/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100827.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, August 27, 2010, Vol. 13, No. 169 Headlines C H I N A CNC DEVELOPMENT: UHY Vocation HK Raises Going Concern Doubt KWG PROPERTY: Moody's Assigns 'B1' Rating on Senior Unsec. Bonds H O N G K O N G ACEVINYL PRODUCTS: Kong and Lo Appointed as Liquidators AMERY CONSTRUCTION: Kong and Lo Appointed as Liquidators ARTAKE DESIGN: Court Enters Wind-Up Order ASIATEX INTERNATIONAL: Kong and Lo Appointed as Liquidators BEPEAK LIMITED: Kong and Lo Appointed as Liquidators BEST CYCLE: Kong and Lo Appointed as Liquidators CHAMPION VANTAGE: Arboit and Blade Appointed as Liquidators CHUEN LEE: Ho and Kong Appointed as Liquidators CHOR LAU: Kong and Lo Appointed as Liquidators COUPLE DESIGN: Kong and Lo Appointed as Liquidators DAVINA PACKAGING: Court to Hear Wind-Up Petition on October 6 DEGREEASIA LIMITED: Court to Hear Wind-Up Petition on September 15 DESCHAMPS CATERING: Court Enters Wind-Up Order DIAMOND EARN: Kong and Lo Appointed as Liquidators DIGITAL NUNET: Kong and Lo Appointed as Liquidators DRAGON PALACE: Kong and Lo Appointed as Liquidators EARNSMATE LIMITED: Kong and Lo Appointed as Liquidators ETC ENVIRONMENTAL: Kong and Lo Appointed as Liquidators EVERMONT INT'L: Court to Hear Wind-Up Petition on October 13 FAITH DEE: Kong and Lo Appointed as Liquidators FIVE TOWNS: Kong and Lo Appointed as Liquidators FRIENDS OF MINE: Kong and Lo Appointed as Liquidators F.T. TRADING: Ho and Kong Appointed as Liquidators GLOBAL SUCCESS: Court to Hear Wind-Up Petition on September 15 HEMPSTONE LIMITED: Court to Hear Wind-Up Petition on September 1 I N D I A ALPEX EXPORTS: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts BANK OF INDIA: Fitch Affirms Individual Rating at 'C/D' CROWN STEEL: CRISIL Assigns 'BB' Rating to INR35 Mil. Cash Credit DELUXE COLD: CRISIL Rates INR400 Million Cash Credit at 'BB-' GANESH SPONGE: CRISIL Upgrades Rating on INR180MM Loan to 'BB-' KEDIA CARBON: CRISIL Reaffirms 'BB+' Rating on INR80MM Cash Credit M.A.K. (INDIA): CRISIL Rates INR98 Million Term Loan at 'D' MANISHRI REFRACTORIES: CRISIL Assigns 'B' Rating on Various Debts NARAYANI COKE: CRISIL Reaffirms 'BB-' Rating on INR14.7MM Loan PREGNA INT'L: CRISIL Reaffirms 'B+' Rating on INR3MM Term Loan RR ENERGY: CRISIL Reaffirms 'BB+' Ratings on Various Bank Debts SANATHAN INFRA: CRISIL Rates INR100 Mil. Cash Credit Limit at 'B+' SHAKTI PLASTIC: CRISIL Assigns 'D' Ratings to Various Bank Debts SHIRDI INDUSTRIES: CRISIL Cuts Rating on Bank Debts to 'C' SHREE BANKEY: CRISIL Rates INR1.25 Billion Cash Credit at 'BB-' SUJA SHOEI: CRISIL Reaffirms 'BB+' Rating on Various Bank Debts SWATHI COTTONS: CRISIL Assigns 'B+' Rating to INR147.4MM Term Loan TELU RAM: CRISIL Rates INR150 Million Cash Credit at 'BB-' VERDANT LIFE: CRISIL Assigns 'B' Rating to INR66MM Rupee Term Loan J A P A N GODO KAISHA: S&P Downgrades Ratings on Various Classes of Notes JAPAN AIRLINES: May Start Discount Carrier for Overseas Flights JAPAN AIRLINES: Sells Stakes in Passenger & Cargo Handling Units K O R E A HYUNDAI ENGINEERING: Hyundai Group Set to Reclaim Engineering Firm * South Korea to Disclose List of Troubled Universities Next Week M A L A Y S I A FOUNTAIN VIEW: Swings to MYR5.18 Million Loss in Qtr Ended June 30 HO HUP: Posts MYR4.04 Million Net Loss in Quarter Ended June 30 KENMARK INDUSTRIAL: Deloitte Appointed as Provisional Liquidator METECH GROUP: Classified as Affected Listed Issuer Under PN17 N E W Z E A L A N D ALLIED FARMERS: To Renegotiate Terms of Bank Facility With Westpac AORANGI SECURITIES: SFO to Reveal Next Step in Probe Next Week FIVE STAR: SFO Lays Over 100 Charges Against 4 Executives P H I L I P P I N E S PHILIPPINE AIRLINES: First Pacific Not Interested in PAL X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ========= C H I N A ========= CNC DEVELOPMENT: UHY Vocation HK Raises Going Concern Doubt ----------------------------------------------------------- CNC Development Ltd. filed on August 19, 2010, its annual report on Form 20-F, for the fiscal year ended December 31, 2009. UHY Vocation HK CPA Limited, in Hong Kong, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has only $1.6 million of working capital as of December 31, 2009, and is dependent on obtaining additional financing to execute its business plan. The Company reported a net loss of US$4.3 million on zero revenue for 2009, compared with net income of US$3.8 million on US$4.9 million of revenue for 2008. No revenue was recorded during the year ended December 31, 2009, because no project received final acceptance during that period. The Company's balance sheet as of December 31, 2009, showed US$25.4 million in total assets, US$30.8 million in total liabilities, and a stockholders' deficit of US$5.4 million. A full-text copy of the Form 20-F is available for free at: http://researcharchives.com/t/s?6a13 Based in Shanghai, the People's Republic of China, CNC Development Ltd. was, until the suspension of business operations in late 2009, engaged in providing services to municipal-government customers to integrate project design, implementation and financing for BT projects in the Peoples Republic of China. The address of CNC's U.S. agent, WHI, Inc., is 410 South Michigan Ave., Suite 620, Chicago, IL 60605. KWG PROPERTY: Moody's Assigns 'B1' Rating on Senior Unsec. Bonds ---------------------------------------------------------------- Moody's Investors Service has assigned a definitive B1 senior unsecured bond rating on the US$250 million 12.5% notes due 2017 issued by KWG Property Holding Limited. The definitive rating on this debt obligation confirms the provisional rating assigned on 3 August 2010. At the same time, Moody's has affirmed the company's Ba3 corporate family rating. The rating outlook is stable. Ratings Rationale "KWG's Ba3 corporate family rating reflects its strong brand name, in turn supported by its quality products and its diversified product range," says Peter Choy, a Moody's Vice President and Senior Credit Officer. "The ratings also recognize KWG's good operating track record for property development in the Mainland cities of Guangzhou, Chengdu and Suzhou," says Choy. "However, the ratings are constrained by the low geographic diversity apparent in its portfolio, with half of its land bank located in Guangzhou," says Choy. "The ratings also factor in the execution risk associated with the company's entry into new cities and the developing status of its offshore banking relationship." The bond rating has been notched down to B1 from Ba3, reflecting the risk of structural and legal subordination. The stable outlook reflects the company's current adequate liquidity position that will support its property development business in the next 12 -- 18 months. Upward rating pressure on the ratings could be limited in the near future. However, medium-term upgrade pressure may emerge if KWG (1) achieves its planned sales; (2) replicates its success in Guangdong Province in other Chinese cities; and (3) shows good financial discipline and expands cautiously while maintaining a sound liquidity profile and strong credit metrics. Moody's sees EBITDA/interest coverage consistently above 4-5x and adjusted debt leverage below 40% - 45% as indications of a potential rating upgrade. The ratings could undergo a downgrade if KWG (1) experiences a significant shortfall in sales; (2) materially increases its investment in projects but without a corresponding increase in cash inflow; (3) executes an aggressive land acquisition plan funded mainly by debt; and/or (4) shows evidence of material weakening of balance sheet liquidity. Moody's sees EBITDA/interest falling below 2.5 - 3.0x and adjusted debt leverage consistently above 50% as indications of a potential downgrade of the ratings. Moody's last rating action on KWG was taken on 3 August 2010, when Moody's assigned its first-time Ba3 corporate family and provisional (P)B1 bond ratings on its proposed US$ senior unsecured notes. KWG Property Holding Limited is a Chinese property developer. It listed on the Hong Kong Stock Exchange in July 2007. It operates in Guangzhou, Chengdu, Suzhou, Beijing and Hainan, developing mid- to-high end residential properties, office buildings, shopping malls and hotels. Regulatory Disclosures Information sources used to prepare the credit rating are these: parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service's information. Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating. Moody's Investors Service adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from reliable sources; however, Moody's Investors Service does not and cannot in every instance independently verify, audit or validate information received in the rating process. The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. ================ H O N G K O N G ================ ACEVINYL PRODUCTS: Kong and Lo Appointed as Liquidators ------------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Acevinyl Products Industrial Company Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong AMERY CONSTRUCTION: Kong and Lo Appointed as Liquidators -------------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Amery Construction Water Proofing Co. Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong ARTAKE DESIGN: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on August 11, 2010, to wind up the operations of Artake Design & Associates Limited. The official receiver is E T O'Connell. ASIATEX INTERNATIONAL: Kong and Lo Appointed as Liquidators ----------------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Asiatex International Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong BEPEAK LIMITED: Kong and Lo Appointed as Liquidators ---------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Bepeak Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong BEST CYCLE: Kong and Lo Appointed as Liquidators ------------------------------------------------ Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Best Cycle Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong CHAMPION VANTAGE: Arboit and Blade Appointed as Liquidators ----------------------------------------------------------- Messrs Bruno Arboit and Simon Richard Blade on August 6, 2010, were appointed as liquidators of Champion Vantage Limited. The liquidators may be reached at: Messrs Bruno Arboit Simon Richard Blade 1008 Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong CHUEN LEE: Ho and Kong Appointed as Liquidators ----------------------------------------------- Ho Man Kit Horace and Kong Sze Man Simone said in notice dated August 20, 2010, they have been appointed by the High Court of Hong Kong as joint and several liquidators of Chuen Lee Industrial Limited. The High Court entered an order on June 18, 2010, to wind up the operations of Chuen Lee Industrial Limited. The company's liquidators are Ho Man Kit Horace and Kong Sze Man Simone. CHOR LAU: Kong and Lo Appointed as Liquidators ---------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Chor Lau Heung Restaurant Company Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong COUPLE DESIGN: Kong and Lo Appointed as Liquidators --------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of The Couple Design & Production Company Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong DAVINA PACKAGING: Court to Hear Wind-Up Petition on October 6 ------------------------------------------------------------- A petition to wind up the operations of Davina Packaging Company Limited will be heard before the High Court of Hong Kong on October 6, 2010, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on August 3, 2010. The Petitioner's solicitors are: Chu & Lau 2nd Floor, The Chinese General Chamber of Commerce Building No. 24-25 Connaught Road Central, Hong Kong DEGREEASIA LIMITED: Court to Hear Wind-Up Petition on September 15 ------------------------------------------------------------------ A petition to wind up the operations of Degreeasia Limited will be heard before the High Court of Hong Kong on September 15, 2010, at 9:30 a.m. Nanyang Commercial Bank Limited filed the petition against the company on July 14, 2010. The Petitioner's solicitors are: Anthony Chiang & Partners 3903 Tower 2, Lippo Centre 89 Queensway Central Hong Kong DESCHAMPS CATERING: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order on August 11, 2010, to wind up the operations of Deschamps Catering Company Limited. The official receiver is E T O'Connell. DIAMOND EARN: Kong and Lo Appointed as Liquidators -------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Diamond Earn Investments Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong DIGITAL NUNET: Kong and