/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130219.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 Tuesday, February 19, 2013, Vol. 16, No. 35 Headlines A U S T R A L I A APOLLO RMBS: Fitch Affirms 'BB' Rating on Two Bond Classes PATINACK FARM: Tinkler Still Faces Insolvent Trading Claim PLUNKETT AND JOHNSON: Enters Into Voluntary Administration C H I N A CIFI HOLDINGS: Fitch Assigns 'B+' LT Issuer Default Rating CIFI HOLDINGS: S&P Assigns 'B+' CCR; Outlook Stable H O N G K O N G EXTRA LAND: Members' Final Meeting Set for March 18 FINEAST TRADING: Members' Final Meeting Set for March 15 FUBON CAPITAL: Creditors' Proofs of Debt Due March 8 G & O LIMITED: Commences Wind-Up Proceedings GRAND MARINE: Members' and Creditors Meetings Set for March 12 GREEN POWER: Creditors' Proofs of Debt Due March 1 HUNG CHUN: Commences Wind-Up Proceedings IN HOUSE: Creditors' Proofs of Debt Due Feb. 25 INTER OPEN: Members' Final Meeting Set for March 15 KYT LIMITED: Commences Wind-Up Proceedings LEKSON MAID: Creditors' Proofs of Debt Due March 11 MAX TEAM: Members' Final Meeting Set for March 11 MEGA DOME: Placed Under Voluntary Wind-Up Proceedings SEAO AUDIO: Creditors' Proofs of Debt Due April 30 SKY WARD ASIA: Creditors' Proofs of Debt Due March 4 SKY WARD: Creditors' Proofs of Debt Due March 4 SINO KINETIC: Commences Wind-Up Proceedings SPX PROCESS: Creditors' Proofs of Debt Due March 1 SUNRICH PRODUCTS: Placed Under Voluntary Wind-Up Proceedings TECHCENTRE LIMITED: Creditors' Proofs of Debt Due March 15 TIMS SYSTEMS: Creditors' Proofs of Debt Due Feb. 22 UNION WISE: Placed Under Voluntary Wind-Up Proceedings I N D I A ANDAMAN SEA: CRISIL Reaffirms 'B-' Rating on INR403.8MM Loans B. SONI: CRISIL Assigns 'B+' Rating to INR150MM Loans CHARISMA BUILDERS: CRISIL Reaffirms 'BB-' Rating on INR600M Loans G. M. OVERSEAS: CRISIL Rates INR150MM Cash Credit at 'B+' JDC TRADERS: CRISIL Reaffirms 'BB-' Rating on INR94MM Loans M.P.S. STEEL: CRISIL Reaffirms 'D' Ratings on INR1.03BB Loans OGUN STEEL: Delay in Loan Payment Cues CRISIL to Junk Ratings PARAGON STEELS: Delay in Loan Payment Cues CRISIL to Junk Ratings RAMKRUSHNA COTGIN: CRISIL Junks Ratings Over Late Loan Payment SHETKARI MAHILA: CRISIL Reaffirms 'B-' Rating on INR265.2MM Loan SPECIALITY SILICA: CRISIL Up Rating on INR172.5MM LOANS to 'C' SRI BALMUKUND: CRISIL Reaffirms 'BB-' Rating on INR149.5MM Loans J A P A N SHARP CORP: S&P Cuts Senior Unsecured Debt Rating to 'B' N E W Z E A L A N D CAPITAL + MERCHANT: Two Directors Plead Guilty to FMA Chargers PIKE RIVER: Receivership Outcome Unclear S I N G A P O R E ARTICON CONSTRUCTION: Creditors Get 47.29628% Recovery on Claims ASHCRAFT HOLDINGS: Court to Hear Wind-Up Petition Feb. 22 CHIAN KEONG: Court Enters Wind-Up Order ENSAFE OFFSHORE: Court to Hear Wind-Up Petition March 1 HILLCREST PUBLICATIONS: Creditors Get 37.004% Recovery on Claims X X X X X X X X * BOND PRICING: For the Week Feb. 11 to Feb. 15, 2013 - - - - - ================= A U S T R A L I A ================= APOLLO RMBS: Fitch Affirms 'BB' Rating on Two Bond Classes ---------------------------------------------------------- Fitch Ratings has affirmed 10 classes of bonds issued from four Apollo RMBS transactions. All four transactions are backed by pools of Australian conforming residential full-documentation mortgages originated by Suncorp-Metway Limited (A+/Stable/F1). Apollo Series 2007-1E (Apollo 2007-1E) AUD243.4m Class 1A (ISIN AU0000AOYHA7) affirmed at 'AAAsf'; Outlook Stable EUR180.5m Class 2A (ISIN XS0299266972) affirmed at 'AAAsf'; Outlook Stable AUD33.7m Class B (ISIN AU3FN0002580) affirmed at 'BBsf'; Outlook Stable Apollo Series 2009-1 (Apollo 2009-1) AUD528.2m Class A3 (ISIN AU3FN0008697) affirmed at 'AAAsf'; Outlook Stable AUD147.8m Class B (ISIN AU3FN0008975) affirmed at 'BBsf'; Outlook Stable Apollo Series 2011-1 (Apollo 2011-1) AUD615.3m Class A1 (ISIN AU3FN0014502) affirmed at 'AAAsf'; Outlook Stable AUD250m Class A2 (ISIN AU3FN0014510) affirmed at 'AAAsf'; Outlook Stable AUD65m Class AB (ISIN AU3FN0014528) affirmed at 'AAAsf'; Outlook Stable Apollo Series 2012-1 (Apollo 2012-1) AUD863.8m Class A1 (ISIN AU3FN0016515) affirmed at 'AAAsf'; Outlook Stable AUD52m Class AB (ISIN AU3FN0016523) affirmed at 'AAAsf'; Outlook Stable The affirmations reflect Fitch's view that the credit quality and performance of the loans in the respective collateral pools remain in line with the agency's expectations and that the available credit enhancement levels are able to support the notes' current ratings. Except for Apollo 2007-1E none of the transactions have experienced any defaults to date. The last foreclosure in the portfolio backing Apollo 2007-1E was in April 2011, meaning the total number of foreclosures to date remains at seven, the same as at the time of the last rating action in March 2012. Losses on the underlying mortgages have been covered primarily by the lenders' mortgage insurance provider, QBE Lenders Mortgage Insurance Pty Limited ('AA-'/Stable). The remaining losses were covered by excess spread. All loans in each of the underlying portfolios are covered by mortgage insurance from QBE. Fitch will continue to monitor the recent flooding and bush fires and any effect they may have on the transactions. PATINACK FARM: Tinkler Still Faces Insolvent Trading Claim ---------------------------------------------------------- Paddy Manning at smh.com.au reports that Anthony Matthews, the liquidator of Nathan Tinkler's private vehicle Patinack Farm Administration, is still considering an insolvent trading claim against the former billionaire and fellow director Troy Palmer. Mr. Matthews was appointed to wind up Patinack Farm Administration in November over an unpaid AUD16,978 debt owed to the Workcover Corporation of South Australia. The non-payment was due to an administrative error, Tinkler Group claimed. But PFA also had debts of AUD4.6 million to the tax office and a further AUD417,244 in unpaid superannuation, and these remain unpaid, smh.com.au discloses citing minutes of a creditors meeting held on Feb. 15 and filed with the corporate regulator. At the meeting, the report relates, Mr. Matthews told the ATO that he had notified insurers of the Patinack Farm group of a potential insolvent trading claim. "I have spoken with my solicitor about it and we do need to complete further work and investigations to formulate a claim," the report quotes Mr. Matthews as saying. Mr. Tinkler's legal battles continue, with the ATO confirming it will seek to wind up one of his main private entities, Tinkler Group Holdings Administration, over unspecified debts, smh.com.au said. Two of Mr. Tinkler's companies, Mulsanne Resources and Patinack Farm Administration, are in liquidation and another, TGHA Aviation, is in receivership. The ATO has also filed wind-up proceedings against Queen St Capital. PLUNKETT AND JOHNSON: Enters Into Voluntary Administration ---------------------------------------------------------- dissolve.com.au reports that Plunkett and Johnson has entered voluntary administration with no plans other than to have the business wind up. Operations in the Artarmon-based company have stopped since Feb. 8 upon appointment of Dean Willcock Shepard as administrators. Around 15 employees are affected by the recent development of the company owned by Alex Imre and Steve Farrell, according to dissolve.com.au. According to dissolve.com.au, the administrators said it is too early to say what the situation is in reference to ongoing maintenance contracts that the company currently holds. A report and a notice of meeting will be issued to creditors shortly. Plunkett and Johnson is a service and engineering company. The company worked for major printing companies such as Hannanprint. ========= C H I N A ========= CIFI HOLDINGS: Fitch Assigns 'B+' LT Issuer Default Rating ---------------------------------------------------------- Fitch Ratings has assigned China-based CIFI Holdings (Group) Co. Ltd's Long-Term Issuer Default Rating of 'B+' with a Positive Outlook. Fitch has also assigned CIFI a senior unsecured rating of 'B+' and its proposed USD senior unsecured notes an expected rating of 'B+(EXP)'. Rating Action Rationale The notes are rated at the same level as CIFI's senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received. CIFI's ratings reflect its high leverage and low margins as well as its high sales turnover model and improving credit profile. Its net debt/adjusted inventory improved to around 30% in end-2012 from 48% at end-2011, after the company's IPO. Nonetheless, the company's high growth target, which requires a sharp increase in new project launches in 2013, may limit its ability to keep leverage at low levels. The company's focus on mass market housing also means that its operating margins are lower relative to that of its peers. Fitch