/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110106.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, January 6, 2011, Vol. 14, No. 4 Headlines A U S T R A L I A BURRUP FERTILISERS: Owner Loses $30-Million Corporate Jet * Bingham Explains Secured Creditor & Insolvency Law Changes H O N G K O N G GLOBE GAIN: Creditors' Proofs of Debt Due January 31 GRAND ASIA: Court to Hear Wind-Up Petition on January 19 GUANGDONG (H.K.): Members and Creditors' Meetings Set for Jan. 31 HEMPSTONE LIMITED: Chen and Lo Appointed as Liquidators INVESTORS MORTGAGE: Placed Under Voluntary Wind-Up Proceedings JETNIC INTERNATIONAL: Members' Final Meeting Set for January 31 JOINT CHARM: Creditors' Proofs of Debt Due February 1 JUNIPER ENTERPRISES: Creditors' Proofs of Debt Due January 21 JUPITER NAVIGATION: Wong and Ngan Step Down as Liquidators KANMAX ENTERPRISES: Members' Final Meeting Set for January 31 I N D I A CLASSIC INDUSTRIES: ICRA Places 'LB+' Rating on INR7cr Bank Loans DUKES RETREAT: CRISIL Assigns 'BB' Rating to INR85MM Term Loan DURGAPUR MEDICAL: CARE Assigns 'CARE BB' Rating to INR48.12cr Loan ENSEMBLE INFRASTRUCTURE: CRISIL Reaffirms 'D' Rating on Term Loan GANGAKHED SUGAR: Fitch Upgrades National Long-Term Rating to 'BB-' INNOVASSYNTH TECH: CRISIL Reaffirms 'B' Rating on Cash Credit JANADHAR CONSTRUCTIONS: CRISIL Reaffirms 'B' Rating on Term Loan KPS ENTERPRISE: CRISIL Puts 'P5' Rating on INR115MM Packing Credit MAA MANGLA: CARE Assigns 'CARE BB+' Rating to INR18.67cr LT Loan MANASA QUALITY: CRISIL Assigns 'BB-' Rating to INR50MM Cash Credit MARUTI FERTOCHEM: CRISIL Puts 'BB+' Rating on INR350MM Cash Credit MOULI SPINNER: CRISIL Assigns 'B+' Rating to INR89.3MM Term Loan P.A.S COTTON: ICRA Assigns 'LC+' Rating to INR26.25cr Term Loan PATEL INTEGRATED: Fitch Upgrades Note Ratings from 'BB+' S NARENDRA: CRISIL Reassigns 'BB' Rating to INR30MM LT Bank Loan TRIBHOVANDAS BHIMJI: CRISIL Reaffirms 'BB' Rating on Cash Credit UMAK EDUCATIONAL: ICRA Assigns 'LBB' Rating to INR34cr Term Loans VASWANI INDUSTRIES: CRISIL Assigns 'BB+' Rating to INR440MM Loan VIKRAM OVERSEAS: CRISIL Assigns 'BB-' Rating to INR70MM Term Loan WITMANS INDUSTRIES: CRISIL Reaffirms 'BB' Rating on Cash Credit J A P A N SHINGINKO TOKYO: H.I.S. Affiliate Mulls Investing in Bank K O R E A HYUNDAI ENG'G: Court Rejects Hyundai Group's Injunction Bid M A L A Y S I A NAM FATT: Appointment of Ferrier Hodgson Confirmed N E W Z E A L A N D CRAFAR FARMS: Chinese Bidder Extends Settlement to September 30 - - - - - ================= A U S T R A L I A ================= BURRUP FERTILISERS: Owner Loses $30-Million Corporate Jet --------------------------------------------------------- The Sydney Morning Herald reports that Indian entrepreneur Pankaj Oswal has lost his AU$30 million corporate jet and effectively placed a "for sale" sign on the unfinished AU$70 million home he was building in Perth dubbed "Taj Mahal-on-the-Swan." Citing documents lodged with the Australian Securities and Investments Commission, SMH discloses that Garuda Aviation, a company associated with Mr. Oswal, was placed into receivership by the Commonwealth Bank on December 17, 2010. SMH says Garuda's sole asset is a second-hand Gulfstream IV-SP acquired in 2007 with financing provided by a $30 million loan from the CBA which retained a charge over the jet. Meanwhile, James Thomson at SmartCompany reports that Mr. Oswal is also expected to place his luxury car collection up for sale as he battles to save his empire. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 20, 2010, The Australian said Burrup Fertilisers Pty Ltd has been placed into receivership with debts of about AU$800 million. ANZ Bank appointed PPB Advisory as receivers to Burrup Fertilisers. ANZ has also appointed the same receivers, PPB Advisory, over shares held by members of the Oswal Group in related company, Burrup Holdings. The bank is alleging "evidence of financial irregularities" as well as the usual default triggers relating to debt facilities established between 2002 and 2007. According to The Australian, the Oswal Group -- which owns 65% of Burrup Fertilisers -- has been dogged for years by allegations of unusual transactions and has a history of court disputes, most particularly with 35% shareholder, Norwegian group Yara International. Headquartered in Karratha in Western Australia, Burrup Fertilisers Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest ammonium producer. The company has a production capacity of 850- tonnes of liquid ammonia a year. * Bingham Explains Secured Creditor & Insolvency Law Changes ------------------------------------------------------------ Bingham McCutchen LLP relates that Australian law governing security interests in personal property will undergo major change following the commencement of the Personal Property Securities Act 2009 (the "PPSA") in May 2011. Australia currently has more than 70 varying Commonwealth, State and Territory legislative instruments dealing with the creation of security interests over personal property. The PPSA, combined with the new national PPS Register (the "PPSR"), will effectively replace the existing legislation and the multitude of related security registers, creating a unified and streamlined national personal property securities regime in Australia. An understanding of the PPSA and the operation of the PPSR is essential for all financiers, secured investors, suppliers and insolvency practitioners dealing with Australian personal property. An alert from Bingham's Financial Restructuring Practice is available at <http://www.bingham.com/Media.aspx?MediaID=11585&eID=11585>http:// www.bingham.com/Media.aspx?MediaID=11585&eID=11585 ================ H O N G K O N G ================ GLOBE GAIN: Creditors' Proofs of Debt Due January 31 ---------------------------------------------------- Creditors of Globe Gain Enterprise Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by January 31, 2011, to be included in the company's dividend distribution. The company's liquidator is: Cheng Chi Man 18/F, Tung Nam Commercial Centre 42 Pitt Street, Yaumatei Kowloon, Hong Kong GRAND ASIA: Court to Hear Wind-Up Petition on January 19 -------------------------------------------------------- A petition to wind up the operations of Grand Asia International Limited will be heard before the High Court of Hong Kong on January 19, 2011, at 9:30 a.m. Sun Horse Technologies (H.K.) Limited filed the petition against the company. The Petitioner's Solicitors are: Wilkinson & Grist 6th Floor, Prince's Building 10 Chater Road Central, Hong Kong GUANGDONG (H.K.): Members and Creditors' Meetings Set for Jan. 31 ----------------------------------------------------------------- Creditors and members of Guangdong (H.K.) Tours Company Limited will hold their final meetings on January 31, 2011, at 11:00 a.m., and 11:30 a.m., respectively at 5th Floor, Ho Lee Commercial Building, 38-44 D'Aguilar Street, Central, in Hong Kong. At the meeting, Ruby Mun Yee Leung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HEMPSTONE LIMITED: Chen and Lo Appointed as Liquidators ------------------------------------------------------- Messrs. Chen Yung Ngai Kenneth and Lo Wai Kei Roy on December 15, 2010, were appointed as liquidators of Hempstone Limited. The liquidators may be reached at: Messrs. Chen Yung Ngai Kenneth Lo Wai Kei Roy 43/F, The Lee Gardens 33 Hysan Avenue Causeway Bay Hong Kong INVESTORS MORTGAGE: Placed Under Voluntary Wind-Up Proceedings -------------------------------------------------------------- At an extraordinary general meeting held on December 17, 2010, creditors of Investors Mortgage Company Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Natalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queen's Road East Hong Kong JETNIC INTERNATIONAL: Members' Final Meeting Set for January 31 --------------------------------------------------------------- Members of Jetnic International Limited will hold their final general meeting on January 