/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110223.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 Wednesday, February 23, 2011, Vol. 14, No. 38 Headlines A U S T R A L I A AMBICARE: Goes Into Liquidation; 50 Workers Lose Jobs ANGUS & ROBERTSON: Administrator to Honor Cancelled Vouchers GRIFFIN COAL: Administrators Urge Creditors to Back DOCA Deal RECLAIM INDUSTRIES: Goes Into Administration REDGROUP RETAIL: May Struggle to Find Buyers for Whitcoulls REDGROUP RETAIL: Business As Usual at Borders Singapore C H I N A POWERLONG REAL: Moody's Gives Negative Outlook on 'Ba3' Rating H O N G K O N G OCMADOR ASIA: Ying and Yeung Step Down as Liquidators ORIENTAL SEA: Placed Under Voluntary Wind-Up Proceedings PACKET GENESIS: Li and Lee Step Down as Liquidators QWARUBA LIMITED: Placed Under Voluntary Wind-Up Proceedings SOCORO ENTERPRISES: Members' Final Meeting Set for March 23 SPRING WIRELESS: Tam Chun Wan Steps Down as Liquidator SSP1 GROUP: Members' Final Meeting Set for March 21 SUPER ASCENT: Members' Final Meeting Set for March 22 TOP PICTURES: Creditors' Proofs of Debt Due March 18 VINKI CORPORATION: Creditors' Meeting Set for February 25 WAI SHING: Creditors' Meeting Set for March 1 WHOLE HERO: Keung and Wai Appointed as Liquidators I N D I A AJAY POLYMERS: ICRA Assigns 'LBB-' Rating to INR15cr Limits CHAMUNDI DISTILLERIES: ICRA Cuts Rating on INR12cr Loans to 'LB' HOMERA TANNERS: ICRA Assigns 'LC' Rating to INR0.51cr Term Loans HOMERA TANNING: ICRA Assigns 'LC' Rating to INR19.82CR Loans INDUSIND BANK: Fitch Upgrades Individual Rating at 'D' JHUNJHUNWALA OIL: ICRA Revises Long-Term Rating to 'LB' KALYAN JEWELLERS: ICRA Upgrades Rating on INR0.45cr Loan to 'LBB+' KAMAL AUTO: ICRA Assigns 'LB+' Rating to INR16.5cr Bank Loans KOTESWARA RAO: ICRA Assigns 'LBB' Rating to INR89.33cr Loans REGENCY GANGANI: ICRA Assigns 'LB-' Rating to INR47.75cr Debt RICHLOOK GARMENT: ICRA Raises Rating on INR39.5cr Limits to 'LBB' ROBOSOFT TECHNOLOGIES: ICRA Cuts Rating on INR11cr Loan to 'LC' SPR GROUP: ICRA Downgrades Rating on INR8.29 Loans to 'LB+' SUBRAMANYA EDUCATION: ICRA Assigns 'LBB' Rating to INR16cr Loan SURYA CONSTRUCTION: ICRA Puts 'LB+' Rating to INR6.8cr Bank Lines VIJAY VELAVAN: ICRA Reaffirms 'LBB' Rating on INR6.6cr Term Loan ZUBERI ENGINEERING: ICRA Assigns 'LBB+' Rating to INR3cr Limits J A P A N JLOC VII: Fitch Downgrades Ratings on Class D Notes to 'Dsf' TAKEFUJI CORP: Overcharges Customers JPY2.4 Tril. in Interest TAKEFUJI CORP: Founder's Son Wins Court Battle Over Tax M A L A Y S I A HOCK SIN: Bourse to Suspend Trading of Shares on February 25 OCI BERHAD: Posts MYR1.34 Million Net Loss in Qtr Ended Dec. 2010 TRACOMA HOLDINGS: Names Dato' Ir. Dr. A. Bakar Jaafar as Chairman VTI VINTAGE: KTS Trading Serves Winding-Up Petition Against Unit N E W Z E A L A N D BRIDGECORP LTD: Petricevic Puts NZ$4.4-Mil. Mansion Up For Sale S I N G A P O R E GOLDEN AARON: Members' Final Meeting Set for March 21 HO BEE: Creditors' Proofs of Debt Due March 18 JUSTNETWORK PTE: Creditors' Proofs of Debt Due March 21 MELIADOR PTE: Court to Hear Wind-Up Petition on March 11 MEZZONI PTE: Creditors' Proofs of Debt Due March 18 S R I L A N K A SRI LANKA TELECOM: Fitch Affirms 'B+' Issuer Default Rating X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= AMBICARE: Goes Into Liquidation; 50 Workers Lose Jobs ----------------------------------------------------- Lauren Henry at Bendigo Advertiser reports that Bendigo Health has appointed an interim provider for non-emergency patient transport after Ambicare went into liquidation on Monday, Feb. 21, 2011. The Advertiser relates that all of Ambicare's 50 staff were made redundant Monday and liquidators Pitcher Partners Melbourne believe workers will receive their entitlements. According to the report, liquidator David Vasudevan said the company was placed into liquidation after a significant decrease in revenue and had no hope of recovering. "Cash flow was a huge concern for the company. We're still determining why," the Advertiser quotes Mr. Vasudevan as saying. "One major source of revenue from Ambulance Victoria fell. As a result of the drop, the company couldn't continue to trade." The Advertiser relates that Mr. Vasudevan said liquidators were trying to sell assets to other companies. Established in 1993, Ambicare -- http://www.ambicare.com.au-- provides non-emergency patient transport. Ambicare employs 50 people across sites in Bendigo, Warnambool, Geelong and Mildura, with its head office in Horsham. ANGUS & ROBERTSON: Administrator to Honor Cancelled Vouchers ------------------------------------------------------------ Chris Zappone at The Sydney Morning Herald reports that some Angus & Robertson and Borders gift cards were cancelled by third-party provider, card payment company Retail Decisions, immediately following the parent company's fall into administration. The report relates that Retail Decisions will reinstate those cards later this week. The problem did not involve all Borders and Angus & Robertson cards, according to The Sydney Morning Herald. The report notes that sources at administrator Ferrier Hodgson said the affected cards would be reactivated by the end of this week. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 21, 2011, ABC News said that Angus & Robertson and the Whitcoulls group of news agencies in New Zealand have been placed into administration by owners, REDgroup Retail. The report related that the board had serious concerns about the solvency of the company and was forced to call in administrators Ferrier Hodgson. A combination of the high Australian dollar, cheap books online, high wages and rents, as well as the retail downturn led to the company's decline, according to ABC News reports. ABC News noted that the administrators said it will be business as usual while the business's financial status is assessed ahead of the first creditors meeting, which is expected to be held in March. The report related that REDgroup's board is believed to be confident that the company can be restructured. The Sydney Morning Herald says the booksellers infuriated customers and put staff on the defensive when they relayed the administrator's demand that customers would have to spend one dollar for every dollar of gift card redeemed. The report relates that in addition to the requirement to spend one dollar for every dollar of gift card redeemed, which is described as a "goodwill gesture," Ferrier Hodgson gives gift card holders the option of registering an unsecured claim against REDgroup by emailing customer details to redgroup@fh.com.au. "Please note however that no dividend to creditors can be guaranteed and that the timing of any dividend payment is unknown," The Sydney Morning Herald quotes the administrators as saying. The first creditor meeting is likely to be held in March, according to administrators, the report adds. The first Angus & Robertson bookshop opened in Sydney in 1886. GRIFFIN COAL: Administrators Urge Creditors to Back DOCA Deal ------------------------------------------------------------- Mark Pownall at WA Business News reports that the administrators of Griffin Coal Mining Company Pty Ltd have urged creditors to back a deed of company arrangement as the best way of securing a return -- but the timing of one-third of the sale proceeds hinges on the development of a rail export route via Bunbury. WA Business relates that the administrators, in a report to creditors of Carpenter Mine Management Holdings Pty Ltd lodged on the KordaMentha Web site, said the sale of the coal assets to Lanco Infratech was dependent on the DOCA being accepted by creditors. WA Business notes that Lanco Infratech has agreed to pay AU$750 million for the coal assets, with a AU$500 million down payment, which includes about AU$19 million to cover employee entitlements and environmental requirements. According to the report, a further AU$100 million would be due within two years of the deal being accepted, or earlier if approval for a railway line from the Collie operations to Bunbury is granted. A further AU$150 million would be payable within four years, or earlier if coal is exported from Bunbury, WA Business adds. WA Business says the administrators indicated in their report that they did not believe a successful legal action could be mounted against the directors of CMMH for insolvent trading. In addition, such a move would require liquidation which would end the deal with Lanco Infratech, WA Business notes. About Griffin Coal Based in Australia, The Griffin Coal Mining Company Pty Ltd -- http://www.griffincoal.com.au/-- is engaged in coal mining and processing. Griffin Coal operates major mines in the Collie area, approximately 220 kilometers south east of Perth. The Company is producing more than three million tons of coal per year. Griffin Coal has operations at Ewington Mine, Muja Mine and Buckingham Mine. * * * As reported by the Troubled Company Reporter-Asia Pacific on January 4, 2010, Bloomberg News said Griffin Coal Mining Co. appointed Kordamentha as administrator with total debts amounting to AU$700 million. The coal supplier defaulted on an interest payment in December 2009 to bondholders owed US$475 million and also missed a payment to Australia's tax authority. RECLAIM INDUSTRIES: Goes Into Administration -------------------------------------------- James Thomson at SmartCompany reports that Reclaim Industries has been placed in the hands of administrators just seven weeks after the company told shareholders it had secured cornerstone investors who could recapitalize the company. Reclaim Industries has been struggling with losses for the last year, and while revenue grew 19% to AU$15.5 million in 2009-2010, a slowdown in the property sector and increased costs related to the set up of new processing facilities in Adelaide and Sydney further added to the company's struggles, according to SmartCompany. The report relates that the company posted a loss of AU$1.2 million in 2009-10, although this was an improvement on the previous year's AU$2.2 million loss. Reclaim Industries was placed in the hands of David Ross, Richard Albarran and Blair Pleash of accounting firm Hall Chadwick on Feb. 17. But exactly what caused the company to call in administrators is unclear, the report notes. SmartCompany adds that the administrators will hold the first meeting of creditors on March 1. Reclaim Industries is listed on the Australian Securities Exchange. It specialized in tyre recycling and the manufacturer of rubber surface products for playgrounds, the aged-care sector and sporting facilities. The company had offices around Australia and tyre processing plants in Adelaide, Sydney and Perth. REDGROUP RETAIL: May Struggle to Find Buyers for Whitcoulls ----------------------------------------------------------- William Mace at BusinessDay.co.nz reports that REDgroup Retail Pty. Ltd. could struggle