/raid1/www/Hosts/bankrupt/TCRAP_Public/110315.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, March 15, 2011, Vol. 14, No. 52
Headlines
A U S T R A L I A
ASK HOME: Placed in Liquidation
EMPOWER INVEST: ASIC Obtains Wind-up Orders
OPES PRIME: Former Directors to Stand Trial to 4 ASIC Charges
REWARDS GROUP: Receivers Seek Buyers for Horticultural Assets
H O N G K O N G
ANGOSTURA ASIA: Placed Under Voluntary Wind-Up Proceedings
ARENA TRADING: Ying and Chan Step Down as Liquidators
ASIAPAC INT'L: Members' Final General Meeting Set for April 15
CHINSON NOMINEES: Creditors' Proofs of Debt Due April 8
CHINSON SECRETARIES: Creditors' Proofs of Debt Due April 8
ELIMA FOUNDATION: Placed Under Voluntary Wind-Up Proceedings
FIRSTWIDE HOLDINGS: Li and Tsang Appointed as Liquidators
I N D I A
ALUFIT (INDIA): CRISIL Assigns 'BB+' Rating on INR270MM Term Loan
CI BUILDERS: Fitch Assigns National Long-Term Rating at 'B'
CI FINLEASE: Fitch Assigns National Long-Term Rating at 'BB-'
DESMO EXPORTS: CRISIL Cuts Rating on INR50MM Cash Credit to 'BB'
FITEX INDUSTRIES: CRISIL Rates INR145MM Packing Credit at 'P4'
GLOSTER CABLES: CRISIL Reaffirms 'BB-' Rating on Cash Credit
KADAKIA PLASTICS: ICRA Assigns 'LC' Rating to INR5cr Limits
K.P. BUILDCON: CRISIL Downgrades Rating on Cash Credit to 'BB-'
LOHIA PAPER: CRISIL Reaffirms 'B+' Rating to INR40MM Cash Credit
MARUDHAR INDUSTRIES: ICRA Reaffirms 'LBB+' Rating on Loan
MEENAKSHI ENERGY: Fitch Puts 'BB+' Rating on Senior Bank Loans
MURLIWALA AGROTECH: CRISIL Reaffirms 'BB-' Rating on Cash Credit
NOBLE INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR25MM Term Loan
NOBLE MOULDS: CRISIL Reaffirms 'C' Rating on INR50MM Cash Credit
PRABIR FOODSTUFF: CRISIL Assigns 'B' Rating to INR25MM Bank Loan
PRAMANIK RETAIL: ICRA Reaffirms 'LB' Rating on INR35cr Loan
RENUKA GLASS: CRISIL Assigns 'D' Rating on INR30MM Cash Credit
ROSHNI DEVELOPERS: ICRA Assigns 'LBB' Rating to INR23cr Loan
SAMRUDDHA RESOURCES: CRISIL Cuts Rating on Cash Credit to 'D'
SATHYA GRANITES: CRISIL Reaffirms 'B+' on INR150MM Cash Credit
SREE PAVAN: ICRA Assigns 'LBB' Rating to INR10cr Bank Limits
SHEKHAR RESORTS: ICRA Assigns 'LC+' Rating to INR50cr Term Loan
SUPERKING MANUFACTURERS: CRISIL Rates INR13.2M Cash Credit at 'B+'
VAISHNO INTERNATIONAL: CRISIL Assigns 'BB' Rating on Cash Credit
VALAY CONSTRUCTIONS: CRISIL Cuts Rating on INR41.6MM Loan to 'D'
WOCKHARDT LTD: Bombay High Court Admits Winding-Up Petition
ZIM LABORATORIES: CRISIL Reaffirms 'BB+' Rating on Cash Credit
K O R E A
SAMHWA MUTUAL: Prosecutors to Launch Probe Over Illegal Lending
M A L A Y S I A
AMBANK BERHAD: Fitch Affirms Support Rating Floor at 'BB+'
N E W Z E A L A N D
REDGROUP RETAIL: New Zealand Bookstore Business Up for Sale
X X X X X X X X
* S&P's Global Corporate Default Tally Remains at Three in 2011
* BOND PRICING: For the Week March 7 to March 11, 2011
- - - - -
=================
A U S T R A L I A
=================
ASK HOME: Placed in Liquidation
-------------------------------
Tracey McBean at the Gold Coast Bulletin reports that ASK Home
Enterprises, a kit home supply company under investigation for
failing to deliver on orders, has been forced into liquidation by
one of its unhappy customers.
The Bulletin relates that liquidators Jason Bettles and Michael
Griffin, of Worralls, were appointed to banned builder
Mathew Bradley Willaims' ASK Homes Enterprises following a Supreme
Court application by Airlie Beach-based couple, Cassandra Fowler
and Christian Fabre.
According to the report, Ms. Fowler said they paid ASK Home
AU$230,000 for a kit home last year and have not seen a single
piece of timber for it. Ms. Fowler said they had given
Mr. Willaims the money up front.
The Bulletin relates that Mr. Bettles said he could not find
Mr. Willaims, who is understood now to be living in Phuket,
Thailand.
Mr. Bettles, as cited by the Bulletin, said he would continue
searching for assets and would present a report to creditors in a
month.
He said since its appointment as liquidator to the company,
Worralls had been approached by another ASK customer who claimed
to be AU$50,000 out of pocket, the Bulletin reports.
ASK Home Enterprises, Mr. Willaims, and I.S.K. Homes Pty Ltd,
another kit home operation previously linked to Mr. Willaims, are
being probed by the Queensland Office of Fair Trading following
eight customer complaints totalling hundreds of thousands of
dollars.
EMPOWER INVEST: ASIC Obtains Wind-up Orders
-------------------------------------------
The Supreme Court of New South Wales has appointed liquidators to
Empower Invest Pty Ltd and Newcastle Palais Holdings Pty Ltd
following an application by the Australian Securities and
Investments Commission. The two companies promoted and operated
an unregistered managed investment scheme involving a Newcastle
property development.
In proceedings on March 7, 2011, the Supreme Court made final
orders appointing Greg Hall of PricewaterhouseCoopers as
liquidator of Empower Invest Pty Ltd and Mark Robinson of PPB
Advisory as liquidator of Newcastle Palais Holdings Pty Ltd after
both companies failed to comply with an ASIC enforceable
undertaking (EU) which required they repay investors.
Background
ASIC initially investigated allegations that the companies, and
their directors, Kenneth Watson and Brien Cornwell, promoted and
operated a managed investment scheme regarding a property
development at Hunter Street, Newcastle, without registration and
without holding an Australian financial services license.
The scheme raised AU$769,500 in total from ten investors. ASIC's
investigation found that offers had been made to a larger number
of investors to join the scheme. ASIC took action to prevent the
further promotion of the scheme.
On May 9, 2008, the Supreme Court declared, with consent from the
companies and the directors (jointly the defendants), that the
defendants had operated an unregistered managed investment scheme
and carried on a financial services business in relation to the
scheme in breach of the Corporations Act 2001. ASIC also accepted
EUs from the defendants in which they undertook to:
-- inform investors in the scheme of ASIC's concerns'
-- offer to refund money invested;
-- make a refund to any investor who accepted the offer; and
-- report to ASIC on any refunds requested and paid to
investors
While the defendants complied in part with their undertaking, they
failed to repay investors in accordance with the terms of the EU.
On Aug. 30, 2010, ASIC obtained declarations from the Supreme
Court that the companies were in breach of the EU and ordered them
to repay the investors within 28 days. As a result of the
companies' continued failure to repay the investors, ASIC
initiated proceedings to wind up the companies on Dec. 23, 2010.
Australian-based Empower Invest Pty Ltd operates managed
investment scheme.
OPES PRIME: Former Directors to Stand Trial to 4 ASIC Charges
-------------------------------------------------------------
Former directors of Opes Prime Stockbroking Ltd, Anthony Blumberg
and Julian Smith, have been committed to stand trial in the
Victorian Supreme Court after both pleaded not guilty to four
charges brought by the Australian Securities and Investments
Commission (ASIC).
Mr. Blumberg, 43, of Moorabbin, Victoria, did not contest his
committal in the Melbourne Magistrates' Court and was ordered to
appear in the Supreme Court on March 21, 2011.
Mr. Smith, 48, of Blackheath, New South Wales, was committed in
the Melbourne Magistrates' Court on March 11, 2011, and was also
ordered to appear in the Supreme Court on March 21, 2011.
Mr. Blumberg and Mr. Smith are both charged with four offences of
breaching their duties as directors of OPSL and associated
companies. ASIC alleges that on March 20, 2008, shortly before
Opes Prime collapsed, Mr. Blumberg, Mr. Smith and their
co-director, Mr. Lirim (Laurie) Emini, signed financial
documentation with ANZ Bank to obtain a term loan for OPSL and its
parent company, Opes Prime Group Limited and pledged the
companies' assets as security to meet the obligations of Leveraged
Capital.
Mr. Blumberg and Mr. Smith were both released on bail subject to
the following conditions:
* each surrenders his passport;
* both do not leave Australia or attend any international
point of departure;
* both do not contact any witnesses or their co-accused; and
* each resides at his residential address.
