/raid1/www/Hosts/bankrupt/TCRAP_Public/110401.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, April 1, 2011, Vol. 14, No. 65
Headlines
A U S T R A L I A
INSCOPE SOLUTIONS: Collapses; Subcontractors Left Out-of-Pocket
C H I N A
CHINA INTELLIGENT: Faruqi & Faruqi Probes Potential Wrongdoing
FUFENG GROUP: Fitch Assigns 'BB' Long-Term Issuer Default Rating
GLOBAL DAIRY: Moody's Assigns 'B2' Corporate Family Rating
H O N G K O N G
GUANGDONG BAO: Tan and Agnew Step Down as Liquidators
H.K. ZHONG: Court to Hear Wind-Up Petition on May 4
HUANGPU UNDERWEAR: Osman Mohammed Arab Appointed as New Liquidator
JUMBO CHINA: Osman Mohammed Arab Appointed as New Liquidator
MANNIX PRINTING: Creditors' Proofs of Debt Due April 26
MIXER ELECTRONICS: Osman Mohammed Arab Appointed as New Liquidator
NGAI SHING: Court to Hear Wind-Up Petition on April 20
ON FOOK: Victor Robert Lew Steps Down as Liquidator
ORIENT POWER: Court Enters Wind-Up Order
PRIME VIEW: Creditors' Meeting set for April 14
I N D I A
AMRITSAR SWADESHI: CRISIL Assigns 'BB+' Rating to Cash Credit
ANISH STUDIOS: CRISIL Rates INR95 Million Long-Term Loan at 'B'
BALAJI SOURCINGS: CRISIL Reaffirms 'BB+' Cash Credit Rating
BRIGHT CASTINGS: CRISIL Reaffirms 'B+' Rating on INR25.5MM Loan
CHEMIZOL ADDITIVES: CRISIL Upgrades Rating on Cash Credit to 'BB+'
FARIDABAD STEEL: CRISIL Rates INR99.9MM Cash Credit at 'B+'
INDUSTRIAL ASSOCIATES: CRISIL Assigns 'BB' Rating to INR45MM Loan
LEXUS MOTORS: CRISIL Reaffirms 'B+' Rating on INR20MM Bank Loan
K K NAG: CRISIL Assigns 'BB-' Rating to INR45 Million Term Loan
MAXIM INFRASTRUCTURE: CRISIL Reaffirms 'B+' Rating on LT Loan
POABS ENTERPRISES: CRISIL Assigns 'D' Rating to INR525MM Loan
PREM MOTORS: CRISIL Reaffirms 'BB' Rating on INR170MM Cash Credit
PVSRSN ENTERPRISE: CRISIL Reaffirms 'B+' Rating on Cash Credit
RAJU CONSTRUCTION: CRISIL Upgrades Cash Credit Rating to 'BB'
SHRINATHJI COTEX: CRISIL Assigns 'B' Rating to INR90MM Cash Credit
SREE SKANDHA: CRISIL Assigns 'B+' Rating to INR30MM Term Loan
TECKBOND LABORATORIES: CRISIL Assigns 'BB-' Rating to Term Loan
TOYOP RELIEF: CRISIL Reaffirms 'P4' Rating on Packing Credit
UNITECH LIMITED: Fitch Puts B- Rating to 'Non-Monitored' Category
VIKRANT FORGE: Fitch Assigns 'BB-' National Long-Term Rating
I N D O N E S I A
DAVOMAS ABADI: Moody's Reviewing 'Caa3' Corporate Family Rating
UNIFLORA PRIMA: Moody's Assigns 'B2' Corporate Family Rating
UNIFLORA PRIMA: S&P Assigns 'B-' Long-Term Corporate Credit Rating
J A P A N
ACOM CO: Moody's Downgrades Long-Term Issuer Rating to 'Ba3'
PROMISE CO: Moody's Downgrades Long-Term Issuer Rating to 'B1'
TOKYO ELECTRIC: Shareholders to Face Losses Amid Nuclear Crisis
N E W Z E A L A N D
GENEVA FINANCE: Investors Accept Debt-for-Equity Swap
PIKE RIVER: West Coast Mine to be Formally Put on Market Next Week
T A I W A N
CHINATRUST FINANCIAL: All Cash Deal Won't Affect Fitch's Ratings
X X X X X X X X
* Large Companies With Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
INSCOPE SOLUTIONS: Collapses; Subcontractors Left Out-of-Pocket
---------------------------------------------------------------
Neil Goffet at Newcastle Herald reports that Inscope Solutions Pty
Ltd left a trail of financial destruction for Newcastle
subcontractors before going into liquidation last week.
Contracted to build the government housing project in York Street,
Teralba, Inscope Solutions got the units to lock-up stage before
abandoning the site, Newcastle Herald says.
According to Newcastle Herald, the company was placed in the hands
of administrators with debts totaling about AU$6.5 million,
leaving unsecured creditors such as Jeff Pearce, from JJ Pearce
Bricklaying, fuming. "The government gives these builders the
jobs and they just aren't geared up to do it," Mr. Pearce, one of
the subcontractors owed money from the job, said, according to
Newcastle Herald.
Newcastle Herald relates that Manfred Holzman from Holzman
Associates was appointed liquidator for Inscope Solutions that
left a debt of about AU$1.4 million owing to the National
Australia Bank, about AU$600,000 to the Australian Taxation Office
and an unknown amount to subcontractors.
Newcastle Herald discloses that the government project bungle
comes a month after Maintek Projects collapsed while working on 10
Building the Education Revolution projects in Sydney. The Maintek
project left 28 sub-contractors about AU$5 million out of pocket
and followed Coffs Harbour company Perle Constructions, which
collapsed last month after failing to pay subcontractors on two
school projects.
"Inscope Solutions Pty Ltd was contracted by Housing NSW under the
Nation Building Economic Stimulus Plan to build nine separate
projects and has successfully delivered five of these projects,"
Newcastle Herald quoted a Housing NSW spokesman as saying.
"Housing NSW has paid its bills to Inscope Solutions and done so
promptly, as it has throughout the delivery of the economic
stimulus plan."
Inscope Solutions Pty Ltd is a Sydney-based building company.
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C H I N A
=========
CHINA INTELLIGENT: Faruqi & Faruqi Probes Potential Wrongdoing
--------------------------------------------------------------
Faruqi & Faruqi, LLP, a national law firm concentrating on
investors rights, consumer rights and enforcement of federal
antitrust laws, is investigating potential wrongdoing at China
Intelligent Lighting and Electronics, Inc. Faruqi & Faruqi seeks
to determine whether China Intelligent Lighting has violated
federal securities laws by issuing false and misleading financial
statements to its shareholders, in particular in connection with
its recent public offering of its common stock.
On March 29, 2011, China Intelligent Lighting disclosed that its
independent auditor, MaloneBailey LLP, had formally resigned, AMEX
had issued a delisting notice and the Securities and Exchange
Commission was investigating the Company. MaloneBailey cited
accounting fraud involving forging of the Company's accounting
records and bank statements. The auditor believes that accounting
irregularities may create material errors in previously disclosed
financial statements and that they can no longer support its
opinion relating to the Company's financial statements for the
year ended Dec. 31, 2009. MaloneBailey's resignation led AMEX to
delist China Intelligent Lighting's common stock and the SEC to
initiate a formal, nonpublic investigation into whether the
Company had made material misstatements or omissions concerning
its financial statements, including cash accounts and accounts
receivable. On March 24, 2011, the SEC has served a subpoena for
documents on China Intelligent Lighting relating to matters under
review by the SEC. In response, China Intelligent Lighting's
Board of Directors formed a special committee to investigate these
matters.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP -- http://www.faruqilaw.com/-- is a boutique
law firm, representing investors, consumers and companies in the
prosecution of claims under state corporate and consumer laws and
the federal securities and antitrust laws. The firm is focused on
providing exemplary legal services in complex litigation. Founded
in 1995, the firm maintains its principal office in New York City,
with offices in Delaware, California, Florida and Pennsylvania.
About China Intelligent
China Intelligent Lighting and Electronics, Inc., is a China-based
company that provides a full range of lighting solutions,
including the design, manufacture, sales and marketing of high-
quality LED and other lighting products for the household,
commercial and outdoor lighting industries in China and
internationally. The Company currently offers over 1,000 products
that include LEDs, long life fluorescent lights, ceiling lights,
metal halide lights, super electric transformers, grille spot
lights, down lights, and recessed and framed lighting.
FUFENG GROUP: Fitch Assigns 'BB' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has assigned China-based monosodium glutamate
manufacturer Fufeng Group Limited a Long-Term Foreign Currency
Issuer Default Rating of 'BB' with Stable Outlook. The agency has
also assigned Fufeng's proposed senior unsecured notes an expected
'BB(exp)' rating.
The final rating of the proposed notes is contingent upon the
receipt of documents conforming to information already received.
Net proceeds from the issue will be used to fund capacity
expansion and general working capital purposes.
The ratings reflect Fufeng's strong pricing power and high
profitability supported by its leading position in the Chinese MSG
market and in the global xanthan gum market. Fufeng's share of
the Chinese MSG market increased to 25% at end-2009 from around
12% in 2005, aided by its cost-competitiveness and aggressive
pricing in 2007-2008. It had a 31% share in the XG market at end-
2009. After the last round of industry consolidation in 2007-08,
Fufeng was able to achieve gross margin of over 20% compared with
around 15% for most domestic MSG producers. Fufeng has been able
to achieve continuous cost containment, and therefore sustain its
leading margins, by expanding its production base to regions with
abundant and cheap raw material resources. Fitch believes that
this competitive cost advantage will likely continue given its
strategic first-mover advantage and economies of scale.
Fufeng's ratings are also supported by its strong credit metrics
with an expected interest coverage (defined as operating
EBITDA/gross interest) of above 5x and financial leverage
(adjusted net debt/operating EBITDAR) of below 1.5x over the next
12-18 months, despite that additional capex will be incurred for
capacity expansion. Fufeng's market leading position and sound
financial metrics mean that it will be the main beneficiary of the
ongoing industry consolidation as it has the pricing power and
financial resources to drive the consolidation.
Fufeng's ratings are constrained by its small operating scale
(operating EBITDAR in 2010 of around US$200m) and the risk of
margin volatility upon further industry consolidation.
Nevertheless, any potential price war is likely to be short-lived
and the negative impact on Fufeng's profitability would only be
limited as the industry is now more consolidated compared with
2007-08.
The Stable Outlook reflects Fitch's expectation that Fufeng's
business risk and financial profiles would not change materially
despite its significant expansion capex. Fitch may consider
negative rating action if Fufeng's gross margin drops below 15% or
if financial leverage is sustained above 2.5x. Positive rating
action is not envisaged for the next 12-18 months unless Fufeng
can successfully enlarge its operating scale with operating EBITDA
of US$350 million and a MSG market share above 40%.