to find a New Zealand buyer for its brands because Whitcoulls has already been owned by some of the biggest local investment companies over the past 20 years, a retail analyst said. "We're not talking about some pristine, young girl fresh from the countryside, [Whitcoulls is] the horse that everyone has ridden. Is there anything else that Ron Brierley, Graeme Hart, Eric Watson and PEP have all owned?," BusinessDay.co.nz quotes Tim Morris as saying. BusinessDay.co.nz relates that Mr. Morris said while he would recommend to clients the company was a good buy if debt levels were lower than under its current ownership, it was most likely to be snapped up by another private equity investment company from Australia or Asia. Meanwhile, BusinessDay.co.nz says REDgroup's 1,300 New Zealand staff at Whitcoulls, Borders and Bennetts book stores nationwide have been advised to stay on until the picture becomes clearer. After meeting representatives from the company's Australian administrator Ferrier Hodgson on Monday, BusinessDay.co.nz relates, National Distribution Union secretary Robert Reid said they couldn't yet tell him "the size of the problem." Mr. Reid said it was worth employees "hanging on" because redundancy payments and holiday pay owing could still be made if the company is sold or down-sized, according to BusinessDay.co.nz. BusinessDay.co.nz notes that liquidation would mean that employees line up alongside other secured creditors for their cut of the company proceeds. Mr. Reid, as cited by BusinessDay.co.nz, said his union acted for only 25 to 30 REDgroup workers, mainly at a distribution centre, but the administrators had indicated all employees, including those on individual rather than unionised contracts, had "four plus two" redundancy provisions. In the event of any redundancies this would give employees four weeks pay for their first year of work and two weeks for every year after that, BusinessDay.co.nz discloses. However, under New Zealand insolvency legislation any entitlements are limited to NZ$18,700 per person, BusinessDay.co.nz notes. BusinessDay.co.nz adds that the union would attend a creditor's meeting on behalf of its members in Auckland on March 1. Administrators' Fee Radio New Zealand reports that the National Distribution Union, a union representing workers at Whitcoulls, said staff will be very surprised by the fees being charged by the company's administrators. Radio New Zealand says Ferrier Hodgson's list of fees, which the REDgroup's creditors are asked to approve, range between NZ$205 an hour for a junior or filing assistant and NZ$827 for a partner. The union said it is ironic administrators are paid huge fees to save a broken company. About REDgroup Retail REDgroup Retail Pty, with 260 stores and brands including Angus & Robertson and Whitcoulls, is the largest book retailer in Australia and New Zealand. It acquired Borders stores in Australia, New Zealand and Singapore in 2008. REDgroup Retail Pty. Ltd. on Feb. 17, 2011, named Ferrier Hodgson as voluntary administrators. The appointment comes less than a day after Borders Group Inc. filed for bankruptcy in the U.S. and began taking bids for 200 stores, according to Bloomberg News. The REDgroup companies in Administration include: * REDgroup Retail Pty Ltd * Spine Holdco Pty Ltd * A&R Australia Holdings Pty Ltd * REDgroup Retail Administrative Services Pty Ltd * Whitcoulls Group Holdings Pty Ltd * Spine Newco Pty Ltd * Angus & Robertson Pty Ltd * Angus & Robertson Bookworld * Calendar Club Pty Ltd * WGL Retail Holdings Ltd * Whitcoulls Group Ltd * Calendar Club New Zealand Ltd * Borders New Zealand Ltd * REDgroup Online Ltd Ferrier Hodgson partner Steve Sherman said as far as possible it would be business as usual while the Administrators conduct an urgent assessment of the business's financial status and prepare for the first meeting of creditors. During this period he called for regular Angus & Robertson, Borders and Whitcoulls customers to continue supporting their local outlets. REDGROUP RETAIL: Business As Usual at Borders Singapore ------------------------------------------------------- The Strait Times reports that it is officially business as usual for Borders Singapore even though its Australian parent company, REDgroup Retail Pty, has gone bust. According to the Strait Times, the group's spokesmen said while debt-ridden REDgroup Retail's businesses in Australia and New Zealand are under financial scrutiny and belt-tightening measures, Singapore operations are unaffected. "REDgroup can confirm that Borders Singapore and Supanews Singapore have not been placed into voluntary administration. It is currently business as usual at Borders Singapore," said a statement on Monday from REDgroup Retail, referring to both its book-selling business and news agency in Singapore, according to the Strait Times. The Singapore store's current status was confirmed by Steve Sherman, a partner at recovery firm Ferrier Hodgson, which now controls REDgroup Retail's assets and is helping it find ways to pay creditors. About REDgroup Retail REDgroup Retail Pty, with 260 stores and brands including Angus & Robertson and Whitcoulls, is the largest book retailer in Australia and New Zealand. It acquired Borders stores in Australia, New Zealand and Singapore in 2008. REDgroup Retail Pty. Ltd. on Feb. 17, 2011, named Ferrier Hodgson as voluntary administrators. The appointment comes less than a day after Borders Group Inc. filed for bankruptcy in the U.S. and began taking bids for 200 stores, according to Bloomberg News. The REDgroup companies in Administration include: * REDgroup Retail Pty Ltd * Spine Holdco Pty Ltd * A&R Australia Holdings Pty Ltd * REDgroup Retail Administrative Services Pty Ltd * Whitcoulls Group Holdings Pty Ltd * Spine Newco Pty Ltd * Angus & Robertson Pty Ltd * Angus & Robertson Bookworld * Calendar Club Pty Ltd * WGL Retail Holdings Ltd * Whitcoulls Group Ltd * Calendar Club New Zealand Ltd * Borders New Zealand Ltd * REDgroup Online Ltd Ferrier Hodgson partner Steve Sherman said as far as possible it would be business as usual while the Administrators conduct an urgent assessment of the business's financial status and prepare for the first meeting of creditors. During this period he called for regular Angus & Robertson, Borders and Whitcoulls customers to continue supporting their local outlets. ========= C H I N A ========= POWERLONG REAL: Moody's Gives Negative Outlook on 'Ba3' Rating -------------------------------------------------------------- Moody's Investors Service has changed to negative from stable its outlook on Powerlong Real Estate Holding's Ba3 corporate family and B1 senior unsecured bond ratings. Powerlong's Ba3 corporate family and B1 senior unsecured bond ratings themselves have been affirmed. "The change in outlook has been prompted by Powerlong's higher- than-expected land acquisition, of close to RMB4 billion in 2010, which adds pressure to its liquidity," says Kai Hu, a Moody's Vice President. "Powerlong plans to fund such land acquisitions (RMB2.4 billion land premium unpaid as of the end of 2010) and future expansion with more debt, meaning that its debt leverage will be higher than Moody's expectation of around 35%-45% for its current rating," says Hu. "The negative outlook also takes into account the greater execution risks arising from (1) Powerlong's expansion into higher-tier markets such as Hangzhou and Tianjin, where it will encounter more competition from established players, as well as (2) tightened property purchase restrictions imposed by the government in these cities," adds Hu. Powerlong's Ba3 rating continues to reflect (1) the company's niche business model -- a balanced mix of large-scale integrated residential and commercial properties in diversified second- and lower-tier cities; (2) its portfolio of major domestic and international anchor tenants; and (3) its ability to maintain a moderately high EBITDA margin of 30%-40% The outlook could return to stable if Powerlong can (1) substantially achieve its sales targets; (2) maintain adjusted debt/total capitalization at 35%-45% on a sustained basis; and (3) maintain sound liquidity position and minimum cash balance of RMB 1.5-2 billion. Powerlong's ratings could be pressured downward if (1) sales fall below expectations; (2) the company makes any further aggressive land acquisitions; (3) liquidity deteriorates further due to either fast growth or tight headroom in financial covenants; or (4) the portfolio rental income and the market value of its investment properties drops sharply. The key credit metrics that Moody's would consider for a rating downgrade include adjusted debt/capitalization staying above 50% and EBITDA/interest falling below 3-4x for a prolonged period Moody's last rating action on Powerlong was taken on Oct. 4, 2010, when Moody's assigned a definitive B1 senior unsecured bond rating on its US$200 million 13.75% notes due 2015. Powerlong Real Estate Holdings Limited is a Chinese developer that builds residential and commercial properties in second- and lower- tier cities in China. It currently has a development land bank of around 6.33 million sqm in gross floor area in 15 cities. It also has seven completed investment properties for leasing. ================ H O N G K O N G ================ OCMADOR ASIA: Ying and Yeung Step Down as Liquidators ----------------------------------------------------- Ying Hing Chiu and Yeung Betty Yuen stepped down as liquidators of Ocmador Asia Management Limited on Feb. 9, 2011. ORIENTAL SEA: Placed Under Voluntary Wind-Up Proceedings -------------------------------------------------------- At an extraordinary general meeting held on Feb. 2, 2011, creditors of Oriental Sea Trade Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Lai Chi Kin Suite 1306, 13/F ING Tower, 308 Des Voeux Road Central, Hong Kong PACKET GENESIS: Li and Lee Step Down as Liquidators --------------------------------------------------- Li Wai See and Lee Mei Yiu stepped down as liquidators of Packet Genesis Limited on Feb. 16, 2011. QWARUBA LIMITED: Placed Under Voluntary Wind-Up Proceedings ----------------------------------------------------------- At an extraordinary general meeting held on Feb. 9, 2011, creditors of Qwaruba Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Wong Sun Keung Unit 2, 20/F Far East Consortium Building 121 Des Voeux Road Central, Hong Kong SOCORO ENTERPRISES: Members' Final Meeting Set for March 23 ----------------------------------------------------------- Members of Socoro Enterprises Limited will hold their final general meeting on March 23, 2011, at 10:00 a.m., at 4304, 43/F, China Resources Building, 26 Harbour Road, Wanchai, in Hong Kong. At the meeting, Heng Poi Cher and Jennifer Tan, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SPRING WIRELESS: Tam Chun Wan Steps Down as Liquidator ------------------------------------------------------ Tam Chun Wan stepped down as liquidator of Spring Wireless Asia Pacific Limited on Feb. 18, 2011. SSP1 GROUP: Members' Final Meeting Set for March 21 --------------------------------------------------- Members of SSP1 Group Limited will hold their final general meeting on March 21, 2011, at 10:00 a.m., at 13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, in Hong Kong. At the meeting, Liu Chi Lai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SUPER ASCENT: Members' Final Meeting Set for March 22 ----------------------------------------------------- Members of Super Ascent Development Limited will hold their final meeting on March 22, 2011, at 2:00 p.m., at Room 1212, Wing Lung Bank Centre, 636 Nathan Road, Mongkok, Kowloon, in Hong Kong. At the meeting, Chan Chiu Yin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TOP PICTURES: Creditors' Proofs of Debt Due March 18 ---------------------------------------------------- Creditors of Top Pictures Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidators are: Mak Kong Fan Tse Tak Ming Room 104, 1/F Hing Yip Commercial Centre 272-284 Des Voeux Road Central, Hong Kong VINKI CORPORATION: Creditors' Meeting Set for February 25 --------------------------------------------------------- Creditors of Vinki Corporation Limited will hold their meeting on Feb. 25, 2011, at 11:30 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 255A and 283 of the Companies Ordinance. The meeting will be held at 43rd Floor, The Lee Gardens, 33 Hysan Avenue Causeway Bay, in Hong Kong. WAI SHING: Creditors' Meeting Set for March 1 --------------------------------------------- Creditors of Wai Shing Plastic Toys Limited will hold their meeting on March 1, 2011, at 9:30 a.m., for the purposes provided for in Sections 241, 242, 243, 244 and 255A of the Companies Ordinance. The meeting will be held at Room 103, Duke of Windsor Social Service Building, 15 Hennessy Road, Wan Chai, in Hong Kong. WHOLE HERO: Keung and Wai Appointed as Liquidators -------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai on Jan. 28, 2011, were appointed as liquidators of Whole Hero Limited. The liquidators may be reached at: Stephen Liu Yiu Keung David Yen Ching Wai 62/F., One Island East 18 Westlands Road Island East, Hong Kong ========= I N D I A ========= AJAY POLYMERS: ICRA Assigns 'LBB-' Rating to INR15cr Limits ----------------------------------------------------------- ICRA has assigned an 'LBB-' rating on the long term scale and an A4 rating on the short term scale to the INR15.0 crore bank limits of Ajay Polymers. The long term rating has been assigned a Stable outlook. The ratings are constrained by the weak financial profile of the Firm as reflected in its stressed credit metrics; average profitability and high working capital intensity; the high competitive intensity in the PVC pipes business; the relatively modest scale and regional concentration of the Firm's operations; vulnerability of profitability to variations in price of main raw material PVC resin which is a crude oil derivative apart from risks inherent in partnership form of business. Nevertheless while assigning the ratings ICRA has favorably considered the promoters significant experience in the PVC pipes business; the Firm's well established brand and presence in the main region of operations and the favorable demand outlook for PVC pipes and related products. About Ajay Polymers Ajay Polymers is engaged in the manufacture of unplasticised polyvinylchloride (PVC) pipes, fittings and other accessories which are sold under the brand name Ravindra mainly in the north and western parts of the country. Ajay Polymers is constituted as a partnership firm and was promoted by Mr. Ashwani Kumar Garg in 2003. Mr. Garg holds 50% stake in Ajay Polymers while the other 50% is held by his brother in law, Mr. Sanjeev Kumar Mittal. Both the partners have considerable experience in the pipes business having been engaged in trading of PVC and MS pipes in the region for more than three decades. The Firm's sole manufacturing unit is located at Hisar in Haryana which is considered the hub of the pipe industry in the state. Currently Ajay Polymers operates 13 extruders for PVC pipes with a cumulative capacity of 22,000 MTPA. The Firm also entered the PVC fittings business, which is complementary to the pipes business in FY 09, and has 4 injection mouldings at present producing over 180 types of accessories and fittings. Recent Results In 2009-10, the Firm reported an operating income (OI) of INR74 crore with a profit after tax (PAT) of INR1.44 crore compared to an OI of INR67 crore and a PAT of INR0.89 crore in 2008-09. In 9M 2010-11, as per unaudited provisional results, the Firm has reported an OI of INR64 crore with a PAT of INR1 crore. CHAMUNDI DISTILLERIES: ICRA Cuts Rating on INR12cr Loans to 'LB' ---------------------------------------------------------------- ICRA has revised the long-term rating to the INR12 crore fund based limits of Chamundi Distilleries Private Limited from 'LBB-' to 'LB'. The rating action factors in the deterioration in its financial profile in FY 2010 as reflected in a deterioration in its capital structure and coverage indicators which coupled with stretched liquidity conditions for the company have resulted in delays in debt repayments. ICRA's rating also factors in the vulnerability of the company's operating and financial performance to availability and pricing of the key raw material (molasses), which in turn is related to the sugar cycle. The rating also factors in low net profitability of the company which has resulting in negligible internal accruals in the past and this situation is unlikely to change significantly in the medium term. However, the rating draws comfort from the long operating history of the company with significant experience of the promoters in this segment and integration of group's operations. About Chamundi Distilleries Chamundi Distilleries Private Limited was established in 1995 by Gowda Group, which also has presence in other related business like Indian Made Foreign Liquor (IMFL) and sugar. Earlier the company was also engaged in arrack (country liquor) business; post the ban on arrack in Karnataka in Jul-07, company shifted its focus to distillery segment. CDPL established a distillery plant at Bangalore, Karnataka with capacity of 27 KLPD per day which has now been expanded to 54 KLPD. Chamundi Distilleries Private Limited has a molasses based distillery unit with distillation capacity of 54 KLPD of ENA. The capacity is increased the capacity from 27 KLPD to 54 KLPD with a total project cost of around INR15 crore. CDPL sells most of its production to its parent company (SPR Group Holding private Limited) which is engaged in IMFL production. On the strength of forward integration, CDPL's capacity utilization of distillery unit has been comfortable at 80-90% during 2005-06 to 2007-08. However, capacity utilization suffered in the last few years as plant was shut down due to expansion activity. Recent Results CDPL reported a net profit of INR 0.86 crore on operating income of INR 10.85 crore in FY2010, as against corresponding figures of net loss of INR 0.93 crore and INR 8.30 crore in FY2009. In H1 2010-11 (provisional), CDPL reported PAT of INR 0.36 crore on operating income of INR 16.62 crore. HOMERA TANNERS: ICRA Assigns 'LC' Rating to INR0.51cr Term Loans ---------------------------------------------------------------- ICRA has assigned the long-term rating of 'LC' to the INR0.51 crore Term Loans and INR6.50 crore fund based facilities of Homera Tanners Private Limited. ICRA has also assigned the short-term rating of 'A5' to the INR2.00 crore non-fund based facilities of HTPL. The ratings factors in the liquidity constraints experienced by the company as exhibited by delays in meeting its debt servicing obligations and steady increase in the payable days over the years. This apart, the ratings also factor in the susceptibility to HTPL's profitability to foreign exchange rate fluctuations, its weak financial profile with cash losses reported in FY 2010 and its negative networth. The ratings, however, draw comfort from the long track record of the promoters in the leather industry About Homera Tanners Homera Tanners Private Limited is a manufacturer and exporter of finished leather and split. The company was incorporated in 2006 as a private limited company. Homera Tanners Private Limited is promoted by Mr. Rizwan Ullah and his family. Mr. Rizwan Ullah has a long track record in the leather business and has been engaged in the leather business since more than four decades. In HTPL, Mr. Rizwan Ullah is the Managing Director; his family members are among other Directors in the company and are involved in the in the day to day management of the company. The company has its manufacturing facility at Kanpur, Uttar Pradesh. Recent Results The company reported an operating income (OI) of INR25.15 crore in FY 2010. However, owing to increasing interest cost and exchange rate losses, the company reported a net loss of INR0.24 crore. HOMERA TANNING: ICRA Assigns 'LC' Rating to INR19.82CR Loans ------------------------------------------------------------ ICRA has assigned the long-term rating of 'LC' to the INR19.82 crore fund based facilities of Homera Tanning Industries Private Limited. ICRA has also assigned the short-term rating of 'A5' to the INR6.00 crore non-fund based facilities of HTIPL. The ratings factor in the liquidity constraints witnessed by the company as exhibited by delays in meeting its debt servicing obligations and increase in payable days over the years. The ratings also factor in the susceptibility to HTIPL's profitability to foreign exchange rate fluctuations and its weak financial profile with a net margin of -8.2% in FY 2010. Moreover, the ratings are constrained by its leveraged capital structure (gearing of 4.41 times as on March 31, 2010) and its weak debt coverage indictors. The rating, however, draws comfort from the long track record of the promoters in the leather industry. About Homera Tanning Homera Tanning Industries Private Limited is a manufacturer and exporter of finished leather and shoe upper pair. The company was incorporated in 1987 as a private limited company. Homera Tanning Industries Private Limited is promoted by Mr. Rizwan Ullah and his family. Mr. Rizwan Ullah has a long track record in the leather business and has been engaged in the leather business since more than four decades. Mr. Rizwan Ullah is the Managing Director of the company; his family members are among other Directors in the company and are involved in the in the day to day management of the company. The manufacturing facility of the company is located at Kanpur, Uttar Pradesh. Recent Results The company reported an operating income (OI) of INR43.70 crore as on March 31, 2010. However, owing