/raid1/www/Hosts/bankrupt/TCRAP_Public/110311.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, March 11, 2011, Vol. 14, No. 50
Headlines
A U S T R A L I A
CLUB COFFS: Creditors Approve Deed of Company Arrangement
PERPETUAL CORPORATE: Moody's Assigns Ratings to Various Notes
C H I N A
SHIMAO PROPERTY: Fitch Assigns 'BB+' Rating to Senior Notes
SPG LAND: Moody's Assigns 'Ba3' Corporate Family Rating
H O N G K O N G
ACTION INDUSTRIAL: Creditors' Proofs of Debt Due March 31
AZICO INT'L: Creditors and Contributories to Meet on March 15
BLUE OCEAN: Court Enters Wind-Up Order
DEEP WORTH: Court to Hear Wind-Up Petition on April 27
DAYNICE INTERNATIONAL: Wu and Cheung Step Down as Liquidators
TOP BLOOM: Court Enters Wind-Up Order
TOPPER SILICON: Members and Creditors to Meet on March 22
TOYS STATION: Court to Hear Wind-Up Petition on March 23
TREASURE LAKE: Court Enters Wind-Up Order
UNION BRIDGE: Court Enters Wind-Up Order
I N D I A
A G AEROVISION: ICRA Assigns 'LBB' Rating to INR45.46cr Bank Loan
AIR INDIA: Incurs Daily Loss of INR21cr, Government Admits
ALAM TANNERY: CRISIL Raises Rating on INR22MM Term Loan to 'BB'
DHIVAKAR SPINNING: CRISIL Assigns 'B+' Rating to INR26.3MM Loan
GINNI GOLD: ICRA Assigns 'LBB' Rating to INR30cr Fund-Based Limit
H S INDIA: CRISIL Cuts Rating on INR2.5MM Cash Credit to 'B+'
INDIRA SECURITIES: CRISIL Raises Rating on Bank Guarantee to 'P4+'
JAIVIGNESH SPINNER: CRISIL Assigns 'D' Ratings to Various Debts
JOHNSON AGRITECH: CRISIL Assigns 'B-' Rating to INR58.6MM Loan
KITCHEN GRACE: CRISIL Reaffirms 'B+' on INR80 Million Term Loan
LOK-BETA PHARMACEUTICALS: CRISIL Reaffirms 'B+' Cash Credit Rating
MANSI INDUSTRIES: CRISIL Raises Rating on Term Loan to 'BB-'
PCH MARKETING: CRISIL Assigns 'BB' Rating to INR1.08MM Cash Credit
PRACHIN FOUNDATION: CRISIL Rates INR100 Million LT Loan at 'B-'
SHRI RAM: CRISIL Reaffirms 'BB' Rating to INR30MM Term Loan
SHRI SUDERSHAN: ICRA Reaffirms 'LB+' Rating on INR6.1cr Bank Loan
SIMHAPURI ENERGY: ICRA Assigns 'LBB+' to INR1204cr Term Loan
SURAJ CONSTRUCTIONS: Fitch Shifts Rating to 'Non-Monitored' Status
ZENITH FORGE: ICRA Assigns 'LBB' Rating to INR3.99cr Term Loan
I N D O N E S I A
XL AXIATA: Fitch Upgrades Issuer Default Rating to 'BB+'
J A P A N
INCUBATOR BANK: Aeon Bank Mulls Incubator's Sponsorship
K O R E A
HYUNDAI ENGINEERING: Hyundai Motor Inks Final Deal with Creditors
SSANGYONG MOTOR: Emerges from Bankruptcy Protection
N E W Z E A L A N D
CENTURY CITY: Liquidation Hearing Adjourned Until April 18
PIKE RIVER: Receivers Take Control of Pike River Coal Mine
PIKE RIVER: Receivers Get "Unsolicited Approaches" from Buyers
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
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A U S T R A L I A
=================
CLUB COFFS: Creditors Approve Deed of Company Arrangement
---------------------------------------------------------
Belinda Scott at The Coffs Coast Advocate reports that creditors
of Club Coffs voted unanimously to approve a deed of company
arrangement at the creditors' meeting on March 7, the second held
by the administrators.
After payment to the club's major creditor, the National Australia
Bank, which was a secured creditor owed AU$408,000, the club owes
its remaining creditors about AU$1.1 million, which includes
future employee entitlements, the Advocate says.
According to the Advocate, the deed of arrangement outlined by
administrators Morgan Chubb and David Morgan, involves the sale of
a number of properties owned by the club in West High Street and
Gundagai Street.
It also means that creditors must be prepared to wait until
December 2012 to receive the full amount they are owed but a
possible part-payment could be made in six to eight months, the
report notes.
Club Coffs, formerly known as Catholic Club, went into voluntary
administration on January 31. Morgan Chubb and David Morgan, from
insolvency firm Clout and Associates, were appointed as
administrators.
The Advocate says Club Coffs president Paul Griffin and CEO Carl
Mower cited the withdrawal of lending facilities by the National
Australia Bank; an expensive legal battle; general community
hardship and a decrease in turnover throughout all areas of the
club as the reasons for the move, which allowed the club to
continue providing its usual services and facilities.
PERPETUAL CORPORATE: Moody's Assigns Ratings to Various Notes
-------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
notes issued by Perpetual Corporate Trust Limited in its capacity
as trustee of the SMART Series 2011-1US Trust.
Issuer: SMART Series 2011-1US Trust
-- US$98.0 million Class A-1 Notes, Assigned (P)P-1 (sf);
-- US$108.0 million Class A-2 Notes, Assigned (P)Aaa (sf);
-- US$178.0 million Class A-3 Notes, Assigned (P)Aaa (sf);
-- US$116.0 million Class A-4 Notes, Assigned (P)Aaa (sf);
-- AUD12.8 million Class B Notes, Assigned (P)Aa2 (sf);
-- AUD15.6 million Class C Notes, Assigned (P)A2 (sf);
-- AUD14.2 million Class D Notes, Assigned (P)Baa2 (sf);
-- AUD14.2 million Class E Notes, Assigned (P)Ba2 (sf).
The AUD5.7 million Seller Notes are not rated by Moody's.
The Class A-2, Class A-3 and Class A-4 Notes may be offered as
either fixed or floating rate notes. Where the Class A-2, Class
A-3 fixed and floating rate notes are offered, the notes will be
issued as Class A-2a, Class A-2b, Class A-3a, Class A-3b, Class A-
4a and Class A-4b respectively.
The transaction is a securitization of a portfolio of Australian
novated leases, commercial hire purchase agreements, chattel
mortgages and finance leases secured by motor vehicles, originated
by Macquarie Leasing Pty Limited.
"This is the second Australian ABS transaction targeted at the US
market, following Macquarie's previous US$ deal in July 2010",
says Ilya Serov, Moody's lead analyst for the transaction.
"Whilst to date Macquarie has been the only Australian ABS issuer
to go to the US, the deal does point to offshore markets becoming
more important in the long-run", he adds.
Ratings Rationale
In broad terms SMART Series 2011-1US Trust replicates structures
seen in previous SMART transactions sponsored by Macquarie, and
closely follows the structure seen in SMART Series 2010-1US Trust.
Notable features of the transaction include the conservative
composition of the receivables pool backing the transaction, the
US$-denominated senior notes and the pro-rata principal repayment
profile.
The pool includes a relatively high percentage of novated leases
(62%). Moody's considers novated leases to have a lower level of
risk than other contract types and this is a positive feature of
the transaction. At the same time, the deal is exclusively backed
by motor vehicles, predominantly cars. Past SMART and other
Australian ABS transactions typically include 10-15% of other
equipment types. In Moody's opinion, motor vehicles exhibit less
pro-cyclical default patterns and, on average, higher recovery
rates. As a result, Moody's views the SMART 2011-1US Trust pool
as more conservatively structured than peer portfolios.
In order to fund the purchase price of the portfolio, the Trust
will issue up to twelve classes of notes. The notes will be
repaid on a sequential basis in the initial stages (until the
subordination percentage increases from the initial 11.0% to
18.9%, and from 12.0% to 19.9% including the liquidity reserve)
and during the tail end of the transaction. At all other times,
the structure will follow a pro rata repayment profile. This
principal paydown structure is a departure from other comparable
structures in the Australian ABS market.
The deal will include a minimum of four (and up to seven in the
event both fixed and floating rate notes are issued) senior, US$-
denominated tranches. The Class A-1 Notes are fast-pay money-
market notes, rated P-1. The Class A Notes will be repaid
sequentially within the Class A Note allocation. The ratings are
based on the credit enhancement provided by the subordinated notes
and the liquidity reserve, in total equal to 12% for the Class A
Notes.
An unusual feature of the transaction is that the maturity dates
of the Class A Notes were set not with reference to the maturity
of the longest dated receivable but rather with reference to the
scheduled principal amortization profile (with a certain buffer to
allow for defaults and delinquencies). Moody's has accounted for
the possibility of losses and delinquencies during the term of the
Class A notes in its assessment of the likelihood of their
repayment and believes scheduled principal amortization to be
sufficient to repay the Class A Notes by the maturity dates in
full.
Moody's base case assumptions are a default rate of 1.80% and a
recovery rate of 40%. These imply an expected (net) loss of
1.08%. Both the default rate and the recovery rate have been
stressed relative to observed historical levels of 1.26% and 50-
55% respectively.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for timely payment of
interest and ultimate payment of principal by the legal final
maturity.
Volatility Assumption Scores And Parameter Sensitivities
The V Score for this transaction is Low/Medium, which is in line
with the score assigned for the Australian ABS sector. Among
other factors, Moody's note the availability of a substantial
amount of historical performance data in the Australian ABS market
as well as on an issuer-by-issuer basis. Here, for instance,
Moody's have been provided with detailed vintage and individual
default data for the 1998-2010 period. In addition, Moody's
observe that Australian auto ABS, and specifically past SMART
transactions, have to date been performing stably. This allows
Moody's to have a material degree of comfort with regard to
assumptions made in rating the SMART Series 2011-1US Trust.
V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of rating
changes. The V Score has been assigned accordingly to the report
"V Scores and Parameter Sensitivities in the Asia/Pacific RMBS
Sector", published in March 2009.
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process - here, the expected
loss and the Aaa credit enhancement - differed. The analysis
assumes that the deal has not aged. Parameter Sensitivities only
reflect the ratings impact of each scenario from a
quantitative/model-indicated standpoint.
In the case of SMART Series 2011-1US Trust, the Class A Notes
remain strongly investment grade and typically Aa when the default
rate rises to 3.60% (double of Moody's assumption of 1.80%).