GLOBAL DAIRY: Moody's Assigns 'B2' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating to Global Dairy Holdings Limited.
Moody's has also assigned a provisional (P)B2 rating to Global
Dairy's proposed US$ settled RMB denominated senior guaranteed
notes.
The outlook for both ratings is stable.
This is the first time that Moody's has assigned ratings to Global
Dairy.
The provisional status of the bond rating will be removed once
Global Dairy completes the bond issuance on satisfactory terms and
conditions.
Ratings Rationale
The bond proceeds will be used for investments in its upstream
integration business and general corporate purposes.
"Global Dairy's B2 ratings reflect its success in ramping up sales
of its infant milk powder products over the last three years,
despite a competitive environment," says Ken Chan, a Moody's Vice
President and Senior Analyst.
"This success is driven by its flat distribution model, which
allows for a higher level of profit-sharing with distributors,
when compared with other models, and has resulted in an efficient
penetration of the market," adds Chan.
"The B2 ratings also consider Global Dairy's strategy of avoiding
head-to-head competition with large foreign players --- which
dominate the first-tier cities --- and the better room for growth
evident in the second- and third-tier cities in which it focuses,"
says Chan.
"Global Dairy's strategy of focusing on infant formula milk powder
products and niche markets also provides it with higher profit
margins than its peers, who pay relatively higher sales and
marketing expenses," says Chan.
"On the other hand, the Chinese milk powder market is highly
competitive and fragmented, with the presence of established
foreign and other domestic brands. Currently, Global Dairy
accounts for less than 2-3% of the market, a situation which is a
constraint for its ratings," adds Chan.
"In addition, Global Dairy has a short operating history under its
current management, and operates in a market with high food safety
and reputation risks," says Chan. "Although the company has
maintained its product quality over its operating history, this is
still an industry-inherent risk for its credit, and which is
reflected in its B2 ratings."
"Global Dairy is also exposed to the rising costs of raw milk
before its upstream integration business becomes operational, as
well as fluctuating costs for protein and mineral supplements.
However, the low price-sensitive nature of demand for infant
formula milk powder allows Global Dairy to pass on most of the
rise in costs through product repackaging and repositioning,
although with a six-month time lag," says Chan.
While Global Dairy's plan for upstream investments over the next
few years will bring long-term benefits in terms of its ability to
secure raw milk supplies internally and allow for better quality
control, execution risk is high as it lacks track record of
operating an upstream dairy farm business.
However, Moody's draws comfort that the company has adequate
liquidity --- cash on hand of RMB1.3 billion as of December 2010
-- which provides some buffer for any downside to its operations.
Its expected credit metrics -- Debt/EBITDA of around 2.5-3.0x and
EBITDA/Interest of 3.5-4.0x over the next two years --- provide
good support to its single-B rating.
The outlook for the ratings is stable, reflecting Moody's
expectation that the company will maintain the quality of its
products and its distribution network, as well as prudently
execute its upstream expansion plan over the next few years.
The ratings are unlikely to be upgraded in the near-term, given
the short history of the current management team.
However, upward ratings pressure could occur over time if the
company (1) successfully executes its upstream expansion plans to
enable it to internally source raw milk over the next few years;
(2) grows its scale and market share, while sustaining
profitability; and (3) maintains its credit metrics, such that
Debt/EBITDA is below 2.5-3.0x and EBITDA/Interest is over 5.0x on
a consistent basis.
On the other hand, the ratings could experience downward pressure
if the company's financial position weakens, such that Debt/EBITDA
increases above 4.0x and EBITDA/interest stays below 3.5-4.0x over
the cycle. This outcome could be a result of (1) an inability to
execute its upstream dairy farm strategy as planned, and
accordingly continues to expose the company to rising raw milk
costs; (2) a weakening of its market position, and which could be
a result of stronger competition; (3) the company's products show
quality issues, and which affects its sales volumes; and/or (4) an
inability to pass on rising costs to customers.
Moreover, evidence of product quality issues among its peers --
which could affect overall market confidence towards domestically
manufactured products --could be negative for the ratings.
Listed on the Hong Kong Stock Exchange in October 2010, Global
Dairy is a Chinese branded milk powder company. It is engaged in
the production and sale of medium-to-high and premium-priced milk
formula products in China. It has operating facilities in
Heilongjiang province, and distributes its products to 21
provinces and Chongqing in China.
================
H O N G K O N G
================
GUANGDONG BAO: Tan and Agnew Step Down as Liquidators
-----------------------------------------------------
Kenneth Kok-Oon Tan and Dermot Agnew stepped down as liquidators
of Guangdong Bao Shun Transportation Company Limited on March 8,
2011.
H.K. ZHONG: Court to Hear Wind-Up Petition on May 4
---------------------------------------------------
A petition to wind up the operations of H.K. Zhong Xin Jia Hua
Property Investment Limited will be heard before the High Court of
Hong Kong on May 4, 2011, at 9:30 a.m.
Nanyang Commercial Bank (China) Limited filed the petition against
the company on March 2, 2011.
The Petitioner's solicitors are:
Tsang, Chan & Wong
16th Floor, Wing On House
No. 71 Des Voeux Road
Central, Hong Kong
HUANGPU UNDERWEAR: Osman Mohammed Arab Appointed as New Liquidator
------------------------------------------------------------------
Osman Mohammed Arab on Feb. 17, 2011, was appointed as liquidator
of Huangpu Underwear Limited.
Osman Mohammed Arab replaces Chen Yung Ngai Kenneth who stepped
down as the company's liquidator.
The liquidators may be reached at:
Wong Tak Man Stephen
Osman Mohammed Arab
29th Floor, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
JUMBO CHINA: Osman Mohammed Arab Appointed as New Liquidator
------------------------------------------------------------
Osman Mohammed Arab on Feb. 17, 2011, was appointed as liquidator
of Jumbo China Steel Enterprises Company Limited.
Osman Mohammed Arab replaces Chen Yung Ngai Kenneth who stepped
down as the company's liquidator.
The liquidators may be reached at:
Wong Tak Man Stephen
Osman Mohammed Arab
29th Floor, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
MANNIX PRINTING: Creditors' Proofs of Debt Due April 26
-------------------------------------------------------
Creditors of Mannix Printing Company Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by April 26, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Tang Kim Chuen
21/F., Fee Tat Commercial Centre
No. 613 Nathan Road
Kowloon, Hong Kong
MIXER ELECTRONICS: Osman Mohammed Arab Appointed as New Liquidator
------------------------------------------------------------------
Osman Mohammed Arab on Feb. 17, 2011, was appointed as liquidator
of Mixer Electronics Company Limited.
Osman Mohammed Arab replaces Chen Yung Ngai Kenneth who stepped
down as the company's liquidator.
The liquidators may be reached at:
Wong Tak Man Stephen
Osman Mohammed Arab
29th Floor, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
NGAI SHING: Court to Hear Wind-Up Petition on April 20
------------------------------------------------------
A petition to wind up the operations of Ngai Shing Neon Light
Limited will be heard before the High Court of Hong Kong on
April 20, 2011, at 9:30 a.m.
Ip Chi Ching filed the petition against the company on Feb. 16,
2011.
The Petitioner's solicitors are:
Juliana O. Y. Chan
27/F, Queensway Government Offices
66 Queensway, Hong Kong
ON FOOK: Victor Robert Lew Steps Down as Liquidator
---------------------------------------------------
Victor Robert Lew stepped down as liquidator of On Fook Investment
Company Limited on March 18, 2011.
ORIENT POWER: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on Feb. 28, 2011, to
wind up the operations of Orient Power Car Stereos Limited.
The company's liquidators are:
Cosimo Borrelli
G Jacqueline Fangonil Walsh
Level 17, Tower I
Admiralty Centre
18 Harcourt Road, Hong Kong
PRIME VIEW: Creditors' Meeting set for April 14
-----------------------------------------------
Creditors of Prime View Industrial Limited will hold their meeting
on April 14, 2011, at 11:00 a.m., at Room 2402, 24/F., 101 King's
Road Fortress Hill, in Hong Kong.
=========
I N D I A
=========
AMRITSAR SWADESHI: CRISIL Assigns 'BB+' Rating to Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Amritsar
Swadeshi Textile Corporation Pvt Ltd's bank facilities. The
ratings reflect ASTCPL's average financial risk profile, marked by
weak debt protection metrics, and small net worth; the ratings
also reflect the company's average operating efficiency, volatile
profitability, and large working capital requirements. These
rating weaknesses are partially offset by ASTCPL's established
market position, and its promoters' experience in the domestic
blanket industry.
Facilities Ratings
---------- -------
INR114.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR10.00 Million Packing Credit BB+/Stable (Assigned)
INR40.00 Mil. Foreign Bill purchase P4+ (Assigned)
INR54.00 Million Packing Credit P4+ (Assigned)
INR35.00 Million Letter of Credit P4+ (Assigned)
INR15.00 Million Bank Guarantee P4+ (Assigned)
INR8.90 Million Proposed Short-Term P4+ (Assigned)
Bank Loan facility
Outlook: Stable
CRISIL believes that ASTCPL will over the medium term, maintain
its established market position and benefit from promoters'
experience in the blanket manufacturing business. The outlook may
be revised to 'Positive' if ASTCPL's liquidity position and debt
protection metrics improve significantly and its operating income
and profitability increase substantially. Conversely, the outlook
may be revised to 'Negative' in case of lower-than-expected
profitability and revenue growth, or if ASTCPL undertakes fresh,
large, debt-funded capital expenditure, deteriorating its capital
structure.
About Amritsar Swadeshi
Set up in 1957, ASTCPL manufactures woollen blankets and trades in
woollen yarn. It derives about 60% of its revenues from export of
blankets to destinations such as USA, the UK, South East Asia, and
the Middle East. The company has tie-ups with about 15 agents (not
exclusive) to undertake export sales. In the domestic market,
ASTCPL sells blankets under its own brands, Snow Bear and Hansa,
through a network of more than 30 agents across the country. The
company has three manufacturing units in Amritsar (Punjab) and has
installed a total of 2584 spindles and 83 power looms at these
units. ASTCPL does knitting, dyeing, processing, and finishing in-
house.
ASTCPL reported a profit after tax (PAT) of INR7million on net
sales of INR342million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.2 million on net sales
of INR317 million for 2008-09.
ANISH STUDIOS: CRISIL Rates INR95 Million Long-Term Loan at 'B'
---------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the long-term loan
facility of Anish Studios Pvt Ltd.
Facilities Ratings
---------- -------
INR95.00 Million Long-Term Loan B/Stable (Assigned)
The rating reflects ASPL's exposure to execution and demand risks
relating to its ongoing studio project at Kandivali, Mumbai. This
rating weakness is partially offset by the extensive experience of
ASPL's promoters in the studio and allied activities.