to increasing interest costs and exchange rate losses the company reported a net loss of INR3.59 crore, resulting in a net margin of -8.2%. INDUSIND BANK: Fitch Upgrades Individual Rating at 'D' ------------------------------------------------------ Fitch Ratings has upgraded India's Indusind Bank Ltd's National Long-Term Rating to 'AA-(ind)' from 'A+(ind)' with a Stable Outlook, and its National Short-Term Rating to 'F1+(ind)' from 'F1(ind)'. The agency has also affirmed IBL's Individual Rating at 'D' and Support Rating at '5'. A list of all rated instruments is given at the end of this release. The upgrade in IBL's National LT Rating reflects its strong capitalization, proven track record of asset quality management, and profitability that is driven by its strong fees income profile and above systemic average interest margins. Fitch expects the bank's funding to benefit from a rapid expansion of its branch network over the next three to five years. This will enable IBL to garner more retail deposits, which will partly off-set its relatively greater reliance on less sticky wholesale deposits. IBL's Support Rating factors in its small size and deposit base (less than 1% of banking system deposits) due to which support to government banks and larger private banks would gain precedence. IBL's net interest margins are above the banking system average of around 2.5%, and improved to 3.89% (annualized) over the nine months ended 31 December 2011 (9MFY11) on account of the bank's renewed focus on its high-yielding consumer finance segment (41% of gross loans at 9MFY11), which includes commercial vehicle loans, auto loans and equipment finance loans. High yields from the consumer finance segment allowed the bank to increase its yields on loans by a greater quantum compared to cost of deposits. IBL's profitability was also aided by its strong fees income profile (30% of operating income at 9MFY11), as the bank seeks to expand and strengthen its investment advisory and insurance distribution network. Profitability would remain under pressure over the near to medium term, as IBL is vulnerable to rising interest rate environment due to its reliance on large-ticket bulk deposits. This would be mitigated by IBL's asset liability mix, which would allow the bank to transmit increased deposit costs to its loan segment. In addition, its branch expansion plans would necessitate greater operating expense, which would prevent any substantial reduction in its moderately high cost to income ratio (9MFY11: 48.5%). IBL's gross NPL ratio declined in 9MFY11 to 1.22% (FY10: 1.62%) on account of the denominator effect of high loan growth (9MFY11: 29%) and low fresh slippages. IBL's asset quality benefits from its proven track record of managing the riskier consumer finance segment. That said, the asset quality may deteriorate over the medium term, as the bank plans to expand its loan book in newer segments like mortgage loans, small industry loans among others. The bank's mortgage loan segment will be sufficiently collateralized. IBL's NPL provision coverage ratio (excluding technical write-offs) was 70.27% at 9MFY11 which is above the regulatory minimum of 70%. IBL received INR11.7bn of equity capital, which enabled it to increase its Tier 1 ratio to 11.67% at 9MFY11 (FY10: 9.65%). The bank's entire Tier 1 capital consists of core equity, and it has ample scope to raise fresh common equity along with Tier 2 capital from the markets. IBL's capital adequacy ratio was 15.6% at 9MFY11. IBL's funding profile is oriented towards large-ticket bulk deposits due to its limited branch network. Although the share of low-cost, stable current and savings account deposits is increasing in the funding mix (CASA for 9MFY11: 26.8%, FY10: 23.7%), large-ticket bulk deposits still contribute over 30% to IBL's total liabilities and funding, which is above the systemic average levels of 9%-10%. That said, the bank's relatively weak albeit improving funding profile is mitigated by the diversification of its corporate deposit base and availability of refinance lines of around INR20bn from financial institutions like National Housing Bank ('AAA(ind)'/Stable), National Bank For Agriculture and Rural Development ('BBB-'/Stable) and Small Industries Development Bank of India ('BBB-'/Stable) . IBL'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". IBL: - INR4.85bn lower Tier 2 subordinated debt: upgraded to 'AA- (ind)' from 'A+(ind)'; and - INR 3.08bn upper Tier 2 subordinated debt; upgraded to 'A(ind)' from 'A-(ind)'. JHUNJHUNWALA OIL: ICRA Revises Long-Term Rating to 'LB' ------------------------------------------------------- ICRA has revised the long term rating assigned to the bank limits of Jhunjhunwala Oil Mills Limited to 'LB' from 'LBB' earlier and reaffirmed the short term rating at A4 for a total amount of INR9.55 crore. The rating revision primarily reflects the unsatisfactory debt servicing track record of the company with delays in repayment of term loan installments due to liquidity constraints and cash flow mismatches. The ratings also reflect the inherently low profit margins, the high competitive intensity and fragmentation in the edible oils industry; exposure to agro-climatic risks; vulnerability of profitability of domestic players to import threat, volatility in global edible oil prices and narrowing of duty differential between crude and refined oils besides the company's weak financial profile as reflected in its high gearing levels and tightness in liquidity. ICRA also notes that the company is in the midst of a relatively large scale capex programme for setting up a rice mill and has further plans to undertake moderate scale capacity expansion projects, which would keep its cash flows and return indicators subdued over the near to medium term. Nevertheless, ICRA favorably factors in the considerable experience of JOML's promoters in the edible oils business; the company's manufacturing facilities being well integrated thereby allowing presence across the value chain; the overall favorable demand prospects for rice bran oil and cattle feed, the company's main products and upside potential to its business from the ongoing rice mill project. About Jhunjhunwala Oil Jhunjhunwala Oil Mills Limited is engaged in the manufacture of edible oil (mainly rice bran oil) and cattle feed. The company's integrated manufacturing facilities are located in Varanasi, Uttar Pradesh and include a solvent extraction plant (250 tpd), refinery (75 tpd) and a cattle feed unit (200 tpd). JOML is a closely held company with 100% ownership of the promoter, Mr. V.N. Jhunjhunwala and his family and friends. The promoter family holds considerable experience in the edible oil business having been present in it for almost two decades. The company is diversifying into rice milling and is setting up a 8 tph (48,000 MTPA) plant in Bihar Recent Results In 2009-10, the Company reported an operating income (OI) of INR96 crore with a profit after tax (PAT) of INR1.35 crore compared to an OI of INR72 crore and a PAT of INR1.02 crore in 2008-09. In 9M 2010-11, as per unaudited provisional results, the Company has reported an OI of INR83 crore with a PAT of INR1.52 crore. KALYAN JEWELLERS: ICRA Upgrades Rating on INR0.45cr Loan to 'LBB+' ------------------------------------------------------------------ ICRA has upgraded the rating assigned to the INR0.45 crore term loans and the INR12.0 crore fund based facilities of Kalyan Jewellers Madurai from 'LBB+' to 'LBBB-'. The outlook on the rating is stable. The upgrade in rating reflects the established market position of Kalyan group in the jewellery retail market of Kerala and Tamil Nadu market; effective sourcing mechanism and integrated nature of operations leading to cost advantages and strong brand loyalty, improving product portfolio, widening geographical reach and marketing initiatives leading to robust volume growth. The rating also factors in the improvement in financial profile of the group with increasing scale of operations and improvement in profitability. The rating is however constrained by the stretched capital structure of the group, thin profit margins on account of low value addition in the business and heavy competition in a fragmented industry, and strained liquidity position due to the high working capital intensive nature of operations. With significant expansions envisaged by the group, the capital structure is expected to remain stretched in the medium term. Nevertheless, these risks are mitigated to an extent by the leading competitive position of the group in its key markets and improving product and geographical diversification which is expected to support strong revenue growth and aid expansion in profit margins of the group. For arriving at the rating, ICRA has taken a consolidated view of all the entities in the group, on account of the strong operational and financial linkages between the various entities in the Kalyan group. Also these entities are expected to be merged in the medium term, though the exact terms of the merger is yet to be finalized. About Kalyan Group The jewellery business of the Kalyan group is organized under seven entities, with five being partnership firms and the remaining two being private limited companies; the group has 21 showrooms under it spread across Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. KJM has only one showroom under it. Going forward, all the new showrooms commenced by the group would be under either of the private limited companies existing in the group. Also the partnership entities in the group are expected to be merged with the two limited companies, where the entity to be merged and exact nature of merger is yet to be finalized. KAMAL AUTO: ICRA Assigns 'LB+' Rating to INR16.5cr Bank Loans ------------------------------------------------------------- ICRA has assigned the long term rating of 'LB+' to INR16.5 Crore facilities and INR1.46 Crore unallocated facilities of Kamal Auto Industries Coach Works Private Limited. ICRA has also assigned the short term rating of 'A4' to INR2.04 Crore non fund based bank facilities of KAICWPL. The assigned ratings factor in the company's limited revenue streams and highly leveraged capital structure with a term debt of INR12.8 Crore on its books as on Nov'10 and a corporate guarantee towards group company (Kamal Auto Industries). While the debt obligations remain significant in proportion to the net worth, the revenue growth potential remains modest. While the ratings derive comfort from the assured rental income from Bharti Walmart, ability of the business to generate adequate accruals remains to be seen. Recent Results KAICWPL reported revenues of INR0.61 Crore and Profit before Tax of INR0.45 Crore in the period from April to November 2010. About Kamal Auto Kamal Auto Industries Coach Works Private Limited was set up in 1979. The company is