On Feb. 28, 2011, Mr. Emini was committed to stand trial in the
Supreme Court on 26 charges arising from the collapse of OPSL.
The Commonwealth Director of Public Prosecutions is prosecuting
the matter.
Background
In addition to the criminal investigation undertaken by ASIC
following the collapse of OPSL on March 27, 2008, which has
resulted in the charges detailed above, ASIC's investigation into
OPSL has also considered how any return available to OPSL
creditors might be maximized.
ASIC entered into a formal mediation process with the OPSL
liquidators, ANZ Bank and Merrill Lynch to consider a commercial
resolution to claims by ASIC and the administrators.
On March 6, 2009, ASIC announced that that it would provide the
necessary releases to allow a settlement offer to be put to OPSL
creditors. Following a meeting of creditors on Aug. 4, 2009, the
Federal Court approved the Schemes of Arrangement. These schemes
are expected to deliver a sum of $253 million and a return of
around 37 cents in the dollar to OPSL creditors. An interim
dividend of 30 cents was paid by the scheme administrators on
Dec. 16, 2009.
ASIC's investigation also considered issues arising from the
disclosure obligations of the OPSL financiers and the ANZ's
internal review of its securities lending/equity financing
business. On March 6, 2009, ASIC announced that it had put in
place an enforceable undertaking from the ANZ, which required ANZ
to complete a program to remedy deficiencies in operational
procedures across the ANZ Custodian Services business, including
its securities lending operations.
About Opes Prime
Opes Prime Group Ltd was an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients. The Group conducted business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:
1) Opes Prime Stockbroking Limited is a full Market
Participant of the Australian Stock Exchange Ltd, and
holds an Australian Financial Services Licence (#247408)
which enables it to deal and advise in financial
services and products to retail and wholesale clients. The
company was first registered on 10 March 1999, and started
business with its current shareholders in 2005. Opes
Prime Stockbroking is a specialist provider of
securities lending and equity financing services. In
Singapore, the firm operates through Opes Prime Group's
wholly owned subsidiary, Opes Prime International Pte Ltd.
In Australia, Opes Prime Stockbroking has granted
Authorized Representative status to Trader Dealer Pty Ltd,
an on-line non-advisory trading execution service for the
semi-professional and professional trader.
2) Opes Prime Structured Products Pty Ltd develops, manages
and markets specialized leveraged products for the high
net worth market, providing outstanding risk protection
and return potential.
3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
advisory firm specializing in small and mid cap stocks.
4) In Singapore, Opes Prime Asset Management Pte Ltd provides
specialist hedge fund incubation, advisory and trade
management services, and Five Pillars Associates Pte Ltd
provides Islamic finance consultancy.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 1,
2008, that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls.
Sal Algeri and Chris Campbell from the Deloitte Corporate
Reorganization Group were appointed by a secured creditor, ANZ
Banking Group Ltd., as Receivers and Managers of Opes Prime Group
Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and
Hawkswood Investments Pty Ltd.
The TCR-AP reported on Oct. 17, 2008, that Opes Prime's creditors
voted on Oct. 15, 2008, to liquidate Opes Prime Stockbroking
Limited. According to the Australian Associated Press, the
decision of the creditors will allow the liquidator to pursue
claims against Opes Prime's secured creditors -- ANZ Bank
and Merrill Lynch -- that were not available to the administrator.
About 1,200 Opes clients lost shares they had placed with Opes in
return for margin loans, when the major secured creditors of
Opes -- ANZ, Merrill Lynch, Dresdner Kleinwort -- began selling a
pool of nearly AU$1.6 billion in shares soon after the Opes
collapse, in a bid to recover money owed to them by Opes, the AAP
said.
Opes Prime owed clients about AU$585 million at the time of the
collapse, but due to fluctuations in the share market that figure
had fallen to about AU$400 million on Sept. 22, 2008, the AAP
noted citing Ferrier Hodgson.
REWARDS GROUP: Receivers Seek Buyers for Horticultural Assets
-------------------------------------------------------------
The Receivers and Managers of the Rewards Group and the Ark Fund
are seeking expressions of interest from parties to acquire the
companies' freehold horticultural property (including
improvements).
The horticultural properties include:
* Dandaragan (WA) - 84 hectares of stone fruit, 90 hectares
of mangoes and 11 hectares of grapes (700ha freehold land);
* Kununurra (WA) - 401 hectares of mangoes and 60 hectares
of grapefruit (478ha freehold land);
* Packing shed - Kununurra (WA) with cool rooms and a fully
automated sorting and packing line;
* Mareeba (QLD) - 102 hectares of mangoes and 3 hectares of
lime trees (316ha freehold land);
* Childers (QLD) - 88 hectares of stone fruit (191ha freehold
land);
* Kumbia (QLD) - 35 hectares of stone fruit (301ha freehold
land);
* Caboolture (QLD) - 66 hectares of strawberries (125ha
freehold land);
* Packing shed - Caboolture (QLD) with cool rooms and state
of the art production line; and
* Yarra Valley (VIC) - 100 hectares of strawberries and 9
hectares of blueberries (137ha freehold land).
Expressions of interest are sought for the purchase of the
properties either individually or collectively.
The closing date for expressions of interest is on March 25, 2011.
About Rewards Group
Rewards Group Limited manages 12,000 hectares of forestry and
fruit plantations in Queensland, Western Australia and Victoria.
Managed investment scheme provider Rewards Group Limited was
placed in administration on May 16, 2010. Martin Jones, Andrew
Saker and Darren Weaver of Ferrier Hodgson were appointed as Joint
and Several Administrators of Rewards Group Limited and its
subsidiaries pursuant to section 436A of the Corporations Act
2001. Rewards Group's subsidiaries under administration are:
* Rewards Projects Limited
* Rewards Land Pty Ltd;
* Rewards Management Pty Ltd;
* Ord Packers Pty Ltd;
* Berry Packers Pty Ltd;
* Rural Labour Pty Ltd; and
* Greentree Capital Pty Ltd, formerly QPR Capital
Finance Pty Ltd.
================
H O N G K O N G
================
ANGOSTURA ASIA: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on Feb. 28, 2011,
creditors of Angostura Asia Pacific Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
James Stephen Campbell
Room 2302, 23/F
Chung Kiu Commercial Building
47-51 Shantung Street
Mongkok, Kowloon
Hong Kong
ARENA TRADING: Ying and Chan Step Down as Liquidators
-----------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Arena Trading Limited on Feb. 28, 2011.
ASIAPAC INT'L: Members' Final General Meeting Set for April 15
--------------------------------------------------------------
Members of Asiapac International Enterprises Limited will hold
their final general meeting on April 15, 2011, at 6/F., Greenwich
Centre, 260 King's Road, North Point, in Hong Kong.
At the meeting, Yip Ka Yui, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
CHINSON NOMINEES: Creditors' Proofs of Debt Due April 8
-------------------------------------------------------
Creditors of Chinson Nominees Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by April 8, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Wong Shui Shan Raymond
6/F., Greenwich Centre
260 King's Road
North Point, Hong Kong
CHINSON SECRETARIES: Creditors' Proofs of Debt Due April 8
----------------------------------------------------------
Creditors of Chinson Secretaries Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by April 8, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Wong Shui Shan Raymond
6/F., Greenwich Centre
260 King's Road
North Point, Hong Kong
ELIMA FOUNDATION: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------------
At an extraordinary general meeting held on March 7, 2011,
creditors of Elima Foundation Limited resolved to voluntarily wind
up the company's operations.
The company's liquidator is:
Cheung Chun Kwok
Suite 1703, 17th Floor
Office Tower, Convention Plaza
1 Harbour Road
Wan Chai, Hong Kong
FIRSTWIDE HOLDINGS: Li and Tsang Appointed as Liquidators
---------------------------------------------------------
Li Man Wai and Tsang Lai Fun on Feb. 25, 2011, were appointed as
liquidators of Firstwide Holdings Limited.
The liquidators may be reached at:
Li Man Wai
Tsang Lai Fun
Room 1001, 10th Floor
Tai Yau Building
181 Johnston Road
Wanchai, Hong Kong
=========
I N D I A
=========
ALUFIT (INDIA): CRISIL Assigns 'BB+' Rating on INR270MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Positive/P4+' ratings to the bank
facilities of Alufit (India) Pvt Ltd.
Facilities Ratings
---------- -------
INR270.00 Million Term Loan BB+/Positive (Assigned)
INR265.00 Million Cash Credit BB+/Positive (Assigned)
INR75.00 Million Working Capital BB+/Positive (Assigned)
Demand Loan
INR510.00 Million Bank Guarantee P4+ (Assigned)
INR130.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect the susceptibility of AIPL's revenues and
profitability to the offtake by real estate sector, and risks
associated with high working capital intensity of its operations.
These weaknesses are partially offset by the extensive experience
of AIPL's promoters in fa‡ade engineering, its established market
position and strong relationships with reputed corporates and real
estate players.