Outlook: Stable
CRISIL believes that ASPL will continue to benefit from its
promoters' extensive industry experience, over the medium term.
The outlook may be revised to 'Positive' in case ASPL generates
significantly higher-than-expected revenues and cash accruals
while maintaining its capital structure. Conversely, the outlook
may be revised to 'Negative' in case it suffers significantly
substantial time and cost overruns, or it faces challenges in
attaining the optimal level of offtake, thereby impairing its debt
servicing ability.
ASPL, set up in 2009, and promoted by Mr. Pralhad Gaikwad and Mr.
Abhijit Chougule, is currently setting up a studio in Kandivali,
Mumbai. The studio, spread over 35,500 square feet, will have
three centrally air-conditioned floors. The promoters plan to
provide ready-to-shoot locations for ad-films, television serials
and films through the same. The studio will also be equipped with
pre-production and post-production facilities. The studio is
expected to start operations by second quarter of financial year
2011-12. Mr. Suryakant Kadakane is the Chief Executive Officer of
Anish Studio Pvt. Ltd.
BALAJI SOURCINGS: CRISIL Reaffirms 'BB+' Cash Credit Rating
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Balaji Sourcings Pvt
Ltd continue to reflect BSPL's small scale of operations, and
average financial risk profile marked by a high gearing and a
small net worth.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit BB+/Stable (Reaffirmed)
INR150.0 Million Letter of Credit P4+ (Reaffirmed)
The ratings also reflect the company's exposure to risks related
to delay in realisation of receivables and to foreign exchange
(forex) rate fluctuations in the trading business. These rating
weaknesses are partially offset by BSPL's moderate debt protection
metrics, established relationships with its suppliers.
Outlook: Stable
CRISIL believes that BSPL will continue to benefit from its
association with BAL over the medium term. The outlook may be
revised to 'Positive' in case of a significant increase in BSPL's
net worth, most likely because of sustained improvement in
profitability or fresh equity infusion, or if the company's
revenues and margins increase significantly, driven by high
domestic demand for methanol. Conversely, the outlook may be
revised to 'Negative' if BSPL's capital structure deteriorates, or
its revenues and operating profitability decline as a result of
limited operational support from BAL.
Update
BSPL's revenues expected to grow by 67% in 2010-11 (refers to
financial year, April 1 to March 31) with addition of new
customers and higher offtake from existing customers. However,
the company's operating margins are expected to decline to around
2.8% in 2010-11 from 3.9% in 2009-10 because of increasing
competitive pressures coupled with forex loss on imports. However,
the small scale of operations continues to constrain growth in net
worth, which is expected to remain small at around INR46 million
as on March 31, 2011. The small net worth would continue to result
in a high total outside liabilities to tangible net worth ratio
estimated at around 6.0 times as on
March 31, 2011.
About Balaji Sourcings
Incorporated in 2006 by Mr. D Ram Reddy, Mr. A Prathap Reddy,
Mr. Vikas Shah, and BAL, BSPL is a merchant importer of methanol
and other key chemicals used by the pharmaceutical and
agricultural chemical industries. BSPL imports products from the
Gulf countries, primarily Saudi Arabia, and sells them in India.
The company has storage units in Mumbai (Maharashtra) and Kandla
(Gujarat).
BSPL reported a profit after tax (PAT) of INR11 million on net
sales of INR691 million for 2009-10, against a PAT of INR4 million
on net sales of INR724 million for 2008-09.
BRIGHT CASTINGS: CRISIL Reaffirms 'B+' Rating on INR25.5MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bright Castings
continue to reflect Bright Castings' susceptibility to cyclicality
in its end-user industries, its weak financial risk profile marked
by high gearing, and small scale of its operations in the casting
components industry. These rating weaknesses are partially offset
by the firm's moderate operating efficiency.
Facilities Ratings
---------- -------
INR25.5 Million Term Loan B+/Stable (Reaffirmed)
INR2.0 Million Working Capital B+/Stable (Reaffirmed)
Demand Loan
INR25.0 Million Cash Credit B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Bright Castings will continue to face
pressures because of its small net worth and sluggish demand for
its products, over the medium term. The outlook maybe revised to
'Negative' if Bright Castings' financial risk profile weakens
further, most likely because of a larger-than-expected debt-funded
capital expenditure (capex) or a decline in cash accruals
constraining its debt servicing ability. Conversely, the outlook
may be revised to 'Positive' if there is sustained growth in
firm's revenues along with stable profitability and large capital
infusion.
Update
Bright Castings' revenues declined by 25% year-on-year to INR82.8
million in 2009-10 (refers to financial year, April 1 to March
31), driven by a slowdown in export demand for its products from
end-user industries. However, for the first nine months of 2010-
11, the firm reported, on provisional basis, revenues of around
INR73.1 million, reflecting a recovery in demand. It reported, on
provisional basis, an operating margin of 14% for the nine months
ended December 31, 2010, which was marginally lower than 14.7% for
2009-10. The firm reported a profit after tax (PAT) of INR1.1
million on net sales of INR77.5 million for 2009-10, against a PAT
of INR8.8 million on net sales of INR107.7 million for 2008-09.
Bright Castings' operations remained working capital intensive,
resulting in high bank limit utilization of 87% on an average
during the nine months ended December 31, 2010. As on December 31,
2010, the firm had gross current asset level of around 150 days of
operating income, reflecting its large working capital
requirements. Furthermore, Bright Castings' continued to have a
high gearing, which was around 2.40 times as on December 31, 2010.
However, its debt protection metrics were moderate, with interest
coverage and net cash accruals to total debt ratios of 2.28 times
and 0.12 times respectively for the nine months ended December 31,
2010. The firm's financial risk profile also remains constrained
because of its small net worth, estimated at INR18 million as on
December 31, 2010.
About Bright Castings
Bright Castings was set up in 1985 as a partnership concern for
manufacturing casting components. It was reconstituted as a
proprietorship firm, owned by Mr. V. Subbian. The firm
manufactures grey iron, spheroidal graphite iron, nickel-resist
castings, and nickel-hard castings. Its plant in Coimbatore (Tamil
Nadu) has capacity to produce 2,500 tonnes of castings per year.
CHEMIZOL ADDITIVES: CRISIL Upgrades Rating on Cash Credit to 'BB+'
------------------------------------------------------------------
CRISIL has upgraded its rating on the bank facility of Chemizol
Additives Pvt Ltd to 'BB+/Stable' from 'BB-/Stable', while
reaffirming the rating on the short-term bank facilities at 'P4+'.
Facilities Ratings
---------- -------
INR7.50 Million Cash Credit BB+/Stable (Upgraded from
'BB-/Stable')
INR20.00 Million Packing Credit P4+ (Reaffirmed)
INR12.50 Million Letter of Credit P4+ (Reaffirmed)
INR2.00 Million Bank Guarantee P4+ (Reaffirmed)
The upgrade reflects improvement in Chemizol's business risk
profile, marked by new orders and the promoter's increased focus
to scale up operations. Chemizol's revenues are expected to
increase to INR360 million in 2010-11 (refers to financial year,
April 1 to March 31) compared to the initial expectations of
INR170 million; the company posted revenues of about INR129
million in 2009-10. Chemizol has an established network of 5 to 6
distributors; it recently added Multisol Group (engaged in the
formulation and distribution of high-value specialty chemicals
operating in the UK, continental Europe, and Africa) to its
distribution network. Furthermore, Chemizol has entered into an
agreement with a few lubricant manufacturing entities abroad, for
licensing of formulations. Chemizol's operating margin of around
8.5% in 2009-10 was in line with CRISIL's expectation. The
upgrade also reflects the improvement in Chemizol's financial risk
profile because of better-than-expected gearing of about 0.88
times by March 31, 2011, primarily because of higher accruals, and
funding of capital expenditure (capex) of INR20 million in 2010-11
through internal accruals, against CRISIL's expectation of funding
in a debt-to-equity ratio of 4:1. Chemizol has adequate liquidity
for the rating category marked by expected annual cash accruals of
INR20 million to INR25 million as against nil term debt
obligations and the absence of any debt-funded capex over the
medium term.
The ratings continue to reflect Chemizol's modest scale of
operations along with high dependence on the fortunes of the end-
user industry and susceptibility of operating margin to volatility
in foreign exchange rates. These rating weaknesses are partially
offset by Chemizol's established market position in the lubricant
additives market, and above-average financial risk profile marked
by a low gearing and healthy debt protection metrics.
Outlook: Stable
CRISIL believes that Chemizol will continue to benefit over the
medium term from its promoter's experience in the lubricant
additives business. The outlook may be revised to 'Positive' if
Chemizol scales up its operations considerably, and improves its
operating margin, thereby resulting in a substantial increase in
its cash flows. Conversely, the outlook may be revised to
'Negative' if the company reports less-than-expected cash accruals
most likely because of competition or weak demand conditions, or
undertakes a large debt-funded capex programme, thereby adversely
affecting its capital structure.
About Chemizol Additives
Set up in 2008-09 by Mr. G Ravi, Bengaluru (Karnataka)-based
Chemizol is engaged in developing and designing formulations
applied in the manufacturing of additives which are used in the
lubricants industry. The company derives more than 90% of its
income from sale of additives and the rest from royalty income
from licensing of formulations. Chemizol outsources the
manufacture of additives to a nearby unit. The company has strong
in-house research and development facilities with continuous focus
on design and development of additive formulations. Chemizol's
entire income is from exports primarily to the US, Europe, and
Singapore through distributors. Chemizol currently has an order
book of about INR300 million to be executed in another four to
five months.
Chemizol reported a profit after tax (PAT) of INR6 million on net
sales of INR129 million in 2009-10, against a PAT of INR10 million
on net sales of INR187 million for 2008-09.
FARIDABAD STEEL: CRISIL Rates INR99.9MM Cash Credit at 'B+'
-----------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to Faridabad Steel
Mongers Pvt Ltd's cash credit facility.
Facilities Ratings
---------- -------
INR99.9 Million Cash Credit B+/Stable (Assigned)
The rating reflects FSMPL's weak financial risk profile, marked by
a small net worth, a high ratio of total outside liabilities to
tangible net worth, and average debt protection metrics, customer
concentration in revenue profile, and exposure to intense
competition in the steel industry. These rating weaknesses are
partially offset by FSMPL's established relationships with
customers and suppliers.
Outlook: Stable
CRISIL believes that FSMPL will maintain its credit risk profile
over the medium term, based on the experience of its promoters in
the steel trading business. The outlook may be revised to
'Positive' in case of improvement in FSMPL's operating
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' if the company's debt protection measures
and risk coverage deteriorate because of aggressive growth plans,
or if its supplies are adversely impacted because of non-renewal
of contracts with its suppliers.