Similarly, high investment grade ratings are maintained when the
base recovery rate is stressed from the assumed 40% to 20%
(holding other factors, including the assumed default rate of
1.80% constant). Where the default rate assumption doubles and
the recovery rate assumption halves, the rating drops to A1.
Moody's Investors Service did not receive or take into account any
third party due diligence reports on the underlying assets or
financial instruments in this transaction.
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C H I N A
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SHIMAO PROPERTY: Fitch Assigns 'BB+' Rating to Senior Notes
-----------------------------------------------------------
Fitch Ratings has assigned Shimao Property Holdings Limited's
('BB+'/Stable) US$350 million senior unsecured notes due 2018 a
final 'BB+' rating.
This follows the receipt of documents conforming to information
already received. The final rating is in line with the expected
rating assigned on March 1, 2011.
SPG LAND: Moody's Assigns 'Ba3' Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating to SPG Land (Holdings) Limited.
Moody's has also assigned a provisional (P)B1 rating to its
proposed US$senior unsecured bond issue.
The ratings outlook is stable.
The proceeds from the proposed bonds will be used for repayment of
offshore loans and general corporate purposes.
The provisional status of the bond rating will be removed after
SPG Land has completed the US$ issuance.
Ratings Rationale
"SPG Land's Ba3 corporate family rating reflects the company's
well-located land bank -- mainly in the affluent and fast-growing
Yangtze River Delta -- and its track record for developing large-
scale housing and high-end integrated projects," says Kaven Tsang,
a Moody's AVP/Analyst.
"The rating is constrained, however, by the high execution and
financing risk arising from SPG's fast-growth plan; its
geographically concentrated operations; and its high debt
leverage, relative to that of its Ba3 peers," says Tsang, also the
lead analyst for the company.
"SPG Land's expansion risk could be partly mitigated as it shared
some of the risk through joint ventures or partnerships, even
though it would lack full control. This type of arrangement would
also allow SPG Land some flexibility with regard to timing
investment payments, as well as the benefit of lower land costs,"
says Tsang.
SPG Land's bond rating is notched down to B1, reflecting
structural and legal subordination. The ratio of secured and
subsidiary debt to total assets stood at 27% as of June 2010.
Moody's expects this ratio to stay around 15-20% in the coming two
to three years, as the company continues to rely on onshore bank
loans to fund its construction work.
The rating outlook is stable, reflecting Moody's expectation that
SPG Land will maintain its business model, with its focus on the
Yangtze River Delta, and manage its expansion and business in a
disciplined manner. Moody's also expects the company to maintain
adequate liquidity and an uninterrupted access to bank funding to
support its property development business.
Downward rating pressure could emerge if (1) sales fall
significantly below target; (2) the company materially raises its
investment in projects and land acquisitions such that cash flow
is negatively affected; or (3) its debt leverage rises materially
or its balance sheet cash declines.
Moody's sees EBITDA/interest falling below 2.5-3x and adjusted
debt/capitalization consistently above 55-60% as indications for a
potential ratings downgrade.
Upward rating pressure is limited over the near term, but could
emerge over the medium term if SPG Land (1) achieves its sales
targets; (2) diversifies its geographic concentration; and (2)
shows good financial discipline and expands cautiously, while
maintaining sound liquidity and credit metrics.
Moody's sees EBITDA/interest coverage consistently above 4-5x and
adjusted debt leverage below 45-50% as indications for a potential
ratings upgrade.
SPG Land (Holdings) Limited is a Chinese property company focusing
on large-scale residential and integrated property development in
the Yangtze River Delta. The company has a land bank of 6.09
million sqm in gross floor area in nine cities in China. Around
70% of the land bank is in cities along the Yangtze River, such as
Shanghai, Suzhou, Wuxi, Changshu, and Huangshan.
================
H O N G K O N G
================
ACTION INDUSTRIAL: Creditors' Proofs of Debt Due March 31
---------------------------------------------------------
Creditors of Action Industrial (International) Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by March 31, 2011, to be included in the company's
dividend distribution.
The company's liquidators are:
Kennic Lai Hang Lui
Lau Wu Kwai King Lauren
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
AZICO INT'L: Creditors and Contributories to Meet on March 15
-------------------------------------------------------------
Creditors and contributories of Azico International (Hong Kong)
Limited will hold their first meetings on March 15, 2011, at 3:00
p.m., and 3:30 p.m., respectively at Unit 511, 5/F, Tower 1,
Silvercord, 30 Canton Road, Tsimshatsui, Kowloon in Hong Kong.
At the meeting, Ho Man Kit Horace and Kong Sau Wai, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
BLUE OCEAN: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on Feb. 23, 2011, to
wind up the operations of Blue Ocean Environment Solutions
Limited.
The official receiver is E T O'Connell.
DEEP WORTH: Court to Hear Wind-Up Petition on April 27
------------------------------------------------------
A petition to wind up the operations of Deep Worth Investment
Limited will be heard before the High Court of Hong Kong on
April 27, 2011, at 9:30 a.m.
The Petitioner's solicitors are:
Ho and Partners
Office Nos. 1001-1002
10th Floor, Regent Centre
No. 88 Queen's Road
Central, Hong Kong
DAYNICE INTERNATIONAL: Wu and Cheung Step Down as Liquidators
-------------------------------------------------------------
Wu Shek Chun Wilfred and Cheung Simon stepped down as liquidators
of Daynice International Limited on Jan. 6, 2011.
TOP BLOOM: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Feb. 23, 2011, to
wind up the operations of Top Bloom Limited.
The official receiver is E T O'Connell.
TOPPER SILICON: Members and Creditors to Meet on March 22
---------------------------------------------------------
Members and creditors of Topper Silicon Steel Industry Company
Limited will hold their first meetings on March 22, 2011, at 3:30
p.m., at Room 1909-10, Nan Fung Tower, 173 Des Voeux Road Central,
in Hong Kong.
At the meeting, Lau Siu Hung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
TOYS STATION: Court to Hear Wind-Up Petition on March 23
--------------------------------------------------------
A petition to wind up the operations of Toys Station Co., Limited
will be heard before the High Court of Hong Kong on March 23,
2011, at 9:30 a.m.
Hung Kin Ming filed the petition against the company on Jan. 17,
2011.
The Petitioner's solicitors are:
Simon Ho & Co
Room 1502, 15th Floor
161 Des Voeux Road
Central, Hong Kong
TREASURE LAKE: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Jan. 26, 2011, to
wind up the operations of Treasure Lake International Limited.
The company's liquidator is:
Mat Ng
20/F Henley Building
5 Queen's Road
Central, Hong Kong
UNION BRIDGE: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on Feb. 23, 2011, to
wind up the operations of Union Bridge International Limited.
The official receiver is E T O'Connell.
=========
I N D I A
=========
A G AEROVISION: ICRA Assigns 'LBB' Rating to INR45.46cr Bank Loan
-----------------------------------------------------------------
ICRA has assigned 'LBB' rating to the INR45.46 crore fund based
facilities of A G Aerovision Electronics Private Limited. ICRA
has assigned Stable outlook to the long-term rating. ICRA has
also assigned 'A4' rating to the INR9.10 crore non-fund based
facilities of AGA.
The assigned ratings are constrained by high debt funded capital
expenditure plan of AGA, its low profitability and the resulting
stressed debt protection metrics of the company. AGA with a gross
block of INR6.1 crore in FY 09 has embarked on aggressive
expansion cum diversification strategy with an estimated capex of
around INR59 crore. A large portion (around 75%) of the proposed
capital expenditure will be funded through debt. Moreover, AGA is
exposed to high competitive intensity in contract manufacturing
business with its low value added nature of operations. However,
the ratings draw comfort from the promoter's experience in the
contract manufacturing business, their long standing experience
with Samsung and expected improvement in profitability due to
company's move towards backward integration. The ratings also
favorably factor in the revenue visibility on account of the facts
that the company's new facility in Sriperambadur is in close
proximity to Samsung's manufacturing complex providing it the
opportunity to cater to various product segments of Samsung; and
that the company has become a vendor for Voltas and will cater to
Voltas' requirement in South India. The company's ability to
complete its expansion on time, ramp up its capacity utilization
levels by increasing its business share with its clients and
improve its profitability margins will be the key rating
sensitivities going forward.
About A G Aerovision
A G Aerovision Electronics Private Limited is engaged in the
assembly of air conditioners (AC) as an Original Equipment
Manufacturer (OEM) for consumer goods industry. AGA also
manufactures plastic components for consumer electronic appliances
like refrigerators, television sets, ACs and EPS moulding
corrugated boxes for their packaging. The company has it
facilities at Kala Amb in Himachal Pradesh and a recently
commissioned facility at Sriperambadur (near Chennai) in
Kanchipuram, Tamil Nadu. Till 2009, the company was catering to
Samsung's AC business. However, with setting up a new facility in
Sriperambadur, the company has started catering to Voltas and
automobile ancillaries like Borg Warner etc. The company is in
the process of expanding its capacity in its Sriperambadur unit.
AGA is part of the Intec group of companies promoted by first
generation entrepreneur Mr Amarjit Singh.
AIR INDIA: Incurs Daily Loss of INR21cr, Government Admits
----------------------------------------------------------
The Times of India reports that the government on Wednesday
admitted the financial mess in national carrier Air India when it
said the airline earns INR36 crore a day against an expenditure of
INR57 crore, a daily loss of INR21 crore.
The Times of India quotes aviation minister Vayalar Ravi as saying
that, "We are paying compulsory payment abroad of INR16 crore and
committed payment in India is INR20 crore. But the total
expenditure comes to INR57 crore."
In fact, buying fuel is becoming a struggle. Till last month, the
airline had run up dues of over INR2,280 crore to oil PSUs. "The
government has infused INR1,200 crore, out of this, we have given
INR475 crore to oil companies. It is true that INR1,900 crore is
still pending," he said.
With oil companies putting AI on cash-and-carry, it pays
INR12.5 crore daily to keep its planes airborne. So far, AI has
paid INR1,147.5 crore as daily payment. Ravi told Parliament that
oil companies have been requested to give credit to AI as they do
to private carriers, but the please have fallen on deaf ears.
"We are requesting that Air India must get the treatment which is
being extended to the private companies," Mr. Ravi said.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes. The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand. The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown. The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09. Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.
The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15. The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years. Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.
ALAM TANNERY: CRISIL Raises Rating on INR22MM Term Loan to 'BB'
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Alam Tannery Pvt Ltd to 'BB/Stable' from 'BB-/Stable' while
reaffirming its rating on the short-term bank facilities at 'P4+'.
