/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120423.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 Monday, April 23, 2012, Vol. 15, No. 80 Headlines A U S T R A L I A GOLD COAST TITANS: Administration Delays Wind-Up Process C H I N A CDC CORP: China.com Wants Chapter 11 Case Dismissed CHINA 3C: Goldman Kurland Raises Going Concern Doubt CHINA TIANRUI: Moody's Assigns 'B1' Corporate Family Rating DECOR PRODUCTS: Posts US$2.6 Million Net Income in 2011 H O N G K O N G CHINA HEALTHCARE: Court to Hear Wind-Up Petition on May 2 EASTERN BEST: Court to Hear Wind-Up Petition on June 6 ELITE RISE: Creditors Get HK$180,292.12 Recovery on Claims FANTASIA HOLDINGS: Moody's Affirms 'B1' CFR; Outlook Stable FTE LOGISTICS: Creditors Get 67.2% Recovery on Claims HAPPY CHAIN: Court to Hear Wind-Up Petition on May 16 KINGDOM PRODUCTION: Court to Hear Wind-Up Petition on May 16 LUCKY EVER: Creditors to Meet on April 27 NICE THEME: Creditors' Proofs of Debt Due May 11 SING TAT: Court to Hear Wind-Up Petition on June 6 SONIC ENTERPRISES: Arboit and Blade Appointed as Liquidators TEH FENG: Court to Hear Wind-Up Petition on June 27 TEH FENG SHING: Court to Hear Wind-Up Petition on June 27 WAH YING: Creditors' Proofs of Debt Due May 11 WALI ELECTRICAL: Court to Hear Wind-Up Petition on May 2 WISDOM TECHNOLOGY: Court to Hear Wind-Up Petition on June 6 I N D I A AMBATTUR INFRA: CARE Rates INR15cr LT Loan at 'CARE BB+' CATMOSS RETAIL: CARE Raises Rating on INR61.98cr Loan to 'BB-' ELECTRA DISTRIBUTORS: CARE Rates INR11.5cr Loan at 'CARE BB+' GINNI REFRACTORIES: CARE Assigns 'CARE B+' Rating to INR10cr Loan MALLADI DRUGS: CARE Reaffirms 'BB+' Rating on INR115.19cr Loan NIRMAL LIFESTYLE: CARE Reaffirms 'BB+' Rating on INR17.10cr Loan R R ENGINEERING: Delay in Loan Servicing Cues CRISIL Junk Ratings SAVION CERAMIC: CARE Assigns 'B+' Rating to INR5.68cr LT Loan SHREE RAM: CARE Assigns 'CARE B+' Rating to INR7.74cr Loan SKM EGG: CARE Cuts Rating on INR46cr Loan to 'CARE BB-' SRINATH BUILDERS: CRISIL Reaffirms 'BB' Rating on INR90MM Loans TERRA INFRA: CARE Reaffirms 'CARE BB-' Rating on INR10cr Loan UKAY METAL: CRISIL Assigns 'CRISIL BB+' Rating to INR60MM Loans VAISHNO SALES: CRISIL Upgrades Rating on INR122.5MM Loan to 'BB-' J A P A N OLYMPUS CORP: Wins Shareholder Approval for New Board N E W Z E A L A N D CRAFAR FARMS: Sale Deal With Chinese Buyer Approved HANOVER FINANCE: Court of Appeal Upholds Asset Freezing Order X X X X X X X X * Moody's Says March Asian Liquidity Stress Index Deteriorated - - - - - ================= A U S T R A L I A ================= GOLD COAST TITANS: Administration Delays Wind-Up Process -------------------------------------------------------- Margie McDonald at The Australian reports that the Gold Coast Titans' decision to place its property arm into voluntary administration has temporarily delayed winding-up proceedings in the Federal Court. Reed Constructions Australia, which built the club's AUD20 million Centre of Excellence in Robina, adjacent to the Titans' NRL home ground, claims it is owed AUD1.04 million, The Australian relates. The Australian recalls that the construction company last month won the right to start wind-up proceedings against the embattled NRL club's property arm. According to the report, the winding-up proceedings were due to commence in the Federal Court in Brisbane on April 20 but the parties agreed to adjourn the matter until after the club can meet again with creditors in late May. The matter has been adjourned until June 1. "It takes the matter out of the hands of the court and into the hands of creditors," the report quotes Titans lawyer Ashley Tiplady as saying. The next step will be creditors meeting with KordaMentha and then voting on whether to accept what adminstrators can offer, the report notes. The Gold Coast Titans Property Trust (which is separate to the Football Club) was placed into voluntary administration on April 19, 2012. Gold Coast Titans said: "This move further shores up the viability and sustainability of the Football Club as it reduces significant debt within the Titans Group but also places creditors in a position to receive payments towards monies due to them. "The move to Voluntary Administration also assists in ensuring the settlement of the sale of the Centre of Excellence. It will not have any day-to-day impact on the Titans Football Club. The NRL was today advised of the club's decision. "Managing Director Michael Searle has been in discussions with the Administrators, Robert Hutson -- rhutson@kordamentha.com -- and Ginette Muller -- gmuller@kordamentha.com -- of KordaMentha, to put forward a Deed of Company Arrangement (DOCA) which will see creditors receive a far greater return on monies owing to them than if the Property Trust was to go into liquidation." ========= C H I N A ========= CDC CORP: China.com Wants Chapter 11 Case Dismissed --------------------------------------------------- BankruptcyData.com reports that China.com, owner of approximately 250,517 shares of CDC common stock, filed with the U.S. Bankruptcy Court a motion seeking to dismiss the CDC Chapter 11 case. They also filed a motion seeking to continue the Disclosure Statement hearing scheduled for April 26, 2012, until the Court considers the dismissal motion. According to BankruptcyData.com, China.com explains, "As set forth in greater detail in the Motion to Dismiss, which is incorporated herein by reference, China.com asserts that the Court lacks subject matter jurisdiction in this case to hear and finally determine the Remaining Shareholder Disputes. Furthermore, China.com submits that "cause" exists under 11 U.S.C. Section 1112(b) to dismiss the Debtor's bankruptcy case because no bankruptcy purpose will be served by continuing the case and out of deference to Cayman Islands law." The Court scheduled May 8, 2012 hearing on the matter. About CDC Corp. Based in Atlanta, CDC Corp. (Nasdaq: CHINA) -- http://www.cdccorporation.net/-- is the parent company of CDC Software (Nasdaq: CDCS). CDC Software is based dually in Shanghai, China, and Atlanta and produces enterprise software applications, IT consulting services, outsourced applications development and IT staffing. The company's owners include Asia Pacific Online Ltd., Xinhua News Agency and Evolution Capital Management. CDC Corporation, doing business as Chinadotcom, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011. James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA, in Atlanta, Georgia, serves as counsel. Moelis & Company LLC serves as its financial advisor and investment banker. Marcus A. Watson at Finley Colmer and Company serves as chief restructuring officer. The Debtor estimated assets and debts at US$100 million to US$500 million as of the Chapter 11 filing. The Official Committee of Equity Security Holders of CDC Corporation is represented by Troutman Sanders. The Committee tapped Morgan Joseph TriArtisan LLC as its financial advisor. CHINA 3C: Goldman Kurland Raises Going Concern Doubt ---------------------------------------------------- China 3C Group filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Goldman Kurland and Mohidin LLP, in Encino, California, expressed substantial doubt about China 3C Group's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses from operations for the past three years. "In addition, the Company's cash position substantially deteriorated from 2010." The Company reported a net loss of $52.84 million on sales of $61.02 million for 2011, compared with a net loss of $24.92 million on sales of $74.74 million for 2010. The Company's balance sheet at Dec. 31, 2011, showed $21.01 million in total assets, $7.65 million in total liabilities, and stockholders' equity of $13.36 million. A copy of the Form 10-K is available for free at: http://is.gd/UuqUjk Located in HangZhou City, Zhejiang Province, China, China 3C Group operated in five reportable segments. Yiwu Yong Xin Telecommunication Company, Limited, or "Yiwu," focuses on the selling, circulation and modern logistics of fax machines and cord phone products. Hangzhou Wang Da Electronics Company, Limited, or "Wang Da," focuses on the selling, circulation and modern logistics of cell phones, cell phones products, and digital products, including digital cameras, digital camcorders, PDAs, flash disks, and removable hard disks. Hangzhou Sanhe Electronic Technology Limited, or "Sanhe," focused on the selling, circulation and modern logistics of home electronics, including DVD players, audio systems, speakers, televisions and air conditioners. This entity ceased operation as of Dec. 31, 2011. Shanghai