/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/190530.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 Thursday, May 30, 2019, Vol. 22, No. 108 Headlines A U S T R A L I A BOPPL AUSTRALIA: Second Creditors' Meeting Set for June 7 IE TRANSPORT: Second Creditors' Meeting Set for June 6 ROSENDORFF DIAMOND: WA Buyer Steps in to Save Collapsed Jewellers STAR WALLING: Second Creditors' Meeting Set for June 7 TILLEY PARK: First Creditors' Meeting Set for June 6 UNIQUE URBAN: Liquidator Admits "Errors" in Handling Wind Up WAYL PTY: Second Creditors' Meeting Set for June 6 C H I N A HONG YANG: S&P Affirms 'B' Long-Term ICR on Deleveraging Prospects PRIMELINE ENERGY: Defaults on Principal of Syndicate Facility YY INC: S&P Withdraws 'BB' Long-Term Issuer Credit Rating I N D I A EASTERN GASES: ICRA Keeps 'D' Rating in Not Cooperating FANS ASIA: Insolvency Resolution Process Case Summary G-TEC: ICRA Cuts Rating on INR669.44cr Loan to D, Not Cooperating JAYPEE INFRATECH: Adani Offers INR500cr Upfront Cash in Fresh Bid JAYPEE INFRATECH: Annual Net Loss Narrows to INR1,402.16cr in FY19 JMDR INFRA: Insolvency Resolution Process Case Summary LIFESPAN BIOTECH: Insolvency Resolution Process Case Summary LIQUINOX GASES: CARE Assigns 'B' Rating to INR25cr LT Loan MARIYAMMAL SPINNERS: Insolvency Resolution Process Case Summary MARUTHI READY: CARE Assigns B+ Rating to INR5.39cr LT Loan PANDIT AUTOMOTIVE: ICRA Maintains 'D' Rating in Not Cooperating PARIVARTAN BUILDTECH: Insolvency Resolution Process Case Summary PAWAN DOOT: Insolvency Resolution Process Case Summary RATHI GRAPHIC: ICRA Keeps 'D' Rating in Not Cooperating RATNAGARBHA AGRO: CARE Reaffirms 'D' Rating on INR12.99cr Loan ROCKLAND CERAMIC: ICRA Cuts INR12.45cr Loan Rating to D, Not Coop. SAURABH INDIA: Insolvency Resolution Process Case Summary SHANTHA TRUST: ICRA Migrates D Rating to Not Cooperating SHREE BHAGYALAXMI: ICRA Reaffirms B+ Rating on INR7cr Loan SHREE KAUSHALYA: ICRA Maintains 'B' Rating in Not Cooperating SHREE LAXMI: ICRA Maintains 'B' Rating in Not Cooperating SOUTHERN AGENCIES: ICRA Reaffirms 'B' Rating on INR10cr Loan SWASTIK TRADELINK: ICRA Cuts Rating on INR8cr Cash Loan to D TULIP TELECOM: ICRA Maintains 'D' Rating in Not Cooperating UMAYAL SPINNERS: Insolvency Resolution Process Case Summary UTTAM DOORS: CARE Lowers Rating on INR9.20cr LT Loan to D VARIETY LUMBERS: ICRA Hikes Rating on INR2cr Loan to C VEDAMATHA ENTERPRISES: ICRA Maintains D Rating in Not Cooperating ZUARI AGRO: ICRA Lowers Rating on INR1000cr LT Loan to D J A P A N AIFUL CORP: To Sell First Yen-Denominated Junk Bond in Public N E W Z E A L A N D CRYPTOPIA LTD: Gets Provisional Bankruptcy Protection in U.S. TROSKIE LIMITED: Event Management Firm Placed Into Liquidation - - - - - ================= A U S T R A L I A ================= BOPPL AUSTRALIA: Second Creditors' Meeting Set for June 7 --------------------------------------------------------- A second meeting of creditors in the proceedings of BOPPL (Australia) Pty Ltd has been set for June 7, 2019, at 10:00 a.m. at the offices of McLeod & Partners, at Level 9, 300 Adelaide Street, in Brisbane, Queensland. 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 June 6, 2019, at 5:00 p.m. Jonathan Paul McLeod and Bill Karageozis of McLeod & Partners were appointed as administrators of BOPPL (Australia) on May 2, 2019. IE TRANSPORT: Second Creditors' Meeting Set for June 6 ------------------------------------------------------ A second meeting of creditors in the proceedings of IE Transport Pty Ltd has been set for June 6, 2019, at 3:00 p.m. at Suite 19.03, Level 19, 31 Market St, 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 June 5, 2019, at 4:00 p.m. Gavin Moss of Chifley Advisory was appointed as administrator of IE Transport on May 2, 2019. ROSENDORFF DIAMOND: WA Buyer Steps in to Save Collapsed Jewellers ----------------------------------------------------------------- Sean Smith at The West Australian reports that the Rosendorff fine jewellery business will carry on but under new ownership following a deal struck by receivers appointed last month. The West Australian relates that insolvency firm KordaMentha confirmed on May 28 it had struck an agreement to sell the business set up by Craig Rosendorff in the 1980s to an unidentified WA buyer also involved in the jewellery trade. The deal, expected to be finalised in two to three weeks, guarantees more than 20 jobs and covers the Rosendorff trading name, stock and intellectual property, the report says. Receivers from KordaMentha were put into Rosendorff Diamond Jewellers at the end of April. The West Australian says the business, which owes at least $4 million to creditors, has shrunk on falling sales in the past three years to just its flagship store in Hay Street Mall. According to The West Australian, the sale announcement coincided with news the receivers are stepping up a discount sale which has already brought in between AUD2 million and AUD3 million. The West Australian revealed on May 28 that administrators from FTI Consulting had identified "irregularities" in the company's accounts while sheeting home blame for the collapse to the mining downturn. They questioned a AUD1.8 million shortfall in stock and four transactions totalling AUD170,000 where jewellery "left the store without payment". FTI said "there were limited controls around the accounting and inventory functions, which have led to some anomalies in the financial accounts," The West Australian relays. However, it noted that such irregularities were not uncommon, and there is no suggestion of any wrongdoing by Mr. Rosendorff. The West Australian says the firm's statutory report on Rosendorffs also noted that Mr. Rosendorff, who has invested millions of dollars in the business over the past 30 years, had drawn increasing amounts out of the company as its financial situation deteriorated. Between July 2017 and FTI's appointment, those withdrawals totalled AUD1.8 million, including AUD582,000 in the past 10 months. The administrators said Rosendorffs had been under financial pressure for two years, citing "cash leakage" and a steady decline in sales after 2011, triggered by the end of the mining boom. Gordon Brothers is owed about AUD2.2 million, Rosendorffs' staff AUD400,000 and trade creditors AUD270,000, The West Australian notes. STAR WALLING: Second Creditors' Meeting Set for June 7 ------------------------------------------------------ A second meeting of creditors in the proceedings of Star Walling Solutions Pty Ltd has been set for June 7, 2019, at 9:30 a.m. at the offices of SV Partners, Level 3, 12 Short Street, in Southport, Queensland. 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 June 6, 2019, at 4:00 p.m. Matthew John Bookless of SV Partners was appointed as administrator of Star Walling on May 3, 2019. TILLEY PARK: First Creditors' Meeting Set for June 6 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Tilley Park Holdings Pty Ltd, trading as Buses R Us, will be held on June 6, 2019, at 10:00 a.m. at the offices of Hall Chadwick Chartered Accountants, Level 21, 25 Grenfell Street, in Adelaide, SA. Brent Trevor-Alex Kijurina and Richard Albarran of Hall Chadwick Chartered Accountants were appointed as administrators of Tilley Park on May 28, 2019. UNIQUE URBAN: Liquidator Admits "Errors" in Handling Wind Up ------------------------------------------------------------ InDaily reports that a senior liquidator facing a complaint to Australian Securities and Investments Commission (ASIC) has acknowledged a series of "errors" in his handling of the liquidation of an SA construction company. As InDaily revealed last week, Adelaide-based liquidator Paul Jorgensen--a partner at PKF Australia, a group of chartered accounting firms--is the subject of a complaint to national regulator ASIC by turnaround practitioner Eddie Griffith, of ReGroup Solutions. InDaily relates that Mr. Griffith accused Mr. Jorgensen of "fundamental failings" in his handling of the liquidation of Unique Urban Built. According to the report, Mr. Griffith said at the time that he represented 24 Unique Urban Built creditors, which are collectively owed AUD946,420. The long-standing South Australian construction company was placed under external administration last month, owing 245 creditors at least AUD3.87 million collectively, InDaily discloses. Now, InDaily has obtained Mr. Jorgensen's report to creditors dated May 22 (dated May 21 elsewhere in the report), which acknowledges "administrative errors" in his handling of the administration. They include not advertising a creditor's meeting, not lodging legally required forms--and lodging others late--errors in reporting and failing to include information about Unique Urban Built's financial position so that creditors can adequately assess the reasonableness of his fees, according to InDaily. InDaily relates that Mr. Jorgensen wrote that he was handed a letter from ReGroup Solutions at the first meeting of creditors on May 8, which outlined "certain administrative problems with the calling of the meeting and other, and information available to creditors". "As a result of the matters set out in that letter, which I consider serious, I decided to adjourn the meeting to attend to the matters raised, to ensure creditors were in a position to properly make decisions (regarding) the liquidation of the company," Mr. Jorgensen wrote, InDaily relays. "The matters were mainly administrative errors which should have been picked up prior to calling the meeting. ". . . No fee will be charged in the liquidation for time spent in rectifying these problems or in calling the adjourned meeting." Mr. Jorgensen wrote that ASIC representatives attended the May 8 meeting. "After the meeting I discussed their recommendations regarding information to be provided to creditors with them," he said, the report relays. "This report resulted partly from those recommendations." Addressing each of the allegations, Mr. Jorgensen wrote that: -- The May 8 meeting of creditors had not been advertised on ASIC's published notices website. -- Forms were lodged late with ASIC. -- An incorrect job type reference was included in the original creditors' report. -- Written off pre-appointment time was referenced in the original creditors report. Although Mr. Jorgensen acknowledged that pre-appointment time is not chargeable, but wrote that "I do not see any problem in listing it for information," InDaily relays. Moreover, he wrote that a failure by Unique Urban Built director Nathan O'Neil to provide a summary of the company's affairs in time--Mr. Jorgensen said it was only produced on May 21--meant the liquidator was not in a position to provide a list of the company's assets in which he could be confident. "Given the short time in which the report was prepared, the necessity to protect assets of the company, statutory requirements and the failure of the Director to provide a summary of affairs and uncertainty regarding the assets of the company, I was not in a position to provide a list of assets in which I was confident," Mr. Jorgensen, as cited by InDaily, wrote. "A list was prepared for the meeting and was discussed informally with creditors present in an informal discussion after the meeting had been adjourned." The latest report includes a breakdown of the company's assets and liabilities, which amounted to a net positive AUD456,250 as at April 9. It also reports that the company earned profits in 2017 but incurred significant losses in 2018 and 2019, InDaily adds. Mr. Jorgensen wrote that although further investigations are required, the company was, in his view, insolvent from at least 2016. He noted that he would have to analyse any defences that O'Neil might have against an insolvent trading claim and whether he has assets required to meet any such claim, InDaily relays. He also wrote that Mr. O'Neil and his wife, who is not named in the report, are alleged to owe the company AUD1.39 million. The next meeting of creditors is scheduled for June 7, InDaily notes. An ASIC spokesperson advised last week that the agency does not comment on any confidential complaints, or on whether or not such complaints have been received, InDaily adds. Unique Urban Built was registered in 2007 and is based in Norwood. The company has engaged in commercial design and construction projects across South Australia, and was involved in upgrades to the Adelaide Aquatic Centre. WAYL PTY: Second Creditors' Meeting Set for June 6 -------------------------------------------------- A second meeting of creditors