Lo Appointed as Liquidators --------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Digital Nunet Exchange Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong DRAGON PALACE: Kong and Lo Appointed as Liquidators --------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Dragon Palace International Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong EARNSMATE LIMITED: Kong and Lo Appointed as Liquidators ------------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Earnsmate Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong ETC ENVIRONMENTAL: Kong and Lo Appointed as Liquidators ------------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of ETC Environmental Technology Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong EVERMONT INT'L: Court to Hear Wind-Up Petition on October 13 ------------------------------------------------------------ A petition to wind up the operations of Evermont International Limited will be heard before the High Court of Hong Kong on October 13, 2010, at 9:30 a.m. Bulkhandling Handymax AS filed the petition against the company on August 9, 2010. The Petitioner's solicitor is: Stephen Harwood 35th Floor, Bank of China Tower 1 Garden Road Central, Hong Kong FAITH DEE: Kong and Lo Appointed as Liquidators ----------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Faith Dee Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong FIVE TOWNS: Kong and Lo Appointed as Liquidators ------------------------------------------------ Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Five Towns Development Company Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong FRIENDS OF MINE: Kong and Lo Appointed as Liquidators ----------------------------------------------------- Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were appointed as liquidators of Friends of Mine Group Limited. The liquidators may be reached at: Mr. Kong Chi How Johnson Mr. Lo Siu Ki 25/F, Wing On Centre 111 Connaught Road Central, Hong Kong F.T. TRADING: Ho and Kong Appointed as Liquidators -------------------------------------------------- Ho Man Kit Horace and Kong Sze Man Simone said in notice dated August 20, 2010, they have been appointed by the High Court of Hong Kong as joint and several liquidators of F.T. Trading (H.K.) Limited. The High Court entered an order on May 26, 2010, to wind up the operations of F.T. Trading (H.K.) Limited. The company's liquidators are Ho Man Kit Horace and Kong Sze Man Simone. GLOBAL SUCCESS: Court to Hear Wind-Up Petition on September 15 -------------------------------------------------------------- A petition to wind up the operations of Global Success Technology Limited will be heard before the High Court of Hong Kong on September 15, 2010, at 9:30 a.m. The Government of the Hong Kong Special Administrative Region acting by and/or through the Secretary for Justice filed the petition against the company on June 24, 2010. HEMPSTONE LIMITED: Court to Hear Wind-Up Petition on September 1 ---------------------------------------------------------------- A petition to wind up the operations of Hempstone Limited will be heard before the High Court of Hong Kong on September 1, 2010, at 9:30 a.m. Lam Charm and Wong Sek Tung filed the petition against the company on June 28, 2010. The Petitioner's solicitor is: Poon & Cheung 21st Floor, V. Heun Building 138 Queen's Road Central, Hong Kong ========= I N D I A ========= ALPEX EXPORTS: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Alpex Exports Private Limited continue to reflect AEPL's limited financial flexibility arising out of significant investments in the solar panel business, and vulnerability of operating margins to volatility in the value of the Indian rupee. The impact of the rating weaknesses are mitigated by the benefits that AEPL derives from the industry experience of its promoters, and its moderate financial risk profile. Facilities Ratings ---------- ------- INR10.0 Million Cash Credit BB/Stable (Reaffirmed) INR70.0 Million Term Loan BB/Stable (Reaffirmed) INR20.0 Million Proposed LT Bank BB/Stable (Reaffirmed) Loan Facility INR75.0 Million Letter of Credit P4+ (Reaffirmed) Outlook: Stable CRISIL believes that AEPL will maintain a stable credit risk profile over the medium term backed by the industry experience of its promoters and its moderate financial risk profile. The outlook may be revised to 'Positive' if it manages its working capital requirements effectively, leading to better liquidity position and improve its operating margins. Conversely, the outlook may be revised to 'Negative' in case AEPL generates lower- than-expected revenues from the solar panel business, or the company undertakes large, debt-funded capital expenditure or its working capital requirements increase significantly, thereby weakening its capital structure and liquidity. Update AEPL's is estimated to report revenues of around INR520 million during 2009-10 (refers to financial year, April 1 to March 31), higher then CRISIL's expectation, primarily due to higher sales contribution from its solar panel business; which started commercial production in November 2009. AEPL's margins were also in-line with expectations at 14 per cent. However, gearing remains high at 1.08 times, primarily due to increased debt to fund the working capital requirements; thus the ratings remain constrained at current level. AEPL is also in the process of increasing the capacity of its solar panel plant by 25% at an approx. cost of INR30 million, which it expects to fund entirely from internal accruals. The plant is expected to come online by the end of 2011-12. AEPL is estimated to report a book profit of INR22.2 million on net sales of INR520 million for 2009-10, against a book profit of INR23.6 million on net sales of INR325 million in 2008-09. About Alpex Exports AEPL, incorporated in 1993, trades in textile products, including creora (lycra) spandex, Samsung knitting needles, and nylon and polyester yarns. The company installed two wind mills of 0.75 mega watt (MW) each in Tamil Nadu for which it has an energy purchase agreement with Tamil Nadu Electricity Board. AEPL diversified its operations into manufacturing and exporting solar panels, the commercial production of which commenced in November 2009. The plant, a 100 per cent export-oriented unit (EOU), located in Himachal Pradesh, has manufacturing capacity of 15 MW. BANK OF INDIA: Fitch Affirms Individual Rating at 'C/D' ------------------------------------------------------- Fitch Ratings has affirmed Bank of India's Individual rating at 'C/D' and Support rating at '2'. BOI's Individual rating is driven by its strong domestic franchise and satisfactory financial profile amongst Indian banks. Its asset quality worsened in FY10 compared to other large Indian government banks due to a few issuer concentrations. However, BOI's NPL trends are expected to normalize over the medium-term. BOI's capitalization ratios have improved since FY09, which gives it some cushion for any further asset quality deterioration. The Individual rating could be affected if asset quality problems were to persist, leading to a sustained underperformance compared to the banking system. BOI's Support rating has been affirmed at '2' given its systemic importance of being the fifth-largest bank in India with a national presence and deposits market share of close to 4.5%, together with the majority government ownership. The bank was adequately capitalized with Tier 1 ratio of 8.5% in FY10, though the bank's hybrid capital instruments (12.6% of Tier 1 capital) have somewhat diluted its capital quality over the last three years. With a government holding of 64.5%, the bank has adequate headroom to raise common equity from the market before it reaches statutory minimum of 51%. BOI's gross NPL ratio soared to 2.7% at end-June 2010 (FY09: 1.8%), mainly due to high delinquencies (22%) from restructured loans. Its asset quality could deteriorate over the short-term as its restructured loans (classified as standard and constitute 3.1% of its total loans in FY10) mature in FY11 along with the tightening of interest rates. The bank expects to meet minimum (70%) regulatory loan loss reserve coverage ratio (68% at end-June 2010) by end-September 2010. BOI's profitability (FY10 return on assets: 0.7%; FY09: 1.5%) deteriorated in FY10 due to a contraction in its net interest margins and an increase in its credit costs. The trend of NIM contraction is expected to reverse in FY11 as credit growth picks up and the bank replaces its lower yielding investments with loans. However, the increased credit costs are expected to put pressure on BOI's profitability. Thanks to BOI's pan-India deposit franchise and its position as a government bank, around 70% of its term deposits are retail and relatively sticky. Its liquidity is also supported by holding of government securities (above regulatory minimum of 25% of net demand and time liabilities; 30% as at end-September 2009). BOI has a strong national presence with a network of 3236 branches, which is planned to be expanded to 3500 by FY11. It conducts international business (FY10: 17% of assets) on the back of India trade through its 25 overseas branches. CROWN STEEL: CRISIL Assigns 'BB' Rating to INR35 Mil. Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of Crown Steel Co. Facilities Ratings ---------- ------- INR35.0 Million Cash Credit Facility BB/Stable (Assigned) INR225.0 Million Letter of Credit P4+ (Assigned) The ratings reflect CSC's small scale of operations and constrained financial flexibility, and the firm's exposure to risks related to intense competition and cyclicality in the ship breaking industry, and its susceptibility to adverse changes in government regulations. These rating weaknesses are partially offset by the benefits that CSC derives from its promoters' experience in the ship breaking industry. Outlook: Stable CRISIL believes that CSC will continue to benefit over the near term from the promoters' experience in the ship breaking industry and healthy growth prospects of the ship-breaking industry in the near term. The outlook may be revised to 'Positive' if CSC generates more-than-expected sales and profits. Conversely, the outlook may be revised to 'Negative' in case CSC's margins decline sharply, most likely because of a sharp decline in steel scrap prices, or if the firm fails to recover the cost of ship purchase. About Crown Steel Set up in 1982 as a partnership firm by Mr. Arvindbhai Shah, Mr. Sagarmal Shah, Mr. Rameshbhai Shah, and Mr. Kalpeshbhai Shah, CSC in engaged in the ship breaking business at its 45-meter plot in Alang (Gujarat). The firm diversified into trading in seamless pipes in 2004-05 (refers to financial year, April 1 to March 31). Mr. Kalpeshbhai Shah resigned from partnership in September 2009 and his stake (15 per cent) was acquired by Mr. Arvindbhai Shah. CSC reported a book profit of INR6.1 million on net sales of INR96.9 million for 2008-09, against a book profit of INR0.9 million on net sales of INR37.4 million for 2007-08. DELUXE COLD: CRISIL Rates INR400 Million Cash Credit at 'BB-' ------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to the cash credit facility of Deluxe Cold Storage and Food Processors Ltd, which is part of the Shree Bankey Behari group. Facilities Ratings ---------- ------- INR400.0 Million Cash Credit BB-/Stable (Assigned) The rating reflects the Shree Bankey Behari group's below-average financial risk profile, marked by moderate net worth, high gearing, and weak debt protection metrics (because of large working capital requirements); financial risk profile is likely to come under pressure due to large debt-funded capital expenditure [capex]). The rating also reflects the group's exposure to intense competition in the agricultural commodities industry, subdued margins because of low value-addition in its products, and its susceptibility to volatility in input prices and adverse regulatory changes. These rating weaknesses are partially offset by experience of the group's established market position in the agricultural commodities business. For arriving at its rating, CRISIL has combined the business and financial risk profiles of DCSFPL, Shree Bankey Behari Exports Ltd (SBBEL), and the proprietorship firm Telu Ram Amar Chand & Company(TRAC). This is because the three entities, collectively referred to as the Shree Bankey Behari group, are in the same line of business, have common promoters and management team, and significant operational and financial inter-linkages. Outlook: Stable CRISIL believes that the Shree Bankey Behari group's financial risk profile will remain weak over the medium term, driven by low profitability and large capex plans. However, the