after
the day to day operations of the company.
Liquidity
The liquidity position of the company remained moderate marked by
current ratio and quick ratios of 1.24x and 1.14x, respectively,
as on March 31, 2018. The cash and bank balance amounting to
INR0.30 crore remained outstanding as on March 31, 2018. The
Gross cash accruals also remained at INR0.49 crore in FY18.
SURYA WIRES: CARE Reaffirms B+ Rating on INR10cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Surya Wires Private Limited (SWPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 10.00 CARE B+: Stable Reaffirmed
Facilities
Short term Bank 18.60 CARE A4 Reaffirmed
Facilities
Long-term/Short- 4.00 CARE B+; Stable/CARE A4
term Bank Reaffirmed
Facilities
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SWPL continue to
take into account susceptibility of profitability to volatility
in raw material prices, presence in the highly competitive and
fragmented industry, working capital intensive nature of
operations and leveraged capital structure with weak debt
protection metrics. The ratings, however, derive strength from
experienced promoters, long track record of operation and stable
financial performance in FY18 (refers to the period from April 1
to March 31).
Growth in the scale of operation with improvement in
profitability and capital structure along with effective
management of working capital are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Profitability susceptible to fluctuations in raw material price:
The major raw materials of SWPL are wire rod, the prices of which
are highly volatile. Moreover, the company does not have any long
term contracts with the suppliers for the purchase of the
aforesaid raw materials. Hence, any adverse movement in raw
material price without any corresponding movement in finished
goods price is may affect the profitability of the company.
Working capital intensive nature of operation: SWPL's operations
are working capital intensive in nature as the company need to
extend higher credit period (two months) to its clients on
account of its low bargaining power owing to its small size.
However the inventory period of SWPL improved from 116 days in
FY17 to 77 days in FY17 due to lower absolute level of finished
goods inventory. The operating cycle of the company also improved
from 162 days in FY17 to 123 days in FY18.
Presence in highly competitive and fragmented industry: The steel
wire manufacturing/trading segments are highly fragmented and
competitive marked by presence of numerous players across India.
Hence the players operating in the industry lacks pricing power
and exposed to competition induced pressures on profitability.
Leveraged capital structure and weak debt protection metrics: The
capital structure continued to remain leveraged, marked by high
overall gearing ratio at 2.96x as on March 31, 2018 as against
2.85x as on March 31, 2017. Debt to equity ratio of the company
has deteriorated from 0.56x as on March 31, 2017 to 0.95x as on
March 31, 2018 due to project loan taken of INR5.37 crore taken
from NSDC for use in skill division. Total debt/GCA continued to
remain weak although improved from 318.76x in FY17 to 48.94x in
FY18 due to improvement in gross cash accruals.
Key Rating Strengths
Experienced promoters and long track record of operation: SWPL
was promoted by Mr. S.K. Jain, having more than three decades of
experience in manufacturing of wires, ferro alloys and trading of
steel products. He looks after the day-to-day affairs of the
company with a support from other director Mr. Harsh Agarwal
(MBA, age 30 years). Moreover, SWPL commenced operations from
1983 and accordingly has a long track record of operation.
Stable in financial performance in FY18: SWPL's total operating
income increased by about 34% y-o-y to INR155.94 crore in FY18.
The increase is mainly due to increase in sale of manufactured
goods including GI Wire, HB Wire, Barbed Wire & Stay Wire from
INR59.45 crore in FY17 to INR103.77 crore in FY18. The revenue of
the company from the skill division also increased from INR 1.89
crore in FY17 to INR18.46 crore in FY18. However, PBILDT margin
declined to 3.41% in FY18 from 4.83% in FY17. Interest coverage
ratio remained stable at 1.07x in FY18 (1.00x in FY17). SWPL
generated cash accruals of INR0.88 crore vis-Ö-vis debt repayment
obligation of INR1.16 crore. The shortfall is met out of infusion
of unsecured loan.
In 9MFY19, SWPL reported total operating income of 125.00 crore.