Outlook: Positive
CRISIL believes that AIPL's credit risk profile will improve, on
the back of expected sale of its loss making extrusions division,
leading to improvement in its profitability and capital structure.
The rating may be upgraded if AIPL is able to demonstrate
significant and sustainable improvement in revenues, profitability
and capital structure thereby improving its financial risk
profile. Conversely, the outlook may be revised to 'Stable' if
the company's capital structure does not improve as envisaged and
debt protection metrics remain subdued, due to events such as
indefinite postponing of the sale of the extrusions division or
utilization of the proceeds towards additional capital expenditure
thereby limiting the headroom for augmentation of net working
capital.
About Alufit (India)
AIPL is engaged in fa‡ade engineering, which involves design,
fabrication and installation of aluminium glazing systems and
aluminium composite panels. It is promoted by Mr. Pankaj Keswani
who started the business as a proprietorship concern in 1985. It
was reconstituted as a private limited company in 1991.
The company provides a range of products used in the commercial
real estate industry to cover structures such as aluminium
composite panels and claddings and point fixed glazing. These
come in various forms such as curtain walls, aluminium claddings,
suspended glasses, skylights, canopies, windows and doors. Its
major customers include large corporates such as Tata Consultancy
Services Ltd, Syntel, Oracle (I-Flex), CA Technologies,
Dr. Reddy's Laboratories Ltd (CRISIL rated 'P1+'), Franklin
Templeton India Pvt Ltd and real estate developers such as Uppal
group, IREO, Embassy group, Brigade, Divyashree, and Prestige
Estates Projects Ltd.
Its manufacturing units in Bangalore and Chennai have a total
capacity of around 10,000 square meters. Its extrusion division
is located at Kuppam, Andhra Pradesh has a capacity of 9000 tonnes
per annum. The company proposes to sell off this division in the
near future.
AIPL reported a profit after tax (PAT) of INR8.0 million on net
sales of INR1069 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR8.2 million on net sales
of INR860.8 million for 2008-09.
CI BUILDERS: Fitch Assigns National Long-Term Rating at 'B'
-----------------------------------------------------------
Fitch Ratings has assigned India's CI Builders Pvt. Ltd. a
National Long-Term rating of 'B(ind)' with Stable Outlook. Fitch
has also assigned 'B(ind)' ratings to CBPL's INR39 million term
loan and INR130 million fund-based limits. Simultaneously, the
agency has assigned CBPL's INR0.60 million non-fund based limits
an F4(ind) rating.
The ratings reflect CBPL's good track record of executing various
residential projects in Bhopal and Madhya Pradesh. Furthermore,
the company has been successful in completing its prior projects
on time and has achieved 100% sales realization.
The ratings are constrained by CBPL's high leverage levels with
total adjusted debt net of cash/operating EBITDAR of 7.42x in FY10
(FY09: 7.46x). Fitch notes that debt financing of the upcoming
projects -- Thoua Kheda and Bawadia Kalan -- would deteriorate
this ratio further. CBPL reported negative cash flows from
operation in FY10 and FY09. The agency expects the trend to
continue if the upcoming projects increase the company's working
capital requirements. Any mismatch in the cash flow generation
from the completed project - CI Heights - and upcoming projects
would add pressure to liquidity and leverage.
Also, the company remains exposed to receivable risks as initial
property sales are made to brokers and investors whose credit
quality could not be ascertained. However, the company's long-
standing relationship with the same set of brokers and investors
mitigates this risk to a certain extent.
The ratings also take into account execution risks faced by the
company as all its ongoing projects are at advance stages of
conceptualization and funds are yet to be tied-up. Hitherto, only
one project 'CI Heights' has been completed, and will generate
revenues from FY11 onwards, leaving the company with limited
revenue visibility.
CBPL also faces concentration risk as all its projects are located
in Bhopal and surrounding areas. Fitch notes that an economic
downturn or a decline in real estate demand would add pressure to
sales realization. However, the company had successfully repaid
INR26 million out of INR39 million term loan and the repayment of
rest INR13 million is due by 31 March 2011.
Negative rating guidelines include sizeable deterioration of
CBPL's EBITDAR margins to below 10% as well as of total adjusted
debt net of cash/operating EBITDAR margins to beyond 8.0x. The
company's failure to achieve financial closure for the upcoming
projects would also impact the ratings negatively. An improvement
in its total adjusted debt net of cash/ to operating EBITDAR to
below 5.0x and timely execution of the upcoming projects would be
positive for the ratings.
CBPL is a real estate developer in Bhopal, MP, and has been
operating since 2000. It belongs to the C.I. Group of Companies,
which has a dealership of automobiles and motor bikes. In FY10,
CBPL recorded revenues of INR98.6 million (FY09: INR 30.1
million), operating EBITDAR margin of 14% (FY09; 12.5%), and net
income of INR0.6 million (FYE09; INR1.6 million).
CI FINLEASE: Fitch Assigns National Long-Term Rating at 'BB-'
-------------------------------------------------------------
Fitch Ratings has assigned India's CI Finlease Ltd. a National
Long-Term rating of 'BB-(ind)' with Stable Outlook. The agency
has also assigned a 'BB-(ind)' rating to its fund-based limits of
INR80 million.
The ratings reflect CFin's robust sales performance as the largest
Hyundai car dealer in Bhopal, Madhya Pradesh (M.P). The company
witnessed a compounded annual growth rate of 38% in revenue over
FY06-FY10. CFin faces low competition as there is only one other
Hyundai dealer in Bhopal.
The ratings are constrained by the small scale of CFin's
operation, its low margins and high working capital requirements.
Operating margins have ranged between 1.5% and 3%. Volatility in
its working capital requirements resulted in negative cash flow
from operation in FY09, although CFO turned positive in FY10 with
INR3 million. Inventory has been a major contributor to working
capital requirements but CFin has been successful in keeping
average inventory at around 25 days.
CFin's total adjusted debt/operating EBITDAR was 2.36x at FYE10.
Any deterioration in the working capital cycle could add pressure
to liquidity and leverage.
Sizeable reduction in financial leverage with strong improvement
in liquidity on a sustained basis would have a positive impact on
ratings. Conversely, a slowdown in demand impacting CFin's
revenues and EBITDAR margins, deterioration in financial leverage
above 3.5x and interest coverage below 1.2x would have a negative
effect on ratings.
Apart from selling cars & related accessories CFin also provides
financial services for their purchase. The company has been a
Hyundai dealer since 2005-06. It belongs to the C.I. Group of
Companies which has a presence in building & construction.
In FY10, CFin recorded revenues of INR651.5 million, up 52.6% yoy.
Net income was INR6.2 million, up from INR2.7 million at FYE09 and
operating EBITDAR margin was 2.7% versus 1.6%. Total adjusted
debt net of cash/operating EBITDAR decreased to 2.15x at FYE10
from 6.4x at FYE09.
DESMO EXPORTS: CRISIL Cuts Rating on INR50MM Cash Credit to 'BB'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Desmo Exports Ltd to 'BB/Stable' from 'BB+/Stable'; the rating
on the short-term facilities has been reaffirmed at 'P4+'.
Facilities Ratings
---------- -------
INR50 Million Cash Credit BB/Stable (Downgraded from
'BB+/Stable')
INR200 Million Letter of Credit P4+ (Reaffirmed)
The downgrade reflects CRISIL's belief that Desmo's financial risk
profile will remain constrained over the medium term, due to more-
than-expected debtor levels, and higher inventory levels, leading
to larger-than-expected working capital requirements.
The ratings reflect the deterioration in Desmo's financial risk
profile, marked by high total outside liabilities to tangible net
worth ratio, due to larger-than-expected working capital
requirements, and modest scale of operations and net worth. These
weaknesses are partially offset by Desmo's strong sourcing
capabilities and its diversified product and customer profile.
Outlook: Stable
CRISIL believes that Desmo will maintain its market position in
the chemical trading business, on account of the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if the company is able to improve its working
capital management and significantly increase its operating margin
and cash accruals. Conversely, the outlook may be revised to
'Negative' in case of significant decline in business volumes,
revenues or profitability, coupled with larger working capital
requirements, or in case of more-than-expected deterioration in
Desmo's liquidity.
About Desmo Exports
Established in 1993, Desmo, which is promoted and managed by
Mr. Dilipkumar Jindal, is a closely held public limited company.
It trades in 25 types of chemicals, including citric acid,
phosphoric acid, paraffin wax and dicyandiamide. The company has
marketing offices in China, from where it procures the majority of
its supplies. Desmo's revenues increased at a compound annual
growth rate of 95% over the three years ended March 31, 2010.
Desmo reported a profit after tax (PAT) of INR11 million on net
sales of INR660 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR14 million on net sales
of INR493 million for 2008-09.
FITEX INDUSTRIES: CRISIL Rates INR145MM Packing Credit at 'P4'
--------------------------------------------------------------
CRISIL has assigned its 'P4' ratings to the bank loan facilities
of Fitex Industries Ltd.