Facilities Ratings
---------- -------
INR85 Million Foreign Bills BB/Stable (Upgraded from
Purchased/Foreign Bills Discounting 'BB-')
INR180 Million Packing Credit BB/Stable (Upgraded from
'BB-')
INR85 Million Export Bill Negotiation BB/Stable (Upgraded from
'BB-')
INR23 Million Proposed LT Bank BB/Stable (Upgraded from
Loan Facility 'BB-')
INR22 Million Term Loan BB/Stable (Upgraded from
'BB-')
INR25 Million Letter of Credit P4+ (Reaffirmed)
The ratings reflect improvement in Alam Tannery's operating margin
by diversifying into higher value-added products. The rating
upgrade also reflects expected improvement in the company's
revenue backed by growing order book and acquisition of clients in
newer geographies such as China.
The ratings, however, continue to reflect Alam Tannery's exposure
to risks relating to the working-capital-intensive nature of the
leather industry, small scale of operations, and intense
competition. These weaknesses are partially offset by Alam
Tannery's comfortable financial risk profile marked by moderate
net worth, low gearing and average debt protection measures, and
the benefits that the company derives from the experience of its
promoters in the leather industry.
Outlook: Stable
CRISIL believes that Alam Tannery will maintain its business risk
profile over the medium term, supported by its established
presence in the leather upholstery industry. The outlook may be
revised to 'Positive' if the company's revenues increase
substantially backed by stable operating margin. Conversely, the
outlook may be revised to 'Negative' if Alam Tannery's capital
structure deteriorates significantly, most likely because of debt-
funded capital expenditure, or if its working capital requirements
increase considerably.
About Alam Tannery
Alam Tannery traces its origins to the early 1920s when
Mr. Mohammed Hanif set up a raw hide and skin trading centre in
North Bihar. In 1962, the promoter family set up a partnership
firm, Maqbul Alam & Co, which began operations by exporting dry
salted skin and wet blue leather to the European markets. In
1970, the promoters shifted to Kolkata. Alam Tannery was set up
by Mr. Maqbul Alam (son of Mr. Hanif). The company has two
tannery units, and currently manufactures leather sofa and chair
covers. It markets its products in the UK, South Africa, Germany,
Poland, Hungary and Australia.
For 2009-10 (refers to financial year, April 1 to March 31), Alam
Tannery reported a profit after tax (PAT) of INR11.9 million on
net sales of INR459.7 million, as against a PAT of INR32.4 million
on net sales of INR459.4 million for 2008-09.
DHIVAKAR SPINNING: CRISIL Assigns 'B+' Rating to INR26.3MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'B+/stable' rating to Dhivakar Spinning
Mills Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR25.0 Million Cash Credit B+/Stable (Assigned)
INR26.3 Million Term Loan B+/Stable (Assigned)
The rating reflects Dhivakar's small scale of operations, weak
financial risk profile, marked by weak protection metrics, and
exposure to risks related to intense competition in the spinning
industry. These rating weaknesses are partially offset by
Dhivakar's established track record in the spinning industry.
Outlook: Stable
CRISIL believes that Dhivakar will continue to benefit over the
medium term from its longstanding presence in the spinning
industry. The financial risk profile is expected to remain
constrained due to weak debt protection measures. The outlook may
be revised to 'Positive' if the company reports higher-than-
expected sales growth, while improving its profitability, leading
to an improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if Dhivakar's financial risk
profile deteriorates significantly because of larger-than-expected
debt contracted to fund capital expenditure (capex) or large
working capital requirements.
About Dhivakar Spinning
Set up in 1993 by Mr. K Tangamani, Dhivakar manufactures and sells
polyester cotton blended yarn and cotton fabrics. The company's
manufacturing plant in Coimbatore (Tamil Nadu) has capacity of
15,216 spindles. Out of the total capacity, 3024 spindles are not
utilised because of technology constraints. The company was only
involved in cotton yarn spinning till 2007-08 (refers to financial
year, April 1 to March 31), but because of unfavorable market
conditions, it forayed into manufacturing of blended yarn. The
company produces blended yarn ranging from 32s to 54s count with a
blend of 65 per cent polyester and 35 per cent cotton.
Dhivakar reported a loss of INR0.1 million on net sales of
INR123.9 million for 2009-10, against a profit after tax (PAT) of
INR2.3 million on net sales of INR101.6 million for 2008-09.
GINNI GOLD: ICRA Assigns 'LBB' Rating to INR30cr Fund-Based Limit
-----------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR30 crore1fund-based
limits of Ginni Gold Limited. The outlook on the rating is
stable. ICRA has also assigned an 'A4' rating to the INR5 crore
non-fund based limits of GGL
The ratings are constrained by highly competitive nature of the
gold jewellery industry characterized by many organized and
unorganized players resulting in low profitability margins; high
geographical and customer concentration risk; susceptibility of
profitability to adverse movement in gold prices; moderately high
financial risk profile characterized by low return indicators,
high gearing level and low coverage indicators; and tight
liquidity position as reflected in high utilization of working
capital limits. The ratings, however, favorably factor in the
established presence of GGL's promoters and the company in trading
and distribution of gold and gold jewellery and favorable demand
growth prospects in India. Significant increase in working
capital intensity resulting in deterioration of profitability and
debt coverage metrics would be a key rating sensitivity.
Ginni Gold Limited is a manufacturer, wholesaler and trader of
gold, diamonds and silver ornaments/jewellery. GGL has presence
largely in gold jewellery, which contributes more than 90% of
revenues. The company was incorporated in the year 2007. GGL is a
closely held company promoted by Mr. Pradeep Kumar Goel and his
family. The company procures gold under the Metal Loan Scheme
from Bank of Nova Scotia. GGL's customers primarily consist of
wholesalers and retailers based in New Delhi area.
During 2009-10, GGL reported net sales and profit after tax of
INR290.07 crore and INR0.51 crore respectively.
H S INDIA: CRISIL Cuts Rating on INR2.5MM Cash Credit to 'B+'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the long-term bank facilities
of H S India Ltd to 'B+/Stable' from 'BB-/Negative', while
reaffirming its rating on the company's short-term bank facility
at 'P4'.
Facilities Ratings
---------- -------
INR2.5 Million Cash Credit B+/Stable (Downgraded from
'BB-/Negative')
INR188.5 Million Long-Term Loan B+/Stable (Downgraded from
'BB-/Negative')
INR2.0 Million Bank Guarantee P4 (Reaffirmed)
The rating downgrade is mainly because of low cash accruals driven
by decline in average room occupancy and lower operating
margin as a result of increase in competition in Surat (Gujarat).
The downgrade also factors in CRISIL's belief that HSIL's
liquidity will remain weak over the near term because of lower
cash accruals, impacted by increase in competition.
The ratings reflect decline in HSIL's operating margin because of
increase in competition, and exposure to risks related to
geographical concentration in revenue profile and to cyclicality
in the hotel industry. These rating weaknesses are partially
offset by HSIL's strong track record in the hotel industry, and
moderate financial risk profile marked by moderate gearing and
debt protection metrics.
Outlook: Stable
CRISIL believes that HSIL's business risk profile will stabilize
over the medium term, supported by the addition of 26 new rooms to
its hotel in February 2011 and the company's established
relationship with its corporate clients. However, HSIL's
financial flexibility will continue to remain weak over the near
term because of low cash accruals. CRISIL also believes that the
promoters will support HSIL in servicing its debt on time. The
outlook may be revised to 'Negative' if lower-than-expected
occupancy rates or average room rents (ARRs) materially constrain
HSIL's cash accruals, or if HSIL's capital structure weakens, most
likely because of additional debt-funded capital expenditure.
Conversely, the outlook may be revised to 'Positive' if the
company's financial flexibility improves as a result of increase
in the occupancy and ARR, resulting in better-than-expected cash
accruals by maintaining the capital structure.
About H S India
Set up in 1989 by Mr. Pushpendra Bansal, HSIL (formerly, Hotel
Silver Plaza Pvt Ltd) runs a 136-room, three-star hotel, Lord's
Plaza, in Surat, in franchise agreement with Lords Inn and Hotels
Developers Ltd (promoted by Mr. Bansal and his associates). HSIL
has been listed on the Bombay Stock Exchange since 1993.
HSIL reported a book profit of INR23.2 million on net revenues of
INR145.9 million for 2009-10 (refers to financial year, April 1 to
March 31), against a book profit of INR6.8 million on net revenues
of INR119.0 million for 2008-09.
INDIRA SECURITIES: CRISIL Raises Rating on Bank Guarantee to 'P4+'
------------------------------------------------------------------
CRISIL has upgraded its rating on the bank guarantee facility of
Indira Securities Pvt Ltd (ISPL; part of the Indira group) to
'P4+' from 'P4.'
Facilities Ratings
---------- -------
INR130.0 Million Bank Guarantee P4+ (Upgraded from 'P4')
Facility
The rating upgrade reflects CRISIL's belief that the Indira
group's capitalization will remain adequate for its envisaged
growth over the medium term, supported by increase in internal
accruals and improved debtor levels. In addition, CRISIL expects
the group's operating efficiency to improve after the proposed
merger of the group entities, ISPL and Indira Share & Stock
Brokers Pvt Ltd.
The rating reflects the Indira group's modest market position,
average earnings profile marked by concentration in revenues-the
majority of the revenues come from broking business, and
susceptibility to uncertainties in equity broking business. The
operating environment for capital market entities has been
challenging in 2010-11 (refers to financial year April 1 to
March 31); the group's ability to maintain its market share and
profitability will continue to remain key rating sensitivity
factors. These rating weaknesses are partially offset by the
Indira group's adequate capitalization.
For arriving at its rating, CRISIL has combined business and
financial risk profiles of ISPL, ISSBPL and Indira Commodities Pvt
Ltd. This is because the entities, collectively referred to as
the Indira group, have significant operational, financial, and
management linkages with each other. Furthermore, as the group
intends to enter the institutional broking business over the
medium term, it has proposed to merge ISPL and ISSBPL in 2011-12
in order to strengthen its overall financial risk profile.
About the Group
The Indira group comprises ISPL, ISSBPL and ICPL. The group is in
the retail securities broking business through ISPL and ISSBPL,
and commodities broking business through ICPL. ISPL is a member
of National Stock Exchange (NSE) and ISSBPL is a member of
Bombay Stock Exchange. The group started its operations through
ISPL in 1994. ISPL was established as a partnership firm
and reconstituted as a private limited company in 2007-08. The
group's operations are concentrated in Madhya Pradesh. ISPL had
26,527 retail clients, 13 branches, and 154 sub-brokers as on
December 31, 2010.
The Indira group's net worth was INR188 million as on Dec. 31,
2010 (Rs.163 million as on March 31, 2010). The group
reported a profit after tax (PAT) of INR36 million on a total
income of INR196 million for 2009-10, against a PAT of INR6
million of a total income of INR115 million for 2008-09. For the
nine months ended December 31, 2010, the group reported a PAT of
INR31 million on a total income of INR139 million.
