/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/131022.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, October 22, 2013, Vol. 16, No. 209 Headlines A U S T R A L I A LITTLE HUNTER: Restaurant Creditors AUD760K Out of Pocket PORT LINCOLN: Racing Club on the Verge of Insolvency WEPAR INVESTMENTS: Plantation Treated Buys Kalangadoo Plant * AUSTRALIA: ASIC Reports Drop in Financial Services Insolvencies I N D I A 21ST CENTURY: CARE Lowers Rating on INR6.5cr Loans to 'D' AVIRAT INFRASTRUCTURE: CARE Rates INR10cr LT Bank Loans at 'B' CHANDIGARH EDUCATIONAL: CARE Reaffirms BB+ Rating on INR30cr Loan DHARAMPAL IRON: CARE Assigns 'BB-' Rating to INR45cr LT Loans DUNCANS TEA: CARE Rates INR18cr LT Bank Loans at 'BB' ELECTROSTEEL STEELS: CARE Ups Rating on INR8,356cr Loans to 'B' GARG INOX: CARE Assigns 'BB' Rating to INR111.92cr LT Bank Loans HOSPITALITY EDUCATION: CARE Puts 'BB-' Rating on INR2.28cr Loans MEHALA MACHINES: CARE Assigns 'D' Ratings to INR37.4cr Loans MOONLITE TECHNOCHEM: CARE Assigns 'BB(SO)' Rating to INR8cr Loans NILACHAL CARBO: CARE Rates INR6.9cr LT Bank Loans at 'BB-' PATO BUILDERS: CARE Assigns B+ Rating to INR8.91cr LT Bank Loans RAJESHREE FIBERS: CARE Rates INR8cr LT Bank Loans at 'BB-' RS DEVELOPMENT: CARE Assigns 'BB' Rating to INR15.07cr Bank Loans SHEIKH BHULLAN: CARE Assigns B+ Rating to INR36.54cr LT Loans SIMTRAD OVERSEAS: CARE Puts 'B+/A4' Rating to INR2cr LT Loans SINTECH PRECISION: CARE Cuts Ratings on INR10cr Loans to 'D' SPARSH AUTOMOBILES: CARE Rates INR14.5cr LT Bank Loans at 'BB' VENKATESWARA WIRES: CARE Reaffirms BB Rating on INR13.8cr Loans N E W Z E A L A N D CHATHAM ISLAND: Maori Firms Express Interest in Fishing Company MONTESSORI FOUNDATION: Ex-Manager May Lose NZ$66K Compensation TACHIKAWA FOREST: Rotorua Mill Re-start Possible, Receivers Say S O U T H K O R E A TONG YANG: Four More Korean Conglomerates Suffer Credit Crisis X X X X X X X X * Asia Sovereign Ratings Resilient to US Negative Watch * BOND PRICING: For the Week Oct. 14 to Oct. 18, 2013 - - - - - ================= A U S T R A L I A ================= LITTLE HUNTER: Restaurant Creditors AUD760K Out of Pocket --------------------------------------------------------- John Lethlean at The Australian reports that creditors of the company that in February launched Melbourne restaurant Little Hunter, including celebrity chef Pete Evans, were left AUD760,000 out of pocket when the company went into liquidation. Yet Little Hunter the restaurant continues to trade; the company that went into liquidation on September 30, Little Hunter Pty Ltd, sold its assets to a new company, Junior Hunter Pty Ltd, that month, notifying suppliers of the sale on September 11, says The Australian. "Little Hunter is currently in the process of being sold," a group email, advising that the restaurant's new owner was "Junior Hunter Pty Ltd trading as Little Hunter" said, The Australian reports. The Australian notes that when creditors called the restaurant this month they were told the company that owed them money was in liquidation. Little Hunter Pty Ltd (in liquidation) is owned by a matrix of individuals and companies, the report discloses. A spokesman for the restaurant said "there is no evidence to suggest a phoenix company has been formed", however, Junior Hunter and Little Hunter share a significant overlap of individuals and companies as shareholders, according to The Australian. PORT LINCOLN: Racing Club on the Verge of Insolvency ---------------------------------------------------- Port Lincoln Times reports that the Port Lincoln Racing Club is on the verge of insolvency but the committee is confident a new five- year plan will get the club out of debt. According to the report, Club chairman Greg Fitzgerald outlined the club's financial problems to Port Lincoln City Councillors on October 8 night saying the club was not insolvent but it had "solvency issues". Port Lincoln Times relates that following a detailed assessment of the club's finances in May he said the committee decided to "draw a line in the sand". "We got to a situation this year where we decided to do something about where the organisation was travelling or else it wouldn't be travelling anywhere except downwards," the report quotes Mr. Fitzgerald as saying. "You have to draw a line in the sand and say enough is enough, there's too much at stake to let it continue to deteriorate." Port Lincoln Times relates that Mr. Fitzgerald said the club had had total liabilities of more than AUD500,000 but there was now a five-year financial plan in place "to claw back the debt". Committee member Tony Irvine said there had been a change of committee and it became obvious something had to be done or else the club would be gone in a couple of years, the report adds. WEPAR INVESTMENTS: Plantation Treated Buys Kalangadoo Plant ----------------------------------------------------------- Megan Roberts and Wendy Collis at ABC Rural report that the Kalangadoo timber treatment plant, in the south-east of South Australia, has been sold to local logging business, Plantation Treated Timber. Wepar Investments, which owned the plant, went into liquidation in December last year, just seven weeks after buying it from Gunns, ABC Rural discloses. According to the report, Anna Agostino, a manager at liquidators Clifton-Hall, said the former workers will now receive their entitlements. "So with the sale, what will happen now is we'll declare a dividend and we'll pay a large amount of what the government paid out to the employee entitlements, but it also means we'll get to pay the superannuation and the sick leave which the employees would have otherwise missed out on," the report quotes Ms. Agostino as saying. * AUSTRALIA: ASIC Reports Drop in Financial Services Insolvencies ----------------------------------------------------------------- James Fernyhough at financialstandard.com.au reports that the number of financial and insurance services (FIS) companies going into external administration in the 2012-13 financial year fell modestly compared to the previous year, according to new figures released by the Australian Securities and Investments Commission (ASIC). ASIC's report showed that FIS companies accounted for just 3% of companies that went into external administration, of which 1.1% (or 90 companies) were managed investments operations while 1.5% (142) were "other financial services," according to financialstandard.com.au. The report notes that fourteen credit providers, 11 insurance providers, six superannuation funds and two deposit taking institutions went into administration. These comparatively low numbers saw FIS out of the top 12, the report relates. The report discloses that construction firms were the most likely to go insolvent, with 2,245 companies (24.3% of the total) going into administration - by far the largest number in a single industry. Retail accounted for 9.8% of companies, while accommodation and food services accounted for 8.8%. The number of financial services companies going into external administration in the 2011-12 financial year was 298, including 25 insurance companies, the report adds. ========= I N D I A ========= 21ST CENTURY: CARE Lowers Rating on INR6.5cr Loans to 'D' --------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of 21ST Century Ferro & Alloys Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6.00 CARE D Revised from CARE BB Facilities Short-term Bank 0.50 CARE D Revised from CARE A4 Facilities Rating Rationale The revision in the ratings assigned to the bank facilities of 21st Century Ferro & alloys Pvt Ltd factors in the instances of ongoing delay in servicing of its debt obligations on account of the stressed liquidity position of the company. 