TCRAP_Public/101202.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

          Thursday, December 2, 2010, Vol. 13, No. 238

                            Headlines


A U S T R A L I A

CHALLENGE DAIRY: Officially in Receivership
CHARTWELL ENTERPRISES: Former Director to Plead Guilty of Fraud
NUFARM LTD: Reaches Debt Refinancing Arrangements With Banks
NUFARM LTD: Pays ASIC AU$66,000 Fine Over Disclosure Charge


C H I N A

AGRISOLAR SOLUTIONS: Has US$303,207 Profit in Sept. 30 Quarter
CHINA DU KANG: Sept. 30 Balance Sheet Upside-Down by US$7 Million
CHINA FORESTRY: Moody's Assigns 'Ba3' Rating to Senior Bonds
CHINA GLASS: Moody's Reviews 'Caa1' Corporate Family Rating
CHINATEL GROUP: ZTE to Provide Unit With Equipment in Peru

FRANKLIN TOWERS: Posts US$373,000 Net Loss in Third Quarter
KUN RUN: Reports US$512,800 Net Income in September 30 Quarter
NEW ORIENTAL: Incurs US$704,191 Net Loss for Sept. 30 Qtr.
NEW ORIENTAL: Shareholders' Equity Increased After Debt Conversion


H O N G  K O N G

MIB INTERIORS: Court Enters Wind-Up Order
NICHE ASSET: Members' Final Meeting Set for December 28
PATTERN ENTERPRISES: Creditors Get 6.49% Recovery on Claims
POLYWIN ENGINEERING: Creditors Get 100% & 0.92% Recovery on Claims
PORTAL SOFTWARE: Lam and Toohey Step Down as Liquidators

REXODAN INTERNATIONAL: Leung and Leong Step Down as Liquidators
ROAST KITCHEN: Court Enters Wind-Up Order
SANYO OPTONICS: Members' Final Meeting Set for December 28
SIK WAI: Court Enters Wind-Up Order
SINO STATES: Creditors' Proofs of Debt Due December 9

SONIC PRINTING: Court to Hear Wind-Up Petition on January 5
SUCCESS FORCE: Creditors' Proofs of Debt Due December 23
SUN CHEER: Court to Hear Wind-Up Petition on December 8
T TECH: Commences Wind-Up Proceedings
UNI-APEX INTERNATIONAL: Court Enters Wind-Up Order

UNI-TECHNIC COMPANY: Creditors Get 100% & 0.36% Recovery on Claims
UNITED HARVEST: Creditors' Proofs of Debt Due December 31
WAI SHING: Court Enters Wind-Up Order
WEIDA SEMICONDUCTOR: Creditors' Proofs of Debt Due December 29
WING FAT: Creditors' Proofs of Debt Due January 17

WINSHAN CONST: Creditors Get 100% & 1.66% Recovery on Claims
XRG COMPANY: Members' Final General Meeting Set for December 28
ZOTOS INVESTMENTS: Creditors Get 100% & .28% Recovery on Claims


I N D I A

BANK OF BARODA: Fitch Affirms Individual Rating at 'C/D'
C M SMITH: CARE Assigns 'CARE C' Rating to INR80.8cr LT Bank Loan
CANARA BANK: Fitch Affirms Individual Rating at C/D'
COOL DECK: ICRA Assigns 'LBB+' Rating to INR9.4cr Bank Facilities
COSMOS COTTON: CARE Assigns 'CARE BB' Rating to INR54cr LT Loan

DHANLAXMI BANK: Fitch Affirms Individual Ratings at D/E'
GAYATHRI RICE: CARE Rates INR8.5cr LT Bank Loan at 'CARE BB'
HIND BUILDTEC: CARE Rates INR28.55cr LT Loan at 'CARE BB-'
KRISHNAVENI SUGARS: ICRA Places 'LBB+' Rating on INR271.71cr Loan
MADHU INDUSTRIES: CARE Puts 'CARE BB+' Rating on INR14.84cr Loan

NAV DURGA: CARE Assigns 'CARE BB+' Rating to INR104cr LT Loan
SHREE RAYON: ICRA Places 'LBB' Rating on INR3.5cr Term Loan
TRIOFAB (INDIA): ICRA Downgrades Rating on INR7cr Debt to 'LBB'
TRISTAR GLOBAL: ICRA Assigns 'LBB+' Rating to INR7cr Bank Debt


I N D O N E S I A

BANK CIMB: Fitch Affirms 'BB+' Issuer Default Rating
BANK INTERNASIONAL: Fitch Affirms 'BB+' Issuer Default Rating


J A P A N

CORSAIR LIMITED: Fitch Downgrades Ratings on Three Classes
JAPAN AIRLINES: Tokyo District Court Approves Rehabilitation Plan
* S&P Raises Bank Fundamental Ratings on Two Japanese Banks


M A L A Y S I A

NAM FATT: Names Ferrier Hodgson as Unit's Provisional Liquidator
SATANG HOLDINGS: PwC Appointed as Investigative Auditor
VASTALUX ENERGY: Classified as Affected Listed Issuer Under PN17


M O N G O L I A

KHAN BANK: Fitch Affirms Issuer Default Ratings at 'B'
XACBANK LLC: Fitch Affirms 'B' Issuer Default Ratings


N E W  Z E A L A N D

DOMINION FINANCE: Directors Enter Not Guilty Pleas


S I N G A P O R E

SELECT CAPE: Court Enters Wind-Up Order


T A I W A N

CHANG HWA: Fitch Upgrades Individual Rating to 'C' From C/D'




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A U S T R A L I A
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CHALLENGE DAIRY: Officially in Receivership
-------------------------------------------
The collapse of Challenge Dairy was made official on Friday when
it announced it was going into receivership, Margaret River Mail
reports.

Margaret River Mail relates third generation dairy farmer Miles
Mottershead is owed almost AU$300,000 in milk supplied to
Challenge and says he doesn't know how much he will get back.  The
report relates the Mr. Mottershead said that the company had
offered at least 50 cents to every dollar of milk supplied but the
"ordinary" price had left many farmers disappointed.

Mr. Mottershead, Margaret River Mail notes, said it could be
anywhere between six months to years before the repayments came
through, but he hoped he would find out more after Challenge Dairy
Co-operations went into voluntary administration later this week.

The State Government has offered support to Challenge Dairy Co-op
suppliers following the co-op's voluntary administration, the
report says.

Margaret River Mail discloses that Agriculture and Food Minister
Terry Redman said co-op representatives told him their intention
was to appoint administrators and advised farmers to negotiate
individual contracts with other processors.

The State Government is funding farm visits to suppliers of the
co-op while the South West Development Commission works with
industry to ensure this support reaches each co-operative
supplier, the report adds.

Challenge Dairy is a Western Australian dairy company.


CHARTWELL ENTERPRISES: Former Director to Plead Guilty of Fraud
---------------------------------------------------------------
ABC News reports that Graeme Hoy, a former director of Chartwell
Enterprises, has indicated he will plead guilty to fraud charges.

ABC News says Mr. Hoy had been committed to stand trial on more
than 200 fraud charges, but has now indicated he will plead guilty
to 47 counts.

The hearing is likely to be held in Geelong next year, ABC News
adds.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 12, 2009, the Australian Securities and Investments
Commission brought criminal charges against two former officers of
Chartwell Enterprises Pty Ltd.  Ian Rau, a former company
secretary of Chartwell Enterprises, was arrested in Brisbane on
Aug. 11, 2009 and criminally charged with 19 offenses brought by
ASIC.  Graeme Hoy, a former director of Chartwell, was also
criminally charged with 22 offenses.

                     About Chartwell Enterprises

Based in Geelong, Australia, Chartwell Enterprises Pty Ltd was
founded by Ian Rau and Graeme Hoy.  Mr. Hoy also owns a
hospitality company which has recently been placed in
receivership.

The Troubled Company Reporter-Asia Pacific reported on April 30,
2008, that administrators were appointed to look into the collapse
of Chartwell Enterprises.  Bruno Secatore from Cor Cordis
Chartered Accountants was appointed as one of the administrators.
Mr. Secatore was later appointed as the company's liquidator.


NUFARM LTD: Reaches Debt Refinancing Arrangements With Banks
------------------------------------------------------------
Nufarm Limited said Tuesday it executed credit approved term
sheets for a new $900 million syndicated bank facility that will
refinance Nufarm's existing bilateral banking facilities that are
due to expire on December 15, 2010.  The term sheets for the new
facility have been credit approved by Rabobank, ANZ, NAB and HSBC.

The new facility, along with Nufarm's remaining regional banking
facilities (totalling approximately $200 million), will provide
Nufarm with access to approximately $1.1 billion of debt funding.
Following a detailed review of the company's capital structure and
funding requirements by external advisers, Nufarm considers that
this is an appropriate level of funding to meet the current and
future growth needs of the business.

The new facility will have a term of 12 months, expiring on
December 15, 2011, and includes more flexible covenant ratios that
better reflect the seasonal pattern of Nufarm's operations.
The interest margin on the facility will be broadly consistent
with the interest margin that Nufarm paid on its facilities for
the 12 months to July 2010.  All the costs associated with the
bank debt refinancing will be expensed over the next 12 months.

Nufarm also said that it has mandated Rabobank to finalise longer
term debt facilities, including a $300 million asset backed
securitisation facility and a $600 million medium term syndicated
bank debt facility that will, in combination, refinance the 12
month facility.

Nufarm's Managing Director, Doug Rathbone, said the company is
pleased to have finalised negotiations on the new term sheets.

"We are simplifying our banking arrangements to a smaller group of
relationship banks through which we can establish a more efficient
long term banking structure.  With this new facility in place and
the appointment of Rabobank, we can now focus on managing our
global business and rebuilding returns to shareholders."

The company expects to update the market on its first quarter
performance and the progress of its Strategic Review at its Annual
General Meeting to be held on December 2, 2010.

The Sydney Morning Herald reported that Nufarm had been locked in
negotiations with its banks after it breached two key banking
covenants amid falling earnings and asset write-downs.
With a short-term bridging facility due to expire in two weeks,
there were concerns it would need to raise capital if it failed to
strike an agreement with its lenders, SMH reports.

                         About Nufarm Limited

Based in Australia, Nufarm Limited (ASX:NUF)--
http://www.nufarm.com/-- manufactures and supplies a range of
agricultural chemicals used by farmers to protect crops from
damage caused by weeds, pests and disease.  The Company has
production and marketing operations worldwide and sells products
in more than 100 countries.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 6, 2010, Standard & Poor's Ratings Services had placed its
'BB' long-term corporate credit rating on Nufarm Ltd. on
CreditWatch with negative implications after the company's latest
market update.  The CreditWatch reflects S&P's concerns about the
company's liquidity position and its ability to improve
profitability in fiscal 2011.  The 'B' rating on Nufarm's step-up
securities was also placed on CreditWatch with negative
implications.

"The CreditWatch placement reflects S&P's view that Nufarm's
liquidity is currently less than adequate," Standard & Poor's
credit analyst Richard Creed said.  "Resolution of the CreditWatch
is contingent on Nufarm obtaining near-term support from its
lenders.  This could be demonstrated by covenant waivers from
Nufarm's banks, and finalization of terms of a new funding package
that provides the company with access to funding to meet its peak
debt requirements (which typically arise in the third quarter of
the company's fiscal year)."


NUFARM LTD: Pays ASIC AU$66,000 Fine Over Disclosure Charge
-----------------------------------------------------------
Nufarm Ltd has paid a AU$66,000 penalty following an infringement
notice issued by the Australian Securities and Investments
Commission for an alleged failure by the company to disclose
material information regarding its year to date financial results
in the period from February 11, 2010, to March 2, 2010.

ASIC said that by February 11, Nufarm was aware that the company's
after tax net loss for the six months to December 31, 2009 would
be AU$61.8 million, and the after tax operating net loss would be
AU$55.6 million.

The information was presented at a meeting of Nufarm's board of
directors on February 11, 2010.  All of Nufarm's then current
directors as well as a number of the company's senior executives
were present at the meeting.

"Given the information, Nufarm faced uncertainty regarding its
expected half-year profit," ASIC said.

ASIC said that there is evidence that Nufarm senior executives
expected an operating profit in the region of AU$5 to AU$7 million
for the half year ending January 2010.  An operating profit of
AU$7 million would represent an 89% fall from the after-tax net
operating profit in the previous corresponding period.

"As a general policy, a variation in excess of 10% to 15% [of a
previously released financial forecast or expectation] may be
considered material, and should be announced as soon as the entity
becomes aware of the variation," ASIC said.

However, Nufarm did not release a financial forecast or
expectation for the 2010 financial year or half year until
March 2, 2010, ASIC added.

Nufarm agreed to pay the fine following ASIC's issue of an
infringement notice on November 30, 2010.  The notice and the
undertaking follow an ASIC investigation into suspected
contraventions by Nufarm of its continuous disclosure obligations
between December 1, 2009, and March 2, 2010.

ASIC has also accepted an enforceable undertaking from Nufarm
following concerns that Nufarm's financial reporting systems did
not produce sufficient up-to-date information about its financial
performance and current market conditions to enable the company to
have a more precise view of its likely half yearly results at the
time of the contravention alleged in the infringement notice.

The enforceable undertaking from Nufarm requires the company to
engage an independent external consultant to review its financial
reporting and disclosure systems, recommend changes, and review
the implementation and effectiveness of those changes.

Under the terms of the undertaking, Nufarm will implement changes
recommended by the consultant.  The company will also cease
issuing securities using a cleansing notice under sections 708AA
and 708A or a short form prospectus under section 713 of the
Corporations Act or under related ASIC class orders for a minimum
of nine months and not until the external consultant confirms that
the recommended changes to the financial reporting systems and
disclosure systems have been effectively put into operation.