group will continue to maintain its established position in the pulses and wheat processing business, and benefit from its promoters' extensive experience. The outlook may be revised to 'Positive' if the group's financial risk profile improves, driven most likely by substantial equity infusion or larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in the group's proposed project, or more- than-expected deterioration in financial risk profile, driven most likely by large working capital requirements. About the Group DCSFPL was incorporated as a private limited company in 1984, and reconstituted as a public limited company (closely held) in 1993. The company processes wheat products, such as wheat flour (maida) and its by-products, such as semolina (suji), and unrefined wheat flour (atta). It has a unit at Lawrence Road in Delhi, which has a capacity to process around 500 tonnes per day (tpd). SBBEL was incorporated in June 1994. The company processes raw gram seed to produce gram pulses (dal) and gram flour (besan). The company has 10 mills in Delhi, with a combined capacity to process around 700 tpd. TRAC, set up in 1998, is the proprietorship firm of Mr. Amar Chand Gupta. The firm trades in agricultural products, such as wheat, gram, and flour. The firm sources wheat, flour, and grain from local suppliers and its group companies. It also procures gram and wheat on behalf of its group companies. The firm runs four retail shops at Naya Bazaar in Delhi. Shree Bankey Behari group's profit after tax (PAT) and net sales are estimated to be INR23.00 million and INR7.37 billion, respectively, for 2009-10 (refers to financial year, April 1 to March 31); the group reported a PAT of INR13.50 million on net sales of INR6.54 billion for 2008-09. GANESH SPONGE: CRISIL Upgrades Rating on INR180MM Loan to 'BB-' --------------------------------------------------------------- CRISIL has upgraded its rating on the bank loan facilities of Ganesh Sponge Pvt Ltd to 'BB-/Stable' from 'B+/Stable'. Facilities Ratings ---------- ------- INR140.0 Million Cash Credit BB-/Stable (Upgraded from (Enhanced from INR103.0 Million) 'B+/Stable') INR180.0 Million Term Loan BB-/Stable (Upgraded from (Enhanced from INR127.0 Million) 'B+/Stable') The rating upgrade follows the successful commissioning of fresh capacities by GSPL at its plant in March 2010. The upgrade factors in GSPL's stable topline growth and sustained profitability over the past three years ? topline has grown at a compound annual growth rate (CAGR) of over 36 per cent between 2007-08 (refers to financial year, April 1 to March 31) and 2009- 10, and operating profit margin was over 15 per cent on an average during the same period. The upgrade also reflects CRISIL's belief that GSPL will maintain profitability at current levels over the medium term, supported by stabilisation of operations at the newly commissioned capacities, steady topline growth, and absence of any large debt-funded capital expenditure (capex) plan. The rating reflects GSPL's marginal market share, susceptibility to downtrends in industry, below-average financial risk profile marked by low networth base, high gearing and inadequate debt protection metrics and lack of integrated operations. These rating weaknesses are partially offset by the benefits that GSPL derives from its moderate business risk profile, marked by continuous capacity additions and location advantage. Outlook: Stable CRISIL believes that GSPL will maintain its moderate business risk profile over the medium term, supported by its location advantage and established relationships with suppliers and customers. The outlook may be revised to 'Positive' if GSPL generates more-than- expected revenues or integrates its operations. Conversely, the outlook may be revised to 'Negative' if GSPL's operating margin declines steeply because of lower-than-expected capacity utilisation, or its capital structure weakens because of larger- than-expected debt-funded capex. About Ganesh Sponge GSPL was incorporated in 2004. The company manufactures sponge iron at its plant in Angul, Orissa, which has capacity of 90,000 tonnes per annum. Mr. S K Dalmiya is the current chairman and his son, Mr. Vikash Dalmiya, is the managing director of the company. GSPL was acquired from its previous promoters, the Agarwal family in March 2008. The company's manufacturing unit is located close to raw material sources. After the acquisition two kilns were added, one in 2009 and other in 2010. GSPL reported, on a provisional basis, a profit after tax (PAT) of INR10.0 million on net sales of INR509.0 million for 2009-10, against a PAT of INR35.0 million on net sales of INR368.0 million for 2008-09. KEDIA CARBON: CRISIL Reaffirms 'BB+' Rating on INR80MM Cash Credit ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Kedia Carbon Pvt Ltd continue to reflect KCPL's average financial risk profile, marked by a low net worth and, modest gearing and debt protection measures. Facilities Ratings ---------- ------- INR80.0 Million Cash Credit Limit BB+/Stable (Reaffirmed) INR30.00 Million Bank Guarantee P4+ (Reaffirmed) The ratings also factor in the company's exposure to risks relating to the cyclicality of its end-user industries. These weaknesses are partially offset by KCPL's established relationships with its reputed customers and suppliers. Outlook: Stable CRISIL believes that KCPL will maintain a stable business risk profile over the medium term on the back of its established relations with its suppliers and customers. The company's financial risk profile may, however, remain constrained by large working capital requirements. The outlook may be revised to 'Positive' if KCPL's profitability and debt protection measures improve significantly. Conversely, the outlook may be revised to 'Negative' if KCPL's profitability declines on account of pricing pressures from end-user industries, or if the company undertakes a large, debt-funded capital expenditure programme. About Kedia Carbon KCPL, incorporated by Mr. Mahesh Kumar Kedia and family in 2003, manufactures coal tar pitch, and trades in this material's by- products such as creosote oil and naphthalene. The company's manufacturing facilities are located in Rourkela (Orissa) with a coal tar distillation capacity of 80,000 tonnes per annum (tpa). The company proposes to enhance its capacity to 96,000 tpa by 2011-12 (refers to financial year, April 1 to March 31). KCPL, reported on a provisional basis, a profit after tax (PAT) of INR7.7 million on net sales of INR535.7 million for 2009-10 (refers to financial year, April 1 to March 31). It had reported a PAT of INR6.6 million on net sales of INR550.0 million for 2008- 09. M.A.K. (INDIA): CRISIL Rates INR98 Million Term Loan at 'D' ----------------------------------------------------------- CRISIL has assigned its 'D' rating to M.A.K. (India) Chemicals Ltd's term loan facility. The rating reflects delay by MAK in servicing its term loan; the delay has been caused by MAK's weak liquidity. Facilities Ratings ---------- ------- INR98.0 Million Term Loan D (Assigned) MAK has a below-average financial risk profile, marked by high gearing, weak debt protection metrics, and a small net worth. It is also exposed to customer concentration in its revenue profile. However, MAK benefits from its promoter's experience in the tyre industry and established relationships with its customer: Birla Tyres, a unit of Kesoram Industries Ltd MAK (formerly, Prem Prakash Aromatics Ltd) was incorporated in 1995 by Mr. Mahesh Rai. However, the company was not operational till 2007-08 (refers to financial year, April 1 to March 31). In 2008, MAK started implementing a project for manufacturing flaps and tyre tubes exclusively for Birla Tyres, a unit of Kesoram Industries Ltd, at its facilities in Kashipur (Uttrakhand). The company commenced commercial production of flaps in January 2009 and tyre tubes in October 2009. Currently, the company has a capacity to produce around 0.15 million flaps and 0.3 million tubes per month. It plans to increase its capacity to around 0.25 million flaps and 0.6 million tubes per month by October 2010. Around 70 per cent of tubes manufactured by MAK are utilized for two-wheelers, while the remainder find application in other vehicles. The company manufactures flaps only for light commercial vehicles. MAK reported an estimated profit after tax (PAT) of INR4.7 million on net sales of INR67.9 million for 2009-10 (refers to financial year, April 1 to March 31), against loss of INR2.7 million on net sales of INR7.4 million for 2008-09. MANISHRI REFRACTORIES: CRISIL Assigns 'B' Rating on Various Debts ----------------------------------------------------------------- CRISIL has assigned its 'B/Stable/P4' ratings to the bank facilities of Manishri Refractories & Ceramics (Pvt) Ltd. Facilities Ratings ---------- ------- INR86 Million Letter of Credit B/Stable (Assigned) INR170 Million Term Loan B/Stable (Assigned) INR50 Million Bank Guarantee P4 (Assigned) INR30 Million Letter of Credit P4 (Assigned) INR50 Million Capex Letter of Credit P4 (Assigned) INR2 Million Proposed Short-Term Bank P4 (Assigned) Loan Facility The ratings reflect Manishri's exposure to risks related to working-capital-intensive nature of operations and to project implementation. These rating weaknesses are partially offset by the benefits that Manishri derives from its promoters' experience in the refractory industry. Outlook: Stable CRISIL believes that Manishri will continue to benefit from its promoter's extensive experience in the refractory industry over the medium term. The outlook may be revised to 'Positive' if the company reports significant growth in revenues, or improvement in its financial risk profile, driven by improvement in operating profitability. Conversely, the outlook may be revised to 'Negative' if Manishri's operating profitability declines, or if there are further delays in implementation of the capacity expansion project, leading to deterioration in the company's liquidity or financial risk profile. About Manishri Refractories Manishri was set up as a proprietorship firm by the Late Mr. B C Mohanty in 1972. In 1991, it was reconstituted as a private limited company. The company manufactures alumina silicate refractories products, with current installed capacity of 24,000 tonnes per annum (tpa), at its facility in Madhupatna (Orissa). Manishri's main competitors are Orissa Cement Ltd and Sarvesh Refractories Ltd (rated 'D' by CRISIL). Manishri's day-to-day operations are looked after by the company's managing director, Mr. Biswajit Mohanty (son of Mr. B C Mohanty), and his brother, Mr. Satyajit Mohanty. The promoters are currently increasing Manishri's installed capacity to 48,000 tpa from the existing 24,000 tpa. Manishri's profit after tax (PAT) and net sales are estimated to be INR15.6 million and INR490.7 million respectively for 2009-10, against a PAT of INR8.9 million on net sales of INR286.9 million reported for 2008-09. NARAYANI COKE: CRISIL Reaffirms 'BB-' Rating on INR14.7MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Narayani Coke Pvt Ltd continue to reflect NCPL's weak financial risk profile, marked by a low net worth and weak debt protection measures, limited financial flexibility owing to the low net worth, and exposure to risks relating to the cyclicality inherent in the end-user steel industry. These weaknesses are partially offset by the benefits that NCPL derives from its promoter's established track record in the coke industry. Facilities Ratings ---------- ------- INR35.0 Million Cash Credit Limit BB-/Stable (Reaffirmed) INR14.7 Million Term Loan BB-/Stable (Reaffirmed) INR190.0 Million Letter of Credit P4+ (Reaffirmed) Outlook: Stable CRISIL believes that NCPL will continue to benefit from its promoter's experience in the coke industry and its reputed customer base, over the medium term. The outlook may be revised to 'Positive' in case the company reports higher-than-expected revenue growth and profitability. Conversely, the outlook may be revised to 'Negative' if NCPL faces significant delay in recovery of dues, or undertakes a large, debt-funded capital expenditure programme. Update NCPL maintained its financial risk profile in 2009-10 (refers to financial year, April 1 to March 31), with the gearing estimated at 0.9 times as on March 31, 2010. The company has also maintained its business risk profile with a 25 per cent year-on-year growth in topline, though it posted a lower-then-expected operating margin. NCPL plans to enhance its low-ash metallurgical (LAM) coke manufacturing capacities by 25,000 tonnes per annum (tpa) during the current year. As the expansion is to be funded entirely from internal accruals and unsecured loans