About Faridabad Steel
FSMPL, based in Faridabad (Haryana), was established in 2004 as a
partnership firm by Mr. Yogesh Kumar Gupta and operated in the
name of SP Industries till March 2009. Mr. Yogesh Kumar Gupta was
earlier involved in Haryana Steel Mongers Pvt Ltd, which has been
operational since 1976, with his father Mr. J P Gupta and brother
Mr. Raj Kumar Gupta. The family separated in 2009, and as part of
the family settlement, FSMPL's operations came under Mr. Yogesh
Kumar Gupta, while the operations of HSMPL came under Mr. Raj
Kumar Gupta and Mr. J P Gupta.
FSMPL trades in flat steel products, including mild steel (MS)
plates, hot-rolled (HR) sheets, angels, and channels.
FSMPL report a profit after tax (PAT) of INR1.9 million on net
sales of INR916.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.5 million on net sales
of INR414 million for 2008-09.
INDUSTRIAL ASSOCIATES: CRISIL Assigns 'BB' Rating to INR45MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Industrial Associates.
Facilities Ratings
---------- -------
INR45.0 Million Long-Term Loan BB/Stable(Assigned)
INR65.0 Million Cash Credit BB/Stable(Assigned)
INR7.5 Million Bill Payable P4+ (Assigned)
INR30.0 Million Bank Guarantee P4+ (Assigned)
INR2.5 Million Letter of Credit P4+ (Assigned)
The ratings reflect IA's large working capital requirements, the
vulnerability of its margins to raw material price volatility, on
account of fragmentation in the refractory industry, and its
exposure to cyclicality in the steel industry. These weaknesses
are partially offset by IA's established customer relationships
and promoter's extensive industry experience.
Outlook: Stable
CRISIL believes that IA will continue to benefit from its
established market position and its promoters' extensive industry
experience. The outlook may be revised to 'Positive' in case of
substantial growth in the firm's revenues, or improvement in its
financial risk profile, driven by improvement in operating
profitability. Conversely, the outlook may be revised to
'Negative' if IA's operating profit declines, or if it undertakes
a large, debt-funded capital expenditure programme, resulting in
deterioration in its financial risk profile.
About Industrial Associates
IA is a partnership firm which began operations in 1969. It offers
refractory solutions at home and abroad. Until 2007-08 (refers to
financial year, April 1 to March 31), the firm primarily traded in
refractory bricks, refractory castables and other insulation
material manufactured by other companies, and also had an SSI
refractory manufacturing unit with a capacity of 4000 tonnes per
annum. These low quality products had average realizations of
INR3,000 per tonne and generated revenues of around INR10 million
per annum for the company. The majority of the company's revenue
were, however, derived from trading operations. In 2008-09, the
company expanded its capacity to 15,000 tonnes of superior quality
refractory material, which has an average realisation of INR10,
000 per tonne. Its plant is located in Raniganj (West Bengal), on
National Highway 6, between Asansol and Durgapur (both in West
Bengal).
The company is currently engaged in three business activities:
manufacturing of refractory bricks and refractory castables,
marketing agent of refractory and insulation materials
manufactured by other firms (Associated Cement Companies Ltd,
Murugappa Morgan Thermal Ceramics Ltd, Prodorite Anti-Corrosives
Ltd, Tata Refractories Ltd, Hyderabad Industries Ltd, Bharat
Refractories Ltd, and Carborundum universal Ltd) and design and
manufacture of custom-built industrial kilns and ovens. The design
aspect is now a focus area for the firm because of higher profit
margins.
For 2009-10 (refers to financial year, April 1 to March 31),
Industrial Associates reported a profit after tax (PAT) of INR2.8
million on operating income of INR176 million, against a PAT of
INR3.8 million on operating income of INR 164.8 million for 2008-
09.
LEXUS MOTORS: CRISIL Reaffirms 'B+' Rating on INR20MM Bank Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Lexus Motors Ltd's
continue to reflect LML's weak financial risk profile, marked by
small net worth, high gearing, weak debt protection metrics, and
low profit margin, and its exposure to risks related to intense
competition in the automobile dealership industry. These rating
weaknesses are partially offset by LML's established position in
the automobile dealership market in West Bengal.
Facilities Ratings
---------- -------
INR300 Million Cash Credit B+/Stable (Reaffirmed)
INR20 Million Proposed LT Bank B+/Stable (Reaffirmed)
Loan Facility
Outlook: Stable
CRISIL believes that LML will maintain its credit risk profile,
backed by its established market position. The outlook may be
revised to 'Positive' if LML's profitability or capital structure
improves significantly. Conversely, the outlook may be revised to
'Negative' if LML's profitability declines sharply, or if it
undertakes a large, debt-funded capital expenditure (capex)
programme, leading to deterioration in its financial risk profile.
Update
LML achieved turnover of around INR5.2 billion in 2009-10 (refers
to financial year, April 1 to March 31), against that of INR3.4
billion in 2008-09. LML has booked turnover of around INR5.4
billion in the nine months ended December 2010, and is expected to
achieve net sales of around INR7.0 billion in 2010-11, which is
higher than CRISIL had expected, led by increased demand for
commercial vehicles. The company is also now a dealer for Tata
Motors Ltd's (TML's, rated 'AA-/Stable/P1+' by CRISIL) premium
cars such as Jaguar and Land Rover. LML recently opened another
showroom in Kolkata. Its operating profitability is expected to be
in the range of 1.4 to 1.8% over the medium term, on account of
the trading nature of its business and high competition in its
territory. The company prudently manages its working capital. Its
average inventory holding period is around 30 days and it has low
exposure to receivable risks as debtors are secured through
financing from financial institutions.
LML's financial risk profile has deteriorated on account of debt
funding of incremental working capital requirements. Furthermore,
the company has also undertaken a debt-funded capex amounting to
INR100 million to open its new showroom in Kolkata.
LML has plans to undertake capex amounting to INR300 million for
the new showroom and to build a shopping complex in Rajarhat
(Kolkata). CRISIL believes that funding pattern of this capex
would be a key rating driver, as a large debt-funded capex would
result in significant deterioration in its financial risk profile.
The company's capex plans would put pressure on its liquidity and
test its long term loan repayment capabilities. Though the
company will be able to generate higher accruals, the timing of
cash accruals and incremental working capital requirement would
remain a key factor for the ratings of the company.
LML reported a profit after tax (PAT) of INR10.5 million on net
sales of INR5.1 billion for 2009-10, against a PAT of INR1.2
million on net sales of INR3.4 billion for 2008-09.
About Lexus Motors
LML, incorporated in 1991, is TML's authorised dealer for the sale
of its entire range of commercial vehicles and passenger cars, and
for sale of spares, accessories, and services of passenger cars in
South 24 Parganas, North 24 Parganas, Nadia, Howrah, Hooghly, and
Kolkata (all in West Bengal). The dealership agreements are
renewable every year. LML has four showrooms, two branches, four
workshops, and six customer connect points spread across the
districts in which it operates. All of these properties, except
workshops, are owned by LML. The company also undertakes trading
in used cars. The day-to-day operations of the company are
managed by its promoter-director Mr. Binod Kumar Agarwal.
K K NAG: CRISIL Assigns 'BB-' Rating to INR45 Million Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of K K Nag Ltd.
Facilities Ratings
---------- -------
INR65.00 Million Cash Credit BB-/Stable (Assigned)
INR45.00 Million Term Loan BB-/Stable (Assigned)
INR10.00 Million Bank Guarantee/ P4+ (Assigned)
Letter of Credit
The ratings reflect KKNL's weak financial risk profile, marked by
a small net worth and a high gearing, small scale of its
operations, and large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of
KKNL's promoters in the expanded polystyrene (EPS) packaging
industry.
Outlook: Stable
CRISIL believes that KKNL will continue to benefit over the medium
term from its established market position and customer base in the
packaging industry. The outlook may be revised to 'Positive' in
case of improvement in KKNL's capital structure, driven by more-
than-expected cash accruals. Conversely, the outlook may be
revised to 'Negative' in case of less-than-expected cash accruals
or if KKNL undertakes a large, debt-funded capital expenditure
programme, further deteriorating its financial risk profile.
About K K Nag
KKNL manufactures packaging material, insulation products for the
electronics industry, and automobile components, from EPS and
expanded polypropylene (EPP). It also manufactures roto-moulded
products such as disposable lavatories and tanks. The company was
founded in 1965 by the late Mr. Kalyan Kumar Nag to manufacture
fibreglass and lead-lined products. Though the company has
various applications for EPS and EPP, the major revenue driver
remains packaging of white goods for manufacturers such as
Whirlpool of India Ltd, Godrej Industries Ltd, Videocon India Ltd,
Hindustan Unilever Ltd, and Samsung India Electronics Ltd. Around
87% of its revenues were derived from EPS and EPP products in
2009-10 (refers to financial year, April 1 to March 31).
KKNL reported a profit after tax (PAT) of INR11 million on net
sales of INR668 million for 2009-10, against a PAT of INR6.9
million on net sales of INR557.8 million for 2008-09.
MAXIM INFRASTRUCTURE: CRISIL Reaffirms 'B+' Rating on LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'P4' rating to the short term bank
facilities of Maxim Infrastructure and Real Estate Pvt Ltd while
reaffirming the long term rating at 'B+/Stable'.
Facilities Ratings
---------- -------
INR1592.40 Million Long-Term Loan B+/Stable (Reaffirmed)
INR100 Million Bank Guarantee P4 (Assigned)
The ratings reflect Maxim Infra's exposure to risks related to
cyclicality in the hospitality industry, an economic slowdown, and
project implementation. These weaknesses are partially offset by
the healthy prospects for the tourism industry in North-East
India, and Maxim Infra's tie-up with Marriot International Inc
(Marriot).
Outlook: Stable
CRISIL believes that Maxim Infra will remain exposed to project
implementation risks over the medium term. The outlook may be
revised to 'Positive' if the project is completed without any time
or cost overruns, and the company generates stable accruals from
operations. Conversely, the outlook may be 'Negative' in case of
any delays in project implementation or if the company is unable
to generate stable accruals from operations, adversely impacting
its ability to service its debt.
About Maxim Infrastructure
Maxim Infra was incorporated in December 2007 by Mr. Narayan
Prasad Jhunjhunwala, his children, Mr. Pankaj Jhunjhunwala, Mr.
Prithu Jhunjhunwala, and Mrs. Jyoti Agarwal, and son-in-law, Mr.
Vikash Agarwal. The company has been established to develop two
five-star hotels in North-East India at a total project cost of
INR2388.6 million, to be funded in debt-to-equity ratio of 2:1.
The operations of the hotel will be managed by Marriot.
POABS ENTERPRISES: CRISIL Assigns 'D' Rating to INR525MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Poabs
Enterprises Pvt Ltd, which is part of the Poabs Plantation group.