engaged in fabrication, manufacturing of coaches and rental business. KOTESWARA RAO: ICRA Assigns 'LBB' Rating to INR89.33cr Loans ------------------------------------------------------------ ICRA has assigned 'LBB' rating to INR89.83 crores fund based and INR1.94 crore non fund based facilities of Sri Nukala Rama Koteswara Rao Textiles Private Limited. ICRA also has assigned 'A4' to INR1.20 crore non fund based sublimit of SNRKRTPL. The outlook on the long-term rating is Stable. The ratings assigned by ICRA reflect SNRKRTPL's relatively moderate scale of operations, lack of financial flexibility characterised by a highly leveraged capital structure and the fragmented nature of the spinning industry which restrict SNRKRTPL's pricing flexibility. The ratings, however, draw comfort from the experience of the promoters in the cotton trading and ginning business, proximity of SNRKRTPL's spinning unit to cotton growing areas of the Guntur district of Andhra Pradesh (AP), its integrated operations through group company, improved demand outlook for yarn and derived products and the advantages of fiscal benefits such as interest and power subsidy received by the company. Going forward, the ability of the company to bring down its high gearing and increase its operating margin will be a key sensitivity for the ratings. Sri Nukala Rama Koteswara Rao Textiles Pvt Ltd. was incorporated by Mr. Sri Nukala Rama Kotweswara Rao in Guntur and was engaged in Cotton ginning and trading initially. After his death in 1999 his son Mr. Nukala Venkata Venu Gopala Rao took over the business and started expanding by establishing two spinning mills at Rajahmundry and Guntur. The total spindle capacity as on March 31, 2010, was 41,760 spindles and the same is expected to be 53,280 spindles by the end of current financial year. Sri Jagadambica Cotton Company and Arulmigu Siva Sakthi Spinning Mills Private Ltd are the sister companies. REGENCY GANGANI: ICRA Assigns 'LB-' Rating to INR47.75cr Debt ------------------------------------------------------------- ICRA has assigned a rating of 'LB-' to the INR47.75 crore long term debt programme of Regency Gangani Energy Private Limited. ICRA's non investment grade rating of RGEPL factors in the fact that the company is still in a project stage and thus exposed to risks that are associated with projects under construction including risks of time overruns in construction (which in turn can lead to cost overruns) and non-timely stabilization of operations. The project has in fact already been delayed by one year, which also led to cost escalation by almost INR 6 crores, and this necessitated a restructuring of the term loans extended to the company wef April 2010 and also some delays in interest payments. Further, around INR8 crores of term loans (mainly for funding cost overruns) are yet to be sanctioned which exposes the project to funding risks. The high financial risk profile also factors in hydrological risks as RGEPL is not covered under deemed generation clause in case of factors like shortage of water or loss of generation due to silting. Given that the revenues of the company are linked to actual unit sales, this exposes the company to risks of variable cashflows. The rating however draws comfort from the fact that the project is nearing completion, which limits the likelihood of any further time and cost escalations. The rating also draws comfort from the firm off take arrangement with UPCL for tenure of 25 years, limited demand risks due to significant energy deficit in northern India, adequate tariff levels declared by the UERC and eligibility of the project under Ministry of New and Renewable Energy for receipt of capital subsidy. Further, the project is exempt from providing free power to the state government for a period of 12 years. Going forward, the ability of the company to complete the project with minimal cost and time overruns, meet the designed performance parameters, availability of adequate water in the catchment area and timely repayment of its debt obligations will be key rating drivers. About Regency Gangani RGEPL is an Independent Power producer (IPP) promoted by the Regency group to develop, own and operate a 9.5 MW small hydro power (SHP) project (referred to as Gangani) in Uttarkashi District of Uttaranchal. The Regency group, which is based in Paonta Sahib, HP, commenced operations by setting up a calcium carbide manufacturing unit in a company called Regency Carbide Limited (RCL). Subsequently, the company diversified into power generation mainly for meeting the captive power requirement of RCL. Thereafter they commissioned a number of other units as well. RICHLOOK GARMENT: ICRA Raises Rating on INR39.5cr Limits to 'LBB' ----------------------------------------------------------------- ICRA has upgraded the long-term rating of Richlook Garment Private Limited from 'LBB' to 'LBB+' for the INR39.5 crore fund based limits. ICRA has reaffirmed the stable outlook to the long term rating. The rating upgrade reflects favorably on growth in RGPL's operating revenues backed by strong volume growth, improved operating margins despite rising input prices, both demonstrating the ability to sustain the increased operating scale acquired in FY09. The rating also takes into account the fact that the company has consolidated its operating position by shutting down non performing franchisees and started focusing on company owned store format which gives it better control over operations. This is also reflected in the revenue growth across company owned stores. Further, since the last rating exercise company has revised its plan to expand its retail network in a conservative and calibrated manner. This move is likely to result in lower than anticipated stress on RGPL's financial risk profile. However the rating continues to be constrained by high working capital intensive nature of business, geographical concentration risks arising out presence in few states and moderate debt protection indicators. Further, the rating also takes into account that company's plan to increase manufacturing capacities has been deferred. Given that the company is foraying into wholesale garment trading which is a high volume business, the company could become excessively dependent on sub contractors, thereby possibly eroding its operational advantages and inhibiting its cost structure. About Ricklook Garments Richlook Garments Private Limited is engaged in the manufacturing and retailing of men's garments, and accessories. At present, the company has 77 outlets across 9 states. The company has also recently forayed into women's wear segment which mainly includes formal western wear. The company carries out manufacturing through its two units based in New Delhi which have an annual installed capacity of 500,000 shirts and 350,000 trousers. The company is also planning to set up new capacities in Kundli and Barhi, Haryana for which it has bought land. Recent Results In the nine months ended December 31, 2010, the company registered revenues of INR45.0 cr, 7% higher than the corresponding period in preceding year. ROBOSOFT TECHNOLOGIES: ICRA Cuts Rating on INR11cr Loan to 'LC' --------------------------------------------------------------- ICRA has revised the long-term rating assigned to the INR11 crore term loans (reduced from INR18.70 crore) of Robosoft Technologies Private Limited from LB- to LC. ICRA has also revised the short term ratings assigned to the INR 7.30 crore fund based and non- fund based facilities (enhanced from INR6.30 crore) of the company from A4 to A5. The revision in ratings reflects RTPL's continuing delays in servicing its debt obligations owing to its stretched liquidity position and its significant debt repayment obligations. ICRA notes that an improvement in the liquidity profile backed by a stronger operational performance in the medium term would be critical for the company to regularize its debt servicing and improve its credit profile. The ratings, however, favorably consider the company's established track record in the niche Macintosh platform and the growth prospects arising from introduction of ERP products developed recently by the company. About Robosoft Technologies Robosoft Technologies Private Limited, promoted as a proprietorship firm in 1996 at Udupi, Karnataka, by Mr. Rohith Bhat and subsequently incorporated as a private limited company in 2005, is primarily into the business of development of software applications for Mac OS platform. RTPL has a team of around 300 software professionals working for the company. The company offers its products/services through four business divisions, viz., software services, software utilities, gaming products, and enterprise applications. The software services segment is the largest business segment in the company accounting for around 90% of net sales in 2009-10. SPR GROUP: ICRA Downgrades Rating on INR8.29 Loans to 'LB+' ----------------------------------------------------------- ICRA has revised the long-term rating to the INR8.29 crore term loans and INR 51.50 crore fund based limits of SPR Group Holdings Private Limited from 'LBB-' to 'LB+'. ICRA has also assigned the rating of 'LB+' to INR5.0 Crore fresh long term loans. ICRA has retained the short-term rating to the INR2.50 crore Non Fund based limits at A4. The rating action factors in the deterioration in its financial profile in FY 2010 as reflected in low profitability and cash accruals, stretched liquidity and deterioration in its capitalization and coverage indicators. ICRA has also factored in the drop in the operating income of the company in FY2010, geographical concentration risks associated with the company's operations in a single state namely Karnataka, the intensely competitive nature of low profile Indian Made Foreign Liquor (IMFL) industry and its vulnerability to raw material price movements (especially molasses) while revising the long- term rating. However, ICRA has drawn some comfort from the long track record of the promoters in the liquor industry and backward integration of the group's operations. About SPR Group SPR Group Holdings Private Limited was established in 1991 by Gowda Group, which also has presence in other related business like distillery and sugar. Earlier the company was mainly engaged in arrack (country liquor) business; post the ban on arrack in Karnataka in Jul-07, company shifted its focus to IMFL. SGHPL has established a bottling plant at Bangalore, Karnataka with capacity of 20000 cases per day. SPR Group Holdings Private Limited (SGHPL) is involved in the production and sale of IMFL primarily to Karnataka State Breweries Corporation Limited (state agency, channelizing agency for liquor products in Karnataka). SGHPL operates in an intensely competitive low profile IMFL segment (less expensive); end consumers in this segment are price sensitive and do not have brand/taste