in the proceedings of Wayl Pty Ltd has been set for June 6, 2019, at 11:00 a.m. at the offices of CPA Australia, Room 2, Level 3, 111 Harrington 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 June 4, 2019, at 11:00 a.m. Shabnam Amirbeaggi of Crouch Amirbeaggi was appointed as administrator of Wayl Pty on May 2, 2019. ========= C H I N A ========= HONG YANG: S&P Affirms 'B' Long-Term ICR on Deleveraging Prospects ------------------------------------------------------------------ On May 28, 2019, S&P Global Ratings affirmed its 'B' long-term issuer credit rating on Hong Yang Group and its subsidiary Redsun Properties. S&P also affirmed its 'B-' long-term issue rating on the outstanding senior unsecured notes guaranteed by Hong Yang. S&P said, "We affirmed the rating because we anticipate that Hong Yang's leverage will improve and stabilize over the next 12 months, following some deterioration in 2018. Our view is based on our expectation of the company's solid project completion and revenue recognition on the back of large unrecognized sales and controlled debt-funded expansion." A growing investment property portfolio will also provide stability to Hong Yang's cash flow and mitigate the cyclical impact of the property development business. S&P estimates Hong Yang's leverage, as measured by the see-through debt-to-EBITDA ratio, will improve to about 8x over the next two years, from about 10x in 2018. A "see-through" ratio includes proportionate consolidation of joint venture projects. Hong Yang's revenue recognition will accelerate in 2019 and 2020. That's because contracted sales grew more than 80% over the past two years and the company has a roughly three-year development cycle. At the end of 2018, the company has a backlog of unrecognized sales exceeding Chinese renminbi (RMB) 35 billion on a consolidated basis. As a result, S&P expects revenue from property sales to increase to about RMB15 billion in 2019 and RMB20 billion in 2020, from RMB8.8 billion in 2018 as the company speeds up its project delivery. Lack of experience in operating outside of its home base of Jiangsu exposes Hong Yang to greater execution risks than some of its more established peers. Hong Yang completed its strategic shift to a national developer--from a regional one--in 2018. It entered 13 new cities, including Chengdu, Foshan, Wuhan, and Nanchang, increasing its presence to 28 cities across China, during the year. As of end-2018, 30% of the company's land bank is outside Jiangsu, and S&P expects the proportion to increase in the next two years. S&P said, "We believe Hong Yang will continue to follow a debt-funded approach to replenishing land, which may put pressure on its financial leverage. The company's current unsold inventory of RMB100 billion can support its development needs for just one and a half years, in our view. Nevertheless, we expect Hong Yang to stay disciplined in its land acquisition, spending about 60% of its contracted sales to buy land. This reflects management's preference to not hold on to land too long so as to facilitate its fast turnover in a changing environment. The company's high exposure to joint venture projects will also help it to control leverage while growing its scale. "We expect solid growth in Hong Yang's rental income, given its strong pipeline of new mall launches and organic growth of existing malls. We forecast Hong Yang's rental income to increase by about 40% to RMB1.2 billion in 2019 and RMB1.5 billion in 2020, from RMB0.9 billion in 2018. This will cover about 50% of interest expenses over the next 12 months. A key growth driver is the group's renovated building material and household refurbishment shopping mall. We believe Hong Yang has a long history of operating such malls, and will leverage its distribution and logistics network in this niche industry for new malls. In addition, the company signed agreements for malls with the brand name of "Hong Yang Plaza" and "Hong Yang Life +" in six new cities, including Hefei, Yantai, and Guangzhou. It intends to execute most of these projects on an "asset-light" model, fee-based where the company does not own the asset, thereby reducing the use of leverage. "We assess Hong Yang's credit profile as stronger than its 'B-' rated peers, in terms of scale and diversity, and more comparable to 'B' rated peers such as Hopson Development Holdings Ltd. and Redco Properties Group Ltd. Hong Yang also has better rental-to-interest ratio than its 'B-' rated peers. We therefore assign a positive score to Hong Yang in our comparable rating analysis. "We affirmed the rating on Redsun because we expect the company to remain a core subsidiary of Hong Yang. Our rating on Redsun mirrors that on Hong Yang, because Redsun is the listed subsidiary and the dominant contributor to Hong Yang's core business of property development. The rating on Redsun will move in tandem with that on Hong Yang. "The stable outlook on Hong Yang reflects our view that the company's contracted sales and revenue will grow significantly in the next six to 12 months, and its see-through debt-to-EBITDA ratio will improve toward 8x. "We could lower the rating if Hong Yang's deleveraging is slower than our expectation due to weaker sales execution or more aggressive debt-funded expansion. A downgrade trigger would be the see-through debt-to-EBITDA ratio not improving to about 8x in the next six to 12 months or the consolidated debt-to-EBITDA ratio materially exceeding our base-case forecast of about 9x. "We see limited rating upside due to Hong Yang's high leverage. However, we could raise the rating if the company's scale and revenue recognition exceed our expectation while the pace of debt growth is controlled, such that its see-through debt-to-EBITDA ratio falls toward 5x on a sustainable basis." The stable outlook on Redsun mirrors that on parent Hong Yang. S&P said, "We could downgrade Redsun if we lower the rating on Hong Yang. In a less likely scenario, we may lower the rating on Redsun if we believe the company's importance to the group, or the group's control and supervision of Redsun weakens. "We may upgrade Redsun if we raise the rating on Hong Yang." PRIMELINE ENERGY: Defaults on Principal of Syndicate Facility ------------------------------------------------------------- Primeline Energy Holdings Inc., listed on the TSX Venture Exchange Inc. under the trading symbol "PEH", on May 21, 2019, provided an update on operations and the timing of the award in Primeline's arbitration (the "CNOOC Arbitration") with China National Offshore Oil Corp and CNOOC China Limited ("CCL"), and a default in relation to the principal repayment terms of its project finance facility (the "Syndicate Facility"). Operational Update As previously reported, in September 2018, at the time of the main hearing of CNOOC Arbitration, CCL reduced production from LS36-1 to 60% of the previous production level as the A5 well, which represented only about 13% of the LS 36-1 gas field's total production, stopped producing as a result of water ingress. As a precaution, CCL also reduced production from well A1M which drains the same reservoir. Subsequent investigations showed that the water in the A5 well was not formation water but leaked completion fluids. As such, Primeline believes there was no reason to reduce production from the A1M well and that CCL as Operator should repair the A5 well. Notwithstanding this finding, CCL proposed that the production level of the LS 36-1 gas field for the year 2019 should be reduced to a total sales gas quantity of only 102.31mcmpa, which would be the equivalent of approximately 33% of the annual contract quantity ("ACQ") under the gas sale contract with Zhejiang Gas under which production from the gas field is sold. At that level of production, the gas sales revenue and Primeline's cash flow would be greatly reduced. Primeline has been pressing CCL, as Operator, to carry out remedial work and increase production in order to increase revenue but CCL has been slow to take any action. In January 2019, the Joint Management Committee established by CCL and Primeline for the project, instructed CCL to carry out further work to the A5 well to restore production. Belatedly, this has now happened and, on May 11, 2019, CCL recommenced coiled tubing operations to again lift water in the A5 well bore and that operation is currently in process. Irrespective of the success or otherwise of this operation, Primeline will continue to urge CCL to increase production. In the meantime, the arbitral tribunal in the CNOOC Arbitration has now provided an indication that the final award is expected "before the end of the summer", slightly later than originally anticipated. As previously reported, the submission and hearing procedures of the CNOOC Arbitration, which commenced in April 2016, were completed in December 2018. Loan Repayment Default - Operations Continuing As a result of revenue being significantly reduced due to the reduction in production from the LS 36-1 gas field since September 2018, it was impossible for Primeline to make full repayment of principal in accordance with the agreed schedule, which was based on production according to the ACQ and resulting revenue. Primeline informed its lending banks of the reduction in production and operational forecast made by CCL and, in November 2018, the lending banks, being China Development Bank, China Export and Import Bank and Shanghai Pudong Development Bank (jointly "Syndicate Banks"), which have been extremely supportive to date, agreed to an adjustment of the principal repayment due in November 2018 so that part of that principal repayment was deferred and added to the principal repayment due in May 2019. However, due to CCL's failure to take measures to increase production levels referred to above, resulting in the continuation of the reduced cash flow, Primeline was unable to effect full repayment of the principal instalment due on May 20 2019 and, as a result, is now in default under the terms of the Syndicate Facility. The position of Primeline is that its inability to repay the principal instalment is a direct result of decreased revenue which is, in turn, due to the various defaults by CCL and CNOOC which form the basis of the claims made by Primeline in the CNOOC Arbitration. However, as of May 21, the Syndicate Banks have confirmed that, notwithstanding the default, they will not take enforcement action but will continue to support Primeline in order to maintain production and operations until the award in the CNOOC Arbitration has been received. With such confirmation and support, the Company intends to maintain normal operations whilst waiting for the award. Further announcements will be made as and when there is any further development. About Primeline Energy Holdings Inc. Primeline is an exploration and production company focusing exclusively on China natural resources under petroleum contracts with CNOOC in the East China Sea. LS36-1 Gas Field has been in production since July 2014. Shares of Primeline are listed for trading on the TSX Venture Exchange under the symbol PEH. YY INC: S&P Withdraws 'BB' Long-Term Issuer Credit Rating --------------------------------------------------------- S&P Global Ratings withdrew its 'BB' long-term issuer credit rating on YY Inc. at the company's request. The outlook was stable at the time of the withdrawal. ========= I N D I A ========= EASTERN GASES: ICRA Keeps 'D' Rating in Not Cooperating ------------------------------------------------------- ICRA said the ratings for the bank facilities of Eastern Gases Limited (EGL) continue to remain under the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 41.00 [ICRA]D ISSUER NOT COOPERATING; Cash Credit Rating continues to remain under 'Issuer Not Cooperating' category Non-Fund Based- 6.00 [ICRA]D ISSUER NOT COOPERATING; Bank Guarantee Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Eastern Gases Limited (EGL) is involved in the bottling and marketing of Liquefied Petroleum Gas (LPG) to industrial consumers through bulk supplies and to distributors/ dealers through cylinders under the brand name "East Gas". It is one of the largest parallel marketers of LPG in Eastern India. Incorporated as a public limited company in 1995, EGL started commercial production from its production facility at Durgapur in 1998. The manufacturing facilities of the company are based out of Durgapur, Bangalore and Hyderabad. The three plants have a combined production capacity of 70 metric tonne per annum (MTPA). FANS ASIA: Insolvency Resolution