JAIVIGNESH SPINNER: CRISIL Assigns 'D' Ratings to Various Debts
---------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Jaivignesh Spinner (Covai) Ltd.
Facilities Ratings
---------- -------
INR35.30 Million Long-Term Loan D (Assigned)
INR26.30 Million Proposed LT Bank D (Assigned)
Loan Facility
INR13.00 Million Cash Credit D (Assigned)
INR2.00 Million Standby Line D (Assigned)
of Credit
INR13.10 Million Bank Guarantee P5 (Assigned)
The ratings reflect instances of delay by Jaivignesh in servicing
its debt; the delays have been caused by the company's weak
liquidity.
Jaivignesh is exposed to risks related to small scale of
operations, customer and supplier concentration in its revenue
profile, and volatility in viscose staple fibre prices. These
weaknesses are partially offset by Jaivignesh's moderate business
risk profile, marked by established customer relationships.
Incorporated in 2005, Jaivignesh has its manufacturing unit in
Annur (Tamil Nadu) with capacity of 7056 spindles. The company
was promoted by Mr. Velusamy and his brother Mr. Chinnusamy, who
were earlier into providing packaging solutions for textile mills
and ventured into the textile industry in 2005. Jaivignesh has
been manufacturing viscose spun yarn primarily in counts of 30's,
32's and 40's.
Jaivignesh reported a profit after tax (PAT) of INR4 million on
net sales of INR89 million for 2009-10 (refers to financial year,
April 1 to March 31), against net losses of INR7 million on net
sales of INR64 million for 2008-09.
JOHNSON AGRITECH: CRISIL Assigns 'B-' Rating to INR58.6MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'B-/Stable' ratings to the bank facilities
of Johnson Agritech & Farms Pvt. Ltd.
Facilities Ratings
---------- -------
INR21.60 Million Cash Credit B-/Stable (Assigned)
INR58.60 Million Term Loan B-/Stable (Assigned)
The ratings reflect JAF's exposure to risks related to
commercialization and stabilization of the ongoing project
together with inherent risks in the poultry industry and weak
financial risk profile marked by aggressive debt equity funding
pattern and small net worth. JAF's rating weakness is partially
offset by the benefits the company derives from the promoter's
industry experience.
Outlook: Stable
CRISIL believes that JAF will commence operations at its upcoming
project without any cost or time overruns, supported by
efficient project management. The outlook may be revised to
'Positive' if Johnson reports a larger-than-expected revenues and
profitability, leading to improvement in financial risk profile.
Conversely, the outlook may be revised to 'Negative' if JAF faces
any significant time or cost overruns in its project, or if it's
operating income and profitability is lower than expected, which
would adversely impact the company's financial risk profile.
Incorporated in 2009, JAF is setting up a feed mill and a breeding
cum layer farm for producing hatching and table eggs, at
Bankura (West Bengal). The total cost of the project is INR80
million, which is being funded in a debt-to-equity ratio of 3:1;
the company has spent INR30 million on the project till
Dec. 31, 2010. The project is expected to be completed by May
2011. The company is promoted by Sheikh Hasnabul Haque,
Mr. Jayanta Kumar Bose, and Mr. Milan Mitra.
KITCHEN GRACE: CRISIL Reaffirms 'B+' on INR80 Million Term Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kitchen Grace (India)
Pvt Ltd continue to reflect KGIPL's small scale of operations,
concentration in revenue profile, and exposure to intense
competition in the modular kitchen industry. The ratings also
factor in the deterioration in the company's financial risk
profile because of a large, debt-funded capital expenditure
(capex). These rating weaknesses are partially offset by the
benefits that KGIPL derives from its established brand name and
its promoters' experience in the modular kitchen business.
Facilities Ratings
---------- -------
INR17.50 Million Cash Credit B+/Stable (Reaffirmed)
INR80.00 Million Term Loan B+/Stable (Reaffirmed)
INR5.00 Million Letter of Credit P4 (Reaffirmed)
INR10.00 Million Bank Guarantee P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that KGIPL will benefit over the medium term from
its promoters' extensive industry experience and its established
brand name. The outlook may be revised to 'Positive' if KGIPL
significantly improves its scale of operations and net worth.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes an additional, large debt-funded capex
programme, or faces significant pressure on its revenues and
margins, leading to deterioration in its financial risk profile.
Update
Though KGIPL's operating performance during 2009-10 (refers to
financial year, April 1 to March 31), as well as during the
current financial year was lower than CRISIL's expectations, the
company's liquidity is supported by fund infusion from the
promoters in the form of equity and unsecured loans. In 2009-10,
KGIPL's operating income growth was subdued, with the company
recording an operating income growth rate of 9.5 per cent to
INR54.9 million. Lower operating income growth has been the
result of lower-than-expected increase in revenues from its group
entity, Sleek International's (SI's) marketing network. During
2009-10, KGIPL's operating margin declined to 8.5 per cent from
the earlier levels of more than 25 per cent margins. Decline in
the operating margin has been the result of change in revenue mix
of the company, with larger revenue contribution from lower-margin
projects segment and also because of increase in competition
levels in the industry. However, KGIPL's liquidity is supported
by fund infusion by promoters during 2009-10 as well as during the
current financial year. Furthermore, the company's cash accruals
are expected to improve during 2011-12 after it commenced
commercial production at its PU painted shutters unit during
November 2010.
About Kitchen Grace
Set up in 1988 by Mr. Snehal Vasani, KGIPL (formerly, Inner space,
a proprietorship concern) manufactures fully fitted modular
kitchens under the Kitchen Grace brand name. The company also
markets kitchen accessories. KGIPL operates in two segments -
retail, and projects in residential apartments. It has its sole
manufacturing facility in Pune (Maharashtra), and dealers in
Mumbai (Maharashtra), Pune, Kolkata (West Bengal), and
Visakhapatnam (Andhra Pradesh). Currently, the Ahuja family,
partners of SI, hold 61 per cent stake in the company, while the
remaining 39 per cent is held by Mr. Snehal Vasani.
KGIPL reported a profit after tax (PAT) of INR6.78 million on net
sales of INR52.90 million for 2009-10, against a PAT of INR7.55
million on net sales of INR48.93 million for 2008-09.
LOK-BETA PHARMACEUTICALS: CRISIL Reaffirms 'B+' Cash Credit Rating
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Lok-Beta
Pharmaceuticals (India) Pvt Ltd continue to reflect Lok-Beta's
large working capital requirements and moderate financial risk
profile, marked by low net worth and moderate debt protection
measures. These rating weaknesses are mitigated by the benefits
Lok-Beta derives from its established relationship with UK based
marketing partner Eurostate Corporation Ltd.
Facilities Ratings
---------- -------
INR3.1 Million Rupee Term Loan B+/Stable (Reaffirmed)
INR10 Million Cash Credit B+/Stable (Reaffirmed)
INR2.5 Million Bank Guarantee P4 (Reaffirmed)
INR47.5 Million Packing Credit P4 (Reaffirmed)
INR30 Million Letter of Credit P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that Lok-Beta will sustain its credit risk
profile, backed by its established relationship with Eurostate.
The outlook may be revised to 'Positive' if substantial equity is
infused into Lok-Beta or in case of improvement in working capital
management. Conversely, the outlook may be revised to 'Negative'
if Lok-Beta's debt protection metrics deteriorate further, due
to a decline in operating profitability and/or revenues, or if it
undertakes a large, debt-funded capital expenditure (capex)
programme.
Update
Lok-Beta is expected to record steady revenue growth in 2010-11
(refers to financial year, April 1 to March 31); the company
recorded net sales of INR564.3 million in nine months ended
December 31, 2010 against net sales of INR450.9 million for the
year ended March 31, 2010 (refers to financial year, April 1 to
March 31).
Lok-Beta's business risk profile continues to be marked by large
revenues from exports to Russia and Ukraine, because of the
stable relationship with its customers, suppliers and business
partner in these countries. The company, in the current year,
started exporting to countries such as Thailand, Philippines,
Nigeria, and Kenya; although its revenues from, and market
position in, these countries is limited. The company's rigorous
marketing efforts have, however, helped the company improve its
revenue profile. However, the operating profitability in the
current year is expected to decline marginally because of increase
in raw material cost as well as in job work charges.
Lok-Beta's liquidity will remain stretched over the medium term
due to its continuing high working capital requirements on
account of longer receivables collection cycle.
Construction of the company's proposed INR200-million anti-cancer
facility in Goa is expected to begin in 2011-12 and is likely to
be completed in 18 months. CRISIL believes that the funding of the
proposed capex plan will be the key rating sensitivity factor
over the medium term.
Lok-Beta reported a profit after tax (PAT) of INR18.2 million on
net sales of INR450.9 million for 2009-10, as against a PAT of
Rs.5.2 million on net sales of INR242 million for 2008-09.
About Lok-Beta Pharmaceuticals
Lok-Beta was set up in 2002 by Mr. Alok Kumar, in collaboration
with Eurostate. Lok-Beta exports injection vials and generic
drugs to Russia and Ukraine. While 70 per cent of its goods are
imported from China and Korea, the remainder is procured from the
domestic market, primarily from group entities.
MANSI INDUSTRIES: CRISIL Raises Rating on Term Loan to 'BB-'
------------------------------------------------------------
CRISIL has upgraded its ratings on the bank loan facilities of
Mansi Industries Pvt Ltd (Mansi) to 'BB-/Stable' from 'B+/Stable'.
Facilities Ratings
---------- -------
INR70.0 Million Cash Credit Limit BB-/Stable (Upgraded from
'B+/Stable')
INR280.0 Million Term Loan BB-/Stable (Upgraded from
'B+/Stable')
The ratings upgrade reflects the improvement in Mansi's capital
structure because of equity infusion of INR57 million by the
promoters in 2009-10 (refers to financial year, April 1 to
March 31). Mansi's gearing improved to 2.38 times as on March 31,
2010, as against 4.66 times as on March 31, 2011.
The company stabilized operations at its grey fabric manufacturing
unit, which recorded a sales growth of 115 per cent. Its
operating margin also improved to 14.9 per cent in 2009-10 from
13.8 per cent in 2008-09, because of efficiencies of scale.
Mansi's debt protection metrics also improved in 2009-10, with
comfortable net cash accruals to total debt ratio of 0.14 times,
and a moderately weak interest coverage ratio of 2.03 times.
The ratings reflect Mansi's weak financial risk profile, marked by
small net worth and high gearing, small scale of operations, and
limited track record in the textile industry. These rating
weaknesses are partially offset by Mansi's comfortable operating
profitability and competent management.