Facilities Ratings
---------- -------
INR145.0 Million Packing Credit P4 (Assigned)
INR30.0 Million Letter of Credit P4 (Assigned)
The ratings reflect FIL's weak financial risk profile, marked by
high gearing and weak debt protection metrics, high working
capital requirements, and small scale of operations in the
fragmented auto components industry. These rating weaknesses are
partially offset by the extensive industry experience of FIL's
promoters.
FIL (formerly Fitex Manufacturing Engineers Pvt Ltd) incorporated
in 1981, is promoted by Mr. Sital Prakash Gupta. The company
manufactures and exports auto components, stamping (suspension)
components, fence decorative parts (sheet metal components), hand
tools, industrial fasteners, auto parts, scaffolding, and hardware
items. The company's facilities are located in Ludhiana (Punjab)
and exports around 70% of its sales.
FIL reported a profit after tax (PAT) of INR 1 million on net
sales of INR 479 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR 1 million on net
sales of INR681 million for 2008-09.
GLOSTER CABLES: CRISIL Reaffirms 'BB-' Rating on Cash Credit
------------------------------------------------------------
The ratings on the bank facilities of Gloster Cables Ltd continue
to reflect GCL's large working capital requirements, and exposure
to risks related to volatility in copper prices, and to intense
competition in the cable industry. These rating weaknesses are
partially offset by the benefits that the company derives from the
regular infusion of funds by its promoters, and its established
market position in the low-tension and high-tension cable segments
in India.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit BB-/Negative (Reaffirmed)
INR358.00 Million Working Capital BB-/Negative (Reaffirmed)
Demand Loan
INR120.00 Million Long-Term Loan BB-/Negative (Reaffirmed)
INR120.00 Million Letter of Credit P4 (Reaffirmed)
INR80.00 Million Bank Guarantee P4 (Reaffirmed)
Outlook: Negative
CRISIL believes that GCL's financial risk profile, particularly
its liquidity, will remain constrained, over the medium term, by
the company's tightly matched cash accruals vis-…-vis its debt
obligations. The rating may be downgraded if there is further
deterioration in the company's financial risk profile, because of
lower-than-expected cash accruals. Conversely, the outlook may be
revised to 'Stable' if GCL reports more-than-expected
profitability and improvement in capital structure, thereby
strengthening its financial risk profile.
Update
GCL's revenues in 2009-10 (refers to financial year, April 1 to
March 31) were marginally higher than CRISIL's expectations
because of the upturn in the end-user (engineering) industry,
along with higher commodity prices, towards the end of the year.
While GCL reported an improvement in operating profits as compared
to 2008-09, it continued to incur profit after tax level losses,
primarily because of its higher interest and finance charges. The
company's operating margin is expected to increase marginally,
driven by the better operating efficiency achieved from the
purchase of machinery of INR20 million in 2009-10 to ensure
continuous production.
However, GCL's financial risk profile is expected to remain weak,
marked by a high gearing, a small net worth, and weak debt
protection metrics. During the year, the company contracted
additional debt of INR110 million to fund its incremental working
capital requirements. Moreover, the company's liquidity is
expected to remain weak primarily because of the highly working-
capital-intensive nature of its business. GCL had a high bank
limit utilization of 93.4% over the 12 months through December
2010. The company has debt obligations of around INR25 million to
INR35 million per annum over the medium term. The company's cash
accruals, though expected to improve from those in the past, will
remain tightly matched with the increasing debt obligations.
GCL reported a net loss of INR38 million on net sales of INR1820
million for 2009-10, against a net loss of INR60 million on net
sales of INR2069 million for 2008-09.
About Gloster Cables
GCL, incorporated in 1995 by Mr. Ashish Modi and Mr. Radhakishan
Rathi, manufactures LT and HT cables. In 1996, the company entered
into a technical and marketing collaboration with Fort Gloster
Industries Ltd in Kolkata (West Bengal). GCL's cables are sold
under the Gloster brand name. In 2008, GCL set up a dedicated
plant for manufacturing smaller cross-section cables, thereby
enhancing its installed capacity to 18,500 kilometres (km) per
annum from 15,100 km in the previous year.
KADAKIA PLASTICS: ICRA Assigns 'LC' Rating to INR5cr Limits
-----------------------------------------------------------
ICRA has assigned a long term rating of 'LC' to the INR 5 crores
fund-based limits of Kadakia Plastics and Chemicals Pvt. Ltd.
ICRA has also assigned an 'A5' rating to the INR 3 crores Non-Fund
based limits of KPCL. The ratings are constrained by the delays
in debt servicing for the past one year & stretched liquidity
profile as reflected in consistent over-drawls of the bank limits
sanctioned and devolvement of LCs. The ratings also take into
account its small scale of operations, thin margins in the
business of PVC compounds which has low entry barriers, an
exposure to risks of commodity price fluctuations in input
materials as well as the high working capital intensity. The
ratings however factor the company's long track record in the
business, technically competent promoters and moderately favorable
demand potential for PVC compounds.
Kadakia Plastics & Chemicals Pvt. Ltd, incorporated in 1973,
promoted by Mr. Shubash Kadakia, is into the business of
manufacturing PVC compounds. The company started its operations
at a small unit based in Andheri-MIDC Area, Mumbai, which was
later shifted to Silvassa, Union Territory in 1996. The company
has gradually increased its capacity with current installed
capacity of 15,000 TPA at Silvassa Unit. During FY 2010, the
company recorded OI of INR 22 Cr. and PAT of INR 0.5 Cr.
K.P. BUILDCON: CRISIL Downgrades Rating on Cash Credit to 'BB-'
---------------------------------------------------------------
CRISIL has downgraded its ratings on K.P. Buildcon Pvt Ltd's bank
facilities to 'BB-/Negative/P4' from 'BB/Stable/P4+'.
Facilities Ratings
---------- -------
INR127.5 Million Cash Credit Limit BB-/Negative (Downgraded
from 'BB/Stable')
INR30.0 Million Bank Guarantee P4 (Downgraded from 'P4+')
The downgrade reflects deterioration in KP's business risk profile
as a result of decline in demand for its products and pressure on
its profitability in 2010-11 (refers to financial year, April 1 to
March 31). There has been a decline in demand from KP's key
customers in the telecommunications industry. The downgrade also
factors significant deterioration in KP's liquidity caused by
unprecedented increase in its debtor levels. Decline in inflow of
orders and increase in debtor levels have been caused by reduced
demand from key customers, such as Indus Tower Ltd (rated
'AA/Stable/P1+' by CRISIL), Vodafone Essar Gujarat Ltd, and Tata
Teleservices Ltd (rated 'A/Stable/P1' by CRISIL).
Although KP has undertaken initiatives to diversify its revenue
profile by signing contracts with players operating in the solar
energy and wind energy generation spaces, CRISIL believes that
KP's limited expertise in these sectors, financial inflexibility
(because of an unprecedented stretch in its working capital
cycle), and timelines with respect to revenue booking could
constrain the company's business risk profile over the medium
term.
The ratings reflect KP's below-average financial risk profile and
deteriorating business risk profile, as a result of slowdown in
demand from the telecommunications sector and an unprecedented
stretch in working capital cycle. These rating weaknesses are
partially offset by the benefits that KP derives from its
promoters' experience in the industry.
Outlook: Negative
CRISIL believes that the pressure on the KP's earnings and
profitability will continue over the near term because of the
decline in demand for telecommunication towers. The ratings may
be downgraded if KP's sales and profitability weaken more than
expected, driven by a prolonged downturn in the telecommunication
tower industry, resulting in lesser-than-expected cash accruals,
or if the company's working capital cycle stretches beyond
expectation. The outlook may be revised to 'Stable' if KP
diversifies its clientele and increases its revenues and
profitability.
About K.P. Buildcon
KP, incorporated in 2001, installs, manufactures, and maintains
telecommunication towers (steel structures). It has capacity to
manufacture, fabricate, and galvanise 3600 tonnes per annum of
towers, at its facility in Surat (Gujarat). The company has strong
relationships with all the major telecommunication players.
KP reported a profit after tax (PAT) of INR9.8 million on net
sales of INR430.1 million for 2009-10, against a PAT of INR10.4
million on net sales of INR304.1 million for 2008-09.
LOHIA PAPER: CRISIL Reaffirms 'B+' Rating to INR40MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the proposed long-
term bank facility of Lohia Paper & Board Pvt Ltd, while
reaffirming the rating on LPBPL's other bank facilities at
'B+/Stable'.
Facilities Ratings
---------- -------
INR40 Million Cash Credit B+/Stable (Reaffirmed)
INR51.1 Million Rupee Term Loan B+/Stable (Reaffirmed)
INR9.4 Million Proposed LT Bank B+/Stable (Assigned)
Loan Facility
The rating reflects LPBPL's weak financial risk profile, small
scale of operations, exposure to intense competition in the
newsprint paper segment, and susceptibility to adverse regulatory
changes. These rating weaknesses are partially offset by the
benefits that LPBPL derives from its established clientele.
