/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120903.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, September 3, 2012, Vol. 15, No. 175 Headlines A U S T R A L I A FORTESCUE METALS: Moody's Reviews 'Ba3' CFR for Downgrade FUEL VFX: Placed Into Voluntary Administration NEW DIMENSION: Victoria Builder Enters Administration C H I N A GLORIOUS PROPERTY: 1H 2012 Results No Impact on Moody's 'B3' CFR RENHE COMMERCIAL: Moody's Downgrades CFR to 'Caa1'; Outlook Neg. ROAD KING: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg. H O N G K O N G MASAKA JAPANESE: Members and Creditors Meetings Set for Sept. 25 MAXIMA GROUP: Members' Final General Meeting Set for Sept. 25 MEGURO SUSHI: Members and Creditors Meetings Set for Sept. 25 MEMSUN WORLD: Members and Creditors Meetings Set for Sept. 25 MING ARTS: Members' Final Meeting Set for Sept. 25 NICHICA (H.K.): Members' Final General Meeting Set for Sept. 29 ORIENT REGENT: Members' Final Meeting Set for Sept. 24 PINGHSI COMPANY: Members' Final General Meeting Set for Sept. 28 RIGHT TEAM: Members' Final General Meeting Set for Sept. 25 SING WAN: Members and Creditors Meetings Set for Sept. 25 SKB TECHNOLOGIES: Members' Final General Meeting Set for Sept. 25 SKY BRAVE: Members and Creditors Meetings Set for Sept. 25 TREASURE WIN: Members and Creditors Meetings Set for Sept. 25 UNITECH NETWORKS: Members and Creditors Meetings Set for Sept. 25 WIDER SHIPPING: Members' Final Meeting Set for Sept. 24 I N D I A AKSHAR COTTON: ICRA Assigns '[ICRA]B' Rating to INR7.57cr Loans DAEWOO MOTORS: Former Employees Yet to Receive Salaries, Benefits KADER INVESTMENT: ICRA Reaffirms 'BB' Rating on INR10.2cr Loan LAMBODHARA TEXTILES: Fitch Affirms Nat'l Long Term Rating at 'BB' LIBERTY FROZEN: ICRA Reaffirms 'BB' Rating on INR6.7cr Loan MAGNA PUBLISHING: ICRA Assigns 'B+' Rating to INR4.62cr Loans NEELI AQUA: ICRA Rates INR5cr Loan at '[ICRA]B PADMASRI RICE: ICRA Reaffirms 'B' Rating on INR24.97cr LT Loan PREMIER MARINE: ICRA Reaffirms 'BB' Rating on INR12.88cr Loan RELIABLE AUTOTECH: ICRA Assigns 'BB' Rating on INR55.66cr Loans SAHARA INDIA: High Court Orders Group to Refund INR24,000cr SAMRAT AUTO: ICRA Rates INR8.5cr Loan at '[ICRA] B+' TOPLINK MOTORS: ICRA Assigns 'BB-' Rating to INR10cr Loans N E W Z E A L A N D BELGRAVE FINANCE: Ex-Director Face 3-Year Jail Terms CAPITAL + MERCHANT: Execs Get Jail Sentences Over Fraud P H I L I P P I N E S NICUA MINING: Suspends Operations; Sacks 180 Workers S I N G A P O R E AMTEL INVESTMENT: Court Enters Wind-Up Order BELIER INVESTMENT: Creditors' Proofs of Debt Due Sept. 30 CIT GROUP: Creditors' Proofs of Debt Due Oct. 1 DONGFANG SHIPBUILDING: Court Enters Wind-Up Order FLINSTONE MANUFACTURING: Court to Hear Wind-Up Petition Sept. 14 - - - - - ================= A U S T R A L I A ================= FORTESCUE METALS: Moody's Reviews 'Ba3' CFR for Downgrade --------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the Ba3 corporate family rating of Fortescue Metals Group Limited and the Ba3 senior unsecured rating of FMG Resources (August 2006) Pty Ltd. Ratings Rationale "The rating action reflects the considerable constraints on Fortescue's liquidity profile due to the rapid and continuing decline in the iron ore price to levels that are below our base case expectation," says Matthew Moore, a Moody's AVP -- Analyst. "Fortescue is investing heavily in its significant capacity expansion project, and the depressed operating cash flow, arising from the drop in iron ore prices combined with the potential for ongoing short-term weakness, is raising material challenges for Fortescue." These challenges may include 1) the need to raise substantial incremental funding to meet project delivery schedule, and 2) increased pressure on remaining within its financial covenants for the twelve-months to December 2012, particularly its Debt-to- Consolidated Cash Flow covenant. The recent announcement of $600 million cost over-run to the expansion project has also added to Fortescue's challenges. Accordingly, Moody's sees an increased risk of a delay to capital expenditures related to the company's expansion project (to increase production capacity from 55 to 155 million tons per annum - 'mtpa') without additional external funding, or in the absence of a meaningful iron ore price rebound in the short-term. The review will focus on 1) the company's ability to reduce and/or delay its cash expenditures, 2) its plans and ability to secure additional non-debt financing in order to maintain adequate liquidity to continue to fund its operations and remain within covenant levels. The review will also consider any plans that Fortescue may have to obtain covenant relief should the price environment in the short-term remain at current depressed levels. In addition, the review will consider the near-term performance and outlook for iron ore prices. Moody's notes that a near-term rebound in iron ore prices to around the $115 to $125 per tonne level will substantially reduce concerns around liquidity and covenant pressure. Moody's recognizes that Fortescue's credit profile should improve materially upon successful commissioning of the expansion project, with production capacity expected to grow from 55mtpa to 155mtpa by mid next year. This will support a solid credit profile over the medium to long term. The principal methodology used in rating Fortescue Metals Group Ltd. and FMG Resources (August 2006) Pty Ltd was the Global Mining Industry Methodology published in May 2009. Fortescue Metals Group, based in Perth, is an iron ore producer engaged in the exploration and mining of iron ore for export, mainly to China. FUEL VFX: Placed Into Voluntary Administration ---------------------------------------------- Screendaily.com reports that Sydney-based Fuel VFX has placed itself into voluntary administration due to financial difficulties. The company's five directors last week appointed Andrew Spring from Jirsch Sutherland Partners as administrator, the report says. "We have frozen the liabilities of Fuel while a rescue package is prepared," the report quotes Mr. Spring as saying. About half of Fuel's 80 staff have been stood down, Mr. Spring told Screendaily.com. The business and its assets are for sale as a going concern, although it is possible that the company could be restructured and trade out of trouble, according to the report. Screendaily.com relates that Mr. Spring said he has been told by the directors that the company is over resourced, that is, it is geared up for a lot more work than it currently has. In part this has been caused by not reacting quickly enough to delays on some of the projects in the pipeline. Fuel VFX is one of Australia's few world-class visual effects and animation companies. Fuel most recently worked on Prometheus and The Avengers. Other US feature film credits include Thor, Cowboys & Aliens, Mission Impossible: Ghost Protocol and Iron Man 2. NEW DIMENSION: Victoria Builder Enters Administration ----------------------------------------------------- SmartCompany reports that Victorian construction company New Dimension Homes has entered administration with Glenn Crisp of Jirsch Sutherland appointed as administrator. Mr. Crisp told SmartCompany the business went into administration earlier last week, by which stage all of its 15 or so employees had left. "It ceased trading about a month ago so we are dealing with a shell of a company," the report quotes Mr. Crisp as saying. "The company does not have any cash and does not hold a builder's licence to build any homes . . . We had a meeting with the Housing Industry Association to work out how to get the homes finished for the home owners who are affected at the home owners' insurers would not deal with us." SmartCompany relates that Mr. Crisp said around 50 home owners have been impacted across Melbourne. New