                        About Nufarm Limited

Based in Australia, Nufarm Limited (ASX:NUF) --
http://www.nufarm.com/-- manufactures and supplies a range of
agricultural chemicals used by farmers to protect crops from
damage caused by weeds, pests and disease.  The Company has
production and marketing operations worldwide and sells products
in more than 100 countries.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 6, 2010, Standard & Poor's Ratings Services had placed its
'BB' long-term corporate credit rating on Nufarm Ltd. on
CreditWatch with negative implications after the company's latest
market update.  The CreditWatch reflects S&P's concerns about the
company's liquidity position and its ability to improve
profitability in fiscal 2011.  The 'B' rating on Nufarm's step-up
securities was also placed on CreditWatch with negative
implications.

"The CreditWatch placement reflects S&P's view that Nufarm's
liquidity is currently less than adequate," Standard & Poor's
credit analyst Richard Creed said.  "Resolution of the CreditWatch
is contingent on Nufarm obtaining near-term support from its
lenders.  This could be demonstrated by covenant waivers from
Nufarm's banks, and finalization of terms of a new funding package
that provides the company with access to funding to meet its peak
debt requirements (which typically arise in the third quarter of
the company's fiscal year)."


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C H I N A
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AGRISOLAR SOLUTIONS: Has US$303,207 Profit in Sept. 30 Quarter
--------------------------------------------------------------
Agrisolar Solutions, Inc., filed its quarterly report on Form 10-Q
with the U.S. Securities and Exchange Commission, reporting net
income of $303,207 for the three months ended September 30, 2010,
compared with a net loss of $235,428 for the same period last
year.

The Company reported revenue of $2,897,549 for the three months
ended September 30, 2010, compared with $719,196 for the same
period last year.

The Company's balance sheet at September 30, 2010, showed
$10,896,826 in total assets, $6,994,203 in total liabilities, and
$3,902,623 in stockholders' equity.

As reported in the Troubled Company Reporter on July 20, 2010,
ZYCPA Company Limited, in Hong Kong, China, expressed substantial
doubt about the Company's ability to continue as a going concern,
following its results for the fiscal year ended March 31, 2010.
The independent auditors noted that the Company has incurred
continuous losses.

In the Form 10-Q, Agrisolar Solutions said, "For the six months
ended September 30, 2010, the Company has experienced negative
cash flows from operations of $2,178,308 with an accumulated
deficit of $1,505,004 as of that date.  The continuation of the
Company as a going concern through September 30, 2011, is
dependent upon the continuing financial support from its
stockholders and credit facility.  The Company is currently
pursuing the additional financing for its operations.  However,
there is no assurance that the Company will be successful in
securing sufficient funds to sustain the operations.  These
factors raise substantial doubt about the Company's ability to
continue as a going concern."

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?7022

                     About AgriSolar Solutions

Denver, Colo.-based AgriSolar Solutions, Inc. (OTC BB: AGSO)
through its wholly-owned subsidiary, Shenzhen Fuwaysun Technology
Company Limited, a People's Republic of China corporation, is
engaged primarily in the development, production and sale of solar
products, including a solar insect killer and other products
designed for agricultural and commercial use.  The Company's
manufacturing facility is located in Shenzhen, the People's
Republic of China, and a substantial majority of its current sales
and business operations are in China.

The Company was incorporated in the State of Colorado on March 13,
2006, under the name V2K International, Inc.  On January 8, 2010,
the Company changed its company name from "V2K International,
Inc." to its current name.


CHINA DU KANG: Sept. 30 Balance Sheet Upside-Down by US$7 Million
-----------------------------------------------------------------
China Du Kang Co., Ltd., filed its quarterly report on Form 10-Q,
reporting a net income of $430 for the three months ended
September 30, 2010, compared with net income of $181,512 for the
same period last year.  Total revenue was $585,454 for the third
quarter of 2010, compared with $791,647 in the same period in
2009.

The Company's balance sheet at September 30, 2010, showed
$12,356,303 in total assets, $19,370,309 in total liabilities, and
a $7,014,006 shareholders' deficit.

As reported by the Troubled Company Reporter on August 25, 2010,
Keith Z. Zhen, CPA, in Brooklyn, N.Y., expressed substantial doubt
about the Company's ability to continue as a going concern,
following its 2009 results.  The independent auditor noted that
the Company has incurred operating losses in 2009 and 2008 and has
a working capital deficiency and shareholders' deficiency as of
December 31, 2009.

In the Form 10-Q, China Du Kang said, "The Company had an
accumulated deficit of $17,226,068 at September 30, 2010, that
includes losses of $170,322 for the nine months ended September
30, 2010, and $460,263 for the year ended December 31, 2009.  In
addition, the Company had a working capital deficiency of
$12,520,638 and a shareholders' deficiency of $7,014,006 at
September 30, 2010.  These factors raise substantial doubt about
its ability to continue as a going concern."

The management has taken steps to revise the Company's operating
and financial requirements.  The Company is actively pursuing
additional funding and a potential merger or acquisition candidate
and strategic partners, which would enhance owners' investment.
However, there can be no assurance that sufficient funds required
during the next year or thereafter will be generated from
operations or that funds will be available from external sources
such as debt or equity financings or other potential sources.  The
lack of additional capital resulting from the inability to
generate cash flow from operations or to raise capital from
external sources would force the Company to substantially curtail
or cease operations and would, therefore, have a material adverse
effect on its business.  Furthermore, there can be no assurance
that any such required funds, if available, will be available on
attractive terms or that they will not have a significant dilutive
effect on the Company's existing stockholders.

A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?7025

                        About China Du Kang

Headquartered in Shaanxi, PRC, China Du Kang Co., Ltd. (OTC: CDKG)
was incorporated as U.S. Power Systems, Inc. in the State of
Nevada on January 16, 1987.  The Company manufactures, sells,
licenses and distributes a proprietary line of white wines that
are generally known in China under the heading Du Kang.  Du Kang
is a generic description, like "vodka" or "merlot" and is one of
the most famous Chinese white wine brands.


CHINA FORESTRY: Moody's Assigns 'Ba3' Rating to Senior Bonds
------------------------------------------------------------
Moody's Investors Service has assigned definitive Ba3 senior
unsecured bond rating on the US$300 million, 7.75%, 5-year notes
issued by China Forestry Holdings Co. Ltd.  The outlook on the
rating is stable.

Moody's definitive rating on this debt obligation confirms the
provisional rating assigned on 3 November 2010.  The proceeds of
the bonds will be used for forestry acquisitions and general
working proposes.

                        Ratings Rationale

China Forestry's good forestry asset quality and immediately
harvestable assets offer it the flexibility to ramp up cash flow
through increases in harvest rates.  It has a low cost base
through its unique acquisition model.  Moreover, forestry and wood
fiber industry dynamics and government policy in China are
favorable to the growth of upstream players, such as China
Forestry.

However, China Forestry is a fast growing company with a limited
operating track record.  There are various levels of execution
risk for its business plan.  Moreover, it carries heavy investment
capex as its acquisition model requires upfront cash payments
(within the first 2 years of an acquisition) for forestry land use
rights, resulting in negative free cash flow, especially during
rapid expansion.

Its short history and fast growth mean credit metrics reflective
of a low Ba level.  Its projected cash flow-to-debt metrics over
the next 2 years, such as Retained Cash Flow/Adjusted Debt of 15-
20%, will improve to over 30% in the medium term as harvest
volumes increase.

China Forestry's ratings have been assigned based on factors that
Moody's believes are relevant to the risk profile of China
Forestry, such as the company's (i) business risk and competitive
position compared with other firms within the industry; (ii)
capital structure and financial risk; (iii) projected performance
over the near to intermediate term; and (iv) management's track
record and tolerance for risk.  These attributes were compared
against other issuers both within and outside China Forestry's
core industry; Moody's believes the company's ratings are
comparable with those of other issuers of similar credit risk.

The last rating action for China Forestry was on 3rd November 2010
when Moody's assigned a first time Ba3 corporate family rating and
a provisional Ba3 senior unsecured bond rating to the company.

China Forestry, listed on the Hong Kong Stock Exchange in 2009, is
one of the largest privately owned upstream forest operators in
China in terms of coverage area of owned forest rights.  The
company's forestry assets are located mainly in Sichuan and Yunnan
provinces.


CHINA GLASS: Moody's Reviews 'Caa1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has put on review for possible upgrade
the Caa1 corporate family rating and the Caa2 senior unsecured
rating of China Glass Holdings Ltd.

"This rating action follows the improvement in the company's
operating performance in 1H2010, with an operating margin close to
20% and positive free cash flow -- which have translated into
better credit metrics," says Jiming Zou, a Moody's Analyst.

"Additionally, the company's capital structure improved after an
exchange of about US$40 million in senior notes in 2009," adds
Zou.

"The rating action has also been triggered by the announcement of
a proposed acquisition of JV Investments through a share swap,
which, if successful, will be positive for the company's credit
profile, as it will allow China Glass to gain full control over JV
Investments' operating cash flow and investment decisions without
increasing the group's indebtedness," says Zou.

The review will focus on (1) the potential improvement to
liquidity resulting from the placement of equity shares in
association with the acquisition of the remaining stake in JV
Investments; (2) the company's earnings and cash flow over the
next 12-18 months; (3) its capital expenditure and funding plans;
and (4) the company's access to bank funding.

The last rating action with respect to China Glass was on 3 August
2009, when Moody's affirmed the company's Caa1 corporate family
rating and upgraded its senior unsecured rating to Caa2 from Ca.

China Glass Holdings Ltd is a publicly listed company in Hong Kong
and is the second-largest flat glass manufacturer in China by
capacity, with 17 production lines across the country.  The flat
glass it produces is largely for use in the construction industry.


CHINATEL GROUP: ZTE to Provide Unit With Equipment in Peru
----------------------------------------------------------
ChinaTel Group Inc. disclosed that its subsidiary Perusat S.A. has
finalized a contract for ZTE Corporation to provide Perusat
equipment and services for its deployment of a wireless broadband
telecommunications network in Peru.

Perusat has contracted ZTE to become its exclusive supplier of
infrastructure equipment, consumer terminals, and engineering and
management services for the wireless broadband network Perusat is
deploying in Peru.  The total value of the contract is expected to
be approximately $48 million over the next seven years.  The
purchase orders for the first phase have a value of $6.98 million.
ZTE is financing 85% of the cost of infrastructure equipment
covered in the phase one purchase orders.  National banks in China
with whom ZTE has relationships are expected to finance future
equipment orders, also at 85%.

"We are excited about our partnership with ZTE and its ability to
fully deliver broadband equipment and end-to-end network
solutions," said ChinaTel's CEO George Alvarez. "ZTE has the
foresight to create equipment solutions that will migrate from the
current WiMAX 802.16e protocol to 802.16m, to TD-LTE, or dual band
16m and LTE."  ChinaTel's President, Colin Tay, added: "Our
relationship with ZTE strengthens our plan to be at the forefront
of delivering advanced internet technologies across the globe as
we continue to build our infrastructure in emerging markets like
China and Peru."

The first phase of deployment is scheduled to be completed by
approximately May 2011.  Perusat's sales and marketing effort will
go hand in hand with deployment, and ChinaTel expects to have
subscribers enrolled such that the technical and commercial launch
of the network will occur simultaneously.  Perusat will expand
capacity in each market as subscriber demand dictates.  By virtue
of Perusat's status as a 95% subsidiary, the results of operations
and subscriber revenues generated by the Perusat network will be
reflected on ChinaTel's consolidated financial statements.

                         About China Tel

Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services.  Through its
controlled subsidiaries, the Company provides fixed telephony,
conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction
services.  ChinaTel is presently building, operating and deploying
networks in Asia and South America: a 3.5GHz wireless broadband
system in 29 cities across the People's Republic of China with and
for CECT-Chinacomm Communications Co., Ltd., a PRC company that
holds a license to build the high speed wireless broadband system;
and a 2.5GHz wireless broadband system in cities across Peru with
and for Perusat, S.A., a Peruvian company that holds a license to
build high speed wireless broadband systems.

The Company's balance sheet at June 30, 2010, showed $8.9 million
in total assets, $26.2 million in total liabilities, and a
stockholders' deficit of $17.3 million.

Mendoza Berger & Company, LLP, in Irvine, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results.  The
independent auditors noted that the Company has incurred a net
loss of $56.0 million for 2009, cumulative losses of
$165.4 million since inception, a negative working capital of
$68.8 million and a stockholders' deficit of $63.2 million, and
that the Company's viability is dependent upon its ability to
obtain future financing and the success of its future operations.


FRANKLIN TOWERS: Posts US$373,000 Net Loss in Third Quarter
-----------------------------------------------------------
Franklin Towers Enterprises, Inc., filed its quarterly report on
Form 10-Q, reporting a net loss of $373,002 on $337,177 of revenue
for the three months ended, 2010, compared with a net loss of
$99,550 on $2.2 million of revenue for the same period of 2009.

The Company has an accumulated deficit of $22.5 million at
September 30, 2010.  The Company had a working capital deficiency
of $4.5 million and $4.4 million as of September 30, 2010, and
December 31, 2009, respectively.

Furthermore, as of July 12, 2008, the Company was in default on
its Convertible Notes payments due July 12, 2008.  The Notes
provide that, at the option of the holder, an event of default
shall make all sums of principal and interest then remaining
unpaid and all other amounts payable immediately due and payable
upon demand.  As of September 30, 2010, the unpaid convertible
notes payable balance is $2.8 million; unpaid accrued interest is
$693,761; and unpaid accrued liquidated damages penalty and
default penalty are $2.3 million.