from promoters, the company is expected to maintain its financial risk profile at current levels. NCPL is estimated to report a profit after tax (PAT) of INR3.3 million on provisional net sales of INR360.8 million for 2009-10, against a PAT of INR2.5 million on net sales of INR287.6 million for 2008-09. About Narayani Coke NCPL was incorporated in 2003, and commenced operations in July 2004. Owing to lack of bank funding, the company's operations were stopped in March 2005; it resumed operations in September 2006. NCPL has an installed capacity to manufacture 50,000 tpa of LAM coke at its manufacturing facility in Kutch (Gujarat). PREGNA INT'L: CRISIL Reaffirms 'B+' Rating on INR3MM Term Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Pregna International Ltd continue to reflect Pregna's weak financial risk profile, marked by a low net worth and large working capital requirements, and small scale of operations. These weaknesses are partially offset by the benefits the company derives from its established presence and leadership position in the intra-uterine devices (IUD) segment. Facilities Ratings ---------- ------- INR71.0 Million Proposed LT Bank B+/Stable Facility (Enhanced from INR37.5 Mil.) INR3.0 Million Term Loan B+/Stable (Reaffirmed) (Reduced from INR12.0 Million) INR41.5 Million Cash Credit B+/Stable (Reaffirmed) INR12.5 Million Letter of Credit P4 (Reaffirmed) (Reduced from INR25.0 Million) INR12.0 Million Bank Guarantee P4 (Reaffirmed) (Reduced from INR24.0 Million) Outlook: Stable CRISIL believes that Pregna will continue to benefit from its established position in the IUD segment, over the medium term. The outlook may be revised to 'Positive' in case of significant growth in Pregna's revenues and cash accruals. Conversely, the outlook could be revised to 'Negative' if the company's performance remains weak over the near to medium term, or if it undertakes a significant, debt funded capital expenditure (capex) programme that adversely impacts its financial risk profile. Update Pregna's performance during 2009-10 (refers to financial year, April 1 to March 31) was adversely impacted because of cancellation of tendering process for supplying laparoscopes. As a result, the laparoscope division incurred significant losses, and the company's overall revenues registered an estimated year-on- year decline of 21 per cent. While the revenues and profitability from IUDs and other contraceptive devices were healthy and in line with past trends, they were not strong enough to cover the losses incurred in the laparoscope division. This division's performance may remain weak in 2010-11, with no new tenders on the anvil; however, losses are expected to be lower because of reduction in the division's staff strength. Pregna had a healthy order book of about INR43 million for export of IUDs as on June 30, 2010. The company has received an order of about INR39 million from the Ministry of Health and Welfare, Government of India, for supplying contraceptive devices; this is expected to boost the company's profitability over the near term. The company has deferred its capex plans for constructing a new facility to manufacture oral contraceptive pills because of insufficient cash accruals; the plans are expected to be implemented only after the cash accruals improve substantially. For 2009-10, on a provisional basis, Pregna reported a net loss of INR4.1 million on net sales of INR96.4 million. It had reported a PAT of INR3.1 million on net sales of INR121.6 million for 2008- 09. About the Company Set up in 1996 by Mr. Rameshchandra Taparia, Pregna manufactures contraceptive devices, including IUDs, tubal rings, and laparoscopes. These are sold mainly through government and donor organisations, social marketing, and private parties. Laparoscopes are sold domestically, while the other products are mainly exported. RR ENERGY: CRISIL Reaffirms 'BB+' Ratings on Various Bank Debts --------------------------------------------------------------- CRISIL's ratings on the bank facilities of RR Energy Pvt Ltd continue to reflect RREPL's susceptibility to volatility in power selling rates and raw material prices, and exposure to risks related to its large, proposed capital expenditure (capex). The financial risk profile of the company is estimated to deteriorate, over the medium term, because of capex. These rating weaknesses are partially offset by RREPL's healthy financial risk profile, marked by low gearing and healthy cash accruals, and the benefits that the company derives from its substantial sale of power under open access. Facilities Ratings ---------- ------- INR269.60 Million Term Loan BB+/Stable (Reaffirmed) INR21.00 Million Cash Credit BB+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that RREPL will maintain its financial risk profile, backed by its healthy net cash accruals and moderate net worth, over the medium term. The outlook may be revised to 'Positive' if RREPL derives benefits from its proposed capex leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company generates lower-than-expected profitability, its exposure to group companies increases from the current levels, or it undertakes larger-than- expected capex programme, leading to deterioration in its capital structure. About RR Energy RREPL, incorporated in 2004, has a 15 mega watt (mw) power plant in Raigarh, Chhattisgarh. Initially the company generated power from biomass and had entered into a power purchase agreement with Chhattisgarh State Electricity Board (CSEB) to supply electricity (generated from biomass) for ten years at the rate of INR3.14 per unit. However, because of lower prices and delays in receipt of payments, the company terminated the contract with the state board in November 2008. RREPL converted its plant from a complete biomass unit to a mix of biomass and thermal power unit. The company increased the units' combined load to 132 kilovolt (kV) from 33 kV in November 2008. The company was also awarded open access license for supplying power. RREPL's clientele currently comprises CSEB and power traders under open access. The company plans to set-up a 25 mw coal-based power plant, a ferro-alloys plant of 30,000 tonnes per day (tpa), and a coal washing unit in Raigarh, Chhattisgarh. RREPL has acquired 25 per cent stake in manganese ore mines in South Africa. RREPL reported a profit after tax (PAT) of INR66 million on net sales of INR503 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR115 million on net sales of INR540 million for 2008-09. SANATHAN INFRA: CRISIL Rates INR100 Mil. Cash Credit Limit at 'B+' ------------------------------------------------------------------ CRISIL has assigned its 'B+/Negative' rating to the cash credit facility of Sanathan Infrastructure and Developers Pvt Ltd, which is part of the Sanathan group. Facilities Ratings ---------- ------- INR100.00 Million Cash Credit Limit B+/Negative (Assigned) The rating reflects the Sanathan group's limited track record, geographically concentrated revenue profile, and below-average financial risk profile, marked by weak debt protection metrics and high gearing. These rating weaknesses are partially offset by the group's promoters' extensive experience in the civil construction industry. For arriving at its rating, CRISIL has combined the business and financial risk profiles of SIDPL and its subsidiary Seguro Infrastructure Pvt Ltd. This is because both the companies, together referred to as the Sanathan group, are in same line of business, share a common management, and have financial and operational linkages. Outlook: Negative CRISIL believes that the Sanathan group's liquidity will deteriorate over the medium term because of incremental working capital requirements against its already weak capital structure. The rating may be downgraded if the group faces time or cost overruns in its maiden project, thereby adversely affecting its profitability and prospective orders. Conversely, the outlook may be revised to 'Stable' if SIDPL generates higher-than-expected profitability and improves its capital structure. About the Group Set up in 2008 by Mr. K J Paul, Mr. Vishwanathan Arangath, and Mr. P J Jacob, SIDPL is into civil construction works. SIDPL commenced works on its maiden Chamravattom project in October 2009. The project was sub-contracted by Ramky Infrastructure Ltd to SIDPL for around INR1190 million. The project involves construction of regulator-cum-bridge (including mechanical and electrical works) at Chamaravattom across the Bharathapuzha River in Kerala. The project is expected to be completed by May 2011. SIDPL had floated a 50-per-cent subsidiary, Seguro, along with two leading civil contractors of Kerala, as a specialist in the niche segment of piling in the civil construction industry. In 2009-10 (refers to financial year, April 1 to March 31), Seguro invested INR75 million to acquire two piling rigs. SHAKTI PLASTIC: CRISIL Assigns 'D' Ratings to Various Bank Debts ---------------------------------------------------------------- CRISIL has assigned its 'D' rating to Shakti Plastic Industries' bank facilities. The rating reflects delay by SPI in servicing its term loan; the delay has been caused by SPI's weak liquidity. Facilities Ratings ---------- ------- INR20.0 Million Cash Credit Facility D (Assigned) INR30.0 Million Term Loan D (Assigned) INR15.0 Million Proposed Long-Term D (Assigned) Bank Loan Facility SPI's large, ongoing capital expenditure (capex) programme is likely to weaken its financial risk profile. The firm's scale of operations remains small. However SPI benefits from its promoters' extensive industry experience. SPI, a partnership firm set up in 1970 by the late Mr. Vishwanath Podar, manufactures recycled plastic granules. It has its main manufacturing unit in Palghar (Maharashtra) and also has a second unit in Tamil Nadu for procurement and processing of waste plastic. The firm is currently implementing a capacity expansion programme in its Palghar unit at an estimated cost of INR43 million. SPI reported a profit after tax (PAT) of INR1.5 million on net sales of INR69.6 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of INR1.1 million on net sales of INR64.1 million for 2007-08. SHIRDI INDUSTRIES: CRISIL Cuts Rating on Bank Debts to 'C' ---------------------------------------------------------- CRISIL has downgraded the rating assigned to the bank facilities of Shirdi Industries Ltd to 'C/P4' from 'BB+/Stable/P4+'. Facilities Ratings ---------- ------- INR1251.0 Million Cash Credit C (Downgraded from (Enhanced from INR400 Million) 'BB+/Stable') INR1222.6 Million Term Loan C (Downgraded from (Enhanced from INR950.0 Million) 'BB+/Stable') INR427.4 Million Letter of Credit P4 (Downgraded from 'P4+') (Enhanced from INR90 Million) The ratings reflect delays in servicing the term loan by SIL because of weak liquidity; the interest on term loans were being serviced with a delay of 5-10 days from the due date. SIL's liquidity is expected to improve over the medium term, because of expected increase in its working capital facilities by INR290 million and its proposed initial public offering (IPO). The ratings reflect SIL's working-capital-intensive operations, and exposure to risks arising out of large sized project expected to be undertaken over the medium term. These weaknesses are partially offset by the company's established market position, diversified product profile, and moderate networth and gearing. About Shirdi Industries Incorporated in 1993, SIL manufactures medium-density fibre (MDF) and particle boards (PBs). It began operations by offering foreign trade advisory services. In February 2007, SIL commissioned its INR1.33-billion plant to manufacture laminates, and plain and laminated MDF and PB, in Pantnagar, Uttaranchal. The company added another plant in Coimbatore in 2009-10 (refers to financial year, April 1 to March 31) for pre-lamination of imported MDF and PB. It discontinued consultancy and trading activities in 2007-08 and 2008-09, respectively, and intends to focus on manufacturing activities. The company has plans for an IPO issuance in September 2010; it will use the fund raided through it to fund its capital expenditure at Chennai and Uttarakhand. For 2009-10, SIL reported a profit after tax (PAT) of INR260.0 million on net sales of INR2.9 billion, against a PAT of INR171.0 million on net sales of INR2.2 billion for the previous year. SHREE BANKEY: CRISIL Rates INR1.25 Billion Cash Credit at 'BB-' --------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to the cash credit facility of Shree Bankey Behari Exports Ltd, which is part of the Shree Bankey Behari group. Facilities Ratings ---------- ------- INR1.25 Billion Cash Credit BB-/Stable (Assigned) The rating