Liquidity: The liquidity profile of SWPL continued to remain
moderate with current ratio below unity. The company had cash &
bank balance of INR1.90 crore as on March 31, 2018. The average
utilization of working capital facilities remained about 95%
during the last 12 months ended on Dec. 31, 2018.
Surya Wires Pvt. Ltd. (SWPL) was established in 1983 as a
proprietorship entity by Raipur based Mr. S.K. Jain. In 1989, the
erstwhile proprietorship entity was converted into a private
limited company. SWPL is engaged in manufacturing of steel
wires (G.I. wire, HB wires, Stay wire, G.I. barbed wire etc.)
along with trading of steel wires and MS bars/rounds. The
manufacturing facility of SWPL is located in Raipur with an
installed capacity of 74,000 MTPA. The products are largely
used in industries like power, construction, automobile,
engineering, etc. SWPL primarily sells its products to wire
dealers and retailers. Apart from this it also participates in
tender issued by various government entities for supply of steel
wires.
The company has also started a "Skill" division for training
students in specific skills under government initiatives like
Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Deen Dayal Upadhyaya
Grameen Kaushalya Yojana (DDUGKY), Pradhan Mantri Kaushal Kendra
(PMKK).
The day-to-day affairs of the company are looked after by Mr.
S.K. Jain, MD, with adequate support from other director Mr.
Harsh Agarwal and a team of experienced personnel.
TULSI RAM: CARE Assigns B+ Rating to INR4cr LT Loan
---------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Tulsi
Ram and Company (TRC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 4.00 CARE B+; Stable Assigned
Short-term Bank
Facilities 10.50 CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of TRC are primarily
constrained by its small and fluctuating scale of operations
coupled with low net worth base, leveraged capital structure &
weak liquidity indicators. Further, the ratings are also
constrained by risk associated with constitution of the entity
being a proprietorship firm, highly competitive industry along
with business risk associated with tender-based orders.
The ratings, however, draw comfort from experienced proprietor
coupled with moderate profitability margins and moderate
operating cycle.
Going forward; ability of the firm to increase its scale of
operations while improving its capital structure and its ability
to successfully execute projects in timely manner shall be the
key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small and fluctuating scale of operations coupled with low net
worth base: TRC is a small regional player mainly involved in
executing civil construction contracts. The ability of the firm
to scale up to larger-sized contracts having better operating
margins is constrained by its comparatively small capital base of
INR6.98 crore as on March 31, 2018 and total operating income of
INR10.48 crore in FY18 (refers to the period April 1 to
March 31). Moreover, TRC's scale of operations remained
fluctuating for the period FY16-FY18 (refers to the period
April 1 to March 31) owing to tender driven nature of business.
The small scale of operations in a competitive industry limits
the bidding capability, pricing power and benefits of economies
of scale. During 8MFY19 (refers to the period April 1 to November
30; based on provisional results), the firm has achieved the
total operating income of ~INR51.00 crore.
Leveraged capital structure & weak liquidity indicators: The
capital structure of the firm stood leveraged as marked by
overall gearing ratio which stood at 1.54x as on March 31, 2018
showing deterioration from 1.02x as on March 31, 2017 mainly on
account of increase in unsecured loans coupled with higher
utilization of working capital borrowings as on balance sheet
date. Moreover, the liquidity indicators stood weak as marked by
current and quick ratio of 0.86x and 0.73x respectively as on
March 31, 2018 and almost 95% utilization of its working capital
borrowings indicates the weak liquidity position of the firm. The
cash and bank balances stood at INR1.24 crore as on March 31,
2018.
Highly competitive industry: TRC faces direct competition from
various organized and unorganized players in the market. There
are number of small and regional players and catering to the same
market which has limited the bargaining power of the firm and has
exerted pressure on its margins. Further, the award of contracts
are tender driven and lowest bidder gets the work. Hence, going
forward, due to increasing level of competition and aggressive
bidding, the profits margins are likely to be under pressure in
the medium term.