Dimension Homes had a turnover last year of around AUD7 million and previously traded as Icon Designer Homes, the report discloses. Based in Victoria, Australia, New Dimension Homes offers single and double-storey homes and house and land packages. ========= C H I N A ========= GLORIOUS PROPERTY: 1H 2012 Results No Impact on Moody's 'B3' CFR ---------------------------------------------------------------- Moody's Investors Service says that Glorious Property Holdings Limited's B3 corporate family rating and Caa1 senior unsecured debt rating of its USD notes will not be affected by its 1H 2012 results. The ratings outlook remains negative. Glorious' 1H 2012 weak results have been factored in its B3 rating and negative outlook. "The current ratings and outlook continue to reflect Moody's concern over Glorious' weak management of its debt maturities," says Franco Leung, a Moody's Assistant Vice President and Analyst. Glorious had short-term debt amounting to 65% of its total debt as of 30 June 2012 compared with 62.5% in December 2011. This debt level weighs on its near-term refinancing risk at a time when banks remains cautious about property sector financing. Glorious reported a 43.6% year-on-year decrease in revenue to RMB1.34 billion in 1H 2012. This resulted in low EBITDA and interest coverage in 1H 2012. "Glorious' sales continue to be affected by regulatory measures, which will pressure its ratings," adds Mr. Leung. The weak sales in the first quarter of this year have also translated into weak liquidity. Glorious' cash position covered less than 35% of its short-term debt in June 2012. While purchase restrictions remain in its key regions, that is in Shanghai and the Yangtze River Delta, the company has demonstrated good sales execution since April this year. Contracted sales amounted to RMB6.7 billion in the first seven months of 2012, which account for 51.7% of its full-year 2012 target of RMB13 billion. Despite its weak 1H 2012 results and debt maturity profile, Glorious' B3 corporate family rating continues to be supported by its high-quality land bank which is located in the major districts of first-tier cities, such as Shanghai and Beijing. Its high-profit margins also offer some flexibility with pricing in a downmarket. As of Jun 2012, the company had a land bank with a gross floor area (GFA) of 18.1 million square meters (sqm). Glorious has slowed down the pace of its land acquisitions in June 2012, it purchased a piece of land for a low price of RMB291 million. The principal methodology used in rating Glorious was the Global Homebuilding Industry Methodology published in March 2009. Glorious Property Holdings Limited is a medium-sized residential property developer based in Shanghai. It has now expanded to eastern and northern China. It has a land bank of around 18.1 million sqm (GFA) in Shanghai, Beijing, Tianjin, and several second-tier cities in the Yangtze River Delta and Northeast China as of Jun 2012. Glorious was listed on the Stock Exchange of Hong Kong in 2009. Its chairman, the major shareholder, owns 68.4%, and also has a shipbuilding company listed in Hong Kong. RENHE COMMERCIAL: Moody's Downgrades CFR to 'Caa1'; Outlook Neg. ---------------------------------------------------------------- Moody's Investors Service has downgraded to Caa1 from B3 the corporate family and senior unsecured debt ratings of Renhe Commercial Holdings Co Ltd. The ratings outlook remains negative. Ratings Rationale "The downgrade reflects the uncertainty over the sustainability of the company's business model, given its track record of weak sales execution and collection of receivables," says Franco Leung, a Moody's Assistant Vice President and Analyst. Renhe's book sales of RMB201 million in 1H 2012 are well below Moody's expectation. The company generated its book sales only from rental income, with no contribution from the transfer of operation rights. Although the company has managed to collect some sales proceeds from the disposal of its British Virgin Islands subsidiaries that own its projects in 1H 2012, its accounts receivables remained high at RMB3.8 billion as at June 2012. "The downgrade also reflects Moody's concern over Renhe's heightened liquidity risk and the lack of funds for further property development," adds Mr. Leung. Renhe's cash balance dropped to RMB1.4 billion in June, from RMB2.2 billion as of December 2011, and is inadequate to provide a buffer against a further slowdown in sales and receivable collection. Furthermore, although it obtained RMB500 million bank loans secured by the joint guarantee provided by one of its subsidiaries and the chairman of the company, its access to bank funding remains limited as its underground properties do not have transferrable title rights. The company has used up most of the cash from its bond issuance, the key source of funding for development. Rental income from Renhe's investment properties can only cover a fraction of the annual interest payments, reflecting the company's inability to effectively service debt. "Moody's is also concerned about Renhe's aggressive accounting treatment for revaluating some of its projects that are still under construction," says Mr. Leung. Renhe plans to adjust its business model to increase its holdings of investment properties, and it has reported a fair-value gain from some properties that were previously designated for sale. Since the revaluations include some incomplete projects, such an approach to accounting has inflated its asset values. The Caa1 ratings reflect the company's weak credit metrics. Moody's expects no significant improvement in Renhe's EBITDA interest coverage, which dropped below 1.5x in 2011 and well below 1X in 1H 2012. The negative ratings outlook reflects Moody's concerns that Renhe's liquidity and financial profile could weaken further in the next 12-18 months. Renhe's ratings could be downgraded further if its business continues to underperform, resulting in substantial deterioration in its balance sheet liquidity -- a situation that would jeopardize its ability to repay debt. Furthermore, changes in regulations that negatively impact the conditions for developing underground air defense shelters for commercial use could also be negative for the ratings. The ratings are unlikely to be upgraded in the near term, given the negative outlook. Renhe Commercial Holdings Company Limited's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Renhe Commercial Holdings Company Limited's core industry and believes Renhe Commercial Holdings Company Limited's ratings are comparable to those of other issuers with similar credit risk. Renhe Commercial Holdings Co Ltd. specializes in the commercial operation and development of underground shopping centers that can also function as civilian air defense shelters in China. The projects are built below city commercial centers and transportation hubs, and are free of land-use premium fees. As of December 2011, the company was operating and managing 22 malls in 15 cities in China. ROAD KING: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg. -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on China-based property developer and toll road operator Road King Infrastructure Ltd. The outlook is negative. "At the same time, we affirmed our 'BB-' issue rating on the company's outstanding guaranteed senior unsecured notes. We also affirmed our 'cnBB' long-term Greater China credit scale rating on Road King and on the company's notes," S&P said. "We affirmed the rating to reflect Road King's stable cash flows from toll roads and healthier property sales over the next six to 12 months," said Standard & Poor's credit analyst Steffi Chen. "We expect these factors to improve the company's cash flows and support its debt servicing and other obligations." "Road King's contracted