reflects the Shree Bankey Behari group's below-average financial risk profile, marked by moderate net worth, high gearing, and weak debt protection metrics (because of large working capital requirements); financial risk profile is likely to come under pressure due to large debt-funded capital expenditure [capex]). The rating also reflects the group's exposure to intense competition in the agricultural commodities industry, subdued margins because of low value-addition in its products, and its susceptibility to volatility in input prices and adverse regulatory changes. These rating weaknesses are partially offset by experience of the group's established market position in the agricultural commodities business. For arriving at its rating, CRISIL has combined the business and financial risk profiles of SBBEL, Deluxe Cold Storage and Food Processors Ltd (DCSFPL), and the proprietorship firm Telu Ram Amar Chand (TRAC). This is because the three entities, collectively referred to as the Shree Bankey Behari group, are in the same line of business, have common promoters and management team, and significant operational and financial inter-linkages. Outlook: Stable CRISIL believes that the Shree Bankey Behari group's financial risk profile will remain weak over the medium term, driven by low profitability and large capex plans. However, the group will continue to maintain its established position in the pulses and wheat processing business, and benefit from its promoters' extensive experience. The outlook may be revised to 'Positive' if the group's financial risk profile improves, driven most likely by substantial equity infusion or larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in the group's proposed project, or more- than-expected deterioration in financial risk profile, driven most likely by large working capital requirements. About the Group SBBEL was incorporated in June 1994. The company processes raw gram seed to produce gram pulses (dal) and gram flour (besan). The company has 10 mills in Delhi, with a combined capacity to process around 700 tonnes per day (tpd). TRAC, set up in 1998, is the proprietorship firm of Mr. Amar Chand Gupta. The firm trades in agricultural products, such as wheat, gram, and flour. The firm sources wheat, flour, and grain from local suppliers and its group companies. It also procures gram and wheat on behalf of its group companies. The firm runs four retail shops at Naya Bazaar in Delhi. DCSPL was incorporated as a private limited company in 1984, and reconstituted as a public limited company (closely held) in 1993. The company processes wheat products, such as wheat flour (maida) and its by-products, such as semolina (suji), and unrefined wheat flour (atta). It has a unit at Lawrence Road in Delhi, which has a capacity to process around 500 tpd. Shree Bankey Behari group's profit after tax (PAT) and net sales are estimated to be INR23.00 million and INR7.37 billion, respectively, for 2009-10 (refers to financial year, April 1 to March 31); the group reported a PAT of INR13.50 million on net sales of INR6.54 billion for 2008-09. SUJA SHOEI: CRISIL Reaffirms 'BB+' Rating on Various Bank Debts --------------------------------------------------------------- CRISIL's ratings on Suja Shoei Industries Pvt Ltd's bank facilities continue to reflect Suja Shoei's small scale of operations, and exposure to risks related to limited revenue diversity and intense competition in the automobile rubber components industry. These weaknesses are partially offset by the company's experienced management team, moderate operating efficiencies, and moderate financial risk profile, marked by comfortable debt protection metrics. Facilities Ratings ---------- ------- INR68.10 Million Long-Term Loan BB+/Stable (Reaffirmed) INR10.00 Million Cash Credit BB+/Stable (Reaffirmed) INR1.50 Million Standby Line of BB+/Stable (Reaffirmed) Credit INR10.00 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that Suja Shoei will maintain its established market position in the rubber components industry, over the medium term. The outlook may be revised to 'Positive' if the company scales up its operations, while diversifying its revenue base and improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if Suja Shoei undertakes a large, debt- funded capital expenditure programme, or faces delays in receipts from customers, affecting its working capital management. Update Suja Shoei reported 42 per cent growth in revenues for 2009-10 (refers to financial year, April 1 to March 31) ahead of CRISIL's expectations, backed by increase in demand for the specialised rubber products. The company has comfortable liquidity with sufficient accruals to meet debt repayments, low 12-month average bank limit utilisation of 11 per cent and high unencumbered cash and bank balances of INR43 million as on March 31, 2010. Furthermore, the company's profitability marginally declined, in line with CRISIL's expectations, on account of increase in rubber prices. Its revenue profile, however, remains exposed to customer concentration with the top five customers accounting for 76 per cent of its revenues. Suja Shoei is planning to set up another manufacturing unit in Tamil Nadu at a cost of about INR400 million. The project is still in nascent stage with uncertainty over the funding and timelines of commencing the project. The quantum of debt to fund the project and utilisation of current and proposed capacities shall continue to remain a rating sensitivity factor. Suja Shoei reported a provisional profit after tax (PAT) of INR16 million on provisional net sales of INR424 million for 2009-10, as against a reported PAT of INR8 million on net sales of INR299 million for 2008-09. About Suja Shoei Set up in 1975, Tamil Nadu-based Suja Shoei is a Tier-II manufacturer of rubber components catering primarily to the automobile industry. The company entered into a technical collaboration with Shoei Corporation (Japan) in October 2007 for a period of 10 years. Shoei Corporation provides technical know-how for manufacturing the products supplied by Suja Shoei to it; these products contribute around 14 per cent of Suja Shoei's total revenues. SWATHI COTTONS: CRISIL Assigns 'B+' Rating to INR147.4MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'B+/Stable/P4' rating to Swathi Cottons Private Limited's bank facilities. Facilities Ratings ---------- ------- INR147.40 Million Term Loan B+/Stable (Assigned) INR215.00 Million Cash Credit B+/Stable (Assigned) INR10.00 Million Letter of Credit P4 (Assigned) The rating reflects SCPL's below-average financial risk profile, marked by a high gearing and weak debt protection metrics, and susceptibility to volatility in cotton and cotton seed prices. These rating weaknesses are partially offset by SCPL's promoters' experience and its established market position in the cotton industry. Outlook: Stable CRISIL believes that SCPL will continue to benefit from its promoters' experience in the cotton business, over the medium term. The outlook may be revised to 'Positive' if SCPL improves its capital structure or if its revenues and profitability increase significantly. Conversely, the outlook may be revised to 'Negative' if the company contracts large quantum of debt to fund its capital expenditure or sharp decline in realizations and margins due to adverse movement in cotton prices. About Swathi Cottons Based in Ganapavaram in Guntur district (Andhra Pradesh), SCPL was set up in 1998 by Mr. Prathipati Pulla Rao and Mr. Boggavarapu Ankamma Rao. The company is into cotton ginning, cotton seed oil extraction and trading of raw cotton and yarn. The company was primarily involved in ginning of cotton till 2006-07 (refers to financial year, April 1 to March 31). It constructed a new facility to produce cotton seed oil which commenced commercial operations in November 2008. SCPL reported a provisional profit after tax (PAT) of INR19 million on net sales of INR1310 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR16 million on net sales of INR759 million for 2008-09. TELU RAM: CRISIL Rates INR150 Million Cash Credit at 'BB-' ---------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to the cash credit facilitY of Telu Ram Amar Chand and Company, which is part of the Shree Bankey Behari group. Facilities Ratings ---------- ------- INR150.0 Million Cash Credit BB-/Stable (Assigned) The rating reflects the Shree Bankey Behari group's below-average financial risk profile, marked by moderate net worth, high gearing, and weak debt protection metrics (because of large working capital requirements); financial risk profile is likely to come under pressure due to large debt-funded capital expenditure [capex]. The rating also reflects the group's exposure to intense competition in the agricultural commodities industry, subdued margins because of low value-addition in its products, and its susceptibility to volatility in input prices and adverse regulatory changes. These rating weaknesses are partially offset by experience of the group's established market position in the agricultural commodities business. For arriving at its rating, CRISIL has combined the business and financial risk profiles of TRAC, Shree Bankey Behari Exports Ltd (SBBEL), and Deluxe Cold Storage and Food Processors Ltd (DCSFPL). This is because the three entities, collectively referred to as the Shree Bankey Behari group, are in the same line of business, have common promoters and management team, and significant operational and financial inter-linkages. Outlook: Stable CRISIL believes that the Shree Bankey Behari group's financial risk profile will remain weak over the medium term, driven by low profitability and large capex plans. However, the group will continue to maintain its established position in the pulses and wheat processing business, and benefit from its promoters' extensive experience. The outlook may be revised to 'Positive' if the group's financial risk profile improves, driven most likely by substantial equity infusion or larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in the group's proposed project, or more- than-expected deterioration in financial risk profile, driven most likely by large working capital requirements. About the Group TRAC, set up in 1998, is the proprietorship firm of Mr. Amar Chand Gupta. The firm trades in agricultural products, such as wheat, gram, and flour. The firm sources wheat, flour, and grain from local suppliers and its group companies. It also procures gram and wheat on behalf of its group companies. The firm runs four retail shops at Naya Bazaar in Delhi. SBBEL was incorporated in June 1994. The company processes raw gram seed to produce gram pulses (dal) and gram flour (besan). The company has 10 mills in Delhi, with a combined capacity to process around 700 tonnes per day (tpd). DCSFPL was incorporated as a private limited company in 1984, and reconstituted as a public limited company (closely held) in 1993. The company processes wheat products, such as wheat flour (maida) and its by-products, such as semolina (suji), and unrefined wheat flour (atta). It has a unit at Lawrence Road in Delhi, which has a capacity to process around 500 tpd. Shree Bankey Behari group's profit after tax (PAT) and net sales are estimated to be INR23.00 million and INR7.37 billion, respectively, for 2009-10 (refers to financial year, April 1 to March 31); the group reported a PAT of INR13.50 million on net sales of INR6.54 billion for 2008-09. VERDANT LIFE: CRISIL Assigns 'B' Rating to INR66MM Rupee Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'B/Stable/P4' ratings to Verdant Life Sciences Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR66.0 Million Rupee Term Loan B/Stable (Assigned) INR20.0 Million Cash Credit B/Stable (Assigned) INR7.5 Million Letter of Credit P4 (Assigned) INR2.5 Million Bank Guarantee P4 (Assigned) The ratings reflect Verdant's weak financial risk profile, marked by low cash accruals and large, debt-funded capital expenditure (capex) plans. The ratings also factor in Verdant's short track record in the bulk drugs and intermediates industry. These weaknesses are partially offset by the benefits that Verdant derives from its management's experience in the business. Outlook: Stable CRISIL believes that Verdant will continue to benefit from steady revenue growth, while maintaining a moderate operating margin, over the medium term. The outlook may be revised to 'Positive' if the company scales up its operations considerably while maintaining strong profitability, or if substantial equity infusions help strengthen its capital structure. Conversely, the outlook may be revised to 'Negative' if large, debt-funded capex plans lead to material deterioration