Business risk associated with tender-based orders: The firm
majorly undertakes government projects, which are awarded
through the tender-based system. The firm is exposed to the risk
associated with the tender-based business, which is characterized
by intense competition. The growth of the business depends on its
ability to successfully bid for the tenders and emerge as the
lowest bidder. Further, any changes in the government policy or
government spending on projects are likely to affect the revenues
of the firm.
Key Rating Strengths
Experienced proprietor coupled with moderate profitability
margins: Mr. Chhatrapal Singh Yadav is a graduate by
qualification and has an accumulated experience of more than two
decades in civil construction business through his association
with this entity and look after the overall operations of the
firm. The profitability margins of the firm have remained
moderate during last three financial years (FY16-FY18) as the
profitability largely depends upon nature of contract executed.
The PBILDT margin of the firm improved and stood at 16.71% in
FY18 as against 8.12% in FY17 on account of execution of orders
with higher profitability margins. Similarly, PAT margin of the
firm stood above 5.00% in FY17 & FY18.
Moderate operating cycle: The firm has moderate operating cycle
evident from negative 71 days for FY18. The firm gives advances
to suppliers at the time of placing order for raw materials.
Further, inspection of the same is done by government department
at site. Subsequently, upon approval from concerned department;
remaining amount is paid to suppliers. Entailing the same, the
average creditor period stood around 2-3 months. Further, the
firm raises bills on monthly basis on the completion of certain
percentage of work and thereon which gets acknowledge by customer
after necessary inspection of work done. Post the inspection,
department clears the payment within a month (maximum) by
deducting certain percentage of bill raised (10% of bill amount)
in the form of retention money, which they refund after
completion of order/contract. Furthermore, there is normally a
procedural delays in relation being customers are government
departments/ bodies. The average collection period prolonged to
77 days for FY18. The firm maintains minimum inventory in the
form of raw materials at different sites for smooth execution of
contracts resulting into average inventory holding period of
around 38 days for FY18.
Tulsi Ram and Company (TRC) was established in the year 1997 as a
proprietorship firm and is currently managed by Mr. Chhatrapal
Singh Yadav. The firm is "Class A" contractor and is engaged in
civil construction works such as construction of roads, canals,
water supply works, optical fiber cable (OFC) laying works, etc.
and its related works mainly for government departments like
Public Works Department, Irrigation & Water Resources Department,
Bharat Sanchar Nigam Limited, etc. and other local government
bodies for the states of Uttar Pradesh & Madhya Pradesh. Also,
the firm is engaged in the wholesale trading of liquor in Greater
Noida, Uttar Pradesh.
UNITON INFRA: CARE Migrates B+ Rating to Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Uniton
Infra Private Limited (UIPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE B+;Stable, Issuer not
Facilities cooperating, based on best
available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from UIPL to monitor the rating
vide e-mail communications/letters dated October 1, 2018,
November 2, 2018 and December 22, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the rating. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of best available information which however,
in CARE's opinion is not sufficient to arrive at fair rating. The
rating on Uniton Infra Private Limited's bank facilities will now
be denoted as CARE B+; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on December 6, 2017, the following
were the rating strengths and weaknesses.
Key Rating Weakness
Short track record and nascent stage of operations: The company
has short track of business operations. The company was
incorporated in the year 2017 and it expected to start commercial
operations from December 2018.
Tender based nature of operations: The revenues of the firm are
dependent on the ability of the promoters to bid successfully for
the tenders and execute the same effectively. However the
promoter's long experience in the industry for more than two
decades mitigates the risk to an extent. Nevertheless, there are
numerous fragmented & unorganized players operating in the
segment which makes the civil construction space highly
competitive.
Key Rating Strengths
Experience of the promoters for more than two decades in
construction industry: UIPL is promoted by Mr. Mahesh Bigala
(Managing Director) and Mrs. Shalini Bigala (Director). The
directors are well qualified wherein Mr. Mahesh Bigala, aged 45,
is a post graduate, having experience of 20 years in construction
business. The company is likely to get benefited by its qualified
and experienced promoters.