Outlook: Stable
CRISIL believes that LPBPL will continue to benefit over the
medium term from its established clientele and healthy operating
profitability. The outlook maybe revised to 'Positive' if LPBPL's
financial risk profile improves, most likely because of healthy
topline growth or more-than-expected cash accruals. Conversely,
the outlook maybe revised to 'Negative' if the company's financial
risk profile deteriorates, most likely because of larger-than-
expected, debt-funded capital expenditure (capex).
Update
In 2009-10 (refers to financial year, April 1 to March 31), LPBPL
achieved optimum capacity utilisation, with a year-on-year topline
growth of 160%, in line with CRISIL's expectations. LPBPL's
operating margin in 2009-10 remained at the previous year's level.
Although LPBPL's working capital requirements have reduced, with
gross current asset level of 145 days as on
March 31, 2010, against 162 days as on March 31, 2009, its
creditor level has declined to 19 days as on March 31, 2010, from
46 days as on March 31, 2009, resulting in the company contracting
debt to meet its working capital requirements.
LPBPL has added writing and printing paper (WPP; which caters to
about 10 to 15% of its revenues) to its product line. The company
has expanded its operations to Siliguri (West Bengal), Bihar, and
Jharkhand. It has added customers, including Dainik Samana, to
its clientele. Moreover, LPBPL has exported small volumes of WPP
to Sri Lanka in 2010-11.
LPBPL reported a profit after tax (PAT) of INR3.6 million on net
sales of INR244.2 million for 2009-10, against a PAT of INR0.6
million on net sales of INR92.8 million for 2008-09.
About Lohia Paper
Set up in 2005, LPBPL manufactures newsprint paper from waste
paper. The company's plant in Durg (Chhattisgarh) commenced
commercial production in October 2008, and has capacity of 12,000
tonnes per annum.
MARUDHAR INDUSTRIES: ICRA Reaffirms 'LBB+' Rating on Loan
---------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating to the INR4.75 crores
(reduced from INR 7.75 crores) term loan facility and INR 15.0
crores (enhanced from INR 12.0 crores) fund based facility of
Marudhar Industries Limited. ICRA has assigned a 'Stable' outlook
on the long term rating. ICRA has also reaffirmed the 'A4+'
rating to the INR 3.55 crores short term non-fund based limits of
MIL.
The ratings continue to remain constrained by the moderate
financial risk profile as indicated by its profitability and
return indicators; sensitivity of its profitability to import duty
reduction; and moderate level capex plans which would limit the
improvement in the financial profile in the near term. The
ratings also reflect limited bargaining power with the raw
material suppliers; vulnerability of margins to raw material price
fluctuations due to cyclicality associated with the aluminium
industry and the high competitive nature of the industry. The
ratings, however, favorably factor in the established track record
of the company in aluminium foils and flexi packaging segment;
integrated operations of MIL reducing dependence on the primary
producers of HR/ CR coils; established business relationship with
various customers and stable demand for the products from the end
user industries.
About Marudhar Industries
Marudhar Industries Limited was incorporated in May, 1983 by
Mr. N. P Jain in West Bengal as M/s Kartic Traders and Exporters
Ltd. In 1993-94, Mr. S.K. Jain and Mr. Ukchand Jain were taken on
the Board of this Company. They merged the two Group Companies
viz. M/s Marudhar Metal Private Limited and Salecha Foils and
Strips Pvt. Ltd. with M/s Kartic Traders and Exporters Ltd in 1995
and renamed as Marudhar Industries Ltd. MIL is currently engaged
in the manufacturing of aluminium foils and foil stock/ coils,
which goes for packaging applications. It is also involved in the
flexi-packaging business whereby it undertakes designing and
making packaging pouches & films for its customers. Recent Results
For the year FY 10, the company reported an operating income of
INR 78.17 crores and profit after tax of INR 0.90 crores.
MEENAKSHI ENERGY: Fitch Puts 'BB+' Rating on Senior Bank Loans
--------------------------------------------------------------
Fitch Ratings has placed India's Meenakshi Energy Private Ltd's
INR10,050 million senior project bank loans, rated 'BB+(ind)', on
Rating Watch Negative.
The rating action follows MEPL's intention to embark on a
significant debt-funded expansion project. The company proposes
to enhance the capacity of its 270MW coal-based thermal power
project (phase I - whose debt is rated by Fitch) to 300MW; at the
same time, it has commenced construction of two new units of 300MW
thermal power plants (phase II of 600MW). Once the two phases are
completed, MEPL's generating capacity will reach 900MW.
Fitch is in discussions with the company to obtain complete
details of the capacity addition relating to phase I and phase II
projects, including the finalized project cost, sources of
funding, implementation schedule, fuel supply contracts, loan
agreements and terms of consent from existing senior lenders. The
RWN will be resolved after the agency has completed a detailed
analysis.
MEPL, promoted by the Hyderabad-based Meenakshi group, initially
embarked on implementing a 270MW coal-based thermal power project
(phase I) in the state of Andhra Pradesh at INR13,400 million.
MURLIWALA AGROTECH: CRISIL Reaffirms 'BB-' Rating on Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Murliwala Agrotech Pvt
Ltd continue to reflect Murliwala's weak financial risk profile
marked by a small net worth, a moderately high gearing, and weak
debt protection metrics.
Facilities Ratings
---------- -------
INR110.0 Million Cash Credit BB-/Stable (Reaffirmed)
INR30.0 Million Bank Guarantee P4+ (Reaffirmed)
The ratings also factor in Murliwala's customer concentration,
susceptibility to volatility in raw material prices, and working-
capital-intensive operations. These rating weaknesses are
partially offset by the benefits that Murliwala derives from its
promoters' experience in the agricultural commodities and weaning
foods businesses.
Outlook: Stable
CRISIL believes that Murliwala's scale of operations will remain
moderate and its profitability, vulnerable to volatility in raw
material prices, over the medium term. Murliwala's financial risk
profile is expected to remain constrained by large working capital
requirements. The outlook may be revised to 'Positive' if
Murliwala's financial risk profile, particularly liquidity,
improves significantly, supported by improvement in its
receivables collection. Conversely, the outlook may be revised to
'Negative' if a sharp increase in food grain prices adversely
impacts the company's revenues and profitability, or if its
receivables position deteriorates further.
Update
In 2009-10 (refers to financial year, April 1 to March 31),
Murliwala's operating and financial performance have been in line
with CRISIL's estimates. The company's working capital
requirements in 2009-10 were also in line with earlier estimates
for 2009-10. However, Murliwala's debt as on March 31, 2010, was
lower than CRISIL's expectation, because of conversion of
unsecured debt of INR50 million from promoters into equity
capital. This has also resulted in a sharp increase in net worth
to INR106.6 million as on March 31, 2010, and lowering in gearing
to 1 time as on the same date.
Over the medium term, Murliwala's sales are expected to be higher-
than-earlier expectations because of successful renewal of tenders
for Rajasthan and Gujarat state governments for supply of weaning
foods. Though Murliwala's cash accruals are expected to improve,
the same are not expected to be commensurate with the incremental
working capital requirements. The company's working capital
requirements in 2010-11 have increased sharply on the back of this
increased scale of operations and stretch in receivables period
with respect to the Gujarat state government. The large working
capital requirements vis-a-vis small cash accruals have led to
weak liquidity, as reflected in Murliwala's almost fully utilized
bank lines for the nine months through December 31, 2010, despite
increase in bank limits to INR92.5 million from INR45.0 million.
Thus, Murliwala's gearing is expected to deteriorate on the back
of large, incremental working capital borrowings.
Murliwala reported a profit after tax (PAT) of INR6.0 million on
net sales of INR699.7 million for 2009-10, against a PAT of INR7.0
million on net sales of INR438.2 million for 2008-09.
About Murliwala Agrotech
Incorporated in 1996, Murliwala manufactures ready-to-eat weaning
foods and nutritional supplements for sale to Rajasthan and
Gujarat state government departments, under the Integrated Child
Development Services programme. These items are for free
distribution to below-poverty-line families in rural India.
Murliwala has a manufacturing unit in Udaipur (Rajasthan), with
capacity of around 54,270 tonnes per annum. Murliwala also
exports a small proportion of baby food supplements to Africa,
through the United Nations International Children's Emergency
Fund.
NOBLE INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR25MM Term Loan
------------------------------------------------------------------
CRISIL has reaffirmed its 'D/P5' ratings to the bank loan
facilities of Noble Industries. The ratings reflect instances of
delay by the Noble Industries in servicing its debt; the delays
have been caused by the group's weak liquidity.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit D (Reaffirmed)
INR25.0 Million Term Loan D (Reaffirmed)
INR50.0 Million Letter of Credit P5 (Reaffirmed)
The ratings also reflect Noble group's weak financial risk
profile, marked by high gearing and weak debt protection metrics,
and its susceptibility to customer concentration in revenue
profile. These rating weaknesses are partially offset by the
group's competitive advantage from its integrated operations for
manufacturing consumer durables.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of NI, Airvision India Pvt Ltd, and Noble
Moulds Pvt Ltd, together referred to as the Noble group. This is
because all the entities are controlled by the same management and
are engaged in the same businesses: manufacturing of, and trading
in, consumer durables. Also, the entities derive considerable
operational, financial, and business synergies from each other.