Facilities Ratings
---------- -------
INR525 Million Term Loan D (Assigned)
INR75 Million Cash Credit D (Assigned)
The rating reflects delays by PEPL in servicing the interest
payment on its debt; the delays have been on account of the
company's weak liquidity owing to currently underway capital
expenditure programme which includes setup of tea factories and
ongoing plantation and rejuvenation of the tea estates.
The group also has weak financial profile marked by net losses and
high gearing levels and is exposed to risks related to ongoing
capital expenditure programme and cyclicity in the tea business.
These rating weaknesses are partially offset by PPG's promoters'
experience in the plantations and quarry business.
To arrive at its rating, CRISIL has consolidated the business and
financial risk profiles of PEPL, Poabs Exports, Poabs Estates Pvt
Ltd, Poabs Plantations Pvt Ltd, and Poabs Organic Products Pvt
Ltd. This is because these companies, collectively referred to as
the PPG, are under a common management and have sizable business
and financial alignment.
About the Group
PEPL, set up in 2008 by Mr. PA Jacob, cultivates tea, coffee and
other related commodities. The other PPG entities are also
engaged in the plantation business. Besides plantations, the
Poabs group has interests in quarrying and crushing, construction
engineering services and commodity trading businesses. Poabs group
is managed by the Jacob family. PEPL is actively managed by Mr.
Thomas Jacob.
PEPL reported a net loss of INR74.6 million on net sales of
INR149.1 million for 2009-10 (refers to financial year, April 1 to
March 31), against a net loss of INR80.6 million on net sales of
INR44.2 million for 2008-09.
PREM MOTORS: CRISIL Reaffirms 'BB' Rating on INR170MM Cash Credit
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Prem Motors Pvt Ltd
continues to reflect PMPL's modest financial risk profile marked
by a highly leveraged capital structure, and its limited
negotiating power with its principals, Maruti Suzuki India Ltd
(MSIL; rated 'AAA/Stable/P1+' by CRISIL) and Piaggio Vehicles Pvt
Ltd (Piaggio; rated 'A+/Stable/P1+' by CRISIL). These rating
weaknesses are partially offset by PMPL's established position in
selected automobile dealership market.
Facilities Ratings
---------- -------
INR170.00 Million Cash Credit BB/Stable (Reaffirmed)
INR110.00 Mil. Inventory Funding BB/Stable (Reaffirmed)
Limit
INR315.42 Million Term Loan BB/Stable (Reaffirmed)
INR300.00 Mil. Electronic Dealer BB/Stable (Assigned)
Financing Scheme
INR100.00 Million Bank Guarantee P4+ (Assigned)
Outlook: Stable
CRISIL believes that PMPL will maintain its business risk profile
over the medium term, supported by its established market
position. The outlook may be revised to 'Positive' if PMPL's
capital structure improves significantly, or if the company
derives higher-than-expected benefits from its capital expenditure
(capex), leading to improvement in profitability. Conversely, the
outlook may be revised to 'Negative' if PMPL contracts more-than-
expected debt to fund its incremental working capital requirements
or weakens its capital structure by undertaking a larger-than-
expected debt-funded capex programme.
About Prem Motors
PMPL was incorporated in 1990, promoted by Mr. Charanjeet Nagpal.
The company is an authorised dealer of MSIL's and Piaggio's
vehicles. The company has dealerships of MSIL in Jaipur, Gwalior,
Agra, and Guna and Piaggio dealership in Gwalior. In November
2009, PMPL demerged its dealership of TVS Motors Ltd (Gwalior) to
another promoter-owned company, Garima Motors Pvt Ltd.
For 2009-10 (refers to financial year, April 1 to March 31), PMPL
reported a profit after tax (PAT) of INR35.57 million on net sales
of INR2.89 billion, against a PAT of INR6.42 million on net sales
of INR1.84 billion for the previous year.
PVSRSN ENTERPRISE: CRISIL Reaffirms 'B+' Rating on Cash Credit
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of PVSRSN Enterprise Pvt
Ltd continue to reflect PVSRSN's geographically concentrated
revenue profile, and working-capital-intensive operations. These
rating weaknesses are partially offset by PVSRSN's above-average
financial risk profile, and the experience of the company's
promoters in the infrastructure development business.
Facilities Ratings
---------- -------
INR150 Million Cash Credit Limits B+/Stable (Reaffirmed)
INR100 Million Bank Guarantee P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that PVSRSN will maintain its business risk
profile over the medium term from its promoter's experience in the
infrastructure development business and the expected
diversification in its order book. The outlook may be revised to
'Positive' if PVSRSN diversifies its revenue profile, along with
sustained higher-than-expected increase in revenues and
profitability as well as improvement in working capital cycle.
Conversely, the outlook may be revised to 'Negative' if there is a
substantial build up in inventory or receivables, resulting in
pressure on its liquidity.
About PVSRSN Enterprise
Set up as a proprietorship firm in 2003 by Mr. P V Sita Rama Swamy
Naidu, PVSRSN was reconstituted as a closely held company in 2008.
The company undertakes civil construction activities involving
irrigation and roadwork, and has executed projects primarily in
Andhra Pradesh.
PVSRSN reported a profit after tax (PAT) of INR48 million on net
sales of INR1.18 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR46 million on net sales
of INR975 million for 2008-09.
RAJU CONSTRUCTION: CRISIL Upgrades Cash Credit Rating to 'BB'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Raju Construction Company to 'BB/Stable' from 'BB-/Stable', while
reaffirming its rating on the short-term bank facility at 'P4+'.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit BB/Stable (Upgraded from
BB-/Stable)
INR40.0 Million Bank Guarantee P4+ (Reaffirmed)
The upgrade reflects CRISIL's belief that Raju Construction will
improve its business risk profile further backed by satisfactory
order book and satisfactory profitability. The firm achieved
better-than-expected operating performance in 2010-11 (refers to
financial year, April 1 to March 31), backed by substantial
increase in its topline and cash accruals, which is expected to
sustain over the medium term. The upgrade also reflects the
firm's improved capital structure and working capital management.
The ratings continue to reflect Raju Construction's limited
project diversity, geographic concentration in its revenue
profile, and its exposure to risks related to tender-based nature
of its operations and intense competition in the civil
construction industry. These rating weaknesses are partially
offset by Raju Construction's above-average financial risk
profile, marked by moderate debt protection metrics, and the
benefits that it derives from its strong order book.
Outlook: Stable
CRISIL believes that Raju Construction will maintain its credit
risk profile, backed by its moderate debt protection metrics. The
outlook may be revised to 'Positive' if Raju Construction
maintains steady revenue growth and stable profitability while
improving its capital structure. Conversely, the outlook may be
revised to 'Negative' if the firm undertakes a large, debt-funded
capital expenditure programme over the medium term, thereby
deteriorating its capital structure.
About Raju Construction
Set up in 1981, Raju Construction undertakes civil construction
activities. The firm's operations are managed by the partners,
Mr. Jethanand Israni, Mr. Prakash Israni, and Mr. Jagdish Israni.
The firm is predominantly into road construction projects for
state government agencies. It is registered with various
government agencies, such as Madhya Pradesh (MP) Public Works
Department, MP Road Development Corporation (MPRDC), and Water
Resource Department of MP State Government.
Raju Construction reported a profit after tax (PAT) of INR11.5
million on net sales of INR335.3 million for 2009-10 (refers to
financial year, April 1 to March 31) against a PAT of INR3.2
million on net sales of INR234.6 million for 2008-09.
SHRINATHJI COTEX: CRISIL Assigns 'B' Rating to INR90MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the bank facilities
of Shrinathji Cotex Pvt Ltd.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit B/Stable (Assigned)
INR16.0 Million Term Loan B/Stable (Assigned)
The rating reflects SCPL's below-average financial risk profile,
marked by small net worth and high gearing, large working capital
requirements, and the adverse impact of regulatory or policy
changes relating to cotton prices on its business and
profitability. These weaknesses are partially offset by the
experience of SCPL's promoters in the cotton industry.
Outlook: Stable
CRISIL believes that SCPL will benefit over the medium term from
the established track record of its partners in the cotton ginning
industry. The outlook may be revised to 'Positive' in case of
significant improvement in cash accruals, leading to improvement
in gearing and the capital structure. Conversely, the outlook may
be revised to 'Negative' in case of a less-than-expected operating
margin, leading to deterioration in cash accruals over the medium
term, or if the company undertakes a large, debt-funded capital
expenditure programme.
About Shrinathji Cotex
SCPL was incorporated in January 2009, and commenced commercial
production in October 2009. Based in Rajkot (Gujarat), the company
is engaged in the ginning and pressing of raw cotton into cotton
bales.
SCPL reported a profit after tax (PAT) of INR2.35 million on net
sales of INR348.64 million for 2009-10 (refers to financial year,
October 1 to March 31).
SREE SKANDHA: CRISIL Assigns 'B+' Rating to INR30MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of Sree Skandha Food Processing (India) Pvt Ltd.
Facilities Ratings
---------- -------
INR92.50 Million Cash Credit B+/Stable (Assigned)
INR30.00 Million Term Loan B+/Stable (Assigned)
INR17.50 Million Proposed Term Loan B+/Stable (Assigned)
The rating reflects the SSF group's weak financial risk profile,
marked by high gearing and small net worth, and the susceptibility
of its operating margin to adverse regulatory changes in paddy
procurement, rice trading and to volatility in raw material
prices. These weaknesses are partially offset by the experience of
the group's promoters in the rice milling business.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SSF and Sai Laxmi Paraboiled Industries
(SLPI), together referred to as the SSF group. This is because the
two entities are under common ownership and management, and have
operational linkages and fungible funds.
Outlook: Stable
CRISIL believes that the SSF group will continue to benefit from
its promoters' experience in the rice business. The outlook may
be revised to 'Positive' if the group achieves strong revenue
growth, while improving its profitability and capital structure.
Conversely, the outlook may be revised to 'Negative' if the group
undertakes a larger-than-expected debt-funded capital expenditure
programme, or if its revenues or profitability declines sharply,
leading to deterioration in its financial risk profile.
About the Group
SSF, incorporated in 2007, is engaged in milling and processing of
paddy into rice, rice bran, broken rice, and husk. It mainly
processes steam and raw rice. It has an installed paddy milling
capacity of eight tonnes per hour at its rice mill in Chiksugur
(Karnataka). The group sells the rice to various wholesalers and
dealers in the states of Karnataka, Tamil Nadu, Andhra Pradesh,
and Maharashtra under the brand name of 'skandha', 'siddhi', and
'yogi'. The group's commercial operations have started in July
2009. The group is promoted by Mr. Kalidindi Venkata Subrahmanya
Raju along with his family members and others.