in Verdant's debt protection measures or capital structure. About Verdant Life Verdant, set up in 2008 by Mr. U Amarnath and Mr. V S N Murthy, began operations in 2010. It manufactures bulk drugs and intermediates at its manufacturing facility in Jawaharlal Nehru Pharma City in Visakhapatnam. It sells these products in India and abroad. Verdant reported a net loss of INR3.8 million on net sales of INR1.8 million for 2009-10 (refers to financial year, April 1 to March 31), when the company started its operation. ========= J A P A N ========= GODO KAISHA: S&P Downgrades Ratings on Various Classes of Notes --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the floating-rate notes, classes B to F, issued by Godo Kaisha ORSO Funding CMBS 6 in March 2007. At the same time, S&P maintained the ratings on classes A to C on CreditWatch with negative implications and removed those on classes D to F from CreditWatch negative. The ratings on classes A to F had been placed on CreditWatch with negative implications on May 27, 2010. S&P also affirmed its ratings on class X (TK distribution) issued under the same transaction. The transaction was initially backed by four TMK bonds and two loans issued by/extended to six obligors. As the two loans (the loans originally represented a combined 36.9% or so of the total issuance amount of the notes) have been repaid, only four TMK bonds remain. On May 27, 2010, S&P downgraded classes D to F and placed the ratings on classes A to F on CreditWatch with negative implications. The ratings actions were based on S&P's view that the recovery prospects of the properties backing three of the transaction's four remaining TMK bonds were uncertain given the performance of the properties, based on the possibility that the TMK bonds might not be redeemed on their respective maturity dates and that the properties might need to be liquidated. S&P downgraded classes B to F because: With regard to two of the three TMK bonds that led to the negative CreditWatch placements in May 2010, S&P has held meetings with the asset manager and examined information regarding the related collateral properties. S&P has lowered its assumption with regard to the likely collection amount from the properties after considering a number of factors, including property cash flow, as well as the locations, the types of the properties and information S&P obtained through the meetings with the asset manager. S&P currently assume that the total value of the properties would be about 65% of its initial underwriting value. The other TMK bond (the TMK bond, which is due to mature in January 2011, originally represented about 17.1% of the total initial issuance amount of the notes) is backed by two hotels, one of which is located in Tokyo and the other in a provincial area. Although S&P has yet to finalize its assessment of the likely collection amount from these hotels, S&P is of the opinion that a decline in the likely collection amount from the properties appears unavoidable. Accordingly S&P has lowered its assumption with respect to likely collection amount. S&P intend to review its ratings on the three classes that S&P maintained on CreditWatch with negative implications after completing its assessment of the recovery prospects of the properties backing the TMK bond maturing in January 2011. Godo Kaisha ORSO Funding CMBS 6 Trust is a multi-borrower CMBS transaction. The floating-rate notes were initially secured by four TMK bonds and two loans issued by/extended to six obligors. The TMK bonds were originally backed by 32 real estate properties. The transaction was arranged by Bear Stearns (Japan) Ltd., Tokyo Branch. Premier Asset Management Co. acts as the servicer for this transaction. The ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in November 2013 for the class A notes, the full payment of interest and ultimate repayment of principal by the legal final maturity date for the class B to F notes, and the timely payment of available distribution until the earlier of the legal final maturity date or the termination of the TK agreement for the interest-only class X TK distribution. Ratings Lowered, Off Creditwatch Negative Godo Kaisha ORSO Funding CMBS 6 JPY29.9 billion floating-rate notes due November 2013 Class To From Initial Issue Amount ----- -- ---- -------------------- D B- (sf) BB (sf)/Watch Neg JPY3.6 bil. E CCC (sf) B (sf)/Watch Neg JPY3.0 bil. F CCC (sf) B (sf)/Watch Neg JPY0.2 bil. Ratings Lowered, Kept On Creditwatch Negative Class To From Initial Issue Amount ----- -- ---- -------------------- B A (sf)/Watch Neg AA (sf)/Watch Neg JPY3.5 bil. C BB+ (sf)/Watch Neg A (sf)/Watch Neg JPY3.6 bil. Rating Kept On Creditwatch Negative Class To From Initial Issue Amount ----- -- ---- -------------------- A AAA (sf)/Watch Neg AAA (sf)/Watch Neg JPY16.0 bil. Rating Affirmed Class Rating ----- ------ X (TK distribution) AAA (sf) The issue date was March 19, 2007. JAPAN AIRLINES: May Start Discount Carrier for Overseas Flights --------------------------------------------------------------- Bloomberg News, citing Nikkei English News, reports that Japan Airlines Corp. may start a discount carrier under its business turnaround plan being prepared. Bloomberg relates the Nikkei said JAL wants to increase revenue from international flights to JPY440.8 billion (US$5.2 billion) in the year ending March 31, 2013, from this fiscal year's projected JPY419 billion. JAL would use added slots at Tokyo's Haneda Airport, Nikkei reported. Meanwhile, Japan Today reports that Japan Airlines Corp. officially announced Tuesday it will submit a rehabilitation plan to the Tokyo District Court on Aug. 31, featuring debt waivers totaling JPY521.5 billion. According to Japan Today, the airline said JAL Chairman Kazuo Inamori and President Masaru Onishi will meet reporters, together with officials of the government-backed Enterprise Turnaround Initiative Corp of Japan, after submitting the plan to the court. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19, 2010, in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated debts at $28 billion. Bankruptcy Creditors' Service, Inc., publishes Japan Airlines Bankruptcy News. The newsletter tracks the Chapter 15 proceedings and the bankruptcy proceedings in Tokyo undertaken by Japan Airlines Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) JAPAN AIRLINES: Sells Stakes in Passenger & Cargo Handling Units ---------------------------------------------------------------- The JAL Group disclosed that Japan Airlines Corp. subsidiary, Japan Airlines International Co., Ltd. (JALI), will sell 95% of its stake in JAL Sky Nagoya Co., Ltd (JNGO) and 61% of its 66% stake in Chubu Sky Support Co., Ltd. (CSS), while JAL Ground Service Co., Ltd. (JGS), also a JAL Group subsidiary, will sell 34% of its stake in CSS, to Suzuyo & Co., Ltd. (Suzuyo) by way of a stock transfer agreement. Additionally, JALI subsidiary JAL Cargo Service Co., Ltd. (JCG), headquartered in Narita, will transfer the business and assets of its cargo handling operations at ChubuCentrair International Airportto Suzuyo through a business transfer agreement. JALI, JGS and Suzuyo entered into a stock transfer agreement on August 19, 2010, in which the latter will acquire 95% of stakes in JNGO and CSS, as well as the business and assets of JCG's Nagoya branch cargo operations at Chubu Centrair International Airport. Of the 600 shares owned by Japan Airlines International co., Ltd. in JAL Sky Nagoya Co., Ltd., 570 shares will be transferred to Suzuyo & Co. Ltd. Suzuyo & Co. Ltd. will also acquire 95% of the 9,000 shares in Chubu Sky Support Co., Ltd. after the transfer of 5,490 shares from Japan Airlines International Co., Ltd which will retain a 5% stake, and 3,060 shares from JAL Ground Service Co., Ltd. The cargo handling business at Centrair, operated by the Nagoya branch of JAL Cargo Service, will be transferred to Suzuyo after the reorganization of JNGO following the stock transfer. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19, 2010, in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated debts at $28 billion. Bankruptcy Creditors' Service, Inc., publishes Japan Airlines Bankruptcy News. The newsletter tracks the Chapter 15 proceedings and the bankruptcy proceedings in Tokyo undertaken by Japan Airlines Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ========= K O R E A ========= HYUNDAI ENGINEERING: Hyundai Group Set to Reclaim Engineering Firm ------------------------------------------------------------------ Hyundai Group is reportedly planning to bid for a stake in Hyundai Engineering and Construction. The Korea Times says the group, led by Hyun Jung-eun, the widow of Chung Mong-hun, one of the founder's sons, is just about ready to acquire Korea's leading construction firm. According to the Korea Times, acquiring the construction firm is both a sentimental issue as well as a pivotal business move for Hyundai Group. Hyundai Engineering, which was the starting point of the business empire before a three-way split, has been under creditors' control. In August 2001, Hyundai Group was split into three -- Hyundai Motor, Hyundai Heavy Industries and one which retained the name, Hyundai Group -- while the remaining businesses were taken over by creditors. As reported in the Troubled Company Reporter-Asia Pacific on July 1, 2010, Bloomberg News said Hyundai Engineering's creditors plan to choose a preferred bidder for a KRW2.17 trillion controlling stake in the builder by the end of this year. The debt holders plan to complete the sale, open to both domestic and overseas buyers, by early 2011. About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into the following key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. * South Korea to Disclose List of Troubled Universities Next Week ----------------------------------------------------------------- The Korea Times reports that the government will announce a list of about 50 financially-weak universities next week, which will see cuts in central funding for student loans. According to the report, the Ministry of Education, Science and Technology said it will rate national and private universities in groups according to their financial status, the employment rate of their graduates and other key data. The ministry said it has picked the lowest 15 percent in the school rankings and they will see their benefits cut. The Korea Times says the move is expected to speed up the weeding out of poorly-operated colleges. The ministry will announce the list of colleges next month, before the academic institutes start to recruit new students. Korea has some 350 colleges nationwide. =============== M A L A Y S I A =============== FOUNTAIN VIEW: Swings to MYR5.18 Million Loss in Qtr Ended June 30 ------------------------------------------------------------------ Fountain View Development Berhad reported a net loss of MYR5.18 million for the quarter ended June 30, 2010, compared with a net income of MYR19.57 million on for the same period in 2009. As of June 30, 2010, the Company's balance sheet showed MYR407.34 million in total assets, MYR300.71 million in total liabilities and MYR106.63 million in stockholders' equity. The Company's consolidated balance sheet at June 30, 2010, showed strained liquidity with MYR185.61 million in total current assets available to pay MYR300.71 million in total current liabilities. About Fountain View Fountain View Development Berhad is a Malaysia-based investment holding company. The Company operates in four segments: Plantation, Property development, Investment and Elimination. The Company principally operates in Malaysia. Its subsidiaries includes Citra Tani Sdn. Bhd., Everange Sdn. Bhd., Fountain View Land Sdn. Bhd., Invescor Ventures Sdn. Bhd., Bentayan Holdings Sdn. Bhd., Fountain View Realty Sdn. Bhd., Bentayan Properties Sdn. Bhd., Mujur Zaman Sdn. Bhd., MZ Development Sdn. Bhd. and Extrogold Sdn. Bhd. Fountain View Development Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17 of the Bursa Malaysia Securities Berhad as it has triggered Paragraph 2.1(h) of the PN17 for having an insignificant business or operation. The Company's unaudited second quarterly financial result ended June 30, 2009, recorded no revenue resulting in the Company triggering Paragraph 2.1 (h) of the PN17. HO HUP: Posts MYR4.04 Million Net Loss in Quarter Ended June 30 --------------------------------------------------------------- Ho Hup Construction Company Bhd reported a net loss of MYR4.04 million on revenues of MYR3.16 million in the quarter ended June 30, 2010, compared with a net loss of MYR3.70 million on MYR17.84 million of revenues in the same quarter in 2009. As of June 30, 2010, the Company had MYR221.51 in total