Process Case Summary ----------------------------------------------------- Debtor: Fans Asia Private Limited S No.128/1, F No. 404 - Vinayak Paradise Autonagar, Visakhapatnam AP 530012 Insolvency Commencement Date: May 16, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: November 12, 2019 Insolvency professional: Chakravarthi Srinivasan Interim Resolution Professional: Chakravarthi Srinivasan 1-4-211/42/1, Pradhamapuri Colony Sainikpuri, Hyderabad 500062 E-mail: csriniirp@gmail.com Last date for submission of claims: May 30, 2019 G-TEC: ICRA Cuts Rating on INR669.44cr Loan to D, Not Cooperating ----------------------------------------------------------------- ICRA has revised the rating outstanding on the long-term bank facilities of The Government Tele-communication Employees' Co-operative Society Limited (G-Tec) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]BB-(Negative) ISSUER NOT COOPERATING. The rating remains in the 'Issuer Not Cooperating' category and is now denoted [ICRA]D ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term bank 669.44 [ICRA]D ISSUER NOT COOPERATING; Facilities revised from [ICRA]BB- (Negative); Rating remains in 'Issuer Not cooperating' Category ICRA has been trying to seek information from G-Tec to monitor its performance. However, the society's management has remained non-cooperative despite repeated requests from ICRA. The current rating action has been taken by ICRA on the basis of the limited information on the issuer's performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the society, despite the downgrade. Rationale The rating downgrade follows the delay in debt servicing by G-Tec, as confirmed by the lender. The Government Tele-communication Employees' Co-operative Society Limited is a multi-state employee credit cooperative society of BSNL and DoT employees. As on March 31, 2016, it had a member base of 15,261 spread across Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and the Union Territory of Pondicherry. However, Tamil Nadu constituted 91% of the total member base. The society collects thrift and other mandatory deposits and accepts fixed deposits from its members and raises bank term loans to extend loans to its members. The monthly thrift, other mandatory deposits and loan instalments are collected from the members directly in the form of salary deductions by BSNL and DoT and are remitted to the society. As on March 31, 2016, the society's total loan portfolio and net worth stood at INR484 crore (provisional) and INR81 crore (provisional), respectively. As per the provisional financial statements for FY2016, the society reported a net surplus of INR5.2 crore (INR5.8 crore in FY2015) on a total asset base of INR919.6 crore as on March 31, 2016 (INR945.6 crore as on March 31, 2015). JAYPEE INFRATECH: Adani Offers INR500cr Upfront Cash in Fresh Bid ----------------------------------------------------------------- Business Standard reports that the Adani group has again entered the race for debt-ridden Jaypee Infratech by making a non-binding offer of INR500 crore as upfront payment to lenders, employees and operational creditors. Business Standard relates that the committee of creditors (CoC), scheduled to meet on May 30 to consider NBCC (India)'s offer, will also consider the Adani group's fresh offer. According to the report, the Adani group has additionally offered 1,000 acres to lenders and INR1,700 crore to construct houses for home owners. Of the INR500 crore, lenders will receive INR23 crore, while the rest of the money will go to the employees and operational creditors. The Adani offer, if accepted by the lenders, would entail a huge haircut on Jaypee Infratech's INR8,000-crore debt, the report says. The Supreme Court had directed in August last year that INR750 crore deposited by the Jaypee group in the apex court would be transferred to the National Company Law Tribunal (NCLT) and continue to remain invested and follow directions of the NCLT, Allahabad Bench, Business Standard notes. Last month, the Adani group participated in the first round of bidding in Jaypee Infra, but was unsuccessful. The group also bid to take over Ruchi Soya, which went to Patanjali Ayurved, Business Standard recalls. According to Business Standard, the CoC had in April this year rejected an offer by Suraksha Realty because it was revised downwards this year compared with the first one in 2018 due to a fall in real estate prices. A source said the Adani group was interested in developing 25 million square metres worth INR5,000 crore along the Yamuna Expressway. In its latest offer, NBCC has proposed INR200-crore equity capital, transferring 950 acres worth INR5,000 crore as well as the Yamuna Expressway to banks and the completion of flats by July 2023. The offer was to settle an outstanding claim of INR23,723 crore of financial creditors. NBCC has made it clear it will withdraw its offer for the company if the government authorities rejected approval for the transfer of Jaypee's land and the Yamuna Expressway. Lenders were also not optimistic about NBCC's another condition of income tax waiver for the next 30 years on land transfer. "The conditional offers would put lenders at significant risk," Business Standard quotes a source in the committee of creditors as saying. Jaypee Infra had defaulted on loans taken from a consortium of 13 banks led by IDBI Bank and was on the RBI's first list of 12 defaulters, Business Standard discloses. Apart from Jaypee Infra, its erstwhile promoter Jaiprakash Associates has defaulted on loans from more than 30 banks with outstanding dues of around INR30,000 crore. Jaiprakash Associates had also defaulted on fixed deposits, foreign currency convertible bonds and payments to the Noida Authority, Business Standard discloses citing a Supreme Court order dated August 9, 2018. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. On August 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In September 2017, the Supreme Court of India stayed the insolvency proceedings initiated against JIL, after various associations of homebuyers moved a batch of petitions fearing they will lose their apartments and not get any compensation, according to Livemint. The stay was later revoked by the court, which directed the resolution professional to submit an interim resolution plan that takes into account the interest of homebuyers. The court also directed the parent company, JAL, to deposit INR2,000 crore to protect the interest of homebuyers. Out of this, only INR750 crore has been deposited so far, Livemint relayed. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, JAL owes more than INR29,000 crore to various banks, the report added. JAYPEE INFRATECH: Annual Net Loss Narrows to INR1,402.16cr in FY19 ------------------------------------------------------------------ Livemint.com reports that debt-ridden Jaypee Infratech, which is facing insolvency proceedings, on May 27 reported a consolidated net loss of INR1,402.16 crore during the last financial year despite higher income. Its net loss stood at INR1,920.78 crore in the financial year 2017-18, the company said in a regulatory filing, Livemint.com relays. Its total income rose to INR1,613.32 crore during 2018-19 as compared with INR207.22 crore in the previous year, while total expenses also increased to INR2,993.62 crore from INR2,128 crore during the period under review, according to Livemint.com. Out of the total revenue in the previous financial year, INR1,292.79 crore came from Yamuna Expressway that connects Noida and Agra in Uttar Pradesh and INR320.59 came from hospital business, Livemint.com discloses. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. On August 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In September 2017, the Supreme Court of India stayed the insolvency proceedings initiated against JIL, after various associations of homebuyers moved a batch of petitions fearing they will lose their apartments and not get any compensation, according to Livemint. The stay was later revoked by the court, which directed the resolution professional to submit an interim resolution plan that takes into account the interest of homebuyers. The court also directed the parent company, JAL, to deposit INR2,000 crore to protect the interest of homebuyers. Out of this, only INR750 crore has been deposited so far, Livemint relayed. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, JAL owes more than INR29,000 crore to various banks, the report added. JMDR INFRA: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: JMDR Infra Projects Pvt. Ltd. G-6/376, 3rd Floor, Sector 16, Rohini New Delhi 110085 Insolvency Commencement Date: May 17, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: November 13, 2019 (180 days from commencement) Insolvency professional: Kanti Mohan Rustagi Interim Resolution Professional: Kanti Mohan Rustagi E-7, Kailash Colony New Delhi 110048 E-mail: kanti.rustagi@ patanjaliassociates.com Last date for submission of claims: June 5, 2019 LIFESPAN BIOTECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Lifespan Biotech Private Limited Registered address: Plot No. 36 New Industrial Area-II Mandideep Raisen, Raisen Mandhya Pradesh 462046 Insolvency Commencement Date: May 2, 2019 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: October 28, 2019 (180 days from commencement) Insolvency professional: Jagdishchandra Babulal Mistri Interim Resolution Professional: Jagdishchandra Babulal Mistri Bungalow No. 2, New Uday Park Society Part II, Opp. Chandrapuri Apartment B/h Sarkari Vasahat Vastraspur Ahemdabad 380052 Gujarat E-mail: jbmistri@yahoo.com jagdishchandramistri@gmail.com cirp.lbpl@gmail.com Last date for submission of claims: June 4, 2019 LIQUINOX GASES: CARE Assigns 'B' Rating to INR25cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Liquinox Gases Private Limited (LGPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 25.00 CARE B; Stable Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of LGPL are constrained by the Project implementation and stabilization risk, Profitability margins are subject to electricity, water and other manufacturing maintenance cost and Presence in a fragmented industry resulting in high competition from established players. However, the ratings are underpinned by the experienced promoters; financial closure achieved for the project Locational advantage of the plant and pipeline, encouraging government policies for manufacture of liquefied natural gas and stable outlook of Liquefied Natural Gases Industry. Going forward, ability of the company to complete the project without any cost and time overrun and ability of the company to stabilize the operations and generate the revenue and profit levels as envisaged would be the key rating senilities. Detailed description of the key rating drivers Key Rating Weakness Project implementation and stabilization risk: Out of the total project cost of INR41.38 crore, LGPL has incurred INR13.77 crore as on April 30, 2019. The commercial operation is expected to commence from September 2019. The ability of the company to execute the project in timely manner and stabilize the operations, without any cost over-runs thereon would be critical from credit perspective. Profitability margins are subjected to electricity, water and other manufacturing maintenance cost. LGPL is engaged in the manufacturing of natural liquefied gases and the profitability margins of the company will effect on the prices of electricity, water and other manufacturing maintenance cost. Presence in a fragmented industry resulted in high competition from established players: LGPL faces stiff competition in the liquefied gases industry from large number of established and unorganized players in the market. Competition gets strong with the presence of unorganized players leading to pricing pressures. However, improved demand scenario for liquefied natural gases in the country enables well for the company. Key Rating Strengths Experienced promoters Liquinox Gases Private Limited (LGPL) was incorporated in December 2016 as a Private Limited with Ms. Himanbindu Pamulapati and Ms. Sarojini Pamulapati as directors. All the promoters of the company are well qualified and have experience across different fields. Ms. Himabindu Pamulapati, the Managing Director, is a graduate by qualification and currently serving the following positions: * Director for Group Company INCAP Limited in Vijayawada * Serving as the Managing Director at a renewable solar energy company, namely SS Indus Solar Energy Pvt.Ltd * Serving as the Managing Director at Liquinox Gases Pvt. Ltd. Company since December 2016. Whereas, Ms. Sarojini Pamulapati, the Director is a graduate by qualification is a Director at SS Indus Solar Energy Pvt. Ltd since 2014 and a director at Liquinox Gases Pvt. Ltd. company since December 2016. Financial closure achieved for the project: LGPL has achieved financial closure for the project. The estimated total project cost for setting up the unit is INR41.38 crore which is to be financed through a term loan (sanctioned on August 2018) of INR25.41 crore and the balance INR15.97 crore through promoter's own contribution. Of the total project cost, the company has incurred Rs.13.77 towards the machinery advances, land and building development which is funded through promoters own funds Stable Outlook of Liquefied Natural Gases Industry: India is already reeling under the weight of growing consumption of Crude Oil and Coal and their associated pollution levels, India proposed to maintain the balance in energy consumption pattern with the help of doubling the percentage of natural gas to 15% in the energy mix by 2022. Historically, India's natural gas consumption pattern has been on an upward trend since last 6-7 years. With limited natural gas reserves in India, the imports of natural gas which stood at 12.89 BCM in FY11 has increased by more than two times to 26.33 BCM in FY18 despite having less number of LNG terminals. India may see a 6 times growth in the Indian gas market by 2030 from the current levels, with LNG to be the largest contributor. As per MoPNG, LNG import terminal capacity to double to 47.5 MTs by 2022. The Government plans to launch the auction of 60 oil and gas fields being offered in the second round of bidding for Discovered Small Field (DSF) on August 9, 2018. Use of LNG as a transport fuel is on the priority list of the government and is working in line for setting required infrastructure. Petro net is setting up 20 LNG stations at petrol pumps on highways along the west coast that connects Delhi with Thiruvananthapuram covering a total distance of 4500 kms via Mumbai and Bengaluru. Automotive sector in India foresees a demand of 8-9 MTs of LNG annually by 2022. India opens biggest city gas licensing round likely to attract investment of INR 70,000 Crore. Government targeting to raise the share of natural gas in the primary energy basket to 15 percent from current 6 percent, in the next few years. Vijayawada (Andhra Pradesh) based M/s. Liquinox Gases Private Limited (LGPL) was incorporated in December 2016 and promoted by the directors of Incap Limited and SS Indus Solar Energy Private Limited which was started in 1992 and 2006 respectively. LGPL is a wholly owned subsidiary of SS Indus Solar Energy Private Limited. LGPL was incorporated with an objective of manufacturing industrial and medical gases like Liquid Oxygen, Liquid Nitrogen, Liquid Argon, Compressed Oxygen, Compressed Nitrogen, Compressed Argon and Medical Oxygen at its own cryogenic manufacturing unit located at Pydibheemavaram Industrial area near Srikakulam, situated around where more than 250 reputed Pharmaceutical Companies are having their manufacturing Plants. LGPL will build a pipeline network within the Pharma City for supply of Nitrogen & Oxygen gas to these companies. The estimated total project cost for setting up the unit is INR41.38 crore which is to be financed through a term loan (sanctioned on August 2018) of INR25.41 crore and the balance INR15.97 crore through promoter's own contribution. Of the total project cost, the company has incurred INR13.77 crore towards the machinery advances, land and building development. The company is expected to commence the commercial operations from September 2019. MARIYAMMAL SPINNERS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: M/s Mariyammal Spinners Private Limited S. Ramachandrapuram Via-Sundarapandian, Srivilliputhur Taluk Srivilliputhur Taluk TN 626126 IN Insolvency Commencement Date: May 20, 2019 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: November 19, 2019 (180 days from commencement) Insolvency professional: V. Venkata Sivakumar Interim Resolution Professional: V. Venkata Sivakumar No. 10/11, Dr. Subbrayan Nagar Main Road Near Samiyarmadam, Kodambakkam Chennai 600024 E-mail: arunasri.siva@gmail.com Last date for submission of claims: June 4, 2019 MARUTHI READY: CARE Assigns B+ Rating to INR5.39cr LT Loan ---------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of Maruthi Ready Mix (MRM), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.39 CARE B+, Stable Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of MRM are tempered by limited track record and small scale of operations, financial risk profile marked by leverage capital structure and moderate debt coverage indicators, highly fragmented and competitive business segment due to presence of numerous players and partnership nature as constitution with inherent risk of withdrawal of capital. However, the ratings derive comfort from experienced management with more than two decades, increasing trend in the total operating income and satisfactory profitability margins, healthy outlook demand for RMC. Going forward, the ability of the firm to improve its scale of operations and capital structure while effectively utilizing its working capital limits, enhance the geographical, clientele and sectoral reach are the key rating sensitivity are the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses Limited track record and small scale of operations: MRM has limited track record of 5 years in ready mix concrete business. Further, the scale operations of the remained small with the total operating income of INR4.83 crore in FY18 and with low tangible net worth base of INR1.02 crore as on March 31, 2018, when compared to other peers in the industry. Financial risk profile marked by leveraged capital structure and moderate debt coverage indicators: The capital structure of the firm stood leveraged with overall gearing ratio of 5.03x as on March 31, 2018 as compared to 4.68x as on March 31, 2017, due to increase in the total debt levels for the purchase of plant and machinery. MRM has working capital borrowings from banks to meet day-to-day operations and long term borrowings from banks for purchase of vehicles and machinery. The debt coverage indicators of the firm have deteriorated and remained moderate, while being volatile due to fluctuation in debt levels and resultant financial expenses. The total debt to GCA has deteriorated and stood at 5.08x in FY18 as compared 4.91x in FY17 on back of increase in total debt of MRM. Further interest coverage stood at 3.08x in FY18 as compared to 3.46x in FY17 due to increase in the finance cost. Due to increase in total debt levels the total debt to CFO stood at 5.63x as on March 31, 2018. Highly fragmented and competitive business segment due to presence of numerous players: The firm is engaged into a fragmented business segment and competitive industry. The market consists of several small to medium-sized firms that compete along with several large enterprises. There are several small sized firms in and around Bengaluru area in Karnataka, which compete with MRM. The end product of MRM finds its application in the construction and infrastructure industry. Hence, the business risk profile of the firm is directly linked to the performance of these sectors. Partnership nature as constitution with inherent risk of withdrawal of capital: MRM, being partnership firm, is exposed to inherent risk of the partner's capital being withdrawn at time of personal contingency and firm being dissolved upon death. Moreover, partner firm business has restricted avenues to raise capital which could prove a hindrance to its growth. However, there has been no withdrawal of capital during the review period. Key Rating Strengths Experienced management with more than two decades: The managing partner, Mr. Melegowada has more than 20 years' experience in Hallow block factory, Stone crusher. He is proprietor of Maruthi stone crusher since 2000. Increasing trend in the total operating income and satisfactory profitability margins for the period under review The total operating income has been increasing y-o-y at CAGR of 10.44% during FY16-FY18 (A) due to favourable outlook for construction and infrastructure industry resulting in increase in of orders. The firm has registered a total operating income of INR4.83 crore in FY18 as compared to INR4.02 crore in FY17 due to better execution of orders. The profitability margins are increasing y-o-y with the increase in total operating income. The PBILDT margin stood satisfactory at 34.46% in FY18 as compared to 27.64% in FY17. In line with PBILDT margin the PAT margins increased from 2.57% in FY17 to 2.80% in FY18. The firm has registered the total operating income of INR6.00 crore during FY19 (provisional). Healthy outlook demand for RMC: Ready mix concrete (RMC) is being increasingly used as a building material for residential & commercial buildings, energy generation plants, roads and runways etc. Growing construction spending considering urbanization, population growth and government infrastructural plans will increase market growth. The government of India launched smart cities program to create cities equipped with good infrastructure offering high quality of life through smart solutions, which is likely to spur the demand for ready mix concrete. Liquidity Analysis The current ratio of the firm stood at 1.02x as on March 13, 2018 due to high utilization of working capital facilities during FY18. The firm has cash and cash equivalents of 0.004 crore as on March 31, 2018 and the unutilized working capital stood ~5% as on March 31, 2019. Bidadi (Karnataka) based Maruthi Ready Mix (MRM) was established in 2014 as Partnership firm by Mr. Melegowada and Ms. Pushpa. The firm is engaged in the manufacturing and supply of ready mix concrete. The firm has3 ready mix concrete vehicles for the operations. The partners have an experience of more than two decades in the hollow block industry and stone crushers. As on April 26, the firm had orders worth of INR18.10 crore from Technoart Constructions Private Limited and Prime Estates for the supply of ready mix concrete, expected to be completed by March 2020. PANDIT AUTOMOTIVE: ICRA Maintains 'D' Rating in Not Cooperating --------------------------------------------------------------- ICRA said the ratings for the INR97.6-crore bank facilities of Pandit Automotive Private Limited continue to remain in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash credit 75.00 [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Term Loans 22.60 [ICRA]D; ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Pandit Automotive Private Ltd. (PAPL) was incorporated in 1980. The present business was taken over in the year 1987 from Automotive Services, a proprietary firm established in 1956, then run by Mr. R. H. Pandit. PAPL is in the business of retailing passenger vehicles and commercial vehicles for TATA Motors Limited (TML) and spare parts. The Company retails the whole range of vehicles produced by TML in three districts in Maharashtra viz. Pune, Satara and Sangli. PARIVARTAN BUILDTECH: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: M/s Parivartan Buildtech Pvt. Ltd. Registered office: Plot No. 96, S/Floor KH No. 13/4 Village Pochanpur Sai Enclave, Sector-23, Dwarka New Delhi 110077 Corporate office: Plot No. 902, Sector-51, Gurgaon Haryana 122002 Insolvency Commencement Date: May 14, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: November 10, 2019 Insolvency professional: Anjali Sharma Interim Resolution Professional: Anjali Sharma Chamber No. 334, Lawyer's Chambers Delhi High Court New Delhi 110003 E-mail: anjalisharma@ integrallawoffices.org Last date for submission of claims: June 5, 2019 PAWAN DOOT: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: Pawan Doot Estate Private Limited Registered address: B 292, Chandra Kanta Complex Shop No. 8, Near Metro Pillar No. 161 New Ashok Nagar, Delhi New Delhi 110096 Insolvency Commencement Date: May 10, 2019 Court: National Company Law Tribunal, New Delhi Bench-II Estimated date of closure of insolvency resolution process: November 6, 2019 (180 days from commencement) Insolvency professional: Darshan Singh Anand Interim Resolution Professional: Darshan Singh Anand EG-46, Inder Puri New Delhi 110012 E-mail: dsanand57@gmail.com - and - Sumedha Management Solutions Pvt. Ltd. B-1/12, 2nd Floor, Safdurjung Enclave New Delhi 