The Company's balance sheet at September 30, 2010, showed
$4.1 million in total assets, $7.9 million in total liabilities,
all current, and a stockholders' deficit of $3.8 million.

Michael T. Studer, CPA, P.C., in Freeport, New York, expressed
substantial doubt about Franklin Towers, Inc.'s ability to
continue as a going concern, following the Company's 2009 results.
The independent auditors noted that the Company has incurred a net
loss of $1.6 million and $8.7 million, for the years ended
December 31, 2009, and 2008, respectively, has an accumulated
deficit of $21.7 million at December 31, 2009, and is in default
on its Convertible Notes payments.

A full-text copy of the Form 10-Q is available for free at:

               http://researcharchives.com/t/s?700f

Chongqing, China-based Franklin Towers Enterprises, Inc., was
incorporated on March 23, 2006, under the laws of the State of
Nevada.  The Company is focused on the production and sale of silk
and silk products.  The Company started its test production at the
end of June 2007 and commenced operations from the third quarter
of 2007.


KUN RUN: Reports US$512,800 Net Income in September 30 Quarter
--------------------------------------------------------------
Kun Run Biotechnology, Inc., filed its quarterly report on Form
10-Q, reporting net income before noncontrolling interest of
$512,824 on $2.5 million of revenue for the three months ended
September 30, 2010, compared with net income before noncontrolling
interest of $2.1 million on $4.0 million of revenue for the same
period last year.

The Company's balance sheet at September 30, 2010, showed
$40.9 million in total assets, $5.3 million in total liabilities,
and stockholders' equity of $35.6 million.

"In July 2010, the Company received a notice from the Hainan Food
and Drug Administration that the agency would investigate certain
products of the Company due to production procedure concerns and
at the same time the GMP license of the Company would be suspended
until the investigation is concluded," the Company said in the
filing.

"All operations of the production lines and all manufacturing of
the medicine products are suspended.  The agency has not concluded
its investigation.  The Company believes that due to the prolonged
investigation, it is unlikely that its production will resume any
time soon and its results of operations will be adversely
impacted.  On September 3, 2010, the Company entered into a
Redemption Agreement of which the Company agreed to redeem all of
the 5,228,758 Series A Preferred Stock and warrants to purchase up
to 1,568,627 shares of Series A Preferred Stock for a cash
consideration $9 million."  In view of the aforementioned factors,
the Company believes that there is substantial doubt about its
ability to continue as a going concern.

A full-text copy of the Form 10-Q is available for free at:

               http://researcharchives.com/t/s?7011

Based in Haikou City, Hainan Province, China, Kun Run
Biotechnology, Inc., formerly known as Aspen Racing Stables, Inc.,
was incorporated in the State of Nevada on March 10, 2006.  The
Company is engaged, through Hainan Zhonghe Pharmaceutical Co.,
Ltd., its China based indirect subsidiary, in the development,
manufacture, marketing and sale of prescription polypeptide drugs.
The Company's principal products are polypeptide derivatives as
well as chemical products.  Products are sold primarily in China
and through Chinese domestic pharmaceutical distributors licensed
by the Chinese government.  Manufacturing and sales facilities are
located in the City of Haikou, in Hainan Province.


NEW ORIENTAL: Incurs US$704,191 Net Loss for Sept. 30 Qtr.
----------------------------------------------------------
New Oriental Energy & Chemical Corp. filed its quarterly report on
Form 10-Q, reporting a net loss of $704,191 on $3.19 million of
revenue for the three months ended Sept. 30, 2010, compared with a
net loss of $3.17 million on $7.55 million of revenue for the same
period a year ago.

The Company's balance sheet at Sept. 30, 2010, showed
$76.09 million in total assets, $74.32 million in total
liabilities, and stockholders' equity of $1.76 million.

A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?6ffe

                        About New Oriental

New Oriental Energy & Chemical Corp. (NASDAQ: NOEC)
-- http://www.neworientalenergy.com/-- was incorporated in the
State of Delaware on November 15, 2004.  The Company is an
emerging coal-based alternative fuels and specialty chemical
manufacturer based in Henan Province, in the Peoples'
Republic of China.  The Company's core products are urea and other
coal-based chemicals primarily utilized as fertilizers.  All of
the Company's sales are made through a network of distribution
partners in the Peoples' Republic of China.

As reported in the Troubled Company Reporter on July 2, 2010,
Weinberg & Company, P.A., in Boca Raton, Florida, expressed
substantial doubt about the Company's ability to continue as a
going concern, following its results for the fiscal year ended
March 31, 2010.  The independent auditors noted that the Company
incurred a net loss of $12.8 million and has negative cash flows
from operations of $7.5 million for the year ended March 31, 2010,
and has a working capital deficit of $44.1 million at March 31,
2010.


NEW ORIENTAL: Shareholders' Equity Increased After Debt Conversion
------------------------------------------------------------------
In its quarterly report on Form 10-Q for the period ended
September 30, 2010, filed with the Securities and Exchange
Commission on November 22, 2010, New Oriental Energy & Chemical
Corp. reported total shareholders' equity of $1,765,697 as of
September 30, 2010, which included the deduction of a quarterly
net loss of $660,901.

The Company entered into an Indebtedness Conversion Agreement with
Xingyang Hongchang Channel Gas Engineering Co., Ltd. on
October 18, 2010, for the conversion of $3,010,200 of debt into
3,010,200 shares of common stock of the Company.

As a result of that conversion, as of November 23, 2010, the
Company is reporting a total shareholders' equity of $4,741,299.

The Company's balance sheet at Sept. 30, 2010, showed $76.09
million in total assets, $74.32 million in total liabilities, and
stockholders' equity of $1.76 million.

                        About New Oriental

New Oriental Energy & Chemical Corp. (NASDAQ: NOEC)
-- http://www.neworientalenergy.com/-- was incorporated in the
State of Delaware on November 15, 2004.  The Company is an
emerging coal-based alternative fuels and specialty chemical
manufacturer based in Henan Province, in the Peoples'
Republic of China.  The Company's core products are urea and other
coal-based chemicals primarily utilized as fertilizers.  All of
the Company's sales are made through a network of distribution
partners in the Peoples' Republic of China.

As reported in the Troubled Company Reporter on July 2, 2010,
Weinberg & Company, P.A., in Boca Raton, Florida, expressed
substantial doubt about the Company's ability to continue as a
going concern, following its results for the fiscal year ended
March 31, 2010.  The independent auditors noted that the Company
incurred a net loss of $12.8 million and has negative cash flows
from operations of $7.5 million for the year ended March 31, 2010,
and has a working capital deficit of $44.1 million at March 31,
2010.


================
H O N G  K O N G
================


MIB INTERIORS: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on August 11, 2010,
to wind up the operations of MIB Interiors Design Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


NICHE ASSET: Members' Final Meeting Set for December 28
-------------------------------------------------------
Members of Niche Asset Investment Limited will hold their final
general meeting on December 28, 2010, at 10:00 a.m., at Level 28
Three Pacific Place, 1 Queen's Road East, in Hong Kong.

At the meeting, Chan Mi Har and Ying Hing Chiu, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


PATTERN ENTERPRISES: Creditors Get 6.49% Recovery on Claims
-----------------------------------------------------------
Pattern Enterprises (International) Limited, which is in
creditors' voluntary liquidation, paid the dividend to its
creditors on November 26, 2010.

The company paid 6.49% for preferred claims.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


POLYWIN ENGINEERING: Creditors Get 100% & 0.92% Recovery on Claims
------------------------------------------------------------------
Polywin Engineering Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 100% and 0.92% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


PORTAL SOFTWARE: Lam and Toohey Step Down as Liquidators
--------------------------------------------------------
Mr. Rainier Hok Chung Lam and Mr. John James Toohey stepped down
as liquidators of Portal Software (Asia Pacific) Limited on
November 16, 2010.


REXODAN INTERNATIONAL: Leung and Leong Step Down as Liquidators
---------------------------------------------------------------
Leung Hok Lim and Leong Ting Kwok stepped down as liquidators of
Rexodan International Limited on November 19, 2010.


ROAST KITCHEN: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on November 12, 2010,
to wind up the operations of Roast Kitchen Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


SANYO OPTONICS: Members' Final Meeting Set for December 28
----------------------------------------------------------
Members of Sanyo Optonics (Hong Kong) Company Limited will hold
their final general meeting on December 28, 2010, at 9:00 a.m., at
Room 1005, Allied Kajima Building, 138 Gloucester Road, Wanchai,
in Hong Kong.

At the meeting, Leung Mei Fan, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


SIK WAI: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on November 9, 2010,
to wind up the operations of Sik Wai Sin Restaurant Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


SINO STATES: Creditors' Proofs of Debt Due December 9
-----------------------------------------------------
Creditors of Sino States Development Limited, which is in
liquidation, are required to file their proofs of debt by Dec. 9,
2010, to be included in the company's dividend distribution.

The company's liquidators are:

         Andrew George Hung
         Yau Sun Yu Sonia
         Room 1501-02, 15/F., Podium Plaza
         No. 5 Hanoi Road
         Tsimshatsui, Kowloon
         Hong Kong


SONIC PRINTING: Court to Hear Wind-Up Petition on January 5
-----------------------------------------------------------
A petition to wind up the operations of Sonic Printing and Carton
Company Limited will be heard before the High Court of Hong Kong
on January 5, 2011, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on November 2, 2010.

The Petitioner's solicitors are:

          Tsang, Chan & Wong
          16th Floor, Wing On House
          No. 71 Des Voeux Road Central
          Hong Kong


SUCCESS FORCE: Creditors' Proofs of Debt Due December 23
--------------------------------------------------------
Creditors of Success Force Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Dec. 23,
2010, to be included in the company's dividend distribution.

The company commenced wind-up proceedings on November 22, 2010.

The company's liquidator is:

         Lam Ying Sui
         10/F., Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


SUN CHEER: Court to Hear Wind-Up Petition on December 8
-------------------------------------------------------
A petition to wind up the operations of Sun Cheer Technology
Limited will be heard before the High Court of Hong Kong on
December 8, 2010, at 9:30 a.m.

Koninklijke Philips Electronics N.V. filed the petition against
the company on July 14, 2010.

The Petitioner's solicitors are:

          Barlow Lyde & Gilbert
          19th Floor, Cheung Kong Center
          2 Queen's Road Central
          Hong Kong


T TECH: Commences Wind-Up Proceedings
-------------------------------------
Members of T Tech Fund Limited, on November 26, 2010, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidators are:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         22nd Floor, Prince's Building
         Central, Hong Kong


UNI-APEX INTERNATIONAL: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Hong Kong entered an order on October 6, 2010,
to wind up the operations of Uni-Apex International Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


UNI-TECHNIC COMPANY: Creditors Get 100% & 0.36% Recovery on Claims
------------------------------------------------------------------
Uni-Technic Company Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 100% and 0.36% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


UNITED HARVEST: Creditors' Proofs of Debt Due December 31
---------------------------------------------------------
Creditors of United Harvest Asia Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 31, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on November 18, 2010.

The company's liquidator is:

         Fung Kam Yin Rocina
         Unit 2209, 22/F
         Wu Chung House
         213 Queen's Road East
         Wanchai, Hong Kong


WAI SHING: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on September 17,
2010, to wind up the operations of Wai Shing Transportation
Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


WEIDA SEMICONDUCTOR: Creditors' Proofs of Debt Due December 29
--------------------------------------------------------------
Creditors of Weida Semiconductor Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 29, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on November 16, 2010.

The company's liquidator is:

         Kong Chi How Johnson
         25th Floor Wing On Centre
         111 Connaught Road
         Central, Hong Kong


WING FAT: Creditors' Proofs of Debt Due January 17
--------------------------------------------------
Creditors of Wing Fat Loong Metal (Asia) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by January 17, 2011, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 19, 2010.

The company's liquidators are:

         Ms. Yip Chee Lan
         Ms. Regina Tam Lai Ha
         12 Science Park East Avenue
         6/F, Hong Kong Science Park
         Shatin, New Territories
         Hong Kong


WINSHAN CONST: Creditors Get 100% & 1.66% Recovery on Claims
------------------------------------------------------------
Winshan Construction Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 100% and 1.66% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


XRG COMPANY: Members' Final General Meeting Set for December 28
---------------------------------------------------------------
Members of XRG Company Limited will hold their final general
meeting on December 28, 2010, at 10:00 a.m., at 2503 Bank of
America Tower, 12 Harcourt Road, Central, in Hong Kong.

At the meeting, Susanna Bik-Chu Lung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


ZOTOS INVESTMENTS: Creditors Get 100% & .28% Recovery on Claims
---------------------------------------------------------------
Zotos Investments Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 100% and 0.28% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


=========
I N D I A
=========


BANK OF BARODA: Fitch Affirms Individual Rating at 'C/D'
--------------------------------------------------------
Fitch Ratings has affirmed India's Bank of Baroda's Long-term
Issuer Default Rating at 'BBB-' with a Stable Outlook, Short-term
IDR at 'F3', National LT rating at 'AAA(ind)' with a Stable
Outlook, National ST rating at 'F1+(ind)', Individual rating at
'C/D', Support rating at '2' and Support Rating Floor at 'BBB-'.
The agency has also affirmed the ratings on BOB's 100% subsidiary
- Bank of Baroda New Zealand - at 'BBB-' with a Stable Outlook.
Additional rating actions are detailed at the end of the release.

BOB's LT and Individual ratings reflect its robust financials and
adequate capitalization, although Fitch expects a high propensity
of sovereign support to the bank, if required given its formidable
franchise (third-largest deposit base in India).  This is also
reflected in its Support rating of '2' and Support Rating Floor of
'BBB-'.  BOB's ST ratings reflect its strong retail funding
profile.