expects the company to achieve EBITDA margins in the high teens over the next two to three years, compared with 20%-25% for past two years. CIFI's credit profile has been improving since the company standardised its product types and shifted its focus to mass market housing in 2011. The agency expects this model to result in a rapid rise in sales turnover and contracted sales. Fitch estimates CIFI's contracted sales/total debt to have been 1.1x for 2012. The Positive Outlook reflects Fitch's view that CIFI is likely to grow to a scale commensurate with a 'BB-' profile within the next 12 to18 months. Its diversified presence in Yangtze River Delta, Bohai Economic Rim, and Central Western Region also reduces local uncertainties and provides more room to scale up relative to homebuilders in the 'B' rating category. Rating Sensitivities Positive: Future developments that may, individually or collectively, lead to positive rating action include: - Delivery of contracted sales target in 2013 (2012: CNY9.5bn) - Maintaining the current strategy of high cash flow turnover, such that contracted sales/total debt is sustained over 1.3x - EBITDA margin over 18% on a sustained basis - Net debt/adjusted inventory falling below 35% on a sustained basis Negative: Future developments that may, individually or collectively, lead to negative rating action include: - Failure to meet the above guidelines over the next 12-18 months, which would lead to the Outlook being revised to Stable CIFI HOLDINGS: S&P Assigns 'B+' CCR; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned its 'B+' long-term corporate credit rating to Shanghai-based property developer CIFI Holdings (Group) Co. Ltd. The outlook is stable. S&P also assigned its 'cnBB' Greater China regional scale rating to the company. At the same time, S&P assigned its 'B' issue rating and 'cnBB-' Greater China regional scale rating to CIFI's proposed issue of benchmark-size U.S.-dollar-denominated senior unsecured notes. The rating on the proposed notes is subject to S&P's review of the final issuance documentation. "The rating on CIFI reflects our view of the company's small land bank and weak profitability in comparison with peers', and its untested financial discipline due to rapid business expansion," said Standard & Poor's credit analyst Dennis Lee. "CIFI's strong growth and solid foothold in Shanghai, flexible market positioning, and good operating efficiency related to its high asset turnover model temper these weaknesses." S&P views CIFI's business risk profile as "weak" and its financial risk profile as "aggressive." The issue rating is one notch lower than the long-term corporate credit rating on CIFI to reflect S&P's opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default. CIFI's small land bank limits its growth potential. It is uncertain if the company can acquire enough land at reasonable prices to feed its business model, which is focused on fast sales turnover. S&P expects CIFI to largely fund its new land purchases through debt. The company's discipline in financial management is untested due to its short record and aggressive growth history. There is also a risk that the company may not have sustainable access to capital at a reasonable cost to finance growth. CIFI's profit margin is lower than that of most of its peers due to the company's mass-market positioning and the high asset turnover of its business model. S&P anticipates that CIFI's financial performance will improve gradually in the next one to two years. The company's profitability will also likely improve due to a recovery in China's property market and the company's mass-market positioning. S&P expects CIFI to maintain its fast growth in the coming two years based on its project sales and launch schedule. S&P views CIFI's market strategy as flexible. The company recently adjusted its product positioning to target mass-market first-time home buyers and upgraders. This strategy is critical for CIFI's business model and helps the company to weather the recent government measures to curb investment demand. "The stable outlook reflects our expectation that CIFI's property sales will improve and its profit margin will likely stabilize in the next 12 months," said Mr. Lee. "We also anticipate that management will adopt a less aggressive land acquisition strategy than in the past." S&P may lower the rating if: (1) CIFI's property sales are weaker than Chinese renminbi (RMB) 10 billion or its EBITDA margins are lower than 18% in the next 12 months; and (2) its debt-funded expansion is more aggressive than S&P expected, such that the EBITDA interest coverage is below 2x in the next 12 months. Conversely, S&P may raise the rating if CIFI's sales execution and financial management are good. A debt-to-EBITDA ratio of less than 4.5x on a sustained basis would indicate such improvement. ================ H O N G K O N G ================ EXTRA LAND: Members' Final Meeting Set for March 18 --------------------------------------------------- Members of Extra Land Investment Limited will hold their meeting on March 18, 2013, at 11:00 a.m., at No. 19B Wilson Road, in Hong Kong. At the meeting, Tsang Chun Ki, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FINEAST TRADING: Members' Final Meeting Set for March 15 -------------------------------------------------------- Members of Fineast Trading Limited will hold their final meeting on March 15, 2013, at 11:00 a.m., at Unit D, 12th Floor, Seabright Plaza, at 9-23 Shell Street, in Hong Kong. At the meeting, Chan Sek Kwan Rays, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FUBON CAPITAL: Creditors' Proofs of Debt Due March 8 ---------------------------------------------------- Creditors of Fubon Capital (HK) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 8, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 1, 2013. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower The Landmark, 15 Queen's Road Central, Hong Kong G & O LIMITED: Commences Wind-Up Proceedings -------------------------------------------- Members of G & O Limited, on Jan. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Cheung Hok Hin Alan Suen Fuk Yuen Bernie Suite 2302, 23/F Seaview Commercial Building 21 Connaught Road West, Sheung Wan Hong Kong GRAND MARINE: Members' and Creditors Meetings Set for March 12 -------------------------------------------------------------- Members and creditors of Grand Marine Holdings Limited will hold their meeting on March 12, 2013, at 2:30 p.m., and 2:45 p.m., respectively at Room 32B1, 32nd Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Dermot Agnew, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GREEN POWER: Creditors' Proofs of Debt Due March 1 -------------------------------------------------- Creditors of Green Power Health Products International Co. Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 1, 2013, to be included in the company's dividend distribution. The company's liquidators are Chow Cheuk Lap and Cheng Siu Hang. HUNG CHUN: Commences Wind-Up Proceedings ---------------------------------------- Members of Hung Chun Infotech Limited, on Jan. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Cheung Hok Hin Alan Suen Fuk Yuen Bernie Suite 2302, 23/F Seaview Commercial Building 21 Connaught Road West, Sheung Wan Hong Kong IN HOUSE: Creditors' Proofs of Debt Due Feb. 25 ----------------------------------------------- Creditors of In House International Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 25, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 30, 2013. The company's liquidator is: Ngan Lin Chun Esther 1902 MassMutual Tower 38 Gloucester Road Wanchai, Hong Kong INTER OPEN: Members' Final Meeting Set for March 15 --------------------------------------------------- Members of Inter Open International Limited will hold their meeting on March 15, 2013, at 10:00 a.m., at Unit D, 12th Floor, Seabright Plaza, at 9-23 Shell Street, in Hong Kong. At the meeting, Chan Sek Kwan Rays, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KYT LIMITED: Commences Wind-Up Proceedings ------------------------------------------- Members of KYT Limited, on Jan. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Cheung Hok Hin Alan Suen Fuk Yuen Bernie Suite 2302, 23/F Seaview Commercial Building 21 Connaught Road West, Sheung Wan Hong Kong LEKSON MAID: Creditors' Proofs of Debt Due March 11 --------------------------------------------------- Creditors of Lekson Maid Express Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 31, 2013. The company's liquidator is: Lee Kwok On Alexander Rooms 1901-2, Park-In Commercial Centre 56 Dundas Street, Kowloon MAX TEAM: Members' Final Meeting Set for March 11 ------------------------------------------------- Members of Max Team Holdings Limited will hold their meeting on March 11, 2013, at 2:30 p.m., at Rooms 1901-2, Park-In Commercial Centre, 56 Dundas Street, in Kowloon. At the meeting, Lee Kwok On Alexander, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MEGA DOME: Placed Under Voluntary Wind-Up Proceedings ----------------------------------------------------- At an extraordinary general meeting held on Feb. 1, 2013, creditors of Mega Dome Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Kwan Pak Kong Liu Chi Tat Stephen Rm. 1405-8, 14/F C C Wu Building 302-308 Hennessy Road Wanchai, Hong Kong SEAO AUDIO: Creditors' Proofs of Debt Due April 30 -------------------------------------------------- Creditors of Seao Audio Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 30, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 1, 2013. The company's liquidator is: Wong Leung Wai Room 2001-4, China Insurance Group Building 141 Des Voeux Road Central, Hong Kong SKY WARD ASIA: Creditors' Proofs of Debt Due March 4 ---------------------------------------------------- Creditors of Sky Ward Asia Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 4, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 29, 2013. The company's liquidator is: Kwong Chi Choi Oliver C C Kwong & Co Room 601, 6/F Tai Tung Building No. 8 Fleming Road Wanchai, Hong Kong SKY WARD: Creditors' Proofs of Debt Due March 4 ----------------------------------------------- Creditors of Sky Ward Global Management Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 4, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 29, 2013. The company's liquidator is: Kwong Chi Choi Oliver Room 601, 6/F, Tai Tung Building No. 8 Fleming Road Wanchai, Hong Kong SINO KINETIC: Commences Wind-Up Proceedings ------------------------------------------- Members of Sino Kinetic Limited, on Feb. 6, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Fung Kit Yee Unit B, 1/F Neich Tower, 128 Gloucester Road Wanchai, Hong Kong SPX PROCESS: Creditors' Proofs of Debt Due March 1 -------------------------------------------------- Creditors of SPX Process Equipment HK Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 28, 2013. The company's liquidators are: Ying Hing Chiu Chan Mi Har Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong SUNRICH PRODUCTS: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------ At an extraordinary general meeting held on Feb. 2, 2013, creditors of Sunrich Products Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Lui Wan Ho To Chi Man 17/F, Kam Sang Building 255-257 Des Voeux Road Central, Sheung Wan Hong Kong TECHCENTRE LIMITED: Creditors' Proofs of Debt Due March 15 ---------------------------------------------------------- Creditors of Techcentre Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 29, 2013. The company's liquidator is: Lam Ying Sui 10/F, Allied Kajima Building 138 Gloucester Road Wanchai, Hong Kong TIMS SYSTEMS: Creditors' Proofs of Debt Due Feb. 22 --------------------------------------------------- Creditors of Tims Systems Solutions Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 22, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 31, 2013. The company's liquidators are: Ng Man Fai Leung Sun Sunny 44/F, Office Tower Convention Plaza 1 Harbour Road Wanchai, Hong Kong UNION WISE: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------ At an extraordinary general meeting held on Jan. 31, 2013, creditors of Union Wise Enterprises Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chung Cheuk Ming Room 08, 5/F Chinachem Golden Plaza 77 Mody Road, Tsimshatsui East Kowloon, Hong Kong ========= I N D I A ========= ANDAMAN SEA: CRISIL Reaffirms 'B-' Rating on INR403.8MM Loans ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Andaman Sea Foods Pvt. Ltd. continue to reflect ASFPL's weak financial risk profile, marked by a negative net worth and below-average debt protection metrics, and susceptibility to risks inherent in the seafood industry. These rating weaknesses are partially offset by ASFPL's established position in the seafood export business and moderate operating efficiency. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10.0 CRISIL A4 (Reaffirmed) Export Packing Credit 125.0 CRISIL B-/Stable (Reaffirmed) Foreign Bill Discounting 65.0 CRISIL B-/Stable (Reaffirmed) Funded Interest Term 10.7 CRISIL B-/Stable (Reaffirmed) Loan Proposed Term Loan 7.1 CRISIL B-/Stable (Reaffirmed) Standby Line of Credit 30.0 CRISIL A4 (Reaffirmed) Working Capital 196.0 CRISIL B-/Stable (Reaffirmed) Term Loan Outlook: Stable CRISIL believes that ASFPL will continue to benefit over the medium term from the company's established position in the seafood export industry and its moderate operating efficiency. The outlook may be revised to 'Positive' in case the company registers significant increase in its scale of operations and operating margin, or in case of substantial improvement in capital structure most likely on account of sizable infusion of equity. Conversely, the outlook may be revised to 'Negative' if ASFPL undertakes a large, debt-funded capital expenditure programme or registers a material decline in its accruals, leading to deterioration in its liquidity. Update For 2011-12 (refers to financial year, April 1 to March 31), ASFPL registered an operating income of INR676 million, in line with CRISIL's expectations. The company's revenue growth is expected to remain flat over the medium term because of subdued demand from the export market, particularly Europe. However, ASFPL's operating margin of 8.6 per cent for 2011-12 was higher than expectations as well as historical levels, on account of its management's increasing focus on improving processes. ASFPL's operating margin has increased over the past few years, from that of 4.7 per cent in 2009-10. CRISIL believes that ASFPL will maintain its improved operating margin over the medium term. ASFPL's working capital requirements have been large, with the company maintaining an inventory level of 90 days on average. ASFPL's financial risk profile remains weak, marked by a negative net worth of INR117.9 million as on March 31, 2012, on account of foreign exchange forward losses incurred in 2008-09. ASFPL's net cash accruals (NCA) were modest at about 14.8 million for 2011-12; the NCA are expected to remain at similar levels over the medium term. However, the company's term loans were restructured in October 2012; the repayment of the same will now commence in March 2014, thereby providing cushion to ASFPL's liquidity. CRISIL, however, believes that ASFPL's liquidity will remain weak over the medium term, marked by modest accruals and high bank limit utilization. The company's bank limits were utilized at an average of 96 per cent over the 12 months through December 2012. For 2011-12, ASFPL reported a profit after tax (PAT) of INR14.8 million on net sales of INR649 million, against a PAT of INR12.8 million on net sales of INR619.9 million for 2010-11. ASFPL was set up in 1995 in Kolkata (West Bengal) by Mr. Amit Ranjan Mukherjee. It processes and exports cultured shrimp and fish. B. SONI: CRISIL Assigns 'B+' Rating to INR150MM Loans ----------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of B. Soni Jewellers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable (Assigned) Proposed Long-Term 80 CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflects BSJ's below average financial risk profile, marked by a high total outside liabilities to tangible net worth ratio, and weak debt protection metrics, geographical concentration in revenue profile, and exposure to intense competition. These rating weaknesses are partially offset by the extensive experience of BSJ's proprietor in the jewellery business and established relationships with customers and suppliers. Outlook: Stable CRISIL believes that BSJ will continue to benefit from its proprietors' extensive experience in the gold jewellery business. The outlook may be revised to 'Positive' if its financial risk profile improves significantly due to improvement in profitability margins or infusion of capital by the proprietor. Conversely, the outlook may be revised to 'Negative' if the firm's debt protection metrics deteriorate because of lower-than-expected growth in revenues and margins, larger-than-expected working capital requirements or a large debt funded capex Set up in 2005 as a proprietorship firm by Mr. Bharat Soni, BSJ is engaged in wholesale and retailing of gold and diamond studded jewellery such as necklaces, bracelets, earrings, cuffs, bangles, sets, etc. The firm operates through a showroom in Krishna Nagar, New Delhi. BSJ reported a net profit of INR0.77 million on net sales of INR805.5 million for 2011-12 (refers to financial year, April 1 to March 31), as against a net profit of INR0.91 million on net sales of INR463.0 million for 2010-11. CHARISMA BUILDERS: CRISIL Reaffirms 'BB-' Rating on INR600M Loans ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Charisma Builders continues to reflect the benefits that Charisma derives from comfortable financial risk profile and its proprietor's extensive experience in the real estate industry. These rating strengths are partially offset by Charisma's exposure to risks related to real estate development, and the firm's geographically concentrated and volatile revenue profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 46 CRISIL BB-/Stable (Reaffirmed) Overdraft Facility 171 CRISIL BB-/Stable (Reaffirmed) Proposed Long-Term 383 CRISIL BB-/Stable (Reaffirmed) Bank Loan Facility Outlook: Stable CRISIL believes that Charisma will continue to benefit over the medium term from its proprietor's extensive industry experience, and its large land bank. The outlook may be revised to 'Positive' in case of a sustainable improvement in the firm's revenues and accruals, while it maintains its debt protection metrics. Conversely, the outlook may be revised to 'Negative' if Charisma faces a subdued demand for any of its projects, thereby weakening its net cash accruals and hence its debt protection metrics, or if the firm provides further financial support to other group entities, thereby impacting its liquidity. Update Charisma's business risk profile remains constrained by high project implementation risk driven by delayed project execution. The firm's performance in 2011-12 (refers to financial year, April 1 to March 31) remained subdued, reflected in revenues of about INR68 million from its real estate business and INR39 million from its windmill business. This is mainly because of delay in execution of real estate projects. Currently, Charisma is executing three real estate projects (two residential and one commercial) in and around Chembur, Mumbai (Maharashtra), which will be completed from 2013-14 onwards; hence, CRISIL expects the firm's business risk profile to improve thereafter. However, the performance is likely to remain susceptible to any further delays in project execution owing to subdued demand. Charisma's financial risk profile remains healthy, supported by a comfortable net worth of INR815 million and low gearing of 0.32 times as on March 31, 2012, due to no significant project-linked term debt. However, the firm's cash accruals are low. CRISIL expects Charisma's financial risk profile to remain healthy, despite the expected large debt to be tied up for project-funding requirements, mainly supported by a comfortable net worth and expected gearing of below 1 time, over medium term. Charisma's liquidity is supported by non-project-linked working capital bank lines and the track record of funding support from its proprietor; however, its liquidity is constrained by substantial loans and advances extended towards its joint venture (JV) project, and insufficient cash flows from windmill power generation to service large term debt repayment obligations. The firm has non-project-linked working capital bank lines of INR171 million, which are availed against investments in marketable securities; the balance of such securities stood at over INR200 million as on March 31, 2012. Moreover, the promoters have supported the firm by way of fund infusion of INR68 million over the two years ended March 31, 2012. The incremental funding support from its proprietor has helped Charisma to meet its term debt obligations of about INR33.5 million per annum, in a timely manner in the absence of adequate cash flows from power generation. However, Charisma has extended significant loans and advances of about INR415 million to associate firms, which are also engaged in real estate development. Over the medium term, Charisma's liquidity is expected to remain moderate, supported by non-project linked working capital bank lines, though constrained by significant loans and advances extended to group entities and large term debt obligations. CRISIL believes that, over the medium term, Charisma's liquidity will remain susceptible to timely funding support from its proprietor. Charisma was set up by Mr. Sudhir V Shetty as a proprietorship firm in 1982. Initially, it developed a few properties, such as row houses, bungalows, and small residential buildings. Gradually, the firm began undertaking bigger projects, such as residential buildings providing apartments with two or three bedrooms plus a hall and kitchen, and commercial properties. Most of these projects are located in the eastern suburbs of Mumbai, such as Chembur, Sion, and Govandi. Charisma also set up a separate division for its wind power business, Pawan Shakti, in 2007-08. Currently, it has nine windmills under Pawan Shakti. G. M. OVERSEAS: CRISIL Rates INR150MM Cash Credit at 'B+' --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of G. M. Overseas. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable (Assigned) The rating reflects GMO's modest scale of operations in the highly fragmented rice milling industry, and weak financial risk profile marked by high gearing and weak debt protection metrics. These weaknesses are partially offset by GMO's strong raw material sourcing capability and partners' extensive experience in the rice milling industry. Outlook: Stable CRISIL believes that GMO will maintain its credit risk profile backed by promoter's industry experience. The outlook may be revised to 'Positive' if the firm's revenues and profitability increase substantially, leading to an improvement in its financial risk profile, or in case of significant infusion of capital by the partners, resulting in an improvement in GMO's capital structure. Conversely, the outlook may be revised to 'Negative' if the firm undertakes aggressive, debt-funded expansions, or if its revenues and profitability decline substantially, leading to weakening in its financial risk profile. GMO was set up by Mr. Gian Chand Garg in 1992 and is engaged in milling and processing of paddy. The firm is based out of Delhi. For 2011-12(refer to financial year, April 1 to March 31), reported a book profit of INR3.9 million on net sales on INR412.2 million against a book profit of INR2.5 million against a sales of INR361.2 million for 2010-11. JDC TRADERS: CRISIL Reaffirms 'BB-' Rating on INR94MM Loans ----------------------------------------------------------- CRISIL's ratings on the bank facilities of JDC Traders Ltd continue to reflect the benefits that JDC derives from its promoters' extensive experience in the plastic and paper trading industry and its established relationships with its key customers and suppliers. These rating strengths are partially offset by JDC's working-capital-intensive operations, supplier concentration, and average financial risk profile marked by a modest net worth, a moderate total outside liabilities to tangible net worth (TOLTNW) ratio, and low interest coverage ratio. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 84 CRISIL BB-/Stable (Reaffirmed) Proposed Long-Term 10 CRISIL BB-/Stable (Reaffirmed) Bank Long Facility Outlook: Stable CRISIL believes that JDC will continue to benefit over the medium term from its established relationships with its key suppliers and customers. CRISIL, however, also believes that JDC's scale of operations will remain modest, on account of the company's customer and supplier concentration. The outlook may be revised to 'Positive' in case JDC's capital structure improves significantly, most likely on account of more-than-expected cash accruals or sizeable equity infusion. Conversely, the outlook may be revised to 'Negative' in case JDC's working capital cycle lengthens or there is a decline in the company's sales or profitability. Update In 2012-13 (refers to financial year, April 1 to March 31), JDC is expected to generate an operating income in the range of INR900 million to INR950 million, in line with its operating income of around INR890 million in 2011-12. JDC's operating margin is expected to be in the range of 3 to 3.3 per cent in 2012-13 vis-a- vis that of 3.9 per cent in 2011-12. JDC has registered an operating margin in the range of 2.5 to 4 per cent over the past five years; the low operating margin is because of the trading nature of the company's business. JDC's TOLTNW ratio is expected to remain in the range of 3 to 4 times over the medium term vis-a-vis its TOLTNW ratio of 3 times as on March 31, 2012. Expected increase in TOLTNW is driven by higher utilisation of the company's cash credit limit as a result of increase in its working capital requirements from its increasing scale of operations; however, the same is expected to be partially offset by better working capital management, as the company's debtors are expected to improve to around 45 days over the medium term vis-a-vis debtors of 53 days in 2011-12. JDC's interest coverage