31, 2011, at 10:00 a.m., at 19/F., S.B. Commercial Building, 478 Nathan Road, Yau Ma Tei, in Kowloon, Hong Kong. At the meeting, Sum Wai Ching Helena, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. JOINT CHARM: Creditors' Proofs of Debt Due February 1 ----------------------------------------------------- Creditors of Joint Charm Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 1, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 20, 2010. The company's liquidators are: Chan Chi Bor Li Fat Chung Unit 402, 4/F Malaysia Building No. 50, Gloucester Road Wanchai, Hong Kong JUNIPER ENTERPRISES: Creditors' Proofs of Debt Due January 21 ------------------------------------------------------------- Creditors of Juniper Enterprises Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by January 21, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 22, 2010. The company's liquidators are: Chan Mi Har Ying Hing Chiu Level 28, Three Pacific Place 1 Queen's Road East Hong Kong JUPITER NAVIGATION: Wong and Ngan Step Down as Liquidators ---------------------------------------------------------- Wong Wai Pui Ricky and Ngan Lin Chun Esther stepped down as liquidators of Jupiter Navigation Corporation Limited on December 21, 2010. KANMAX ENTERPRISES: Members' Final Meeting Set for January 31 ------------------------------------------------------------- Members of Kanmax Enterprises Limited will hold their final general meeting on January 31, 2011, at 11:00 a.m., at 4/F, No. 3, 170 Lane, Tong Huah Street, Taipei, in Taiwan. At the meeting, Fan Chung Shan-Yu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= CLASSIC INDUSTRIES: ICRA Places 'LB+' Rating on INR7cr Bank Loans ----------------------------------------------------------------- ICRA has assigned 'LB+' rating to INR7.00 Crore long term fund based facilities of Classic Industries. The rating is constrained by uncertainties associated with execution and implementation that are typical of companies in nascent stage of operations. Short track record of less than a year, modest scale of operations and operating losses in H1FY11, further constrict the rating. Profitability indicators are expected to remain weak over the medium term given the low value add nature of business, intense competitive environment characterized by domination of unorganized players and availability of cheaper substitutes. The rating however draws comfort from affiliation to a strong group dealing in various plastic products, vast experience of promoters in the plastic trading business and various fiscal benefits derived by virtue of its location in HIMUDA (Himachal Pradesh Housing and Urban Development Authority), industrial area in Himachal Pradesh. About Classic Industries Classic Industries is a registered partnership firm, promoted by the Saraogi family in February 2010. The firm is engaged in manufacturing and trading of thermoforming articles and other plastics articles. The firm is the part of Shalimar group of Companies. The company has registered office in Mumbai, manufacturing unit in Himachal Pradesh and marketing & distribution channels setup in Mumbai, Delhi, Chandigarh, Kolkata, Daman and Bangalore. Recent results: M/s Classic industries have reported a loss of INR1.06 Crore on an operating income of INR1.37 Crore for the year ending 30th September 2010, as per the unaudited figures. DUKES RETREAT: CRISIL Assigns 'BB' Rating to INR85MM Term Loan -------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to The Dukes Retreat Ltd's bank facilities. Facilities Ratings ---------- ------- INR2.5 Million Cash Credit Limit BB /Stable (Assigned) INR85.0 Million Term Loan BB /Stable (Assigned) INR2.5 Million Letter of Credit P4+(Assigned) The ratings reflect Dukes's small scale of operations and vulnerability to cyclicality in the hospitality and locomotive segments; the ratings also reflect the company's large working capital requirements and susceptibility of its operating margin to raw material price fluctuations in the locomotive business. These rating weaknesses are partially offset by Dukes's moderate financial risk profile marked by healthy gearing and moderate debt protection measures despite a low net worth; promoters' extensive industry experience; and revenue diversity, owing to presence in the hotel and locomotive businesses. Outlook: Stable CRISIL believes that Dukes will maintain its moderate financial and business risk profiles over the medium term backed by its revenue diversity. However, the business will remain constrained by its small scale of operations in both the hospitality and locomotive businesses. The outlook may be revised to 'Positive' if Dukes's business risk profile improves, most likely due to increase in scale of operations arising out of higher occupancy levels in the hotel division, and increased orders in the locomotive division. Conversely, the outlook may be revised to 'Negative' if the company undertakes a large, debt-funded capital expenditure plan, or provides significant support to group companies. About The Dukes Retreat Incorporated in 1972 as Mayoor Hoteliers Pvt Ltd, the company was renamed, The Dukes Retreat Pvt Ltd, in 1985. It was reconstituted as a public limited company in 1996. Currently, Dukes has two divisions: the hospitality division at Khandala (Maharashtra) and the locomotive division at Hyderabad. The hospitality division operates a hotel, Dukes Retreat, in Khandala. The hotel has 80 rooms, five conference halls, three restaurants, a bar, a swimming pool, and a health club. In January 2009, the hospitality division collaborated with Berrgruen Hotels for outsourcing of operations; since then, the name has been changed to, The Dukes Retreat - A Keys Resort. In the locomotive division, Dukes manufactures locomotives for the railways, the cement industry, electricity boards, and power plants; it has a capacity to manufacture 24 locomotives per annum with capacities ranging from 50 horsepower (HP) to 1200 HP. The hospitality division contributed about 52% of Dukes' revenues, and the balance was contributed by the locomotive division. The contribution from the locomotive division has been increasing over the years to 48% in 2009-10 (refers to financial year, April 1 to March 31) from 37% in 2005-06. Dukes reported a profit after tax (PAT) of INR5.4 million on an operating income of INR170.1 million for 2009-10, against a PAT of INR21.9 million on an operating income of INR170.2 million for 2008-09. DURGAPUR MEDICAL: CARE Assigns 'CARE BB' Rating to INR48.12cr Loan ------------------------------------------------------------------ CARE assigns 'CARE BB' rating to the bank facilities of Durgapur Medical Centre Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ---------- ------- Long-term Bank Facilities 48.12 'CARE BB' Assigned Rating Rationale The rating is constrained by short track record of profitable operation of Durgapur Medical Centre Pvt. Ltd., high leverage ratios, high level of term debt vis-a-vis gross cash accruals and occupancy rate being on the lower side. The rating also factors in multi-specialty nature of DMC's hospital in Durgapur, association of eminent doctors and good infrastructure with latest available technology in the hospital. Ability to enhance occupancy level with high service quality and the ability to maintain & improve the profitability would remain the key rating sensitivities. DMC runs a 250 bedded multi-specialty hospital at Durgapur, namely, 'The Mission Hospital' led by Dr. Satyajit Bose. The hospital became operational in April 2008 and offers an array of healthcare facilities with Cardiothoracic facility, being its area of excellence. DMC earned PBILDT of INR13.7 crore (loss of INR1.6 crore in FY09) and PAT of INR4.6 crore (loss of INR10.3 crore in FY09) on net revenue of INR50.4 crore (INR24.5 crore in FY09) in FY10. ENSEMBLE INFRASTRUCTURE: CRISIL Reaffirms 'D' Rating on Term Loan ----------------------------------------------------------------- CRISIL has