Outlook: Stable
CRISIL believes that Mansi will maintain its credit risk profile
over the medium term backed by comfortable operating profitability
of the company and modest sales growth. The outlook may be
revised to 'Positive' if the company reports higher-than-expected
growth in sales and profitability and improvement in capital
structure. Conversely, the outlook may be revised to 'Negative'
if Mansi's operating profitability declines considerably, or the
company undertakes a large, debt-funded capital expenditure
programme.
About Mansi Industries
Set up as a partnership firm in 2007, and reconstituted as a
private limited company in 2008, Mansi manufactures grey and dyed
fabrics. The company also manufactures yarn beam, primarily for
its own consumption, and undertakes embroidery processes at its
facility in Surat (Gujarat). The company mostly sells polyester
grey cloth and single colour-dyed cloth to various traders and
wholesalers in Surat.
Mansi has more than 700 power looms and over 100 water jet
machines for manufacturing grey fabrics; it outsources its dyeing
activity. The company recently installed two embroidery machines
and has started undertaking embroidery job-work orders. Mansi
derives its revenue mostly from the domestic market, besides some
indirect exports to Korea and the UAE.
Mansi reported a profit after tax (PAT) of INR1.4 million on net
sales of INR493 million for 2009-10, as against a net loss of INR8
million on net sales of INR237 million for 2008-09.
PCH MARKETING: CRISIL Assigns 'BB' Rating to INR1.08MM Cash Credit
------------------------------------------------------------------
CRISIL has reaffirmed its 'BB/Stable/P4+' ratings on the bank
facilities of PCH Marketing Pvt Ltd.
Facilities Ratings
---------- -------
INR1080.0 Million Cash Credit BB/Stable
(Enhanced from INR800.0 Million)
INR50.0 Million Standby Line of Credit P4+ (Assigned)
INR100.0 Million Letter of Credit P4+ (Assigned)
INR100.0 Million Bank Guarantee P4+ (Reaffirmed)
The ratings continue to reflect PCH's large working capital
requirements, leading to a below-average financial risk profile,
marked by high gearing and low profitability, and product
concentration in its revenue profile. These weaknesses are
partially offset by the extensive experience of PCH's promoter in
the cellular phone distribution business, and its established
relationship with Samsung India Electronics Pvt Ltd.
Outlook: Stable
CRISIL believes that PCHMPL will sustain its operating margin and
revenue growth over the medium term, supported by its
promoters' extensive industry experience and sound track record.
While its capital structure has improved, on account of further
equity infusion in 2010-11 (refers to financial year, April 1 to
March 31), the financial risk profile remain constrained because
of its large working capital requirements. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves significantly, backed by more-than-expected cash accruals
or equity infusions. Conversely, the outlook may be revised to
'Negative' if PCHMPL's cash accruals deteriorate, its liquidity
weakens, or if the company contracts large debt to fund its
capital expenditure programme.
About PCH Marketing
PCHMPL, incorporated in 1987, was in the business of distributing
various white goods, sunglasses, watches, and consumer
products till 2000, when the company began distributing Nokia
cellular phones in South India. The company was the largest Nokia
distributor in India; it achieved sales of 0.3 million units per
month in 2008. However, in July 2008, on realizing the market
potential of Samsung phones, the company ceased to be a Nokia
distributor and began distributing Samsung phones in Andhra
Pradesh and Tamil Nadu. The company, promoted by Mr. Sutinder
Singh, is currently the sole distributor of Samsung phones in
South India.
PCHMPL reported a profit after tax (PAT) of INR46.4 million on net
sales of INR5.8 billion for 2009-10, against a PAT of INR18.6
million on net sales of INR4.9 billion for 2008-09.
PRACHIN FOUNDATION: CRISIL Rates INR100 Million LT Loan at 'B-'
---------------------------------------------------------------
CRISIL has assigned its 'B-/Stable' rating to the long-term loan
facility of Prachin Foundation.
Facilities Ratings
---------- -------
INR100.00 Million Long-Term Loan B-/Stable (Assigned)
The rating reflects Prachin's below-average financial risk profile
marked by high gearing and weak debt protection metrics; this is
because the society's operations are in the start-up phase. The
rating also factors in Prachin's geographically concentrated
revenue profile and exposure to intense competition in the
education sector. These rating weaknesses are partially offset by
Prachin's modern infrastructure facilities catering to its nice
clientele, the financial support it gets from its promoters, and
the benefits its derives from its franchisor, Global Indian
Foundation Ltd, Singapore.
Outlook: Stable
CRISIL believes that Prachin will continue to benefit from
promoters' fund support and the expected growth in student
enrolments over the medium term. The outlook may be revised to
'Positive' if Prachin witnesses a sustained growth in student
enrolments, leading to a substantial increase in its cash accruals
and improvement in its capital structure. Conversely, the outlook
may be revised to 'Negative' if Prachin's cash accruals are
subdued because of lower-than-expected student intake, if the
society undertakes a larger-than-expected debt-funded capital
expenditure programme, or faces delays in receiving approval from
the Central Board for Secondary Education.
Prachin was established in June 2009 under the Registrar of
Societies Act by Mr. G Satyanarayana. The society has a
franchisee agreement with Global Indian Foundation Ltd, Singapore,
to run Global Indian International School, with classes from pre-
school to high school. The school has a 13.5-acre campus in
Kondakal Village, around 22 kilometres from Hyderabad (Andhra
Pradesh). The school opened for admissions in June 2010, and had
76 students, from nursery to the seventh standard, as on
Dec. 31, 2010. The school has a student capacity of 800. The
daily operations are managed by Mr. A Venkateswara Rao.
SHRI RAM: CRISIL Reaffirms 'BB' Rating to INR30MM Term Loan
-----------------------------------------------------------
CRISIL rating on the bank facilities of Shri Ram Impex (India) Pvt
Ltd continue to reflect SRIPL's low financial flexibility marked
by a small net worth and a high gearing, and vulnerability of its
profitability to fluctuations in foreign exchange rates. These
rating weaknesses are partially offset by the industry experience
of the company's promoters.
Facilities Ratings
---------- -------
INR220 Million Cash Credit Facility* BB/Stable (Reaffirmed)
INR30 Million Term Loan BB/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SRIPL will maintain its business risk profile
over the medium term on the back of its focus on improving its
trading volumes, and its established client relationships. The
outlook may be revised to 'Positive' if SRIPL scales up its
operations by diversifying its client mix, improves its capital
structure driven by fresh equity infusion by promoters, or reports
increase in cash accruals because of more-than-expected growth in
operating income. Conversely, the outlook may be revised to
'Negative' in case of deterioration in the company's profitability
or capital structure.
About Shri Ram
SRIPL was incorporated in 2000 by Mr. Vineet Bhatia; the company
acquired the business of a firm, Shri Ram Enterprises, set up in
1984 by Mr. Vineet Bhatia's father, Mr. Prem Bhatia. Shri Ram
Enterprises was engaged in the import and trading of tin plate,
hot-rolled, cold-rolled, and galvanised steel. After the
acquisition, SRIPL started importing defective tin plates, tin
free sheets, tin sheet cuttings, and selling them in India.
For 2009-10 (refers to financial year, April 1 to March 31), SRIPL
reported a profit after tax (PAT) of INR6 million on net revenues
of INR807 million, against a PAT of INR6 million on net revenues
of INR704 million for 2008-09.
SHRI SUDERSHAN: ICRA Reaffirms 'LB+' Rating on INR6.1cr Bank Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of 'LB+' outstanding for
INR6.1 crore fund based facilities of Shri Sudershan Tubes.
The rating reaffirmation factors in SST's high gearing, which
coupled with its high working capital intensity has resulted in
a stretched liquidity position and average debt protection
metrics. The rating is also constrained by the firm's moderate
scale of operations and low profitability, given the high
competitive intensity of the industry and trading nature of
operations. ICRA however draws comfort from the experience of the
promoters in the industry and SST's locational advantage; which
ensures easy accessibility to iron and steel products.
Shri Sudershan Tubes is a partnership firm engaged in trading of
steel products. SST was originally a proprietorship firm which
commenced operations in 2002. Subsequently it was converted into a
partnership firm in 2007 with Mr. Om Prakash Gupta and his son
Mr. Suresh Kumar Gupta as the partners with equal capital
contribution. The warehousing facility of the trading firm is
located in Sahibabad (Uttar Pradesh).
Recent Results
For FY2010, the company has reported an operating income of
INR37.4 crore and a net profit of INR0.41 crore.
SIMHAPURI ENERGY: ICRA Assigns 'LBB+' to INR1204cr Term Loan
------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR1204.4 crore term
loan programme of Simhapuri Energy Private Limited. The outlook
on the rating is stable. ICRA has also reaffirmed the LBB+ rating
assigned to the INR1002.4 crore term loan programme of Simhapuri
Energy.
The LBB+ rating factors in the advanced stage of implementation of
Phase 1 (270 MW) of Simhapuri Energy's imported coal based power
plant at Nellore in Andhra Pradesh, the strengths arising from
being part of the Madhucon Group of companies which also has
interests in coal mining in Indonesia, the long-term offtake
arrangements in place with PTC India Limited for a major portion
of the capacity in Phase 1 and the arrangements in place for
supply of coal and power evacuation. The rating is however
constrained by the execution risks arising out of the early stage
of implementation of Phase 2 (300 MW) of the plant, the running
delays of a few months in the execution of Phase 1 with associated
cost implications, and the continued exposure to technology risks
given the use of imported boiler, turbine and generator (BTG)
equipment from vendors having a limited track record in Indian
conditions till date. While ICRA notes that substantial progress
has been made in the implementation of Phase 1 of 270 MW,
successful commissioning of the plant without further delays would
be a key rating driver particularly given the limited track record
of Madhucon Group in the implementation of power projects. The
rating is also constrained by funding risks given the substantial
additional equity infusion required (approx INR13 crore for
Phase 1 and INR200 crore for Phase 2). As per the tolling
arrangement in place with PTC for Phase 1 (200 MW of 270 MW of
installed capacity), PTC is required to supply coal at its cost to
Simhapuri Energy and offtake power at a fixed conversion margin;
the stability of this arrangement over the long term would depend
upon PTC's ability to tie up coal supplies at competitive rates.
The balance 70 MW of Phase 1 is expected to be sold on merchant
basis with consequent exposure to offtake and pricing risks.
Offtake arrangements for Phase 2 are currently at initial stages
with an MoU in place with PTC for offtake of 150 MW on a similar
tolling arrangement as for Phase 1 and the balance is expected to
be contracted partially through the case 1 bidding route.
Progress in tying up firm offtake arrangements at competitive
rates would be critical from the credit perspective. For the
merchant/case 1 bidding component, Simhapuri Energy proposes to
procure coal from mines owned by the Madhucon Group in Indonesia;
given the limited past experience of the Group in coal mining,
however, stabilization of coal production would be critical.