Joy & Harmony Electronics Company Limited, or "Joy & Harmony," focused on the selling, circulation and modern logistics of consumer electronics, including MP3 players, MP4 players, iPods, electronic dictionaries and radios. This entity ceased operation as of Dec. 31, 2011. Jinhua Baofa Logistic Company Limited, or "Jinhua," provides transportation logistics services to businesses. Jinhua operates primarily in Eastern China and covers many of the most developed cities in the Eastern China such as Shanghai, Hangzhou and Nanjing. CHINA TIANRUI: Moody's Assigns 'B1' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has assigned a first-time B1 corporate family rating to China Tianrui Group Cement Company Ltd (Tianrui Cement). Moody's has also assigned a provisional (P)B2 senior unsecured debt rating to Tianrui Cement for its proposed issuance of US- dollar-denominated senior unsecured notes. The ratings outlook is stable. The company plans to use the proceeds of the notes issuance to expand its business, refinance its existing bank debt, and for general corporate purposes. Moody's will remove the provisional status of the senior unsecured debt rating after reviewing the terms and conditions of the final bond indenture. Ratings Rationale "The B1 corporate family rating reflects Tianrui Cement's leading market position in Henan and Liaoning provinces, where we expect cement demand to remain firm due to the likely continuation of urbanization and industrialization over the next few years," says Jiming Zou, a Moody's Analyst. The rating considers the company's track record of improving its share in core markets and the ongoing consolidation of the cement industry that benefits large-scale cement producers such as Tianrui Cement. Its well-established market position will likely help improve its selling prices and profitability, given the likely consolidation in the cement industry in future. Tianrui Cement's operating margin improved to 23% in 2011, from an average of around 10% during 2008-2010, after the regional obsolete capacities were closed. Currently, its clinker facilities are operating at full-capacity utilization, supported by its established business network, efficient equipments, and secured raw material resources. "However, the company's rating is constrained by its volatile operating performance due to its limited pricing power in a still fragmented industry, the slowing macro economy, and rising energy costs, as well as the tightening regulatory environment for the cement industry in China," Zou adds. Its rating is also tempered by Moody's expectation that its debt leverage will increase from the current level, as the company pursues fast expansion through acquisitions. Tianrui Cement's business plan, which includes further acquisitions to improve its market share, will absorb a substantial level of cash flow generated in the next few years. In addition, business acquisitions also involve execution risks, including competing with financially stronger peers and securing long-term financing ahead of its acquisitions. Moody's expects the company's Debt/EBITDA to be in the range of 4.0x-5.0x in the next two to three years and which positions it in the single B range. The proposed bond issuance is likely to strengthen Tianrui Cement's liquidity profile. While the company funds its business mainly through short-term bank loans currently, it has so far managed to extend its short-term borrowings, given its established relations with local banks. The corporate family rating also reflects the company's short listing history and a limited track record of strong financial management. Tianrui Cement's senior unsecured debt rating is one notch lower than its corporate family rating, reflecting structural and legal subordination. Its domestic borrowings amounted to RMB7.0 billion and accounted for 40% of the total assets as of year-end 2011. This ratio will improve because of the bond issue but will still remain above 15%. The ratings outlook is stable, reflecting Moody's expectation that Tianrui Cement will maintain its current level of profitability in the near term, given the elimination of obsolete capacities. Moody's also expects the company to extend its short- term debt. An upgrade could be considered if the company further improves its market position, exhibits discipline in managing acquisitions, and grows its business operations with long-term capital. Resilience in business profitability and an improvement in debt leverage will be necessary for an upgrade. Upward rating pressure could develop, if Tianrui Cement is able to achieve the following credit metrics on a sustainable basis: operating margin of more than 20%, EBITDA/interest expense ratio of more than 4.0x, and Debt/EBITDA ratio of less than 3.5x-4.0x. A rating downgrade could be triggered by: (i) a significant loss of market share in its core market, (ii) a decline in the company's sales and/or profitability due to an adverse change in the local operating environment or cement price erosion, (iii) aggressive expansion, driven by debt-funded acquisitions or capital expenditures. Operating margin of less than 10%, EBITDA/interest expense ratio of less than 3.0x, or Debt/EBITDA ratio of more than 5.0x would trigger a downgrade. The principal methodology used in rating Tianrui Cement was the Global Building Materials Industry Methodology published in July 2009. China Tianrui Cement Group Cement Company Ltd is the largest cement producer in China's Henan and Liaoning provinces. The company had an annual clinker and cement production capacity of 22.25 million tons and 39.23 million tons, respectively, as of year-end 2011. It is one of the 12 national cement companies favored by the government to lead the industry consolidation. All of its clinker facilities employ modern New Suspension Preheater cement production technology and are equipped with a residual heat recovery system. As of 2011, sales amounted to RMB8.3 billion, of which about 70% was from Henan province. Tianrui Cement is listed in Hong Kong Stock Exchange with a market capitalization of HKD7.2 billion as of April 17, 2012. The company is 39.6% held by its Chairman Li Liufa and his son Li Xuanyu, 18.7% by Mr. Tang, 16.7% by KKR and 8.4% by JPMorgan. DECOR PRODUCTS: Posts US$2.6 Million Net Income in 2011 ------------------------------------------------------- Decor Products International, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income of US$2.67 million on US$19 million of net revenues in 2011, compared with net income of US$4.50 million on US$26.82 million of net revenues in 2010. The Company's balance sheet at Dec. 31, 2011, showed US$42.64 million in total assets, US$9.08 million in total liabilities and US$33.55 million in total stockholders' equity. For the year ended Dec. 31, 2011, HKCMCPA Company Limited, in Hong Kong, China, noted that the Company has made default in repayment of convertible notes and promissory notes that raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/OlgnyQ About Decor Products Decor Products International, Inc., through its subsidiaries, mainly engages in the manufacture and sale of furniture decorative paper and related products in the People's Republic of China. The Company is headquartered in Chang'an Town, Dongguan, Guangdong Province, between Shenzhen and Guangzhou in southern China. ================ H O N G K O N G ================ CHINA HEALTHCARE: Court to Hear Wind-Up Petition on May 2 --------------------------------------------------------- A petition to wind up the operations of China Healthcare Service Group Limited will be heard before the High Court of Hong Kong on May 2, 2012, at 9:30 a.m. Buro Happold International (Hong Kong) Limited filed the petition against the company Feb. 29, 2012. The Petitioner's solicitors are: Haley & Co 703-704, The Hong Kong Club Building 3A Chater Road Central, Hong Kong EASTERN BEST: Court to Hear Wind-Up Petition on June 6 ------------------------------------------------------ A petition to wind up the operations of Eastern Best Development Limited will be heard before the High Court of Hong Kong on June 6, 2012, at 9:30 a.m. DBS Bank (Hong Kong) Limited filed the petition against the company March 30, 2012. The Petitioner's solicitors are: Wilkinson & Grist 6th Floor, Prince's Building Chater Road Central, Hong Kong ELITE RISE: Creditors Get HK$180,292.12 Recovery on Claims ---------------------------------------------------------- Elite Rise Investment Limited, which is in compulsory liquidation, will declare the second and final return of capital to its creditors on April 30, 