sales of Chinese renminbi (RMB) 4.7 billion in the first half of 2012 met about half the company's full-year target. Nevertheless, Road King's financial strength may not recover materially because of lower profitability from sales in a weak property market. We assess the company's business risk profile as 'weak' and its financial risk profile as 'aggressive,' as our criteria define these terms," S&P said. "In our view, aggressive price cuts in 2012 largely fueled the increase in Road King's property sales. The company's sales in the first half of 2012 rose 95%, compared with that in the first half of 2011. But we expect its EBITDA margin to decline to about 15% in 2012, from 18% in 2011. The margin is weak compared with that of Road King's developer peers and its average borrowing cost of about 8%," S&P said. "The rating on Road King reflects the company's volatile performance due to its exposure to the cyclical and highly competitive property market in China, its weaker profitability than similarly rated developer peers, and its financial risk profile. Road King's stable operating performance and the sizable cash flows from its toll road operations, its disciplined debt- funded investments and proactive financial management, and improving liquidity position temper the weaknesses," S&P said. "The negative outlook reflects our view that Road King's financial strength may not recover over the next 12 months because weak profitability will offset the improvement in property sales," said Ms. Chen. "We expect Road King's capital structure and cash flow coverage to weaken somewhat in 2012 due to lower margins and higher debt. Nevertheless, the company is likely to maintain 'adequate' liquidity, as our criteria define the term, in the next 12 months," S&P said. "We may lower the rating if: (1) we believe Road King's liquidity will deteriorate to less than adequate, indicating that liquidity sources will be lower than its uses; (2) the company's EBIT interest coverage is less than 2x for a sustained period; or (3) its growth and debt-funded expansion are more aggressive than we expected," S&P said. "We may revise the outlook to stable if Road King materially improves its property sales, maintains its profit margins, and remains disciplined toward debt-funded expansion, such that its EBIT interest coverage stays well above 2x with EBITDA margin of more than 15% for the next 12 months," S&P said. ================ H O N G K O N G ================ MASAKA JAPANESE: Members and Creditors Meetings Set for Sept. 25 ---------------------------------------------------------------- Members and creditors of Masaka Japanese Restaurant Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MAXIMA GROUP: Members' Final General Meeting Set for Sept. 25 ------------------------------------------------------------- Members of Maxima Group Limited will hold their final general meeting on Sept. 25, 2012, at 10:00 a.m., at 23rd Floor, Tung Hip Commercial Building, at 244 Des Voeux Road Central, in Hong Kong. At the meeting, Andrew Morrison Paul, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MEGURO SUSHI: Members and Creditors Meetings Set for Sept. 25 ------------------------------------------------------------- Members and creditors of Meguro Sushi Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MEMSUN WORLD: Members and Creditors Meetings Set for Sept. 25 ------------------------------------------------------------- Members and creditors of Memsun World Wide Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MING ARTS: Members' Final Meeting Set for Sept. 25 -------------------------------------------------- Members of Ming Arts Dance Studio Limited will hold their final general meeting on Sept. 25, 2012, at 10:00 a.m., at Room 603, 6/F, Alliance Building, at 130-136 Connaught Road Central, in Hong Kong. At the meeting, Ho Chiu Lung Michael, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NICHICA (H.K.): Members' Final General Meeting Set for Sept. 29 --------------------------------------------------------------- Members of Nichica (H.K.) Limited will hold their final general meeting on Sept. 29, 2012, at 10:30 a.m., at Unit 505, 5/F, Wing On House, at 71 Des Voeux Road, Central, in Hong Kong. At the meeting, Chan Kwok Ki, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ORIENT REGENT: Members' Final Meeting Set for Sept. 24 ------------------------------------------------------ Members of Orient Regent Development Limited will hold their final meeting on Sept. 24, 2012, at 11:00 a.m., at Room 501, General Commercial Building, 156-164 Des Voeux Road, Central, in Hong Kong. At the meeting, Kwok Siu Nam Dave, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PINGHSI COMPANY: Members' Final General Meeting Set for Sept. 28 ---------------------------------------------------------------- Members of Pinghsi Company Limited will hold their final general meeting on Sept. 28, 2012, at 10:43 a.m., at Level 28, Three Pacific Place, at 1 Queen's Road East, in Hong Kong. At the meeting, Seng Sze Ka Mee Natalia, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. RIGHT TEAM: Members' Final General Meeting Set for Sept. 25 ----------------------------------------------------------- Members of Right Team Industrial Limited will hold their final general meeting on Sept. 25, 2012, at 10:00 a.m., at Room 1205, 12/F, Manulife Provident Funds Place, No. 345 Nathan Road, in Kowloon. At the meeting, Lam Wai Keung Andy, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SING WAN: Members and Creditors Meetings Set for Sept. 25 --------------------------------------------------------- Members and creditors of Sing Wan Decoration Materials Co., Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SKB TECHNOLOGIES: Members' Final General Meeting Set for Sept. 25 ----------------------------------------------------------------- Members of SKB Technologies Limited will hold their final general meeting on Sept. 25, 2012, at 11:00 a.m., at Room 1205, 12/F, Manulife Provident Funds Place, No. 345 Nathan Road, in Kowloon. At the meeting, Tang Sai Hay, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SKY BRAVE: Members and Creditors Meetings Set for Sept. 25 ---------------------------------------------------------- Members and creditors of Sky Brave Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TREASURE WIN: Members and Creditors Meetings Set for Sept. 25 ------------------------------------------------------------- Members and creditors of Treasure Win Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. UNITECH NETWORKS: Members and Creditors Meetings Set for Sept. 25 ----------------------------------------------------------------- Members and creditors of Unitech Networks Limited will hold their annual meetings on Sept. 25, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Room 2611-13A, 26/F, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Yui Hang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WIDER SHIPPING: Members' Final Meeting Set for Sept. 24 ------------------------------------------------------- Members of Wider Shipping Limited will hold their final meeting on Sept. 24, 2012, at 4:00 p.m., at 13/F., Chun Hoi Commercial Building, at 688-690 Shanghai Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Chui Chi Hung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AKSHAR COTTON: ICRA Assigns '[ICRA]B' Rating to INR7.57cr Loans --------------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to the INR6.00 crore fund based cash credit facility and INR1.57 crore term loan facility of Akshar Cotton Industries. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit Limits 6.00 [ICRA]B assigned Term Loan Limits 1.57 [ICRA]B assigned The assigned rating is constrained by ACI's small scale of operations; limited value addition and intense competition due to fragmented industry structure leading to low profitability and weak financial profile characterized by adverse capital structure and weak debt protection indicators. The rating is further constrained by vulnerability of profitability to adverse movement in raw material prices which are subject to seasonality and crop harvest. ICRA also notes that the ACI is a partnership firm and any significant withdrawals from the capital account would affect its net worth and thereby its capital structure. The rating, however, takes into account the favorable location of the firm giving it easy access to raw cotton and positive outlook for edible oil as well as for cotton business in the short to medium term following the Government of India decision to lift ban on cotton exports. Akshar Cotton Industries was incorporated in August 2011 by Mr. Ashok Dudhagara along with two other partners. The firm is currently involved in cotton ginning and pressing business with its production unit located at Kalavad, Gujarat. The manufacturing plant of the firm is equipped with eighteen ginning machines and one pressing machine with the production capacity of 6,450 MTPA (metric tonnes per annum) of cotton bales. Recent Results For the year ended 31st March 2012 (provisional), the firm has reported an operating income of INR21.42 crore with profit before depreciation and tax of INR0.17 crore. DAEWOO MOTORS: Former Employees Yet to Receive Salaries, Benefits ----------------------------------------------------------------- The Hindu BusinessLine reports that nine years after the liquidation of Daewoo Motors India Ltd (DMIL), the Korean major's Indian arm, its erstwhile employees are yet to be paid salaries and other benefits. Labour Minister Mallikarjun Kharge, however, denied in the Lok Sabha on Monday that the troubled Indian arm's assets had been sold to Argentum Motors, the report relates. According to the report, Mr. Khare said in a written reply, : "The official liquidator has no knowledge as to the fact of selling the assets to Argentum Motors," and added that the official liquidator "has not sold DMIL and has not made any settlement to the third party." The car company was reported to have liquidated its assets in March 2003. The Minister admitted that the employees' claims had not been settled. Asked what the Government was doing in this regard, he said a committee had filed its report, which was pending adjudication before the Delhi Court. Daewoo Motors India went into liquidation pursuant to a wind-up order issued by the High Court of Delhi on August 28, 2004. The auction for the Daewoo plant had been opened last year by the Debt Recovery Tribunal but since there were was no one party willing to buy all the assets of the unit, the auction was scrapped and a fresh bidding process was restarted. KADER INVESTMENT: ICRA Reaffirms 'BB' Rating on INR10.2cr Loan -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB' outstanding on the INR10.20 crore fund based facilities of Kader Investment and Trading Company Private Limited. The outlook on the long-term rating is stable. ICRA has also reaffirmed the short-term rating of '[ICRA]A4' outstanding on the INR3.00 crore fund based facilities of the Company. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based facilities 10.20 [ICRA]BB reaffirmed (long-term) Fund based facilities 3.00 [ICRA]A4 reaffirmed (short-term) The rating reaffirmation considers the long-standing and established presence of the Liberty group in the seafood business and the medium scale of the group's operations in the highly fragmented seafood industry. The ratings are, however, constrained by the group's thin profitability, on the back of limited pricing flexibility arising from high competition, highly geared capital structure and stretched coverage indicators. While the group's long standing relationship with key clients (spanning 15-20 years) is expected to drive business, the slow pace of economic recovery in the group's major market-the United States of America and the ongoing euro zone crisis are likely to restrict revenue / margin growth over the medium term. The seafood industry remains vulnerable to the risk of raw material availability and pricing owing to climatic conditions, which may adversely impact revenue growth. Margins in the business also remain vulnerable to any sharp fluctuations in foreign exchange rates. ICRA has considered the consolidated business / financial performance of the six entities (Devi Marine Food Exports Private Limited, Universal Cold Storage Private Limited, Liberty Frozen Foods Private Limited, Kader Exports Private Limited, Kader Investment and Trading Company Private Limited and M/s. Premier Marine Products) engaged in export of seafood, for the purpose of ratings in view of the common management and close operational linkages between these entities. About Kader Investment Kader Investment and Trading Company Private Limited is primarily engaged in the processing and export of seafood (largely shrimps). The Company's seafood processing plant is located in Tuticorin (Tamil Nadu). The Company forms part of the Liberty group (belongs to Kader family), which through its flagship company Liberty Oil Mills Limited is engaged in processing and marketing cooking oils and vanaspati. The group entered into the seafood business in 1982 and presently has five seafood processing plants at Andhra Pradesh (Bhimavaran and Vishakapatnam) and at Tamil Nadu (Mandapam and Turicorin). The group exports seafood largely to the US, Europe and Japan. The group deals with a variety of marine products ranging from aqua-cultured (L. vannamei), freshwater and sea caught shrimps (Black Tiger, Brown tiger, White and Flower Shrimps) to various other seafood under brand names Unistar, Anchor, U, Petals, Meizen, Vital and Premier. Recent Results The Company has reported net profit of INR0.1 crore on an operating income of INR22.7 crore during 2011-12 (according to unaudited results) as against net profit of INR0.04 crore on an operating income of INR13.1 crore in 2010-11. LAMBODHARA TEXTILES: Fitch Affirms Nat'l Long Term Rating at 'BB' ----------------------------------------------------------------- Fitch Ratings has affirmed India-based Lambodhara Textiles Limited's National Long-Term rating at 'Fitch BB(ind)'. The Outlook is Stable. The ratings reflect Lambodhara's deteriorated credit metrics for FY12 (year end March) because of its debt-funded INR201m capex for a second wind mill and modernisation of its facilities. In FY12, interest cover fell to 1.97x (FY11: 3.06x) and financial leverage (debt/EBIDTA) increased to 5.75x (4.57x) due to an increase in debt to INR543m (INR394m). Fitch expects credit metrics to deteriorate further considering the company's another debt-funded capex for FY13 for modernisation and expansion. The ratings continue to be constrained by the company's modest scale of operations as indicated by a low revenue base of INR746m in FY12 (FY11: INR764m). The ratings continue to reflect Lambodhara's over 15-year operational track record in manufacturing viscose yarn and polyester yarn. The ratings also reflect the company's long- standing relationships with its customers and its niche position in the domestic market for value-added products of fancy yarn and slub yarn. Fitch expects Lambodhara's EBIDTA margins to improve during FY13 through a reduction in its power costs. Power generated by the company's two wind mills, which have started operations from early FY13, is supplied to the state power utility and its value will be offset against the gross power bill. EBIDTA margin for Q1FY13 was 15.9% compared with FY12 EBIDTA margins of 12.7%. WHAT COULD TRIGGER A RATING ACTION? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- EBIDTA DSCR below 1.2x and interest coverage below 2.0x -- any cost and time overruns in the proposed capex resulting in higher-than-projected debt levels Positive: Future developments that may lead to positive rating action include debt/EBIDTA below 4x from a sustained improvement EBIDTA margins. Rating actions on Lambodhara's debt instruments: -- INR160m fund-based working capital limits: affirmed at National Long-Term 'Fitch BB(ind)' and National Short-Term ' Fitch A4+(ind)' -- INR15m non-fund-based working capital limits: affirmed at National Long-Term 'Fitch BB(ind)' and National Short-Term 'Fitch A4+(ind)' -- Outstanding INR255.17m long-term loans: affirmed at National Long-Term 'Fitch BB(ind)' LIBERTY FROZEN: ICRA Reaffirms 'BB' Rating on INR6.7cr Loan ----------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB' outstanding on the INR6.70 crore1 fund based facilities of Liberty Frozen Foods Private Limited. The outlook on the long- term rating is stable. ICRA has also reaffirmed the short-term rating of '[ICRA]A4' outstanding on the INR6.00 crore fund based facilities and INR0.50 crore non-fund based facilities of the Company. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based facilities (LT) 6.70 [ICRA]BB reaffirmed Fund based facilities (ST) 6.00 [ICRA]A4 reaffirmed Non-fund based facilities 0.50 [ICRA]A4 reaffirmed (short-term) The rating reaffirmation considers the long-standing and established presence of the Liberty group in the seafood business and the medium scale of the group's operations in the highly fragmented seafood industry. The ratings are, however, constrained by the group's thin profitability, on the back of limited pricing flexibility arising from high competition, highly geared capital structure and stretched coverage indicators. While the group's long standing relationship with key clients (spanning 15-20 years) is expected to drive business, the slow pace of economic recovery in the group's major market-the United States of America and the ongoing euro zone crisis are likely to restrict revenue / margin growth over the medium term. The seafood industry remains vulnerable to the risk of raw material availability and pricing owing to climatic conditions, which may adversely impact revenue growth. Margins in the business also remain vulnerable to any sharp fluctuations in foreign exchange rates. ICRA has considered the consolidated business / financial performance of the six entities (Devi Marine Food Exports Private Limited, Universal Cold Storage Private Limited, Liberty Frozen Foods Private Limited, Kader Exports Private Limited, Kader Investment and Trading Company Private Limited and M/s. Premier Marine Products) engaged in export of seafood, for the purpose of ratings in view of the common management and close operational linkages between these entities. About Liberty Frozen LFFPL is primarily engaged in the processing and export of seafood (largely shrimps). The Company's seafood processing plant is located in Vishakapatnam (Andhra Pradesh). The Company forms part of the Liberty group (belongs to Kader family), which through its flagship company Liberty Oil Mills Limited is engaged in processing and marketing cooking oils and vanaspati. The group entered into the seafood business in 1982 and presently has five seafood processing plants at Andhra Pradesh (Bhimavaran and Vishakapatnam) and at Tamil Nadu (Mandapam and Turicorin). The group exports seafood largely to the US, Europe and Japan. The group deals with a variety of marine products ranging from aqua- cultured (L. vannamei), freshwater and sea caught shrimps (Black Tiger, Brown tiger, White and Flower Shrimps) to various other seafood under brand names Unistar, Anchor, U, Petals, Meizen, Vital and Premier. Recent Results The Company has reported net profit of INR0.2 crore on an operating income of INR37.3 crore during 2011-12 (according to unaudited results) as against net profit of INR0.1 crore on an operating income of INR26.0 crore in 2010-11. MAGNA PUBLISHING: ICRA Assigns 'B+' Rating to INR4.62cr Loans ------------------------------------------------------------- A long-term rating of '[ICRA]B+' has been assigned to the INR1.87 crore1 term loans and the INR2.75 crore, long-term, fund-based working capital facilities of Magna Publishing Company Limited. A short-term rating of '[ICRA]A4' has also been assigned to the INR1.50 crore, short-term, non-fund-based working capital facilities of the company. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term loan 1.87 [ICRA]B+ assigned Long-term, fund-based limits 2.75 [ICRA]B+ assigned Short-term, non-fund-based 1.50 [ICRA]A4 assigned limits The ratings factor in the vast experience of the promoters in the magazine publishing business, well established presence of its flagship magazine 'Stardust' for more than four decades in the film magazine segment, and diversified portfolio of magazines covering multiple segments. The ratings are, however, constrained by the stagnant scale of company's operations in a highly competitive and fragmented print magazine industry; intensified competition due to the entry of international players into niche categories and growth of digital media as an alternate to printed magazines; exposure to volatility in newsprint prices with limited ability to pass on increase in costs; stretched financial risk profile marked by low margins, high gearing and weak debt coverage indicators; and losses in the film production business. About Magna Publishing Magna Publishing Company Limited was established in 1971 as a partnership firm in the name of Lana Publishing Company, with Mr. Nari Hira and Mr. Lalu Bajaj as the partners, for providing media publishing services. In July 1979, the partnership firm was converted into a private limited company in the name of Lana Publishing Company Private Limited. In 1989, the name of the company was changed to Magna Publishing Company Limited. The company is currently managed by the promoter Mr. Nari Hira and his son Mr. Vikram Hira; entire shareholding of the company is with Hira family and group companies. The company launched its first magazine, Stardust, in 1971. While the company is primarily present in publishing of magazines and books, it is also engaged in production of films, distribution of movie videos (DVDs), managing exhibitions, and managing a book and video retail outlet (at Kala Ghoda, Mumbai). The company publishes the largest bouquet of special interest magazines in India with a circulation of over 28 lakh copies across the 13 magazines published by the company in FY2011. The 13 magazines published by the company include Stardust (in English and Hindi), Savvy, Society, Health & Nutrition (English and Hindi), Showtime, Society Interiors, Savvy Cook Book, Citadel, Savvy Fashion & Glamour, Society World of Luxury, and Star Week. The company estimates a combined readership of over 20 million readers. Recent Results Magna reported a profit after tax (PAT) of INR0.16 crore on an operating income of INR37.91 crore in FY2011, as against a PAT of INR0.10 crore on an operating income of INR32.78 crore in FY2010. NEELI AQUA: ICRA Rates INR5cr Loan at '[ICRA]B ---------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]B' and a short term rating of '[ICRA]A4' to INR5.00 crore proposed bank limits of Neeli Aqua Private Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Proposed limits 5.00 [ICRA]B/[ICRA]A4 assigned Rating Rationale The ratings are constrained by the highly fragmented nature of Indian shrimp exports industry given the low entry barriers, competition from other competing countries, and threat from other sea food varieties; and the exposure to Indian shrimp exports to factors like agro-climatic conditions and government policies (both in India and importing country) which can affect off-take and the availability and pricing of raw material. The