21st Century Ferro & Alloys Pvt Ltd was incorporated in April 2004 to set up a 5 MVA submerged arc furnace having installed capacity of 9,000 metric tonnes per annum (MTPA) to manufacture ferro alloy products at Sundargarh, Odisha. In the year 2007, the company was taken over by Mr. Bijay Agarwal, Mr. Shivshambhu Prasad and Mr. Nimish Gadodia, the current promoters. The company is currently engaged in the manufacturing of Silico Manganese and Pig Iron. During FY12 (refers to the period April 1 to March 31), the company reported a PBILDT of INR1.6 crore (INR2.1 crore in FY11) and PAT of INR0.4 crore (INR0.9 crore in FY11) on the total operating income of INR24.9 crore (INR28.2 crore in FY11). AVIRAT INFRASTRUCTURE: CARE Rates INR10cr LT Bank Loans at 'B' ------------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Avirat Infrastructure Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 10 CARE B Assigned Facilities Rating Rationale The rating assigned to the bank facilities of Avirat Infrastructure Private Limited is primarily constrained on account of the salability risk and modest booking received in its three ongoing projects, namely, 'Silver Gardenia', 'Silver Habitat' and 'Silver Star Heights'. The rating also factors in the inherent risk associated with the real estate industry. These constraints far outweigh the benefits derived from the experience of the promoters in the real estate industry. The ability of AIPL to complete its on-going projects within the envisaged time and cost parameters and sale of its units at the envisaged prices along with timely realization of sales proceeds are the key rating sensitivities. Ahmedabad-based, AIPL was incorporated as a private limited company in October 2003 by the Patel Family and is engaged in real estate development. AIPL is the flagship company of the Ahmedabad-based Avirat Group and other entities of the group are also engaged in real estate development. AIPL remained inactive for six years after incorporation and formally started taking up real estate projects in and around Ahmedabad in 2009. Currently, AIPL is executing one residential project named 'Silver Gardenia' and two residential-cum-commercial projects named 'Silver Habitat' and 'Silver Star Heights' at Ahmedabad, Gujarat with saleable area of 8.86 lakh sq ft (lsf). AIPL has received approvals for land and other relevant clearances for the projects. Furthermore, during Q4FY13 (refers to the period January 01 to March 31), AIPL has completed the project named 'Silver Parikrama' (46 luxurious bungalows) at Sola, Ahmedabad with a project cost of INR16.57 crore and expected overall revenue of INR18.57 crore out of which INR16.66 crore has already been received till August 31, 2013. CHANDIGARH EDUCATIONAL: CARE Reaffirms BB+ Rating on INR30cr Loan ----------------------------------------------------------------- CARE reaffirms the rating assigned to enhanced bank facilities of Chandigarh Educational Society. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 30.00 CARE BB+ Reaffirmed Facilities Rating Rationale The rating continues to remain constrained by the limited track record of operations being the societies second year of operations, moderate debt protection indicators in the short to medium term due to the large initial capital outlay and moderate financial risk profile. The rating is further constrained by the competition from other institutions, limited reach on account of single campus operations and high level of government regulation in the education sector. However, the rating derives strength from the society's experienced members and management team, established brand name of the group in the region and healthy student enrolment providing reasonable revenue stream in the medium term. Going forward, CES's ability to achieve the projected student enrolments while maintaining a favourable capital structure would remain the key rating sensitivities. Chandigarh Educational Society (CES) was established in the year 2009 by Mr. Rashpal Singh Dhaliwal and family members for developing and operating educational institutes for graduation and post graduation courses. CES has established Engineering and Management College under the name of 'CGC- Technical campus' in FY12 (refers to the period April 1 to March 31) with its campus located in Jhanjheri, Mohali. CES is offering courses in computer engineering, electronics engineering, mechanical engineering and civil engineering, 'Faculty of Management' offering bachelors and masters level management courses and 'Department of Computer Application' offering bachelor level courses. CES has enrolled its second batch of students for academic batch 2013-14 with 100% enrollment for 1144 students. During FY13, CES has a total operating income of INR7.18 crore and surplus of INR1.29 crore with GCA of INR2.94 crore. DHARAMPAL IRON: CARE Assigns 'BB-' Rating to INR45cr LT Loans ------------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Dharampal Iron and Steel Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 45 CARE BB- Assigned Facilities Long/Short-Term 30 CARE BB-/CARE A4 Assigned Bank Facilities Rating Rationale The ratings of the bank facilities of Dharampal Iron and Steel Private Limited are constrained by the modest scale of its trading operations, high working capital intensity, thin profitability and its high leverage. The ratings are further constrained by its susceptibility to volatile commodity prices and its presence in a highly fragmented steel trading business. The ratings, however, derive comfort from the long track record of the promoters in the steel trading business. The ability of DIPL to increase its scale of operations while efficiently managing its working capital and volatility associated with the prices of traded goods along with an improvement in its profitability and capital structure are the key rating sensitivities. Setup in August 02, 2012 by two brothers Mr. Varun Gupta and Mr. Vivek Gupta, DIPL is engaged in the trading of various steel products such as mild steel plates, iron beams, and channels, etc. The promoter family is involved in the business of steel trading since 1964. Before incorporation of DIPL, the promoter family did the similar business under the name & style of 'M/s Dharampaul Associates'. As per the audited results for approximately eight months of its operations in FY13 (refers to the period August 13 to March 31), DIPL has reported a total operating income of INR134.79 crore and PAT of INR3.50 crore. DUNCANS TEA: CARE Rates INR18cr LT Bank Loans at 'BB' ----------------------------------------------------- CARE assigns 'CARE BB' rating to the bank facilities of Duncans Tea Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 18.0 CARE BB Assigned Facilities Rating Rationale The above rating is constrained by low profitability margins inherent in the nature of business, risk associated with volatility in tea prices, lack of backward integration, high gearing, high utilization of working capital limits and stiff competition. The above constraints are partially offset by the long experience of the promoters, established brand, wide marketing & distribution channel and favourable industry outlook for packet tea. Improvement in profitability and capital structure