2012. The company will pay HK$180,292.12 for ordinary claims. The company's liquidators are: Kong Chi How Johnson Lo Siu Ki 25th Floor, Wing On Centre 111 Connaught Road Central, Hong Kong FANTASIA HOLDINGS: Moody's Affirms 'B1' CFR; Outlook Stable ----------------------------------------------------------- Moody's Investors Service has affirmed Fantasia Holdings Group Company Limited's B1 corporate family rating and B2 senior unsecured debt rating. The ratings outlook is stable. Ratings Rationale "Fantasia's better-than-expected results in 2011 highlight that its business strategy and sales execution have been appropriate for managing the challenges from regulatory measures," says Jiming Zou, a Moody's analyst. Fantasia's contract sales grew 80% in RMB terms from a year ago, driven by its regional focus in the Chengdu-Chongqing Economic Area and the Pearl River Delta, where it has developed much experience. It has a flexible and delicate approach in selling its properties and offers a range of price categories that cater to different customer groups. It also adjusts its product offering by increasing commercial properties to reduce the impact of the purchase restrictions on residential properties. Moreover, its policy is to hold a low level of investments properties in a down cycle in order to lessen capital requirements and conserve cash. Moody's expects Fantasia to largely sustain its sales performance in 2012. In the first quarter of 2012, Fantasia reported contract sales of RMB1 billion, on par with the prior year. Fantasia has also maintained a discipline approach in land acquisition. It has a small amount of land premium to pay in 2012 as it acquired only one piece of land in 2011. As a result of the disciplined land acquisition, Fantasia has not taken on additional debt. As of December 2011, its reported debt stood at RMB5.5 billion, unchanged from a year ago, and which was moderate when compared to its contract sales and book capital. Therefore, Fantasia has maintained sound credit metrics of EBITDA/interest of 4.6x and debt/total capitalization of 50% as of 2011. These credit metrics provide financial flexibility when additional debt is required. However, Fantasia's ratings are constrained by its geographic concentration, small business scale, and moderate debt leverage that are consistent with single-B rated peers. Fantaisa's weak liquidity also tempers its ratings. Its cash to short-term debt coverage ratio was below 1x as of December 2011. The stable outlook reflects Moody's expectations that Fantasia's financial profile will remain stable, its liquidity will be adequate, and that its expansion strategy will be measured. Upward pressure on its ratings could emerge if Fantasia can: 1) build up a track record in markets outside Chengdu and Shenzhen; 2) consistently achieve its sales targets; 3) maintain strong financial discipline, while implementing its growth strategy; and 4) maintain sound liquidity. Indicators of a possible upgrade include: EBITDA/interest coverage consistently above 4x-5x and adjusted debt/capitalization not exceeding 45%-50% on a sustained basis. The ratings could be downgraded if the company: (1) reports sales significantly short of Moody's expectations; (2) pursues aggressive land acquisitions or expansion activities that pressure its liquidity; or (3) fails to maintain disciplined financial management. Adjusted debt/capitalization consistently above 55%-60% and EBITDA/Interest coverage falling below 2.5x-3x would indicate a potential rating downgrade. The principal methodology used in these ratings was Moody's Global Homebuilding Industry, published in March 2009. Fantasia Holdings Group Company Limited is a property developer established in 1996; it listed on the Hong Kong Stock Exchange in November 2009. As of December 2011, it had a land bank of 8.3 million square meters of gross floor area, mainly in Chengdu and the Pearl River Delta. It develops high-end office buildings and residential properties, targeting small- and medium-sized enterprises and affluent individuals. FTE LOGISTICS: Creditors Get 67.2% Recovery on Claims ----------------------------------------------------- FTE Logistics International Limited will declare dividend to its preferential creditors on May 11, 2012. The company will pay 67.2% for preferential claims. HAPPY CHAIN: Court to Hear Wind-Up Petition on May 16 ----------------------------------------------------- A petition to wind up the operations of Happy Chain Industries Limited will be heard before the High Court of Hong Kong on May 16, 2012, at 9:30 a.m. Dah Sing Bank Limited filed the petition against the company March 13, 2012. The Petitioner's solicitors are: K.B. Chau & Co 23rd Floor, Wing On House 71 Des Voeux Road Central, Hong Kong KINGDOM PRODUCTION: Court to Hear Wind-Up Petition on May 16 ------------------------------------------------------------ A petition to wind up the operations of Kingdom Production Limited will be heard before the High Court of Hong Kong on May 16, 2012, at 9:30 a.m. Kingdom Power Development Limited filed the petition against the company March 14, 2012. The Petitioner's solicitors are: Messrs. Kelvin Cheung & Co Unit 101, 1st Floor Hong Kong Trade Centre 161-167 Des Voeux Road Central, Hong Kong LUCKY EVER: Creditors to Meet on April 27 ----------------------------------------- Creditors of Lucky Ever Limited will hold a meeting on April 27, 2012, at 10:30 a.m., at the office of FTI Consulting (Hong Kong) Limited, Level 22, The Center, at 99 Queen's Road Central, in Hong Kong. At the meeting, Fok Hei Yu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NICE THEME: Creditors' Proofs of Debt Due May 11 ------------------------------------------------ Creditors of Nice Theme Limited, which is in liquidation, are required to file their proofs of debt by May 4, 2012, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong SING TAT: Court to Hear Wind-Up Petition on June 6 -------------------------------------------------- A petition to wind up the operations of Sing Tat Apparels Company Limited will be heard before the High Court of Hong Kong on June 6, 2012, at 9:30 a.m. Excellent Source Limited filed the petition against the company March 27, 2012. The Petitioner's solicitors are: Messrs. Ma Tang & Co 3rd Floor, Chinese Club Building 21-22 Connaught Road Central, Hong Kong SONIC ENTERPRISES: Arboit and Blade Appointed as Liquidators ------------------------------------------------------------ Bruno Arboit and Simon Richard Blade on Dec. 16, 2011, were appointed as liquidators of Sonic Enterprises Limited. The liquidators may be reached at: Bruno Arboit Simon Richard Blade Level 22, The Center 99 Queen's Road Center Center, Hong Kong TEH FENG: Court to Hear Wind-Up Petition on June 27 --------------------------------------------------- A petition to wind up the operations of Teh Feng Shing Company Limited will be heard before the High Court of Hong Kong on June 27, 2012, at 9:30 a.m. Luk Pak Chuen filed the petition against the company April 10, 2012. The Petitioner's solicitors are: Wong, Fung & Company 10th Floor, Far East Consortium Building No. 121 Des Voeux Road Central, Hong Kong TEH FENG SHING: Court to Hear Wind-Up Petition on June 27 --------------------------------------------------------- A petition to wind up the operations of Teh Feng Shing (China) Company Limited will be heard before the High Court of Hong Kong on June 27, 2012, at 9:30 a.m. Luk Pak Chuen filed the petition against the company April 10, 2012. The Petitioner's solicitors are: Wong, Fung & Company 10th Floor, Far East Consortium Building No. 121 Des Voeux Road Central, Hong Kong WAH YING: Creditors' Proofs of Debt Due May 11 ---------------------------------------------- Creditors of Wah Ying Electronic Company Limited, which is in liquidation, are required to file their proofs of debt by May 11, 2012, to be included in the company's dividend distribution. The company's liquidators are: Kennic Lai Hang Lui Lau Wu Kwai King Lauren 5th Floor Ho Lee Commercial Building Central, Hong Kong WALI ELECTRICAL: Court to Hear Wind-Up Petition on May 2 -------------------------------------------------------- A petition to wind up the operations of Wali Electrical & Metal Factory Limited will be heard before the High Court of Hong Kong on May 2, 2012, at 9:30 a.m. Yook Tong Electric Company Limited filed the petition against the company April 11, 2012. The Petitioner's solicitors are: Wilkinson & Grist 6th Floor, Prince's Building Chater Road Central, Hong Kong WISDOM TECHNOLOGY: Court to Hear Wind-Up Petition on June 6 ----------------------------------------------------------- A petition to wind up the operations of Wisdom Technology Company Limited will be heard before the High Court of Hong Kong on June 6, 2012, at 9:30 a.m. China Resources Conic Company Limited filed the petition against the company March 30, 2012. The Petitioner's solicitors are: Chong & Partners 8/F, BOC Group Life Assurance Tower 136 Des Voeux Road Central, Hong Kong ========= I N D I A ========= AMBATTUR INFRA: CARE Rates INR15cr LT Loan at 'CARE BB+' --------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of Ambattur Infra Developers. Facilities (INR crore) Ratings ----------- ----------- ------- Long term Bank Facilities 15.00 'CARE BB+' Assigned Rating Rationale The rating is constrained by limited track record of operations of the company, loss making operations, low occupancy of the IT park, limited experience of the promoters in this line of business, risk of non-renewal of the lease agreements and the competition from various IT Parks/SEZ situated in and around Chennai. The rating however, factors in experience of promoters in various other businesses, revenue visibility from the existing lease agreements and favorable capital structure. Going forward, ability of the company to improve occupancy level at comfortable rentals is the key rating sensitivity. About Ambattur Infra Ambattur Infra Developers is a partnership firm established in March 2007 by Mr. Vijay M Mahtaney, Managing Partner, for the purpose of developing and leasing the IT park namely 'AMBIT IT Park' in Chennai. The total built up area of the AMBIT IT park is 10.90 lakh sq ft including office area and car/2-wheeler park area. Excluding the parking area total leasable area of this 10- floor IT park is 8.10 lakh sq ft. The IT Park is situated in Ambattur, a suburban area in the North West region of Chennai. Ambattur also has good road and local train connectivity and is located in close proximity to residential areas, schools and hospitals. AID is part of Chennai based Ambattur Clothing Group. The flagship company of the group, Ambattur Clothing Limited, is also one of the partners in AID. ACL is engaged in manufacturing and export of textile apparel. The group has business history of nearly three decades. Apart from Apparel the group has interests in real estate and hospitality business. During FY11 (refer to period April 01, 2010 to March 31, 2011), the company reported loss before tax of INR21 crore on total income of INR2 crore. In 9mFY12, the company generated total income of INR3.5 crore and reported loss before tax of INR11.4 crore (Prov.). CATMOSS RETAIL: CARE Raises Rating on INR61.98cr Loan to 'BB-' -------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Catmoss Retail Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 61.98 CARE BB- Revised from CARE B+ Rating Rationale The revision in the ratings takes into account the improvement in the operational and financial performance of the company during 9MFY12 (refers to period from April 1, 2010 to Dec. 31, 2011) and an improvement in the liquidity position of the company. The rating continues to derive strength from the experienced promoters, strong recall of 'Catmoss' brand in the kidswear segment and wide distribution network. The rating however continues to be constrained by the high working-capital intensive nature of business operations of Catmoss Retail Pvt Ltd, moderate gearing levels and competitive nature of the kidswear market in India. Going forward, CRPL's ability to sustain the growth and profitability in view of competitive pressures and its ability to effectively manage the operating cycle shall be the key rating sensitivities About Catmoss Retail Catmoss Retail Pvt Ltd is engaged in the manufacturing and retailing of kidswear apparels through a network of Exclusive Brand Outlets, distributors and Large Multi Brand Outlets with a pan-India presence. Apart from kidswear apparels, the company also trades in cotton sarees. CRPL currently has a capacity to produce 12,000 pieces per day and has a combined store network of about 207 exclusive stores and 413 counters in the LMBOs (till February 2012). Recent updates There has been an improvement in the performance of the company in 9MFY12 viz-a-viz the 9MFY11. The operating income in 9MFY12 has grown by about 37% over 9MFY11 due to higher volume sold backed by increase in the number of stores and better sales realizations. Further during 9MFY12 the company reported a total operating income of INR190.9cr with a PBILDT and PAT of INR32.9cr and INR15.3cr respectively. Though the PBILDT margin has reduced marginally from 17.7% in 9MFY11 to 17.2% in 9MFY12, the PAT margins stood at 8.0% for 9MFY12 up from the levels of 6.8% achieved in 9MFY11. The improvement in margins was attributable to the company's growing focus on the kidswear segment which has better margins coupled with lower interest outgo due to declining loan on its books. Further, the overall gearing has also seen an improvement to 0.43x as on December 31, 2011 due to the second tranche of equity infusion of Rs 30cr from SAIF partners in October 2011. The equity infusion coupled with decrease in the overall debt has helped in the improvement of the overall gearing for the company. ELECTRA DISTRIBUTORS: CARE Rates INR11.5cr Loan at 'CARE BB+' ------------------------------------------------------------- CARE assigns 'CARE BB+' and 'CARE A4' to the bank facilities of Electra Distributors Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11.50 CARE BB+ Assigned Short-term Bank Facilities 3.50 CARE A4 Assigned Rating Rationale The ratings assigned by CARE are constrained due to low profitability margins, small networth base and high gearing levels. The ratings are further constrained on account of the inherent risk associated with FMCG segment and the high working capital requirements of the business. However, the ratings derive strength from the long track record of operations, diversified business operations and sole distributorship for reputed companies in its area of operation. Ability to manage cash flow in the event of increase in interest rates is the key rating sensitivity. About Electra Distributors Electra Distributors Private Limited is engaged in distribution of industrial products and Fast Moving Consumer Goods segment since 1993, with its offices located at Faridabad and Delhi. The company operates in three verticals viz, industrial goods (which accounted for 15% during FY11 in EDPL's total income), FMCG products (85%). In the industrial vertical, the company is the sole distributor for Tata Steel and Lincoln Electric for their Mig Welding Wires for northern India comprising the states of J&K, NCR, Punjab, Himachal Pradesh, Haryana, Rajasthan and eastern UP. Within the FMCG vertical, the company is the sole distributor for Hindustan Unilever Limited (HUL) and Marico Ltd for the region of South Delhi and Faridabad. Further during FY11 (refers to period from April 01 to March 31), company has also diversified into the telecom business and is currently the sole distributor for Airtel products in South Delhi. As per audited results of FY11, EDPL reported PAT of INR0.28 crore (FY10: INR0.22) on total operating income of INR64.38 crore (FY10: INR57.39). GINNI REFRACTORIES: CARE Assigns 'CARE B+' Rating to INR10cr Loan ----------------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facility of Ginni Refractories Pvt. Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facility 10.0 CARE B+ Assigned Rating Rationale The rating of Ginni Refractories Pvt. Ltd. is primarily constrained due to its short track record coupled with small scale of operations, price volatility of raw materials, high customer concentration, pricing constraints arising out of dependence on large refractories leading to low profitability margins and project risk. The rating, however, derive strength from the experience of promoter, strategic location of the plant and reputed client base. Ability of the company to increase its scale of operations with simultaneous improvement in profitability and timely completion of the expansion project without any cost overrun will be the key rating sensitivities. GRPL was incorporated in the year 2000 as a partnership firm called 'Shree Ram Steel Industries. In July 2008, Shree Anand Agarwal, managing partner in SRSI acquired the whole operations and reconstituted it as a private limited company with the present name. GRPL is engaged in manufacturing of refractory grogs to sell it to the brick making refractory units which in turn find application in steel and cement industries. The production of grogs had started in April, 2009 at its plant located at Jourmal (Orissa) having an installed capacity of 12,000 metric tonnes per annum (MTPA). Later in April 2011, the second unit (at Lamloi, Orissa) of the company came into existence having an installed capacity of 18,000 MTPA (12000 MTPA for grogs and 6000 MTPA for grinded materials); thereby increasing the company's total installed capacity to 30,000 MTPA. In FY11 (refers to the period April 1 to March 31), GRPL reported PBILDT of INR0.8 crore (INR0.5 crore in FY10) and PAT (after deferred tax) of INR0.2 crore (INR0.1 crore in FY10) on total income of INR31.2 crore (INR21.4 crore in FY10). MALLADI DRUGS: CARE Reaffirms 'BB+' Rating on INR115.19cr Loan -------------------------------------------------------------- CARE reaffirms the ratings assigned to the enhanced bank facilities of Malladi Drugs And Pharmaceuticals Limited. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 115.19 CARE BB+ (enhanced from INR 106.19 cr) Reaffirmed Short-term Bank Facilities 18.20 CARE A4 Reaffirmed Rating Rationale The ratings continue to be constrained by the financial profile of MDPL characterized by high level of debt in relation to cash accruals, controlled nature of the products and consequent impact on market growth, decline in profitability of MDPL during FY11 (refers to the period April 1 to March 31) and 9MFY12 and continued poor performance of Novus. The rating also takes into account MDPL's leading position in the manufacturing of Ephedrine and Pseudo Ephedrine, its established track record of operations, USFDA approved and CGMP certified manufacturing facilities and presence of tie-ups for contract manufacturing. Ability of the company to diversify the product portfolio, improve profitability and successful recovery of investments in Novus would be the key rating sensitivities. About Malladi Drugs MDPL was founded by the late Mr. M.L.N.Sastry, a microbiologist, in 1980 and was promoted as a Joint Venture company along with Tamil Nadu Industrial Development Corporation for manufacture of Ephedrine and its salts. MDPL is a manufacturer of Active Pharmaceutical Ingredients (APIs) in the cough and cold segment along with very limited presence in other therapeutic segments like Antihistamines, Anti-convulsants, Anti-depressants and Anxiolytics of the Pharmaceutical industry. The major products manufactured by the company include Ephedrine, Pseudo Ephedrine, Phenylephrine, Phenyl Propanolamine and Cyclin (Intermediate). MDPL has a wholly-owned subsidiary in USA, Novus Fine Chemicals LLC (Novus) which is primarily into manufacture of pseudoephedrine. The company also had investments in another subsidiary Tantech Agrochemicals Ltd, a Chennai-based chemical manufacturer. For the year ended March 31, 2011, MDPL posted a PAT of INR5 cr on a total income of INR196 cr. For the nine months ended December 2011 (Provisional), MDPL posted a PAT of INR0.9 cr on a total income of INR131 cr. NIRMAL LIFESTYLE: CARE Reaffirms 'BB+' Rating on INR17.10cr Loan ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Nirmal Lifestyle Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long/Short term Bank 17.10 CARE BB+/CARE A4 Facilities Reaffirmed Rating Rationale The ratings continue to be constrained by considerable debt availed so far and considerable sales required in meeting project funding as well as debt obligations. The ratings are further constrained by inherent project execution risk and cyclical nature of the industry. The ratings, however, derive strength from NLL's good brand image in the Mulund region, the company's experienced management, high operating margins due to low cost of land and availability of land bank in eastern suburbs having considerable development potential. The ratings also factor in repayment of part of the existing loan through lease rentals from Phase I of the operational mall at Mulund. The ability of NLL to mobilize required funds for the projects, execute the projects as scheduled and sell at envisaged rates remain the key rating sensitivities. About Nirmal Group The Nirmal Group was founded by Late Shri S P Jain in the late 80s and is one of the established developers in Eastern Mumbai. Nirmal Lifestyle Limited is the flagship company of the group. The company undertakes residential & commercial construction activities either at a standalone level or through various subsidiaries and joint ventures (JVs). Currently, NLL has eleven ongoing projects with total saleable area of 6.61 million square feet. During FY11 (refers to period from April 1 to March 31), NLL reported total income of INR222 crore and PAT of INR10 crore. R R ENGINEERING: Delay in Loan Servicing Cues CRISIL Junk Ratings ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of R R Engineering Services India Pvt Ltd. The ratings reflect instances of delay by RRESIPL in servicing its debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 22.5 CRISIL D Standby Line of Credit 6 CRISIL D Bank Guarantee 20 CRISIL D Cash Credit 45 CRISIL D RRESIPL also has a small net worth, moderate scale of operations, and high customer concentration. These rating weaknesses are partially offset by the extensive experience of RRESIPL's promoters in the construction industry. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of RRESIPL and its group firm, VSP Stone Crushers, collectively referred to as the RRESIPL group. This is because both entities have significant operational linkages, are in the same line of business, and are managed by the same promoters. About R R Engineering Established as a partnership firm, RR Services, in 1989 and reconstituted as a private limited company in 2009-10 (refers to financial year, April 1 to March 31), RRESIPL is engaged in construction works involving excavation work, quarrying and crushing of aggregates, road works, and civil works for power projects. More than 95 per cent of the company's sales are generated from orders received from GVK Power & Technical Services Ltd. RRESIPL located in Anaparthy, Andhra Pradesh is promoted by Mr. Rama Reddy. RRESIPL has an unexecuted order book of around INR250 million, to be executed in one year. VSP is a partnership firm set up in 2010-11 and undertakes sub- contracting work for RRESIPL. This firm is managed by the same set of promoters as RRESIPL. RRESIPL on a standalone basis reported a profit after tax (PAT) of INR20.1 million on net sales of INR514.2 million for 2010-11, as against a PAT of INR11.6 million on net sales of INR312.6 million for 2009-10. SAVION CERAMIC: CARE Assigns 'B+' Rating to INR5.68cr LT Loan ------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Savion Ceramic. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.68 CARE B+ Assigned Short-term Bank Facilities 0.55 CARE A4 Assigned The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The ratings are primarily constrained on account of the short track record of operations of Savion Ceramic and weak financial risk profile characterized by net losses, leveraged capital structure, weak debt coverage indicators and stressed liquidity position. The ratings are further constrained due to the susceptibility of its margins to volatile raw material and fuel prices and its presence in a highly fragmented and competitive ceramic tile industry with close linkages to the cyclical real estate industry. The ratings, however, favorably take into account its presence in the ceramic tile cluster of Morbi in Gujarat and the wide experience of the partners in the ceramic industry. Stabilization of the newly setup manufacturing facilities and achieving optimum utilization and thereby improve its financial risk profile in light of the competitive nature of industry is the key rating sensitivity. About Savion Ceramic Savion Ceramic is a partnership firm started in the year 2009. Currently, there are fifteen partners in the firm with an unequal profit and loss sharing agreement between them. Mr. Kalpesh K. Daxini holds 15% share in the firm and is actively involved in the operations. Savion is engaged in manufacturing of ceramic glazed wall tiles at its sole manufacturing facility located at Wankaner in Rajkot district of Gujarat which had an installed capacity of around 45,000 square meters per day (smpd) of ceramic glazed wall tiles as on March 31, 2011. Savion started commercial production of wall tiles in April 2010 and sells its products under the brand name "Glassia". SHREE RAM: CARE Assigns 'CARE B+' Rating to INR7.74cr Loan ---------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to bank facilities of Shree Ram