reaffirmed its ratings of 'D/P5' on Ensemble Infrastructure India Ltd's bank facilities. EIIL has not paid its term loan instalment since the last twelve months and has been classified as a non-performing asset (NPA) by its banker; the company's account has been transferred to the banker's stressed asset recovery branch. Facilities Ratings ---------- ------- INR38.7 Million Term Loan D (Reaffirmed) INR115.0 Million Cash Credit D (Reaffirmed) INR20.0 Million Letter of Credit P5 (Reaffirmed) INR60.0 Million Bank Guarantee P5 (Reaffirmed) Update EIIL recovers around 60 to 65% of the contract cost by the time of completion of the project. The remaining 35 to 40% of the dues remain outstanding for a longer period of time, which could even be longer than six months. The company incurred huge amounts of bad debts in 2008-09 and 2009-10 as its clients refused to repay the retention money by raising performance issues. As a result, the cash accruals of the company were not sufficient to repay the term debt obligations. EIIL has not paid its term loan installment since the last twelve months and has been classified as a non- performing asset (NPA) by its banker; the company's account has been transferred to the banker's stressed asset recovery branch. About Ensemble Infrastructure The Mumbai-based EIIL offers civil designing and interior contract services. Its clientele includes large companies, banks, and government bodies. The company was founded in 2003 by Mr. Nilesh Rathod and Mr. Vikas Rathod who are first generation entrepreneurs. GANGAKHED SUGAR: Fitch Upgrades National Long-Term Rating to 'BB-' ------------------------------------------------------------------ Fitch Ratings has upgraded India's Gangakhed Sugar and Energy Ltd's National Long-term rating to 'BB-(ind)' from 'B+(ind)'. The Outlook is Stable. The agency has also upgraded GSEL's INR3,043.1 million term loans to 'BB-(ind)' from 'B+(ind)' and assigned its INR512.5 million cash credit limit a 'BB-(ind)' rating. The upgrade reflects the successful completion of GSEL's integrated cane processing plant comprising a 6,000 TCD (tonnes crushed per day) sugar plant, a 60KLPD (kilo liters per day) distillery plant and a 30MW co-generation plant. Fitch notes the sugar, co-generation and distillery plants started commercial operation from December 2009, January 2010 and October 2010 respectively. The upgrade also factors in Fitch's expectation of an improvement in GSEL's financial and credit profiles in 2011 on account of the positive cash flows from the sugar, co-generation and distillery plants. Due to limited days available for sugar crushing in 2010 the company expects to see a net loss. This would result in a decline in net worth (share capital plus reserves) and a higher debt-to- equity ratio at GSEL. However, with a full crushing season available in 2011, and the subsequent expected improvement in revenue and profitability, GSEL's debt-to-equity should improve. Key rating constraints are GSEL's lack of track record in the sugar industry, its small scale and revenue dependency on sugar. The latter makes GSEL's financial and credit profiles susceptible to the volatility associated with the sugar sector. Fitch notes that the sugar sector in India typically follows a cycle of five to seven years, with high production in the first three to four years and lower output in the subsequent years. Low production typically results in higher sugar prices and improved profitability for sugar manufacturers which is translated into prompt payments by sugar mills to cane farmers, encouraging them to grow more sugar cane. This eventually results in higher cane as well as sugar production, leading to falling sugar prices. Downward pressure on ratings could result from lower-than-expected revenues and margins, and a debt/EBITDA of more than 5x on a sustained basis. However, successful operation of the integrated plant translating into a sustained improvement in the financial profile could act as a positive rating trigger. Incorporated in September 2007, GSEL was formerly known as Gangakhed Sugar and Energy Pvt Ltd. The company commenced operations with its sugar plant in December 2009. Based in Maharashtra, the company benefits from location advantage through higher recoveries, lower competition and fewer cane dispute issues. INNOVASSYNTH TECH: CRISIL Reaffirms 'B' Rating on Cash Credit ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Innovassynth Technologies (I) Ltd continue to reflect ITIL's weak financial risk profile, marked by poor debt protection metrics, and exposure to risks related to customer concentration in revenue profile. These weaknesses are partially offset by ITIL's strong operational capabilities, and the benefits that the company derives from the healthy growth potential in the contract research and manufacturing services industry. Facilities Ratings ---------- ------- INR190.0 Million Cash Credit B/Stable (Reaffirmed) INR75.0 Million Letter of Credit P4 (Reaffirmed) INR15.0 Million Bank Guarantee P4 (Reaffirmed) Outlook: Stable CRISIL believes that ITIL will maintain its market position over the medium term on the back of its technological infrastructure, pool of skilled human resources, and established contacts with reputed pharmaceutical companies. The outlook may be revised to 'Positive' in case of significant and sustainable growth in ITIL's revenues and cash profits, resulting in an improved financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company continues to report losses, leading to pressure on its accruals and deterioration in its debt servicing ability. Summary Update For 2009-10 (refers to financial year, April 1 to March 31), ITIL reported significantly low revenues of around INR319 million because of low offtake from its key customer, BASF. Hence, its contract manufacturing division reported lower revenues, as compared to those in 2008-09. ITIL's custom synthesis division, however, reported better revenues as compared to those in 2008-09. In the current year, the company has observed strong offtake for its products and services, with existing customers increasing their offtake levels and new customers being added to the custom synthesis division. A significant drop in prices of key raw materials led to significant improvement in profitability, with an earnings before interest, depreciation, tax and amortization (EBIDTA) margin of around 8.7% in 2009-10 against that of -2.5% in 2008-09. Net losses reduced to INR77 million in 2009-10 from INR137 million in 2008-09. Profitability margins are expected to improve further in the current year because of an increase in scale of operations and improved absorption of fixed costs, along with lower interest charges because of gradual replacement of higher interest long- term debt with lower interest long-term loans from Department of Science and Technology, Government of India. ITIL continues to depend heavily on bank limits to fund its working capital requirements. The company had a high bank limit utilisation, averaging at around 95%, over the 12 months through October 2010. About Innovassynth Technologies ITIL, promoted by Mr. S B Ghia with financial investments by Mr. Rajan Raheja and Mr. Rakesh Jhunjhunwala, is engaged in the manufacture and export of chemical compounds under two business divisions: contract manufacturing and custom synthesis. The company's manufacturing units are in Khopoli (Maharashtra). Its major customers include BASF, Rasayan Inc, etc. ITIL reported a net loss of INR77 million on net sales of INR319 million for 2009-10, against a net loss of INR137.1 million on net sales of INR424.2 million for 2008-09. JANADHAR CONSTRUCTIONS: CRISIL Reaffirms 'B' Rating on Term Loan ---------------------------------------------------------------- CRISIL's rating on the bank facility of Janadhar Constructions Pvt Ltd continues to reflect JCPL's limited track record, and exposure to risks related to implementation of its maiden real estate project. These