About Simhapuri Energy
Simhapuri Energy, promoted by the Hyderabad based Madhucon Group,
is setting up a coastal coal based thermal power plant with an
ultimate capacity of 1920 MW, to be developed in four phases near
Krishnapatnam, in Nellore District, Andhra Pradesh. The Madhucon
Group largely undertakes EPC works across various sectors with
Madhucon Projects Limited (rated at LA+/A1 by ICRA) as its
flagship; the Group also has several investments in BOT projects.
Simhapuri Energy is currently in advanced stages of implementing
Phase 1 of the project (270 MW) at a total cost of INR1336.5 crore
while Phase 2 (300 MW at a total cost of INR1605.88 crore) is
currently in initial stages. The scheduled date of commissioning
of Phase 1 was February 2011; there is currently a running delay
of 5-6 months with the expected date of commissioning at
July/August 2011. Phase 2 is scheduled to be commissioned by
October 2012 and is currently progressing within schedule. The
total project cost of INR1336.5 crore for Phase 1 is being funded
through debt of INR1002.4 crore and equity of INR334.1 crore while
Phase 2 of INR1605.88 crore is being funded by debt of INR1204.41
crore and equity of INR401.47 crore. As on date, approx INR521
crore of equity has been infused for Phases 1 and 2.
SURAJ CONSTRUCTIONS: Fitch Shifts Rating to 'Non-Monitored' Status
------------------------------------------------------------------
Fitch Ratings has migrated the 'D(ind)' National Long-Term ratings
on India's Suraj Constructions and its INR136.2m secured cash
credit limit to the "Non-Monitored" category. The ratings will
now appear as 'D(ind)nm'.
The ratings have been migrated to the "Non-Monitored" category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage of Suraj. The ratings will remain
in the "Non-Monitored" category for a period of six months and be
withdrawn at the end of that period. However, in the event the
issuer starts furnishing information during this six-month period,
the ratings could be reinstated and will be communicated through a
"Rating Action Commentary".
ZENITH FORGE: ICRA Assigns 'LBB' Rating to INR3.99cr Term Loan
--------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR3.99 crore term loan
and INR6 crore1cash credit facility of Zenith Forge Limited. The
outlook on the long term rating is Stable. ICRA has also assigned
an 'A4' rating to the INR4 crore non fund based facility and
INR0.10 crore forward contract limit of ZFL
The ratings take into account the favorable outlook for the medium
and heavy commercial vehicle industry in India which uses ZFL's
forgings, experience of the promoters in the current line of
business and the company's established relationship with its
client - Tata Motors Limited and its subsidiaries - HV Axles Ltd
(HVAL) and HV Transmissions Ltd., resulting in repeat orders and a
low counter party risk although client and sector concentration
risks remain high. ICRA notes that ZFL's financial profile is
characterised by moderate profitability and coverage indicators.
The ratings however take into consideration ZFL's exposure to the
inherent cyclicality of the steel and commercial vehicle
industries and a high working capital intensity of operations
which adversely impacts liquidity. The rating also factors in
ZFL's small scale of operations as compared to both its suppliers
and buyers, thereby limiting its bargaining power.
About Zenith Forge
ZFL has been promoted by the Sood family and is engaged in
manufacturing and machining of various forgings. The plants are
based in Jamshedpur, Jharkhand and ZFL executes orders primarily
for Tata Motors Limited. ZFL has an installed capacity of 4500
tonnes for manufacturing of forgings and recorded a production of
2894 tonnes during FY10.
Recent Results
The company reported a net profit of INR0.92 crore in FY10 on an
OI of INR25.5 crore, as compared to a net profit of INR0.38 crore
on an OI of INR23.0 crore during FY09. ZFL reports deferred tax as
an appropriation of profits in its annual accounts. ICRA has
adjusted the amount of deferred tax to arrive at the company's net
profit.
=================
I N D O N E S I A
=================
XL AXIATA: Fitch Upgrades Issuer Default Rating to 'BB+'
--------------------------------------------------------
Fitch Ratings has upgraded Indonesia-based telecom operator XL
Axiata's Long-Term Foreign and Local Currency Issuer Default
Ratings to 'BB+' from 'BB'. The Outlook is Positive.
The upgrade reflects XL's significantly improved financial
performance in 2010, with revenues and EBITDAR growing 27% and 50%
respectively. EBITDAR margins improved to 52.9% in 2010 from 45%
in 2009 due to higher revenues, lower network costs and the
company's focus on cost efficiencies. For 2010, Fitch estimates
XL's market share by subscriber and revenue would have improved to
levels to rival the second-largest telecom operator, PT Indosat
Tbk ('BBB-'/Stable). XL's GSM revenue market share improved to
20% in 2010 from 18.5% in 2009.
Fitch notes XL's strategic importance to its Malaysian parent,
Axiata Group Berhad (which has a 66.7% beneficial ownership of
XL). This is reflected in one-notch uplift to XL's 'BB'
standalone rating, in line with the agency's Parent and Subsidiary
Rating Linkage Methodology. XL accounted for 40% and 47% of AGB's
revenue and EBITDA, respectively, in 2010. It is now the highest
contributor to AGB's overall EBITDA; surpassing the group's
Malaysian subsidiary Celcom's 42% share.
The ratings are constrained by Fitch's expectations that
competition within the sector would likely intensify, particularly
from Indosat which, following management changes in 2010, is
likely to step up its product offering. Fitch also expects
further competition from the potential merger of PT Telekomunikasi
Indonesia Tbk's ('BB+'/Stable) CDMA "Flexi" business and PT Bakrie
Telecom Tbk ('B'/Stable), which would create the fourth largest
telecom operator after XL with a subscriber market share of 12.5%.
In particular, the possible new entity could pose a challenge to
XL with its competitive pricing of CDMA relative to GSM.
Fitch notes XL's new dividend policy to distribute a minimum 30%
of its previous year (normalized) net income. Although the agency
is comfortable with the company's strong post-distribution free
cash flows, aggressive dividend payouts in 2011and 2012 could put
pressure on its credit metrics.
The Positive Outlook reflects Fitch's expectations that XL would
maintain its funds from operations-adjusted net leverage below 1x,
strong cash flow generation with moderate capex investments, and
EBITDA margins.
Higher-than-expected debt-funded capex and/or dividend payout, or
a significant deterioration in the operating environment leading
to FFO-adjusted net leverage above 2x on a sustained basis would
lead to XL's Outlook being revised to Stable. The ratings may
also come under pressure if AGB reduces its majority stake in XL.
Conversely, positive rating triggers include net leverage being
sustained below 1x, a pre-dividend FCF of around 15% of revenues
and higher cellular revenues than Indosat.
-- Long-Term Foreign and Local Currency IDRs upgraded to 'BB+'
from 'BB'; Outlook Positive;
-- National Long-Term rating upgraded to 'AA(idn)' from 'AA-
(idn)'; Outlook Positive;
-- Senior unsecured rating on IDR1.5trn upgraded to 'AA(idn)'
from 'AA-(idn)'; and
-- Senior unsecured 'BB' rating on US$250m notes withdrawn
following repayment.
=========
J A P A N
=========
INCUBATOR BANK: Aeon Bank Mulls Incubator's Sponsorship
-------------------------------------------------------
Kyodo News reports that Aeon Bank, the banking arm of retail giant
Aeon Co., is contemplating bidding for sponsorship of Incubator
Bank of Japan.
Kyodo relates that sources familiar with the matter said
Aeon Bank wishes to turn its money-losing operations around by
incorporating Incubator Bank's advanced know-how for loans to
small and medium-size companies.
As the Financial Services Agency and the state-backed Deposit
Insurance Corp. of Japan are eager to pick a sponsor for Incubator
Bank from stable financial institutions with banking licenses,
Aeon Bank is expected to be a leading candidate to support the
bankrupt bank's rehabilitation if it decides to bid, Kyodo says.
Incubator Bank is currently undergoing Civil Rehabilitation Law
proceedings, and DIC, which is acting as the bank's government-
appointed administrator, will likely begin a selection of sponsors
later this month. After moving deposits and claims on healthy
loans from the bank to a bridge bank on April 25, DIC will step up
the selection process to pick a sponsor this summer at the
earliest.
Some Japanese and overseas investment funds as well as Shinsei
Bank have shown interest in bidding.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 13, 2010, the Incubator Bank of Japan Ltd. filed for
bankruptcy proceedings with the Financial Services Agency under
the Deposit Insurance Law. The FSA is expected to invoke the
deposit protection scheme for the first time since it was
instituted in 1971. The protection covers up to JPY10 million
in deposits and interest. The bank had about JPY592.7 billion in
deposits as of March 31, 2010, of which JPY68.6 billion had been
deposited in excess of the JPY10 million threshold by some 4,800
depositors.
Incubator Bank of Japan Ltd. is a Tokyo-based small business
lender.
=========
K O R E A
=========
HYUNDAI ENGINEERING: Hyundai Motor Inks Final Deal with Creditors
-----------------------------------------------------------------
Hyundai Motor Group signed a final deal on Tuesday with creditors
of Hyundai Engineering & Construction Co. to take over a major
stake in the biggest local builder.
The signing came after lead creditor Korea Exchange Bank selected
Hyundai Motor Group in January as the preferred bidder for the
majority stake for which the auto group offered to pay
KRW4.96 trillion (US$4.4 billion), Yonhap discloses.
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 these 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.
Hyundai Engineering 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.
SSANGYONG MOTOR: Emerges from Bankruptcy Protection
---------------------------------------------------
Yonhap News reports that Ssangyong Motor Co. said it emerged from
bankruptcy protection Wednesday following the sale of its stake to
Indian utility vehicle maker Mahindra & Mahindra Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the
Seoul Central District Court to stave off a complete collapse. In
February, the Seoul Central District Court accepted Ssangyong's
application to rehabilitate under court protection. The court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker.
Mahindra & Mahindra Ltd. in November 2010 agreed to acquire a
controlling stake in Ssangyong Motor Co. for KRW522.5 billion.
Mahindra will acquire a 70% stake in Ssangyong Motor by issuing
new shares worth KRW427.1 billion and it will also purchase
95.4 billion of Ssangyong's existing corporate bonds.
About Ssangyong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs). The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius. It also
provides automobile parts such as coolers, diesel engines and
others.
* * *
This concludes the Troubled Company Reporter-Asia Pacific's
coverage of Ssangyong Motor Co. until facts and circumstances, if
any, emerge that demonstrate financial or operational strain or
difficulty at a level sufficient to warrant renewed coverage.
====================
N E W Z E A L A N D
====================
CENTURY CITY: Liquidation Hearing Adjourned Until April 18
----------------------------------------------------------
The New Zealand Press Association reports that Wellington property
and football tycoon Terry Serepisos has been granted another
adjournment as he battles to save several of his companies from
liquidation.