with effective working capital management are the key rating sensitivities. Duncans Tea Limited, belonging to the Kolkata-based Duncan Goenka group, was incorporated in 1979. Since inception, the company has been primarily engaged in blending, branding and marketing of tea in the domestic market. DTL has four tea blending and packaging units (one each at Nagpur, Faridabad, Kanpur and Kolkata), with combined capacity of 15,600 TPA. DTL sells its tea under the brands 'Double Diamond', 'Sargam', 'Shakti', 'Runglee Rungliot', etc. which cater to all three segments viz. premium, mid-market and economy. The Board of Directors comprises of three members with one member from the promoter's family. The Duncan Goenka group, which has interest in sectors like tea, paper, chemical and engineering, is spearheaded by Mr. G. P. Goenka (73 years) duly supported by his son Mr. S. V. Goenka (38 years). Mr. G. P. Goenka is an ex- President of FICCI. During FY12 (refers to the period October 01 to September 30), DTL earned a PAT (after deferred tax) of INR2.3 crore (INR1.8 crore in FY11) on a total operating income of INR183.0 crore (INR148.6 crore in FY11). As per the provisional results, DTL achieved a total operating income of INR154.7 crore during 9MFY13. ELECTROSTEEL STEELS: CARE Ups Rating on INR8,356cr Loans to 'B' --------------------------------------------------------------- CARE revises the rating assigned to bank facilities of Electrosteel Steels Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8,356.3 'CARE B' Revised Facilities from CARE D Long-term/Short- 750.0 'CARE B/CARE A4' Revised term Bank from CARE D/CARE D Facilities Short-term Bank 850.0 'CARE A4' Revised Facilities from CARE D Rating Rationale The revision in ratings follows approval of corporate debt restructuring (CDR) scheme by CDR EG on Sep 26, 2013 and regularization of debt servicing by the company in May 2013. The ratings are constrained by considerable delay in the implementation of ongoing project, delay in tying up of additional funds for funding the enhanced project cost and deterioration in financial risk profile marked by cash losses incurred in FY13 & Q1FY14. Furthermore, the ratings continue to be constrained by implementation risks of all the facilities of the project, cyclical nature of the steel industry along with stiff competition from existing large integrated steel players. However, the ratings derive strength from the experienced promoter group, strategic equity investors with reputed Technical-cum- financial collaborator with assured off-take agreement for the DI pipes and Pig iron, captive mines (coking coal and iron ore) of the group. Successful completion and implementation of all the facilities of the large ongoing project without any further delay and within cost estimates would be important. This along with the ability of the company to achieve desired production levels and successful offloading of the same would be the key rating sensitivities. Electrosteel Steels Ltd (ESL), promoted by the Electrosteel group of Kolkata, was incorporated in December 2006. ESL is setting up a 2.51 million tonnes per annum (MTPA) integrated steel and ductile iron pipe project (including Captive Power Plant [CPP] of 120 MW) at Bokaro, Jharkhand. ESL incurred cash loss in FY13 due to higher input costs coupled with delay in project commissioning and cost escalation to the tune of INR2,300 crore on account of revision in project scope from 2.20 MTPA to 2.51MTPA, resulted into delays in debt servicing obligations during January to March 2013. However, the promoters have infused funds in order to regularize past delays till February 2013 and acceptance of corporate debt restructuring (CDR) scheme by ESL's bankers from March 1, 2013. During FY13 (refers to the period from April 1 to March 31), ESL reported a net sales of INR137.2 crore and a loss of INR280.0 crore. In Q1FY14 (Prov.), ESL reported a net sales of INR119.8 crore and loss of INR70.7 crore. GARG INOX: CARE Assigns 'BB' Rating to INR111.92cr LT Bank Loans ---------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Garg Inox Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 111.92 CARE BB Assigned Facilities Short-term Bank 87.36 CARE A4 Assigned Facilities Rating Rationale The ratings are constrained by high gearing levels, moderate debt coverage indicators, relatively lower net profit margins and high working capital intensity of operations. The ratings also factor in high competition and inherent cyclical nature of the steel industry. However, the ratings derive strength from the long experience of the promoters in the steel industry, established track record of Garg Inox Ltd's (GIL) operations, diversified customer base and consistent growth in scale of operations over the recent years. The ability of the company to profitably scale-up operations with improvement in capital structure and working capital management remain the key rating sensitivities. Incorporated in 1991, Garg Inox Limited is engaged in manufacturing and export of steel products which primarily include stainless steel wire, mild steel wire, galvanized wire, aluminum alloy wire, zinc wire, amongst others. The products find large application in automotive, railways, engineering, construction and other allied industries with a diversified customer-base across both domestic and export market. GIL operates two manufacturing facilities each at Bahadurgarh, Haryana and Pune, Maharashtra. The company also has an associate concern namely Garg Sales Inc, USA that looks after the export sales and marketing functions for GIL. The company is recognized as a one-star export house by Directorate General of Foreign Trade (DGFT). GIL reported a PAT of INR3.70 crore on a total income of INR433.95 crore for FY13 as compared with PAT of INR3.17 crore on a total income of INR378.61 crore for FY12. In the quarter ended June 30, 2013 (Provisional), GIL reported PAT of INR1.27 crore on a total operating income of INR118.02 crore. HOSPITALITY EDUCATION: CARE Puts 'BB-' Rating on INR2.28cr Loans ---------------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Hospitality Education Services International. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 2.28 CARE BB- Assigned Facilities Short-term Bank 4.80 CARE A4 Assigned Facilities The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo change in case of withdrawal of capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Hospitality Education Services International (HES) are primarily constrained by its small scale of operations, leveraged capital structure and moderate debt service coverage indicators. The ratings are further constrained by the constitution of the entity as a proprietorship firm and its presence in the highly regulated education sector. The ratings, however, take comfort from the experience of the proprietor and professionally qualified team, moderate profitability margins, well-established infrastructure & placement centre and buoyant prospects of professional education. Going forward, the ability of HES to increase its scale of operations while maintaining the profitability and improvement in its capital structure will be the key rating sensitivities. Hospitality Education Services International (HES) was established in 2002 as a proprietorship to provide education in hotel management. HES is running its institutes under the brand name of RIG Institute of Hospitality & Management since 2007. The institutes are located at Greater