About the group
AIPL, set up in 1995, has facilities for manufacturing television
(TV) chassis and assembling TV sets. Its facilities are located in
Noida (Uttar Pradesh) and Bahadurgarh (Haryana). The company, in
recent years, has been assembling televisions for Electronics
Corporation of Tamil Nadu Ltd, a Government of Tamil Nadu (GoTN)
enterprise.
NMPL, set up in 1999, has facilities to manufacture mouldings and
other plastic products used in electronic goods. Its facilities
are located in Noida. The company procures the assembled
television sets from AIPL, and sells them to ELCOT.
NI was set up as a proprietorship firm by Mr. Sarabjeet Singh in
February 2006 in the special economic zone at Haridwar
(Uttarakhand) to manufacture TV sets, air-conditioners, washing
machines, and water dispensers. NI's manufacturing facility was
hit by a major fire in September 2009, resulting in loss of
machinery and goods. NI is at present operating with a small
capacity set up in the factory premises, and a new facility is
being set up in place of the previous one. Commencement of
operations at the new facility is expected by 2011-12 (refers to
financial year, April 1 to March 31).
The Noble group reported a profit after tax (PAT) of INR3.1
million on net sales of INR1.46 billion for 2009-10 as against a
PAT of INR30.4 million on net sales of INR1.48 billion for
2008-09.
NOBLE MOULDS: CRISIL Reaffirms 'C' Rating on INR50MM Cash Credit
----------------------------------------------------------------
CRISIL has reaffirmed its rating of 'C/P4' to the bank facilities
of Noble Moulds Pvt Ltd, a Noble group entity.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit C (Reaffirmed)
INR100.0 Million Letter of Credit P4 (Reaffirmed)
The ratings reflect the group's stretched liquidity profile,
resulting in delays in debt repayment in Noble Industries (NI),
another entity in the Noble group. The ratings also reflect Noble
group's weak financial risk profile, marked by high gearing and
weak debt protection metrics, and its susceptibility to customer
concentration in revenue profile. These rating weaknesses are
partially offset by the group's competitive advantage from its
integrated operations for manufacturing consumer durables.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of NMPL, Noble Industries and Airvision
India Pvt Ltd, together referred to as the Noble group. This is
because all the entities are controlled by the same management and
are engaged in the same businesses: manufacturing of, and trading
in, consumer durables. Also, the entities derive considerable
operational, financial, and business synergies from each other.
About Noble Moulds
NMPL, set up in 1999, has facilities to manufacture mouldings and
other plastic products used in electronic goods. Its facilities
are located in Noida (Uttar Pradesh). The company procures the
assembled television sets from AIPL, and sells them to ELCOT.
AIPL, set up in 1995, has facilities for manufacturing television
(TV) chassis and assembling TV sets. Its facilities are located in
Noida and Bahadurgarh (Haryana). The company, in recent years,
has been assembling televisions for Electronics Corporation of
Tamil Nadu Ltd (ELCOT), a Government of Tamil Nadu (GoTN)
enterprise.
NI was set up as a proprietorship firm by Mr. Sarabjeet Singh in
February 2006 in the special economic zone at Haridwar
(Uttarakhand) to manufacture TV sets, air-conditioners, washing
machines, and water dispensers. NI's manufacturing facility was
hit by a major fire in September 2009, resulting in loss of
machinery and goods. NI is at present operating with a small
capacity set up in the factory premises, and a new facility is
being set up in place of the previous one. Commencement of
operations at the new facility is expected by 2011-12 (refers to
financial year, April 1 to March 31).
The Noble group reported a profit after tax (PAT) of INR3.1
million on net sales of INR1.46 billion for 2009-10 as against a
PAT of INR30.4 million on net sales of INR1.48 billion for
2008-09.
PRABIR FOODSTUFF: CRISIL Assigns 'B' Rating to INR25MM Bank Loan
----------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to Prabir Foodstuff
Factory's bank facilities.
Facilities Ratings
---------- -------
INR200.00 Million Cash Credit B/Stable (Assigned)
INR25.00 Million Proposed LT B/Stable (Assigned)
Bank Loan Facility
The rating reflect Prabir's below-average financial risk profile,
marked by small net worth, high gearing, and weak debt protection
metrics, large working capital requirements, and vulnerability of
margins to fluctuations in raw material prices, vagaries in
monsoon, and adverse regulatory changes. These rating weaknesses
are partially offset by Prabir's promoter's experience in the rice
business and healthy growth prospects in the rice industry.
Outlook: Stable
CRISIL believes that Prabir's financial risk profile will remain
weak over the medium term because of its large working capital
requirements. The outlook may be revised to 'Positive' if Prabir
reports large cash accruals and if there is significant
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' in case of deterioration in the firm's
capital structure, or if there are pressures on its profitability
because of a steep decline in rice prices.
Set up in 2005 by Mr. Kuljit Singh, Prabir mills and sorts basmati
and non-basmati rice. It sells its rice under the brands
Victoria, 777, KR and Flying Horse. The firm has a rice milling
and sorting facility in Amritsar (Punjab), with capacity of 6
tonnes per hour.
Prabir reported a profit after tax (PAT) of INR0.9 million on net
sales of INR505.6 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR8.1 million on net sales
of INR478.6 million for 2008-09.
PRAMANIK RETAIL: ICRA Reaffirms 'LB' Rating on INR35cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the 'LB' rating to the INR 35.00 crore
(enhanced from INR15.00 crore) term loans and INR 6.00 crore,
long-term, fund based facilities of Pramanik Retail private
Limited.
The rating reaffirmation takes into account presence of promoters
in garment retailing activities for over three decades, strong
reputation in Mumbai readymade garment retailing market,
improvement in operating and net margins of operations in FY 2010
and good early performance demonstrated by the supermarket
business. The rating, however, remains constrained by the small
scale of operations with reach limited to Mumbai City; debt-funded
expansion pursued by the company leading to deterioration of
capital structure; and suppressed interest and debt coverage
indicators with strained cash flow indicators for the company.
The company has recently entered into the supermarket business and
has plans to expand aggressively; however, the sustainability of
supermarket operations and scalability of garment retailing
remains to be seen.
Pramanik Retail Private Limited is part of the Palai Group which
has has presence in Garment Retail, Value Retail, Construction,
Banquet Halls, and Power. The name of the company was changed
from Pramanik Clothing Private Limited to PRPL in January 2010.
Starting with a small shop in Matunga, the business has grown
gradually over the years to currently three showrooms, operatng
under the brand name Pramanik, one each at Matunga, Dadar and
Kurla. While the showroom at Matunga caters to Men's as well as
Women's wear, the showrooms at Dadar and Kurla cater to only
women's wear. The company marked its entry in value retail
business through starting of supermarket under the name "Dhanraj
Supermarket" in Kurla in April FY 2011.
Recent Results
For the twelve months ending March 31, 2010, PRPL reported profit
after tax (PAT) of INR 1.6 crore on an operating income of
INR22.8 crore as compared to a profit of INR 0.7 crore on an
operating income of INR 21.8 crore for the twelve months ending
March 31, 2009.
RENUKA GLASS: CRISIL Assigns 'D' Rating on INR30MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'D/P5' rating to the bank facilities of
Renuka Glass Designers Pvt Ltd.
Facilities Ratings
---------- -------
INR30.00 Million Cash Credit D (Assigned)
INR4.50 Million Standby Line of Credit D (Assigned)
INR66.70 Million Term Loan D (Assigned)
INR4.80 Million Proposed Long-Term Bank D (Assigned)
Loan Facility
INR4.00 Million Letter of Credit P5 (Assigned)
The rating reflects delays by RGDPL in servicing its debt; the
delays have been because of RGDPL's weak liquidity.
RGDPL has a weak financial risk profile, marked by small net
worth, high gearing, and moderate debt protection metrics, small
scale of operations, large working capital requirements, and is
exposed to implementation-related risks associated with its
ongoing project. The company, however, benefits from its
promoters' extensive industry experience.
RGDPL manufactures glass basins, tiles, and mosaics, as well as
stainless steel mosaics. Basins contribute about 50% to the
company's total revenues, while mosaics and tiles contribute the
rest. The company sells its products under the brand, Inex.
RGDPL's production plant in Nagpur (Maharashtra) has capacity of
21,000 pieces of glass basins and 550,000 square foot of glass
mosaics per annum.
RGDPL reported a profit after tax (PAT) of INR1.51 million on net
sales of INR95.64 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.06 million on net
sales of INR71.64 million for 2008-09.
ROSHNI DEVELOPERS: ICRA Assigns 'LBB' Rating to INR23cr Loan
------------------------------------------------------------
ICRA has assigned a long term rating at 'LBB' to the INR23.00
crore cash credit facility of Roshni Developers Private Limited.
Further, the long term rating carries a stable outlook. The
assigned rating takes into account the company's association with
INDU Projects Ltd and its technical and experienced management
team. However, the rating is constrained by significant market
risk as substantial portion is still to be sold and high
geographic and project concentration risk with its biggest project
accounting for bulk of its operating income.