SLPI is a registered partnership firm; the firm owns boiler and
drier facilities that are used entirely by SSF.
The SSF group reported a loss after tax of less than INR0.01
million on net sales of INR148 million for 2009-10 (refers to
financial year, April 1 to March 31), in its nine months of
operations. For the 11 month period ended February 28, 2011, SSF
group has reported revenues of about INR380 million.
TECKBOND LABORATORIES: CRISIL Assigns 'BB-' Rating to Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Teckbond Laboratories Pvt Ltd.
Facilities Ratings
---------- -------
INR45 Million Cash Credit BB-/Stable (Assigned)
INR30 Million Term Loan BB-/Stable (Assigned)
INR10 Million Letter of Credit P4+ (Assigned)
INR5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Teckbond's large working capital requirements,
susceptibility to customer concentration and small scale of
operations and net worth. These rating weaknesses are partially
offset by the extensive experience of Teckbond's promoters in the
pharmaceutical industry, and above-average financial risk profile,
marked by comfortable gearing and healthy debt protection metrics.
Outlook: Stable
CRISIL believes that Teckbond will benefit from its promoters'
extensive industry experience and comfortable profitability over
the medium term. The outlook may be revised to 'Positive' if
diversification into Active Pharmaceutical Ingredients while
sustaining profitability and financial risk profile significantly
increases Teckbond's scale of operations. Conversely, the outlook
may be revised to 'Negative' if the company registers less-than-
anticipated profitability, or if it undertakes more-than-expected
debt-funded capital expenditure.
About Teckbond Laboratories
Incorporated in 2004, Teckbond manufactures intermediates used in
manufacturing bulk drugs. It started as a job worker for its
customers, and in 2008, started undertaking its own research
activities. The company's plant in Hyderabad (Andhra Pradesh) has
a capacity of about 180 tonnes per annum. The company is now
entering the API or bulk drugs manufacturing segment.
Teckbond reported a profit after tax (PAT) of INR6.1 million on
net sales of INR123.4 million for 2009-10 (refers to financial
year, April 1 to March 31), as against a PAT of INR8.3 million on
net sales of INR140.6 million for 2008-09.
TOYOP RELIEF: CRISIL Reaffirms 'P4' Rating on Packing Credit
------------------------------------------------------------
CRISIL's rating on the bank facilities of Toyop Relief Pvt Ltd
continues to reflect Toyop's revenue volatility, large working
capital requirements, and weak financial risk profile marked by
high gearing and weak debt protection metrics. These rating
weaknesses are partially offset by Toyop's established market
position in the disaster-relief-material industry, and good
relationships with non-governmental organisations (NGO).
Facilities Ratings
---------- -------
INR70.0 Million Packing Credit P4 (Reaffirmed)
INR20.0 Million Bill Discounting P4 (Reaffirmed)
INR10.0 Million Letter of Credit P4 (Reaffirmed)
INR10.0 Million Bank Guarantee P4 (Reaffirmed)
Update
Toyop's revenues for 2009-10 (refers to financial year, April 1 to
March 31) have been in line with CRISIL's estimates. Toyop's total
order book, expected to be around INR300 million as on March 31,
2011, is expected to be executed by June 2011. In March 2010, the
company set up its second windmill and is now expected to earn
revenues of about INR40 million per year from its total capacity
of 3.6 megawatts (MW). Driven by the high-margin windmill
business, the company's operating margin is expected to remain
healthy over the medium term. In March 2010, Toyop merged with
itself a proprietorship entity, Toyop & Co, set up by its
promoter, engaged in the import and sale of specialty plastic
granules. Following the merger, Toyop is expected to earn about
INR160 million per year from sale of specialty plastic granules;
this provides diversity to its revenue stream.
Toyop's financial risk profile has remained weak, marked by high
gearing and small net worth. The high gearing has been primarily
because of working-capital-intensive operations and debt-funded
capital expenditure of INR203 million toward purchase of windmills
in 2008-09 and 2009-10, with current total capacity of 3.6MW.
Moreover, Toyop's liquidity, marked by small cash accruals and
high utilisation of fund-based limits, has been constrained by the
company's large working capital requirements and term debt
obligations.
Toyop reported a profit after tax (PAT) of INR12.5 million on net
revenues of INR317.6 million for 2009-10, against a PAT of INR24.8
million on net revenues of INR309.1 million for 2008-09.
About Toyop Relief
Incorporated in April 2008 and promoted by Mr. Sachin Shah, Toyop
acquired the business of Sabra Exim Investments, which was set up
in 1994. Toyop supplies disaster relief material, including
kitchen accessories, plastic toiletries, and tarpaulin tents, to
NGOs and multilateral agencies. It also imports and trades in
power tillers.
Toyop set up a 1.5-MW windmill, which commenced operations in
April 2009, in Jodhpur (Rajasthan). The company set up another
windmill, of 2.1 MW, which commenced operations in April 2010, in
Jaisalmer (Rajasthan). The company has entered into a 20-year
power purchase agreement with Rajasthan Vidyut Vitran Nigam Ltd
for sale of power generated by both the windmills.
UNITECH LIMITED: Fitch Puts B- Rating to 'Non-Monitored' Category
-----------------------------------------------------------------
Fitch Ratings has migrated India's Unitech Limited's 'B-(ind)'
National Long-Term rating to the "Non-Monitored" category. The
rating was earlier placed on Rating Watch Positive. The rating
will now appear as 'B-(ind)nm' on Fitch's website.
Simultaneously, the agency has classified these bank loan ratings
as "Non-Monitored":
-- INR5,000m, INR20,000m and INR19,000m long-term debt
programmes: migrated to 'B-(ind)nm' from 'B-(ind)/RWP';
-- INR5,000m and INR6,000m short-term debt programmes: migrated
to 'F4(ind)nm' from 'F4(ind)/RWP';
-- INR1,000m short-term bank loan programme: migrated to
'F4(ind)nm' from 'F4(ind)/RWP'; and
-- INR3,000m non-fund based bank limits: migrated to 'F4(ind)nm'
from 'F4(ind)/RWP'.
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 Unitech. 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 re-activated and will be communicated
through a "Rating Action Commentary".
VIKRANT FORGE: Fitch Assigns 'BB-' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings has assigned India's Vikrant Forge Limited a
National Long-Term rating of 'BB-(ind)' with a Stable Outlook.
The agency has also assigned ratings to VFL's bank loans:
-- INR33m outstanding long term loans: 'BB-(ind)';
-- INR220m fund-based limits: 'BB-(ind)'; and
-- INR60m non-fund based loans: 'F4(ind)'.
The ratings reflect VFL's moderate financial profile (standalone
net debt/EBITDA: 4.5x at FYE10), long track record of over 25
years in the domestic forging industry and a strong customer base.
The ratings are however constrained by the fact that VFL has
extended corporate guarantees for the bank facilities of its
sister concern - Arcvac Forgecast Ltd. Moreover, VFL has a capex
plan of INR410m in FY12, mainly for the expansion of its finished
machined production capacity, which the company expects to be
funded with a debt-equity mix of 2:1.
VFL sources most of its raw material requirements from AFL, which
gives it a competitive advantage in terms of raw material
availability and prices.
An improvement in VFL's standalone net leverage to below 3x would
be positive for its ratings. Conversely, deterioration in
standalone net leverage to beyond 5x would lead to a negative
rating action.
Incorporated in 1985, VFL is engaged in the manufacturing of open
die forgings. In FY10, it reported net sales of INR759.6 million
(FY09: INR858.5 million) and EBITDA margin of 9.4% (FY09: 7.4%).
VFL's off-balance sheet debt (on account of the corporate
guarantees) stood at INR607.9 million at FYE10.
=================
I N D O N E S I A
=================
DAVOMAS ABADI: Moody's Reviewing 'Caa3' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has placed PT Davomas Abadi Tbk's Caa3
corporate family rating on review for possible upgrade.
"The potential acquisition of 51.9% stake in Davomas by P.T.
Uniflora Prima ((P)B2/stable) and the planned full redemption of
Davomas' senior secured notes due 2011 and 2014 are positive for
the rating," says Ken Chan, a Moody's Vice President.
"The successful completion of the potential transaction should
materially improve Davomas credit profile," says Chan, adding,
"Moreover, Davomas has been gradually ramping up its production
lines since the middle of last year, subsequent to the production
halt in the financial crisis."
In its review, Moody's will focus on the eventual capital
structure of Davomas post-completion of the transaction, and the
sustainability of its operating performance.
Established in 1990 and listed on the Jakarta Stock Exchange since
1994, PT Davomas Abadi Tbk is one of the dominant producers and
exporters of cocoa butter and cocoa powder in Indonesia.
UNIFLORA PRIMA: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has assigned a provisional B2 corporate
family rating to P.T. Uniflora Prima. At the same time, a
provisional B2 senior secured bond rating has been assigned to the
proposed senior secured notes issued by Uniflora Prima
International Pte. Ltd., an entity wholly-owned and guaranteed by
Uniflora.
The outlook on both ratings is stable.
This is the first time Moody's has assigned ratings to Uniflora or
Uniflora Prima International Pte. Ltd. The provisional status of
the ratings will be removed upon completion of the bond issuance
and the acquisition of the stake in P.T. Davomas Abadi Tbk
("Davomas"; Caa3).
Uniflora plans to acquire a 51.9% stake in Davomas, with proceeds
from a mandatory convertible bond of US$77 million, which will be
automatically converted into shares of Uniflora upon issuance of
the proposed senior secured notes.
The proceeds from the bond issue will be used to fund (1)
expansion at Uniflora; (2) a mandatory tender offer for the rest
of Davomas' shares, with any unutilized amount used for the
repayment of a US$33 million subordinated shareholder loan
provided to Davomas for working capital purposes, pursuant to its
debt restructuring exercise in 2009; (3) the full redemption of
Davomas' senior secured notes due 2011 and 2014; and (4) working
capital and general corporate purposes.
Ratings Rationale
Uniflora's provisional B2 rating reflects its position as the
leading producer of cocoa butter and cocoa powder in Indonesia
after acquiring Davomas, albeit its small scale.
"After the acquisition, Uniflora will be the largest cocoa butter
and cocoa powder producer in Indonesia," says Alan Greene, a
Moody's Vice President and Senior Credit Officer.
The rating also reflects Uniflora's competitive cost structure
given its lower labor and transportation costs by international
standards, and that it sources its feedstock directly from
farmers, bypassing the middleman.
The Indonesian government's introduction of an export tax of up to
15% on cocoa beans in April 2010, should benefit Uniflora as it
becomes more cost-efficient for foreign cocoa processors to
purchase intermediate cocoa products, as compared to raw cocoa
beans, which are now subject to this export tax.