BOB's profitability outperformed systemic averages (return on
average assets) in H1FY11 (end-September 2011: 1.27% vs Fitch's
systemic average estimate of 1.10%) on account its strong interest
margins and minimal credit costs.  BOB's net interest margin in
H1FY11 (2.96%) was aided by the new base rate system which allowed
it to re-price its corporate loan book.  Also, the bank benefited
from rising yield on its Held to Maturity Investment Book along
with low deposit costs arising out of the bank's strong global
deposit base.  The margins are however likely to come under
pressure over the near- to medium-term from rising deposit costs
and continuing competitive pricing pressures.  Moreover,
transition of government banks towards defined pension plan could
entail a significant cost impact, although the modalities of the
same are yet to be worked out and the cost may be amortized over
several years.

BOB's gross NPL ratio deteriorated marginally to 1.39% in H1FY11
(FY09: 1.27%) due to cyclical stresses in restructured accounts in
agriculture, small industry, textile, iron and steel and chemicals
sector.  BOB's asset quality could come under further pressure
over the near-term in line with banking system as hardening
interest rates pressurize corporate cash flows.  However, the
medium-term outlook for BOB's asset quality remains benign on
account of Fitch's expectation of robust economic growth and BOB's
proven track record of asset quality management.

BOB's tier 1 ratio (FY10 tier 1 ratio: 9.2%) can provide adequate
cushion against expected losses although it is marginally lower
than the systemic average (10.1%).  While the bank has limited
scope to dilute government holding which is close to minimum
statutory level of 51%, it may receive fresh capital from the
Government of India.  The bank can also compensate its
capitalization by raising more tier 2 capital.  BOB's robust
retail deposit base (over 63% of total liabilities and funding in
FY10) moderates refinancing risk on its funding profile.

Bank of Baroda New Zealand's LT IDR is at the same level as BOB's
LT IDR on account of BOB's 100% ownership, common name and
management control.

BOB's LT IDR is at Support Rating Floor of 'BBB-' which maps to
the National LT rating of 'AAA (ind)'.  Negative rating action on
BOB's LT IDR would be primarily due to any downgrade of the
sovereign LT IDR However, a sustained upward movement in BOB's LT
IDR would mainly depend on an upgrade of its Individual rating
which would be driven by continued strengthening of BOB's
financials.

BOB's lower tier 2 subordinated bonds have been rated at the same
level as its National LT rating based on Fitch's "Criteria for
Indian National Ratings of Bank Hybrids and Subordinated Debt",
dated 18 January 2010.  The upper tier 2 hybrid instruments
(classified as Class C security with 50% equity credit) are
notched thrice from the LT IDR based on Fitch's "Criteria for
Rating Hybrid Securities ", dated 29 December 2009.

BOB is the fourth-largest bank (by assets) in India and has over
3,202 branches across India and over 81 offices overseas.  It is
53.81% owned by Government of India.

BOB's rated instruments:

  -- US$350m senior debt affirmed at 'BBB-';

  -- US$300m upper tier 2 affirmed at 'BB-';

  -- INR25bn subordinates lower tier 2 debt affirmed at 'AAA
     (ind)'; and

  -- Short-term debt affirmed at 'F1+(ind)'.


C M SMITH: CARE Assigns 'CARE C' Rating to INR80.8cr LT Bank Loan
-----------------------------------------------------------------
CARE assigns 'CARE C' and 'PR4' ratings to the bank facilities of
C. M. Smith & Sons Ltd.

                                Amount
   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term Bank Facilities     80.80     'CARE C' Assigned
   Short-term Bank Facilities    10.00     'PR4' (Assigned

Rating Rationale

The ratings factor in CMSSL's unsatisfactory debt servicing track
record in the past caused due to stressed liquidity scenario on
account of high working capital requirements.  However, the
enhancement in working capital limits by a consortium of banks in
August and September 2010 is expected to improve the liquidity
situation of the company.  The ratings also factor in the weak
financial risk profile marked by high gearing and moderate scale
of operations. These weaknesses are, however, partially offset by
the vast experience of the promoters, established operations with
long track record, reputed clientele and strong order book
position.

The ability of CMSSL to increase the scale of operations with
improvement in financial risk profile would be a key rating
sensitivity.

                          About C. M. Smith

Gujarat-based CMSSL, established in 1943, is a closely-held public
limited company.  The business is currently managed by third
generation of the promoter family under the leadership of Mr.
Ashwin Smith who is the current Managing Director.

CMSSL manufactures around 125 products such as castings, clutch
housing, brake drums and brake discs which are used in passenger
cars, utility vehicles, light/ medium/heavy & multi-axle vehicles,
trailer parts and engineering industries.  During FY10, CMSSL
reported total operating income of INR102.90 crore and PAT of
INR2.57 crore as against total operating income of INR48.06 crore
and loss of INR4.25 crore in FY09.


CANARA BANK: Fitch Affirms Individual Rating at C/D'
----------------------------------------------------
Fitch Ratings has affirmed India's Canara Bank's Long-term foreign
currency Issuer Default Rating at 'BBB-' and National LT rating at
'AAA(ind)'.  The Outlook is Stable.  The agency has also affirmed
Canara's Short-term FC IDR at 'F3', Individual rating at 'C/D',
Support rating at '2' and Support Rating Floor at 'BBB-'.
Additional rating actions are included at the end of the release.

Canara's Individual rating reflects the bank's well-established
franchise as the sixth-largest bank in India by assets and its
sound credit metrics which compares well with its peer government
banks.  The bank's strong franchise lends it adequate funding
stability, while capitalization benefits from the undiluted
government shareholding of 73%.  This provides added flexibility
to raise capital, if required, especially considering the bank's
above-average growth plans and current headwinds related to
increased pension provisioning costs.  That said, its capital
quality is reasonably strong, additionally complemented by steady
growth in internal accruals.

The ratings of the tier 1 subordinated bonds and upper tier 2
bonds are consistent with the approach taken for other similar
securities subjected to annual profit/loss test, based on Fitch's
criteria.  The agency, however, believes that the bank's high
government ownership coupled with its size and franchise would
result in a high probability of regulatory support in the event of
crisis, reflected in its Support rating.

Canara's asset quality, though fairly well-controlled (gross NPL
ratio: FY10: 1.52%; FY09: 1.56%), could face some near-term
challenges on account of its restructured portfolio (3.2% of FYE10
loans, 6% slippages) which comprises small corporates and
customers.  That said, given the bank's conservative write-off
policy (doubtful loans beyond two-three years completely written
off), its loan loss coverage sharply increased to 77% (Q2FY11;
including technical write-offs) and a recovering economic scenario
should limit incremental credit costs in the short-term.  The
asset quality, however, would be more crucial over the medium- to
long-term as increasing focus on higher yielding asset classes
(viz.  SMEs, agriculture) could materially alter Canara's loan
profile.  While tighter risk monitoring mechanisms are being put
in place, their efficacy remains to be tested as the bank
gradually moves towards system-generated NPLs.

The bank has been making concerted efforts to shed high-cost bulk
deposits reflected in the slow-yet-steady improvement in its
current and savings account (CASA) ratio (FY10: 29%; H1FY11: 30%)
and reduced cost of funding.  That said, CASA continues to be
lower than many large government banks, and this (relatively)
higher reliance on interest sensitive term deposits pushes up
funding costs in an upward trending interest rate scenario (as is
seen currently), even though recourse to such funds is expected to
remain strong for the bank.

Canara's profitability (return on assets: FY10: 1.25%; H1FY11:
1.47%), which until now, has been underpinned by steady growth in
NIM (FY10: 2.5%; H1FY11: 3%) and strict cost control, is expected
to witness some near-term pressures.  Sharp dip in treasury income
(due to hardening interest rates) coupled with rising cost
pressures from increased 'pension deficit' provisioning on account
of the defined-benefit pension plan implemented system-wide would
yield volatility to earnings in the short-term.  The trade-off
between NIM and credit costs would continue to be the long-term
determinant of profitability as the bank gradually shifts to a
higher yielding asset mix while managing funding costs on one hand
and asset risk on the other.

Sustained improvement in the bank's asset quality, funding and
earnings profile, together with an upgrade to the sovereign LT FC
IDR, could lead to an upgrade in Canara's LT FC IDR.  However, any
sharp deterioration to the above mentioned parameters would put
pressure on the National LT rating, which would more granularly
distinguish Canara's performance with those of its peers.

Canara has a pan-India franchise with 3,066 branches and 2,017
ATMs as at Q2FYE11.  The bank's international operations are
fairly insignificant although it operates other businesses (viz.
asset management, insurance) through joint-ventures and
subsidiaries.

Canara Bank:

  -- US$1bn MTN programme affirmed at 'BBB-';
  -- US$1bn Upper Tier 2 bonds affirmed at 'BB-'; and
  -- US$250mn Hybrid Tier 1 subordinated bonds affirmed at 'BB-'.


COOL DECK: ICRA Assigns 'LBB+' Rating to INR9.4cr Bank Facilities
-----------------------------------------------------------------
ICRA has assigned a long-term rating of 'LBB+' for the INR9.401
Crore Fund-Based Bank Facility and INR 1.00 Crore bank guarantees
of Cool Deck Aqua Solutions Private Limited.  ICRA has also
assigned a short term rating of 'A4+' rating to the short term
Non-fund based INR5.00 Crore facilities of CDASPL.  The long term
rating has been provided a stable outlook.

The assigned ratings take into account the promoters' established
experience in related business, established brand across India and
reputed client base over the years. The ratings are however
constrained by small size of operations of the company, exposure
to intense competition due to presence of large unorganized sector
and susceptibility to raw material price fluctuations mainly PVC
resin. ICRA notes that by very nature of the product the main
consuming market remain the Cooling tower manufacturers (OEMs),
thereby the company faces client concentration risk, with sales to
top five clients contributing to 55% of the sales as of FY 2009-
10. The capital structure of the company also remains adverse with
gearing of 1.92X as of FY 2009-10, which improved partially as of
H1 FY2010-11 due to infusion of equity.  The liquidity position
also remain stretched as reflected in high working capital
intensity due to long receivables period and almost full fund
based utilization levels.

                          About Cool Deck

Cool Deck Aqua Solutions Private Limited is an ISO 9001:2000
certified company.  The company's core business involves
manufacturing of plastic components for cooling towers and
water/wastewater treatment plants. The company was incorporated in
2005.CDASPL  -  through its headquarters in Mumbai, India and
20,000 square feet of manufacturing space  in the union territory
of Daman, India has been working with OEMs as well as end
customers in varied fields of manufacturing.  CDASPL reported a
net profit of INR0.86 Crore on an operating income of INR25.20
Crore for FY 2009-10.


COSMOS COTTON: CARE Assigns 'CARE BB' Rating to INR54cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE BB' and 'PR4' ratings to the bank facilities of
Cosmos Cotton India Limited.

                                Amount
   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term Bank Facilities    54.00     'CARE BB' Assigned
   Short-term Bank Facilities    0.50     'PR4' Assigned

Rating Rationale

The ratings take into account past instance of delay in servicing
of term loan instalment, high leverage position and low
profitability, limited track record and  small size of company,
lack of management depth, seasonal nature of the business, high
customer concentration of sales, fluctuating raw material prices,
working capital intensiveness and fragmented nature of the
industry entailing aggressive competition from other players. The
ratings are however underpinned by experience of the promoters in
trading of cotton, Promoter's relationship with major customers,
farmers and commission agents due to prior trading experience and
stable industry prospects. Efficient procurement of raw materials
thereby improving sales and profitability margins, managing the
volatility in raw material price and manage working capital
requirements during peak cotton procurement season are the key
rating sensitivities.

                        About Cosmos Cotton

Cosmos Cotton India Limited was incorporated as a private limited
company in March 2008 and was subsequently converted to a public
limited company on 5th May 2008. CCIL is engaged in the processing
(Ginning) of Kapas (Raw Cotton) and pressing the same into cotton
bales as well as trading of both cotton lint and cotton Kapas. The
promoters have experience in trading of tobacco and cotton for
more than twenty years.

On a total income of INR0.76 crore, the company booked net loss of
INR(0.26) crore during FY09. The company achieved a total income
of INR88.23 crore with a PAT of INR0.25 crore during FY10 (prov).


DHANLAXMI BANK: Fitch Affirms Individual Ratings at D/E'
--------------------------------------------------------
Fitch Ratings has affirmed India's Dhanlaxmi Bank's National Long-
term rating at 'BBB(ind)' with a Positive Outlook.  The agency has
also affirmed DLB's INR170m lower tier 2 debt programme at
'BBB(ind)'.  The Individual and Support ratings have been affirmed
at 'D/E' and '5', respectively.

The Positive Outlook reflects DLB's improved capitalization on
account of equity infusion in H1FY11, limited but visible track
record of managing asset quality along with significant
investments in technology and infrastructure.  Nevertheless, DLB's
Individual and Long-term ratings reflect concerns on asset quality
in view of its highly aggressive growth plans, weak profitability
as well as small and regional (though expanding) franchise.  While
the bank's non-performing loans remain moderate, challenges
persist given its aggressive growth plans, target business segment
(largely retail though less risky mortgage loans) and expansion in
relatively unfamiliar western and northern regions of the country.

Successful execution of present growth strategy while maintaining
strong asset quality, improvement in profitability, sustained
strong capitalization could lead to one notch upgrade of DLB's
National Long-term rating.

While the bank has grown its advances portfolio at a rapid pace
since FY08 (H1FY11: INR70bn, FY08: INR21.4bn), the delinquencies
have been limited.  Though the bank has tightened its risk
management practices, moderate NPLs can also be partly attributed
to the growth in advances primarily originating from relatively
less risky mid-corporates.  Nevertheless, the bank's sharp growth
target in retail and SME segment as well as its plan to expand in
less familiar region of western and southern India raise asset
quality concern.