Roshni Developers Private Limited was incorporated in 2005 to
execute construction jobs either directly or on subcontract or
joint venture basis. The company has undertaken the construction
of villas and flats in the Indu Aranya project and is currently
executing the flats construction at Indu Annexe project,
Hyderabad. Indu Projects Limited holds 40% of the shareholding of
RDPL and is the sole client for the company. Recent Results RDPL's
revenue for FY10 was INR18.0 crore, which translated to a net
profit of INR0.57 crore as compared with revenue of INR14.3 crore
and net profit of INR0.43 crore in FY09.
SAMRUDDHA RESOURCES: CRISIL Cuts Rating on Cash Credit to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Samruddha Resources Ltd to 'D/P5' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR300 Million Cash Credit D (Downgraded from
'B+/Stable')
INR150 Million Working Capital D (Downgraded from
Demand Loan 'B+/Stable')
INR320 Million Proposed LT Bank D (Downgraded from
Loan Facility 'B+/Stable')
INR55 Million Bank Guarantee P5 (Downgraded from 'P4')
The rating downgrade has been driven by SRL's delays in servicing
its rated term loan facilities. The company delayed monthly
repayments of INR10 million due in November and December on its
working capital demand loan. The delays were caused by SRL's poor
liquidity. The company was unable to transport iron ore from its
mine to Redi port following protests from residents in Kalne
village where it operates its mine. As a result, cash flows from
the company's sales from October 2010 to January 2011 were
insufficient to repay its debt obligations. SRL's liquidity has
alleviated after inflows from three shipments were received in
February 2011; the company was able to repay the overdue amount
consequently.
SRL is vulnerable to factors inherent in the mining industry,
geographical and customer concentration, and susceptibility of
margins to volatility in iron ore prices and in the value of the
Indian rupee against the US dollar. However, SRL has moderate net
worth and gearing, and benefits from its established relationships
with international customers.
About Samruddha Resources
Incorporated in 1997, Mumbai-based SRL (formerly known as
Samruddha Overseas Ltd), is currently engaged in mining and
trading in iron ore. The company was previously engaged in
trading in and export of iron ore, cotton yarn, coal, and grey
fabrics. Trading operations in cotton yarn and grey fabrics
business is now carried through Samruddha International Ltd and
its subsidiary Sunline Exports Ltd respectively. SRL's mines are
located in the Sindhdurg District of Maharashtra.
For 2009-10 (refers to financial year, April 1 to March 31), SRL
reported a net profit of INR134.00 million on net sales of INR1.51
billion, against a PAT of INR14.00 million on net sales of INR1.52
billion for the previous year.
SATHYA GRANITES: CRISIL Reaffirms 'B+' on INR150MM Cash Credit
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Sathya Granites
continues to reflect Sathya's average financial risk profile,
marked by moderate gearing and net worth, and small scale of
operations.
Facilities Ratings
---------- -------
INR150.0 Million Cash Credit B+/Stable (Reaffirmed)
The rating also factors in Sathya's supplier concentration in
revenue profile, and susceptibility to cyclicality in the end-user
steel industry and to adverse regulatory changes. These rating
weaknesses are partially offset by the benefits that Sathya
derives from its strategic location and from its proprietor's
industry experience.
Outlook: Stable
CRISIL believes that Sathya will maintain its market position over
the medium term on the back of its proprietor's industry
experience. The outlook may be revised to 'Positive' if there is a
considerable improvement in Sathya's revenues and profitability
over the medium term, without deterioration in the capital
structure. Conversely, the outlook may be revised to 'Negative'
in case of sharp decline in revenues because of adverse government
regulations, larger-than-expected, debt-funded capital expenditure
(capex) impacting the financial risk profile, or any unrelated
fund diversion to group concerns.
About Sathya Granites
Set up in 1991 by Mr. P K Pounraj, Sathya processes waste mineral
dump to produce crushed iron ores and fines. The iron ore fines
are mainly exported, which usually constitutes around 90% of the
total sales, and the crushed ores are sold in the domestic market.
The promoter plans to reconstitute Sathya as a partnership firm,
with his wife as partner. Sathya procures iron ore from Mysore
Minerals Ltd's mines in Bellary (Karnataka) on tender basis.
Sathya has capacity of 300 tonnes per hour for processing iron
ore. The firm intends to undertake capex of around INR700.0
million towards purchase of its own mine in Chitradurga district
(Karnataka) in 2011-12 (refers to financial year, April 1 to March
31).
Sathya reported a profit after tax (PAT) of INR30.59 million on
net sales of INR621.76 million for 2009-10, against a PAT of
INR26.97 million on net sales of INR629.02 million for 2008-09.
SREE PAVAN: ICRA Assigns 'LBB' Rating to INR10cr Bank Limits
------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB' to the INR 10.0
crore bank limits of Sree Pavan Traders. The outlook on long term
rating is Stable. ICRA has also assigned an 'A4' rating to the
INR5.0 crore short term fund based bank facilities of SPT.
The rating takes into account SPT's moderate scale of operations,
its low profit margins and its stretched cash flows from
operations on account of its high working capital requirements.
Moreover, in absence of firm sale contracts, SPT is exposed to un-
favorable price movements. Nevertheless, the ratings factor in
the long experience of the promoters in trading business; SPT's
established relationship with customers and its modest gearing
level.
About Sree Pavan
Formed in the year 2005 as partnership firm, Sree Pavan Trades is
primarily in the business of trading coal, iron ore, and steel
products. Currently the firm caters primarily to the needs of
players in the Bellary region. The firm, a partnership of Mr. S
Basavraj and Mr. S Murali Krishna, is a part of Bellary based S.
Linganna group with diversified operations including TMT
manufacturing, real estate, cold storages, trading etc.
Recent Results
In 2009-10, Sree Pavan Traders reported a net profit of INR 3.6
crore on an operating income of INR182.5 crore as compared to a
profit of INR1.1 crore on an an operating income of INR57.2 crore
in 2008-09.
SHEKHAR RESORTS: ICRA Assigns 'LC+' Rating to INR50cr Term Loan
---------------------------------------------------------------
ICRA has assigned 'LC+' rating to the INR50.0 crore term loan,
INR2.0 crore fund based and INR8.0 crore non-fund based facilities
of Shekhar Resorts Ltd. The assigned rating is constrained by the
irregularity in debt servicing by the company, dependence on a
single hotel property for the entire revenues at-least in the
medium term, high competitive intensity in Agra due to presence of
a number of established hotels in the premium segment which is
expected to intensify further due to significant planned room
additions, significant delays in the commissioning of the hotel
due to design changes and delays in financial closure which has
resulted in cost escalation; and the limited experience of the
promoters in the hospitality industry.
ICRA notes that the limited moratorium on the term loan repayment
from the date of commercial operation coupled with commencement of
the operations towards the end of the main tourist season limits
the financial flexibility and could impact the debt servicing
capacity of the company. In absence of marketing or management
agreement with any hotel chain, SRL would not have access to any
global reservation system unlike other hotels; however this is
mitigated by the fact that most of the advance bookings in the
industry are through tour operators which the company plans to
focus on.
ICRA notes that the tourism industry is cyclical in nature and
vulnerable to exogenous shocks such as geo-political crisis and
disease outbreak. The rating takes into account the favorable
location of the hotel which is in proximity to the main tourist
attraction, Taj Mahal, long term maturity profile of debt with
ballooning repayments coupled with significant contribution of
promoter's equity in the overall capital structure which is
expected to moderate the pressure on the cash flows in the near
term and low execution risk as 112 rooms out of the total 153
rooms have already commenced commercial operations from January
2011. The capital cost structure of the hotel is favorable due to
low land cost as it was purchased about 10 years back. Though
there are a number of premium hotels in the vicinity, this hotel
has been developed as a resort based on Mughal period architecture
which provides competitive advantage and restricts competition to
some extent. Going forward, completion of the project within
scheduled costs and timeline and healthy revenue per available
room would be the key rating sensitivities going forward.
About Shekhar Resorts
SRL was originally incorporated as Vipul Varun Amusement Park
Private Limited in October 1997. The composition of the company
was changed from private limited to public limited in July 2003
and consequently the name was changed to Shekhar Resorts Limited.
SRL is setting up a 153 room Five Star hotel in Agra (Uttar
Pradesh) which is spread across 12 acres. The commercial
operations of 112 rooms started from January 2011 and the
commercial operation of the remaining 41 rooms is expected
by March 2011.
SUPERKING MANUFACTURERS: CRISIL Rates INR13.2M Cash Credit at 'B+'
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank loan
facilities of Superking Manufacturers (Tyre) Pvt Ltd.
Facilities Ratings
---------- -------
INR13.2 Million Cash Credit B+/Stable (Assigned)
INR35 Million Packing Credit B+/Stable (Assigned)
INR30 Million Foreign Discount Bill P4 (Assigned)
Purchase/Foreign Usance Discount
Bill Purchase
INR30 Million Inland Letter of Credit P4 (Assigned)
INR2.5 Million Bank Guarantee P4 (Assigned)
The ratings reflect SMT's vulnerability to fluctuations in raw
material prices, and weak financial risk profile, marked by small
net worth, high gearing, and weak debt protection metrics. These
rating weaknesses are partially offset by SMT's modest product
profile, and ability to withstand cyclicality in the industry.