Uniflora's key challenge includes its exposure to commodity
cycles, leading to earnings and cash flow volatility, although
this can be partially mitigated by its strategy to match its sales
orders with cocoa bean purchases to lock-in profits. Moody's is
also concerned with the transparency and corporate governance of
Uniflora given its private company status.
"The rating also recognizes the company's limited track record,
high degree of customer concentration risk, and the lack of
diversification given it operates on two sites, sources its
feedstock entirely from Indonesia, and is involved only in the
cocoa beans processing business," says Greene, who is also Moody's
Lead Analyst for Uniflora.
Uniflora began the production of cocoa butter and cocoa powder
only in June 2010 and operated at 82% capacity over six months of
operation in FY2010.
The rating also takes into consideration of Davomas' credit
profile, which is reflected in its Caa3 rating. Davomas is
currently recovering from the economic downturn, after a seven-
month suspension of its operations from May to December 2009 in an
effort to conserve cash due to significant losses from the
stocking up of high-cost feedstock, customer cancellations and
steep discounts on its products amidst weak economic conditions.
In addition to the guarantee from Uniflora, Davomas will also
provide a partial guarantee to the proposed senior secured notes
after (1) the redemption of Davomas' existing senior secured notes
due 2011 and 2014; and (2) the completion of the purchase of the
51.9% stake in Davomas by Uniflora.
The amount of guarantee provided by Davomas will be limited to the
amount of intercompany loan provided to fund (1) the redemption of
Davomas' existing 2011 and 2014 senior secured notes, together
with any fees or expenses incurred; and (2) the repayment of all
or a portion of the US$33 million shareholder loan provided to
Davomas from the SPV, with funds remaining after the mandatory
share tender offer. The amount of guarantee from Davomas will
decrease as the intercompany loan is repaid.
The stable outlook reflects the expectation that cocoa bean prices
will stabilize over the next one to two years and Uniflora will be
able to increase its production and expand its operations as
planned.
Upward rating pressure could develop if Uniflora (1) establishes a
longer track record in the cocoa grinding industry, strengthens
its corporate governance and adheres to internal operational
guidelines; (2) expands and diversifies its customer base; and (3)
maintains its financial and liquidity profiles while financial
flexibility improves with sufficient headroom under its financial
covenants.
Downward pressure could develop if Uniflora's industry
fundamentals deteriorated, resulting in protracted weakness in
profitability, such that EBITDA margin remains below 20%, or if
Uniflora increases its debt leverage, which could arise from new
acquisitions, substantial capex and/or shareholder returns. Such
pressure may be evidenced by EBITA/Interest below 2.5x and
debt/EBITDA above 5.0-6.0x.
Uniflora is a private company and one of Indonesia's largest
producers of cocoa butter and cocoa powder. The company's
production facilities are located in Serang, Banten Province,
Indonesia, and include six production lines with a total
production capacity of 120,160 tonnes per annum. After acquiring
Davomas, the group will have an aggregate production capacity of
261,280 tonnes per annum.
UNIFLORA PRIMA: S&P Assigns 'B-' Long-Term Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B-' long-term corporate credit rating to Indonesia-based cocoa
processor PT Uniflora Prima. The outlook is stable. At the same
time, S&P assigned its 'B-' issue rating to the proposed issue of
about US$300 million-US$400 million in fixed-rate, five-year
senior secured notes by Uniflora Prima International Pte. Ltd., a
Singapore-based special purpose vehicle. Uniflora unconditionally
guarantees the notes. The rating on the notes is subject to S&P's
review of the final issuance documentation.
"S&P believes Uniflora's small customer base exposes it to
significant counterparty risks that long-term contracts with some
customers do not offset. Uniflora's limited product
diversification is also likely to leave it vulnerable to
volatility in intermediate cocoa product prices," said Standard
& Poor's credit analyst Xavier Jean. "In S&P's view, the proposed
acquisition of PT Davomas Abadi Tbk. (CCC+/Negative), an
Indonesian competitor, would only slightly enhance Uniflora's
business risk profile. This is because the two companies have
similar customers, products, and asset characteristics. Uniflora
aims to acquire a 51.9% to 79.7% stake in Davomas in a proposal
that includes a mandatory share tender offer."
Uniflora's risk tolerance is increasing. The company intends to
use proceeds of the proposed notes to acquire Davomas, and
increase its own production capacity by two-thirds in the next
year. In S&P's opinion, any slippage in project execution or
softer demand for cocoa products in 2012 will materially affect
Uniflora's projected financial performance.
S&P believes Uniflora would strengthen its strong domestic market
share if the Davomas acquisition proceeds as Uniflora plans. S&P
considers Uniflora's competitive advantage in sourcing raw
materials and the positive industry outlook for 2011 as additional
rating support.
In S&P's view, Uniflora's liquidity is adequate. As of Dec. 31,
2010, the company had a cash balance of Indonesian rupiah 96.7
billion and no debt. If the proposed Davomas transaction proceeds
as Uniflora expects, S&P anticipates that the company will have a
cash balance of about IDR400 billion and generate funds from
operations of about IDR700 billion by the end of 2011. These
should be sufficient to meet working capital requirements, in
S&P's opinion.
Uniflora plans to fund its capital expenditure in the next year
with proceeds from the proposed notes, and with operating cash
flows thereafter. Neither Uniflora nor Davomas will have short-
term debt repayment requirements until April 2013, when Davomas is
required to pay the first principal amount of its shareholder loan
to Uniflora Prima International. Standard & Poor's understands
that Uniflora has no other committed or uncommitted credit
facilities from banks.
"The stable outlook reflects S&P's view that Uniflora will
maintain its strong competitive position in the Indonesian cocoa
processing sector and its cost advantage over peers. It also
assumes the proposed transaction with Davomas will proceed as
Uniflora's management expects," said Mr. Jean.
S&P believes an upgrade of Uniflora is unlikely in the next 12
months, given its significant customer and product concentration,
and the inherent cyclicality of the cocoa processing industry.
S&P could, nevertheless, revise the outlook to positive if:
Uniflora executes its expansion plan so that its market position
and cost competitiveness strengthen, in S&P's view; or Management
develops a substantially more established track record. S&P
believes this will be difficult to achieve under the timeframe of
the rating outlook.
S&P could revise the outlook to negative if:
* The proposed transaction with Davomas does not proceed;
* Uniflora's financial risk profile weakens, such that EBITDA
interest coverage falls below 1x. S&P believes this could
materialize if Uniflora loses a major customer or if demand for
intermediary cocoa products is weaker than S&P expect; or
* Uniflora's liquidity weakens because its free operating cash
flows become negative or because its proposed organic capital
expenditure plan is delayed.
The rating on Uniflora could face a multiple-notch downgrade if
the guarantee from Davomas to service its share of the proposed
notes or the inter-company loan between the SPV and Davomas is
delayed or cannot be delivered. In S&P's view, this would
effectively prevent the issuer from accessing the cash flows
Davomas' operations generate and would result in heightened
financial risk for Uniflora.
=========
J A P A N
=========
ACOM CO: Moody's Downgrades Long-Term Issuer Rating to 'Ba3'
------------------------------------------------------------
Moody's Japan K.K. has downgraded the long-term issuer and senior
unsecured debt ratings of ACOM Co., Ltd. to Ba3 from Baa3. The
ratings outlook is negative.
This rating action concludes the review for possible downgrade
initiated on Dec. 14, 2010.
Rating Rationale
The rating downgrade reflects Moody's growing concerns regarding
the deterioration in the operating environment triggered by the
bankruptcy of Takefuji Corporation. In Moody's view, the
Takefuji's bankruptcy will undermine ACOM'S current risk tolerance
for rising overpaid-interest claims by the overlap in customers
with Takefuji.
In addition, there are still uncertainties regarding future
claims. In Moody's view, the company has sufficient reserves
(risk coverage) to absorb overpaid interest-related losses for at
least another year. However, the risk coverage thereafter will be
inadequate to cover any other losses or support the current
rating. ACOM will need a substantial amount of time to stabilize
its bottom-line profits and to replenish capital.
The downgrade also reflects Moody's re-consideration of the
support from ACOM's parent company, the Mitsubishi UFJ Financial
Group, as well as the concern that the persistent and severe
operating environment will result in further deterioration in
ACOM's operating franchise and operating revenues and profits for
the foreseeable future.
Although ACOM's funding environment has not been very pressured,
the company has increasingly relied on the members of its parent
banking group, mainly subsidiary banks The Bank of Tokyo
Mitsubishi UFJ and Mitsubishi UFJ Trust Bank.
But such persistent deterioration in the operating environment and
negative pressure on ACOM's financial fundamentals could result in
an additional burden on the parent and undermine MUFG's ability to
provide the same high level of support.
In Moody's view, incorporating a high support level into ACOM's
ratings would be unwarranted because of the lack of tangible
evidence of support, such as a guarantee or keep-well letter from
MUFG -- other than ACOM's consolidated status and business
integration with MUFG, specifically in the guarantee business.
The ratings outlook is negative, due to the considerable
uncertainty in the outlook for the company, as well as concerns
that the stabilization of operations may be further delayed if
overpaid interest claim payouts remain high.
Downward pressure could result if (1) the high losses related to
overpaid-interest do not decline and the company is unable to
stabilize revenue and operating profits by FYE 3/2013; or 2)
balance sheet liquidity declines because of increased refinancing
risk.
Rating pressure will emerge if ACOM's cash, undrawn committed bank
lines, and expected operating cash flow are insufficient to cover
its maturing debt and overpaid interest claims over the next 12
months.
A change in the parent banking group's willingness to provide
support would also have a material negative impact on ACOM's
rating, and lead to a multiple-notch rating change.
The Ba3 rating outlook may revert to stable on clear signs that
overpaid interest claims are finally declining, or if the company
can stabilize its asset base, generate revenue growth, and improve
its operating profitability, even if only gradually.
Moody's last rating action with respect to the ACOM was taken on
Dec. 14, 2010, when the long-term issuer and unsecured debt
ratings were placed on review for possible downgrade.
ACOM Co. Ltd., headquartered in Tokyo, is a major Japanese
consumer finance company, with consolidated assets of around
JPY1.4 trillion as of Dec. 31, 2010.
PROMISE CO: Moody's Downgrades Long-Term Issuer Rating to 'B1'
--------------------------------------------------------------
Moody's Japan K.K. has downgraded the long-term issuer and senior
unsecured debt ratings of Promise Co., Ltd. to B1 from Ba1. The
ratings outlook is negative.
This rating action concludes the review for possible downgrade
initiated on Dec. 14, 2010.
Rating Rationale
The rating downgrade reflects Moody's growing concerns regarding
the deterioration in the operating environment triggered by a
bankruptcy of Takefuji Corporation. In Moody's view, the
Takefuji's bankruptcy will undermine Promise's current risk
tolerance for rising overpaid-interest claims by the overlap in
customers with Takefuji.