110029 E-mail: cirp.pawandoot@gmail.com Last date for submission of claims: June 5, 2019 RATHI GRAPHIC: ICRA Keeps 'D' Rating in Not Cooperating ------------------------------------------------------- ICRA said the ratings for the INR12.81-crore bank facilities of Rathi Graphic Technologies Limited (RGTL) continue to remain under 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits- 6.50 [ICRA]D; ISSUER NOT Working Capital COOPERATING; Continues Limits to remain under the 'Issuer Not Cooperating' category Term Loans 0.49 [ICRA]D; ISSUER NOT COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category Unallocated 0.82 [ICRA]D; ISSUER NOT COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category Non Fund based 4.0 [ICRA]D; ISSUER NOT Limits-LC/BG COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category SLC 1.0 [ICRA]D; ISSUER NOT COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category Rationale ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available and limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Rathi Graphic Technologies Limited (RGTL) is a public limited company engaged in the manufacturing of toners for photocopiers, laser printers, and multi function printers. The company was incorporated in December 1991 by Mr. Raj Kumar Rathi. The manufacturing facility is located at Bhiwadi, Rajasthan and the company sells its product under the brand name 'Rathi Toner'. The promoter Mr. Raj Kumar Rathi belongs to the Rathi family which has long track record and established name in manufacturing of thermo mechanically treated (TMT) bars. The promoters are also engaged in the MT bars manufacturing business through group company - RGTL Industries Ltd (RIL), in which RGTL holds 49.18% stake. RATNAGARBHA AGRO: CARE Reaffirms 'D' Rating on INR12.99cr Loan -------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Ratnagarbha Agro Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 12.99 CARE D; ISSUER NOT COOPERATING Facilities Reaffirmed (Issuer not cooperating; Based on best available information) Detailed Rationale & Key Rating Drivers CARE has been seeking information from Ratnagarbha Agro Private Limited, to monitor the rating(s) vide e-mail communications/ letters dated May 17, 2019, May 16, 2019, May 10, 2019 and numerous phone calls. However, despite our repeated requests, the company has not provided the requisite information for monitoring the ratings. In-line with the SEBI guidelines, CARE has reviewed the rating on the basis of publicly available information which however, In care's opinion is not sufficient to arrive at fair rating. Furthermore, Ratnagarbha Agro Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its rating agreement. The ratings of Ratnagarbha Agro Private Limited will now be denoted as CARE D; ISSUER NOT COOPERATING. The ratings have been reaffirmed on account of no information available. 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 reaffirmed by taking into account non-availability of information due to non-cooperation by Ratnagarbha Agro Private Limited 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. Detailed description of the key rating drivers At the time of last rating on December 27, 2017, the following were the rating weakness: The rating has been reaffirmed on account of ongoing delays in debt servicing due to stretched liquidity position. Hardoi (U.P) based Ratnagarbha Agro Private Limited (RAPL) was incorporated in February, 2007 by Mr. Shri Kishan Agrawal and his son Mr. Ram Kishan Agrawal. However, the company started its commercial operations in October 2013.RAPL procures raw material i.e. wheat from the grain markets located in Uttar Pradesh, Rajasthan, Delhi and Haryana mainly on cash or advance basis. RAPL sells its products under brand 'Ratan Bhog” mainly through commission agents, brokers and wholesalers located in Delhi, Rajasthan, and Mumbai etc. The products are sold in packaging of 100kg, 100kg and 50kg for Atta, Maida and Suji.Savaria Rollers Flour Mills Private Limited (SRPL) is associate company of RAPL which was established in 2004 and is engaged in same business line. ROCKLAND CERAMIC: ICRA Cuts INR12.45cr Loan Rating to D, Not Coop. ------------------------------------------------------------------ ICRA has downgraded the long-term rating for the bank facility of Rockland Ceramic LLP (RCL) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]B (pronounced ICRA B) ISSUER NOT COOPERATING. ICRA has also downgraded the Short-term rating for the bank facility of Rockland Ceramic LLP (RCL) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]A4 ISSUER NOT COOPERATING. The rating continues to remain in the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D; ISSUER NOT COOPERATING" for the bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 5.00 [ICRA]D; ISSUER NOT Cash Credit COOPERATING; Downgraded from [ICRA]B (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Fund-based- 12.45 [ICRA]D; ISSUER NOT Term Loan COOPERATING; Downgraded from [ICRA]B (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Non-Fund-based- 2.40 [ICRA]D; ISSUER NOT Letter of Credit COOPERATING; Downgraded from [ICRA]A4; Rating continues to remain in the 'Issuer Not Cooperating' category Long term/short 0.15 [ICRA]D; ISSUER NOT term unallocated COOPERATING; Downgraded from [ICRA]B (Stable)/A4; Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Rationale The ratings take into consideration the irregularity in debt servicing by RCL, as confirmed by its lender to ICRA. Incorporated in 2001, Rockland Ceramic LLP (STPL) is engaged in trading of grey cloth, chemicals, paper, steel and cement. STPL is also a distributor of LG mobile phones and Reliance 'Jio' in Gujarat state. The company is promoted by Mr. Sandeep Jain and his family members. SAURABH INDIA: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Saurabh (India) Pvt. Ltd. 713, GD-ITL, Northex Tower Netaji Subhash Place, Pitampura Delhi 110034 Insolvency Commencement Date: May 22, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: November 20, 2019 Insolvency professional: Pankaj Khetan Interim Resolution Professional: Pankaj Khetan H-38, LGF, Jangpura Extension Near Eros Complex New Delhi 110014 E-mail: pankaj.khetan@yahoo.com cirpsaurabhindia@gmail.com Last date for submission of claims: June 7, 2019 SHANTHA TRUST: ICRA Migrates D Rating to Not Cooperating -------------------------------------------------------- ICRA Ratings has migrated the rating on bank facilities of Shantha Trust to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term- 8.00 [ICRA]D ISSUER NOT COOPERATING; Fund based Rating moved to Issuer Non- Cooperating category Rationale The rating for the bank facilities of Shantha Trust moved to "[ICRA]D ISSUER NOT COOPERATING". ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Shantha Trust was registered in November 2011 with four trustees and is promoted by Mr. S. Senthilkumar. The Trust took over the operations of E.S. College of Nursing ("ESCON"/"the College") from Shantha Medical Foundation (SMF, a group entity), during 2013-14. ESCON started the operations in the year 2008. SMF presently takes care of the operations of ES Hospitals. In the current year 2016-17, the Trust has started the operations of E.S. Arts & Science College ("ESASC") from the current academic year 2016-17. ESCON presently offers courses in six specializations - Bachelor of Science in Nursing (B.Sc (N)), Diploma in General Nursing and Midwifery (DGNM), Post Basic Bachelor of Science in Nursing (P.B.B.Sc (N)), Diploma in Medical Laboratory Technology (DMLT), Auxiliary Nursing and mid-wifery (ANM) and Master of Science in Nursing (M. Sc (N)). The College is recognized by Indian Nursing Council (INC) and Tamil Nadu Nurses and Midwives Council (TNC), and is affiliated to The Tamil Nadu Dr. M.G.R. Medical University. ESASC offers five Under-Graduate (UG) courses namely Bachelor of Science in Maths, Bachelor of Science in Computer Science, Bachelor of Science in Physics, Bachelor of Arts in English and Bachelor of Commerce. The sanctioned strength for each course is 50 students. SHREE BHAGYALAXMI: ICRA Reaffirms B+ Rating on INR7cr Loan ---------------------------------------------------------- ICRA reaffirmed ratings on certain bank facilities of Shree Bhagyalaxmi Industries, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- Cash Credit 7.00 [ICRA]B+(Stable); Reaffirmed Unallocated Limits 2.50 [ICRA]B+(Stable); Reaffirmed Rationale The rating reaffirmation remains constrained by the firm's weak financial risk profile characterised by relatively small scale of operations, low profitability, weak coverage indicators and high working capital intensity. The rating also continues to factor in the vulnerability of the firm's profitability to adverse fluctuations in raw material prices (raw cotton), considering the inherently low value-added ginning business and the intense industry competition. Further, its operations remain exposed to regulatory risks with regard to the minimum support price (MSP), which is set by the Government. ICRA also notes the potential adverse impact on the firm's net worth and gearing level in case of any substantial withdrawal from the capital accounts, given its constitution as a partnership concern. The rating, however, continues to favourably factor in the extensive experience of the partners in the cotton industry and the proximity of the firm's manufacturing plant to raw material sources. Outlook: Stable ICRA expects Shree Bhagyalaxmi Industries to continue to benefit from the extensive experience of its partners in the cotton industry. The outlook may be revised to Positive if substantial growth in revenue and profitability leads to higher-than-expected cash accruals, and better working capital management strengthens the financial risk profile. The outlook may be revised to Negative if a substantial decline in scale and profitability leads to inadequate cash accruals, or if any major capital expenditure, or capital withdrawal, or a stretch in the working capital cycle, weakens the firm's capital structure and liquidity. Key rating drivers Credit strengths Extensive experience of partners in cotton industry - Established in 2013, Shree Bhagyalaxmi Industries is managed by nine partners, who have extensive experience in the cotton ginning and pressing business through their earlier associations with other entities involved in the cotton industry. Location-specific advantage - The firm benefits in terms of low transportation cost and easy access to raw cotton due to the strategic location of its plant in the Saurashtra region of Gujarat, an area of high cotton acreage and quality cotton crop. Credit challenges Weak financial risk profile characterised by relatively small scale of operations and low profitability - The firm's operating income (OI) grew by ~22% to INR29.04 crore in FY2018 from INR23.72 crore in FY2017, though the operations remain relatively small. The operating margins remained low at 3.07% in FY2018 compared to 2.96% in FY2017, due to intense competition and low value-added operations. Consequently, the net profit margin remained low at 0.44% in FY2018 compared to 0.69% in FY2017, with increase in interest cost. The total debt increased in FY2018 to INR6.30 crore against INR4.85 crore in FY2017 despite the repayment of entire term loan, due to higher working capital utilisation. The capital structure, however, improved with gearing of 1.94 times as on FY2018-end against 3.31 times as on FY2017-end, due to the infusion of capital worth INR1.78 crore by the partners leading to an improvement in net worth. The debt protection metrics remained weak with interest coverage of 1.55 times, NCA/TD of 3% and Total Debt/OPBDIT of 7.06 times in FY2018. The working capital intensity remained high at 28% in FY2018 compared to 20% in FY2017, with high receivables and inventory levels towards FY2018-end. Vulnerability of profitability to adverse fluctuations in raw material prices and regulatory changes - The firm's profitability remains exposed to fluctuations in raw material (raw cotton) prices, which depend on various factors such as seasonality, climatic conditions, international demand and supply situations, and export policy. Further, it is exposed to regulatory risks with regard to the MSP set by the Government. Intense competition and fragmented industry structure - The firm faces intense competition from other small and unorganised players in the industry, given commoditisation and low entry barriers. This limits its pricing flexibility