Proteins Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facility- 7.74 CARE B+ Assigned Term Loan Long-term Bank Facility- 21.00 CARE B+ Assigned Cash Credit Short-term Bank Facility- 0.50 CARE A4 Assigned Bank Guarantee Rating Rationale The ratings are constrained by weak financial profile reflected through high gearing and stressed debt coverage indicators; lack of refining capacity which coupled with the highly fragmented nature of the edible oil industry limits the bargaining power of SRPPL with buyers. The rating is also constrained by plants concentration on a single type of oilseed and the vulnerability of profitability to the movements in raw material prices, which are related to seasonality and crop harvest. The rating, however, derives strength from experience of the promoters in the cotton ginning industry, the comparative advantage over traditional oil seed processing units and favorable location at Gondal (Rajkot) which provides easy access to high quality raw material. Ability to improve scale of operations as well as profitability and successfully implement additional de-linting capacity, as the term loan repayment has already started are key rating sensitivities. About Shree Ram Shree Ram Proteins Private Limited was incorporated in 2008 and has set up a cotton seed processing facility at Gondal in Gujarat, to produce cotton seed oil, de-oiled cake, cotton linters and hulls. The operations have commenced since February 2010 and the company has an installed capacity of 300MT/day for de-linting and 500MT/day for solvent extraction. The company sells the entire quantity of washed cotton seed oil (WCS) to refiners in Gujarat like Adani Wilmar, M.K Protiens, Vimal Oils & Foods Ltd and does not have any refining capacity of its own. Currently the company is implementing expansion of de-linting capacity from 300 MT/day to 450 MT//day. On a total income of INR75.46 crore the company posted a net profit of INR0.40 crore during FY11 (refers to period April 1 to March 31). SKM EGG: CARE Cuts Rating on INR46cr Loan to 'CARE BB-' ------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of SKM Egg Products Export (India) Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities- 46.0 CARE BB- Revised from Term Loan CARE BB (enhanced from 19.2) Short-term Bank Facilities- 55.2 CARE A4 Reaffirmed Fund-based (enhanced from 41.3) Rating Rationale The rating revision takes into account further deterioration in operational performance and cash losses in FY11 (refers to period April 1, 2010 to March 31, 2011) and 9MFY12 (refers to period April 1, 2011 to December 31, 2011). The ratings draw strength from the vast experience of the promoters, established track record of the company in the poultry industry as one of the largest egg powder exporters in the country and efforts taken by the company to build backward integration capabilities. Going forward, improvements in operational performance resulting from the combined effect of revival of the export market & reduction in egg prices and managing foreign exchange risk will be the key rating sensitivities. About SKM Egg SKM Egg Products Exports (India) Ltd. was promoted in April 1995 by Mr. SKM Maeilanandan, a reputed businessman with about two decades of experience in Poultry farming, as a Joint Sector Undertaking with Tamil Nadu Industrial Development Corporation Limited (TIDCOholds 7.54 % of the shareholding) to manufacture Whole Egg powder, Egg Yolk powder and Egg Albumen powder. SKM's products are used in about 5 segments, viz, Bakery & Confectionery, Noodles & Pasta, Meat & Fish products, Mayonnaise & Salad dressing and Health & Pharmaceuticals. The company has quality certifications like ISO 9001:2000, SQF (Safe Quality Food) 2000 and HACCP (Hazard Analysis Critical Control Point) certifications. SKM is a 100% Export Oriented Unit (EOU) which exports egg powder mainly to Europe, Japan and Middle East. SKM has its own Feed Mill Plant and Poultry farm in order to ensure quality and uninterrupted supply of eggs for the Egg Processing plant. In FY11 the company incurred net loss of INR9.3 crore on total income of INR121.0 crore. As per the working results for the nine months ended December 31, 2011 the company incurred a net loss of INR8.1 crore on total income of INR87.9 crore. SRINATH BUILDERS: CRISIL Reaffirms 'BB' Rating on INR90MM Loans --------------------------------------------------------------- CRISIL rating on the bank facilities of Srinath Builders and Housing Co Pvt Ltd continues to reflect the extensive experience of Srinath's promoters in the construction industry, and its diversified clientele. These rating strengths are partially offset by Srinath's large working capital requirements, and small scale of operations and net worth. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 85.0 CRISIL A4+ Cash Credit 67.5 CRISIL BB/Stable Proposed Cash Credit Limit 22.5 CRISIL BB/Stable Limit Outlook: Stable CRISIL believes that Srinath will continue to benefit over the medium term from its promoters' extensive industry experience and diversified clientele. The outlook may be revised to 'Positive' if Srinath reports strong growth in revenues, driven by greater segmental and geographical diversification. Conversely, the outlook may be revised to 'Negative' in case the company undertakes an additional large, debt-funded capital expenditure (capex) or acquisition programme, or in case of less-than- expected revenues or operating profitability, leading to weakening in its financial risk profile. Update Srinath is estimated to have generated revenues of INR270 million in 2011-12 (refers to financial year, April 1 to March 31), against of INR370 million in 2010-11. Revenues for 2011-12 are much below CRISIL's expectation of over INR450 million, as revenues from one of Srinath's key projects have were less than expected (by INR60 million) and operations were disrupted for around 2 months. The company had orders of about INR520 million as on April 4, 2012, to be executed over the next 12 months, providing some revenue visibility. For 2011-12, Srinath's operating profit margin is estimated at 12 per cent, in line with CRISIL's expectations. Srinath's financial risk profile is estimated to have improved marginally with infusion of equity of about INR33.6 million in 2011-12. With the infused equity, its gearing is estimated to have come down to a comfortable level of 0.64 times as on March 31, 2012 from 0.97 times a year ago. The promoters are planning to infuse addition INR100 million of equity into the company, which is expected to increase its net worth to about INR250 million in 2012-13. The equity infusion is being done to fund the expected incremental working capital requirements of the company over medium term. In 2011-12, Srinath's bank limit utilisation was 84%. This was mainly because of large working capital requirements, as reflected in its inventory holding period of about 62 days, and receivables collection period of about 75 days, as on March 31, 2011. The firm's liquidity has been adequate, as reflected in its net cash accruals of about INR24 million per annum vis-a-vis debt obligations of about INR1.5 million over the medium term and average bank limit utilisation of 84 per cent. For 2011-12, its debt protection metrics are estimated to have remained at the previous year's levels - interest coverage and net cash accruals to total debt ratios are estimated at 3.62 times and 29 per cent respectively for 2011-12. Srinath reported a profit after tax (PAT) of INR19 million on net sales of INR370 million for 2010-11, against a PAT of INR10 million on net sales of INR210 million for 2009-10 About Srinath Builders Srinath, based in Assam, is into civil construction activities, primarily earthwork, and construction of roads, bridges, buildings, and border fences, in the states of Assam and Meghalaya. The company has a diversified clientele, including National Projects Construction Corporation Ltd, National Buildings Construction Corporation Ltd (rated 'CRISIL AA- /Stable'), Assam Public Works Department, Brahmaputra Board, Assam, and Northeast Frontier Railways. The company is registered as a Class 1 contractor with the aforementioned clients. Srinath had an order book of INR520 million as on April 4, 2012. The day- to-day operations of the company are looked after by its promoter-directors, Mr. Nitish Agarwal and Mr. Manish Agarwal. TERRA INFRA: CARE Reaffirms 'CARE BB-' Rating on INR10cr Loan ------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Terra Infra Development Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 10.00 CARE BB- Reaffirmed