rating weaknesses are partially offset by the benefits that JCPL derives from healthy demand scenario in the affordable housing segment and good infrastructure of its project. Facilities Ratings ---------- ------- INR250.00 Million Long-Term Loan B/Negative (Reaffirmed) Outlook: Negative CRISIL believes that JCPL will continue to face pressures as its housing project is in the nascent stage and as booking and customer receipts levels for its project have been low because of delays in commencement of construction. The rating may be downgraded if JCPL faces further cost or time overrun in its project, its cash flows are hit by further delays in receipt of customer advances, or if the company undertakes larger-than- expected debt-capital expenditure (capex) programme. Conversely, the outlook may be revised to 'Stable' if JCPL achieves booking for a substantial portion of the saleable flats it is constructing and completes its ongoing project on time. Update JCPL has commenced construction of its housing project in March 2010, a delay by around four months. JCPL has, so far, completed about 40% of Phase I of the project. The company has received booking advance of about INR5 million for 100 apartments (about 20%) of total apartments of about 480 in Phase I. Work on Phase II and III of the project is likely to commence in April 2011 (this, though, will happen only if the company achieves substantial booking for Phase I). Although there is relatively healthy demand for affordable housing, JCPL has to receive adequate bookings and customer receipts on time, so as to maintain adequate liquidity. About Janadhar Constructions Incorporated in 2007, JCPL is developing residential apartments in the affordable housing segment, near Bengaluru (Karnataka). The company commenced the construction of its first project, Janadhar Shubha, in March 2010. The project involves construction of 1296 flats, with a total built up area of around 0.7 million square feet. The estimated cost of the project is around INR760 million, of which INR250 million is likely to be funded through debt. The project is divided into three phases?Phase I comprises around 480 apartments ranging from 400 to 600 square feet, spread across 9 blocks. The remaining apartments will be constructed under Phase II and Phase III. Janalakshmi Social Services (JSS), a not-for-profit company registered under Section 25 of The Companies Act, 1956, owns 60% of JCPL's equity shares. Mr. Ramesh Ramanathan, founder of JSS, is the chairman of JCPL. KPS ENTERPRISE: CRISIL Puts 'P5' Rating on INR115MM Packing Credit ------------------------------------------------------------------ CRISIL has assigned its 'P5' rating to KPS Enterprise's bank facilities. The ratings reflect irregularities in its export credit facilities and pressure on its liquidity on account of delays in the realizations from overseas customers. Facilities Ratings ---------- ------- INR115.0 Million Packing Credit P5 (Assigned) INR250.0 Million Bills Discounting P5 (Assigned) The other credit concerns relate to the company's vulnerability to government regulations, and its geographically concentrated revenue profile. These rating weaknesses are partially offset by extensive experience of KPS's prooters in the agricultural commodities trading business. KPS, set up in 1999, is a proprietorship concern of Mr. Purnendu Das (second-generation entrepreneur), based in Kolkata. The firm trades in agricultural commodities, such as onion, rice, maize, and pulses, which it exports to Bangladesh. It has a 3000-square foot warehouse at Howrah, near Kolkata. The day-to-day affairs of the concern are managed by Mr. Purnendu Das and his son Mr. Purshonjit Das. KPS reported a profit after tax (PAT) of INR4.7 million on net sales of INR1377.7 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR1.0 million on net sales of INR330.1 million for 2008-09. MAA MANGLA: CARE Assigns 'CARE BB+' Rating to INR18.67cr LT Loan ---------------------------------------------------------------- CARE assigns 'CARE BB+' and 'PR4+' ratings to the bank facilities of MAA Mangla Ispat Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ---------- ------- Long-term Bank Facilities 18.67 'CARE BB+' Assigned Short term Bank Facilities 4.20 'PR 4+' Assigned Rating Rationale The rating is constrained by short track record in steel products manufacturing and small size of the company, low capacity utilisation, stressed liquidity condition in FY10, volatility in raw material & finished goods prices, lack of backward integration, intense competition and cyclicality in the steel industry. The rating also factors in experience of the new management, diversified customer profile and moderate financial position of the company. Ability of the company to combat the pressure of cyclicality and volatility in raw material & finished goods prices will remain the key rating sensitivities. Maa Mangla Ispat Pvt. Ltd. is engaged in manufacturing of sponge iron with an aggregate capacity of 60,000 MTPA at Raigarh, and is also involved in trading of iron ore. MMI earned PBILDT of INR6.6 crore (INR4.7 crore in FY09) and PAT of INR2.4 crore (INR2.2 crore in FY09) on net sales of INR30.6 crore (INR22.3 crore in FY09) in FY10. MANASA QUALITY: CRISIL Assigns 'BB-' Rating to INR50MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB-/Stable' rating to the cash credit facility of Manasa Quality Enterprises. Facilities Ratings ---------- ------- INR50.00 Million Cash Credit BB-/Stable (Assigned) The rating reflects Manasa's small scale of operations, its susceptibility to volatility in raw material prices and the vagaries of the monsoon, and its exposure to risks related to adverse regulatory changes. These weaknesses are partially offset by the established regional presence of the company, the healthy prospects of the rice processing industry, and its above-average financial risk profile. Outlook: Stable CRISIL believes that Manasa will, over the medium term, continue to benefit from its promoter's industry experience and the healthy prospects of the rice processing industry. The outlook may be revised to 'Positive' if Manasa scales up its operations and increases the geographical diversity in its revenue profile, while improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm undertakes a larger- than-expected debt-funded capital expenditure programme, its revenues and profitability decline sharply, or the partners withdraw sizeable capital from the firm, leading to deterioration in the firm's financial risk profile. About Manasa Quality Incorporated in 1998, Manasa processes rice and maize. Manasa's processing operations primarily involves sorting, grading and polishing rice. The promoter directors Mr. Gudimetla Brahmananda Reddy, Mr. Dwarampudi Veerabhadra Reddy Mr. Sabbella Kasi Eswara Reddy and Mr. Karri Srinivasa Reddy have a long standing presence of three decades in similar lines of business. Manasa has its processing facilities in Kakinada (Andhra Pradesh), at which it has a sorting capacity of 350 tonnes per day (tpd), grading capacity of 500 tpd, and polishing capacity of 350 tpd. Manasa reported a profit after tax (PAT) of INR1 million on net sales of INR487 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on net sales of INR311 million for 2008-09. MARUTI FERTOCHEM: CRISIL Puts 'BB+' Rating on INR350MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities of Maruti Fertochem Ltd. Facilities Ratings ---------- ------- INR350.0 Million Cash Credit BB+/Stable (Assigned) INR300.0 Million Letter of Credit P4+ (Asigned) INR20.0 Million Bank Guarantee P4+ (Assigned) The ratings reflect Maruti's small scale of operations and susceptibility to adverse changes in government regulations in the fertiliser industry and to vagaries of monsoon. These rating weaknesses are partially offset by Maruti's above-average financial risk profile, marked by moderate gearing and debt protection measures, and established presence in the fertiliser industry, supported by a strong network of dealers. Outlook: Stable CRISIL believes that Maruti will maintain its healthy business risk profile over the medium term on the back of its established presence in the fertiliser industry and its large dealer network in Maharashtra and Karnataka. The outlook may be revised to 'Positive' in case of a substantial improvement in Maruti's scale of operations as the proposed trading operations lead to more- than-expected cash accruals without significantly deteriorating the company's capital structure and debt protection measures. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the company's financial risk profile because of larger-than-expected debt-funded capital expenditure or any pressure on profitability leading to lower-than-expected cash accruals. About Maruti Fertochem Incorporated in 1992, Maruti commenced operations in 1994. The company is part of the Aurangabad (Maharashtra)-based RJ group managed by Mr. Raghavendra S Joshi. Maruti blends raw material such as single super phosphate (SSP), di-ammonium phosphate (DAP), and muriate of potash (MOP), to manufacture granular NPK (nitrogen, phosphorous, and potassium) fertilisers. It set up its first unit in Latur (Maharashtra) with active participation from local farmers and expanded operations by setting up of two units in 2000, one in Hospet (Karnataka) and one in Aurangabad. In 2006, Maruti started production at a fourth unit in Kolhapur (Maharashtra) in a leased plant. With a total production capacity of about 115,000 tonnes per annum, Maruti has operations in Maharashtra, which account for a substantial proportion of its revenues, and Karnataka. The products are sold through a large dealer network. Maruti reported a profit after tax (PAT) of INR10.9 million on net sales of INR637.1 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR11.8 million on net sales of INR596.0 million for 2008-09. MOULI SPINNER: CRISIL Assigns 'B+' Rating to INR89.3MM Term Loan ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to the bank facilities of Mouli Spinners Ltd. Facilities Ratings ---------- ------- INR89.30 Million Term Loan B+/Stable (Assigned) INR34.00 Million Cash Credit B+/Stable (Assigned) INR15.00 Million Letter of Credit P4 (Assigned) INR3.60 Million Bank Guarantee P4 (Assigned) The ratings reflect MSL's small scale of operations, and exposure to risks related to supplier concentration in its revenue profile, to intense competition in the textiles industry, and to volatility in raw material prices. These rating weaknesses are partially offset by MSL's moderate financial risk profile, marked by healthy debt protection metrics, and promoters' industry experience. Outlook: Stable CRISIL believes that MSL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company significantly scales up its operations, while maintaining its profitability, resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if MSL's capacity utilisation and margins decline substantially, or there is a shortage of raw material, or if the company undertakes a large, debt-funded capital expenditure programme that weakens its financial risk profile. About Mouli Spinners Incorporated in 2004 by Mr. S Panneerselvam, Tirupur (Tamil Nadu)- based MSL manufactures viscose fibre yarn in the count range of 20s to 40s, with a capacity of 12,096 spindles. In 2010-11 (refers to financial year, April 1 to March 31), the company has undertaken a capital expenditure of about INR25 million for installing autoconer and carding machines, which are expected to be used for the proposed diversification into the manufacture of modal fibre. This is expected to result in an increase in capacity by 30%. MSL reported a profit after tax (PAT) of INR1.9 million on net sales of INR283 million for 2009-10, against a PAT of INR2.7 million on net sales of INR247 million for 2008-09. P.A.S COTTON: ICRA Assigns 'LC+' Rating to INR26.25cr Term Loan --------------------------------------------------------------- ICRA has assigned an 'LC+' rating to the INR26.25 crore term loan and INR5.00 crore fund-based bank facilities of P.A.S Cotton Mills Private Limited. ICRA has also assigned an 'A5' rating to the INR1.75 crore non-fund based facilities of the company. The assigned ratings reflects recent delays in debt servicing and tight liquidity conditions as reflected in overdrawal of working capital limits. The ratings also factor in the small scale of operations restricting economies of scale and financial flexibility, the adverse power situation in Tamil Nadu which affects the profitability of the firm and the stressed financial profile of the firm characterized by highly leveraged capital structure, weak coverage indicators and moderate working capital requirements. However, the assigned ratings take into account the experience of the promoters in the textile business and the operational support from the group companies involved in similar line of business. About P.A.S. Cotton P.A.S. Cotton Mills Private Limited was incorporated in 2005 to manufacture cotton yarn. The Company started commercial production from April 2007 with a spindleage of 18000 which has been gradually increased to 24,048 by 2009-10. The product profile of the company includes carded and combed varieties of yarn in cone and hank forms. The company manufactures yarn of counts 60s, 80s and 100s. The revenues for PASPL are entirely generated through domestic sales and no direct exports are done. However, the company does merchant export sales to fulfil the export obligation under EPCG scheme PASPL reported a profit after tax of INR-0.1 crore on an operating income of INR17.7 crore for the year ended March 31, 2010. Recent Results For the half year ended September 2010, the company has reported a net profit of INR0.1 crore on an operating income of INR11.7 crore. PATEL INTEGRATED: Fitch Upgrades Note Ratings from 'BB+' -------------------------------------------------------- Fitch Ratings has upgraded India's Patel Integrated Logistics Ltd's National Long-term rating to 'BBB-(ind)' from 'BB+(ind)' with a Stable Outlook. The agency has also upgraded the ratings on PILL's instruments: - INR52m finance lease: upgraded to 'BBB-(ind)' from 'BB+(ind)'; - INR268.5m cash credit facility (enhanced from INR239m): upgraded to 'BBB-(ind)' from 'BB+(ind)'; and - INR210m non-fund based limits (enhanced from INR155m): upgraded to 'F3(ind)' from 'F4(ind)'. Fitch has also withdrawn the rating on PILL's INR7.5m term-loan facility as it has been fully repaid. The upgrades are based on the consistent improvement in PILL's profitability over FY10 and first half of FY11 and the expected strengthening of its credit metrics in FY11. The company's liquidity position also improved consistently over FY10 and H1FY11, driven by the healthy revival in the domestic logistics industry. The company's EBITDA margins increased to 3.43% in FY10 (FY09: 2.74%), and were around 3.8% during the six months ended 30 September 2010. Fitch expects PILL's financial position to improve on a sustained basis over the medium-term. The company's tight control over fixed costs by rationalising employee expenses and opting for the franchise route for business expansion are some of the factors that led to the improvement in its profitability margins. The agency expects the asset-light franchisee model adopted by PILL for business expansion to provide greater financial flexibility during a downturn. The company's collection efficiency has also improved, and is expected to translate into lower debtor days over the short- to medium-term. At end-FY10, PILL's leverage (adjusted net debt /operating EBITDAR) and interest coverage (operating EBITDA/gross interest expense) were 3.95x and 2.48x, respectively. The ratings are supported by PILL's leadership position in the domestic courier consolidation market with a share of over 70%, as well as by its strong position in the domestic road freight market, in which it is among India's top five players. The