ratings are also constrained by NAPL's limited track record of operations given that the company is in its first year of operation and thus exposed to risk associated with stabilization and scaling of operations. However, the ratings positively factor in the long experience of the promoters in the shrimp exports business; and satisfactory demand outlook for shrimps exports. Further, NAPL benefits from its favorable location in proximity to the major aquaculture belt of Andhra Pradesh. The company's ability to stabilize its operations, achieve the planned turnover and margins, and its capital structure in light of the planned debt funded capital expenditure would remain the key rating sensitivities. Neeli Aqua Private Limited was promoted by Mr. K. V. Ramana, who has more than 18 years of experience in shrimp business, in 2005 in order to undertake aqua-culture, processing and export of shrimps. After just one year, the operations of the company were discontinued in 2006. The operations were restarted under NAPL in April 2012. The company owns 54 shrimps ponds spread across 60 acres of land and has taken a hatchery from Kalyani Hatcheries on lease to produce shrimp seeds having a capacity to produce 100 million seeds per annum. The company has production capacity of 400 MT per annum of shrimps. PADMASRI RICE: ICRA Reaffirms 'B' Rating on INR24.97cr LT Loan -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]B' for INR24.97 crore fund-based limits and short-term rating of '[ICRA]A4' assigned to INR0.03 crore non fund based limits of Padmasri Rice Mill. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long Term Fund Based limits 24.97 [ICRA]B reaffirmed Short Term Non Fund Based 0.03 [ICRA]A4 reaffirmed limits The reaffirmation of the ratings takes into account, the weak financial profile characterized by low operating and net profit margins, stretched coverage indicators, agro climatic risks associated with the cultivation of paddy and highly regulated and intensely competitive nature of the industry. However the rating draws comfort from the long experience of the partners in the rice mill industry, the easy availability of paddy in the region where the mill is located and the commencement of operations at the new milling unit which is expected to drive the revenue growth in the future. About Padmasri Rice Padmasri Rice Mill was established in the year 2010 and is engaged in the milling of paddy and produces raw and boiled rice. It was prompted by Mr. P. Gangi Reddy and partners. The partners have more than 20 years of experience in the rice mill industry. The firm has a milling unit in Duppalapudi (East Godavari district) of Andhra Pradesh with a milling capacity of 1,20,000 MTPA. Recent Results In FY2011-2012, as per the audited accounts, the rice mill has recorded an operating income of INR55.64 crore and an operating profit of INR3.49 crore as against an operating income of INR35.99 crore and an operating profit of INR1.96 crore in (9M) FY 2010-2011. PREMIER MARINE: ICRA Reaffirms 'BB' Rating on INR12.88cr Loan ------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB' outstanding on the INR12.88 crore1 fund based facilities of Premier Marine Products. The outlook on the long-term rating is stable. ICRA has also reaffirmed the short-term rating of '[ICRA]A4' outstanding on the INR12.00 crore fund based facilities and INR6.12 crore non-fund based facilities of the Firm. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based facilities 12.88 [ICRA]BB reaffirmed (long-term) Fund based facilities 12.00 [ICRA]A4 reaffirmed (short-term) Non-fund based facilities 6.12 [ICRA]A4 reaffirmed (short-term) The rating reaffirmation considers the long-standing and established presence of the Liberty group in the seafood business and the medium scale of the group's operations in the highly fragmented seafood industry. The ratings are, however, constrained by the group's thin profitability, on the back of limited pricing flexibility arising from high competition, highly geared capital structure and stretched coverage indicators. While the group's long standing relationship with key clients (spanning 15-20 years) is expected to drive business, the slow pace of economic recovery in the group's major market-the United States of America and the ongoing euro zone crisis are likely to restrict revenue / margin growth over the medium term. The seafood industry remains vulnerable to the risk of raw material availability and pricing owing to climatic conditions, which may adversely impact revenue growth. Margins in the business also remain vulnerable to any sharp fluctuations in foreign exchange rates. ICRA has considered the consolidated business/financial performance of the six entities (Devi Marine Food Exports Private Limited, Universal Cold Storage Private Limited, Liberty Frozen Foods Private Limited, Kader Exports Private Limited, Kader Investment and Trading Company Private Limited and M/s. Premier Marine Products) engaged in export of seafood, for the purpose of ratings in view of the common management and close operational linkages between these entities. Entity / Group Profile PMP is primarily engaged in the processing and export of seafood (largely shrimps). The Firm's seafood processing plant is located in Mandapam (Tamil Nadu). The Firm forms part of the Liberty group (belongs to Kader family), which through its flagship company Liberty Oil Mills Limited is engaged in processing and marketing cooking oils and vanaspati. The group entered into the seafood business in 1982 and presently has five seafood processing plants at Andhra Pradesh (Bhimavaran and Vishakapatnam) and at Tamil Nadu (Mandapam and Turicorin). The group exports seafood largely to the US, Europe and Japan. The group deals with a variety of marine products ranging from aqua- cultured (L. vannamei), freshwater and sea caught shrimps (Black Tiger, Brown tiger, White and Flower Shrimps) to various other seafood under brand names Unistar, Anchor, U, Petals, Meizen, Vital and Premier. Recent Results The Firm has reported net profit of INR0.3 crore on an operating income of INR76.7 crore during 2011-12 (according to unaudited results) as against net profit of INR0.2 crore on an operating income of INR53.1 crore in 2010-11. RELIABLE AUTOTECH: ICRA Assigns 'BB' Rating on INR55.66cr Loans --------------------------------------------------------------- A long-term rating of '[ICRA]BB' has been assigned to the INR25.66 crore term loans and INR30.00 crore long-term, fund- based working capital facilities of Reliable Autotech Private Limited. A short-term rating of '[ICRA]A4+' has also been assigned to the INR23.04 crore short-term, non-fund based limits of the company. The outlook on the long-term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long-term loans 25.66 [ICRA]BB assigned Long-term, fund-based 30.00 [ICRA]BB assigned working capital facilities Short-term, fund-based (27.00) [ICRA]A4+ assigned working capital facilities Short-term, non-fund-based 23.04 [ICRA]A4+ assigned working capital facilities The ratings take into account the established track record of the promoters in the auto components industry, long-standing business relationship with its key customer (M&M), robust revenue growth over the last two fiscals on the back of growth in volumes from existing customers and addition of new key customers, superior tooling and design facilities, and reduction in client concentration risks with the addition of new customers over the years. The ratings, however, are constrained by the stretched capital structure and moderate coverage indicators, pricing pressures from OEMs given the competitiveness in the domestic auto industry, slowdown in domestic auto industry and in exports from the tractor segment. The ratings are also constrained by the vulnerability of margins