ratio is expected to range between 1.8 to 2.0 times over the medium, in line with past trends. The company has moderate liquidity, marked by high bank limit utilisation of 89 per cent over the 9 months through December 2012 and expected cash accruals of around INR8 million vis-a-vis its debt obligations of INR1.1 million in 2012-13. CRISIL believes that JDC's bank lines will remain highly utilised on account of its working-capital- intensive nature of operations. For 2011-12, JDC reported a profit after tax (PAT) of INR4.5 million on net sales of INR849.3 million, against a PAT of INR6.1 million on net sales of INR1.03 billion for 2010-11. JDC was set up a private limited company in 1999 by the Chopra family of New Delhi; it was reconstituted as a closely held public limited company in 2004. JDC trades in bi-axially oriented polypropylene (flexible packaging) films and paperboard laminates. M.P.S. STEEL: CRISIL Reaffirms 'D' Ratings on INR1.03BB Loans ------------------------------------------------------------- CRISIL's ratings on the bank facilities of M.P.S. Steel Castings Pvt. Ltd. (MPS Steel; part of the MPS group) continue to reflect instances of delay by MPS Steel in servicing its term debt; the delays have been caused by the MPS group's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 222.90 CRISIL D (Reaffirmed) Cash Credit 330.00 CRISIL D(Reaffirmed) Letter of Credit 477.20 CRISIL D(Reaffirmed) The MPS group also has a weak financial risk profile, marked by a high gearing and weak debt protection metrics, and is exposed to risks related to volatility in raw material prices and to cyclicality in the steel industry. However, the group benefits from its established position in the central Kerala market, and its partially integrated operations. For arriving at the ratings, CRISIL has combined the financial and business risk profiles of MPS Steel, Ogun Steel Rolling Mills Pvt Ltd, Ogun Steels Pvt Ltd, and Paragon Steels Pvt Ltd. This is because these entities, together referred to as the MPS group, have a common set of promoters, are in the same line of business, and have strong intra-group operational linkages, including fungible funds. The MPS group was established in 1969 by Mr. M Paramsivam. It comprises four entities, namely, MPS Steel, OSRM, OSPL, and Paragon Steels. MPS Steel, set up in 1996, manufactures sponge iron and mild steel ingots. MPS Steel also has a captive power plant at its sponge iron manufacturing site. Paragon Steel, set up in 1994, manufactures thermo-mechanically treated (TMT) bars and ingots; its plant is in Palakkad (Kerala). OSRM, established in 2009, manufactures TMT bars; its unit is at Sulur (Tamil Nadu). OSPL was also set up in 2009; it is the trading arm of the group. For 2011-12 (refers to financial year, April 1 to March 31), the MPS group reported a profit after tax (PAT) of INR27.5 million on net sales of INR2.08 billion, against a PAT of INR34.6 million on net sales of INR1.89 billion for 2010-11. OGUN STEEL: Delay in Loan Payment Cues CRISIL to Junk Ratings ------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Ogun Steel Rolling Mills Pvt Ltd (OSRM; part of the MPS group) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Negative/CRISIL A4' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 200 CRISIL D (Downgraded from 'CRISIL B+ /Negative') Letter of Credit 150 CRISIL D (Downgraded from 'CRISIL A4') Long-Term Loan 112.70 CRISIL D (Downgraded from 'CRISIL B+ /Negative') Proposed Long-Term 20.80 CRISIL D Bank Loan Facility The downgrade reflects instances of delay by OSRM in servicing its term debt; the delays have been caused by the MPS group's weak liquidity. The MPS group also has a weak financial risk profile, marked by a high gearing and weak debt protection metrics, and is exposed to risks related to volatility in raw material prices and to cyclicality in the steel industry. However, the group benefits from its established position in the central Kerala market, and its partially integrated operations. For arriving at the ratings, CRISIL has combined the financial and business risk profiles of OSRM, MPS Steel Castings Pvt Ltd (MPS Steel), Ogun Steels Pvt Ltd (OSPL), and Paragon Steels Pvt Ltd (Paragon Steel). This is because these entities, together referred to as the MPS group, have a common set of promoters, are in the same line of business, and have strong intra-group operational linkages, including fungible funds. The MPS group was established in 1969 by Mr. M Paramsivam. It comprises four entities, namely, MPS Steel, OSRM, OSPL, and Paragon Steels. OSRM, established in 2009, manufactures thermo- mechanically treated (TMT) bars; its unit is at Sulur (Tamil Nadu). Paragon Steel, set up in 1994, manufactures TMT bars and ingots; its plant is in Palakkad (Kerala). MPS Steel, set up in 1996, manufactures sponge iron and mild steel ingots. MPS Steel also has a captive power plant at its sponge iron manufacturing site. OSPL, set up in 2009, is the trading arm of the group. For 2011-12 (refers to financial year, April 1 to March 31), the MPS group reported a profit after tax (PAT) of INR27.5 million on net sales of INR2.08 billion, against a PAT of INR34.6 million on net sales of INR1.89 billion for 2010-11. PARAGON STEELS: Delay in Loan Payment Cues CRISIL to Junk Ratings ----------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Paragon Steels Pvt Ltd (Paragon Steels; part of the MPS group) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Negative/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 320 CRISIL D (Downgraded from 'CRISIL B+ /Negative') Letter of Credit 455 CRISIL D (Downgraded from 'CRISIL A4') Long-Term Loan 245 CRISIL D (Downgraded from 'CRISIL B+ /Negative') The downgrade reflects instances of delay by Paragon Steels in servicing its term debt; the delays have been caused by the MPS group's weak liquidity. The MPS group also has a weak financial risk profile, marked by a high gearing and weak debt protection metrics, and is exposed to risks related to volatility in raw material prices and to cyclicality in the steel industry. However, the group benefits from its established position in the central Kerala market, and its partially integrated operations. For arriving at the ratings, CRISIL has combined the financial and business risk profiles of Paragon Steels, Ogun Steel Rolling Mills Pvt Ltd, MPS Steel Castings Pvt Ltd, and Ogun Steels Pvt Ltd. This is because these entities, together referred to as the MPS group, have a common set of promoters, are in the same line of business, and have strong intra-group operational linkages, including fungible funds. The MPS group was established in 1969 by Mr. M Paramsivam. It comprises four entities, namely, MPS Steel, OSRM, OSPL, and Paragon Steels. Paragon Steel, set up in 1994, manufactures thermo-mechanically treated (TMT) bars and ingots; its plant is in Palakkad (Kerala). MPS Steel, set up in 1996, manufactures sponge iron and mild steel ingots. MPS Steel also has a captive power plant at its sponge iron manufacturing site. OSRM, established in 2009, manufactures TMT bars; its unit is at Sulur (Tamil Nadu). OSPL was also set up in 2009; it is the trading arm of the group. For 2011-12 (refers to financial year, April 1 to March 31), the MPS group reported a profit after tax (PAT) of INR27.5 million on net sales of INR2.08 billion, against a PAT of INR34.6 million on net sales of INR1.89 billion for 2010-11. RAMKRUSHNA COTGIN: CRISIL Junks Ratings Over Late Loan Payment -------------------------------------------------------------- CRISIL has downgraded its rating on the bank facility of Ramkrushna Cotgin Coporation to 'CRISIL D' from 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL D (Downgraded from 'CRISIL B-/Stable') The rating downgrade reflects instances of delay by RCC in servicing its term debt; the delays have been caused by the company's weak liquidity. RCC's liquidity is weak because of its large working capital requirements. CRISIL believes that the company's liquidity will remain weak over the medium term because of intense market competition and offtake-related risks, considering the weak economic environment. RCC has working-capital-intensive operations, and is susceptible to volatility in raw material prices. It also has a weak financial risk profile, marked by high gearing and weak debt protection metrics. However, the company benefits from its promoter's established relationship with its suppliers and customers. RCC is a partnership firm engaged in ginning and pressing of raw cotton, and extraction of cotton seed oil and cotton seed oil cake; it has manufacturing facilities at Rajkot (Gujarat). The firm is promoted by Mr. Vinubhai Daboria, Mr. Dilipbhai Daboria, Ms. Induben Daboria, Ms. Jasuben Daboria, and Mr. Parth Agarwal. SHETKARI MAHILA: CRISIL Reaffirms 'B-' Rating on INR265.2MM Loan ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Shetkari Mahila Sahakari Vastranirman Soot Girni Maryadit continues to reflect SMSV's weak liquidity, marked by tightly matched cash accruals against term debt obligations, weak debt protection measures, large working capital requirements, and vulnerability of its profitability to volatility in cotton prices. These rating weaknesses are partially offset by the fiscal incentives that the society receives from the Government of Maharashtra (GoM). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 265.2 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SMSV will continue to benefit over the medium term from its association with GoM. The outlook may be revised to 'Positive' in case of significant improvement in SMSV's cash accruals. Conversely, the outlook may be revised to 'Negative' if there are delays in receipt of subsidies from GoM, which will impact the timely debt servicing ability of the society, or if the society continues to incur losses as witnessed in 2011-12. Update For 2011-12 (refers to financial year, April 1 to March 31), SMSV reported net sales of INR278 million, a decline from INR343 million for 2010-11. The decline was mainly due to the sharp reduction in cotton prices to INR199 per kilogram (kg) in March 2012 from INR258 per kg in March 2011. As the society had maintained large cotton inventory, it suffered losses at the operating level in 2011-12, in line with CRISIL's expectations. The society incurred an operating loss of 7.1 per cent for the year, as against an operating profit of 14.9 per cent in 2010-11. SMSV used to maintain high inventory levels till 2010-11, leading to large working capital requirements. However, due to the inventory losses in 2011-12, the society has started to keep low inventory levels: its inventory declined to 34 days as on March 31, 2012, from 112 days as on March 31, 2011, while its gross current assets declined to 99 days from 153 days over this period. CRISIL believes that the change in inventory policy will help SMSV to improve its financial risk profile and also insulate the society against any sudden changes in cotton prices over the medium term. SMSV's financial risk profile is constrained by weak debt protection metrics mainly due to operating losses. However, the society had a healthy net worth and low gearing of INR242 million and 0.84 times, respectively, as on March 31, 2012. The net worth is high mainly due to funding support from GoM. GoM has invested in SMSV's preference shares, the balance of which stood at INR238 million as on March 31, 2012. CRISIL continues to treat SMSV's preference share capital from GoM as quasi equity because it is repayable only after 20 years and is interest free. SMSV's liquidity is constrained due to tightly matched cash accruals with term debt obligations. The society is expected to generate cash accruals of INR30 million to INR32 million in 2012- 13, as against term debt obligations of INR28 million for the year. It had low average utilisation of its working capital bank limit, at 8.5 per cent for the 12 months through September 2012. CRISIL believes the society's liquidity profile will improve over the medium term, if the management's stance of maintaining low inventory is sustained. SMSV incurred a net loss of INR66.7 million on net sales of INR278 million for 2011-12, as against a profit after tax of INR8.5 million on net sales of INR343 million for 2010-11. SMSV, a women-focused society, is engaged in spinning of cotton yarn. The society, based at Solapur (Maharashtra), commenced operations in 2006. It was set up under the guidance of Mr. Ganpatrao Deshmukh, former minister in GoM. SPECIALITY SILICA: CRISIL Up Rating on INR172.5MM LOANS to 'C' -------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Speciality Silica Pvt Ltd to 'CRISIL C' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 47.5 CRISIL C (Upgraded from 'CRISIL D') Term Loan 95.0 CRISIL C (Upgraded from 'CRISIL D') Proposed Long-Term 30.0 CRISIL C (Upgraded from Bank Loan Facility 'CRISIL D') The rating upgrade reflects timely servicing of term debt by SSPL over the four months through December 2012, supported by enhancement in its bank limits to INR47.5 million in August 2012 from INR30 million. The rating reflects SSPL's weak financial risk profile, marked by a very high gearing, weak debt protection metrics, and a small net worth, and small scale of operations in the intensely competitive and commoditised precipitated silica industry. These rating weaknesses are partially offset by the benefits that SSPL derives from its promoter's extensive experience in the chemical business. SSPL produces precipitated silica with capacity of 5400 tonnes per annum. It is promoted by Mr Ravi Soni, who has been associated with the chemicals industry for around three decades. Currently, SSPL primarily manufactures rubber grade silica and silica for dental care. The company commenced production in 2008-09 (refers to financial year, April 1 to March 31). SSPL reported a net loss of INR13.0 million on net sales of INR140.0 million for 2011-12, against a net loss of INR12.0 million on net sales of INR138.0 million for 2010-11. SRI BALMUKUND: CRISIL Reaffirms 'BB-' Rating on INR149.5MM Loans ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Sri Balmukund Polypack Pvt Ltd continue to reflect the benefit that Sri Balmukund derives from its promoters' experience in the packaging industry, and the company's moderate financial risk profile, marked by a moderate gearing and healthy debt protection metrics. These rating strengths are partially offset by Sri Balmukund's small scale of operations and exposure to volatility in raw material prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4+ (Reaffirmed) Cash Credit 60 CRISIL BB-/Stable (Reaffirmed) Proposed Long-Term 19.5 CRISIL BB-/Stable (Reaffirmed) Bank Loan Facility Term Loan 70.0 CRISIL BB-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that Sri Balmukund will continue to benefit over the medium term from its promoters' industry experience and its established relations with its customers and suppliers. The outlook may be revised to 'Positive' if the company significantly scales up its operations, backed by optimum utilization of its enhanced capacities, while it maintains its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' in case Sri Balmukund undertakes a large, debt-funded capital expenditure programme, faces suboptimal utilization of its enhanced capacities, or extends substantial financial assistance to its group entities. Update For 2011-12 (refers to financial year, April 1 to March 31), Sri Balmukund has booked sales of INR286.2 million as against sales of INR248.7 million in 2010-11. For the first eight months of 2012- 13, the company has booked sales of INR275 million and is expected to report sales of around INR400 million for 2012-13. The healthy sales growth over the past two years was backed by increase in manufacturing capacity from 4800 tonnes per annum (tpa) to 9600 tpa, which was completed in 2011-12. The company's sales growth is also driven by addition of new customers such as Sahara Energy, Century Cements, Rashtriya Ispat over the last 12 months. The company's profitability is expected to remain in line with past trends, with an operating margin ranging from 7.5 to 8.5 per cent, over the medium term. Sri Balmukund's financial risk profile remains moderate, with the company's net worth expected to be INR100 million as on March 31, 2013. The company's gearing increased to 1.35 times as on March 31, 2012 from 0.90 times as on March 31, 2011 because of the debt-funded capex undertaken for capacity expansion. The company's gearing is expected to range from 1.20 to 1.35 times, over the medium term. Sri Balmukund's debt protection metrics are expected to remain moderate, with net cash accruals to total debt of 0.10 times and interest coverage of more than 2 times for 2012-13. CRISIL believes that Sri Balmukund's financial risk profile will improve over the medium term, with increasing cash accruals, absence of any major debt-funded capex, and stable working capital intensity. For 2011-12, Sri Balmukund reported a profit after tax (PAT) of INR2.1 million on net sales of INR286.2 million, as against a PAT of INR2.3 million on net sales of INR248.7 million for 2010-11. Sri Balmukund, incorporated in December 2007, manufactures high- density polyethylene and polypropylene fabrics and bags. Its facility at Industrial Area in Tendua in Raipur (Chhattisgarh) has a manufacturing capacity of 9600 tonnes per annum. The company primarily supplies bags to the cement companies with some sales to the fertiliser, petrochemicals, and sugar segments. ========= J A P A N ========= SHARP CORP: S&P Cuts Senior Unsecured Debt