ratings are constrained by the company's low bargaining power with airlines, high customer concentration in the courier consolidation business, and intense competition in the road transportation business. Given PILL's reliance on a handful of courier companies for bulk of the revenues, delays by a few clients can result in a strained liquidity position. Another factor related to the courier consolidation business that constrains liquidity is that payments to airlines have to be made within the stipulated credit period (15 days), whereas the company is forced to offer larger credit period to its clients. Negative rating triggers include an increase in PILL's adjusted net debt/operating EBITDAR to over 4.5x and/or a decline in its operating EBITDAR/(gross interest expense + rents) to below 1.6x on a sustained basis. Any significant deterioration in the company's liquidity position, caused primarily by large debt- funded capacity expansions could also trigger a rating downgrade. Positive rating triggers include PILL's adjusted net debt/operating EBITDAR strengthening to below 3.0x and/or an increase in its operating EBITDAR/(gross interest expense + rent) to over 2.5x on a sustained basis, accompanied by the generation of positive free cash flows on a sustained basis. PILL was created from the merger of Patel Roadways Ltd and Patel On Board Courier Ltd. It is primarily involved in road freight and courier consolidation services. The company has recently expanded its presence in the logistics space by entering into the warehousing business. It has leased a 32,930 square feet customs bonded warehouse in Chennai, and is evaluating warehousing opportunities in other locations as well. In FY10, the company reported revenues of INR3,467 million (FY09: INR4,049m), EBITDA of INR119 million (FY09: INR111 million), net profit of INR45 million (FY09: INR27 million) and adjusted net debt /operating EBITDAR of 3.95x (FY09: 4.41x). S NARENDRA: CRISIL Reassigns 'BB' Rating to INR30MM LT Bank Loan ---------------------------------------------------------------- CRISIL has assigned its 'BB/Positive' rating to the bank facilities of S Narendra, part of the S Narendra group; the facilities were earlier short-term facilities and were rated 'P4+' by CRISIL. Facilities Ratings ---------- ------- INR30 Million Proposed LT Bank BB/Positive (Reassigned) Loan Facility INR177 Million Post-Shipment Credit BB/Positive (Reassigned) INR33 Million Packing Credit BB/Positive (Reassigned) The rating continues to reflect the S Narendra group's working- capital-intensive operations, modest net worth, and high geographic concentration in revenue profile. These rating weaknesses are partially offset by the benefits that the group derives from its promoters' extensive industry experience, its conservative risk appetite, and the assured supply of rough diamonds from its group entity, Sauraj Diamonds NV (Sauraj Diamonds). For arriving at the rating, CRISIL has combined the business and financial risk profiles of S Narendra, with its group entities Saurin Diamonds and Siddhanth Diamonds. This is because these three entities, collectively referred to herein as the S Narendra group, are in the same line of business, and have the same ownership and management. Outlook: Positive CRISIL believes that the S Narendra group's financial risk profile will improve over the medium term, as the group scales up its operations. The ratings may be upgraded if the group increases its revenues, while maintaining its profitability, capital structure, and working capital policies. Conversely, the outlook may be revised to 'Stable' if there is significant pressure on the group's margins, or if there is a lengthening of its working capital cycle. About S Narendra S Narendra, a partnership firm, was set up in 1964 by the Jhaveri family. One of the founders, Mr. Rajnikant Jhaveri, has more than six decades of experience in the gems and jewellery industry. Currently, S Narendra is managed by Mr. Rajnikant Jhaveri's son, Mr. Amish Jhaveri, and grandson, Mr. Saurin Jhaveri, who are also partners in the firm. S Narendra has manufacturing units in Surat and Bhavnagar (both in Gujarat), and Dahisar (Maharashtra), and has employed over 1000 skilled workers. S Narendra buys rough diamonds from Sauraj Diamonds, which is located at Antwerp in Belgium. Siddhant Diamonds manufactures and sells diamond-studded gold and platinum jewellery in both the export and local markets. Saurin Diamonds also manufactures diamond jewellery, besides trading in diamonds. For 2009-10 (refers to financial year, April 1 to March 31), the S Narendra group reported a profit after tax of INR32 million on net sales of INR1.03 billion, against a net loss of INR33 million on sales of INR821 million in 2008-09. TRIBHOVANDAS BHIMJI: CRISIL Reaffirms 'BB' Rating on Cash Credit ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Tribhovandas Bhimji Zaveri & Sons continues to reflect TBZ & Sons' geographically concentrated revenue profile, modest financial risk profile marked by small net worth and scale of operations, and susceptibility to volatility in gold prices. These rating weaknesses are partially offset by TBZ & Sons' established market position in the jewellery business in Mumbai, supported by its promoters' industry experience. Facilities Ratings ---------- ------- INR80.0 Million Cash Credit BB/Stable (Reaffirmed) INR20.0 Million Proposed LT BB/Stable (Reaffirmed) Bank Facility Outlook: Stable CRISIL believes that TBZ & Sons will maintain its market share in the jewellery segment in Mumbai over the medium term, supported by its strong brand image and promoters' industry experience. The outlook may be revised to 'Positive' if TBZ & Sons generates more- than-expected operating revenues and margins, or there is substantial equity infusion by the partners. Conversely, the outlook may be revised to 'Negative' if the firm undertakes a large, debt-funded capital expenditure programme or its operating margin declines. Update TBZ & Sons' net sales declined by 4.6% in 2009-10 (refers to financial year, April 1 to March 31) to INR301.0 million from INR316.0 million in 2008-09. The impact of the decline in sales was mitigated by increase in gold prices. Inventory gains on account of increase in gold prices and lowering in selling expenses contributed to an improvement in the firm's operating margin to 8% in 2009-10 from 6.2% in 2008-09. Similarly, profit- after-tax (PAT) increased to 1.9% in 2009-10 from 1.3% in 2008-09. Debt protection metrics remained weak, with net cash accruals to total debt (NCATD) and interest coverage ratios at 0.08 times and 1.4 times respectively in 2009-10. Gearing improved to 1.1 times as on March 31, 2010 from 1.4 times as on March 31, 2009, driven by equity infusion of INR5 million by the firm's partners. TBZ & Sons reported a PAT of INR5.7 million on net sales of INR301.0 million for 2009-10, against a PAT of INR4.1 million on net sales of INR316.0 million for 2008-09. About TBZ & Sons TBZ & Sons is a partnership firm promoted by the Pratap Zaveri faction of the Zaveri family, which has been in the retail jewellery business since 1864 in Mumbai. TBZ & Sons was formed in 1977, when the firm commenced operations with its first jewellery showroom at Opera House, Mumbai. The firm launched its second showroom in October 2008 in Ahmedabad, but closed it in 2009 as revenues were below expectations. The firm has a shop-in-shop arrangement with Sreekota Jewellers in Coimbatore. TBZ & Sons is currently managed by Mr. Pratap Zaveri and his three sons. UMAK EDUCATIONAL: ICRA Assigns 'LBB' Rating to INR34cr Term Loans ----------------------------------------------------------------- ICRA has assigned the long-term rating of 'LBB' to the INR34.00 crore term loans of Umak Educational Trust. The long term rating carries a stable outlook. The rating favorably factors in the established track record of Umak in the field of education, the experienced as well as qualified faculty