assets and MYR244.40 million in total liabilities, resulting in total shareholders' deficit of MYR22.89 million. The company's balance sheet as of June 30, 2010, also showed strained liquidity with MYR62.32 million in total current assets available to pay MYR239.31 million in total current liabilities. A full-text copy of the Company's Quarterly Results is available for free at: http://ResearchArchives.com/t/s?6a07 About Ho Hup Ho Hup Construction Company Berhad is engaged in foundation engineering, civil engineering, building contracting works and hire of plant and machinery. The Company operates in four segments: construction, which is engaged in foundation and civil engineering, building contracting works and engineering, procurement, construction and commissioning of pipeline system; property development, which includes the development of residential and commercial properties, manufacturing, which includes manufacturing and distribution of ready-mixed concrete, and other business segment, which represents hire of plant and machinery. The Company's subsidiaries include H2Energy Corporation Sdn Bhd, Tru-Mix Concrete Sdn Bhd, Bukit Jalil Development Sdn Bhd and Ho Hup Equipment Rental Sdn Bhd. * * * Ernst & Young expressed a disclaimer opinion in the Company's 2007 audited financial statements. As a result, the Company became an affected listed issuer pursuant to paragraph 2.1 of the PN17/2005. The auditors cited factors that indicate the existence of material uncertainties, which may cast significant doubt on the ability of the group and the company to continue as a going concern. KENMARK INDUSTRIAL: Deloitte Appointed as Provisional Liquidator ---------------------------------------------------------------- Kenmark Industrial Co. (M) Berhad received a notice of appointment of provisional liquidators on August 24, 2010, from Deloitte Corporate Solutions Sdn Bhd notifying the appointment of Messrs. Mak Kum Choon and Yeoh Siew Ming as Provisional Liquidators of the Company by an order of the High Court. Export-Import Bank of Malaysia Berhad on June 8, 2010, served a Notice on the Company for MYR16.31 million which is due and owed to the Bank. On August 18, EXIM Bank through an ex-parte application received the Court Order for the appointment of the Provisional Liquidators of the Company pending the full and final disposal of the winding up petition or until further order. "With the appointment of the Provisional Liquidators, the powers of the Board of Directors and officers of the Company to deal with the Company's property or to manage its undertaking were suspended," Kenmark said in a filing with Bursa Malaysia. "However, the Directors' statutory obligations as Directors continue," it said. The directors have taken legal advice and are taking steps to challenge the Court Order. About Kenmark Industrial Kenmark Industrial Co. (M) Berhad is a Malaysia-based company. The Company is engaged in the manufacturing of computer workstations, cabinets, furniture; printing of packaging materials; the distribution of consumer products, and investment holding. The Company is also engaged in plastic injection for furniture parts, and assembly and distribution of liquid crystal display (LCD). It exports its products to the United States, Europe, Japan and Australia. The Company's wholly owned subsidiaries include Kenmark Paper Sdn. Bhd., which is engaged in manufacturing plastic parts for wooden furniture and cabinets, and investment holding; Kenmark (Labuan) Limited, which is engaged in international trading, commission agent and investment holding; Phoenix International Group Limited, which is engaged in trading in electronic devices, and Billion Dynamic Sdn. Bhd., which is engaged in the assembling and trading of electronic devices. * * * Kenmark Industrial Co. (M) Berhad has been classified a Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd after it triggered Paragraph 2.1(f) of the Listing Requirements. The Company's major subsidiaries have defaulted on some of their banking facilities. The Company is also unable to provide a solvency declaration. METECH GROUP: Classified as Affected Listed Issuer Under PN17 ------------------------------------------------------------- Metech Group Berhad is now considered as an Affected Listed Issuer pursuant to the Practice Note 17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad after the Company suspended or ceased its major operations as a result of the disposal of its major business. Metech said it had completed the disposal of its entire equity interest in Metech Aluminium Industries Sdn Bhd, comprising 5,100,000 'A' class ordinary shares of MYR1.00 each in MAI, representing 51% equity interest in MAI to Tong Herr Resources Berhad. The Company said it does not have a formal regularization plan at present to regularise its financial conditions. However, the Company is taking the necessary action to formulate a regularisation plan. Metech Group Berhad (Metech) -- http://www.metech.com.my/-- is a Malaysia-based company engaged in investment holding and provision of management services for its subsidiaries. Through its subsidiaries, Metech is engaged in the manufacture and sales of steel storage racking systems, aluminum extrusion and related products, steel doors, metal doors frames and trading of aluminum fittings and extrusion parts, roller shutters parts and accessories. Metech distributes its products within the domestic market and to other Asean countries, the Middle East countries and European countries. As of December 31, 2009, Metech's direct subsidiaries were Mefu Industries Sdn. Bhd., Durack Metal System Sdn. Bhd., Metech Aluminium Industries Sdn. Bhd., Metech Kenzai Sdn. Bhd., Metech Properties Holdings Sdn. Bhd., Metech Industries Sdn. Bhd. and Metech-Chaun Choung Technology Sdn. Bhd. ==================== N E W Z E A L A N D ==================== ALLIED FARMERS: To Renegotiate Terms of Bank Facility With Westpac ------------------------------------------------------------------ Allied Farmers Ltd. said will renegotiate the terms of its bank facility with Westpac following the receivership of its subsidiary Allied Nationwide Finance, The National Business Review reports. NBR relates that Allied Farmers, which took over the stricken Hanover finance loan book last December, was granted an extension on the Westpac facilities until March 31, 2011. However, Allied Farmers said the receivership of Allied Nationwide has meant that the milestones for the agreed debt terms, including debt retirement and a restructuring initiative, will require renegotiation. "Allied Farmers is in constructive discussions with Westpac and the lead manager of its previously announced rights issue," the company said. Allied Farmers said it currently has senior debt totaling $16.9 million, consisting of a multi-option credit facility of $14.4 million and an overdraft of $2.5 million. NBR says Allied temporarily withdrew a planned $19.3 million capital raising via a rights issue when the finance arm breached its trust deed ratios earlier this month, before going into receivership. As reported in the Troubled Company Reporter-Asia Pacific on July 21, 2010, Allied Farmers gained a six-month extension of its loan facility with Westpac, giving the finance company more time to repay debt and restructure its business. Allied had NZ$21 million outstanding on the facility as at June 30 and had an overdraft facility of NZ$2.5 million that was set to expire on July 1. The latest agreement pushes out the due date to March 31 next year from September 24, 2010. About Allied Farmers Based in New Zealand, Allied Farmers Limited (NZE:ALF) -- http://www.alliedfarmers.co.nz/-- is engaged in livestock, real estate, finance, wool brokering and manufacturing (meat and timber). Rural Services comprises livestock, merchandise and real estate operations. The Company's Rural Services activities are carried out in Taranaki, Waikato, King Country and Manawatu. Its Financial Services activities are carried out by Allied Nationwide Finance Limited in Auckland, Wellington and Christchurch. Timber processing comprises the Company's discontinued sawmilling operations. On June 29, 2007, Allied Nationwide Finance Limited, Nationwide Finance Limited and Allied Prime Finance Limited were amalgamated, with Nationwide Finance Limited being the continuing entity. Nationwide Finance Limited subsequently changed its name to Allied Nationwide Finance Limited. AORANGI SECURITIES: SFO to Reveal Next Step in Probe Next Week -------------------------------------------------------------- Serious Fraud Office boss Adam Feeley expects to reveal next week the next step in his investigation of Allan Hubbard's Aorangi Securities and a group of trusts associated with the Timaru businessman and his wife Jean, Jenni McManus at BusinessDay.co.nz reports. BusinessDay.co.nz relates Mr. Feeley has received a report, including complex wiring diagrams constructed by the SFO's investigators from Companies Office records and other public documents, which analyses Hubbard's 400 interwoven directorships. According to the report, Mr. Feeley's comments on Aorangi next week ?will not necessarily be exciting ? but then they may be". BusinessDay.co.nz notes that Mr. Feeley has three options: * to decide there is insufficient evidence of serious and complex fraud and drop the investigation; * to say the SFO's inquiries confirm there are matters that need further investigation; or * to lay charges. As reported in the Troubled Company Reporter-Asia Pacific on June 23, 2010, Bloomberg News said New Zealand appointed statutory managers for Aorangi Securities Ltd. and seven trusts, which are associated with Allan Hubbard, to protect investors and prevent fraud. Citing Commerce Minister Simon Power's e-mailed statement, Bloomberg related that Mr. Hubbard and his wife are also subject to statutory management because they are so closely connected with the businesses. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. More than 400 investors in Aorangi Securities owed NZ$96 million have been told by the statutory managers they will not receive any return of capital or interest in the short term. The Serious Fraud Office also started its investigation into Aorangi's affairs, and those of Allan Hubbard and his wife. Aorangi Securities was incorporated in 1974 and is solely controlled by the Hubbards. FIVE STAR: SFO Lays Over 100 Charges Against 4 Executives --------------------------------------------------------- The Serious Fraud Office has laid over 100 charges under the Crimes Act against Nicholas Kirk, Marcus MacDonald, Anthony Bowden and Neill Williams who are associated with the collapsed Five Star Finance Group, according to The New Zealand Press Association. NZPA says the offences each carry a maximum penalty of seven years imprisonment. Messrs. Kirk, McDonald and Bowden are former directors of Five Star Finance Ltd, while Mr. Williams was heavily involved in its management, NZPA relates. NZPA reports that the Companies Office earlier laid criminal charges in Auckland District Court against Messrs. MacDonald, Bowden, Kirk and Williams. The case was referred to it by the Securities Commission. About Five Star Established in 1992, Five Star Finance Limited focused on financing real estate loans following a restructuring exercise that created Five Star Consumer Finance in New Zealand and Five Star Consumer Finance Pty in Australia. Five Star Debenture Nominee Limited acted as debenture holder on behalf of unsecured depositors and appeared to lend all of the money it raised to Five Star Finance. Five Star Finance Limited went into receivership on September 5, 2007. Five Star Debenture Nominee Limited went into liquidation on November 5, 2007. At the start of the liquidation in June 2009 the shortfall of assets to liabilities was NZ$51.7 million, according to The Dominion Post. The Post says joint liquidator Paul Sargison, of Gerry Rea & Associates, said the firm's directors attributed the group's failure to the economic crisis but his own appraisal is that Five Star has been insolvent since no later than March 31, 2005. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: First Pacific Not Interested in PAL -------------------------------------------------------- The First Pacific Group has turned down an offer to invest in cash-strapped Philippine Airlines saying it was not interested in airline operations, The Manila Standard Today reports. The Manila Standard relates First Pacific Managing Director Manuel Pangilinan said the group found airline operation an unpredictable business. ?Variables in going on a business of airline is beyond your control,? he said, citing fuel prices, weather conditions and the economic conditions that greatly affect the flow of the business. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2010, the Manila Bulletin said that the Philippine Airlines is to spin off its three non-core units as a last resort to avoid bankruptcy. PAL will spin off its three non-core units: inflight catering services; airport services, including ground handling, cargo handling and ramp handling; and call center reservations, the Manila Bulletin said. The PAL Employees Union estimated that 2,000 to 4,000 employees assigned to those departments could be retired. PAL said competition from overseas carriers, slower global economic growth, and higher oil prices had prompted the airline to slash its non-core businesses. The carrier had approached several investors but failed to secure financial help, and equity had dropped to a worrisome US$1.1 million as of February 2010, according to the Manila Standard. The TCR-AP, citing BusinessWorld Online, reported on July 28, 2010, that Philippine Airlines announced a narrower loss for its fiscal year that ended March 2010 to $14.3 million, from the previous year's $297.8 million, but warned of still weak demand for international flights. About Philippine Airlines Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. First taking off in 1941, the carrier has grown into a fleet of about 40 aircraft (including five Boeing 747-400s) flying to more than 20 domestic points and about 30 foreign destinations. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA ADVANCE HEAL-NEW AHGN 16.93 -8.23 ARASOR INTERNATI ARR 19.21 -26.51 AUSTAR UNITED AUN 502.05 -284.60 AUSTRAILIAN Z-PP AZCCA 77.74 -2.57 AUSTRALIAN ZIRC AZC 77.74 -2.57 AUTRON CORP LTD AAT 32.50 -13.46 BCD RESOURCES OP BCO 22.09 -61.19 BCD RESOURCES-PP BCOCC 22.09 -61.19 BIRON APPAREL LT BIC 19.71 -2.22 CENTRO PROPERTIE CNP 14,784.56 -461.11 CHALLENGER INF-A CIF 2,307.01 -104.58 CHEMEQ LTD CMQ 25.19 -24.25 CITY PACIFIC LTD CIY 171.50 -6.38 ELLECT HOLDINGS EHG 18.25 -15.49 HEALTH CORP LTD HEA 13.85 -0.97 HYRO LTD HYO 11.59 -4.73 IVANHOE AUST LTD IVA 49.44 -6.51 MAC COMM INFR-CD MCGCD 8,104.42 -103.34 NATURAL FUEL LTD NFL 19.38 -121.51 ORION GOLD NL ORN 12.37 -24.99 POWERLAN LTD PWR 30.84 -5.94 SCIGEN LTD-CUFS SIE 71.22 -25.69 SHELL VILLAGES A SVC 13.47 -1.66 TAKORADI LTD TKG 13.99 -0.41 VERTICON GROUP VGP 15.07 -29.20 CHINA BAO LONG ORIENTA 600988 11.60 -7.44 BAOCHENG INVESTM 600892 21.39 -2.55 CHANGAN INFO-A 600706 19.27 -7.62 CHENGDE DALU -B 200160 26.76 -5.73 CHENGDU UNION-A 693 41.39 -12.35 CHINA KEJIAN-A 35 84.21 -182.60 DATONG CEMENT-A 673 20.42 -2.75 DONGGUAN FANGD-A 600656 22.26 -59.02 DONGXIN ELECTR-A 600691 13.53 -19.38 GAOXIN ZHANGTO-A 2075 110.44 -39.93 GUANGMING GRP -A 587 46.25 -38.70 GUANGXIA YINCH-A 557 30.99 -29.72 HAINAN ZHUXIN-A 600515 123.22 -2.37 HEBEI BAOSHUO -A 600155 110.09 -387.99 HEBEI JINNIU C-A 600722 227.88 -230.19 HISENSE KELON -H 921 618.47 -107.13 HISENSE KELON-A 921 618.47 -107.13 HUASU HOLDINGS-A 509 86.39 -3.82 HUNAN ANPLAS CO 156 39.16 -65.29 JINCHENG PAPER-A 820 250.82 -5.71 JINHUA GROUP-A 818 335.97 -31.40 LIAOYUAN DEHENG 600699 121.62 -29.14 MUDAN AUTOMOBI-H 8188 36.26 -0.61 QINGHAI SUNSHI-A 600381 68.98 -25.40 SHAANXI QINLIN-A 600217 233.75 -37.00 SHANG BROAD-A 600608 74.98 -19.72 SHANG HONGSHENG 600817 15.44 -457.23 SHANGHAI WORLDBE 600757 153.10 -190.22 SHENZ CHINA BI-A 17 24.86 -272.59 SHENZ CHINA BI-B 200017 24.86 -272.59 SHENZHEN DAWNC-A 863 27.13 -150.10 SHENZHEN KONDA-A 48 118.96 -0.71 SHENZHEN SHENX-A 34 23.81 -118.24 SHENZHEN ZERO-A 7 50.66 -9.39 SHIJIAZHUANG D-A 958 225.44 -69.75 SICHUAN DIRECT-A 757 103.79 -134.42 SUNTEK TECHNOL-A 600728 62.08 -15.09 TAIYUAN TIANLO-A 600234 51.10 -25.99 TIANJIN MARINE 600751 78.09 -63.86 TIANJIN MARINE-B 900938 78.09 -63.86 TIBET SUMMIT I-A 600338 83.10 -1.66 TOPSUN SCIENCE-A 600771 170.01 -152.79 WINOWNER GROUP C 600681 10.58 -71.05 WUHAN BOILER-B 200770 286.45 -140.07 WUHAN GUOYAO-A 600421 11.05 -23.63 WUHAN LINUO SOLA 600885 80.33 -0.50 XIAMEN OVERSEA-A 600870 338.03 -139.08 YANBIAN SHIXIA-A 600462 205.51 -13.20 YIBIN PAPER IN-A 600793 113.93 -0.74 YUEYANG HENGLI-A 622 38.14 -14.95 YUNNAN MALONG-A 600792 122.13 -50.67 ZHANGJIAJIE TO-A 430 45.95 -4.59 ZHONGCHANG MAR-A 600242 20.42 -1.12 HONG KONG ASIA TELEMEDIA L 376 16.62 -5.37 BUILDMORE INTL 108 13.08 -43.45 CHINA COMMUNICAT 8206 39.84 -4.10 CHINA GOLDEN DEV 162 255.15 -4.51 CHINA HEALTHCARE 673 37.98 -2.81 CMMB VISION HOLD 471 38.50 -8.34 COSMO INTL 1000 120 83.67 -25.33 EGANAGOLDPFEIL 48 557.89 -132.86 FULBOND HLDGS 1041 80.19 -59.51 IMAGI INTERNATIO 585 11.29 -21.23 JACKIN INTL HLDG 630 50.53 -1.92 KING STONE ENERG 663 483.80 -64.12 MELCOLOT LTD 8198 65.62 -25.95 MITSUMARU EAST K 2358 21.23 -9.04 NEW CITY CHINA 456 112.20 -14.59 NGAI LIK INDL 332 21.16 -3.64 PAC PLYWOOD 767 68.66 -12.31 PALADIN LTD 495 155.31 -10.91 PCCW LTD 8 5,801.75 -261.18 PROVIEW INTL HLD 334 314.87 -294.85 SINO RESOURCES G 223 25.07 -39.10 TACK HSIN HLDG 611 27.01 -62.70 TONIC IND HLDGS 978 56.17 -54.52 INDONESIA ASIA PACIFIC POLY 494.87 -841.93 JAKARTA KYOEI ST JKSW 28.61 -45.23 MITRA INTERNATIO MIRA 1,006.35 -185.12 MITRA RAJASA-RTS MIRA-R2 1,006.35 -185.12 MULIA INDUSTRIND MLIA 360.87 -368.54 PANASIA FILAMENT PAFI 47.01 -6.29 PANCA WIRATAMA PWSI 30.17 -37.32 PRIMARINDO ASIA BIMA 11.00 -21.84 STEADY SAFE TBK SAFE 12.29 -7.96 SURABAYA AGUNG SAIP 265.80 -83.61 UNITEX TBK UNTX 16.67 -14.92 INDIA ALCOBEX METALS AML 16.59 -21.47 ARTSON ENGR ART 15.63 -1.61 ASHIMA LTD ASHM 63.65 -55.81 BALAJI DISTILLER BLD 66.32 -25.40 BELLARY STEELS BSAL 451.68 -108.50 BHAGHEERATHA ENG BGEL 22.65 -28.20 CAMBRIDGE SOLUTI CAMB 156.75 -46.79 CFL CAPITAL FIN CEATF 14.31 -40.04 COMPUTERSKILL CPS 14.90 -7.56 CORE HEALTHCARE CPAR 185.36 -241.91 DCM FINANCIAL SE DCMFS 16.06 -9.47 DIGJAM LTD DGJM 98.77 -14.62 DISH TV INDIA DITV 422.08 -127.61 DUNCANS INDUS DAI 116.96 -183.24 GANESH BENZOPLST GBP 43.99 -24.57 GEM SPINNERS LTD GEMS 15.23 -0.11 GLOBAL BOARDS GLB 25.15 -0.79 GSL INDIA LTD GSL 37.04 -42.34 GSL NOVA PETROCH GSLN 44.39 -0.93 GUJARAT SIDHEE GSCL 59.44 -0.66 HARYANA STEEL HYSA 10.83 -5.91 HENKEL INDIA LTD HNKL 102.05 -10.24 HFCL INFOTEL LTD HFCL 173.52 -101.57 HIMACHAL FUTURIS HMFC 406.63 -210.98 HINDUSTAN PHOTO HPHT 68.94 -1,147.18 HINDUSTAN SYNTEX HSYN 12.68 -1.79 HMT LTD HMT 139.31 -277.69 ICDS ICDS 13.30 -6.17 INDIA FOILS LTD IF 54.77 -2.70 INFOMEDIA 18 LTD INF18 35.80 -1.94 INTEGRAT FINANCE IFC 45.56 -43.27 ITI LTD ITI 1,116.21 -0.80 JCT ELECTRONICS JCTE 122.54 -50.00 JD ORGOCHEM LTD JDO 10.46 -1.60 JENSON & NIC LTD JN 17.91 -84.78 JIK INDUS LTD KFS 20.63 -5.62 JK SYNTHETICS JKS 13.51 -3.03 JOG ENGINEERING VMJ 50.08 -10.08 KALYANPUR CEMENT KCEM 37.45 -45.90 KERALA AYURVEDA KRAP 13.41 -0.59 KINGFISHER AIR KAIR 1,458.64 -418.91 LLOYDS FINANCE LYDF 27.68 -8.64 LLOYDS STEEL IND LYDS 415.66 -63.93 MILLENNIUM BEER MLB 36.39 -3.20 MILTON PLASTICS MILT 18.31 -40.44 NICCO UCO ALLIAN NICU 32.23 -71.91 NK INDUS LTD NKI 49.04 -4.95 ORIENT PRESS LTD OP 16.70 -0.09 PANCHMAHAL STEEL PMS 51.02 -0.33 PARASRAMPUR SYN PPS 111.97 -317.11 PAREKH PLATINUM PKPL 61.08 -88.85 PEACOCK INDS LTD PCOK 11.40 -14.40 PIRAMAL LIFE SC PLSL 45.82 -32.69 POLAR INDS LTD PLI 11.61 -22.28 RAMA PHOSPHATES RMPH 34.07 -1.19 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIGARE TECHNOV RTCL 44.13 -1.46 RENOWNED AUTO PR RAP 14.12 -1.25 ROLLATAINERS LTD RLT 22.97 -22.24 ROYAL CUSHION RCVP 20.22 -62.97 SCOOTERS INDIA SCTR 13.29 -0.58 SHALIMAR WIRES SWRI 24.49 -49.90 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE RAMA MULTI SRMT 63.73 -52.93 SIDDHARTHA TUBES SDT 70.93 -12.09 SIL BUSINESS ENT SILB 12.46 -19.96 SOUTHERN PETROCH SPET 1,543.61 -35.61 SPICEJET LTD SJET 147.98 -84.65 STERLING HOL RES SLHR 52.91 -0.63 STI INDIA LTD STIB 28.05 -8.04 TAMILNADU TELE TNT 12.82 -5.15 TATA TELESERVICE TTLS 1,069.83 -154.99 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 24.39 -8.90 TUTICORIN ALKALI TACF 14.15 -11.20 UNIFLEX CABLES UFC 45.05 -0.90 UNIFLEX CABLES UFCZ 45.05 -0.90 UNIWORTH LTD WW 145.71 -114.87 USHA INDIA LTD USHA 12.06 -54.51 VENTURA TEXTILES VRTL 14.25 -0.33 WINDSOR MACHINES WML 14.50 -28.14 WIRE AND WIRELES WNW 115.34 -34.49 JAPAN ARDEPRO 8925 310.82 -253.28 DAIWASYSTEM CO 8939 607.68 -259.76 HARAKOSAN CO 8894 225.69 -62.68 JIPANGU HOLDINGS 2684 15.05 -8.38 KNT 9726 1,058.18 -13.37 L CREATE CO LTD 3247 42.34 -9.15 LCA HOLDINGS COR 4798 51.30 -2.57 NIHON INTER ELEC 6974 218.08 -50.73 PROPERST CO LTD 3236 305.90 -330.20 RAYTEX CORP 6672 61.49 -3.49 SAIKAYA CO LTD 8254 375.83 -72.59 SHINWA OX CORP 2654 41.06 -24.43 SHIOMI HOLDINGS 2414 190.97 -22.81 SUMITOMO MITSUI 1821 2,382.17 -98.97 TERRANETZ CO LTD 2140 11.63 -4.29 KOREA AJU MEDIA SOL-PF 44775 13.82 -1.25 DAHUI CO LTD 55250 186.00 -1.50 DAISHIN INFO 20180 740.50 -158.45 KEYSTONE GLOBAL 12170 10.61 -0.74 KUKDONG CORP 5320 51.19 -1.39 KUMHO INDUS-PFD 2995 5,837.32 -967.28 KUMHO INDUSTRIAL 2990 5,837.32 -967.28 ORICOM INC 10470 82.65 -40.04 SAMT CO LTD 31330 200.83 -152.09 TAESAN LCD CO 36210 296.83 -91.03 TONG YANG MAGIC 23020 355.15 -25.77 YOUILENSYS CORP 38720 166.70 -12.34 MALAYSIA AXIS INCORPORATI AXIS 39.22 -86.70 GULA PERAK BHD GUP 117.66 -0.91 HO HUP CONSTR CO HO 71.29 -5.69 LCL CORP BHD LCL 45.27 -111.27 LIMAHSOON BHD LIMA 26.52 -1.56 LUSTER INDUSTRIE LSTI 35.61 -0.32 MANGOTONE GROUP MTON 10.14 -12.16 MEMS TECHNOLOGY MEMS 10.41 -20.77 OILCORP BHD OILC 134.45 -59.41 TRACOMA HOLDINGS TRAH 75.40 -5.29 WWE HOLDINGS BHD WWE 67.19 -4.08 NEW ZEALAND DOMINION FINANCE DFH 258.90 -55.31 PHILIPPINES APEX MINING 'B' APXB 45.84 -20.95 APEX MINING-A APX 45.84 -20.95 BENGUET CORP 'B' BCB 80.66 -37.36 BENGUET CORP-A BC 80.66 -37.36 CYBER BAY CORP CYBR 13.30 -83.83 EAST ASIA POWER PWR 42.01 -159.00 FIL ESTATE CORP FC 38.38 -13.37 FILSYN CORP A FYN 22.72 -10.89 FILSYN CORP. B FYNB 22.72 -10.89 GOTESCO LAND-A GO 18.68 -10.86 GOTESCO LAND-B GOB 18.68 -10.86 MRC ALLIED INC MRC 13.26 -5.43 PICOP RESOURCES PCP 105.66 -23.33 PRIME ORION PHIL POPI 90.35 -5.12 STENIEL MFG STN 22.11 -13.42 UNIVERSAL RIGHTF UP 45.12 -13.48 UNIWIDE HOLDINGS UW 52.80 -56.18 VICTORIAS MILL VMC 164.26 -18.20 SINGAPORE ADV SYSTEMS AUTO ASA 13.35 -12.49 ADVANCE SCT LTD ASCT 16.05 -43.84 FALMAC LTD FAL 10.12 -6.80 HL GLOBAL ENTERP HLGE 93.41 -11.84 JURONG TECH IND JTL 98.76 -227.28 LINDETEVES-JACOB LJ 145.25 -85.84 SUNMOON FOOD COM SMOON 13.75 -14.24 TT INTERNATIONAL TTI 262.41 -48.15 WESTECH ELECTRON WTE 20.26 -13.94 THAILAND ABICO HLDGS-F ABICO/F 15.28 -4.40 ABICO HOLDINGS ABICO 15.28 -4.40 ABICO HOLD-NVDR ABICO-R 15.28 -4.40 ASCON CONSTR-NVD ASCON-R 59.78 -3.37 ASCON CONSTRUCT ASCON 59.78 -3.37 ASCON CONSTRU-FO ASCON/F 59.78 -3.37 BANGKOK RUBBER BRC 92.72 -69.37 BANGKOK RUBBER-F BRC/F 92.72 -69.37 BANGKOK RUB-NVDR BRC-R 92.72 -69.37 CIRCUIT ELEC PCL CIRKIT 17.39 -88.00 CIRCUIT ELEC-FRN CIRKIT/F 17.39 -88.00 CIRCUIT ELE-NVDR CIRKIT-R 17.39 -88.00 DATAMAT PCL DTM 12.69 -6.13 DATAMAT PCL-NVDR DTM-R 12.69 -6.13 DATAMAT PLC-F DTM/F 12.69 -6.13 ITV PCL ITV 35.05 -97.14 ITV PCL-FOREIGN ITV/F 35.05 -97.14 ITV PCL-NVDR ITV-R 35.05 -97.14 K-TECH CONSTRUCT KTECH 39.74 -33.07 K-TECH CONSTRUCT KTECH/F 39.74 -33.07 K-TECH CONTRU-R KTECH-R 39.74 -33.07 KUANG PEI SAN POMPUI 17.70 -12.74 KUANG PEI SAN-F POMPUI/F 17.70 -12.74 KUANG PEI-NVDR POMPUI-R 17.70 -12.74 PATKOL PCL PATKL 52.89 -30.64 PATKOL PCL-FORGN PATKL/F 52.89 -30.64 PATKOL PCL-NVDR PATKL-R 52.89 -30.64 PICNIC CORPORATI PICNI-R 162.04 -79.86 PICNIC CORPORATI PICNI/F 162.04 -79.86 PICNIC CORPORATI PICNI 162.04 -79.86 PONGSAAP PCL PSAAP 24.33 -7.95 PONGSAAP PCL PSAAP/F 24.33 -7.95 PONGSAAP PCL-NVD PSAAP-R 24.33 -7.95 SAFARI WORLD PUB SAFARI 107.40 -17.63 SAFARI WORLD-FOR SAFARI/F 107.40 -17.63 SAFARI WORL-NVDR SAFARI-R 107.40 -17.63 SAHAMITR PRESS-F SMPC/F 21.99 -4.01 SAHAMITR PRESSUR SMPC 21.99 -4.01 SAHAMITR PR-NVDR SMPC-R 21.99 -4.01 SUNWOOD INDS PCL SUN 19.86 -13.03 SUNWOOD INDS-F SUN/F 19.86 -13.03 SUNWOOD INDS-NVD SUN-R 19.86 -13.03 THAI-DENMARK PCL DMARK 15.72 -10.10 THAI-DENMARK-F DMARK/F 15.72 -10.10 THAI-DENMARK-NVD DMARK-R 15.72 -10.10 THAI-GERMAN PR-F TGPRO/F 53.72 -2.14 THAI-GERMAN PRO TGPRO 53.72 -2.14 THAI-GERMAN-NVDR TGPRO-R 53.72 -2.14 TRANG SEAFOOD TRS 13.15 -3.20 TRANG SEAFOOD-F TRS/F 13.15 -3.20 TRANG SFD-NVDR TRS-R 13.15 -3.20 UNIVERSAL S-NVDR USC-R 110.70 -26.69 UNIVERSAL STARCH USC 110.70 -26.69 UNIVERSAL STAR-F USC/F 110.70 -26.69 TAIWAN CHIEN TAI CEMENT 1107 202.42 -33.40 HELIX TECH-EC 2479T 23.39 -24.12 HELIX TECH-EC IS 2479U 23.39 -24.12 HELIX TECHNOL-EC 2479S 23.39 -24.12 PRODISC TECH 2396 253.76 -36.04 TAIWAN KOL-E CRT 1606U 507.21 -147.14 TAIWAN KOLIN-EN 1606V 507.21 -147.14 TAIWAN KOLIN-ENT 1606W 507.21 -147.14 VERTEX PREC-ENTL 5318T 42.86 -0.71 VERTEX PRECISION 5318 42.86 -0.71 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. 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$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***