Noida, Uttar-Pradesh and Maheshpura, Uttarakhand. The main courses offered are Bachelor of Arts in International Hospitality Administration, Diploma in Hospitality Management, Diploma in International Hotel and Tourism Management etc. For FY12 (refers to the period April 1 to March 31), HES achieved a total operating income of INR6.18 crore with a PAT of INR0.64 crore. HES reported a total operating income of INR6.76 crore with a PAT of INR0.69 crore in FY13 (based on unaudited results). MEHALA MACHINES: CARE Assigns 'D' Ratings to INR37.4cr Loans ------------------------------------------------------------ CARE assigns 'CARE D' rating to the bank facilities of Mehala Machines India Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 30.90 CARE D Assigned Facilities Short-term Bank 6.50 CARE D Assigned Facilities Rating Rationale The ratings are constrained by the ongoing delays and irregularities in debt servicing by Mehala Machines India Limited. The ratings are further constrained by the weak financial risk profile marked by declining revenues, thin profitability, weak debt protection metrics, as well as an elongated operating cycle and the company's exposure to foreign exchange fluctuation risk. The ratings take note of the experience of the promoters, the company's established market position and its relationship with the customers and suppliers. Going forward, the ability of the company to service its debt obligations in a timely manner will be the key rating sensitivity. Mehala Machines India Limited was started as a proprietary concern in 1974, with Mr. C Subramaniam as its proprietor and was later incorporated as a limited company in 1991. The company began importing and distributing industrial sewing products to cater to the entire textile manufacturing value chain. The company is engaged in the trading of sewing machines, motors, embroidery machines, cutting machinery and finished equipment. It also manufactures industrial clutch and induction motors for sewing machines. The company is the sole selling agent of Siruba Sewing Machines in India, Sri Lanka, Singapore and Bangladesh. MMIL has 14 branches in India and overseas branches in Sri Lanka, Bangladesh and Singapore for the distribution of Siruba sewing machines. In 2007, MMIL acquired Sanmarco Texmac Private Limited, a manufacturer of worsted ring frames. MMIL has registered a PAT of INR1.8 crore on a total operating income of INR55.3 crore in FY13 Provisional (refers to the period April 01 to March 31) as compared with a PAT of INR2.7 crore on total operating income of INR68.2 crore in FY12. MOONLITE TECHNOCHEM: CARE Assigns 'BB(SO)' Rating to INR8cr Loans ----------------------------------------------------------------- CARE assigns 'CARE BB (SO)'/'CARE A4 (SO)' ratings to the bank facilities of Moonlite Technochem Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term facilities 8 CARE BB (SO) Assigned Short-term facilities 7 CARE A4 (SO) Assigned Rating Rationale The above rating takes into account the credit enhancement in the form of an unconditional and irrevocable corporate guarantee provided by Vikas Global One Limited [VGOL, rated CARE BB/A4] for the bank facilities of Moonlite Technochem Private Limited. The ratings of VGOL are constrained on account of the modest scale of operations amidst high competition, working capital intensive operations and volatility in the raw material prices. The ratings, however, derive strength from the experienced promoters and management team, diverse product mix with multiple industrial applications and comfortable financial risk profile. Going forward, VGOL's ability to achieve the envisaged revenue and profitability and effectively managing its working capital requirements would be the key rating consideration. Moonlite Technochem Private Limited was incorporated in November 1995 with the name of Akashatha Management Consultants Private Limited which was later on changed to the present one in December 2008. The company is a wholly owned subsidiary of Vikas Global One Limited (rated CARE BB/A4 in March 2013). MTPL is engaged in the trading of various specialty chemical and compounds. The prominent products traded during FY13 (refers to the period April 01 to March 31) included Styrene Butadiene Copolymer (22% of total operating income of FY13), Plastic Granuals (10% of total operating income of FY13) and PVC Resin (5% of total operating income of FY13). About the Guarantor (VGOL) VGOL, promoted by Mr. Nand Kishore Garg, was incorporated in 1984. VGOL is involved in the trading and manufacturing of various petro chemical products like heat stabilizer, thermo plastic rubber compounds (TPR), plasticizer, etc, used in various industries like plastic, footwear and packaging industries. The company is also acting as a distributor of several international companies for specialty chemicals and polymers (LG Chemical Limited, Mitsui Chemicals Inc, Ace Chemical Corporation, etc). NILACHAL CARBO: CARE Rates INR6.9cr LT Bank Loans at 'BB-' ---------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to bank facilities of Nilachal Carbo Metalicks Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 6.90 CARE BB- Assigned Facilities Short-term Bank 67.85 CARE A4 Facilities Rating Rationale The ratings assigned to Nilachal Carbo Metalicks Pvt. Ltd. are constrained by the below average financial risk profile, volatility of input prices, foreign exchange fluctuation risk, customer concentration risk, risk associated with the implementation of the proposed expansion project and the inherent cyclicality of the end-user steel industry. The above constraints are partially offset by the experience of the promoters, reputed customer base and moderate capacity utilisation of the plant. Ability to sustain volatility in raw material and finished goods prices and improve profitability along with future outlook of the steel industry are the key rating sensitivities. NCMPL was incorporated in 2003. The company commenced operation in 2004 with setting up of plant for manufacturing Low ash metallurgical coke (LAMC) with an installed capacity of 50,000 MTPA (metric tonne per annum). Presently, the company has an installed capacity of 1,02,000 MTPA with three coke oven batteries each consisting of 32 ovens at its plant in Jajpur district, Orissa. Additionally, it has leased capacity of 11,850 MTPA in the adjoining area and also trades in LAMC. The current promoter, Mr. B. Panda has been associated with the company since inception. He held 30% stake in the company till April 2011, after which he acquired the entire stake. In FY13, NCMPL earned PAT (after deferred tax) of INR1.24 crore on total operating income INR127.02 crore. PATO BUILDERS: CARE Assigns B+ Rating to INR8.91cr LT Bank Loans ---------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Pato Builders Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.91 CARE B+ Assigned Facilities Short-term Bank 5.00 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Pato Builders Ltd are constrained by its small scale of operation limiting the ability of the company to bid for larger projects, dependence on government contracts, increasing competition in government funded projects and exposure to tender driven process risk, risk of delay in project execution, moderate capital structure due to working capital intensive nature of operations with high collection period and sluggish growth in the construction sector in the current subdued economic scenario. The aforesaid