In addition, there are still uncertainties regarding future
claims. In Moody's view, the company has sufficient reserve (risk
coverage) to absorb overpaid-interest related losses for at least
another year. However, the risk coverage thereafter will be
inadequate to cover any other expected losses or support the
current rating. Promise will need a substantial amount of time to
stabilize its bottom-line profits and to replenish capital.
The downgrade also reflects Moody's reconsideration of support
from Promise's parent bank, Sumitomo Mitsui Banking Corporation as
well as the concern that the persistent and severe operating
environment will result in further deterioration in Promise's
operating franchise and operating revenues/profits in the
foreseeable future.
Although Promise's funding environment has not been largely
pressured, the company has increasingly relied on the parent bank,
SMBC.
But such persistent deterioration in the operating environment and
negative pressure on Promise's financial fundamentals could result
in an additional burden on the parent and undermine SMBC's ability
to provide the same high level of support.
In Moody's view, incorporating a high support level into Promise's
rating would be unwarranted because of the lack of tangible
evidence of support, such as guarantee or keep-well letter from
SMBC -- other than Promise's affiliate status and business
integration with SMBC, specifically in the guarantee business.
The ratings outlook is negative, due to the considerable
uncertainty in the outlook for the company, as well as concerns
that the stabilization of operations may be further delayed, if
overpaid interest claims payouts remain high.
Downward pressure, could result if 1) the high losses related to
overpaid-interest claims do not decline and the company is unable
to stabilize revenue and operating profits by FYE 3/2013; or 2)
balance sheet liquidity declines because of increased refinancing
risk.
Rating pressure will emerge if Promise's cash and expected
operating cash flow are insufficient to cover its maturing debt
and overpaid interest claims over the next 12 months.
A change in the parent banking group's willingness to provide
support would also have a material negative impact on Promise's
rating, and lead to a multiple notch rating change.
The B1 ratings outlook may revert to stable on clear signs that
overpaid interest claims are finally declining, or if the company
can stabilize its asset base, generate revenue growth, and improve
its operating profitability, even if only gradually.
Moody's last rating action with respect to the Promise was taken
on December 14, 2010, when the long-term issuer and unsecured debt
ratings were placed on review for possible downgrade.
Promise Co. Ltd., headquartered in Tokyo, is a major Japanese
consumer finance company, with consolidated assets of around
JPY1.2 trillion as of Dec. 31, 2010.
TOKYO ELECTRIC: Shareholders to Face Losses Amid Nuclear Crisis
---------------------------------------------------------------
Bloomberg News reports that Tokyo Electric Power Co.'s
shareholders may be wiped out by clean-up costs and liabilities
stemming from the worst nuclear accident since Chernobyl.
Bloomberg relates that Bank of America Merrill Lynch said the
company faces claims of as much as JPY11 trillion ($132 billion),
if the crisis lasts two years, that could lead to nationalization.
According to Bloomberg, investors, including Mitsushige Akino and
Edwin Merner, also said shareholders should brace for further
losses.
Bloomberg notes that Tokyo Electric has tumbled 78%, the worst
performer on the MSCI World (MXWO) Index, since the March 11
earthquake and tsunami knocked out cooling systems at the
Fukushima Dai-Ichi nuclear plant, causing radiation to leak.
Should the crisis persist, according to Merrill, the company may
be unable to repay bondholders and could be taken over by the
government, Bloomberg says.
"Some sort of capital reduction or dilution is inevitable
depending on the degree of shareholder responsibility," Bloomberg
quoted Mr. Akino, who oversees about $450 million in Tokyo at
Ichiyoshi Investment Management Co., not including Tokyo
Electric's stock, as saying. "It's not yet clear whether it will
be down to zero or just halved, but it won't be what it is now."
The company, valued at JPY3.5 trillion before the 9-magnitude
earthquake struck northeastern Japan, is now valued at about
JPY800 billion, Bloomberg discloses.
Bloomberg quoted Osamu Yokokura, a spokesman at the utility known
as Tepco, as saying that, "We are aware that compensation may be
huge and haven't decided how to make the payment." He declined to
comment on Merrill's estimate, Bloomberg says.
Yusuke Ueda, a credit analyst at Merrill, wrote in a report
March 29 that under the "worst-case" scenario, Tepco would be
unable to absorb the losses even after a capital reduction and
debt-to- equity swap of state-guaranteed debt. The utility may
face claims of less than 1 trillion yen if the crisis is resolved
within two months and as much as 3 trillion yen if it takes about
six months, Mr. Ueda wrote.
Should claims reach JPY10 trillion to JPY11 trillion, bankruptcy
laws may be invoked; but still, it's "very unlikely" Tepco will go
bankrupt because of its importance as a provider of electricity,
Mr. Ueda wrote.
Dai-Ichi Life Insurance Co., Tepco's second-largest shareholder
after Japan Trustee Services Bank Ltd., owns 55 million shares, or
a 3.4% stake, according to shareholding data compiled by
Bloomberg.
About TEPCO
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
====================
N E W Z E A L A N D
====================
GENEVA FINANCE: Investors Accept Debt-for-Equity Swap
-----------------------------------------------------
Rebecca Stevenson at BusinessDay.co.nz reports that Geneva Finance
investors have thrown the company a lifeline, agreeing to swap
$4.4 million subordinated debt for shares in the company valued at
5 cents apiece.
According to BusinessDay.co.nz, over 90% of shareholders and 79.5%
of noteholders on Thursday voted in favor of the finance company's
debt-for-equity swap which will see them hand in their notes for
more than 185 million shares in the company.
A 75% acceptance was needed for the deal to go through,
BusinessDay.co.nz notes.
BusinessDay.co.nz says noteholders will receive 20,000 shares for
each $1000 of notes held with a total of 88,747,940 shares being
issued. Debenture holders will get the same deal, 20,000 shares
for each $1000, with a total of 97,420,551 shares issued, and they
have until April 8 to decide.
Currently Geneva Finance has 80,539,176 shares on issue.
When the deal is completed, says BusinessDay.co.nz, noteholders
will hold just over 50% of Geneva Finance's stock.
About Geneva Finance
Geneva Finance Limited -- http://www.genevafinance.co.nz/--
provides finance and financial services to the consumer credit
and small to medium business markets. The company provides hire
purchase finance and personal loans secured by registered
security interests over personal assets such as motor vehicles,
household goods and residential property. Geneva Finance's
loans are originated through three distribution channels
(Direct, Retail and Dealer), processed by the central sales desk
and mobile sign-up managers then administered through a national
operations centre located at Mt Wellington, Auckland.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
March 23, 2011, Standard & Poor's Ratings Services said it has
lowered its long-term counterparty credit rating on New Zealand
finance company Geneva Finance Ltd. to 'CC' from 'CCC' and placed
its rating on Geneva on CreditWatch with negative implications.
At the same time, Standard & Poor's lowered its insurer financial
strength rating on Geneva's captive insurer, Quest Insurance Group
Ltd., to 'CC' from 'CCC' and placed Quest's rating on CreditWatch
with developing implications.
PIKE RIVER: West Coast Mine to be Formally Put on Market Next Week
------------------------------------------------------------------
The New Zealand Press Association reports that Pike River Coal's
West Coast mine, in which 29 men died in November, is to be
formally put on the market next week.
NZPA, citing The New Zealand Herald, relates that receivers
PricewaterhouseCoopers said they wanted to have the damaged mine
sold by the end of June.
NZPA relates that receiver John Fisk said advice from the mine
rescue group was that it was still not safe to go into the mine.
According to NZPA, advertising for the mine will start in
Australia next week and companies that could be interested are
being contacted. About 120 different industry contacts are being
targeted, NZPA notes.
NZPA adds that state-owned Solid Energy has declared its interest
and said it was prepared to spend up to $100 million on a concept
plan to resume mining at Pike, inland from Greymouth.
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 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.
===========
T A I W A N
===========
CHINATRUST FINANCIAL: All Cash Deal Won't Affect Fitch's Ratings
----------------------------------------------------------------
Fitch Ratings says Chinatrust Financial Holding Company's proposed
all cash acquisition of MetLife Taiwan has no immediate impact on
the ratings of Chinatrust Group, including the non-operating
holding company and its subsidiaries. The transaction is
scheduled to be completed in H211, subject to regulatory
approvals.
Fitch expects the acquisition to only modestly increase financial
leverage at the holding company level with limited impact on the
group's financial profile, while the ratings of Chinatrust Group
have already factored in the possibility that it will pursue
modest diversification opportunities. The transaction, priced at
US$180m or about a 30% discount to MetLife Taiwan's reported net
asset value at end-2010, only represents around 5% of the group's
consolidated assets on a pro-forma basis. The acquisition is
likely to facilitate the group's strategy of diversifying revenue
and fee generation capability, although this may bring about
challenges including a potential cannibalization of its already
strong bankassurance sales through its existing open-platform
insurance product offering.
Although MetLife Taiwan's risk-based capital ratio of 205%, at
end-2010 was only marginally above the regulatory minimum of 200%,
the need for fresh capital is mitigated by its conservatively
invested asset portfolio and the low cost of its insurance
liabilities compared with peers in Taiwan.
Please see "Fitch Affirms Chinatrust Group Ratings", dated 23
March 2011, for an update of the group's credit profile.
Chinatrust Group's ratings are:
Chinatrust Financial Holding Company
-- Long-Term Foreign Currency IDR 'A', Outlook Stable;
-- Short-Term Foreign Currency IDR 'F1';
-- National Long-term rating 'AA+(twn)';
-- National Short-term rating 'F1+(twn)';
-- Individual rating 'B/C';
-- Support rating '5'; and
-- Support Rating Floor 'No Floor'.
Chinatrust Commercial Bank
-- Long-Term Foreign Currency IDR 'A', Outlook Stable;
-- Short-Term Foreign Currency IDR 'F1';
-- National Long-term rating 'AA+(twn)';
-- National Short-term rating 'F1+(twn)';
-- Individual rating 'B/C';
-- Support rating '3';
-- Support Rating Floor 'BB+';
-- Perpetual cumulative TWD subordinated bonds' National Long-
tem rating 'AA-(twn)';
-- Perpetual non-cumulative US$ subordinated bonds' Long-term
foreign currency rating 'BBB+';
-- Subordinated bonds' Long-term foreign currency rating 'A-'
and National Long-term rating 'AA(twn)';
-- Senior unsecured bonds' National Long-term rating 'AA+(twn)'.
Chinatrust Securities Co.
-- Long-Term Foreign Currency IDR 'A-', Outlook Stable;
-- Short-Term Foreign Currency IDR 'F1';
-- National Long-term rating 'AA(twn)', Outlook Stable;
-- National Short-term rating 'F1+(twn)';
-- Individual rating 'C/D'; and
-- Support rating '1'.
===============
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
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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.
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