Stable outlook of Construction Industry: The construction
industry contributes around 8% to India's Gross domestic product
(GDP). Growth in infrastructure is critical for the development
of the economy and hence, the construction sector assumes an
important role. The Government of India has undertaken several
steps for boosting the infrastructure development and revives the
investment cycle. The same has gradually resulted in increased
order inflow and movement of passive orders in existing order
book. The focus of the government on infrastructure development
is expected to translate into huge business potential for the
construction industry in the long-run. In the short to medium
term (1-3 years), projects from transportation and urban
development sector are expected to dominate the overall business
for construction companies.
Uniton Infra Private Limited (UIPL) was incorporated in the year
2017 with its registered office at Banjara Hills, Hyderabad. The
promoters of the company are Mr. Mahesh Bigala (Managing
Director) and Mrs. Shalini Bigala (Director). They have
experience of more than two decades in Construction Industry. The
company is primarily engaged in construction of buildings,
apartments and other infrastructure works. The company procures
its work orders through online tenders from Greater Hyderabad
Municipal Corporation (GHMC), Telangana.
In November 2017, the firm entered in to Joint Venture agreement
with RKI Builders Private Limited for executing the project of
GHMC with sharing ratio of 51% to RKI Builders Pvt Ltd and the
remaining 49% to UIPL. At present, the company has the project of
construction of 324 2BHK houses plus nine upper floors at Jawahar
Nagar Village in Medchal with the estimated total project cost of
INR50 crore. Till date, the company has not yet started the work
and hasn't incurred any expenses. Expected date to start the
operations of the project is December 15, 2017. In 2018, the
company is expecting the orders from Fortune Builders Private
Limited, the agreement is under process. The expected order from
Fortune Builders Pvt Ltd pertains to construction of building
flats at Munganoor, Thatti Annaram Villages and villas at Sanga
Reddy District.
=========
M A C A U
=========
STUDIO CITY: S&P Affirms BB- Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings said it has affirmed its 'BB-' issuer credit
rating on the Macau-based casino operator, Studio City Co. Ltd.
(Studio City). At the same time, S&P affirmed the 'BB-' issue
rating on senior secured notes issued by Studio City and 'B+'
issue rating on the senior unsecured notes issued by its wholly
owned finance arm Studio City Finance Ltd. (Studio City Finance).
The outlook is stable.
S&P said, "We are assigning our 'B+' issue rating to the proposed
guaranteed senior unsecured notes issued by Studio City Finance.
The notes are rated one notch below the issuer credit rating of
Studio City due to their subordination to the senior secured
notes. The issue rating is subject to our review of the final
issuance documentation.
"We affirmed the rating on Studio City because the company's debt
leverage remains high even after the debt reduction through an
IPO by its parent, Studio City International Holdings Ltd., on
the New York Stock Exchange. Studio City received about US$400
million in proceeds from the listing, which it used to partially
redeem its US$825 million senior notes maturing 2020 in December
2018. We still expect the company will remain highly leveraged,
with a ratio of debt to EBITDA that we estimate at 5.0x-6.0x in
2018 and 7.0x-8.0x in 2019. The higher debt leverage in 2019
reflects the earnest start of Studio City Phase II construction.
Nonetheless, the debt repayment should somewhat moderate the
downside risk for our credit rating on Studio City. The IPO also
opens a new source of potential financing for Studio City.
"We currently assume that the US$1.4 billion construction cost of
Studio City Phase II will be funded by debt and existing cash. It
is possible that Studio City could pursue some equity financing
for Phase II, but this is likely to be limited, given our
expectation that MCO Cotai Investments Ltd. (MCO Cotai) will not
want to dilute its shareholdings to below a majority interest.
Post-IPO and the exercise of the over-allotment options by the
underwriters, MCO Cotai owns 54% of Studio City. MCO Cotai is a
wholly owned subsidiary of Melco Resorts & Entertainment Ltd.
(Melco Resorts).
"Year-to-date results for gaming in Macau have been fairly
strong. We revised up our 2018 gross gaming revenue forecast for
Studio City by about 15% to US$1.5 billion-US$1.6 billion, on
stronger performance from the VIP segment. As the VIP segment is
less profitable, we made smaller upward revisions to our EBITDA
forecasts. For 2019, Studio City's gaming revenue is likely to
grow in line with the industry.