to fluctuations in raw material prices, though the same is partially mitigated by the periodic revision in prices by the major clients, Since, the company is currently utilizing ~80% of its production capacity, future long-term revenue growth would necessitate significant capital expenditure and company's ability to fund the same without stretching the capital structure further, remains to be a key rating sensitivity. Reliable Autotech Private Limited, incorporated in 1996 by Mr. Rajendra Bagwe, Mr. Devendra Bapat and Mr. Amol Chitnis, is in the business of manufacturing heavy pressed parts, automotive components and tools and dies for the automotive sector. The promoters are in this field of business since 1985. The company has two manufacturing facilities in Nashik and one in Pune. The company's customers include M&M, John Deere, Benteler Automotive India Pvt. Ltd., Volkswagen India Pvt. Ltd., Renault India and Tata Motors. The company is largely catering to the UV and tractor segments. RAPL is ISO/TS 16949:2009, EMS-ISO 14001:2004, OHSAS 18001:2007 and ISO 9001:2008 certified. Recent Results RAPL reported a profit after tax (PAT) of INR8.74 crore on an operating income of INR270.65 crore in FY2012, as against a PAT of INR4.85 crore on an operating income of INR194.85 crore in FY2011. SAHARA INDIA: High Court Orders Group to Refund INR24,000cr ----------------------------------------------------------- Deccan Herald reports that India's Supreme Court on Friday directed two of Sahara Group's companies to refund around INR24,000 crore to their investors within three months with 15% interest per annum. Deccan Herald relates that in stinging observations against the companies for violating rules and regulations in raising funds from common investors, a bench of justices K S Radhakrishnan and J S Khehar said that such economic offences must be dealt with "iron hand". According to the report, if the companies -- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) -- fail to refund the amount then the Securities & Exchange Board of India can attach properties and freeze bank accounts of the companies. Deccan Herald says the Court also appointed one of its retired judges Justice B N Aggarwal to oversee the action taken by SEBI against the two Sahara firms. "Saharas (SIRECL & SHICL) would refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with interest @ 15% per annum to SEBI from the date of receipt of the subscription amount till the date of repayment, within a period of three months from today," the bench, as cited by the Deccan Herald, said. According to Deccan Herald, SIREC had collected INR19,400.87 crore on March 13, 2008 and SHICL had collected INR6,380.50 crore. But the total balance on August 31 is INR24,029.73 crore after premature redumption. The report notes that the group might have to fork out around INR38,000 crore as of now which includes the principal amount of INR24,029.73 and interest of around INR14,000. Taking into account the reluctance of the group in providing financial details including information about the investors, the bench said that the SEBI would probe into the issue, according to the report. Deccan Herald says the bench directed Saharas to furnish all documents in their custody to the regulator. The bench said that civil and criminal liability should be imposed on the company for indulging in such economic offence, adds Deccan Herald. Sahara India Pariwar is a major entity on the corporate scene having diversified business interests that include Finance, Infrastructure & Housing, Media & Entertainment, Consumer Merchandise Retail Venture, Manufacturing and Information Technology. SAMRAT AUTO: ICRA Rates INR8.5cr Loan at '[ICRA] B+' ---------------------------------------------------- ICRA has assigned an '[ICRA]B+' rating to the INR8.5crore cash credit facility of Samrat Automobiles Pvt. Ltd. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit 8.5 [ICRA] B+ Assigned The rating takes into account the stretched liquidity position of SAPL, high utilisation of the working capital limits reducing the financial flexibility of the company, limited geographical presence with all three showrooms being located in the State of Bihar, adverse financial profile characterised by low profitability, nominal cash accruals, aggressive capital structure and weak debt coverage indicators. The rating takes into consideration the healthy revenue mix from the portfolio of products, with passenger transportation segment contributing around 40% to sale of new vehicles, and demonstrated ability of the promoters to regularly infuse equity to support SAPL's operations. ICRA also takes note of the prevailing high interest rates and a slowdown in the automobile industry, which could impact SAPL's business. Established in 2006, SAPL is TML's authorized dealer for the sale of medium and light commercial vehicles as well as for services and sale of spares in Bihar. SAPL has three showrooms and three workshops (one each in the city of Ara, Buxar and Patna). Recent Results SAPL reported a net profit of INR0.48 crore (provisional) during FY12 on an OI of INR52.52 crore (provisional) as against net profit of INR0.40 crore and OI of INR39.66 crore during FY11. TOPLINK MOTORS: ICRA Assigns 'BB-' Rating to INR10cr Loans ---------------------------------------------------------- ICRA has assigned an '[ICRA]BB-' rating to the INR2.00 crore cash credit and INR8.00 crore cash credit-inventory funding facilities of Toplink Motors Private Limited. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limits (Cash Credit) 2.00 [ICRA]BB- assigned Fund Based Limits (Cash Credit- 8.00 [ICRA]BB- assigned Inventory Funding) The rating takes into account the experience of the promoters in the automobile dealership business and significant growth in turnover in 2011-12, which is primarily supported by the increase in the volume of sale of new cars. The rating, however, factors in the prevailing high interest rates as well as fuel prices in the country, which are likely to have a sobering impact on sales of cars in the short term at least. The rating continues to be impacted by the intense competition in the automobile dealership business, resulting in low operating profitability. Low net profit margin and high gearing reflects the company's weak financial profile. Incorporated in 2009, TMPL is engaged in the automobile dealership business, with its showrooms and workshop located at Ranchi in the state of Jharkhand. The company is an authorized dealer of Toyota Kirloskar Motor Private Limited (TKM) in the passenger vehicle segment and is engaged in sales and service of vehicles along with sale of spare parts in Jharkhand. Recent Results The company reported a net profit of INR0.48 crore (provisional) on an operating income of INR72.16 crore (provisional) in 2011-12 as compared to a net loss of INR0.11 crore on an operating income of INR21.04 crore in 2010-11. ==================== N E W Z E A L A N D ==================== BELGRAVE FINANCE: Ex-Director Face 3-Year Jail Terms ---------------------------------------------------- The Serious Fraud Office said Shane Joseph Buckley, former Belgrave Finance Limited Director, was sentenced to three years imprisonment in the Auckland District Court on Aug. 30, 2012. Mr. Buckley pleaded guilty in May to 19 charges laid by the Serious Fraud Office (SFO) of theft by a person in a special relationship, and four charges of false statement by promoter under the Crimes Act. He also pleaded guilty to one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee which had been brought by the Financial Markets Authority (FMA) in a joint prosecution. The charges related to more than $18 million of loans made by Belgrave to various entities between June 2005 and March 2008. SFO Chief Executive, Adam Feeley, said "While