DBL's profitability has been lower on account of narrower net
interest margin, partly due to lower yields from corporate lending
and higher proportion of funding from higher cost bulk deposits),
and higher operating cost (due to large investment in
infrastructure).  While the bank's increased focused on secured
consumer advances should increase NIMs, this expansion also raises
possibility of higher credit costs.  Moreover, the aggressive
expansion of the bank could lead to increased cost of funds from
higher reliance on higher cost bulk deposits (especially in a
rising interest rate environment), partly offsetting the effect of
higher yields on NIM.

DLB's capitalization strengthened post equity infusion in H1FY11
(tier 1: 11.7%).  Nevertheless, the highly aggressive growth in
advances book would continue to sustain demand for additional
capital.

Any significant deterioration in DLB's asset quality could lead to
a change in Outlook to Stable or even trigger a downgrade of its
National Long-term rating.

DLB's lower tier 2 subordinated bonds have been rated at the same
level as its National Long-term rating based on Fitch's "Criteria
for Indian National Ratings of Bank Hybrids and Subordinated
Debt", dated January 18, 2010.

DLB is a Kerala-based small private sector bank.  It is among the
fastest growing private sector bank in India.


GAYATHRI RICE: CARE Rates INR8.5cr LT Bank Loan at 'CARE BB'
------------------------------------------------------------
CARE assigns 'CARE BB' to the bank facilities of Gayathri Rice
Mill.

   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term Bank Facilities    8.50       CARE BB 'Assigned'

Rating Rationale

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of GRM as on March 31,
2010. The rating may undergo a change in case f withdrawal of
capital or of the unsecured loans brought in by the partners in
addition to he financial performance and other relevant factors.
The rating is constrained by the moderate size of the firm,
moderate capacity utilization, thin profitability margins and high
leverage position.  The low barriers to entry and high level of
competition in the sector elevate the business risk profile
further.  The rating however, factors in the experience of the
partners in the industry, stable revenue growth in
he last three years, increasing demand for rice and availability
of raw material (paddy) in the region.  The ability of GRM to
improve its profitability in the midst of competition and improve
the operating rate are the key rating sensitivities.

                        About Gayathri Rice

GRM is a partnership firm started in 2001 by Mr. K V Subba Reddy
along with five other partners.  The firm is engaged in milling
and processing rice and also participates in rading of the same
from time to time.  The mill is situated in the Tosspudi village
in the Godavari District, Andhra Pradesh., where more than 600
rice mills are operating. GRM has rice milling capacity of 1,440
quintals per day (annual capacity of 4,32,000 uintals) and a
storage capacity of 1,17,000 quintals.  The firm is mainly
supplying levy rice o Food Corporation of India, apart from which,
it supplies non-levy rice to the Kerala state.  Rice being the
major contributor to the revenue accounted for 89% of sales in
FY10, with the balance being derived from sale of by-products like
bran and husk.

On a total income of INR46.9 cr, GRM earned a PAT of INR0.1 cr in
FY10 (Audited).


HIND BUILDTEC: CARE Rates INR28.55cr LT Loan at 'CARE BB-'
----------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Hind
Buildtec Pvt Ltd.

                                Amount
   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term Bank Facilities     28.55     'CARE BB-' Assigned

The rating is constrained by HBPL's weak financial risk profile
characterised by high overall gearing, low profitability margins
and small scale of operations resulting in limited ability to bid
for larger and more complex projects.  However, the ratings are
supported by strong revenue and profit growth achieved over past
one year and experience of promoters in road construction
business.

Going forward, HBPL's ability to get new contracts and timely
execution of the same, maintaining profit margins, reduction in
overall gearing and efficient management of its operating cycle
would be the key rating sensitivities.

                      About Hind Buildtec

Hind Buildtec Private Limited was incorporated as a private
limited company w.e.f April 01, 2008 with two Directors viz. Mr
Shakeel Haider & Mr Syed Mehdi Hasan and had been operating as a
proprietorship concern since 2004.  HBPL is a regional player
executing road construction and maintenance projects in Uttar
Pradesh being awarded by Uttar Pradesh Public Works Department
(UPPWD).

During FY10, HBPL achieved total operating income of INR79.7 cr
(y-o-y growth of 70%) and earned PAT of INR1.2 cr.


KRISHNAVENI SUGARS: ICRA Places 'LBB+' Rating on INR271.71cr Loan
-----------------------------------------------------------------
ICRA has assigned "LBB+" rating to the INR271.71 crores of fund
based bank facilities of Krishnaveni Sugars Limited.  ICRA has
also assigned rating of A4+ to INR107.6 crores non-fund based bank
facilities of KSL.  ICRA has assigned a negative outlook to long
term rating.

The rating factors in project execution risks that are typical of
green-field projects, including risks of time/cost overruns. The
rating is also constrained by risks arising out of sufficient raw
material availability (sugarcane) for satisfactory capacity
utilization of the plant during initial years of operations.
The company's ongoing sugar project is located in Mehboobnagar
District of Andhra Pradesh (AP), which is has favorable conditions
for cane growing and benefits from the various irrigation projects
established by the state government; however the farmers in the
area have a limited experience in cane farming, as there are no
sugar mills currently in the entire district.

While ICRA has noticed that the company has initiated the cane
development activity in its command area almost 3 years back,
however the risks related to sufficient cane availability will
continue to remain especially in the initial years.  The rating is
however supported by the sufficient experience of the promoter
company NSL Sugars Limited (rated LBBB+/A2), which has reported
healthy operational performance of its sugar plant, located in
Mandya District of South Karnataka.  The rating is also supported
by the fully integrated profile of sugar project and the
significant physical progress achieved by the project.  While
the company has also tied up the entire term loan funding for the
project and the promoters have also brought in entire equity
contribution for the project as well as significant portion of
funds in lieu of Sugar Development Fund (SDF) loan.  However, a
delay in project commissioning has consumed the entire moratorium
period without much cash generation and thus KSL would continue to
depend upon NSL sugars for interim liquidity.

Being a fully integrated project, ICRA expects the company's
profitability to derive significant cushion from the benefits
arising out of the contribution from the sales of power and
alcohol. The rating also derives a comfort from the cane pricing
mechanism prevailing in the state, whereby the other sugar mills
in the state have managed to pay cane prices announced by
Government of India (GoI); which generally tends to be lower than
the State Advised Price (SAP) announced by various state
governments. Going forward, the company's ability to commission
the cogeneration and sugar unit at the earliest and complete the
distillery unit without any major time and cost overrun and its
ability to source sufficient cane for optimum utilization of its
capacities will remain the key rating sensitivities.

KSL is setting up a 3500 Tons Crushed per Day (TCD) sugar plant
(expandable to 5000 TCD); along with a 28 Mega Watt (MW) power
cogeneration plant with multi fuel boiler, which apart from using
in-house bagasse can also use alternate fuel like coal and
biomass.  The company is also setting up a 60 Kilo Litres Per Day
(KLPD) distillery to process the molasses produced in house to
produce alcohol.  The project has been witnessing some delays and
is re-scheduled for completion in phases; while the power plant
will be first to be commissioned by end of 3rd quarter of FY 2010-
11 and the overall plant commissioning by the third quarter of FY
2011-12; distillery being commissioned in the last.  As a result,
SY 2010-11 will be the first crushing season for the plant and FY
2011-12 will be first full operational year for the plant.  The
project is located at Mehboobnagar District in the state of AP,
which is assessed as favorable cane growing belt and is also
expected to benefit from the various irrigation projects being
implemented by the GoAP.  The estimated irrigated area which falls
under the command area of KSL is almost 0.15 million hectares
(Ha), of which around 16,800 ha is targeted for sugar cane
growing. Further the cane yields (defined as Ton of cane per
hectare) in the area is expected to be as high as upto 90~100
ton/Ha. Since the company will annually require around 0.6~0.7
million ton of cane for the optimum utilization of its capacities;
it will require an estimated area of 8000~10000 ha under cane
cultivation.  Mahabubnagar is a favorable cane growing belt and is
adjacent to Bellary District in Karnataka, and hence the recovery
rates in the region are expected to remain good.  While the
company has initiated the cane development activities in its
command area since September 2006, however it must be noted that
since there is no other sugar mill in the vicinity of the
company's command area, the farmers have limited experience in
sugarcane farming, which can be an area of concern.  As a result,
the company's ability to successfully bring in sufficient area
under the cane before the commissioning of sugar plant will remain
crucial for ensuring the raw material availability not only for
producing sugar, but also meeting the input requirements of power
plant and distillery.  The raw material risks are however
partially mitigated from the fact that the company is setting up a
28 MW power cogeneration plant, which is significantly higher than
its cane crushing capacity and also has capability to use
alternate fuels such as coal and biomass to generate electricity.
Further the company has tied up a PPA, which is valid for a period
of 5 years with Tata Power Trading Company Limited, which will
sell power on merchant basis, thereby providing an additional
upside from the sale of power.  In addition to power, the
contribution from distillery operations will also provide cushion
to company's vulnerability against the cyclicality in sugar
business to some extent.  Further AP largely follows cane prices
announced by GoI as against State Advised Price (SAP) followed by
other states like UP. SMP generally being lower than SAP imparts
flexibility for a sugar mill to pay a SMP for the sugarcane
purchased from the farmers, which helps in protecting the profit
margins during the downturn in sugar cycle.

The project being implemented by KSL was earlier scheduled for
commissioning by third quarter of FY 2010-11, however due to
multiple factors (heavy rains, execution delays and political
instability in state) project execution has got impacted by nine
to 12 months. Notwithstanding these delays, project costs of INR
308 crores have remained intact. Funding plan has also remained
same, with INR 68.39 crores as equity, INR 59.58 crores as SDF and
INR 180.16 crores as term loans. KSL has also obtained INR 20
crores of bridge loan against SDF.  NSL Sugars Limited, which
holds around 74% of the equity in the company, has presence in
sugar business and has reported healthy operational profile and
profitability for its sugar plant located in Mandya District of
South Karnataka. NSLSL has already brought entire equity and
significant portion of advances in lieu of SDF loans (excluding
INR20 crores), which is a source of comfort. SDF funds are usually
distributed towards the commissioning of project and thus require
bridge loan funding during the construction period. Nonetheless, a
delay in project commissioning has consumed the entire moratorium
period without much cash generation and thus KSL would continue to
depend upon NSL sugars for interim liquidity.

Going forward, ICRA expects the ability of the company to meet
funds for debt repayments and funding of balance capex for
distillery in a timely way, will be a key rating driver.
Subsequently, ICRA expects the operational performance of KSL to
remain significantly dependent on its ability to ensure
sufficient cane availability for optimum utilization of its
capacities.  Further the profitability of the company will
continue to remain vulnerable to agroclimatic risks as well as
government/regulatory policies.

                          About KSL Sugars

KSL Sugars Limited (KSL) has been promoted by NSL Sugars Limited,
which holds 74% equity stake in the company. KSL Sugar is
currently in midst of setting up a greenfield sugar plant with a
cane crushing capacity of 3500 Tons Crushed per Day (TCD) sugar
plant along with 28 MW power cogeneration plant and 60 KLPD
distillery at Mahabubnagar District of Andhra Pradesh with a
capital cost of INR 308 crore billion.  The project is scheduled
for completion in phases by third quarter of FY 2011-12.


MADHU INDUSTRIES: CARE Puts 'CARE BB+' Rating on INR14.84cr Loan
----------------------------------------------------------------
CARE assigns 'CARE BB+' and 'PR4' ratings to bank facilities of
Madhu Industries Pvt. Ltd.

                                Amount
   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term Bank Facilities     14.84     'CARE BB+' Assigned
   Short-term Bank Facilities     0.50     'PR4' Assigned

Rating Rationale

The ratings are constrained mainly due to decline in total income
during FY10, low and fluctuating profitability, exposure to
foreign exchange fluctuation, small scale of operation, increasing
competition in export markets and cyclical nature of the textile
industry.  The ratings, however, factor in the experience of the
promoters in the business, moderately comfortable leverage ratios
and established agent network in Europe and USA.  Ability to
improve its profitability in light of increasing competition from
the other Asian textile processing countries & foreign exchange
fluctuation and continuation of export incentives to this sector
are the key rating sensitivities.

                       About Madhu Industries

Madhu Industries Pvt. Ltd. began operations in 1989 as a
proprietorship concern and became a public limited company in
1997. Again in May 2009, it was converted to a private limited
company. MIPL  is a  'one star' export house having presence  in
more  than 24 countries across the globe.  MIPL is engaged in
processing of home furnishing textiles mainly bed linen.  The
promoters of MIPL have been in the business of textile and textile
processing since 1963 through its other group company, CTM Textile
which is into the business of printing and dyeing.  Further, they
have other two group companies, Madhu Implex (established: 1990)
and Madhu International (established: 1995) which do trading of
grey fabrics.


NAV DURGA: CARE Assigns 'CARE BB+' Rating to INR104cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE BB+' & 'PR4' ratings to the bank facilities of
Nav Durga Fuel Pvt. Ltd.

                                Amount
   Facilities                  (INR cr)    Ratings
   ----------                  -------     -------
   Long-term bank facilities    104.0      'CARE BB+' Assigned

   Long-term/Short-term bank      8.7      'CARE BB+' & 'PR 4'
                  Facilities                Assigned

Rating Rationale

The above ratings are constrained by the company's short track
record in manufacturing of iron and steel products, relatively
small size of the company, risks associated with implementation of
relatively large expansion projects, capacity utilization being on
the lower side, volatility in respect of prices of raw materials &
finished goods, lack of backward integration for major raw
materials, high utilization of working capital facilities
and cyclical nature of the iron & steel industry.  The ratings
also factor in the experience of the promoters, moderate financial
position and significant amount of equity infusion by
the promoters during the last three years.  Successful
commissioning of the ongoing projects, future sales price
realization trends vis--vis price trend of key raw materials and
ability to combat the pressure of cyclicality and volatility in
raw material & finished goods prices would remain the key rating
sensitivities.