"We expect Studio City's termination of its VIP program starting
on Jan. 15, 2020, will have a larger impact on the company's
gaming revenue but a moderate impact on EBITDA (given the low
profit margins of the VIP business) for 2020 and beyond. For now,
we believe the rating impact from the announcement is limited.
VIP revenues represent about 40% of Studio City's casino
revenues, but about 10% of EBITDA.
"We believe Studio City remains a highly strategic subsidiary of
Melco Resorts even after the IPO, and we expect the company to
receive strong extraordinary support from the group if needed.
Our assessment of the company's strategic importance to the group
is demonstrated by Studio City's close linkage with the Melco
Resorts group's brand image, common panel of management, and
operation under Melco Resorts' gaming sub-concession."
In addition, key credit measures for Melco International
Development Ltd. (the ultimate parent of Melco Resorts Group)
have remained largely the same since the beginning of the year,
with higher shareholder distributions offsetting capital
expenditures that were lower than our expectation.
The stable outlook on Studio City reflects our expectation that
the company will improve its profitability and maintain adequate
liquidity by proactively managing debt maturities and capital
investment over the next 12 months. S&P also expects the
company's debt leverage to remain high despite debt reduction
from IPO proceeds, given large capital investments for Studio
City Phase II.
The outlook also factors in ongoing managerial support and S&P's
anticipation of extraordinary financial support from Melco
Resorts group, although Studio City's debt is nonrecourse to the
group.
S&P said, "We may lower the rating if Studio City's EBITDA
interest coverage falls below 1.3x or if liquidity deteriorates
substantially, due to weaker operating cash flows or more
aggressive capital spending on the Phase II Project than we
expect.
"We may also downgrade Studio City if the company's importance to
the Melco Resorts group diminishes or if the group credit profile
weakens.
"We may raise the rating if we raise the group credit profile of
the Melco Resorts group or if we assess Studio City as a core
entity of the group. Rating upside from potential improvement of
Studio City's stand-alone credit profile is limited over the next
12 months."
====================
N E W Z E A L A N D
====================
ROLLO'S OUTDOOR: To Shut Down Business After 47 Years
-----------------------------------------------------
Tim O'Connell at Stuff.co.nz reports that online competition and
tough retail environment has prompted the closure of a well-known
Nelson family camping business.
Rollo's Outdoor Centre will close its doors on Jan. 26, ending
more than 45 years of providing camping and outdoors equipment to
the region, Stuff discloses.
Stuff relates that the closing down sale signs have been up this
week, with customers given a final few days to visit the store
before the doors shut on a longtime family legacy.
"Everyone has been saying that it's really sad and we're like an
institution," Stuff quotes owner Debbie McDowell as saying this
week.
Ms. McDowell's father Bruce Rollo, who passed away last year,
began the business in 1972, selling camping gear and locksmith
services.
Canvas tents and camping furniture were the most common items
sold, as were Bruce's self-made whitebait nets and imported parts
for his collection of kerosene lamps which he then sold around
the country, Stuff notes.
"We grew up with dad, just helping him out in the shop - it's
just been a way of life - we haven't had summers off so we're
looking forward to having Boxing Day off especially - that's
always been a busy day," the report quotes Ms. McDowell as
saying.
Several generations of family have worked in the store over the
years.
Stuff relates that Ms. McDowell took over the business 14 years
ago with her husband Tim, who worked in the locksmith operation
for 36 years before going out on his own.
"All that old school stuff, that's what we've tried to do - over
summer, people will come in with their gas hoses when they've
lost an o-ring or the Christchurch people come up and leave a
tent peg behind - those little things that you can't get online."
Stuff adds that Ms. McDowell said competition with online sales
and bigger stores as well as high rent costs were the main
factors in the store's closure.
Ms. McDowell said despite the decision to close, it had been a
pleasure being a part of the Nelson business community for the
last five decades, Stuff relays.