Short-term Bank Facilities 50.00 CARE A4 Reaffirmed Rating Rationale The ratings continues to be constrained by the liquidity concerns faced by the company evidenced by high working capital utilisation levels, relatively lesser experience of TIDL as an Engineering, Procurement and Construction contractor and smaller fixed asset base, fixed-price and fixed time nature of EPC contracts and non-diversified construction business focusing only on road projects which offer relatively lower margin. The ratings takes into consideration the affiliation of TIDL with the diversified Jayaswal Neco Group having presence in sectors like iron, steel, power and metals & mining. Along with Government of India's policy focus on infrastructure development especially roads. TIDL's ability to bag new contracts which in turn would enhance its future revenue visibility constitute the key rating sensitivity. About Terra Infra TIDL has been promoted by NECO Group for infrastructure development primarily road construction projects on Engineering, Procurement and Construction (EPC) basis. The company was incorporated in 1991 as Siltra Energy Pvt Ltd, and later was reconstituted as TIDL (public limited). The company reported a total income of INR157.49 crore and a PAT of INR6.01 crore in FY11 (refers to period April 01 to March 31) on a standalone basis as against a total income of INR195.47 crore and a PAT of INR6.82 crore in FY10. UKAY METAL: CRISIL Assigns 'CRISIL BB+' Rating to INR60MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable' rating to the long- term bank facilities of Ukay Metal Industries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL BB+/Stable Term Loan 40 CRISIL BB+/Stable The rating reflects the extensive experience of UMIPL's promoters in the auto component industry. This rating strength is partially offset by customer concentration in UMIPL's revenue profile. Outlook: Stable CRISIL believes that UMIPL will continue to benefit over the medium term from its promoters' extensive experience in the automobile components industry and healthy customer relationships. The outlook may be revised to 'Positive' if the company reports significantly higher than expected revenues and net cash accruals while improving its debt protection indicators. Conversely, the outlook may be revised to 'Negative' if UMIPL's debt protection metrics deteriorate materially because of lower- than-expected revenues and earnings, or larger-than-expected, debt-funded capital expenditure or elongation of its working capital cycle. About Ukay Metal Incorporated in 1988, UMIPL manufactures automotive components. The company manufactures diverse automotive components such as front grill, bull bar, dash mat, and seat foam. UMIPL's clientele includes auto companies, such as Mahindra and Mahindra Ltd (rated 'CRISIL AA+/Stable/CRISIL A1+'), Lear Automotive India Pvt Ltd, and Force Motors Ltd. Mr. Rajendra Katore is UMIPL's managing director. Its manufacturing facilities are located in Nashik (Maharashtra) UMIPL reported a profit after tax (PAT) of INR14.6 million on net sales of INR931.5 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR6.4 million on net sales of INR691.4 million for 2009-10. VAISHNO SALES: CRISIL Upgrades Rating on INR122.5MM Loan to 'BB-' ----------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Maa Vaishno Sales Pvt Ltd to 'CRISIL BB-/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 122.5 CRISIL BB-/Stable (Upgraded from 'CRISIL B+/Stable') The upgrade reflects improvement in MVSPL's scale of operations and the company's increasing net worth. MVSPL's topline is expected to improve to around INR800 million during 2011-12 (refers to financial year, April 1 to March 31) against INR392 million in 2010-11. Additionally, infusion of equity during 2011- 12 is expected to result in improvement in the company's net worth and capital structure. The rating continues to reflect the benefit that MVSPL derives from its promoters' experience in the distribution business and established relationships with principals. The above strengths are partly negated by the company's below-average financial risk profile, marked by below average debt protection metrics, and large working capital requirements. Outlook: Stable CRISIL believes that MVSPL will continue to benefit over the medium term from its promoters' experience in the distribution business and its established relationships with its principals. The outlook may be revised to 'Positive' if the company reports substantial growth in its scale of its operations and profitability, while it maintains its capital structure. Conversely, the outlook may be revised to 'Negative' if MVSPL reports significant pressure on its profitability, or if it undertakes a large debt-funded capital expenditure programme, leading to deterioration in its financial risk profile. About Maa Vaishno MVSPL was set up as Maa Vaishno Enterprises, a proprietorship firm, in August 2000 by Mr. Harish Agarwal. It was a dealer for Philips India Ltd until 2006. MVSPL is currently the distributor of products manufactured by Surya Roshni Ltd, Finolex Cables Ltd, and Wipro Ltd in West Bengal. MVSPL caters to around 1000 retailers in its area of operations. MVSPL reported a profit after tax (PAT) of INR2.3 million on net sales of INR392 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR1.5 million on net sales of INR260 million for 2009-10. ========= J A P A N ========= OLYMPUS CORP: Wins Shareholder Approval for New Board ----------------------------------------------------- Jiji Press reports that Olympus Corp. on Friday secured shareholders' approval of executive appointments to fill vacancies left by managers who resigned to take responsibility for a massive loss cover-up. At an extraordinary general meeting, Jiji Press relates, shareholders endorsed the appointment of 11 new board members and four auditors proposed by Olympus. According to the report, Hiroyuki Sasa, who was executive officer, replaced Shuichi Takayama to become the new Olympus president. Former Sumitomo Mitsui Banking Corp. executive Yasuyuki Kimoto became the new chairman, says Jiji Press. At the start of the meeting, Jiji Press says, Mr. Takayama apologized for the cover-up, briefing shareholders on the wrongdoing and measures that have been taken to prevent similar scandals. Jiji Press relates that shareholders accepted Mr. Takayama's request to approve corrections to past earnings results up through the year ending in March 2007. The extraordinary meeting, which was attended by a record 975 participants, lasted 2 hours and 59 minutes, the longest on record for Olympus, the report notes. Jiji Press reports that some shareholders submitted motions to return former President Michael Woodford to the board. Mr. Woodford, Jiji Press recalls, was ousted from the company's presidency in October last year after blowing the whistle on suspicious corporate acquisition deals, which led to the revelation of the cover-up scandal. But the motions were rejected by majority votes, Jiji Press notes. At the meeting, Jiji Press relates, Mr. Woodford urged the company to explain why it dismissed him. Regarding the firm's plan to retain two previous board members as executives, Woodford said all former members should promise to leave. The management did not explain the reasons for Mr. Woodford's dismissal. Jiji Press reports that Mr. Woodford said he will file a suit to invalidate the decisions made during the meeting, claiming it was illegitimate because management failed to provide the explanations he sought. About Olympus Corp. Based in Japan, Olympus Corporation (TYO:7733) -- http://www.olympus-global.com/-- manufactures and sells medical products, life and industrial products, imaging products, information communication products and other products. As of March 31, 2011, the Company has 188 subsidiaries and 11 associated companies. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Sale Deal With Chinese Buyer Approved --------------------------------------------------- BusinessDesk reports that the government ministers have approved the purchase of the Crafar farms by the Chinese company Shanghai Pengxin, but the decision has been heavily criticised by a rival bidder. BusinessDesk relates that Land Information Minister Maurice Williamson said in a statement he and Associate Finance Minister Jonathan Coleman had approved the Overseas' Investment Office's (OIO) new recommendation to allow the purchase of the 16 farms. According to the report, Mr. Williamson said the ministers were satisified that even on the most conservative approach, the application met the criteria set out in the Overseas Investment Act. Mr. Coleman said the approval was given with 27 conditions to ensure the investment by Milk New Zealand -- Shanghai Penxin's subsidiary in New Zealand -- would deliver substantial benefits to New Zealand, the report relays. Meanwhile, BusinessDesk reports that Sir Michael Fay -- the leader of a rival bid by a consortium that had challenged the original consent -- said the deal set a precedent that would "open the farmgates" for a flood of other overseas investors. Mr. Fay said the group was disappointed and its iwi members were "justifiably angry''. "It is hard to comprehend that this sale can go ahead only because a Government-owned entity, Landcorp, has partnered with Shangahai Pengxin to provide the necessary business acumen and expertise required for OIO approval," the report quotes Mr. Fay as saying. "It would mean any potential foreign owner would be approved if they could 'buy in' sufficient New Zealand expertise to effectively make a nullity of this key requirement in the OIO rules." As reported in the Troubled Company Reporter-Asia Pacific on April 27, 2010, The New Zealand Herald said 16 farms in the Crafar Farms group have been placed onto the open market for sale by Crafar's receivers through Bayleys Real Estate. Bayley's said the receivership sale is the single largest receivership sale of farms in New Zealand history. The 16 farms employ nearly 200 staff and managers and cover 8,000 hectares. They are located in the Waikato, near Benneydale in the King Country, Reporoa, Atiamuri, Waverley, Hawera and Bulls. The TCR-AP, citing The National Business Review, reported on Feb. 20 that the government was ordered by the high court to reconsider its decision to allow the sale of the Crafar farms to a subsidiary of Shanghai Pengxin. Ministers approved the sale of the 16 Crafar farms to Shanghai Pengxin late in January, conditional on a deal being struck with Landcorp to run the farms, according to NBR. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employed 200 staff. Crafar Farms was placed in receivership in October 2009, by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks, owed around NZ$200 million, put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The latest report on the four Crafar companies in receivership -- Plateau Farms, Ferry View Farms, Hillside and Taharua -- said their bank debt in October was NZ$256 million, according to BusinessDay.co.nz. HANOVER FINANCE: Court of Appeal Upholds Asset Freezing Order ------------------------------------------------------------- Businessdesk reports that the Court of Appeal has rejected an attempt by former Hanover Finance boss Mark Hotchin to replace the court-ordered freeze on his personal assets with less onerous "formal undertakings." BusinessDesk says Financial Markets Authority head Sean Hughes welcomed the decision upholding a High Court rejection last September of Mr. Hotchin's bid to have preservation orders on his assets revoked. "These orders are important for enabling the FMA to preserve assets for aggrieved investors pending the outcome of the civil proceedings filed by FMA last month," the report quotes Mr. Hughes as saying. According to the report, High Court judge Helen Winkelman ruled against replacing the preservation orders, saying undertakings "provide a less satisfactory protection for aggrieved persons" without alleviating the difficulty Mr Hotchin said he was having making an income to support his family. Those assets include a mansion in Auckland's Paritai Drive, which the Appeal Court heard last month would be completed for a total cost of NZ$43 million, BusinessDesk notes. The High Court granted in December 2010 interim asset preservation orders in respect of assets believed to be associated Mr. Hotchin. The orders were sought by FMA's predecessor, the Securities Commission. Mr. Hotchin appealed the upholding of the orders in December 2011 by the High Court. The appeal was opposed by FMA. FMA filed civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd and United Finance Ltd on March 30, 2012. About Hanover Finance Hanover Finance Limited -- http://www.hanover.co.nz/-- is New Zealand's third-largest privately-owned finance company with total assets of NZ$796 million at December 31, 2007. The company was established in 1984 to provide finance to the rural sector and began lending to property developers and investors in 1995. The loan portfolio has been gradually downsized since 2006 as a result of a more cautious approach to lending in the face of retail funding constraints. Hanover Finance's investors in December 2008 voted in favor of the company's Debt Restructure Proposals, including a plan to fully repay NZ$552.6 million principal it owes over five years. However, Hanover Finance said in November 2009 it is no longer likely to fully repay investors under a debt restructuring plan due to a deterioration in the commercial property development market, a TCR-AP report on Nov. 12, 2009, said. In December 2009, investors agreed to swap their Hanover interests for shares in Allied Farmers Ltd. The Serious Fraud Office commenced an investigation into the affairs of Hanover Finance Ltd in September 2010 after considering complaints received from the Securities Commission, Allied Farmers and others. =============== X X X X X X X X =============== * Moody's Says March Asian Liquidity Stress Index Deteriorated -------------------------------------------------------------- Moody's Investors Service says that its Asian Liquidity Stress Index (LSI) deteriorated further in March and now stands at 15.5%, or 15 of the 97 issuers in the speculative-grade portfolio demonstrating weak liquidity, compared with 14.6%, or 14 out of 96 issuers, in February. "The deterioration in March was again largely the result of weakening liquidity profiles, particularly of Chinese corporates and more specifically of Chinese property developers. More than one in four of the high-yield Chinese property companies we rate is considered to have weak liquidity," says Laura Acres, a Moody's Vice President and Senior Credit Officer. "Overall liquidity in Asia remains strong relative to the high point of 37% in the fourth quarter of 2008, the peak of the global financial crisis. However, it is now at the highest level since October 2010 and there have been four months of consecutive, marked erosion," adds Ms. Acres. The Asian LSI measures the percentage of companies with the lowest speculative- grade liquidity score (SGL-4), and increases when corporate liquidity appears to deteriorate. Liquidity in Asia is generally weaker than in other regions, partly because its debt capital markets aren't as mature as those in some other regions, and because they rely more on local bank markets for funding. "The number of net new issuers in the index rose by one in March. This was a function of two new ratings, of Indonesian home builder Alam Sutera Realty Tbk (B2, stable) and Mongolian Mining Corp (B1, stable), and the withdrawal of the ratings of Daqing Dairies. "At the same time, the total amount of rated debt outstanding in March increased slightly, to $43.5 billion from $40.4 billion in February, as a result of new issuances," says Ms. Acres. Looking ahead, Moody's expects markets in Asia to remain uncertain, due to ongoing concerns about the euro area sovereign debt crisis and a more general economic slowdown, which has made investors more cautious. However, the market has reopened, with most deals being oversubscribed and the two new deals; Mongolia Mining Corp was the first corporate rated deal out of Mongolia, while Alam Sutera was one of the lowest-rated first time issuers in the region to raise US dollars. Moody's expects more high-yield debt deals to flow through in the coming weeks and months. Moody's expects that $4.2 billion of bonds from rated issuers (including domestic and cross-border bonds and convertibles) will fall due this year and that much of this will need to be refinanced. Some US$871 million of the total US$4.2 billion of debt is to be refinanced by six issuers rated B3 and below: to date no Asian issuer has successfully raised a US$ bond while at this rating level or below. The monthly index looks at looks at liquidity trends throughout the Asia-Pacific region (excluding Japan and Australia) for the speculative-grade companies Moody's rates, and quantifies the proportion of companies with weak liquidity. The report is entitled Moody's Asian Liquidity Stress Index. ********* 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. *** End of Transmission ***