NZPA says the Inland Revenue Department on March 10 sought an
order to liquidate five of Mr. Serepisos' Century City companies,
which owe more than NZ$3.5 million in tax and penalties, in the
High Court at Wellington.
According to NZPA, Associate Judge David Gendall adjourned the
hearing until April 18, saying the matter would be disposed of on
that date.
The court was told the vendor had confirmed an agreement to pay
the debt in full, and lawyers for the IRD and the Accident
Compensation Corporation agreed to the adjournment.
IRD lawyer Rocky Meng said there had been some progress, which had
increased confidence the outstanding amount would be paid.
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 14, 2010, the National Business Review said that the IRD
applied to liquidate five of Mr. Serepisos' companies in October
2010 over NZ$3.58 million debt.
The Serepisos companies under threat are Century City Hunter
Street, Century City Investments, Century City Developments,
Century City Management and Century City Football, which owns the
Wellington Phoenix. The ACC has also filed for liquidation of
Century City Football, which owes it NZ$335,054, and Century City
Developments, owing NZ$95,616.
PIKE RIVER: Receivers Take Control of Pike River Coal Mine
----------------------------------------------------------
The New Zealand Press Association reports that Pike River Coal
mine receivers have finally taken control of the mine, where 29
men were killed in an explosion on November 19. NZPA says the
move, signalled in January after police announced they were ending
their recovery operation, came into effect Wednesday.
According to NZPA, some families have expressed concern about
whether the receivers, PricewaterhouseCoopers, will be able to
fund the recovery operation. However, receiver John Fisk
Wednesday said funds had been set aside for a mine stabilization
plan prepared by company management and expert advisors.
NZPA says the receivers hoped the operation would create a
sustainable inert mine atmosphere with no underground heat
sources.
"However, there can be no assurance that the stabilisation plan
will be successful or, even if it is, whether other options such
as an eventual re-entry to all or part of the mine will be
feasible," NZPA quotes Mr. Fist as saying.
Stabilization was the first, crucial step before the company could
consider the mine's future, NZPA notes.
"The mine is the principal asset of the company, and the prospects
for the company are inextricably linked to the prospects for the
mine," Mr. Fisk said, according to NZPA.
If re-entry became an option, the company would keep the families
informed and bring in police to preserve any evidence, Mr. Fisk
added.
Pike River Coal Ltd was placed into receivership in December 2010.
New Zealand Oil & Gas, the company's largest shareholder,
appointed accountants PricewaterhouseCoopers as receivers. The
company owed NZ$80 million to secured creditors BNZ and NZ Oil &
Gas. Pike River also owed another estimated NZ$10 million to
NZ$15 million to contractors, including some of the men who lost
their lives in the disaster.
The TCR-AP, citing a TVNZ report, said PricewaterhouseCoopers'
strategy now is to stabilize the mine with a view to either
restructuring the company or selling the assets while at the same
time maintaining a core team of workers to maintain the mine site
and pursuing insurance claims. The receivers have had
"unsolicited expressions of interest" in Pikes assets, though they
are still considering options for the mine. Under the terms of a
Deed of Priority, BNZ and NZOG rank equally and have priority over
Solid Energy among secured creditors, TVNZ added.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
PIKE RIVER: Receivers Get "Unsolicited Approaches" from Buyers
--------------------------------------------------------------
Newstalk ZB reports that Pike River Coal Mine receivers said they
have already received interest from prospective buyers of the
mine.
Newstalk ZB relates that receiver John Fisk said he has had a
number of parties interested.
"They were unsolicited approaches. We actually haven't gone out
and formally asked for expressions of interests but that would be
our next step," Mr. Fisk told Newstalk ZB.
According to Newstalk ZA, Mr. Fisk said selling the mine means he
can offer more certainty to potential investors.
"One of the next steps for us will be to look at a plan to call
for expressions of interest from parties that may wish to invest
in or purchase the asset," Newstalk ZB quotes Mr. Fisk as saying.
Mr. Fisk, as cited by Newstalk ZB, said there was NZ$6 billion
worth of coal in the mine, so it was a valuable asset.
Pike River Coal Ltd was placed into receivership in December 2010.
New Zealand Oil & Gas, the company's largest shareholder,
appointed accountants PricewaterhouseCoopers as receivers. The
company owed NZ$80 million to secured creditors BNZ and NZ Oil &
Gas. Pike River also owed another estimated NZ$10 million to
NZ$15 million to contractors, including some of the men who lost
their lives in the disaster.
The TCR-AP, citing a TVNZ report, said PricewaterhouseCoopers'
strategy now is to stabilize the mine with a view to either
restructuring the company or selling the assets while at the same
time maintaining a core team of workers to maintain the mine site
and pursuing insurance claims. The receivers have had
"unsolicited expressions of interest" in Pikes assets, though they
are still considering options for the mine. Under the terms of a
Deed of Priority, BNZ and NZOG rank equally and have priority over
Solid Energy among secured creditors, TVNZ added.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADVANCE HEAL-NEW AHGN -16.93 8.23
ASTON RESOURCES AZT -469.54 7.49
AUSTAR UNITED AUN -502.05 284.60
AUSTRALIAN ZI-PP AZCCA -77.74 2.57
AUSTRALIAN ZIRC AZC -77.74 2.57
AUTRON CORP LTD AAT -32.39 13.42
AUTRON CORP LTD AAT -32.39 13.42
BCD RESOURCES OP BCO -23.39 60.19
BCD RESOURCES-PP BCOCC -23.39 60.19
BIRON APPAREL LT BIC -19.71 2.22
CENTRO PROPERTIE CNP -14,253.26 825.84
CHALLENGER INF-A CIF -2,161.41 339.11
CHEMEQ LTD CMQ -25.19 24.25
COMPASS HOTEL GR CXH -88.33 1.08
ELLECT HOLDINGS EHG -18.25 15.49
HEALTH CORP LTD HEA -11.97 2.66
HYRO LTD HYO -11.81 5.15
IVANHOE AUST LTD IVA -49.44 6.51
MAC COMM INFR-CD MCGCD -8,104.42 103.34
MAVERICK DRILLIN MAD -24.66 1.30
MISSION NEWENER MBT -32.23 21.48
NATURAL FUEL LTD NFL -19.38 121.51
NEXTDC LTD NXT -17.46 0.14
ORION GOLD NL ORN -11.06 4.86
RESIDUAL ASSC-EE RAGXF -597.33 126.96
RIVERCITY MOTORW RCY -386.88 809.14
SCIGEN LTD-CUFS SIE -69.94 29.79
SHELL VILLAGES A SVC -13.47 1.66
TAKORADI LTD TKG -13.99 0.41
VERTICON GROUP VGP -10.08 29.12
YANGHAO INTERNAT YHL -44.32 54.68
CHINA
BAOCHENG INVESTM 600892 -23.14 3.54
CHENGDE DALU -B 200160 -27.04 6.64
CHENGDU UNION-A 693 -39.10 17.39
CHINA KEJIAN-A 35 -88.96 189.48
CONTEL CORP LTD CTEL -24.17 45.31
DATONG CEMENT-A 673 -20.41 3.25
DONGGUAN FANGD-A 600656 -27.97 57.39
DONGXIN ELECTR-A 600691 -13.60 21.94
FANGDA JINHUA-A 818 -389.84 46.28
GAOXIN ZHANGTO-A 2075 -153.10 6.31
GUANGDONG ORIE-A 600988 -12.25 5.34
GUANGMING GRP -A 587 -49.10 40.40
GUANGXIA YINCH-A 557 -30.39 32.88
HEBEI BAOSHUO -A 600155 -127.82 394.70
HEBEI JINNIU C-A 600722 -238.23 243.80
HUASU HOLDINGS-A 509 -86.70 4.20
HUNAN ANPLAS CO 156 -38.70 65.44
JIANGSU CHINES-A 805 -12.70 12.83
JINCHENG PAPER-A 820 -258.98 37.74
QINGHAI SUNSHI-A 600381 -110.68 17.35
SHAANXI QINLIN-A 600217 -234.36 36.75
SHANG BROAD-A 600608 -69.46 17.67
SHANG HONGSHENG 600817 -15.69 443.71
SHANGHAI WORLDBE 600757 -143.11 291.80
SHENZ CHINA BI-A 17 -24.86 272.59
SHENZ CHINA BI-B 200017 -24.86 272.59
SHENZHEN DAWNC-A 863 -24.38 155.20
SHENZHEN KONDA-A 48 -117.23 0.23
SHENZHEN ZERO-A 7 -44.00 7.96
SHIJIAZHUANG D-A 958 -224.19 70.54