Following its closure, the shop's Bridge St premises will undergo
some earthquake strengthening work, according to Stuff.
While still trading under the Rollo's name, the locksmith
business was no longer owned by the family and would continue to
operate as normal, the report states.
====================
S O U T H K O R E A
====================
SAMSUNG BIOLOGICS: Court Suspends FSC's Penalties
-------------------------------------------------
Yonhap News Agency reports that a Seoul court approved on Jan. 22
a request by Samsung BioLogics Co. to put on hold the execution
of penalties by the financial watchdog for the company's
suspected accounting irregularities.
Yonhap relates that the Seoul Administrative Court accepted
Samsung's argument that enforcing the penalties before a formal
court ruling can cause unrecoverable damage to the firm.
The penalties will be suspended until the court reaches a verdict
in the litigation between the tech giant and the state, the
report says.
According to Yonhap, Samsung BioLogics lodged an administrative
suit against the decision made by the Financial Services
Commission (FSC) in November last year that the firm
intentionally violated accounting rules to boost its value ahead
of the 2016 initial public offering.
The then loss-making Samsung BioLogics reported in 2015 sudden
profits after changing the method used to calculate the value of
Samsung Bioepis, a joint venture with U.S.-based Biogen Inc.,
Yonhap recounts.
Yonhap says the alleged irregularities boosted the value of a
Samsung key unit in which Samsung's heir apparent, Lee Jae-yong,
had a controlling stake, and its merger with another affiliate
effectively tightened his control over the conglomerate.
The FSC has alleged that the suspected fraudulent accounting
possibly amounts to KRW4.5 trillion (US$3.98 billion), Yonhap
notes.
Yonhap relates that the company has denied any wrongdoing,
claiming the change in accounting methods was in line with
international accounting standards.
Prosecutors began a probe into the allegations and raided Samsung
BioLogics' main offices in December, the report adds.
Samsung BioLogics Co., Ltd. engages in the research, development,
and commercialization of biopharmaceutical products worldwide.
The company develops immunosuppressant biosimilars, such as
Enbrel under the Brenzys and Benepali brand names; and Remicade
under the Renflexis and Flixabi brands. Its products also include
antidiabetic agents, other biosimilars of immunosuppressant
drugs, and breasts cancer drugs, which are under regulatory's
deliberation stage.
===============
T H A I L A N D
===============
KTB SECURITIES: Fitch Rates THB400MM Subordinated Debentures BB-
----------------------------------------------------------------
Fitch Ratings has assigned a National Long-Term Rating of
'BB-(tha)' to KTB Securities (Thailand) Public Company Limited's
(KTBST; BB(tha)/Stable) upcoming issue of up to THB400 million in
subordinated debentures. The debentures will have a maturity of
1.5 years. The firm plans to use the proceeds from the issuance
as working capital for its securities brokerage businesses.
KEY RATING DRIVERS
The subordinated debentures are rated one notch below KTBST's
National Long-Term Rating of 'BB(tha)' to reflect their higher
loss-severity risk relative to senior unsecured instruments
arising from their subordinated status. Subordinated noteholders
rank after senior creditors in the priority of claims.
Additional notching has not been applied to the subordinated
debentures due to the lack of going-concern loss-absorption and
equity-conversion features. Fitch has assigned an equity credit
of 0% to the issue as the tenor is relatively short and the
instrument is not designed to be a permanent part of the
company's capital structure.
RATING SENSITIVITIES
Changes in KTBST's National Long-Term Rating would have a similar
effect on the rating of the subordinated debentures.
KTBST's National Ratings are based on its standalone financial
profile and reflect its small domestic franchise and weak
financials compared with other Fitch-rated Thai securities peers.
The ratings are supported by a new management team that has
turned around the company's successive net losses prior to 2016.
Nonetheless, Fitch expects KTBST's improving performance to
remain more volatile than that of domestic rated peers over the
medium-term due to its weaker franchise, as reflected in its less
diversified and developing business model, and higher costs.
*********
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 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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*** End of Transmission ***