and bargaining power with customers, and puts pressure on its revenues and margins. Risk associated with partnership constitution - Shree Bhagyalaxmi Industries, being a partnership firm, is exposed to adverse capital structure risk, wherein any substantial capital withdrawal could negatively impact its net worth and capital structure. Liquidity position The fund flow from operations remained positive, though the free cash flows turned negative in FY2018 following the increase in working capital requirements. The average utilisation of the working capital limits remained high at ~73% from December 2017 to January 2019. The liquidity is expected to remain adequate, supported by cushion in cash credit limits, no impending debt repayments, and absence of any major capital expenditure plans in the near to medium term. Established in April 2013 as a partnership firm, Shree Bhagyalaxmi Industries is involved in ginning and pressing of raw cotton to produce cotton bales and cotton seeds. Its manufacturing facility, located in Rajkot (Gujarat), is equipped with 36 ginning machines and a pressing machine with a capacity of 34 metric tonne of raw cotton per day. At present, the firm is managed by nine partners, who have extensive experience in the cotton industry. SHREE KAUSHALYA: ICRA Maintains 'B' Rating in Not Cooperating ------------------------------------------------------------- ICRA said the ratings for the INR9.00-crore bank facilities of Shree Kaushalya Fibers continue to remain under 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 4.50 [ICRA]B (Stable) ISSUER NOT Based-Cash COOPERATING; Continues to Credit remain under the 'Issuer Not Cooperating' category Long Term-Fund 1.50 [ICRA]B (Stable) ISSUER NOT Based-Term Loan COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category Long Term- 3.00 [ICRA]B (Stable) ISSUER NOT Unallocated COOPERATING; Continues to remain under the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available and limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Shree Kaushalya Fibres (SKF) is a partnership firm promoted by the Tayal family of Sendhwa, Madhya Pradesh and is engaged in cotton ginning and pressing. The promoters have extensive experience in the cotton ginning business through other group companies like Mahesh Ginning Private Limited and Girijashankar Cotton Private Limited. SHREE LAXMI: ICRA Maintains 'B' Rating in Not Cooperating --------------------------------------------------------- ICRA said the ratings for the INR5.94 crore bank facilities of Shree Laxmi Guar Gum Industries continues to remain under 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 4.50 [ICRA]B (Stable); ISSUER NOT Cash credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund based- 1.44 [ICRA]B (Stable); ISSUER NOT term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Rationale ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available and limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in November 2013, Shree Laxmi Guar Gum Industries processes guar seeds to obtain guar gum refined splits and by-products like churi and korma. The firm operates from its facility located at Rajkot in Gujarat, with an installed guar gum seeds processing capacity of 16,500 MTPA. The proportion of the final product includes 28% guar gum refined splits, 18% korma, 51% churi and 3% wastage, thereby translating into guar gum refined splits production capacity of 4620 MTPA, korma of 2970 MTPA, churi of 8415 MTPA and wastage of 495 MPTA. SOUTHERN AGENCIES: ICRA Reaffirms 'B' Rating on INR10cr Loan ------------------------------------------------------------ ICRA reaffirmed ratings on certain bank facilities of Southern Agencies (SA), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- based/CC 10.00 [ICRA]B(Stable); reaffirmed Rationale The rating reaffirmation remains constrained by the small scale of operations of SA, with revenues of INR32.10 crore in 9M FY2019. Further, the rating notes its weak financial risk profile, with modest debt coverage indicators (as reflected by gearing of 2.41 times as on December 31, 2018, Total Debt/OPBDIT of 4.58 times and NCA/TD of 9.20% in 9M FY2019) and high working capital intensity of operations due to high inventory holding. The rating further considers SA's thin profitability margins owing to the trading nature of business, the inherent risk associated with a partnership firm including the risk of capital withdrawal by partners, and the high geographical concentration risk as its presence is limited to Andhra Pradesh and Telangana. However, the rating draws comfort from the fact that SA is the authorised dealer for Godrej Industries' products in Andhra Pradesh and Telangana with a presence of 20 branches, and the extensive experience of partners in the wholesale distribution business. The established position of Godrej Industries in the home appliance, security and furniture segment provides additional comfort. The firm is also the authorised dealer for IFB Industries Limited, Usha International Limited and MM Rubber Company Limited (MM Foam). Going forward, the firm's ability to improve its scale of operation and profitability levels, while managing its working capital requirements would remain the key rating driver. Outlook: Stable The Stable outlook reflects ICRA's expectation that SA will continue to benefit from the extensive experience of its partners in the dealership business. The outlook may be revised to Positive if a substantial growth in revenue and profitability, and better working capital management strengthen the financial risk profile. The outlook may be revised to Negative if cash accrual is lower than expected, or a stretch in the working capital cycle weakens liquidity. Key rating drivers Credit strengths Extensive experience of promoters in distribution business - The promoters have more than six decades of experience in the dealership business for products like refrigerators, washing machines, air conditioners, furniture etc. SA's sales are made to retailers, institutions and distributors. Established relationships with customers resulted in repeat orders. Authorised wholesale dealer for Godrej Industries' products - SA is the authorised wholesale dealer for Godrej Industries, with 20 branches in Andhra Pradesh and Telangana. The firm is also the authorised dealer for IFB Industries Limited, MM Foam, Usha International Limited, LG Electronics India Private Limited and Whirlpool India Limited. Credit challenges Small scale of operations - The firm's scale of operations remains small with revenues of INR50.70 crore in FY2018. The same is estimated to decline to INR41 crore in FY2019, due to increased competition and decrease in orders from Government departments. Weak profitability and debt coverage indicators - The operating profit margin of distributors, including SA, is inherently low due to the nature of the business, characterised by high-volumes and low-margins. Also, the scope of margin expansion remains limited, as the margins are regulated by the principal to a large extent. The firm's financial risk profile is characterised by a high gearing of 2.41 times, Total Debt/OPBDIT of 4.58 times and NCA/TD of 9.20% in 9M FY2019. Intense competition in dealership business - The distribution industry is highly fragmented with many established organised players given the low complexity of work involved, resulting in intense competition. High working capital intensity - The working capital intensity of the business is high on account of high inventory holding inherent in the wholesale dealership business, exerting pressure on the firm's liquidity position. Geographical concentration risk - The firm supplies to retailers, institutions and distributors located in Andhra Pradesh and Telangana, exposing it to geographical concentration risk. Risks associated with constitution as partnership firm - Given SA's constitution as a partnership firm, it is exposed to risks including the possibility of capital withdrawal by the partners. Liquidity position SA's liquidity position remained moderate, as evident from 73% average utilisation of its fund-based limits between March 2018 and March 2019. Further, the firm had free cash and bank balance of INR0.35 crore as on December 31, 2018. SA did not have any external term loan as on December 31, 2018. Southern Agencies, established in 1950 as a partnership firm, is a wholesale dealer for Godrej Industries' products including refrigerators, washing machines, air conditioners, furniture etc. The firm is also a wholesale dealer for IFB Industries Limited, MM Foam, Usha International Limited etc. The firm's head office is located in Rajahmundry, and it has presence in eight districts through 20 branches spread across Andhra Pradesh and Telangana. SWASTIK TRADELINK: ICRA Cuts Rating on INR8cr Cash Loan to D ------------------------------------------------------------ ICRA has downgraded the long-term rating for the bank facility of Swastik Tradelink Private Limited (STPL) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]BB- ISSUER NOT COOPERATING. ICRA has also downgraded the Short-term rating for the bank facility of Swastik Tradelink Private Limited (STPL) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]A4 ISSUER NOT COOPERATING. The rating continues to remain in the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D; ISSUER NOT COOPERATING" for the bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 8.00 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Downgraded from [ICRA]BB- (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Non-Fund-based- (2.00) [ICRA]D; ISSUER NOT COOPERATING; Letter of Credit- Downgraded from [ICRA]BB- sublimit to cash (Stable)/A4; Rating continues of credit to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Rationale The ratings take into consideration the irregularity in debt servicing by STPL, as confirmed by its lender to ICRA. Incorporated in 2001, Swastik Tradelink Private Limited (STPL) is engaged in trading of grey cloth, chemicals, paper, steel and cement. STPL is also a distributor of LG mobile phones and Reliance 'Jio' in Gujarat state. The company is promoted by Mr. Sandeep Jain and his family members. TULIP TELECOM: ICRA Maintains 'D' Rating in Not Cooperating ----------------------------------------------------------- ICRA said the rating for INR150.0-crore NCD of Tulip Telecom Limited (TTL) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-Convertible 150.0 [ICRA]D ISSUER NOT Debenture COOPERATING; Continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Incorporated in 1992, by Retired Lt. Col. H.S. Bedi, as a private limited company involved in trading of software, Tulip Telecom Limited (Tulip), formerly Tulip IT Services Limited has since diversified its operations to other related areas such as selling of hardware products, network integration, VPN data connectivity and managed services. The company became a public limited company and was renamed to Tulip Software Ltd.; the name was further changed to Tulip IT Services Ltd. in 2002 and to Tulip Telecom Limited in 2008. UMAYAL SPINNERS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: M/s Umayal Spinners Private Limited S. Ramachandrapuram Sundarapandiam (Via) Srivilliputhur TK Kamraj Dist Srivilliputhur TK Kamraj Dist TN 626126 IN Insolvency Commencement Date: May 20, 2019 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: November 19, 2019 (180 days from commencement) Insolvency professional: V. Venkata Sivakumar Interim Resolution Professional: V. Venkata Sivakumar No. 10/11, Dr. Subbrayan Nagar Main Road Near Samiyarmadam, Kodambakkam Chennai 600024 E-mail: arunasri.siva@gmail.com Last date for submission of claims: June 4, 2019 UTTAM DOORS: CARE Lowers Rating on INR9.20cr LT Loan to D --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Uttam Doors Private Limited (UDPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank 9.20 CARE D; Revised from CARE B+; Facilities ISSUER NOT COOPERATING Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 1, 2017, placed the rating of UDPL under the 'issuer non-cooperating' category as UDPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. UDPL continues to be non-cooperative despite repeated requests for submission of information through email letter dated March 20, 2019. 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. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The revision in the rating takes into account the delays in debt servicing as per interaction with the bankers. Detailed description of the key rating drivers: Key Rating Weaknesses Delays in debt servicing: As per the interaction with the banker, there are delays in the repayment of debt obligations. Weak financial risk profile: The financial risk profile of the company deteriorated with losses reported on a PBILDT and PAT levels in FY18. The same has resulted in complete erosion of the net-worth base. Nagpur (Maharashtra) based Uttam Door Private Limited (UDPL) was incorporated in 2012 by Mr. Gulab Patel. The company is engaged in manufacturing and trading of plywood door, laminates and block boards. Majority of the revenue is contributed by trading segment. The manufacturing facility of the company is located at Nagpur (Maharashtra). The company procures raw material from local suppliers based in Nagpur and Uttar Pradesh and sell its products in Maharashtra through dealers. VARIETY LUMBERS: ICRA Hikes Rating on INR2cr Loan to C ------------------------------------------------------ ICRA has revised the ratings on certain bank facilities of Variety Lumbers Private Limited's (VLPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based 2.00 [ICRA]C; Upgraded from Cash Credit [ICRA]D Non-fund-based 20.00 [ICRA]A4; Upgraded from Import Letter [ICRA]D of Credit cum Buyers Credit Rationale The ratings revision takes into account the regularisation of debt servicing in the past four months with an improvement in the liquidity position. The ratings favourably factor in the extensive experience of VLPL's promoters in the timber industry and location-specific advantages due to its proximity to the Kandla port in Gujarat. The ratings, however, remain constrained by the company's weak financial risk profile, marked by a leveraged capital structure, weak coverage indicators and tight liquidity position owing to high working capital intensity of 31% as on FY2019-end. ICRA notes that the inventory days increased to 97 days in FY2019 compared to 58 days as on FY2018-end due to temporary labour shortage, though the same is expected to smoothen in the near term. Further, the ratings factor in the stiff competition in the timber industry and the vulnerability of VLPL's profitability to volatility in timber prices and to foreign exchange fluctuation on the back of substantial imports. Key rating drivers Credit strengths Extensive experience of promoters in the timber industry - Incorporated in 2002, VLPL's operations are managed by the members of the Dubey family, who have more than two decades of experience in the timber business. Location-specific advantage - VLPL's facility is located at Gandhidham in Gujarat, which has been declared a timber zone by the Government. Further, a major part of its procurement is through imports. Thus, proximity to the Kandla port in Gujarat provides logistical advantage to the company. Regularisation in debt servicing - The company has been regular in making debt repayment to its lenders since the last four months (i.e. January 2019 - April 2019) owing to an improvement in its liquidity position. Credit challenges Weak financial risk profile characterised by leveraged capital structure and weak coverage indicators – Low value addition in timber sawing and trading business results in low operating margin (4.7% in FY2018) and net margin (0.9% in FY2018). VLPL's capital structure continues to remain leveraged, with a gearing of 2.3 times as on FY2018-end and 2.7 times as on FY2017-end. The debt coverage indicators remained weak with interest coverage of 1.4 times, TD/OPBIDTA of 4.3 times, DSCR of 1.3 times and NCA/TD of 6% as on FY2018-end as against interest coverage of 1.3 times, TD/OPBIDTA of 8.6 times, DSCR of 1.2 times and NCA/TD of 3% as on FY2017-end. Further, its operating income (OI) declined by 14% to INR37.8 crore in FY2019 (provisional numbers) from INR43.9 crore in FY2018. Stretched liquidity position - VLPL's working capital intensity increased substantially in FY2019 due to an increase in inventory holding to 97 days in FY2019 from 58 days in FY2018, leading to an increase in its working capital intensity as reflected by a NWC/OI of 31% as on FY2019-end compared to 20% as on FY2018-end. Limited production because of shortage of labour resulted in pile up of raw material inventory. The overall liquidity position remains tight with LC repayments due in the near term and limited cushion in the working capital limits, though normalisation in labour availability and expected receipt from debtors is likely to support its liquidity. Intense competition due to presence of numerous players – Timber sawing and trading is a low value-added business with stiff competition from numerous players operating in the fragmented industry, which keeps the margins under check. Exposure to Government regulations of the importing country; volatility in timber prices – A predominant share of VLPL's key raw material requirement, i.e. timber, is met through imports from New Zealand. This exposes the company to the risks associated with timber availability and adverse changes/restrictions in timber export policies by the Government of the timber-supplying countries. Vulnerability of profitability to adverse fluctuation in foreign currency exchange rate – Import constitutes a major part of VLPL's total purchase and the entity does not have any formal hedging policy for its forex risk. Hence, it remains exposed to the risk of adverse movement in forex rates with respect to its import payables. Liquidity position VLPL's fund flow from operations (FFO) turned positive to INR0.31 crore in FY2018 compared to FY2017. Its free cash flows (before debt repayment) turned positive due to lower incremental working capital requirement. The company's liquidity position is expected remain tight given two LC repayment in the near term and limited production because of shortage of labour leading to blocking of working capital. However, normalisation in availability of labour leading to an improvement in the conversion cycle of inventory to finished goods and the realisation of receivables are expected to support its liquidity. Incorporated in 2002, VLPL processes and trades timber logs and manufactures wooden pallets. It deals in radiate pine logs, which are mainly imported from New Zealand and Singapore. The plant is located at Gandhidham in Gujarat, which is close to the Kandla port. The company is promoted by the Dubey family, the key promoters being Mr. Swami Nath Dubey and his son Mr. Jay Kumar Dubey. The promoters have more than 25 years of experience in the timber business. In FY2018, VLPL reported a net profit of INR0.40 crore on an operating income (OI) of INR43.90 crore compared to a net profit of INR0.26 crore on an OI of INR36.72 crore in the previous year. Further, it achieved revenue of INR37.8 crore in FY2019 on a provisional basis. VEDAMATHA ENTERPRISES: ICRA Maintains D Rating in Not Cooperating ----------------------------------------------------------------- ICRA said the rating for the INR12.50 crore bank facilities of Vedamatha Enterprises Pvt Ltd continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term-Fund- 12.50 [ICRA]D ISSUER NOT based/Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Vedamatha Enterprises Pvt Ltd was incorporated in 2002, and is currently involved in the decorative laminations business as a distributor of Greenlam Industries Ltd for Bangalore, under a partnership firm named as "Vishaka Enterprises". The company also trades in silk sarees through its retail show room 'Devanad Silks' in Chichpet, Bangalore through a partnership firm named "Devanand Marketing". Since inception till June 2015, the company has been a distributor of HUL's FMCG products for the Bangalore City area. ZUARI AGRO: ICRA Lowers Rating on INR1000cr LT Loan to D -------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Zuari Agro Chemicals Limited (erstwhile Zuari Holdings Limited), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 260.0 Rating revised to [ICRA]D from [ICRA]BB (Negative) Long Term Fund 1000.0 Rating revised to [ICRA]D Based from [ICRA]BB (Negative) Long Term 465.0 Rating revised to [ICRA]D Unallocated from [ICRA]BB (Negative) limits Short Term non- 1980.0 Rating revised to [ICRA]D fund-based from [ICRA]A4 limits Short Term 510.0 Rating revised to [ICRA]D Unallocated from [ICRA]A4 Rationale The ratings downgrade is on account of the company's cash credit account remaining over utilised for more than 30 days owing to devolvement of a series of Letters of credit (LC) beginning April 2019 and continuing in May 2019. ZACL's liquidity position deteriorated materially in FY2019 driven by significant cash losses posted during the year and the delay in subsidy receipts from the GoI during April-May 2019. The company posted cash loss of ~INR174.0 crore in FY2019 which was driven by the agri-stress prevalent in parts of the operating territories of ZACL i.e. Northern Karnataka and the Marathwada region resulting in inability of the company to pass on the increase in raw material price to farmers along with a two-month long shutdown undertaken at the urea plant in Q3 FY2019. As a result, the company faced cash flow mismatches and was not able to meet the payment for the maturing Letters of Credit (LCs). The rating revision also factors in the reduced financial flexibility of the company. Key rating drivers Credit strengths Established track record of the company in fertiliser and other agri-businesses: ZACL has had an established track record in the fertiliser and other agri-business since 1967. ZACL through its subsidiaries and joint ventures is engaged in manufacturing of fertilisers, seeds, and other agri-inputs. Diversified product portfolio including urea, DAP and NPK complexes as well as traded products: ZACL is engaged in manufacturing of urea as well as DAP/NPK fertilisers at its Goa manufacturing facility along with water soluble fertilisers (WSF) and Single Super Phosphate (SSP) manufactured at other plants of the company. It also undertakes trading of various fertilisers to provide wide range of agri products to the farmers. ZACL also benefits from access to the DAP/NPK fertilisers manufactured by its JV Paradeep Phosphate Limited (PPL). Favourable long-term demand outlook for fertilisers in India due to scarcity of nutrients in the soil: Indian soil remains deficient in nutrient content which has resulted in lower agri-productivity. With increasing population, the demand for food will increase which will make productivity improvement imperative for the agri sector. Thus, the demand outlook for fertilisers remains positive in India. High operating efficiency of the plants, although the company has faced certain operational issues in recent years: Though ZACL's plants had faced operational issues in the past, the operational efficiency has improved over the last few years. Urea as well as DAP/NPK plant has shown healthy capacity utilisation in last few years. Urea plant has witnessed improving capacity utilisation and energy efficient operations post implementation of gas pooling for the fertiliser sector resulting in lowering of gas costs for ZACL. Strong marketing network and leading market position in Karnataka and Maharashtra: ZACL caters to the southern and western part of India and enjoys leading market position in Karnataka and Maharashtra. ZACL along with PPL enjoy a major part of the DAP/NPK market in south –western part of India and a strong marketing network. Credit challenges Vulnerability of profitability to agro-climatic conditions, regulatory risks and seasonality of the fertiliser business: Agriculture sector in India remains vulnerable to the vagaries of monsoon as the area under irrigation remains low which exposes fertiliser sector to volatility as well. The sector being highly regulated also remains vulnerable to changes in the regulations by GoI. Performance of non-urea fertilisers is relatively more vulnerable to regulatory and economic variables: Non-urea fertiliser demand is relatively more volatile as the preference for urea is driven by the price differential. In case of weak monsoon, the non-urea fertilisers have seen more impact on demand relative to that on urea. The domestic manufacturers are also affected by movement in international prices of end products as well as raw material which impact the profitability. Post implementation of Nutrient Based Subsidy (NBS) for P&K fertilisers, the price differential between urea and P&K fertilisers has widened which has adversely impacted demand for P&K fertilisers. The profitability of the companies depends on the movement