constraints are partially offset by the rich experience of the promoters with a satisfactory track record of operations, long operating history of the company with proven project execution capabilities and long standing association with government clients as an approved contractor , presence of price variation clause in contracts and its strong order book position providing near term revenue visibility. The ability of the company to sustain and further improve its total operating income with maintaining the profitability and ability to enhance its order book position with an improvement in working capital cycle would be the key rating sensitivities. Pato Builders Ltd was originally incorporated as a private limited company in 1997 by Mr. Mukesh Kumar of Jamshedpur (Jharkhand) along with his family members and was converted into a public limited company in November 2009. PBL is registered as a 'Class-I A' Building and Roads (B & R) with Central Public Works Department (CPWD). It is engaged primarily in civil and electrical structural work for government and semi-government bodies with a major focus on the construction of high rise buildings, refurbishment/modification of buildings, schools, hostels, sophisticated and complex laboratories, water supply and sewage disposal and electrical engineering works. PBL has executed various projects mainly for government departments such as Rapid Action Force (RAF), Income Tax Department etc in the last five years in the districts of Jharkhand, Chhattisgarh and New Delhi. During FY12 (refers to the period April 1 to March 31), the company reported a PBILDT of INR3.1 crore (INR2.1 crore in FY11) and a PAT of INR1.1 crore (of INR0.7 crore in FY11) on a total income from operations of INR30 crore (INR 21.3 crore in FY11). Furthermore, the company is reported to achieve a PBT of INR1.8 crore on net sales of INR30.1 crore during FY13 (Provisional). RAJESHREE FIBERS: CARE Rates INR8cr LT Bank Loans at 'BB-' ---------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Rajeshree Fibers. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8 CARE BB- Assigned Facilities The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo a change in case of the withdrawal of capital or the unsecured loans brought by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Rajeshree Fibers is primarily constrained on account of its financial profile marked by thin profitability, leveraged capital structure and below moderate liquidity indicators. The rating is further constrained by its presence in a highly fragmented industry and lowest segment of textile value chain, seasonality associated with raw material availability and susceptibility of operating margins to volatile cotton prices and government regulations. The rating, however, draws strength from the experience of the promoter, established operations, strategically placed within the cotton-producing belt and proximity to raw material source. The ability of RF to increase its scale of operations, improve its profit margins and capital structure will be the key rating sensitivities. RF, established in the year 2001, is a partnership firm promoted by three partners having an equal profit/ loss sharing ratio. The key partner of RF is Mr. Nilesh Gandhi and the other two partners are Ms Rajeshree Mahajan and Ms Anita Mahajan. RF is engaged in the ginning and pressing of raw cotton and its manufacturing facility is located at Khargone, Madhya Pradesh. It has installed 40 ginning machines having an installed capacity of producing 9,500 MT of cotton bales per annum. RF has two associate firms, namely, Rajeshree Cotex (RC) and Rajeshree Industries India Private Limited (RIPL) which are also involved in the business of cotton ginning and pressing. During FY12 (refers to the period April 1 to March 31), RF reported a total operating income of INR79.82 crore (FY11: INR97.26 crore) and a PAT of INR0.37 crore (FY11: INR0.83 crore). As per the provisional result for FY13, RF registered a total income of INR132.62 crore and PAT of INR1.08 crore. RS DEVELOPMENT: CARE Assigns 'BB' Rating to INR15.07cr Bank Loans ----------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of RS Development And Constructions India Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 15.07 CARE BB Assigned Facilities Short-term Bank 12.00 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of RS Development and Constructions India Private Limited are constrained by the company's relatively small scale of operations, its stagnant revenues in the past three years and the decline in profitability in FY13 (refers to the period April 1 to March 31). The ratings are further constrained by the company's long operating cycle due to elongated receivables collection period which in turn has resulted in near full utilization of its working capital limits. The ratings, however, derive strength from the vast experience of the promoters, their established relationship with clients, moderately favorable capital structure and the continued support by way of infusion of funds by the promoters in the past. Going forward, the ability of the company to increase its scale of operations while prudently managing its working capital requirement, grow and diversify its order book, and its ability to improve and sustain its profitability will be the key rating sensitivities. RS Development And Constructions India Private Limited (RSD) was promoted by Mr. R Subramaniam in 2008. RSD was formed by acquiring the assets and liabilities of two partnership firms that were operating under the name of 'M/s RS Constructions' (engaged in the construction industry) and 'M/s RS Transports' (engaged in logistics services) respectively. RSD is primarily involved in executing civil and general construction works such as roads, mass earth evacuation, earth filling, canal and quarry works. In addition, the company also does loading & transporting of limestone, coal and cement. It is also engaged in the manufacture and sale of ready-mix concrete. During FY13, the income from civil infrastructure projects constituted 65% of total income (70% in FY12), civil earth works and transport operations constituted nearly 26% (19% in FY12) and the sale of ready-mix concrete contributed 8% of total income (11% in FY12). The company registered a PAT of INR 0.62 crore on a total operating income of INR 88.06 crore in FY13 as compared with PAT of INR 2.16 crore on total operating income of INR 86.86 crore. SHEIKH BHULLAN: CARE Assigns B+ Rating to INR36.54cr LT Loans ------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Sheikh Bhullan & Sons. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 36.54 CARE B+ Assigned Facilities Short-term Bank 20.00 CARE A4 Assigned Facilities The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Sheikh Bhullan & Sons are constrained by the highly working capital intensive operations, geographical concentration of revenues and highly fragmented nature of the carpet industry. The ratings are further constrained by partnership constitution of the entity and susceptibility to foreign exchange risk. The ratings favorably take into account the long track record of operations, vast experience of the promoters in the carpet industry and its established presence in the international markets. Effective working capital management and sustainability of profitability margins amidst stiff competition are the key rating sensitivities. Sheikh Bhullan & Sons (SBS), promoted by the Rizwan family of Bhadohi, Uttar Pradesh, was incorporated in June 1971 for the manufacturing and export of hand-knotted and hand-tufted woolen and silk carpets of Indo Persian quality. Subsequently in May 2009 the firm shifted focus towards machine-made carpets which takes relatively less time and are less labour intensive as compared with hand-knotted carpets. Due to their low pricing as compared to hand-knotted carpets, there is high demand for machine-made carpets emanating from the US and European countries like Germany and Turkey. Currently, the firm is managed by five partners, all being the family members of the Rizwan group, with equal profit and loss sharing agreement. SBS has two manufacturing units located in Bhadohi, Uttar Pradesh and Kashipur, Utttranchal. While the firm has a dedicated machine-made manufacturing unit in Kashipur, the hand-knotted and hand-tufted carpets are manufactured in Gopiganj, Bhadohi. The firm has 200 looms of its own and 6,500 looms are outsourced. As per provisional results for FY13 (refers to the period April 1 to March 31), the firm has reported a profit after tax (PAT) of INR17.73 crore on a total operating income of INR91.77 crore. SIMTRAD OVERSEAS: CARE Puts 'B+/A4' Rating to INR2cr LT Loans ------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Simtrad Overseas Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/Short- 2 CARE B+/CARE A4 Assigned term Bank Facilities Short-term Bank 16 CARE A4 Assigned Facilities Rating Rationale The ratings assigned to the bank facilities of Simtrad Overseas Private Limited are primarily constrained on account of its modest scale of operations along with high customer concentration risk, presence in the highly fragmented polymer trading industry and its weak financial risk profile as characterized by thin profitability, moderate capital structure, weak debt coverage indicators and moderate liquidity position. The ratings are also constrained on account of working capital intensive nature of operations and vulnerability of profits to fluctuation in the raw material prices and foreign exchange rates. The ratings, however, derive the benefits from long track record of the promoters in the polymer trading industry. The ability of SOPL to increase its scale of operations along with an improvement in its profitability through effective management of the inventory price risk and foreign exchange rate fluctuations are the key rating sensitivities. Indore-based (Madhya Pradesh), SOPL was incorporated in September 2008 by Mr. Abhay Gupta and Mr. Pankaj Patodi. The company is engaged in the trading of plastic granules mainly Polyvinyl Chloride (PVC) resins, PP granules, HDPE granules, LDPE granules, LLDPE granules and EVA granules. SOPL partly imports plastic granules from Dubai, Saudi Arabia, Qatar U.A.E. etc and also procures plastic granules from domestic suppliers. SOPL sells its products in the domestic market only through its sole branch located at Indore. As per the audited results for FY13 (refers to the period April 1 to March 31), SOPL reported a total operating income of INR42.18 crore (FY12: INR29.89 crore) and a Profit after Tax of INR0.17 crore (FY12: INR0.14 crore). SINTECH PRECISION: CARE Cuts Ratings on INR10cr Loans to 'D' ------------------------------------------------------------ CARE revises the rating assigned to the bank facilities of Sintech Precision Products Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 4.50 CARE D Revised from Facilities CARE C Short-term Bank 5.50 CARE D Revised from Facilities CARE A4 Rating Rationale The revision in ratings of Sintech Precision Products Limited takes into account the ongoing delays in debt servicing due to its weak liquidity position. Incorporated in 1986, SPPL is a closely held public limited company, managed by Mr. NC Dhingra and other family members. SPPL has its manufacturing facilities at Ghaziabad, Uttar Pradesh, and is engaged in manufacturing a wide range of pumps. The company also undertakes contracts for manufacturing and complete installation of the pumps for its customers on turnkey basis, provides after sale services which include spare parts etc and consultation services to its customers. For FY12 (refers to the period April 1 to March 31), SPPL achieved a total operating income of INR20.25 crore with a PAT of INR0.31 crore. SPARSH AUTOMOBILES: CARE Rates INR14.5cr LT Bank Loans at 'BB' -------------------------------------------------------------- CARE assigns 'CARE BB' rating to the bank facilities of Sparsh Automobiles Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14.5 CARE BB Assigned Facilities Rating Rationale The rating assigned to the bank facilities of Sparsh Automobiles Pvt ltd is constrained by its low profitability, working capital intensive nature of operation leading to high gearing ratio, existence of contract renewal risk, limited bargaining power with MSIL, dependence on volume momentum and sluggish growth in the automobiles industry. The aforesaid constraints are partially offset by the rich experience of the promoters, authorized dealership of MSIL and integrated nature of business, long track record of operations with increasing business level and a good market presence in Chhattisgarh. The ability to improve the scale of operations with profitability and ability to manage working capital effectively would be the key rating sensitivities. Incorporated in August 2005, Raipur-based (Chhattisgarh) Sparsh Automobile Pvt Ltd was promoted by brothers, Mr. Surendra Ahuja and Mr. Suresh Ahuja. It commenced operations from May 2006 as a second authorized dealer of Maruti Suzuki India Limited (MSIL) vehicles spares & accessories for the state of Chhattisgarh. It offers passenger vehicles of MSIL through its showrooms equipped with 3-S facilities (Sales, Service and Spare- parts). Currently, SAPL has four Maruti passenger car showrooms, at Pachpedinaka, Pandri, Rajim (all at Raipur) and Mahasamund (Chhattisgarh) wherein it also provides repair and refurbishment services for Maruti cars. This apart, it has a warehouse, having a capacity to store around 200 passenger cars and a stock yard at Panchpedinaka for vehicles, spares and accessories. Besides the sale of new cars and service of old cars, SAPL also sells and purchases pre-owned cars in Chhattisgarh under Maruti True value. During FY12 (refers to the period April 1 to March 31), the company reported a PBILDT of INR2.7 crore (Rs.2.1 crore in FY11) and a PAT of INR0.7 crore (of INR0.6 crore in FY11) on a total income from operations of INR76.7 crore (Rs.71.6 crore in FY11). Furthermore, the company has reported to achieve net sales of INR84 crore during FY13 (Estimated). VENKATESWARA WIRES: CARE Reaffirms BB Rating on INR13.8cr Loans --------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Venkateswara Wires Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 13.80 CARE BB Reaffirmed Facilities Short-term Bank 4.90 CARE A4 Reaffirmed Facilities Long-term/Short- 35.00 CARE BB/CARE A4 Reaffirmed term Bank Facilities Rating Rationale The ratings continue to be constrained by the moderate scale of operations of Venkateswara Wires Private Limited (VWPL), moderate profitability led by bid the driven nature of business with intense competition, weak debt coverage indicators, moderately stressed liquidity position and high working capital intensity of its operations. The ratings, however, continue to factor in VWPL's established track record and experienced promoter group, moderate order book