Rating to 'B' -------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered to 'B' from 'B+' its senior unsecured debt rating on Sharp Corp. At the same time, S&P kept the senior unsecured debt rating and 'B+' long-term and 'B' short-term corporate credit ratings on Sharp and its overseas subsidiaries-- Sharp Electronics Corp. and Sharp International Finance (U.K.) PLC -- on CreditWatch with negative implications. S&P lowered the senior unsecured debt rating by one notch from the issuer rating because it believes Sharp's priority liabilities have increased and will likely remain high against the company's assets in the next six to 12 months. "We believe Sharp's total priority liabilities increased substantially during the October to December quarter of 2012, as evidenced by the increase in its consolidated secured loans to JPY33.44 billion as of Dec. 31, 2012, from JPY19.95 billion as of Sept. 30, 2012. The total secured loan accounted for 15.4% of the company's consolidated total assets of JPY2.17 trillion as of Dec. 31, 2012, up from 8.9% as of Sept. 30, 2012. In our view, Sharp increased the secured loan balance to redeem maturing commercial paper and to fund cash expenses related to the company's early retirement program. Sharp still aims to downsize assets to JPY2.15 trillion at the end of March 2013 by selling real estate and reducing inventories. However, we see risk of fluctuation in Sharp's working capital towards the fiscal yearend. We are of the opinion that unless Sharp receives significant external nonsecured funds--such as in the form of an equity infusion as part of a strategic alliance--the company will likely be unable to reduce its high dependence on short-term secured loan facilities. As a result, we believe Sharp's total priority liabilities are likely to continue to exceed the threshold, as defined in our criteria, of 15% of the company's assets in the next six to 12 months," S&P said. "We take the view that Sharp's operating performance is stabilizing following the company's JPY387.5 billion net loss for the fiscal 2012 first half (ended Sept. 30, 2012) and significant efforts to restructure its businesses. During the October to December quarter, Sharp reported operating profit of JPY2.6 billion, after operating losses for four consecutive quarters. The quarterly result was slightly stronger than Sharp's previous guidance and in line with our base projection. Recovering sales of flat-panel TVs, strong sales of Sharp smartphones (for NTT DoCoMo) featuring indium gallium zinc oxide (IGZO) panels, and reduced losses in its solar panel business supported the return to profit on a quarterly basis. Quarterly sales increased 15% year on year, and a quarterly net loss fell to JPY36.7 billion from JPY173.6 billion year on year," S&P added. Sharp maintained its full-year earnings guidance for fiscal 2012 and expects JPY11.2 billion in operating profits in the January to March quarter. Still, S&P considers Sharp's recovery in operating performance to remain slow due to the challenging operating environment, including fierce competition and low utilization of plants, despite the recent depreciation of the yen against other major currencies. While S&P sees increasing likelihood that the company will report positive operating profit in the second half of fiscal 2012 (ending March 31, 2013)--which S&P believes is an important condition for Sharp's lender banks to extend their syndicated loan agreement beyond June 2013-- S&P maintains a cautious view on the company's quarterly prospects due primarily to the slow recovery in its liquid crystal display (LCD) panel business. On Dec. 4, 2012, Sharp announced a capital alliance and display technology development agreement with Qualcomm Inc., in which Sharp will accept up to JPY9.9 billion from Qualcomm in equity investment to pursue this joint development. The companies plan to develop MEMS (Micro Electro Mechanical Systems) displays for use in smartphones and other devices. Although S&P believes the alliance will help Sharp enhance its technological competitiveness in the longer term by utilizing Sharp's proprietary technology in IGZO panels, the immediate positive impact on the company's financial position is limited. S&P also considers the possibility that Sharp will reach an agreement by late March to implement a strategic alliance with Taiwan-based electronics maker HonHai Precision Industry Co. Ltd. has not diminished, but the terms and conditions of the deal remain uncertain. Sharp's liquidity remains "less than adequate" because its upcoming liquidity needs will likely substantially exceed sources in the next 12 months, in S&P's view. As of Dec. 31, 2012, Sharp had JPY672.5 billion in short-term loans, JPY205.9 billion in bonds due to mature within a year (including JPY200.5 billion in convertible bonds maturing Sept. 30, 2013), and JPY8.0 billion in commercial paper. While Sharp and its main creditor banks signed an agreement in late September on a JPY360 billion syndicated loan, Standard & Poor's does not consider the deal to have improved the company's debt profile materially, because the contract term is short, ending June 30, 2013, and the company remains highly dependent on short-term bank loans. Weak internal cash flow has forced the company to pay off commercial paper primarily with bank borrowings in the past six months. Still, S&P considers that the syndicated loan is a major source of Sharp's liquidity and ongoing support from the banks--together with management initiatives including a slowdown in the use of funds for working capital and capital expenditures and expansion of funding sources through asset disposals--could alleviate pressure on the company's liquidity. Nevertheless, S&P's assessment of Sharp's liquidity as "less than adequate," assumes that the syndicated loan of existing size or larger will remain a major source of liquidity for the company beyond June 2013. In resolving the CreditWatch placement, S&P will reassess Sharp's liquidity profile, including how it can secure funding sources with longer durations that extend beyond June 2013 to meet future debt maturities and reduce dependence on short-term debt. Specifically, S&P will resolve the CreditWatch if it believes the syndicated loan agreement with Mizuho Corporate Bank Ltd. and Bank of Tokyo-Mitsubishi UFJ Ltd. will be extended or replaced in the long term and in a more committed manner. S&P will also examine how the company can restore its weakened capital structure. S&P will consider lowering its ratings on Sharp if the company cannot effectively improve its funding conditions. In addition, S&P would further lower the senior unsecured debt ratings if it believes the ratio of the company's priority liabilities to total assets is likely to exceed 30% of the company's assets, although S&P considers this possibility relatively remote, at least in the next six months. ==================== N E W Z E A L A N D ==================== CAPITAL + MERCHANT: Two Directors Plead Guilty to FMA Chargers -------------------------------------------------------------- The New Zealand Herald reports that two already jailed Capital + Merchant finance directors have pleaded guilty to separate charges laid by the Financial Markets Authority. The Herald relates that Wayne Douglas and Neal Nicholls, the founding directors and beneficial owners of Capital + Merchant, were found guilty in July last year of three charges of theft by a person in a special relationship. In a case brought by the Serious Fraud Office, both men were each jailed for seven and a half years, the longest sentences given to failed finance companies bosses to date, the report says. According to the report, Messrs. Douglas and Nicholls were originally due back in the High Court at Auckland last week for a separate case where the FMA said the men mislead investors after making untrue statements in offer documents. The Herald notes that Mr. Nicholls faced two Securities Act charges for signing a registered prospectus in December 2006 that included an untrue statement and for a prospectus first distributed in September 2007. He also faced a charge for distributing an advertisement that included an untrue statement. Mr. Douglas faced two charges relating to statements in a prospectus and an advertisement that included an untrue statement, the report adds. The duo pleaded guilty on Feb. 13, 2013, and were convicted on these charges before Justice Patricia Courtney. The charges the men pleaded guilty to carry a maximum penalty of five years imprisonment or fines of up to NZ$300,000. A sentencing date has not been set, the report notes. 