preference. Within IMFL segment, SGHPL has presence in whisky, brandy, rum and gin. The company's operations are concentrated in Karnataka along with small proportion of production being sold to other states through Canteen Store Department, Ministry of Defense (CSD). SGHPL reported a PAT of INR0.59 crore on operating income of INR78.62 crore in FY2010, as against corresponding figures of INR0.21 crore and INR102.33 crore in FY2009. In H1 2010-11 (provisional), SGHPL reported PAT of INR0.17 crore on operating income of INR65.33 crore. SUBRAMANYA EDUCATION: ICRA Assigns 'LBB' Rating to INR16cr Loan --------------------------------------------------------------- ICRA has assigned a long term rating of 'LBB' to the INR16.0 crore bank facilities of Subramanya Education Society. The outlook on the long term rating is stable. The rating takes into account aggressive growth plans of the society which will increase its debt burden and consequently stretch its financial risk profile. The rating also takes into consideration, SES's moderate scale of operations and growing competition from new colleges coming up in Bangalore which may affect its occupancy levels and consequently its profitability. The rating however draws comfort from society's established presence in Bangalore with more than four decades of operations and its diverse presence across the education spectrum by offering varied PUC, undergraduate & post graduate courses. The subramanya education society was incorporated on July 15, 1962. The society was established by Late Mr. C.M Nagaraj who was an acknowledged educationist and also served as the Mayor of Bangalore in the period 2002-2003. The society started a school in Subramanya Nagar in Bangalore and within a short span of time, the school became famous. Subsequently, the society established a management school under East West Institute of Management & Science ( EWIMS) which offered programs like MBA, MCA, B.Sc & Nursing. In the year 2000, the society started the East West Institute of Technology (EWIT) which has its campus located in Anjananagar, Off Magadi Road in Bangalore. The society is currently running 12 educational institutes which offer courses across the education spectrum such as engineering, MBA, MCA, nursing, B.Ed, D.Ed, pharmacy & PUC. Moet of these courses are running at the campus located off Magadi Road in Anjananagar in Bangalore. Recent Results SES earned a PAT of INR10.72 Cr on an operating income of INR21.35 Cr in FY 2009-10. SURYA CONSTRUCTION: ICRA Puts 'LB+' Rating to INR6.8cr Bank Lines ----------------------------------------------------------------- ICRA has assigned a long-term rating of 'LB+' to the INR6.80 crore bank lines of Surya Construction Company. The rating takes into account SCC's moderate profitability, its relatively high gearing levels (3.12 times as on March 31, 2010) and its high working capital intensity of operations. The rating is also constrained by SCC's modest scale of operations, vulnerability of its profitability to movement in raw material prices and high geographical concentration of its order book. While assigning the rating ICRA takes into account the risks inherent in a partnership firm like limited ability to raise capital and risk of dissolution. The rating is however supported by SCC's established track record in the construction industry and its experienced promoters. Surya Construction Company is a partnership firm established in 1987 by Mr. Surajmal. The firm is predominantly engaged in road construction for Government entities in Rajasthan which are mostly under the preview of Public Works Department. The major clients of the firm include Rajasthan State Agriculture Marketing Board, Jaipur Development Authority, and Pradhan Mantri Gram Sadak Yojna. Recent Results The firm reported a net profit before tax of INR0.16 crore on an operating income of INR14.79 crore in FY2010. VIJAY VELAVAN: ICRA Reaffirms 'LBB' Rating on INR6.6cr Term Loan ---------------------------------------------------------------- ICRA has reaffirmed the 'LBB' rating to the INR 6.60 crore term loan facilities and INR10.35 crore (enhanced from INR 9.00 crore) long term fund based bank facilities of Vijay Velavan Spinning Mills Private Limited. The outlook on the rating is stable. ICRA has also reaffirmed A4 rating to INR 3.00 crore (reduced from INR4.00 crore) fund based bank facilities and INR 4.75 crore non- fund based bank facilities of the company. The reaffirmed ratings reflect the company's small scale of operations restricting economies of scale, and weak financial profile characterized by high gearing and high working capital intensity. The ratings also take into account the high competitive business environment which restricts the bargaining power of the company. The ratings factor in the experience of promoters in the textile industry and the company's access to local customers in Tiruppur. Vijay Velavan Spinning Mills Private Limited is primarily engaged in the production of cotton yarn (hosiery variety). Incorporated in 2004, the Company's manufacturing facility with an installed capacity of 13,728 spindles is located near Tiruppur, Tamil Nadu. The promoters, their relatives and friends hold 100 per cent stake in the Company. Recent Results During the year ended March 31, 2010, VVS reported net profit of INR1.0 crore on operating income of INR33.5 crore. For the half- year ended September 2010, the Company reported net sales (unaudited) of INR21 crore. ZUBERI ENGINEERING: ICRA Assigns 'LBB+' Rating to INR3cr Limits --------------------------------------------------------------- ICRA assigns a rating of 'LBB+' to INR3 crores fund based limits of Zuberi Engineering Company. ICRA also assigns 'A4+' rating to the INR60 crores non fund based limits of ZEC. The long term rating carries a stable outlook. ICRA rating takes into account Zuberi Engineering established track record in the EPC1 space for material handling and water intake systems, its healthy order book (approximately INR 600 crores; representing a 12x multiple on FY 2010 revenues) and healthy growth prospects driven by commensurate demand. The rating is, however, constrained by the current modest size/scale of operations and high competition in Industry. Moreover, with backdrop of high pending order book, ZEC's ability to successfully execute larger sized projects and ability to fund its growth in medium to long term would remain key credit quality sensitivities. ICRA ratings also factors in sound client profile of ZEC, which largely comprises of private sector companies. This in turn also results in manageable debtor debtors for ZEC. Though, liquidity of ZEC has remained constrained by rapid growth witnessed by ZEC over a last few years and limited financial flexibility of the promoters. ICRA has also taken a note of firm price nature of ZEC contract which exposes its profitability to risks of deviation of the actual project costs from estimates. Though ZEC's practice to back to back place supplies agreements with its equipment suppliers, provide some mitigation against this risk. About Zuberi Engineering Zuberi Engineering Company, is more than 25 years old partnership Jaipur, Rajasthan based firm established by Mr. M.Z. Zuberi. The firm offers EPC services involving civil works for water systems; building/structural works; mechanical works (material handling systems), and electrical and instrumentation works to power, oil and industrial sector. The firm also a small IDLER roller manufacturing unit for in-house consumption, located in Jaipur. In the initial years, the firm was mainly engaged in executing civil works for Oil Tanks for Oil Refining and Marketing Companies and small size projects for water systems and pipe lying jobs for Rajasthan power utility. Over the last decade, firm has expanded its presence in EPC space for power plants to execute large sized material handling systems and other mechanical equipments, along with water intake systems and storage tanks etc. Over the years, customer profile of ZEC has also diversified at a broad level to cater to private sector customers along with an expanded power utilities customer base. ========= J A P A N ========= JLOC VII: Fitch Downgrades Ratings on Class D Notes to 'Dsf' ------------------------------------------------------------ Fitch Ratings has downgraded JLOC VII Limited's class D notes due May 2011 to 'Dsf' from 'CCsf'. At the same time, the rating of the class X interest-only notes has been withdrawn, following the review of its practice of rating IO securities. The transaction is a Japanese multi-borrower type CMBS securitization. -- JPY0.28bn* Class D notes downgraded to 'Dsf' from 'CCsf'; Recovery Rating revised to 'RR6' from 'RR2'. * as of Feb. 17, 2011 Class X notes (interest-only) rating of 'AAAsf' with Stable Outlook has been withdrawn. Fitch has downgraded the class D notes to reflect its view that the principal of the notes will be irrevocably impaired at legal final maturity in May 2011, as a result of work-out activities of an underlying loan that defaulted in April 2009. The loan was backed by a single-tenant retail property located in Kanagawa. Following the sale of the loan in January 2011, the proceeds were used to partially repay the class D notes principal at the February 2011 payment date. However, as no cash flow is expected following the completion of collection activities of all underlying loans, the remaining principal on the class D notes will remain outstanding at legal final maturity in May 2011. All of class A, B and C were paid in full. The rating on the interest-only class X notes, which only addresses the likelihood of receiving interest payments, while principal on the related notes remain outstanding, has been withdrawn. For additional information, please see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010. At closing the notes were backed by nine loans (including one TBI) that were ultimately backed by 27 commercial real estate properties in Japan. TAKEFUJI CORP: Overcharges Customers JPY2.4 Tril. in Interest ------------------------------------------------------------- Takefuji Corp. overcharged customers a total of JPY2.4 trillion (US$29 billion) in interest as of Oct. 31, according to a court document obtained by Bloomberg News. Bloomberg, citing document filed by the Tokyo-based company on Jan. 31, says the overcharge is more than eight times the JPY273 billion Takefuji set aside for repayment claims as of March 2010. If Takefuji repaid all the overcharged interest, that would leave it with 75 billion yen in outstanding loans, the document said. According to Bloomberg, the filing comes as Takefuji approaches its Feb. 28 deadline for customer repayment claims and seeks a sponsor to resume operations. "The figure of JPY2.4 trillion is a bit higher than earlier expected," Bloomberg quotes Takehiro Tsuda, a Tokyo-based analyst at Citigroup