position with price variation clause and firm power purchase agreements with the respective state power distribution utilities for its windmills. The ability of the company to increase its scale of operations and improve its profitability is the key rating sensitivity. Incorporated in 1988, VWPL is engaged in the manufacturing of power transmission & distribution conductors and cross linked polythene insulated power cables (XLPE cables). The company has its plant with an installed capacity of 40,000 kilometers (km) and registered office at Jaipur, Rajasthan. The main promoters of VWPL, Mr. Sanjay Saboo and Mr. Rohit Saboo have more than two decades of experience in the industry. During FY07 (refers to the period April 01 to March 31) to FY10, the company installed three windmills of 600 KW each, of which one is located in Maharashtra and the other two in Rajasthan. The company is technically and financially qualified to bid in the tenders floated by Power Grid Corporation of India Ltd (PGCIL) apart from other state electricity boards. During FY13, VWPL reported a total operating income of INR118.64 crore (INR114.60 crore in FY12) and profit after tax of INR0.74 crore (INR 0.10 crore in FY12). During Q1FY14 (UA), the company earned a PBT of INR0.38 crore (INR 0.26 crore in Q1FY13) on a total operating income of INR24.06 crore (INR22.71 crore in Q1FY13). ==================== N E W Z E A L A N D ==================== CHATHAM ISLAND: Maori Firms Express Interest in Fishing Company --------------------------------------------------------------- Radio New Zealand News reports that several Maori enterprises are said to be interested in a fishing firm that has gone into liquidation in the Chatham Islands. The business and assets of Chatham Island Seafoods 2009 Ltd are up for sale, with the operation including a factory, two vessels and a fishing quota, the report relates. According to the report, PwC liquidator Jeremy Morley said the business can be broken up, and bids will be accepted for individual items or a range of them. The quota, which includes blue cod, is the most readily saleable asset because there is an open market for it, the report notes. Radio NZ relates that Mr. Morley said the processing factory sits on about 1,215 hectares of land. He said that while the assets are in the process of being sold he can't name the Maori organisations that have expressed an interest, the report adds. MONTESSORI FOUNDATION: Ex-Manager May Lose NZ$66K Compensation -------------------------------------------------------------- Chris Gardner at Waikato Times reports that a former Hamilton pre- school manager may not see the NZ$66,155 she was awarded by the Employment Relationship Authority because her employer went into liquidation the day before the hearing. According to the report, the authority found in Tania Christensen's favor when it decided the Montessori Foundation trust had unjustifiably dismissed her from her job at the Cameron Rd centre on October 18, 2012. She was suspended on September 27, 2012, after continuously complaining of being short staffed. She did not get a lunch break and was refused annual leave. The Waikato Times relates that a week before the October 10 hearing the trust thumbed its nose at Ms. Christensen's lawyer Scott McKenna by changing its name to Puna Chambers Inc, also the name of the Hamilton practice where he worked. Mr. McKenna said his legal practice intended complaining to the Law Society about the name change, the report relays. The Waikato Times notes that a day before the hearing the trust appointed Julian Henson, of Hamilton, its liquidator. Montessori Foundation Ltd director David Hayes told the Waikato Times he had resigned from the trust before it was placed into liquidation. TACHIKAWA FOREST: Rotorua Mill Re-start Possible, Receivers Say --------------------------------------------------------------- Radio New Zealand News reports that the receivers for a Rotorua sawmill -- where up to 130 jobs could be lost -- said they will assess over the next few days whether they can re-start operations there. Tachikawa Forest Products (NZ) Ltd was placed in receivership on Oct. 18 and receivers KordaMentha told staff not to come to work on because the plant is shut down until further notice, according to Radio New Zealand News. The report notes that Brendon Gibson of KordaMentha said staff will be paid for their last week's work. "The business had virtually ceased trading because it was unable to secure log supply, obviously because of its financial position," the report quoted Mr. Gibson as saying. "What we're doing at the moment is we're going to put the business on the market and we're just assessing whether we can restart operations." The report notes that First Union General Secretary Robert Reid says the company has been struggling with problems common to the wood processing industry. Meanwhile, the report relates that Rotorua's newly elected mayor, Stephanie "Steve" Anne Chadwick, said the likely job loss are "devastating". Ms. Chadwick said she was aware the company was trading under difficult circumstances, the report notes. Ms. Chadwick said it's terrible that up to 130 jobs could go, because behind those workers are families, and that many job loses is devastating, particularly to a community the size of Rotorua, the report discloses. Ms. Chadwick said she and MPs Te Ururoa Flavell and Todd McClay will meet the unions and sawmill staff, the report adds. ==================== S O U T H K O R E A ==================== TONG YANG: Four More Korean Conglomerates Suffer Credit Crisis -------------------------------------------------------------- Kim Tae-jong at The Korea Times reports that four other business groups are undergoing a credit crisis due to the reckless issuance of corporate bonds or commercial papers (CPs) alongside the Tongyang Group, the head of the nation's financial watchdog said. The Korea Times relates that during a National Assembly inspection, Financial Supervisory Service (FSS) Governor Choi Soo- hyun said there were four conglomerates whose financial affiliates have similar problems to Tongyang. "We are looking into four groups that had their brokerage arms sell CPs or corporate bonds of their affiliates," the report quotes Mr. Choi as saying. "They have similar problems to Tongyang, though not as serious." During the inspection, Mr. Choi apologized for the "Tongyang fiasco," saying that the financial authorities were partly responsible for what happened to individual investors, the Korea Times relays. "Regulators should have worked harder to protect consumers. We are examining this case and will take appropriate measures, if necessary," Mr. Choi, as cited by The Korea Times, said. According to the report, Mr. Choi's apology came as he was grilled over "negligence" in the Tongyang Group's liquidity crisis. The report says lawmakers have claimed that loose monitoring by the FSS was one of the key reasons behind Tongyang's continued issuance of CPs and bonds that have inflicted losses on around 50,000 retail investors. "The group's immoral and illegal practices should be blamed," the report quotes Rep. Kim Young-koo of the opposition Democratic Party (DP) as saying. "And the authorities' failure in policies and the negligence of supervision caused the crisis." The Korea Times notes that cash-strapped Tongyang is alleged to have "fraudulently" issued bonds and CPs without properly informing buyers of the risks; while the financial regulator is blamed for