SICHUAN DIRECT-A 757 -108.57 146.61
SICHUAN GOLDEN 600678 -209.77 74.90
TAIYUAN TIANLO-A 600234 -52.96 26.72
TIANJIN MARINE 600751 -78.09 63.86
TIANJIN MARINE-B 900938 -78.09 63.86
TIBET SUMMIT I-A 600338 -91.86 3.73
TOPSUN SCIENCE-A 600771 -162.47 163.30
WINOWNER GROUP C 600681 -11.30 70.39
WUHAN BOILER-B 200770 -275.89 142.53
WUHAN GUOYAO-A 600421 -11.01 24.78
XIAMEN OVERSEA-A 600870 -319.68 138.16
XINHUA FINANCE 9399 -35.80 1.17
YANBIAN SHIXIA-A 600462 -197.99 16.19
YUEYANG HENGLI-A 622 -36.49 16.37
YUNNAN MALONG-A 600792 -145.58 51.15
ZHANGJIAJIE TO-A 430 -38.71 1.45
HONG KONG
ASIA TELEMEDIA L 376 -16.62 5.37
BUILDMORE INTL 108 -13.48 69.17
CHINA COMMUNICAT 8206 -36.62 6.93
CHINA HEALTHCARE 673 -44.13 4.49
CHINA PACKAGING 572 -17.10 17.49
CMMB VISION HOLD 471 -41.31 5.11
COSMO INTL 1000 120 -83.56 37.93
DORE HOLDINGS LT 628 -25.44 5.34
EGANAGOLDPFEIL 48 -557.89 132.86
FULBOND HLDGS 1041 -54.53 24.07
MELCOLOT LTD 8198 -63.10 34.44
MITSUMARU EAST K 2358 -18.15 11.83
NEW CITY CHINA 456 -110.49 17.32
NGAI LIK INDL 332 -22.70 9.69
PAC PLYWOOD 767 -72.60 12.31
PAC PLYWOOD HLD 2969 -72.60 12.31
PALADIN LTD 495 -146.73 8.91
PCCW LTD 8 -5,350.25 416.24
PROVIEW INTL HLD 334 -314.87 294.85
SINO RESOURCES G 223 -10.01 41.90
SMART UNION GP 2700 -13.70 43.29
TACK HSIN HLDG 611 -27.70 53.62
TONIC IND HLDGS 978 -67.67 37.85
INDONESIA
ARGO PANTES ARGO -160.07 2.77
ASIA PACIFIC POLY -475.69 841.22
ERATEX DJAJA ERTX -12.09 20.12
HANSON INTERNATI MYRX -10.84 14.73
HANSON INT-PREF MYRXP -10.84 14.73
JAKARTA KYOEI ST JKSW -31.92 43.20
MITRA INTERNATIO MIRA -970.13 256.04
MITRA RAJASA-RTS MIRA-R2 -970.13 256.04
MOBILE-8 TELECOM FREN -520.80 6.99
MULIA INDUSTRIND MLIA -338.82 334.75
PANASIA FILAMENT PAFI -42.43 11.04
PANCA WIRATAMA PWSI -30.79 38.79
PRIMARINDO ASIA BIMA -11.14 21.39
STEADY SAFE TBK SAFE -11.46 6.01
SURABAYA AGUNG SAIP -267.24 83.34
UNITEX TBK UNTX -17.29 17.14
INDIA
AMIT SPINNING AMSP -22.70 1.90
ARTSON ENGR ART -15.63 1.61
ASHIMA LTD ASHM -63.65 55.81
ATV PROJECTS ATV -60.46 55.04
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 -15.35 46.89
COMPUTERSKILL CPS -14.90 7.56
CORE HEALTHCARE CPAR -185.36 241.91
DCM FINANCIAL SE DCMFS -17.10 9.46
DIGJAM LTD DGJM -98.77 14.62
DUNCANS INDUS DAI -133.65 205.38
FIBERWEB INDIA FWB -13.25 8.17
GANESH BENZOPLST GBP -48.95 22.44
GEM SPINNERS LTD GEMS -16.44 1.53
GLOBAL BOARDS GLB -14.98 7.51
GSL INDIA LTD GSL -37.04 42.34
GUJARAT SIDHEE GSCL -59.44 0.66
HARYANA STEEL HYSA -10.83 5.91
HENKEL INDIA LTD HNKL -102.05 10.24
HIMACHAL FUTURIS HMFC -406.63 210.98
HINDUSTAN PHOTO HPHT -68.94 1,147.18
HINDUSTAN SYNTEX HSYN -14.15 3.66
HMT LTD HMT -142.67 386.80
ICDS ICDS -13.30 6.17
INTEGRAT FINANCE IFC -49.83 51.32
JAYKAY ENTERPRIS JEL -13.51 3.03
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
JOG ENGINEERING VMJ -50.08 10.08
KALYANPUR CEMENT KCEM -37.45 45.90
KERALA AYURVEDA KRAP -13.99 1.18
KIDUJA INDIA KDJ -17.15 2.28
KINGFISHER AIR KAIR -1,781.30 861.06
KITPLY INDS LTD KIT -48.42 24.51
LLOYDS FINANCE LYDF -23.77 10.87
LLOYDS STEEL IND LYDS -415.66 63.93
LML LTD LML -65.26 56.77
MILLENNIUM BEER MLB -52.23 5.22
MILTON PLASTICS MILT -18.65 52.29
MTZ POLYFILMS LT TBE -31.94 2.57
NICCO CORP LTD NICC -82.41 2.85
NICCO UCO ALLIAN NICU -32.23 71.91
NK INDUS LTD NKI -49.04 4.95
NRC LTD NTRY -92.88 36.76
ORIENT PRESS LTD OP -16.70 0.09
PANCHMAHAL STEEL PMS -51.02 0.33
PARASRAMPUR SYN PPS -99.06 307.14
PAREKH PLATINUM PKPL -61.08 88.85
PEACOCK INDS LTD PCOK -11.40 14.40
PIRAMAL LIFE SC PLSL -45.82 32.69
QUADRANT TELEVEN QDTV -173.52 101.57
RAJ AGRO MILLS RAM -10.21 0.61
RAMA PHOSPHATES RMPH -34.07 1.19
RATHI ISPAT LTD RTIS -44.56 3.93
REMI METALS GUJA RMM -102.64 5.29
RENOWNED AUTO PR RAP -14.12 1.25
ROLLATAINERS LTD RLT -22.97 22.24
ROYAL CUSHION RCVP -20.62 75.53
SCOOTERS INDIA SCTR -18.63 6.88
SEN PET INDIA LT SPEN -12.99 25.24
SHAH ALLOYS LTD SA -212.81 9.74
SHALIMAR WIRES SWRI -24.87 51.77
SHAMKEN COTSYN SHC -23.13 6.17
SHAMKEN MULTIFAB SHM -60.55 13.26
SHAMKEN SPINNERS SSP -42.18 16.76
SHREE GANESH FOR SGFO -44.50 2.89
SHREE RAMA MULTI SRMT -62.72 45.92
SIDDHARTHA TUBES SDT -76.98 12.45
SOUTHERN PETROCH SPET -1,584.27 4.80
SPICEJET LTD SJET -220.03 76.12
SQL STAR INTL SQL -11.69 1.14
STI INDIA LTD STIB -30.87 10.59
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 -24.55 8.57
TUTICORIN ALKALI TACF -14.15 11.20
UNIFLEX CABLES UFC -45.05 0.90
UNIFLEX CABLES UFCZ -45.05 0.90
UNIMERS INDIA LT HDU -19.23 3.23
UNITED BREWERIES UB -2,652.00 242.53
UNIWORTH LTD WW -145.71 114.87
USHA INDIA LTD USHA -12.06 54.51
VENTURA TEXTILES VRTL -14.25 0.33
VENUS SUGAR LTD VS -11.06 1.08
WINDSOR MACHINES WML -15.52 24.34
WIRE AND WIRELES WNW -115.34 34.49
JAPAN
CREDIT ORG S&M 8489 -97.07 9.98
DPG HOLDINGS INC 3781 -11.77 3.99
FIDEC 8423 -182.86 11.14
FUJI TECHNICA 6476 -175.22 18.71
HARAKOSAN CO 8894 -190.27 19.80
KNT 9726 -1,058.18 13.37
L CREATE CO LTD 3247 -42.34 9.15
LAND 8918 -293.88 53.39
LCA HOLDINGS COR 4798 -55.65 3.28
PROPERST CO LTD 3236 -305.90 330.20
RAYTEX CORP 6672 -41.66 28.52
SHIN-NIHON TATEM 8893 -124.85 39.12
SHINWA OX CORP 2654 -43.91 30.19
SHIOMI HOLDINGS 2414 -201.19 33.62
S-POOL INC 2471 -18.11 0.41
TAIYO BUSSAN KAI 9941 -171.45 3.35
TERRANETZ CO LTD 2140 -11.63 4.29
KOREA
AJU MEDIA SOL-PF 44775 -13.82 1.25
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
SEOUL MUTL SAVIN 16560 -874.79 34.13
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 -32.82 103.86
GULA PERAK BHD GUP -93.99 51.05
HO HUP CONSTR CO HO -65.19 7.21
JPK HOLDINGS BHD JPK -20.34 0.50
LUSTER INDUSTRIE LSTI -22.93 3.18
NGIU KEE CO-BHD NKC -19.05 4.89
OILCORP BHD OILC -93.18 70.42
TRACOMA HOLDINGS TRAH -74.10 12.24
TRANSMILE GROUP TGB -157.66 35.52
PHILIPPINES
APEX MINING 'B' APXB -45.79 23.46
APEX MINING-A APX -45.79 23.46
BENGUET CORP 'B' BCB -84.71 38.98
BENGUET CORP-A BC -84.71 38.98
CYBER BAY CORP CYBR -13.98 88.63
EAST ASIA POWER PWR -36.35 177.28
FIL ESTATE CORP FC -40.29 14.05
FILSYN CORP A FYN -23.37 11.33
FILSYN CORP. B FYNB -23.37 11.33
GOTESCO LAND-A GO -21.76 19.21
GOTESCO LAND-B GOB -21.76 19.21
MRC ALLIED INC MRC -13.92 6.18
PICOP RESOURCES PCP -105.66 23.33
STENIEL MFG STN -20.43 15.89
UNIVERSAL RIGHTF UP -45.12 13.48
UNIWIDE HOLDINGS UW -50.36 57.19
VICTORIAS MILL VMC -164.26 18.20
SINGAPORE
ADV SYSTEMS AUTO ASA -18.08 11.82
ADVANCE SCT LTD ASCT -16.05 43.84
HL GLOBAL ENTERP HLGE -97.30 11.43
JAPAN LAND LTD JAL -203.24 14.68
LINDETEVES-JACOB LJ -16.86 6.64
NEW LAKESIDE NLH -19.34 5.25
SUNMOON FOOD COM SMOON -14.93 14.71
TT INTERNATIONAL TTI -272.51 57.42
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 -97.98 81.80
BANGKOK RUBBER-F BRC/F -97.98 81.80
BANGKOK RUB-NVDR BRC-R -97.98 81.80
CIRCUIT ELEC PCL CIRKIT -16.79 96.30
CIRCUIT ELEC-FRN CIRKIT/F -16.79 96.30
CIRCUIT ELE-NVDR CIRKIT-R -16.79 96.30
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
GRANDE ASSE-NVDR GRAND-R -217.95 9.04
GRANDE ASSET H-F GRAND/F -217.95 9.04
GRANDE ASSET HOT GRAND -217.95 9.04
ITV PCL ITV -37.14 110.85
ITV PCL-FOREIGN ITV/F -37.14 110.85
ITV PCL-NVDR ITV-R -37.14 110.85
K-TECH CONSTRUCT KTECH -38.87 46.47
K-TECH CONSTRUCT KTECH/F -38.87 46.47
K-TECH CONTRU-R KTECH-R -38.87 46.47
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 CORP-NVDR PICNI-R -110.91 149.25
PICNIC CORPORATI PICNI/F -110.91 149.25
PICNIC CORPORATI PICNI -110.91 149.25
PONGSAAP PCL PSAAP/F -24.61 10.99
PONGSAAP PCL PSAAP -24.61 10.99
PONGSAAP PCL-NVD PSAAP-R -24.61 10.99
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 -55.31 8.54
THAI-GERMAN PRO TGPRO -55.31 8.54
THAI-GERMAN-NVDR TGPRO-R -55.31 8.54
TRANG SEAFOOD TRS -13.90 3.59
TRANG SEAFOOD-F TRS/F -13.90 3.59
TRANG SFD-NVDR TRS-R -13.90 3.59
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 U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2011. 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 ***