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 owed NZ$167.1 million to about 7,500 investors. Fortress reportedly has a prior charge over assets and was owed around NZ$70 million in total. PIKE RIVER: Receivership Outcome Unclear ---------------------------------------- 3news.co.nz reports that the ultimate outcome of the receivership of the Pike River Coal mine continues to depend on the resumption of mining. The receivers of Pike River Coal are continuing to pursue an insurance claim made by the company before its mine exploded, killing 29 workers, according to 3news.co.nz. The report recalls that receivers John Fisk, -- john.fisk@nz.pwc.com -- David Bridgman, -- david.bridgman@nz.pwc.com -- and Malcolm Hollis, -- malcolm.g.hollis@nz.pwc.com -- of PricewaterhouseCoopers sold the mine to state-owned Solid Energy last year. The receivers said in their latest six-monthly report that they are pursuing an insurance claim relating to events prior to the explosions on Nov. 19, 2010, 3news.co.nz notes. The claim is the company's last remaining asset. 3news.co.nz says that the receivers' report does not give details of the insurance claim, but the mine experienced a ventilation shaft collapse and had problems with equipment during its development. The ultimate outcome of the receivership still remains unclear because the company may receive future payments if Solid Energy reopens the mine, 3news.co.nz discloses. 3news.co.nz discloses that Solid Energy paid an initial $7.5 million with up to a further $25 million to be paid if the mine resumes production. "Should Solid Energy New Zealand begin mining at Pike River and extract coal to agreed levels, future payments will be payable under the sale and purchase agreement," the receivers said in the latest report, 3news.co.nz notes. 3news.co.nz says that first and second ranking creditors have been paid in full and there will not be enough money to pay third- ranking creditors in full. Under a plan implemented in September 2011, all Pike River's unsecured creditors were repaid the first US$10,000 owed to them and an additional 20 cents in the dollar, 3news.co.nz recalls. The plan resulted from an insurance settlement of $80 million. The receivers reiterated that unsecured creditors will not receive any more money, 3news.co.nz notes. The latest report discloses $51.78 million of claims from creditors, of which $13 million are from unsecured trade creditors, the report adds. About Pike River Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is a New Zealand-based coal mining company. The Company, along with its subsidiaries, is primarily engaged in the exploration, evaluation, development and production of coal. It operates a coal mine that lies under the Paparoa Ranges. Pike River Coal Ltd was placed into receivership in December 2010 after 29 miners died in a series of explosions on Nov. 19, 2010. New Zealand Oil & Gas, the company's largest shareholder, appointed accountants PricewaterhouseCoopers as receivers. The company owed NZ$80 million to secured creditors BNZ and NZ Oil & Gas. Pike River Coal also owed another estimated NZ$10 million to NZ$15 million to contractors, including some of the men who lost their lives in the disaster. ================= S I N G A P O R E ================= ARTICON CONSTRUCTION: Creditors Get 47.29628% Recovery on Claims ---------------------------------------------------------------- Articon Construction Pte Ltd declared the first and final preferential dividend on Dec. 18, 2012. The company paid 47.29628% to the received claims. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 ASHCRAFT HOLDINGS: Court to Hear Wind-Up Petition Feb. 22 --------------------------------------------------------- A petition to wind up the operations of Ashcraft Holdings Pte Ltd. will be heard before the High Court of Singapore on Feb. 22, 2013, at 10:00 a.m. Hyflux Limited filed the petition against the company on Feb. 6, 2013. The Petitioner's solicitors are: Drew & Napier LLC 10 Collyer Quay #10-01 Ocean Financial Centre Singapore 049315 CHIAN KEONG: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on Feb. 1, 2013, to wind up Chian Keong Trading Pte Ltd's operations. Malayan Banking Berhad filed the petition against the company. The company's liquidators are: Messrs Andrew Grimmett Lim Loo Khoon Deloitte & Touche LLP care of 6 Shenton Way Tower 2, #32-00 Singapore 068809 ENSAFE OFFSHORE: Court to Hear Wind-Up Petition March 1 ------------------------------------------------------- A petition to wind up the operations of Ensafe Offshore Marine Private Limited will be heard before the High Court of Singapore on March 1, 2013, at 10:00 a.m. The Comptroller of Goods and Services Tax and The Comptroller of Income Tax filed the petition against the company on Feb. 7, 2013. The Petitioner's solicitors are: Infinitus Law Corporation 77 Robinson Road #16-00, Robinson 77 Singapore 068896 HILLCREST PUBLICATIONS: Creditors Get 37.004% Recovery on Claims ---------------------------------------------------------------- Hillcrest Publications Pte Ltd declared the first and final dividend on Feb. 8, 2013. The company paid 37.00408% to the received claims. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 =============== X X X X X X X X =============== * BOND PRICING: For the Week Feb. 11 to Feb. 15, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- AUSTRALIAN I/L 4.00 8/20/2015 AUD 180.17 AUSTRALIAN I/L 4.00 8/20/2020 AUD 190.31 AUSTRALIAN I/L 3.00 9/20/2025 AUD 135.14 AUSTRALIAN I/L 2.50 9/20/2030 AUD 126.94 COM BK AUSTRALIA 1.50 4/19/2022 AUD 72.80 EXPORT FIN & INS 0.50 6/15/2020 NZD 74.52 MIDWEST VANADIUM 11.50 2/15/2018 USD 60.00 MIDWEST VANADIUM 11.50 2/15/2018 USD 60.38 NEW S WALES TREA 0.50 9/14/2022 AUD 69.11 NEW S WALES TREA 0.50 10/7/2022 AUD 68.90 NEW S WALES TREA 0.50 10/28/2022 AUD 68.71 NEW S WALES TREA 0.50 11/18/2022 AUD 68.53 NEW S WALES TREA 0.50 12/16/2022 AUD 68.56 NEW S WALES TREA 0.50 2/2/2023 AUD 68.10 NEW S WALES TREA 0.50 3/30/2023 AUD 67.61 NSWTC-I/L 3.75 11/20/2020 AUD 128.59 NSWTC-I/L 2.75 11/20/2025 AUD 128.45 NSWTC-I/L 2.50 11/20/2035 AUD 116.94 QUEENSLAND TREAS 2.75 8/20/2030 AUD 123.27 TREAS CORP VICT 0.50 8/25/2022 AUD 70.50 TREAS CORP VICT 0.50 3/3/2023 AUD 68.74 TREAS CORP VICT 0.50 11/12/2030 AUD 47.35 CHINA ----- CHINA GOVT BOND 4.86 8/10/2014 CNY 102.74 CHINA GOVT BOND 1.64 12/15/2033 CNY 68.10 INDIA ----- JCT LTD 2.50 4/8/2011 USD 20.00 MASCON GLOBAL LT 2.00 12/28/2012 USD 10.00 PRAKASH IND LTD 5.63 10/17/2014 USD 68.92 PRAKASH IND LTD 5.25 4/30/2015 USD 68.39 PYRAMID SAIMIRA 1.75 7/4/2012 USD 1.00 REI AGRO 5.50 11/13/2014 USD 66.37 REI AGRO 5.50 11/13/2014 USD 66.37 SHIV-VANI OIL 5.00 8/17/2015 USD 45.41 SUZLON ENERGY LT 5.00 4/13/2016 USD 51.33 JAPAN ----- EBARA CORP 1.30 9/30/2013 JPY 100.14 ELPIDA MEMORY 2.03 3/22/2012 JPY 9.13 ELPIDA MEMORY 2.10 11/29/2012 JPY 9.13 ELPIDA MEMORY 2.29 12/7/2012 JPY 9.13 JPN EXP HLD/DEBT 0.50 9/17/2038 JPY 64.31 JPN EXP HLD/DEBT 0.50 3/18/2039 JPY 63.75 KADOKAWA HLDGS 1.00 12/18/2014 JPY 107.84 SHARP CORP 1.14 9/16/2016 JPY 71.15 SHARP CORP 2.07 3/19/2019 JPY 65.32 SHARP CORP 1.60 9/13/2019 JPY 65.04 TOKYO ELEC POWER 2.11 12/10/2029 JPY 73.75 TOKYO ELEC POWER 1.96 7/29/2030 JPY 72.25 TOKYO ELEC POWER 2.37 5/28/2040 JPY 67.16 MALAYSIA -------- DUTALAND BHD 7.00 4/11/2013 MYR 0.91 PHILIPPINES ----------- BAYAN TELECOMMUN 13.50 7/15/2049 USD 22.63 BAYAN TELECOMMUN 13.50 7/15/2049 USD 22.63 SINGAPORE --------- BAKRIE TELECOM 11.50 5/7/2015 USD 56.47 BAKRIE TELECOM 11.50 5/7/2015 USD 57.00 BLUE OCEAN 11.00 6/28/2012 USD 34.13 BLUE OCEAN 11.00 6/28/2012 USD 34.13 CAPITAMALLS ASIA 2.15 1/21/2014 SGD 99.82 CAPITAMALLS ASIA 3.80 1/12/2022 SGD 100.63 DAVOMAS INTL FIN 11.00 12/8/2014 USD 28.13 DAVOMAS INTL FIN 11.00 12/8/2014 USD 28.13 F&N TREASURY PTE 2.48 3/28/2016 SGD 100.30 SOUTH KOREA ----------- CHEJU REGION DEV 3.00 12/29/2034 KRW 67.29 CN 1ST ABS 8.00 2/27/2015 KRW 34.25 CN 1ST ABS 8.30 11/27/2015 KRW 35.67 EXP-IMP BK KOREA 0.50 8/10/2016 BRL 73.97 EXP-IMP BK KOREA 0.50 9/28/2016 BRL 73.64 EXP-IMP BK KOREA 0.50 10/27/2016 BRL 73.12 EXP-IMP BK KOREA 0.50 11/28/2016 BRL 72.55 EXP-IMP BK KOREA 0.50 12/22/2016 BRL 72.10 EXP-IMP BK KOREA 0.50 10/23/2017 TRY 71.20 EXP-IMP BK KOREA 0.50 11/21/2017 BRL 66.70 EXP-IMP BK KOREA 0.50 12/22/2017 TRY 70.61 EXP-IMP BK KOREA 0.50 12/22/2017 BRL 66.32 SINBO 14TH ABS 8.00 2/2/2015 KRW 29.97 SINBO 3RD ABS 9.00 7/27/2015 KRW 30.04 SRI LANKA --------- SRI LANKA GOVT 6.20 8/1/2020 LKR 73.95 SRI LANKA GOVT 7.00 10/1/2023 LKR 69.49 SRI LANKA GOVT 5.35 3/1/2026 LKR 57.39 SRI LANKA GOVT 8.00 1/1/2032 LKR 68.91 SRI LANKA GOVT 9.00 1/10/2032 LKR 74.87 THAILAND -------- BANGKOK LAND 4.50 10/13/2003 USD 5.50 ********* 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., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Psyche A. Castillon, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. 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$775 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 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***