Global Markets Japan, as saying. "But the reduced balance of outstanding loans is unlikely to dissuade potential sponsors" because the actual amount of interest repayments will probably be smaller," Mr. Tsuda said. The Troubled Company Reporter-Asia Pacific, citing Bloomberg News, reported on Feb. 4, 2011, that Eiichi Obata, the court-appointed administrator of Takefuji Corp., said that Takefuji had shortlisted five potential bidders to sponsor the company. Mr. Obata said Takefuji set March 10 as a deadline for final bidding. The company is also considering the sale of its Tokyo headquarters building and other real estate assets, he said. Takefuji Corp. filed a bankruptcy petition with the Tokyo District Court on September 28, 2010, with debts of JPY433.6 billion. Bloomberg News said the company has become the biggest casualty of Japan's four-year crackdown on coercive lending practices by consumer finance companies. The lender is seeking to restructure as borrower claims of overpaid interest are estimated to exceed JPY1 trillion. About Takefuji Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/-- is a Japan-based company mainly engaged in the consumer finance business. The Company operates in two business segments. The Consumer Finance segment covers the loan and credit card businesses. The Others segment is involved in the operation of golf courses, the development, management and leasing of real estate, the venture capital business, as well as the investment business, among others. The Company has eight subsidiaries. TAKEFUJI CORP: Founder's Son Wins Court Battle Over Tax ------------------------------------------------------- Kyodo News reports that the Supreme Court on Friday repealed an order by tax authorities for the son of the founder of Takefuji Corp. to pay JPY133 billion in taxes imposed on his stockholdings in a Dutch company that were gifted to him by his parents. Kyodo relates Toshiki Takei, former senior managing director of the major consumer loan firm, will receive around JPY200 billion in tax refunds, including interest, a record refund for an individual. According to Kyodo, Mr. Takei was gifted the JPY165 billion worth of Dutch-firm stock in 1999 while he was stationed in Hong Kong as a Takefuji executive, and was ordered to pay some JPY133 billion in back tax. Seeking nullification of the taxation, Kyodo relates, Mr. Takei argued that the gifting of overseas assets to those living abroad was out of the scope of Japanese taxation in 1999. Kyodo notes that the government claimed Mr. Takei had resided in Hong Kong at that time partly to avoid payment of the gift tax and that his main base of business activities was in Japan. But Mr. Takei argued at the top court last month that as he spent around 65% of his life in Hong Kong over a period of three years, he was not obliged to pay the tax. In 2007, the Tokyo District Court repealed the tax agency's order, but in 2008 the Tokyo High Court reversed that decision. Takefuji Corp. filed a bankruptcy petition with the Tokyo District Court on September 28, 2010, with debts of JPY433.6 billion. Bloomberg News said the company has become the biggest casualty of Japan's four-year crackdown on coercive lending practices by consumer finance companies. The lender is seeking to restructure as borrower claims of overpaid interest are estimated to exceed JPY1 trillion. About Takefuji Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/-- is a Japan-based company mainly engaged in the consumer finance business. The Company operates in two business segments. The Consumer Finance segment covers the loan and credit card businesses. The Others segment is involved in the operation of golf courses, the development, management and leasing of real estate, the venture capital business, as well as the investment business, among others. The Company has eight subsidiaries. =============== M A L A Y S I A =============== HOCK SIN: Bourse to Suspend Trading of Shares on February 25 ------------------------------------------------------------ Bursa Malaysia Securities Berhad will suspend trading of Hock Sin Leong Group Berhad's securities on Feb. 25, 2011, due to the company's failure to submit its regularization plan to the Securities Commission and other relevant authorities for approval by Feb. 3, 2011, the timeframe stipulated by Bursa Securities. The securities of the Company will be de-listed on March 1, 2011, unless an appeal is submitted to Bursa Securities on or before Feb. 24, 2011. Any appeal submitted after the appeal timeframe will not be considered by Bursa Securities. In the event the Company submits an appeal to Bursa Securities within the appeal timeframe, the removal of the securities of the Company from the Official List of Bursa Securities on March 1, 2011, shall be deferred pending the decision on the Company's appeal. The bourse said the Company's securities may remain deposited with Bursa Depository notwithstanding its delisting. However, shareholders who intend to hold their securities in the form of physical certificates can withdraw them from the Central Depository System accounts maintained with Bursa Depository at anytime after the securities of the companies have been delisted. Shareholders will be required to submit an application form for withdrawal in accordance with the procedures prescribed by Bursa Depository. These shareholders can contact any Participating Organization of Bursa Securities and/or Bursa Securities' general line at 03-2034 7000. Upon the delisting, the Company will continue to exist but as an unlisted entity. The Company will still continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by the company's performance. However, the shareholders will be holding shares which are no longer quoted and traded on Bursa Securities. About Hock Sin Hock Sin Leong Group Berhad -- http://www.hslg.com.my/-- is an investment holding company. It also provides management services to its subsidiary companies. The Company, through its subsidiaries, is engaged in consumer electrical and electronics industry in Malaysia. Hock Sin Leong Group Berhad is now listed as an Amended Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd. According to a disclosure statement with the bourse, the company triggered the PN17 listing as its external auditors have expressed, albeit, an unqualified opinion and have emphasized that the Group incurred a net loss of MYR26,587,834 during the year ended September 30, 2009, and as of that date, the Group's current liabilities exceeded its current assets by MYR28,172,442. OCI BERHAD: Posts MYR1.34 Million Net Loss in Qtr Ended Dec. 2010 ----------------------------------------------------------------- OCI Berhad posted a net loss of MYR1.34 million for the quarter ended Dec. 31, 2010, compared with a net loss of MYR1.32 million in the same period in 2009. For the second quarter ended Dec. 31, 2010, the Company reported MYR1.50 million of total revenues, slightly lower than the revenues of MYR1.58 million reported in the same quarter of 2009. The decrease in revenue was mainly due to the increase in raw materials compared with previous year resulting in purchasers buying lower volumes. As of Dec. 31, 2010, the Company's balance sheet showed MYR21.35 million in total assets and MYR73.69 million in total liabilities, resulting in a MYR52.35 million shareholders' deficit. About OCI Berhad OCI Berhad manufactures adhesives used in the production of shoes for the footwear, toy making, building/construction, automotive, furniture and packaging industries. OCI Berhad is an affected listed issuer as the auditors have expressed a modified opinion with emphasis on the company's going concern in the company's audited financial statements for the financial year ended June 30, 2006, and the shareholders' equity of the company on a consolidated basis as at June 30, 2006, represented 40.8% of the issued and paid-up capital of the company. TRACOMA HOLDINGS: Names Dato' Ir. Dr. A. Bakar Jaafar as Chairman ----------------------------------------------------------------- Tracoma Holdings Berhad said Dato' Ir. Dr. A. Bakar Jaafar has been appointed as Independent and Non-Executive Chairman of the Company effective February 18, 2011. Dato' Ir. Dr. A. Bakar Jaafar has gained wide experience and expertise in both public and private sectors, after having served in the Malaysian Civil Service for over 22 years in various positions including as the Director-General of the Department of Environment from 1990 to 1995. Since his optional retirement in the public service in late 1995, he continues however to serve the Government of Malaysia as Elected-Member to the Commission on the Limits of Continental Shelf, UN Headquarters, New York (1997- 2002)(2002-2007)(2007-2012). He is also an Adjunct Senior Fellow of the Maritime Institute of Malaysia, and an Adviser to the National Committee on Continental Shelf, Secretariat to National Security Council, Prime Minister's Department, Malaysia. In the private sector, he was Senior Controller, Engineering and Processing, Kumpulan Guthrie Berhad-cum-Managing Director, Guthrie Industries Sdn Bhd (1996); Managing Director, Alam Sekitar Malaysia Sdn Bhd (1997-2000); Group Technology Director, Peremba (Malaysia) Sdn Bhd-cum-Managing Director, Modulogic Sdn Bhd (2001- 2003); and Director and Senior Principal Environmental Consultant, Enviro-LIFT Services Sdn Bhd, and Novaviro Technology Sdn Bhd (since 2004). He also sits on the Board of Directors of Land & General Bhd (since October 1999) and other private companies including Alam Flora Sdn Bhd (as Chairman), Aker Solutions Sdn Bhd, and HITTS Technologies Sdn Bhd. He is also a Director of a number of private companies relating to engineering, maritime and environment industries. About Tracoma Holdings Tracoma Holdings Berhad is a Malaysia-based manufacturer and supplier of automotive parts and components. Some of its wholly owned subsidiary companies include Tracoma Sdn. Bhd., which is engaged in manufacturing of automotive components; Malaysian Die- Makers Sdn. Bhd., which is engaged in die making and servicing; Trends Mecha Sdn. Bhd., which is engaged in parts and car design, and Malaysian Farm Machinery Sdn. Bhd., which is engaged in assembling and distributing agricultural tractors. * * * Tracoma Holdings 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 PN17's Paragraph 8.04 and Paragraph 2.1(a) as the consolidated shareholders' equity for the full financial year ended December 31, 2009, is less than 25% of the Company's issued and paid-up capital and such shareholders' equity is less than MYR12 million. VTI VINTAGE: KTS Trading Serves Winding-Up Petition Against Unit ---------------------------------------------------------------- VTI Vintage Berhad disclosed that a winding up petition was served on Vintage Tiles Industries Sdn Bhd, a wholly-owned subsidiary of the Company, by Messrs. Chan, Moosdeen & Partners, the solicitors for KTS Trading Sdn Bhd, on Feb. 14, 2011. The winding up petition will be heard at the Kuala Lumpur High Court on March 24, 2011. The amount claimed by the petitioner against Vintage Tiles includes: * total judgment sum of MYR61,152.00; * interest of 8% per annum on the total judgment sum from Aug. 22, 2008, until the date of summons; * further interest of 8% per annum on the total judgment sum from the date of summons until the date of full settlement; and * total cost of MYR1,211.00. The circumstances leading to the filing of the winding up petition against VTISB was due to the fact that VTISB has failed and/or default to settle the sum claimed by the petitioner. However, the Company announced that the Group had on July 22, 2009, initiated the Proposed Scheme of Arrangement under Section 176 of the Companies Act, 1965 and has included the petitioner as one of the Scheme Creditors under the Proposed Scheme of Arrangement under Section 176 of the Companies Act, 1965 which had been approved during the Court Convened Meeting of the Group held on July 16, 2010. Based on the legal advice obtained, the petitioner as one of the Scheme Creditors, once the Court sanctions the Scheme of Arrangement under Section 176 of the Companies Act, 1965, will be bound to accept the Scheme under the approved Proposed Scheme. Therefore, pending the completion of the Proposed Scheme, no payment was made to the Scheme Creditors including the petitioner. About VTI Vintage VTI Vintage Berhad is an investment holding company. It also provides management services to its subsidiaries. The Company, through its subsidiaries is principally engaged in the manufacturing and trading of roof tiles, investment holding and trading of roof tiles and roof related products, supply and laying of roof tiles and installation of roofing on a consignment basis and manufacture, supply and installation of steel related building materials. On February 25, 2010, VTI Vintage Berhad was classified as an Amended Practice Note 17 issuer based on the criteria set by the Bursa Malaysia Securities Bhd as it has triggered Paragraph 2.1 (a) of the PN17. ==================== N E W Z E A L A N D ==================== BRIDGECORP LTD: Petricevic Puts NZ$4.4-Mil. Mansion Up For Sale --------------------------------------------------------------- The New Zealand Herald reports that former Bridgecorp boss Rod Petricevic will put his NZ$4.4 million Remuera home on the market to raise funds to defend allegations his family trust owes NZ$2.2 million to a Bridgecorp subsidiary. The NZ Herald relates that Navigator Finance alleges the R.M Petricevic Family Trust owes it NZ$2.2 million but the trust's lawyers claim the money was an advance, not a loan. The family mansion in Remuera is owned by the trust, which has put forward a proposal to sell it in order to raise funds, the NZ Herald says. The NZ Herald recalls that Navigator last year successfully placed a caveat over the Petricevic home to prevent its sale, and therefore secure the asset and prevent possible dissipation. But the trustees have complained that the caveat prevented them from raising funds to defend allegations. According to the report, the sale of the house is conditional and Navigator has to agree to the price and whether the funds -- after the mortgage has been repaid -- will be placed in trust for protection. The litigation against the trust is being funded by Bridgecorp's receivers PricewaterhouseCoopers because Navigator is in liquidation. If Navigator wins, the NZ Herald notes, the funds are expected to be distributed among Bridgecorp investors and Mr. Petricevic's personal creditors. Mr. Petricevic was bankrupted in 2008. Trial Date Delayed Meanwhile, The National Business Review reports that a High Court trial involving Mr. Petricevic's family trust was on Monday put on hold in the hope Mr. Petricevic's Remuera mansion could be sold for top dollar. According to NBR, Navigator's bid to recover NZ$2.25 million from the Petricevic family trust, which was due to begin in the Auckland High Court next Monday, was vacated by Justice Graham Lang and new trial dates will be set after March 21. Time was also given to resolve "difficult discovery issues still being run to ground," some of which go back 15 years, according to Mr. Petricevic's Queen's counsel Bruce Stewart, NBR adds. About Bridgecorp Based in New Zealand, Bridgecorp Ltd. is a property development and finance company. Bridgecorp was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. Bridgecorp owes around 1,800 debenture holders, which liquidators estimate to approximate NZ$500 million. Bridgecorp's nine Australian companies were also placed into voluntary administration, owing about 100 investors about AU$24 million (NZ$27 million). ================= S I N G A P O R E ================= GOLDEN AARON: Members' Final Meeting Set for March 21 ----------------------------------------------------- Members of Golden Aaron Pte Ltd will hold their final meeting on March 21, 2011, at 3:00 p.m., at 1 Scotts Road, #21-08 Shaw Centre, in Singapore 228208. At the meeting, Madam Chia Lay Beng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HO BEE: Creditors' Proofs of Debt Due March 18 ---------------------------------------------- Creditors of Ho Bee (Sentosa) Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidator is: Lai Seng Kwoon c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 JUSTNETWORK PTE: Creditors' Proofs of Debt Due March 21 ------------------------------------------------------- Creditors of JustNetwork Pte. Ltd., which is in voluntary liquidation, are required to file their proofs of debt by March 21, 2011, to be included in the company's dividend distribution. The company's liquidators are: Leow Quek Shiong Leong Hon Mun Peter c/o BDO LLP 19 Keppel Road #02-01 Jit Poh Building Singapore 089058 MELIADOR PTE: Court to Hear Wind-Up Petition on March 11 -------------------------------------------------------- A petition to wind up the operations of Meliador Pte Ltd will be heard before the High Court of Singapore on March 11, 2011, at 10:00 a.m. Schott Glass (M) Sdn Bhd filed the petition against the company on Feb. 7, 2011. The Petitioner's solicitor is: Rodyk & Davidson LLP 80 Raffles Place #33-00 UOB Plaza 1 Singapore 048624 MEZZONI PTE: Creditors' Proofs of Debt Due March 18 --------------------------------------------------- Creditors of Mezzoni Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidators are: Kelvin Thio Terence Ng c/o Ardent Business Advisory Pte Ltd 146 Robinson Road #12-01 Singapore 068909 ================ S R I L A N K A ================ SRI LANKA TELECOM: Fitch Affirms 'B+' Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka Telecom PLC's Long-term Foreign Currency Issuer Default Rating at 'B+'. The Outlook is Positive. At the same time, the agency has affirmed SLT's Long- term Local Currency IDR at 'BB-' and its National Long-term rating at 'AAA(lka)'. The Outlook for both LC IDR and National rating is Stable. SLT's LTFC IDR is capped by Sri Lanka's Country Ceiling of 'B+' and the Positive Outlook reflects that on the sovereign LTFC IDR. . SLT's ratings continue to be supported by its position as the fixed-line incumbent in Sri Lanka and by its adequate market share, through subsidiary Mobitel, in a moderately growing mobile telecom market. At end-September 2010, it had 40.6% and 24.4% of the country's fixed line and mobile subscribers respectively. The company also has a dominant market share of international long- distance and IP and data-related services. SLT's consolidated revenues and EBITDA improved 4% and 8% respectively during the nine months to September 2010 (9M10) after the Telecommunications Regulatory Authority of Sri Lanka introduced floor pricing (off- net calls at LKR2 per minute and on-net calls at LKR1 per minute) and established an interconnection regime in the country. The mobile and broadband segments are largely responsible for driving the growth in SLT's consolidated revenue profile. Despite the positive measures adopted by the regulator in terms of floor-pricing and the interconnection regime in 2010, Fitch notes that regulatory uncertainty continues to prevail. Given the overcrowded nature of the local mobile industry, there is a risk that price competition will intensify if the regulatory tariff floor is removed. GOSL has announced intentions to lower the floor tariff on local off-net calls to LKR1.50 in mid-2011, from the current LKR2.00. SLT's capex is expected to increase during 2011 to expand coverage and capacity, as well as to make the transition to an IP-based next generation network. However, barring any substantial increase in cash returns to shareholders, SLT should be able to return to positive FCF generation in 2012 once capex moderates. Fitch expects SLT to maintain a strong financial profile and credit metrics appropriate for its current ratings. SLT had total adjusted debt of LKR7.5bn (including vendor financing of LKR3.5bn) at end-September 2010 and a low net adjusted debt to operating EBITDAR of 0.44x. Fitch expects SLT to maintain its net leverage below 1x over the short- to medium-term. SLT's liquidity is comfortable with cash and equivalents of LKR7.8bn at end-September 2010 and ready access to banks for funding, against maturities of LKR1.8bn in 2011. A negative rating action may result if net leverage (net adjusted debt/EBITDAR) exceeds 2.5x and 1.5x for FC and LC IDRs, respectively, on a sustained basis. As the FC IDR is constrained by the Country Ceiling, an upgrade of the Sovereign rating will result in an upgrade of SLT's FC IDR. The possibility of an upgrade in SLT's LC IDR will depend on the agency's view on the extent to which the presence of a large minority shareholder - Usaha Tegas (holding a 44.9% stake in SLT) - is able to offset the influence by GOSL, which directly and indirectly owns more than 51% in SLT. This is because a high level of government ownership would normally constrain the ratings at the sovereign level. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Feb. 24-25, 2011 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 4, 2011 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Hyatt Regency Century Plaza, Los Angeles, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 7-9, 2011 INTERNATIONAL COUNCIL OF SHOPPING CENTERS Debt Workout, Transactions, and Repositioning of Distressed Assets The Wharton School, University of Pennsylvania, Philadelphia, Pa. Contact: 1-646-728-3468 or www.icsc.org/2011UV Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 17-19, 2011 AMERICAN BANKRUPTCY INSTITUTE Byrne Judicial Clerkship Institute Pepperdine University School of Law, Malibu, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/ May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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 ***