failing to properly manage the situation. Rep. Song Gwang-ho from the ruling Saenuri Party demanded that Mr. Choi take responsibility for the financial losses of individual investors, the report notes. Tong Yang Group is a South Korean conglomerate founded in 1957 as a cement manufacturer. The company through its subsidiaries, engages in constructing houses, and roads and harbors. Its products include ready mixed concrete, PHC piles, admixture, low heat cement, low-heat portland cement, portland cement, and blast furnace slag cement. Yonhap News said the country's 38th-largest conglomerate filed for court receivership for five of its units -- Tongyang Inc., Tongyang Leisure Co., Tongyang International Inc., Tongyang Cement & Energy Co. and Tongyang Networks Corp. -- on Sept. 30 and Oct. 1 after it failed to pay back maturing short-term debts worth some KRW110 billion (US$103.1 million) in time. The group's request for court receivership for five of its affiliates has been accepted, but it is still unknown how investors will be compensated for their losses, The Korea Times reports. Tongyang Chairman Hyun Jae-hyun is currently being investigated by prosecutors over allegations that he ordered the group's brokerage unit, Tongyang Securities, to sell risky bonds issued by other affiliates. The firm sold 67.3 percent of bonds issued by Tongyang affiliates over the past four years. About 90 percent of them were sold to the individual investors, according to the FSS. =============== X X X X X X X X =============== * Asia Sovereign Ratings Resilient to US Negative Watch ------------------------------------------------------- The recent assignment of Rating Watch Negative on the US's AAA sovereign ratings is unlikely to lead directly to downgrades of any Asian sovereigns, even though these are among the largest holders of US Treasuries, says Fitch Ratings. US Treasuries are likely to remain among the most liquid financial instruments, and so would continue to underpin Asian external liquidity and sovereign credit profiles. Asian sovereign credit profiles have generally benefited from a strengthening of their foreign-currency balance sheets since the Asian Financial Crisis in 1997-1998. This has been driven by a rapid pace of reserve accumulation by most countries in the region, up until 2011. The growth in foreign-currency reserves has subsequently slowed. Moreover, this has recently dropped from a year ago in countries such as India, Indonesia, Mongolia and Sri Lanka, due to twin deficit pressures and lower net capital inflows. Nonetheless, regional reserves remain an important buffer against external shocks, and therefore underpin overall sovereign creditworthiness. This factor is not eroded by the Rating Watch Negative on the US's AAA sovereign rating. At end-July 2013, Asian governments owned around 26% of the total marketable Treasury debt. The largest holders were China and Japan, with 11% and 10%, respectively. Nine other Asian sovereigns held 5%. The latest data show that China and Japan have among the world's largest reserves -- USD3.6trn and USD1.2trn, respectively. The foreign-reserve positions of countries such as Korea, Taiwan, Hong Kong, Singapore and India remain among the largest in the world -- in excess of USD200bn. At end-September, IMF data showed that 62% of global reserves for which a currency breakdown is provided is held in US dollars. * BOND PRICING: For the Week Oct. 14 to Oct. 18, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- BOART LONGYEAR MA 7.00 04/01/21 USD 72.75 BOART LONGYEAR MA 7.00 04/01/21 USD 72.75 COMMONWEALTH BANK 1.50 04/19/22 AUD 72.89 EXPORT FINANCE & 0.50 06/15/20 NZD 72.79 EXPORT FINANCE & 0.50 12/16/19 NZD 74.99 MIRABELA NICKEL L 8.75 04/15/18 USD 31.00 MIRABELA NICKEL L 8.75 04/15/18 USD 70.00 NEW SOUTH WALES T 0.50 12/16/22 AUD 67.65 NEW SOUTH WALES T 0.50 10/07/22 AUD 69.23 NEW SOUTH WALES T 0.50 10/28/22 AUD 69.03 NEW SOUTH WALES T 0.50 09/14/22 AUD 69.46 NEW SOUTH WALES T 0.50 03/30/23 AUD 66.66 NEW SOUTH WALES T 0.50 11/18/22 AUD 68.82 NEW SOUTH WALES T 0.50 02/02/23 AUD 67.19 NEWCREST FINANCE 5.75 11/15/41 USD 73.54 NEWCREST FINANCE 5.75 11/15/41 USD 76.76 PALADIN ENERGY LT 3.63 11/04/15 USD 74.00 PALADIN ENERGY LT 6.00 04/30/17 USD 67.48 TREASURY CORP OF 0.50 03/03/23 AUD 67.76 TREASURY CORP OF 0.50 11/12/30 AUD 43.95 TREASURY CORP OF 0.50 08/25/22 AUD 69.13 CHINA ----- CHINA GOVERNMENT 1.64 12/15/33 CNY 66.71 HONG KONG --------- DAVOMAS INTERNATI 11.00 12/08/14 USD 24.75 DAVOMAS INTERNATI 11.00 12/08/14 USD 24.75 INDONESIA TREASUR 6.38 04/15/42 IDR 74.68 PERUSAHAAN PENERB 6.10 02/15/37 IDR 74.04 INDIA ----- 3I INFOTECH LTD 5.00 04/26/17 USD 26.00 CORE EDUCATION & 7.00 05/07/15 USD 28.38 COROMANDEL INTERN 9.00 07/23/16 INR 15.06 DR REDDY'S LABORA 9.25 03/24/14 INR 4.97 ECL FINANCE LTD 21.75 07/07/14 INR 77.81 GTL INFRASTRUCTUR 2.53 11/09/17 USD 39.57 HPCL-MITTAL PIPEL 4.00 10/05/22 INR 64.91 INDIA GOVERNMENT 5.87 08/28/22 INR 73.84 INDIA GOVERNMENT 0.24 01/25/35 INR 17.10 JCT LTD 2.50 04/08/11 USD 20.00 MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00 PRAKASH INDUSTRIE 5.25 04/30/15 USD 51.00 PRAKASH INDUSTRIE 5.63 10/17/14 USD 55.13 PYRAMID SAIMIRA T 1.75 07/04/12 USD 1.00 REI AGRO LTD 5.50 11/13/14 USD 69.93 REI AGRO LTD 5.50 11/13/14 USD 69.93 SHIV-VANI OIL & G 5.00 08/17/15 USD 19.75 SUZLON ENERGY LTD 5.00 04/13/16 USD 46.78 SUZLON ENERGY LTD 7.50 10/11/12 USD 67.38 INDONESIA --------- BAKRIE TELECOM PT 11.50 05/07/15 USD 27.90 BAKRIE TELECOM PT 11.50 05/07/15 USD 27.75 BLD INVESTMENTS P 8.63 03/23/15 USD 62.63 ENERCOAL RESOURCE 9.25 08/05/14 USD 56.33 INDO INFRASTRUCTU 2.00 07/30/10 USD 1.88 JAPAN ----- ELPIDA MEMORY INC 0.50 10/26/15 JPY 11.88 ELPIDA MEMORY INC 0.70 08/01/16 JPY 10.75 ELPIDA MEMORY INC 2.10 11/29/12 JPY 11.88 ELPIDA MEMORY INC 2.03 03/22/12 JPY 13.50 ELPIDA MEMORY INC 2.29 12/07/12 JPY 13.50 JAPAN EXPRESSWAY 0.50 03/18/39 JPY 70.74 JAPAN EXPRESSWAY 0.50 09/17/38 JPY 71.26 TOKYO ELECTRIC PO 2.37 05/28/40 JPY 67.00 TOKYO ELECTRIC PO 1.96 07/29/30 JPY 73.47 KOREA ----- EXPORT-IMPORT BAN 0.50 10/23/17 TRY 67.25 EXPORT-IMPORT BAN 0.50 12/22/17 BRL 62.31 EXPORT-IMPORT BAN 0.50 10/27/16 BRL 71.80 EXPORT-IMPORT BAN 0.50 11/21/17 BRL 63.12 EXPORT-IMPORT BAN 0.50 01/25/17 TRY 72.51 EXPORT-IMPORT BAN 0.50 09/28/16 BRL 72.51 EXPORT-IMPORT BAN 0.50 12/22/17 TRY 65.66 EXPORT-IMPORT BAN 0.50 08/10/16 BRL 74.75 EXPORT-IMPORT BAN 0.50 11/28/16 BRL 71.04 EXPORT-IMPORT BAN 0.50 12/22/16 BRL 70.26 KIBO GREEN HI-TEC 10.00 12/21/15 KRW 30.96 SINBO SECURITIZAT 4.60 06/29/15 KRW 30.27 SINBO SECURITIZAT 4.60 06/29/15 KRW 30.28 SINBO SECURITIZAT 5.00 09/13/15 KRW 30.02 SINBO SECURITIZAT 5.00 09/13/15 KRW 30.00 SINBO SECURITIZAT 10.00 12/27/15 KRW 30.81 SINBO SECURITIZAT 8.00 02/02/16 KRW 29.96 PHILIPPINES ----------- BAYAN TELECOMMUNI 13.50 07/15/06 USD 22.75 BAYAN TELECOMMUNI 13.50 07/15/06 USD 22.75 SINGAPORE --------- BUMI CAPITAL PTE 12.00 11/10/16 USD 70.00 BUMI CAPITAL PTE 12.00 11/10/16 USD 69.98 BUMI INVESTMENT P 10.75 10/06/17 USD 70.25 BUMI INVESTMENT P 10.75 10/06/17 USD 69.63 SRI LANKA --------- SRI LANKA GOVERNM 9.00 06/01/43 LKR 72.17 SRI LANKA GOVERNM 5.35 03/01/26 LKR 57.46 SRI LANKA GOVERNM 7.00 10/01/23 LKR 68.07 SRI LANKA GOVERNM 6.20 08/01/20 LKR 74.21 SRI LANKA GOVERNM 8.00 01/01/32 LKR 68.72 THAILAND -------- G STEEL PCL 3.00 10/04/15 USD 11.75 MDX PCL 4.75 09/17/03 USD 16.75 ********* 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, Julie Anne L. Toledo, 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 ***