                           About Nav Durga

Nav Durga Fuel Private Ltd. commenced commercial operation in
September 2005 with a 30,000 metric tonnes per annum (MTPA) sponge
iron plant at Raigarh.  In February 2007, the company was taken
over by Gadodia family of Orissa, the present promoters, who have
over a decade of experience in trading and manufacturing of iron &
steel products.  Currently, it is engaged in the manufacturing of
sponge iron & billets and has a captive power plant.  The company
is currently setting up a 6 MW CPP at its existing plant location
at an aggregate project cost of INR49.0 crore (debt-equity ratio
of 1.88:1).  The project is expected to be commissioned by the end
of March 2011.

NDFL has also envisaged on setting up a rolling mill (capacity of
90,000 TPA) at its existing plant.  The estimated cost of INR35.4
crore is proposed to be financed at a debt-equity ratio of 2.1:1.
The project is at a nascent stage and financial closure is yet to
be achieved.

On total income of INR87.1 crore (FY09 - INR56.6 crore), NDFL
earned PBILDT of INR13.7 crore (FY09 - INR11.2 crore) and PAT
(after defd. tax) of INR3.6 crore (FY09 - INR3.4 crore) in
FY10.  Long term debt equity ratio & overall gearing ratios,
though deteriorated as on March 31, 2010 over the previous account
closing date, remained well below unity as on the last three
accounts closing dates.  The current promoters have infused equity
(INR70.0 crore) during the last three years to meet the required
funds for working capital and expansion projects.


SHREE RAYON: ICRA Places 'LBB' Rating on INR3.5cr Term Loan
-----------------------------------------------------------
ICRA has assigned an 'LBB' rating to INR3.50 crore term loan and
INR5.50 crore fund based facility of Shree Rayon Pvt Ltd.  The
outlook assigned to the long term rating is "Stable".

The rating reflects SRPL's weak financial profile characterized by
an adverse capital structure and consequently weak coverage
indicators. SRPL's scale of operations is modest and its
competitive position is further affected by its presence in a
fragmented sector with large number of players.  Further, the
margins also remain susceptible to volatility in yarn prices. The
rating however favorably takes into account the promoters'
experience in the manufacture of higher value blended fabric for
suitings from yarn, along with the company's established
relationships with diversified and reputed suppliers and
customers.

                         About Shree Rayon

Shree Rayon Pvt Ltd, incorporated in 1999 is engaged in the
business of manufacturing fabrics for suiting from yarn. SRPL has
a registered office in Mumbai and a manufacturing unit at
Tarapur, Maharashtra.

Recent Results:

SRPL recorded a net profit of INR0.53 crore on an operating income
of INR27.26 crore for the year ending March 31, 2010.


TRIOFAB (INDIA): ICRA Downgrades Rating on INR7cr Debt to 'LBB'
---------------------------------------------------------------
ICRA has revised downwards the long-term rating outstanding on the
INR7.00 crore fund-based bank facilities of Triofab (India)
Private Limited to 'LBB' from 'LBB+'.  The outlook on the long-
term rating is 'stable'. ICRA has also revised downwards the
short-term rating outstanding on the INR10.50 crore non-fund-based
bank facilities of TIPL to 'A4' from A4+.

The revisions in the ratings take into account the significant
reduction in the operating income of TIPL and the deterioration in
the company's capital structure and coverage indicators in
2009-10.  The lower income was caused by the delay of a large
European client to pick up vessels that were ready for dispatch.
The ratings also factor in the small size of operations with
prospects linked to the project activities of large clients;
exposure to variations in raw material prices due to long
manufacturing cycle and working capital intensive nature of the
business; and significant sales concentration risk, as the top
three customers contributed to more than 95% of total sales in
2009-10. Nevertheless, the ratings take into account the
established track record of the company in fabrication of
moderately complex structures; technically qualified management
with considerable experience in the related fields and healthy
return on capital employed of the company, although the same has
shown a declining pattern in recent years.

                        About Triofab (India)

Incorporated in 1991, Triofab (India) Pvt. Ltd. is primarily
involved in the design, fabrication and erection of high pressure
and stainless steel storage tanks/vessels and heat exchangers used
for storage of petrochemical and chemical products. At present,
TIPL operates out of its manufacturing plant located at Mahape,
Navi Mumbai and has a manufacturing capacity of 1500 metric tonnes
per annum (MTPA).

Recent Results

In 2009-10, TIPL reported a profit after tax (PAT) of INR0.62
crore on an operating income (OI) of INR14.45 crore as against a
PAT of INR0.65 crore on an OI of INR19.94 crore in 2008-09.


TRISTAR GLOBAL: ICRA Assigns 'LBB+' Rating to INR7cr Bank Debt
--------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB+' to the INR7 crore
fund based limits and INR 20 crore non fund based limits of
Tristar Global Infrastructure Pvt. Ltd.  In addition, ICRA has
also assigned an 'A4+' rating to the INR3 crore bill discounting
facilities of the company.  The long term rating has been assigned
a stable outlook.

The ratings takes into account the experienced management of the
company, proven track record of executing projects for a reputed
client base, a satisfactory order book comprising prestigious
projects, tie-ups with some of the  leading players in the world
in expansion joints, impressive revenue growth since inception,
and the limited capex required for executing the order backlog.

However, the ratings are constrained by the limited scale of
operations of the company, its exposure to a few large orders for
bulk of its revenues, high working capital intensity due to the
company's policy of procuring adequate inventory for timely
execution of the project and protecting it from fluctuations in
raw material prices, likely weakening of financial profile due to
the funding of increased working capital requirements  on account
of  the  substantial growth in revenues expected during FY11, and
limited visibility of earnings despite a large order book, as bulk
of the order backlog comprises short-duration contracts that would
be fully executed by FY12.

                        About Tristar Global

Tristar Global Infrastructure Pvt. Ltd., established in 1999, is a
fully family-owned construction company.  The company has been
involved in waterproofing, expansion joints, thermal insulation,
construction of buildings and roofing activities,  and has dealt
with a reputed client base including companies like Procter &
Gamble, GMR, HCC and L&T.  In the past, most of the company's
revenues have come from waterproofing activity and construction of
buildings, with TGIPL having executed prestigious projects such as
waterproofing of Bangalore Airport and underground railway
stations for Delhi Metro Rail Corporation.

Recent Results

TGIPL reported a profit after tax (PAT) of INR1.22 crore in FY10
on an operating income of INR45.69 crore, registering a
substantial improvement over FY09. The growth was supported by a
larger order book during FY10 and high execution of the same.


=================
I N D O N E S I A
=================


BANK CIMB: Fitch Affirms 'BB+' Issuer Default Rating
----------------------------------------------------
Fitch Ratings has affirmed PT Bank CIMB Niaga Tbk's Long-term
foreign currency Issuer Default Rating at 'BB+', National Long-
term rating at 'AAA(idn)', Individual Rating at 'C/D', Support
Rating at '3' and Subordinated debt Rating at 'BB'.  The Outlook
is Stable.  At the same time, Fitch has affirmed the bank's
IDR1.38trn 7-year subordinated bond 2010 issued in July 2010 at
'AA(idn)'.

"The bank's IDR and National Long-term rating reflect the strong
support from its Malaysia-based parent, CIMB Group Holdings
Berhad, including technical and financial resources," notes Iwan
Wisaksana, Director with the agency's Financial Institutions
group.  The Stable Outlook is underpinned by Fitch's expectation
that CIMB Niaga is likely to continue benefiting from such
support.  However, if there are signs of declining support, such
as meaningfully reduced ownership and/or weakening of its parent's
financial ability, this could be negative for CIMB Niaga's Long-
term foreign currency IDR, National Long-term Rating and Support
Rating.

The Individual Rating reflects the bank's reasonably diversified
franchise, established position in the domestic mortgage market,
and improving but still moderate financial fundamentals.
"However, the Individual Rating also recognizes the risk that fast
growth could pressure capital and asset quality, particularly if
there is a renewed economic slowdown," adds Mr. Wisaksana.
Deterioration in asset quality, such that the risk of capital
impairment increases significantly, could be negative for the
Individual Rating.

Fitch believes that the commitment from CIMB Niaga's parent, as
reflected through name sharing, has increased with the higher
shareholding, as well as its strategic importance to the parent's
pan-Asian expansion plans.  Aside from name sharing and ongoing
strategic alignment, the bank's contribution to the CIMB Group's
overseas operations was substantial at 36% of total revenues in
Q310; this is the highest among the CIMB Group's overseas
investments.

NPLs improved to 2.7% in Q310 (end-2009: 3.1%), mainly driven by
lower NPLs in the Retail sector of 1.5% in Q310 (Q309: 1.9%).
CIMB Niaga was able to maintain higher NIM than its rated peers in
the first nine months of 2010.  Nonetheless, CIMB Niaga's NIM
remained flat at 6.6% in Q3110 (2009: 6.6%), as increases in
lending rates were offset by higher funding costs.

The bank's capital adequacy ratio was above the regulatory minimum
at 12.5% in Q310 (2009: 13.6%).  Tier 1 CAR was also reasonably
healthy at 10.0% at Q310 (2009: 11.3%).  In Fitch's view, CIMB
Niaga's strong loan growth may be constrained by its CAR, and
additional capital may be necessary to maintain current strong
loan growth.  The bank adopted Basel II in 2010, as required by
Indonesia's central bank.

The bank's IDR1.38trn 7-year subordinated bond 2010, rated at
'AA(idn)', is rated two notches below its National Long-term
rating to reflect its subordinated status, as well as coupon
deferral features.  On the other hand, the bank's US$200m
subordinated bond is rated 'BB' and is one notch lower than its
Long-term foreign currency IDR.  As per Fitch's rating
methodology, the bank's subordinated debt is rated one notch below
the Long-term Ratings when there are no coupon deferral features,
and two notches below when there are coupon deferral features.

Established in 1955 and listed in 1989, CIMB Niaga is the fifth-
largest bank in Indonesia.  It was acquired by CIMB Group
(previously Bumiputra-Commerce Holdings) in 2002, with the stake
transferred to the wholly-owned subsidiary CIMBG in 2007.  As of
September 2010, CIMB Group owns 97.9% of the bank.


BANK INTERNASIONAL: Fitch Affirms 'BB+' Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed PT Bank Internasional Indonesia Tbk's
Long-term foreign currency Issuer Default Rating at 'BB+', Short-
term foreign currency IDR at 'B', Individual Rating at 'C/D',
Support Rating at '3' and National Long-term rating at 'AAA(idn)'.
The Outlook is Stable.

BII's Long-term foreign currency IDR and National Ratings reflect
strong commitment from, and strategic and operational alignment
with its higher rated parent bank, Malayan Banking Berhad (IDR 'A-
'/Stable).  Developments which indicate that perceived support
from its parent could decline, such as meaningful changes in
ownership and/or a weakening in its parent's financial ability,
could be negative for its Long-term foreign currency IDR, National
Long-term Rating and Support Rating.

The Individual rating also recognizes the potential for fast
growth which may increase pressure on the bank's capital and still
moderate asset quality.  However, the bank's improving
profitability and generally favorable economic conditions help to
mitigate some of these risks.  BII's Individual rating would be
negatively affected should asset quality weaken further in
conjunction with a lower Tier 1 capital buffer, particularly if
economic conditions also deteriorate.

BII's profitability has improved due to better net interest income
from fast loan growth.  Loans (including syariah loans) grew 28%
in Q310 from end-2009, supported by improving economic conditions.
Loans (excluding subsidiaries) to consumers accounted for the
largest proportion of total loans at 37%, followed by
commercial/small-medium enterprises at 37%, corporates at 25%, and
others at 1%.

The bank's non-performing loans ratio increased to 3.52% at end-
Q310 from 2.39% at end-2009, amid the higher growth in its loans
businesses.  NPLs mainly consisted of loans classified as doubtful
and having losses, especially from corporate and commercial
customers which accounted for 25.4% and 27.7% respectively of
total NPLs.

BII's Tier 1 capital adequacy ratio fell to 12.35% in Q310 from
14.08% in 2009, while total CAR declined to 13.16% from 14.71%
over the same period.  The decline in CARs was due to BII's
redemption of its US$ subordinated debt in April 2010, higher loan
growth, and the introduction of Basel II operational risk charges.
Fitch is of the view that maintaining Tier 1 CAR at these levels
is important for BII's credit profile, given its fast growth and
still moderate asset quality.

Established in 1959, BII is the eighth largest bank in Indonesia
with 2.51% of system assets.


=========
J A P A N
=========


CORSAIR LIMITED: Fitch Downgrades Ratings on Three Classes
----------------------------------------------------------
Fitch Ratings has downgraded Corsair (Jersey) Limited's Series
324, 334 and 336 credit-linked notes to 'Dsf' from 'Csf'/'RR6',
and simultaneously withdrawn these ratings.  The full list of
rating actions is:

  -- JPY1,452m* Series 324 downgraded to 'Dsf' from 'Csf'/Recovery
     Rating of 'RR6' and withdrawn;

  -- US$0* Series 334 downgraded to 'Dsf' from 'Csf'/Recovery
     Rating of 'RR6' and withdrawn; and

  -- JPY0* Series 336 downgraded to 'Dsf' from 'Csf'/Recovery
     Rating of 'RR6' and withdrawn.