of the institute and the strong financial back ground of the promoters of the trust. The rating is, however, constrained on account of the declining number of student intake over the last few years, nascent stage of Umak's planned capital expenditure to construct a new campus on Sohna Road (Gurgaon), its moderate scale of operations and increasing competition in the private education sector. Additionally, absence of accreditation from an Indian statutory body and delay in project execution can limit the scale of operations of Umak. Going forward, ability to timely execute the planned capital expenditure, scaling up the operations and ensuring optimal occupancy levels in its courses will remain amongst the key rating sensitivities. Established in July 2006, Umak Educational Trust currently manages its only institute i.e. International Management & Technology (IIMT). Dr. Ramesh Kapur and his family members are the trustees of Umak. The Kapur Family is also the promoters of AB Hotels Limited which is the flagship company of the group that runs the Radisson Hotels in Delhi and Varanasi. Currently, the institute (IIMT) has a tie-up with Oxford Brookes University (OBU) and offers BSc. in Hotel Management and BBA (3 years and 4 years) degree courses. For the academic year (2011-12), the institute has launched new courses like BBA (Hons) in Retail Management, Post Gradaute Program in Management (PGPM) and Post Graduate Degree in Management. The institute is currently operating from its leased campus in Udyog Vihar, Gurgaon. Presently, the trust is undertaking construction of its new 16-acre campus on Sohna Road (Gurgaon). As part of phase-I of the development, 5-acre land parcel is being developed with a built-up area of more than 200,000 sq. ft. at a cost of INR51 crore and the campus is expected to be operational by CY 2012. Recent Results In FY10, Umak reported a profit after tax (PAT) of INR0.14 crore on an operating income of INR5.54 crore resulting in a profit margin of 2.6%. VASWANI INDUSTRIES: CRISIL Assigns 'BB+' Rating to INR440MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities of Vaswani Industries Ltd. Facilities Ratings ---------- ------- INR180 Million Cash Credit BB+/Stable (Assigned) INR440 Million Term Loan BB+/Stable (Assigned) INR30 Million Bank Guarantee P4+ (Assigned) INR100 Million Letter of Credit P4+ (Assigned) The rating reflects VIL's marginal market share and susceptibility to volatility in raw material prices. These weaknesses are partially offset by VIL's moderate operating efficiency backed by integration in its operations, and its moderate financial risk profile marked by moderate gearing, net worth and cash accruals. Outlook: Stable CRISIL believes that VIL will benefit over the medium term from its integrated operations and its promoters' experience in the steel industry. The outlook may be revised to 'Positive' in case of a further increase in its level of integration of operations or significant increase in its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if the company's capacity utilization is lower than expected, there is significant decline in its operating margin, or if it undertakes a large, debt-funded capital expenditure programme, adversely affecting its financial risk profile. About Vaswani Industries VIL was established in July 2003 in Raipur by Mr. Ravi Vaswani and Mr. Pramod Vaswani. VIL manufactures sponge iron and billets, with production capacities of 90,000 tonnes per annum (tpa) and 36,000 tpa respectively. The company also has installed a power plant of 11.5 megawatts capacity. For 2009-10 (refers to financial year, April 1 to March 31), VIL reported a profit after tax (PAT) of INR37 million on net sales of INR920 million, against a PAT of INR41 million on net sales of INR1338 million for 2008-09. VIKRAM OVERSEAS: CRISIL Assigns 'BB-' Rating to INR70MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank facilities of Vikram Overseas Ltd. Facilities Ratings ---------- ------- INR70.00 Million Term Loan BB-/ Stable (Assigned) INR125.00 Million Packing P4+ (Assigned) Credit/ Bill Discounting The ratings reflect VOL's weak financial risk profile, marked by small net worth, moderately high gearing and weak debt protection measures, large working capital requirements, small scale of operations, with geographic and customer concentration in its revenue profile, and its exposure to volatility in foreign exchange rates. These weaknesses are partially offset by the extensive experience of VOL's promoters in the readymade garment export business, and its improving profitability. Outlook: Stable CRISIL believes that VOL will benefit from its established customer relationships over the medium term. Its financial risk profile will, however, remain constrained over the corresponding period on account of large working capital requirements and its small scale of operations. The outlook may be revised to 'Positive' in case of significant improvement in cash accruals. Conversely, the outlook may be revised to 'Negative' in case of slower-than-expected increase in scale of operations, or if VOL's financial risk profile deteriorates due to pressure on profitability. About Vikram Overseas Incorporated in 1976, VOL manufactures and exports of readymade garments. The company exports to US- and European Union-based brands such as Marcopolo, Tom Tailors, Guess and Charlotterouse. The company has three manufacturing units in Okhla (Delhi), each of which has a manufacturing capacity of around 0.15 million pieces per month. The company is in the process of setting up a new unit in Noida, with a manufacturing capacity of 0.15 million pieces per month. This will be completed in 2011. VOL derives around 70% of its income from the sale of knitted garments to mostly EU-based customers, while the remainder is derived from the sale of woven garments almost exclusively to US-based retailers. VOL reported an estimated profit after tax (PAT) of INR6.7 million on estimated net sales of INR747.24 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR4.1 million on net sales of INR903.0 million for 2008-09. WITMANS INDUSTRIES: CRISIL Reaffirms 'BB' Rating on Cash Credit --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Witmans Industries, part of the Witmans group, continue to reflect the Witmans group's small scale of operations and exposure to inherent cyclicality in the textile lubricants industry. These weaknesses are partially offset by the Witmans group's established presence in the textile lubricants industry, and moderate financial risk profile marked by a low gearing and strong debt protection metrics. Facilities Ratings ---------- ------- INR60.0 Million Cash Credit BB/Stable (Reaffirmed) INR9.0 Million Line of Credit P4+ (Reaffirmed) INR60.0 Million Letter of Credit P4+ (Reaffirmed) INR1.0 Million Bank Guarantee P4+ (Reaffirmed) For arriving at the ratings, CRISIL has combined the business and financial risk profiles of WI, Witmans Petrochem Ltd (WPL), and EsterLube Technologies Ltd. This is because these entities, collectively referred to herein as the Witmans group, are in a common line of business, and have fungible cash flows and a common set of promoters. Moreover, WPL trades in base oil, while Esterlube manufactures emulsifiers for lubricants. Both WPL and Esterlube sales are entirely to WI. Outlook: Stable CRISIL believes that the Witmans group will benefit over the medium term from its established market presence in the textile lubricants market, and maintain its moderate financial risk profile supported by low gearing, strong debt protection metrics, offset by low net worth. The outlook may be revised to 'Positive' if the group significantly scales up its operations, while maintaining its operating margin, leading to higher cash accruals. Conversely, the outlook may be revised to 'Negative' if the Witmans group's cash accruals are lower than expected or if the group undertakes a larger-than-expected, debt-funded capital expenditure (capex), resulting in significant deterioration in its capital structure. About the Group Set up in 1999 in Mumbai (Maharashtra), WI manufactures lubricant oils that are used primarily in the textiles industry. It also manufactures industrial paints, which contribute to about 2% of the total revenues of the company. The textiles industry forms the largest user segment for WI's lubricant oils, accounting for about 90% of total sales. The firm's lubricant oil plant at Daman has an installed capacity of 1200 tonnes per month (tpm) on a single-shift basis. Currently, WI has planned a capex for increasing its capacity to about 1700 tpm. Industrial paints are manufactured at Wada (Maharashtra), with an installed capacity of around 0.5 million litres per annum, on a single-shift basis. WPL, initially formed to trade in lubricants, began trading in base oils in 1999 to supply to WI. Set up as a partnership firm in 2004, Esterlube manufactures emulsifiers. The Witmans group reported a profit after tax (PAT) of INR40.9 million on net sales of INR996 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR39 million on net sales of INR909 million for 2008-09. ========= J A P A N ========= SHINGINKO TOKYO: H.I.S. Affiliate Mulls Investing in Bank --------------------------------------------------------- Kyodo News reports that an affiliate of H.I.S. Co is eyeing investing in Shinginko Tokyo, a struggling bank primarily owned by the Tokyo metropolitan government. Sources familiar with the matter told Kyodo that senior officials of the H.I.S.-affiliated firm and metropolitan government officials met Wednesday to negotiate the details of the company's purchase of the bank's shares. According to Kyodo, H.I.S. Chairman Hideo Sawada concurrently serves as president of Sawada Holdings Co, which has financial services firms such as H.S. Securities Co and H.S. Insurance Co under its wing. Kyodo discloses that Shinginko Tokyo has racked up huge loan losses due to problems in its loan screening system and defects in its supervision system for the extension of loans. The metropolitan government injected fresh capital of JPY40 billion into the bank in April 2008 as its accumulated losses had come to JPY101.6 billion as of the end of March in the same year. About Shinginko Shinginko Tokyo Ltd. was founded in April 2005 by the Tokyo Metropolitan Government at the initiative of Tokyo Governor Shintaro Ishihara with an investment of JPY100 billion. The bank provides loans mainly to struggling small firms based in Tokyo. The bank was Mr. Ishihara's promise during his 2003 gubernatorial election campaign. * * * Shinginko Tokyo continues to carry a "BB+" Subordinated Debt rating placed by Japan Credit Rating Agency on March 28, 2008. ========= K O R E A ========= HYUNDAI ENG'G: Court Rejects Hyundai Group's Injunction Bid ----------------------------------------------------------- Se Young Lee and Kyong-Ae Choi report that a South Korean court rejected Hyundai Group's attempt to salvage its bid for a controlling stake in Hyundai Engineering & Construction Co., paving the way for Hyundai Motor Group to acquire the shares. The Journal relates that the ruling brings Hyundai E&C's creditors-turned-shareholders closer to finishing a fractious process that could end up raising KRW5.1 trillion (US$4.53 billion), which people familiar with the situation said was Hyundai Motor's offer. Lead creditor Korea Exchange Bank said the creditors now aim to sign a memorandum of understanding with Hyundai Motor and sign a final sale agreement by mid-February, says the Journal. According to the Journal, the Seoul Central District Court on Tuesday rejected Hyundai Group's request for a preliminary injunction that would stop the creditors from opening talks with Hyundai Motor and acknowledge that Hyundai Group retains rights as the preferred bidder. Hyundai Group said it plans to appeal the decision, the Journal notes. Bloomberg News says Hyundai E&C's controlling shareholders may sign a preliminary deal next week to sell their stake to Hyundai Motor. Bloomberg relates Kim Sun Gyu, a spokesman for Korea Exchange Bank, one of the investors, said the shareholders expect to decide by Jan. 7 whether to name Hyundai Motor Group as preferred bidder, and plan to sign a memorandum of understanding by Jan. 14. A final deal may be reached by mid-February, and the sale may be completed by early April, he said. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 22, 2010, Yonhap News said creditors of Hyundai E&C scrapped a takeover deal for the builder signed with Hyundai Group as the group failed to resolve suspicions over its ability to finance the deal. Hyundai Group signed a KRW5.5 trillion preliminary deal with main creditor Korea Exchange Bank (KEB) on Nov. 29 to buy a 34.88% stake in the country's top builder, beating its rival Hyundai Motor Group that had proposed to pay KRW5.1 trillion. About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into these key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. Hyundai Engineering has been under creditors' control. In August 2001, Hyundai Group was split into three -- Hyundai Motor, Hyundai Heavy Industries and one which retained the name, Hyundai Group -- while the remaining businesses were taken over by creditors. =============== M A L A Y S I A =============== NAM FATT: Appointment of Ferrier Hodgson Confirmed -------------------------------------------------- Creditors of P & N Construction Sdn. Bhd., a subsidiary of Nam Fatt Corporation Berhad, on December 31, 2010, resolved that Mr. Michael Joseph Monteiro and Mr. Heng Ji Keng of Ferrier Hodgson MH be confirmed as joint and several Liquidators for the purpose of winding up the affairs and distribution of the assets 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. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Chinese Bidder Extends Settlement to September 30 --------------------------------------------------------------- BusinessDesk reports that Natural Dairy (NZ) Holdings, the Hong Kong bidder rejected by the Overseas Investment Office for the purchase of 20 dairy farms, is extending the terms of settlement for the deal to September 30 as it seeks advice on its next move. According to BusinessDesk, the company said it continues to pursue opportunities to process New Zealand milk for products to be sold in Asia, particularly mainland China. BusinessDesk relates NDNZ Holdings said that the holiday period meant its New Zealand and Hong Kong advisers would not be considering the OIO refusal, announced December 22, until the third week of January. "It will take some time for the board to obtain advice in order to assess and evaluate the situation," NDNZ Holdings Chairman Wu Nengkun said in a statement, according to BusinessDesk. "Although the applications were declined by the ministers, the company is considering sourcing the milk and manufacturing the finished dairy products in New Zealand for export into the Asia market, including but not limited to the Greater China markets." In the meantime, says BusinessDesk, the "long stop date" in sale and purchase agreements for the farms has been extended to September 30. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 27, 2010, Stuff said Land Information Minister Maurice Williamson and Kate Wilkinson, who is acting for the finance minister Bill English, said they have declined consent NDNZ Holdings to acquire 16 Crafar farms. The decision covers the applications by Natural Dairy to acquire UBNZ Assets Holdings Limited and a retrospective application to acquire four Crafar farms which UBNZ purchased in February 2010. BusinessDesk states that NDNZ Holdings fell foul of the OIO regulations for various reasons, including the fact that its bid was fronted by May Wang, a bankrupt Chinese businesswoman and New Zealand resident, and the fact that four of the 20 farms in question were acquired prior to OIO applications being lodged. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***