there may be understandable fatigue in some quarters with yet another finance company sentencing, it is important to the integrity of law enforcement to ensure that the legal system holds those responsible to account for their financial crimes. There are many new financial crimes that the SFO is progressively investigating, but these investigations will not be at the expense of successfully resolving the long tail of finance company prosecutions." Earlier this year, former Belgrave Finance Director, Stephen Charles Smith (43), and an associate, Raymond Tasman Schofield (49), were committed for trial on similar charges. The trial date is set for 29 April 2013. Based in Auckland, New Zealand, Belgrave Finance Limited -- http://www.belgrave.co.nz/-- engaged in property development financing. Belgrave Finance was placed into receivership in May 2008, owing an estimated 1,000 investors approximately NZ$22 million. The company's trustee, Covenant Trustee Company Limited, appointed Grant Graham and Brendan Gibson from KordaMentha as receivers. The company was liquidated in April 2010. CAPITAL + MERCHANT: Execs Get Jail Sentences Over Fraud ------------------------------------------------------- The Serious Fraud Office said directors of failed finance company, Capital + Merchant Finance Limited were sentenced to prison terms in the Auckland High Court on Aug. 31, 2012. Neal Medhurst Nicholls (56), Wayne Leslie Douglas (58) and Owen Francis Tallentire (65) had been found guilty in July of fraud charges brought by the Serious Fraud Office (SFO). Mr. Nicholls and Mr. Douglas were sentenced to seven and a half years, and Mr. Tallentire was sentenced to five years. SFO Chief Executive, Mr. Adam Feeley said "We have long maintained that the collapse of Capital + Merchant represented some of the worst excesses of the finance companies saga, and these sentences support that point of view. They will send a strong message to the commercial sector regarding the severity of punishment that will follow cynical crimes of these kinds." The charges relate to an SFO investigation into transactions involving approximately $28 million that occurred between 2004 and 2006. It was alleged that these transactions (collectively known as the Clyde 1 & 2 and Numeria 1 & 2 transactions) were entered into in breach of the restrictions contained in the company's trust deed, and resulted in trusts controlled by the accused receiving benefits totaling approximately $15.9 million. All defendants were found guilty in respect of the charges relating to Clyde 1 & 2, and Mr. Nicholls and Mr. Douglas were also found guilty in respect of the Numeria 1 transaction. Mr Nicholls and Mr. Tallentire were found not guilty in relation to the Numeria 2 transaction. The SFO are seeking to appeal not guilty verdicts against Mr. Nicholls and Mr. Douglas from a separate Capital + Merchant trial in April-May. These relate to the non-disclosure of alleged related party lending totalling approximately $14.4 million. About Capital + Merchant Capital + Merchant Finance Ltd, operating in property finance, was one of the bigger finance companies in New Zealand. Capital + Merchant Finance, along with subsidiary Capital + Merchant Investments Ltd., went into receivership on Nov. 23, 2007, due to breaches in respect of general security agreements issued by the companies in favor of creditor Fortress Credit Corporation (Australia) 11 Pty Ltd. Fortress appointed Tim Downes and Richard Simpson of Grant Thornton, chartered accountants, while trustee Perpetual Trust have called in KordaMentha. Capital + Merchant owes about NZ$190 million to 7,000 investors. Fortress reportedly has a prior charge over assets and was owed around NZ$70 million in total. ===================== P H I L I P P I N E S ===================== NICUA MINING: Suspends Operations; Sacks 180 Workers ---------------------------------------------------- Sarwell Q. Meniano at BusinessWorld Online reports that some 180 workers lost their jobs when Nicua Mining Corp. voluntarily suspended its operations in MacArthur, Leyte early this month due to an internal conflict. BusinessWorld relates that Exequiel R. Sarcauga, regional director of the Department of Labor and Employment (DoLE), said they will make sure that Nicua will pay separation benefits to the retrenched workers. According to the report, Mr. Sarcauga said the management is set to release on Aug. 30-31 the separation pay for 150 workers in the first batch. The second group will receive their pay next month. "Nicua filed a notice of closure early this month. Whether it is temporary or permanent closure, we have to make sure that the workers will get whatever is due to them," Mr. Sarcauga told BusinessWorld. BusinessWorld says the decision to halt operations came on the heels of a show cause order against the company for allegedly violating its Mineral Production Sharing Agreement (MPSA). BusinessWorld relates that the firm was cited for reportedly failing to prove the legitimacy of the employment of Chinese nationals; and the simultaneous transfer of four barges to another mining area causing the displacement of murky water to the Mahanod Creek. But Roger A. de Dios, Mines and Geosciences Bureau (MGB) regional director, said the government did not issue a suspension order against Nicua even after it was found to have violated provisions of its MPSA, the report notes. Mr. de Dios earlier said the poor quality of magnetite sand in Leyte along with the lack of endorsements from three villages covered by its MPSA may have affected operations, the report adds. Nicua Mining Corp. is a mining company based in Leyte, Philippines. ================= S I N G A P O R E ================= AMTEL INVESTMENT: Court Enters Wind-Up Order -------------------------------------------- The High Court of Singapore entered an order on Aug. 17, 2012, to wind up the operations of Amtel Investment Holdings Pte Ltd. DBS Bank Ltd filed the petition against the company. The company's liquidators are: Messrs Chay Fook Yuen Bob Yap Cheng Ghee Tay Puay Cheng c/o KPMG Services Pte. Ltd. 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 BELIER INVESTMENT: Creditors' Proofs of Debt Due Sept. 30 --------------------------------------------------------- Creditors of Belier Investment Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 30, 2012, to be included in the company's dividend distribution. The company's liquidator is: Teh Kwang Hwee c/o 1 Commonwealth Lane #07-32 One Commonwealth Singapore 149544 CIT GROUP: Creditors' Proofs of Debt Due Oct. 1 ----------------------------------------------- Creditors of CIT Group Capital Finance (Singapore) Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 1, 2012, to be included in the company's dividend distribution. The company's liquidators are: Low Sok Lee Mona Teo Chai Choo c/o Low, Yap & Associates 4 Shenton Way #04-01 SGX Centre 2 Singapore 068807 DONGFANG SHIPBUILDING: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Singapore entered an order on Aug. 17, 2012, to wind up the operations of Dongfang Shipbuilding (Group) Company Limited. Oceanside Development Group Limited filed the petition against the company. The company's liquidator is: Mr Yit Chee Wah c/o FTI Consulting (Singapore) Pte Ltd 8 Shenton Way #17-02A Singapore 068811 FLINSTONE MANUFACTURING: Court to Hear Wind-Up Petition Sept. 14 ---------------------------------------------------------------- A petition to wind up the operations of Flinstone Manufacturing Pte Ltd will be heard before the High Court of Singapore on Sept. 14, 2012, at 10:00 a.m. Leopad Synergy Pte Ltd filed the petition against the company on Aug. 21, 2012. The Petitioner's solicitors are: Messrs Lee Bon Leong & Co. 79 Anson Road, #11-01/02 Singapore 079906 ********* 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 ***