  * as of November 26, 2010

These transactions are static synthetic corporate CDOs.  The notes
have either been partially or fully written down as a result of
the cumulative losses from several credit events in each reference
portfolio.  These rating actions follow the receipt of the
valuation notices on these credit events.  The ratings referred to
in this commentary have been withdrawn as a result of tranche
defaults.

The agency will no longer provide analytical coverage for these
transactions.


JAPAN AIRLINES: Tokyo District Court Approves Rehabilitation Plan
-----------------------------------------------------------------
Kyodo News reports that Japan Airlines Corp. on Tuesday received
the go-ahead from the Tokyo District Court for its rehabilitation
plan.  The turnaround plan includes debt waivers, job cuts and the
closure of unprofitable domestic and international routes.

According to Kyodo News, the decision came after most major banks
and other creditors of the airline approved the rehabilitation
plan through postal voting.  Kyodo News relates JAL said it has
also reached a basic agreement with its major creditor banks
regarding new loans.

Kyodo News says JAL plans to complete by next March the
rehabilitation procedures by repaying all debts, while seeking to
relist itself after the carrier was delisted from stock exchanges
earlier this year.

The report notes the plan centers on a JPY521.5 billion debt
waiver primarily from Mizuho Corporate Bank, the Bank of Tokyo-
Mitsubishi UFJ and Sumitomo Mitsui Banking Corp, and a JPY350
billion investment in JAL by the Enterprise Turnaround Initiative
Corp. of Japan with the use of public funds.  JAL will reduce its
head count to 32,600 by the end of March, cutting roughly 16,000
jobs, or about 30% of its group workforce of 48,714 at the end of
fiscal 2009, and will terminate services on 39 domestic and 10
international money-losing routes by the end of fiscal 2012 from
fiscal 2009 ended March this year.

With the court approval, the three debtor companies, Japan
Airlines Corp., Japan Airlines International, Co. and JAL Capital
Co., merged Wednesday, with JAL International as the surviving
entity, The Japan Times reports.

The Japan Times relates Hideo Seto, an ETIC trustee, said JAL
plans to reorganize into a division-based profit system Dec. 15.
That same day, a new management team will step in, adding 12 new
faces, including from ETIC and Kyocera Corp., the Japan Times
says.

JAL International will be officially renamed Japan Airlines Co. on
April 1.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in
New York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company
estimated debts at $28 billion.


* S&P Raises Bank Fundamental Ratings on Two Japanese Banks
-----------------------------------------------------------
Standard & Poor's Ratings Services raised by one notch to 'B' from
'C+' its bank fundamental strength ratings on Shinkin Central Bank
and Norinchukin Bank.  The upgrades are based on S&P's view that
both banks now face a diminished risk of additional losses as they
have made progress in recognizing impairment losses on marketable
assets and restructured their portfolios to hold low-risk assets.
In addition, the banks' capitalization has improved, thanks to
stabilized market conditions and their efforts to raise capital.
At the same time, Standard & Poor's affirmed its 'A+' long-term
and 'A-1' short-term counterparty credit ratings on SCB and
Norinchukin.  The affirmations were a result of S&P's raising of
both banks' stand-alone assessments, which exclude the government
support factor in case of a crisis.  At the same time, S&P reduced
the notch-up to two from three, based on the government support
factor.  The notch-up incorporates the banks' importance as the
central banks of member cooperatives within Japan's financial
system and the level of BFSRs on the banks.

Although SCB posted net losses of over JPY180 billion due to
impairment losses on securities in fiscal 2008 (ended March 31,
2009), the bank returned to the black in fiscal 2009 (ended
March 31, 2010), and secured an ordinary profit of JPY34.1 billion
and a net profit of JPY25.7 billion in the first half of fiscal
2010 (April 1, to Sept. 30, 2010).  Credit costs are generally
controlled at a limited level, although borrower concentration is
slightly high, compared to that of Japan's major banking groups.
In addition, SCB's risk-adjusted capital ratio is at a favorable
level and its capital quality is good, as its capitalization
recovers.  This is mainly due to stability in the capital market
and capital raised by the bank.  SCB's ratio of domestic and
overseas securities to total assets is high at about 60%, as the
bank manages the excess funds of its member shinkin banks.  This
makes the bank susceptible to market fluctuations.  However, the
bank has made progress in reducing volatile asset holdings and
posting impairment losses.  Furthermore, the conditions in the
capital market have stabilized.  Based on this, Standard & Poor's
believes that the risk of additional losses from marketable assets
is likely to remain within a manageable range, in light of SCB's
earnings and capitalization.  Earnings prospects in the shinkin
bank industry are severe, due to the sluggish local economy and
intense competition.  In addition, as part of the government's
economic stimulus package, the definition of restructured loans (a
type of nonperforming loans) extended to small and midsize
enterprises has been partially eased.  This may have a negative
impact on asset quality within the shinkin bank industry in the
medium term.  Nevertheless, in S&P's opinion, SCB is unlikely to
bear an excessive financial burden in the course of supporting the
credit quality of--and maintaining order within--the shinkin
industry, given generally stable financial conditions.

Although Norinchukin posted substantial ordinary and net losses in
fiscal 2008, the bank has generated profits since the first half
of fiscal 2009 (April 1, to Sept. 30, 2009).  In the same period
in fiscal 2010 (April 1, to Sept. 30, 2010), the bank posted a
JPY104.1 billion ordinary profit and a JPY82.9 billion net profit.
Appraisal losses on securities, reflected in Norinchukin's
capital, decreased to JPY205 billion as of Sept. 30, 2010, from
JPY869.6 billion in the same period a year earlier.  Norinchukin's
capital ratio is at a favorable level and its capital quality is
good, backed by improving capitalization.  While marketable
securities account for 65% of the bank's total assets, Standard &
Poor's is of the opinion that the risk of accruing additional
losses has been reduced to a great extent, because Norinchukin has
made progress in recognizing impairment losses on invested assets
and restructuring its portfolio toward low-risk assets.  This is
in line with its policy, which emphasizes reviewing financial
management and returning stable profits to its members.
Stabilized conditions in the capital market have also helped to
reduce the risk of additional losses for Norinchukin.  The bank's
profitability, excluding credit costs, has been declining, owing
to the asset reshuffle and global interest rate declines.  Despite
this, Standard & Poor's believes that the bank's earnings
stability is likely to increase, given that the additional losses,
including those on securities, are likely to remain within a
manageable range.  S&P believes that the financial positions of
member cooperatives, such as Japan Agriculture Association (JA),
are generally stable, although revenue opportunities are limited.

The outlooks on the long-term counterparty credit ratings on SCB
and Norinchukin are stable, based on S&P's view that the banks are
likely to maintain their current financial positions, given their
management policies, asset quality, as well as stabilized capital
market conditions.  Standard & Poor's may consider raising the
ratings if S&P confirm that it is highly likely for the banks to
enhance their profitability and continue to improve their
capitalization.  Conversely, the ratings may come under downward
pressure if market fluctuations and economic deterioration make it
highly likely for additional losses to accrue and exceed S&P's
assumptions.  S&P may also consider a downgrade if S&P see
increased likelihood for SCB and Norinchukin, which are the
central banks of member cooperatives, to bear excessive financial
burdens, as a result of deterioration in the member cooperatives'
operating and financial bases.


===============
M A L A Y S I A
===============


NAM FATT: Names Ferrier Hodgson as Unit's Provisional Liquidator
----------------------------------------------------------------
Nam Fatt Corporation Berhad disclosed that the Company on Nov. 29,
2010, nominated Michael Joseph Monteiro and Heng Ji Keng of
Ferrier Hodgson MH as Provisional Liquidators in respect of the
Creditors' Winding Up of P & N Construction Sdn. Bhd.

P & N is a wholly-owned subsidiary of the Company, incorporated on
October 12, 1984, and has an authorized share capital of
MYR5,000,000 with issued and paid-up capital of MYR2,100,350.

P & N said on November 29, 2010, that it cannot by reason of its
liabilities continue its business.  The loss for the year for the
financial year ended December 31, 2009, is MYR115,329,312.

The Company does not foresee any financial and operational impact
resulting from the winding up of P & N.

                          About Nam Fatt

Nam Fatt Corporation Berhad is a Malaysia-based company.  The
principal activities of the Company consist of investment holding
and construction of bridges, heavy concrete foundations, roads,
factory complexes and other similar construction activities. The
Company operates in four business segments: engineering and
construction, property, leisure, and manufacturing. The Company's
subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is
engaged in the construction of bridges, heavy concrete
foundations, roads, factory complexes and similar construction
activities; Agenda Istimewa Sdn Bhd, which is engaged in property
development; P & N Construction Sdn. Bhd. which is engaged in the
business of general contractors; Nam Fatt Marketing Sdn. Bhd.,
which is a sales distributor and marketing agent, and Maddusalat
Berhad, which is the owner and developer of golf resort and its
recreational amenities, property developer, and property manager.

                          *     *     *

Nam Fatt Corporation Berhad has been classified as an Affected
Listed Issuer under Practice Note 17 of the Listing Requirements
of Bursa Malaysia Securities Berhad.

The Company has triggered Paragraph 2.1(f) of the Practice Note 17
of the Main Market Listing Requirement of Bursa Malaysia following
failure to meet its principal and interest payment of
MYR13,225,037.39 due and payable on March 15, 2010, in respect of
the Asset Sale Agreement dated December 4, 2007, between Bank
Kerjasama Rakyat Malaysia Berhad and Nam Fatt.


SATANG HOLDINGS: PwC Appointed as Investigative Auditor
-------------------------------------------------------
PricewaterhouseCoopers Advisory Services Sdn Bhd has been
appointed as the investigative auditor in place of Messrs. Ernst &
Young to undertake the investigation in relation to the
allegations of irregularities at Satang Holdings Berhad and Satang
Jaya Sdn Bhd.

The investigation is expected to be commenced on December 6, 2010.

                        About Satang Holdings

Satang Holdings Berhad, formerly Satang Jaya Holdings Berhad, is
engaged in the maintenance, repair and overhaul of aviation and
safety equipment and operations and principally in Malaysia.
Through its subsidiaries, the company is also engaged in the
supply and distribution of environmental products, providing
training and seminar in respect of environmental management
system and other related services; providing consultancy and
solution services and implementing of high-technology and
surveillance security systems and its related services;
supplying and servicing of pipe cleaning products and equipment,
and supplying and maintenance of marine safety and survival
equipment and accessories.  Its subsidiaries include Satang
Environmental Sdn. Bhd., Satang Cylinder Services Sdn. Bhd., SAR
Services (M) Sdn. Bhd., Satang Hi-Tech Security Sdn. Bhd.,
Satsang-ICS global Sdn Bhd. and Port Marine Safety Services Sdn.
Bhd.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
May 13, 2008, the company triggered Paragraph 2.1 of the Amended
Practice Note 17/2005 as its independent auditor, Anuarul Azizan
Chew & Co., has concluded in its Audit Investigative Reports
that out of the MYR39.27 million alleged overstated revenue of
the company, MYR35.43 million represents invalid sales which
should not be recorded in the books for the financial year ended
September 30, 2007.


VASTALUX ENERGY: Classified as Affected Listed Issuer Under PN17
----------------------------------------------------------------
Vastalux Energy Berhad has been considered a PN17 Company pursuant
to Paragraph 2.1(e) of PN17.

The PN17 criteria was triggered as a result of an expressed
modified opinion with emphasis on the company's going concern on
the latest audited consolidated financial statements for the
financial year ended December 31, 2009, and shareholders' equity
of the company on a consolidated basis as at September 30, 2010,
is less than 50% of the issued and paid-up share capital of VEB as
at September 30, 2010.

The company also said that the meeting of the unsecured creditors
comprising trade and non-trade creditors on November 1, 2010, was
adjourned for 30 days to allow Vastalux Sdn Bhd, a wholly-owned
subsidiary of VEB, to work on a modification to the proposed debt
restructuring scheme for the Unsecured Scheme Creditors Class 2.
The board on November 26, 2010, announced the proposed
modification to the proposed debt restructuring scheme and that
the adjourned meeting will be held on December 3, 2010.

Vastalux Energy Berhad (KUL:VASTALX) is a Malaysia-based
investment holding company.  The Company, through Vastalux Sdn.
Bhd., is engaged in the provision of offshore and onshore hook-up
and commissioning, offshore topside and onshore facilities
maintenance services, offshore and onshore minor fabrication works
and charter of marine vessel.  Its indirect subsidiaries are
Vastalux Fabricators Sdn. Bhd., which is engaged in workshop and
fabrications job; Vastalux Onshore Services Sdn. Bhd., which is
engaged in onshore construction of oil and gas plant; Vastalux
Capital Sdn. Bhd.; Vastalux E&C Sdn. Bhd., which is engaged in the
provision of top side major maintenance works; Vastalux Offshore
Services Sdn. Bhd., which is engaged in hook-up and commissioning
works; Vastalux Marine Sdn. Bhd.; Merak Utama Sdn. Bhd, which is
engaged in under water inspection for structural integrity; PT
Vastalux Energy; V-Factor Sdn. Bhd., and Vastalux-Anpha Company
Limited.


===============
M O N G O L I A
===============


KHAN BANK: Fitch Affirms Issuer Default Ratings at 'B'
------------------------------------------------------
Fitch Ratings has affirmed Khan Bank LLC's Long-term foreign and
local currency Issuer Default Ratings at 'B', Individual Rating at
'D/E' and Short-term foreign currency IDR at 'B'.  Simultaneously,
the Outlook on the Long-term IDRs has been revised to Positive
from Negative.  Also, Fitch has upgraded the bank's Support Rating
to '4' from '5', and Support Rating Floor to 'B' from 'B-'.