of international prices of raw material as majority of these are imported. The ability of the company to pass on any increase in raw material prices to end-consumer through revision of retail price also plays a crucial role in protecting profitability which may be constrained by high level of stocks or poor monsoon etc. Imports expose ZACL to forex risk; partly mitigated by the hedging policy of the company: ZACL imports its entire requirement of phosphoric acid, ammonia and MOP for production of DAP/NPK fertiliser which exposes it to foreign exchange risks. The risk is however partly mitigated as the company leaves very small amount of its foreign exchange exposure as unhedged. Debt funded capex to meet energy norms under NUP-2015: ZACL will be undertaking significant debt funded capex to meet energy consumption norms applicable under NUP-2015 from FY2021 onwards. The capex for the project is around INR380 crore and is to be funded in a debt-equity ratio of 70:30. The capex is expected to keep the credit metrics subdued in the near term. Subdued capital structure characterised by low capitalisation, high debt and low core profitability: Capital structure of the company has weakened since demerger from Zuari Industries Limited. Low capitalisation, high debt due to subsidy receivable driven working capital borrowings along with weak core profitability over the past few years has resulted in weak capital structure. Going forward the debt funded capex will keep the capital structure subdued unless equity infusion is completed in a timely manner by the company. High working capital intensity due to subsidy delays and high trade receivables resulting in high borrowings: As the subsidy receivables from GoI continue to remain outstanding for as long as 4-5 months working capital borrowings to fund the receivables keep the borrowing levels elevated. The high receivable days also lead to high working capital intensity for the business and high interest costs for the company impacting profitability. MCF acquisition leading to cash outflow: ZACL had acquired 53.03% ownership in MCFL through its subsidiary Zuari Fertilisers & Chemicals Limited (ZFCL, now merge with ZACL) with a total cash outflow of INR510 crore. The acquisition was majorly debt funded and ZACL continues to service the debt leading to cash outflows in the form of interest and debt repayments. Liquidity Position: Liquidity position of the company has weakened materially owing to large loss posted by the company in FY2019 coupled with continued delay in the subsidy receivables from the GoI which has led to elongation of the working capital cycle. Owing to stretched liquidity position and weakening credit profile of the company, the financial flexibility of the company has weakened. While company is in the midst of fund-raising timely completion of the same will be a key monitorable for improvement in the liquidity position of the company. Zuari Agro Chemicals Limited (erstwhile Zuari Holdings Limited) constitutes the fertiliser operations of the Adventz Group following the demerger of Zuari Industries Limited (ZIL). It is also the holding company for the other agri-business operations of the Adventz Group. The group has interests in agri-inputs, engineering, infrastructure, real estate, consumer durables and services sectors. It was a part of the erstwhile K.K. Birla Group. In April 2011, the Bombay High Court (Goa bench) approved the demerger of ZIL's fertiliser business into Zuari Holdings Limited (later renamed as ZACL), while the residual entity ZIL (later renamed as Zuari Global Limited) retained the non-fertiliser business operations and investments. The demerger scheme was applicable w.e.f July 1, 2012. The erstwhile ZIL was promoted in 1967 in financial and technical collaboration between the K.K. Birla Group and the U.S. Steel Corporation to manufacture urea, compound nitrogenous fertilisers and phosphates in Goa. In 1985, ZIL promoted Chambal Fertilisers & Chemicals Limited (CFCL, rated [ICRA]A1+) to produce urea using natural gas at Gadepan, Rajasthan. In 2002, ZIL acquired Paradeep Phosphates Ltd (PPL - rated [ICRA]A(Stable)/[ICRA]A1) through a JV company, as part of the disinvestment process of GoI. PPL manufactures DAP and NPK fertilisers, with its plant located at Paradeep, Orissa. While the equity shareholding of ZIL in PPL is now held by ZACL (40.225% of entire shareholding of PPL through the JV company), the 13.3% shareholding of ZIL in CFCL continues to be held by ZGL. ZACL's plant is located in Goa and comprises of a urea plant of 0.4 MMTPA capacity, complex (NPK) plant of 0.36 MMTPA capacity and DAP-cum-Complex plant of 0.36 MMTPA capacity, which is capable of manufacturing a range of complexes. ZACL completed its feedstock conversion project and is now using gas as a feedstock for manufacturing urea (it was earlier using naphtha). For complexes and DAP, it uses imported ammonia and phosphoric acid. As of March 2019, 65.04% of the shareholding of ZACL was held by the promoter group, while the rest is held by domestic and foreign institutional investors and public. ========= J A P A N ========= AIFUL CORP: To Sell First Yen-Denominated Junk Bond in Public ------------------------------------------------------------- Bloomberg News reports that Aiful Corp., the consumer lender brought to the edge of bankruptcy a decade ago, is on the verge of selling Japan's first yen-denominated junk bond in the public markets, showing how local investors are willing to take on more risks as negative interest rates linger. According to Bloomberg, the issuance would be a milestone in Japan's bond market, where companies haven't felt compelled to sell speculative-grade notes as they've traditionally had close ties with banks, who can be more forgiving than bondholders in tough times. Aiful may price the 18-month yen bond with a coupon of about 1% by the end of this week. Few expect the offering to trigger a rush of similar junk bonds in Japan. But some recent changes have at least raised the possibility that the country could eventually develop such a market, Bloomberg says. Bloomberg says state-run Government Pension Investment Fund, which manages the world's largest such pool of assets, revised guidelines last year to allow it to buy yen bonds with ratings of BB or lower. Japanese debt investors, who are traditionally quite conservative, have only been slowly buying more bonds rated BBB in the past few years. Easing in investment criteria, together with an improvement in Aiful's own ratings, helped pave the way for the offering, Kinya Numata, a manager in the company's finance department, said in an interview. The company intends to use the proceeds from the planned bond sale for its lending business, he said. According to Bloomberg, Japan Credit Rating Agency raised Aiful's credit rating two levels to BB with a positive outlook in November, citing expectations that the company will be able to generate stable profits in the future as interest repayment claims decline. Aiful recorded a profit for the first time in a decade in the 12 months to March 31 after deducting costs related to such payments. Consumer lenders in Japan have been under siege since 2006, after a Supreme Court ruling ordered moneylenders to repay exorbitant interest charges on loans, and lawmakers capped how much they could charge, adds Bloomberg. Headquartered in Kyoto, Japan, Aiful Corporation -- http://www.ir-aiful.com/english/index.cfm-- provides financial service. The company is engaged in the provision of small-lot uncollateralized loan for individual consumers, business loan for individuals, as well as mortgage collateral and credit card services, in addition to the collection and management of debts. Other business activities the Company is involved in include the development, investment and nurture of venture companies, as well as the leasing of real estates. The Company has 29 subsidiaries and two associated companies. ===================== N E W Z E A L A N D ===================== CRYPTOPIA LTD: Gets Provisional Bankruptcy Protection in U.S. ------------------------------------------------------------- Stuff.co.nz reports that cryptocurrency exchange platform Cryptopia has been given provisional bankruptcy protection in the United States. The business is in liquidation in New Zealand, the report says. Now, United States' court documents show that an emergency motion has been granted that would protect the company from further claims by creditors as it works through liquidation in this country, Stuff relates. According to Stuff, experts have estimated funds worth almost NZ$30 million were stolen after the exchange suffered a security breach in mid-January. Stuff says Cryptopia still has tens of millions of dollars of digital assets that the liquidators are trying to collect to distribute to account-holders. They need to determine who owns what assets but that information is on servers run by a United States company that is reportedly terminating its agreement and demanding payment, Stuff states. Every Cryptopia account-holder is a potential creditor. In the first week of January, 2018, it had 1.4 million users. According to the report, liquidators Grant Thornton said the interim order preserved the Cryptopia account data. "Our objective is to protect and to preserve those holdings for the benefit of those entitled to them. We are seeking legal advice about our responsibilities in relation to the various currency holdings. "We expect that the process of recovering data and determining how to make distributions to account holders will take some months at least. We understand that this delay will be frustrating for account holders. For that reason, we are working to resolve these issues as soon as reasonably practicable." Stuff adds that the New Zealand liquidators said when they were appointed on May 15 that they were working with independent experts and the relevant authorities in terms of the company's obligations. Management had tried to cut costs and return the business to profitability, but it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders, they said. Cryptopia is a cryptocurrency exchange based in New Zealand. On May 15, 2019, David Ruscoe and Russell Moore from Grant Thornton were appointed as liquidators to wind up the company's affairs. Cryptopia Limited filed a Chapter 15 petition (Bankr. S.D. New York Case No. 19-11688) on May 24, 2019. Timothy E. Graulich, Esq., Davis Polk & Wardwell LLP, in New York, is the U.S. counsel. TROSKIE LIMITED: Event Management Firm Placed Into Liquidation -------------------------------------------------------------- Aimee Shaw at New Zealand Herald reports that an event management company owned by Max Key's friend and business partner Joshua Troskie has been placed into liquidation owing NZ$33,000. According to the Herald, Mr. Troskie voluntarily placed his company Troskie Limited into liquidation following filed court proceedings over a dispute regarding payment owed to Much More Music Limited, which operates a live music booking agency under the same number. Forensic accountants Peri Finnigan and Iain McLennan of McDonald Vague were appointed liquidators of Troskie Limited on May 24. The liquidators' first report is due out later this week. McDonald Vague insolvency manager Colin Sanderson told the Herald Much More Music Limited had made a statutory demand on the company, which Troskie did not agree with. "Whilst the director doesn't agree there is a debt owed he didn't dispute that so it went through the process and statutory demand wasn't met so proceedings were filed in the High Court to have the company wound up and when the company was served with a copy of that document they decided to appoint the liquidators themselves rather than wait for it to go through the court process," the report quotes Mr. Sanderson as saying. The company would be wound up and there were no plans to sell it on as a going concern as it had no assets, he said. "It's a very small liquidation by the looks of the information I have so far." Much More Music Limited is claiming NZ$37,000, including GST, Mr. Sanderson said, the Herald relays. The last day for creditors to make claims is July 5. Troskie Limited was established in August 2018 and ceased trading earlier this year. Max Key and Joshua Troskie set up Troskey, a DJ and music production group together in 2014. ********* 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, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. 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