The agency has affirmed Khan Bank's IDRs as it believes that,
based on its own scenario analysis, the bank's capitalization will
remain resilient against reasonable stress, and more than
previously expected in 2009 when the local economy had been under
considerable stress.  However, given the volatility of external
factors, such as the macro-economy, commodity prices, and weather,
Fitch considers Khan Bank's capitalization to be inadequate in
absorbing potential losses arising from a sudden and substantial
deterioration in loan quality, were it to happen, which constrains
the bank's ratings.

That said, Khan Bank's profitability is recovering largely due to
lower impairment charges from the bank's stabilizing loan quality
following a macroeconomic recovery, which allows the bank to
increasingly withstand potential losses.  Fitch has thus revised
the Outlook to Positive.  Khan Bank's Long-term IDRs may be
upgraded if it continues to improve its profitability and
capitalization via an accumulation of retained earnings.  A
failure to do so in the near-to-medium term, or if the bank
becomes more susceptible to external factors could lead to the
Outlook being revised to Stable.  Fitch does not currently
anticipate a rating action on the Individual Rating over the near-
to-medium term, but would look to further material changes in its
business profile and resilience to consider such a move.

The ratings also take into account Khan Bank's strong liquidity
and solid funding base supported by its leading franchise as
Mongolia's largest bank.  Khan Bank has the largest market share
for deposits (end-Q210: 32%), and its abundant deposits are
sufficient for covering its loans.  Its loan to deposit ratio at
end-9M10 is considered good at 73%, while liquid assets covered
over 50% of deposits.

Khan Bank's Support Rating and Support Rating Floor have been
upgraded following an upgrade of the Mongolian sovereign Long-term
IDRs to 'B+' from 'B' on 23 November 2010.  While higher sovereign
ratings imply an increase in financial capabilities of the
government to provide support to banks, Fitch notes that the
Mongolian government would be limited in its ability to provide
full support to the system in case of systemic stress.  However,
as the largest bank in the system, Fitch expects Khan would be the
most likely local bank to receive state support, if required.  An
upgrade of the bank's Support Rating and Support Rating Floor is
in line with the agency's methodology.

In 2010, Khan Bank's loan quality started to stabilize; impaired
loans as per Bank of Mongolia's scheme remained high at 4.8% of
total loans at end-9M10 (end-9M09: 6.6%), while its reserve
coverage remained modest at 3.5% of total loans (most of which are
fully collateralized) at end-9M10.  Its ROA at end-9M10 was a
respectable 2.18% versus 1.31% at end-9M09.

The bank's profitability helped the bank maintain its regulatory
capital ratio at 16.1% at end-9M10 despite strong loan growth.
Although this appears solid by international standards, Fitch
believes that further bolstering of capital is necessary to
withstand any sudden material worsening in loan quality, which
remains a threat considering the volatility in the Mongolian
operating environment.

Khan Bank is Mongolia's largest bank with 29% of system-wide
assets at end-Q210.  It is majority-owned by Japan's Sawada
Holdings Co Ltd.  The bank's main businesses are SME, consumer and
corporate lending.  Herder loans -- the bank's expertise in the
past and a source of volatility in terms of asset quality -- are
shrinking.


XACBANK LLC: Fitch Affirms 'B' Issuer Default Ratings
-----------------------------------------------------
Fitch Ratings has affirmed XacBank LLC's Long-term foreign
currency and local currency Issuer Default Ratings at 'B' and
revised the Outlook to Stable from Negative.  At the same time,
the agency has affirmed XacBank's Individual Rating at 'D/E',
Short-term foreign currency IDR at 'B', Support Rating at '5' and
Support Rating Floor at 'B-'.

XacBank's ratings take into account its modest capitalization, low
reserve coverage and, notably, its high reliance on non-deposit
funding.  Fitch believes that XacBank would need to increase its
capitalization to accommodate current rapid loan growth - 57%
increase yoy at end-9M10 - were it to be sustained, and to
maintain sufficient buffer to withstand potential future losses,
if any.

Without substantial bolstering of its capitalization and/or
reserve levels, upgrades of the Individual rating, and in turn the
Long-term IDRs are therefore unlikely.  However, XacBank's
relatively good profitability through solid revenue generation and
its sound liquidity - notwithstanding its funding profile - should
partly mitigate such potential risks.  Fitch does not expect a
deterioration in profitability in the near-term, as further loan
deterioration is unlikely given the bank's good risk management
(relative to domestic peers) and improving macroeconomic climate
(following a sharp slump in 2009).  Hence, a downgrade of the
Individual rating and, in turn, the Long-term IDRs is not
currently expected.  This view underpins the revision of the
Outlook to Stable from Negative.

Fitch has affirmed XacBank's Support Rating and Support Rating
Floor despite an upgrade of the Mongolian sovereign's Long-term
IDRs to 'B+' from 'B' on 23 November 2010.  Higher sovereign
ratings generally imply an improvement in financial capabilities
of the government to support banks in case of need.

However, Fitch notes that the government would be limited in its
ability to provide full support to the system in case of systemic
stress; in 2008, Anod Bank, the fourth-largest bank in the system
was permitted to fail.  The agency believes the probability of
support from the government to XacBank, now the fourth-largest
bank in the system, if it were required, is limited.  Having said
that, Fitch notes that the business models of the failed Anod Bank
and XacBank are very different.

At end-9M10, XacBank's regulatory capital ratio stood at 14.12%
versus 13.70% at end-9M09.  The bank's profitability picked up,
after a slump in 2009, from an increase in net interest revenue
supported by rapid loan growth and high net interest margin, and
from a decline in loan loss charges.  This led to an improvement
in ROA to 2.05% in 9M10 (9M09: 1.58%).

However, Fitch estimates that the bank's sound profitability may
only support limited loan growth beyond the current level, without
increasing its current low reserve coverage ratio and capital.
The agency notes that XacBank raised US$5m of subordinated debt in
2010 and has plans to raise additional capital.

In 2010, loan quality started to stabilize; impaired loans as per
Bank of Mongolia's scheme declined to 1.5% of total loans at end-
9M10 (end-9M09: 2.2%).  Meanwhile, reserve coverage remained low
at 1.4% of total loans at end-9M10.

Liquidity is not an immediate concern for XacBank, owing to its
balance sheet structure with medium-/long-term wholesale funding
against shorter-term lending.  Nevertheless, as the bank's funding
is heavily reliant on borrowings from foreign financial
institutions and investors, instead of deposits, there is a
potential for future refinancing risks.

XacBank is Mongolia's fourth-largest bank with 7.5% of system-wide
assets at end-Q310.  It is wholly-owned by a non-operating holding
company, TenGer Financial Group LLC.  Historically focused on the
provision of microfinance in rural Mongolia, XacBank is
increasingly focusing on consumers and SMEs in urban areas.


====================
N E W  Z E A L A N D
====================

DOMINION FINANCE: Directors Enter Not Guilty Pleas
--------------------------------------------------
The New Zealand Herald reports that the directors of Dominion
Finance and North South Finance have entered not guilty pleas in
the Auckland District Court to allegations they misled investors,
but it will be more than a year before the case goes to trial.

The NZ Herald says the Securities Commission said in July it laid
criminal charges against directors Vance Arkinstall, Rick Bettle,
Terry and Ann Butler, Paul Forsyth and Robert Barry Whale relating
to offer documents and advertisements which they said were
misleading.  The criminal charges laid by the commission carry a
maximum five-year jail term or a fine of up to NZ$300,000.

The NZ Herald says the directors were not in court Wednesday, and
entered their not guilty pleas through their defence team.

According to the NZ Herald, Justice Pamela Andrews adjourned the
case to March 18 next year, to give the defence counsel time to
view the prosecution's briefs of evidence.

However, the matter may not go to trial until 2012, because a
defence counsel member for Dominion Finance is working on the
Lombard Finance case in Wellington during the proposed October
trial, the NZ Herald notes.

Justice Andrews, the NZ Herald says, expressed concern that the
matter could be delayed by such a long period of time.

However if there was no alternative then a six-week trial date,
possibly beginning in February 2012, would be set down at the next
call-over.

                       About Dominion Finance

Based in Auckland, New Zealand, Dominion Finance Holdings
Limited (DFH:NZX) -- http://www.dominionfinance.co.nz/--engages
in the provision of financial services through the raising of
debenture stock.  The company operates through its wholly owned
subsidiaries Dominion Finance Group Limited and North South
Finance Limited, and investment vehicle Dominion Investment Fund
Limited.  Both Dominion Finance Group Limited and North South
Finance Limited accept debenture stock investments and apply
them (in conjunction with its own funds) towards the provision
of certain loans and other financial accommodation.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 11, 2008, the company's trustee Perpetual Trust Limited
appointed Rodney Gane Pardington and Barry Phillip Jordan, both
Chartered Accountants of Deloitte, as receivers and managers of
Dominion Finance Holdings' subsidiary Dominion Finance Group
(DFG), rather than allow DFG to put its moratorium proposal to
stockholders for approval.  Dominion Finance Group owes 6,055
debenture holders NZ$224 million.

A TCR-AP report on Oct. 17, 2008, said Dominion Finance Holdings
Limited appointed John Joseph Cregten and Andrew John McKay of
Corporate Finance Limited as the company's voluntary
administrators.  According to The National Business Review:
"Dominion Finance Holding went into voluntary administration after
it was fined NZ$65,000 by NZX Discipline for filing its annual
report late.  At that time, directors said the holding company had
little cash to its own name."

In addition, the TCR-AP on Dec. 3, 2008, reported that the debt
moratorium for Dominion Finance Holding's other subsidiary North
South Finance Ltd was approved by the stockholders on Dec. 2,
2008.


=================
S I N G A P O R E
=================


SELECT CAPE: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on November 19, 2010,
to wind up the operations of Select Cape Pte Ltd.

Select Group Limited filed the petition against the company.

The company's liquidator is:

         The Official Receiver
         The URA Centre (East Wing)
         45 Maxwell Road, #05-11/#06-11
         Singapore 069118


===========
T A I W A N
===========


CHANG HWA: Fitch Upgrades Individual Rating to 'C' From C/D'
------------------------------------------------------------
Fitch Ratings has upgraded Chang Hwa Bank's Individual Rating to
'C' from 'C/D', and affirmed all its other ratings.  A detailed
list of the rating actions follows at the end of this commentary.

The upgrade reflects Fitch's view that the multi-year
organizational re-engineering has helped CHB improve its risk
management culture and commercial orientation -- though the latter
still lags that of local large private banks.  The centralization
of credit approval and more stringent underwriting standards have
led to a better management of loan quality, evidenced by a steady
decline in new formation of non-performing loans from 2008 to
H110.  Meanwhile, the bank's asset quality metrics continued to
improve through write-offs and provision of higher loan loss
reserves.  At end-H110, NPLs and reserve coverage ratios were
0.95% and 129.93% respectively, compared to 1.67% and 81.84%
respectively at end-2008.

Fitch deems that CHB's strong liquidity profile, adequate capital
position and good asset quality are the key strengths supporting
its Individual Rating of 'C'.  Nonetheless, the bank's modest
underlying profitability is the main offsetting factor.  In the
meantime, the affirmation of CHB's Issuer Default Ratings and
National Ratings is based on the high probability of government
support as indicated by the bank's Support Rating of '2', which
considers its significant market position (5% market share of
deposits) and long legacy of state ownership.

CHB reported a moderate profit in H110 (annualized return on
average assets: 0.34%) as loan spreads remained thin, albeit
gradually improving, in the low interest rate environment.  Fitch
expects the bank's earnings to increase in H210 and 2011, helped
by subdued credit costs, stronger fees from wealth management
sales and favourable repricing cycles amid likely further interest
rate rises from the central bank.  That said, the sector's
structural competitive dynamics would hamper any sizeable margin
expansion and result in modest earnings improvement.

CHB has a strong liquidity profile with customer deposits
providing the majority of its funding.  The proportion of low-cost
demand deposits compares favorably with the sector average,
indicating the bank's entrenched relationship with retail
depositors.  At end-H110, the statutory liquidity ratio was
22.56%, significantly higher than the regulatory requirement of
7%.  CHB's capital is adequate and of good quality.  Its Tier 1
and capital adequacy ratios were fairly stable throughout 2007-
H110, underpinned by the bank's modest asset growth and profits,
and were 8.2% and 11.2% respectively at end-H110.

Fitch considers a downgrade to CHB's IDR of 'BBB+' to be unlikely
as it is at the Support Rating Floor -- unless the propensity for
government support has diminished.  On the other hand, an upgrade
to its IDRs will be driven by an upgrade to the Individual Rating.
The agency views such a case to be less likely in the short-to-
medium term given the bank's structurally moderate level of
internal capital generation.

CHB's subordinated bonds are rated one notch below CHB's National
Long-term rating of 'AA-(twn)' for its senior debt, and are in
compliance with Fitch's rating criteria on subordinated bond
instruments of financial institutions.

CHB was one of the major state-controlled commercial banks in
Taiwan.  The bank has strong footholds in large corporate/small
medium enterprise financing, foreign exchange, trade finance and
residential mortgages.  Taishin Financial Holdings Company (IDR
'BBB-'/Outlook Stable) is CHB's largest shareholder with a 22.55%
stake and appointed the majority of its board of directors.

Full list of rating actions for Chang Hwa Bank:

  -- Long-term foreign currency IDR affirmed at 'BBB+'; Outlook
     Stable;

  -- Short-term foreign currency IDR affirmed at 'F2';

  -- National Long-term rating affirmed at 'AA-(twn)'; Outlook
     Stable;

  -- National Short-term rating affirmed at 'F1+(twn)';

  -- Individual Rating upgraded to 'C' from 'C/D';

  -- Support Rating affirmed at '2';

  -- Support Rating Floor affirmed at 'BBB+'; and

  -- Subordinated debt rating affirmed at 'A+(twn)'.



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Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
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Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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