Outlook: Stable
CRISIL believes that SMT will maintain its credit profile over the
medium term benefiting from its modest product profile and
moderate sales growth. The outlook may be revised to 'Positive'
in case of a significant improvement in profitability resulting in
improvement in debt protection metrics or increase in net worth
base. Conversely, the outlook may be revised to 'Negative' in
case the profitability declines or if the company undertakes a
larger-than-expected debt-funded capital expenditure programme.
About Superking Manufacturers
SMT, incorporated in 1982, is promoted by Mr. M L Dhawan and his
wife Mrs. Pushpa Dhawan. The company manufactures tyres, tubes,
and flaps for agri-applications, two-wheelers, cars utility
vehicles, three-wheelers, forklifts, golf carts, and go carts. Mr
Dhawan has been in the tyre and tube manufacturing business since
1975. SMT has an installed capacity of 20 tonnes per day (tpd)
and operates at 75% utilization level.
SMT reported a profit after tax (PAT) of INR2 million on net sales
of INR421 million for 2009-10 (refers to financial year, April 1
to March 31), as against a PAT of INR1.8 million on net sales of
INR345 million for 2008-09.
VAISHNO INTERNATIONAL: CRISIL Assigns 'BB' Rating on Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Vaishno International Private Limited.
Facilities Ratings
---------- -------
INR95 Million Cash Credit BB/Stable (Assigned)
INR15 Million Standby Line of Credit BB/Stable (Assigned)
INR41.6 Million Rupee Term Loan BB/Stable (Assigned)
INR20 Million Letter of Credit P4+ (Assigned)
INR1.5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Vaishno's modest scale of operations and
limited track record. These rating weaknesses are partially
offset by Vaishno's above-average financial risk profile marked by
healthy debt protection metrics and moderate gearing.
Outlook: Stable
CRISIL believes that Vaishno will maintain its credit profile
primarily because of moderate revenue growth and moderate capital
structure over the medium term. The outlook may be revised to
'Positive' if Vaishno increases its net worth by equity infusion
or generates more-than-expected revenues and profitability leading
to improvement in financial risk profile. Conversely, the outlook
may be revised to 'Negative' if the company's debt protection
metrics are adversely affected because of larger-than-expected
debt-funded capital expenditure, if the company's profitability
declines because of competitive pressures, or if its working
capital management deteriorates.
About Vaishno International
Set up as a partnership firm in 2002 and merged with its group
company Vaishno Furnishings Private Limited in 2010, Vaishno
manufactures polyester-dyed fancy yarn and upholstery fabrics used
in the garments, hosiery, and home furnishing industries. The
company procures polyester yarns and other fabrics from Ludhiana
(Punjab) and Kolkata; it manufactures its products at its two
units in Ludhiana. Of the fancy yarns, about 50% is sold directly
to manufacturers of fabrics, garments, and hosiery goods; the
remaining is sold through brokers and agents in the domestic
market. The upholstery fabrics are sold entirely through brokers
and agents in Mumbai (Maharashtra).
Vaishno reported a profit after tax (PAT) of INR8 million on net
sales of around INR406 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR6 million on net
sales of INR203 million for 2008-09.
VALAY CONSTRUCTIONS: CRISIL Cuts Rating on INR41.6MM Loan to 'D'
----------------------------------------------------------------
CRISIL has downgraded its ratings on Valay Constructions Pvt Ltd's
bank facilities to 'D/P5' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR10.00 Million Cash Credit D (Downgraded from
'B+/Stable')
INR41.60 Million Long-Term Loan D (Downgraded from
'B+/Stable')
INR30.00 Million Bank Guarantee P5 (Downgraded from 'P4')
The downgrade reflects instances of delay by VCPL in servicing its
debt; the delays have been caused by VCPL's weakened liquidity.
VCPL's liquidity has been weakened by delays in realization of
bills to the government departments for which VCPL undertakes
construction projects and continuous large working capital
requirements vis-a-vis its small cash accruals.
VCPL has small scale of operations, is exposed to intense
competition in the civil construction industry, has a below-
average financial risk profile marked by small net worth, and has
high customer and geographical concentration. However, the
company benefits from the extensive industry experience of its
promoters.
Incorporated in 1994 and promoted by Mr. Bhagwan Apparao Tonge,
VCPL undertakes civil construction projects, primarily in the road
and irrigation segments. It is a Class 1A contractor with the
Maharashatra Public Works Department. The company is currently
executing over 10 projects in Maharashtra.
VCPL reported a profit after tax (PAT) of INR10.7 million on net
sales of INR282.5 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR6.3 million on net sales
of INR218.5 million for 2008-09.
WOCKHARDT LTD: Bombay High Court Admits Winding-Up Petition
-----------------------------------------------------------
The Wall Street Journal's livemint.com reports that the Bombay
High Court on Friday admitted a winding-up petition filed by the
creditors of Wockhardt Ltd, allowing a group of aggrieved bond
holders to move an application for the appointment of a
provisional liquidator to take possession of the firm's assets.
The court had completed hearing the case in the last week of
February on the petition filed by Wockhardt's foreign currency
convertible bond, or FCCB, holders, livemint.com says.
Livemint.com relates that a group of bond holders, led by
Singapore-based hedge fund QVT Financial Lp and an overseas unit
of Sun Pharmaceutical Industries Ltd, had filed the petition after
Wockhardt defaulted on redemption of $110 million worth of bonds
in October 2009.
The FCCB holders can now ask the court to appoint a liquidator,
the report notes.
"We have got the order that we wanted in the matter, and can now
move the application to appoint a liquidator, though we are
awaiting the copy of the judgment to take a decision,"
livemint.com quotes Janak Dwarkdas, a lawyer who represented the
bondholders, as saying.
A Wockhardt spokesman said the company will soon appeal against
the high court order, livemint.com reports.
Livemint.com states that while a section of investors in FCCBs,
mainly Indian banks and a few other institutional investors, had
reached a settlement with Wockhardt by restructuring the tenure of
the bonds they held, a few others including QVT, Sun Pharma didn't
agree with the restructuring terms. These investors hold $42
million worth of bonds and almost half of it or $20 million is
held by rival drug maker Sun Pharma through an overseas unit.
"We will surely move an application to appoint a liquidator," a
Sun Pharma spokesman told livemint.com. "There is a due process
to be followed in such cases, and we would follow that process
together with the trustee and other bond holders, that will help
the bond holders to receive their dues, as contained in the
original terms of the FCCB," he said.
According to the report, Wockhardt, after several rounds of
negotiations, had almost settled the FCCB liability with QVT in
2010 offering a higher premium on redemption after extending the
tenure. But Sun Pharma requested the court to hear its views
before a settlement is arrived at.
"The FCCB issue that is still not settled is small in terms of
money, and the bigger liabilities of the company were resolved
through the CDR (corporate debt restructuring)," Wockhardt
chairman Habil Khorakiwala told livemint.com in an earlier
interview.
Wockhardt, which suffered a loss because of its exposure to
foreign currency derivatives in 2008, had to sell some of its
assets to pay lenders and meet other liabilities. The company
which had a debt of around INR3,800 crore, including the FCCB
redemption at that time, also went for a corporate debt
restructuring.
Though large part its loans from lenders such as ICICI Bank Ltd
and State Bank of India were restructured, part of the FCCB
liabilities remained unresolved, livemint.com adds.
About Wockhardt Limited
Wockhardt Limited is an India-based pharmaceutical company. The
Company is a subsidiary of Khorakwala Holdings and Investments
Private Limited. The geographical segments of the Company are
India, the United States/Western Europe and Rest of the World.
The Company's subsidiaries includes Wockhardt Biopharm Limited,
Vinton Healthcare Limited, Wockhardt Infrastructure Development
Limited, Wockhardt UK Holdings Limited, CP Pharmaceuticals
Limited, Wallis Group Limited, The Wallis Laboratory Limited,
Wallis Licensing Limited, Wockhardt UK Limited, Wockhardt France
(Holdings) S.A.S., Girex S.A.S., Niverpharma S.A.S., Laboratories
Negma S.A.S., DMH S.A.S., Phytex S.A.S., Scomedia S.A.S. and Mazal
Pharmaceutique S.A.R.L. In August 2009, the Company completed the
divestment of its Animal Health Division to Vetoquinol, France.
ZIM LABORATORIES: CRISIL Reaffirms 'BB+' Rating on Cash Credit
--------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of ZIM
Laboratories Ltd (ZIM Labs; part of the Unijules group).
Facilities Ratings
---------- -------
INR300 Million Cash Credit BB+/Stable (Reaffirmed)
INR290 Million Long-Term Loans BB+/Stable (Reaffirmed)
INR50 Million Bank Guarantee/ P4+ (Reaffirmed)
Letter of Credit
The ratings continue to reflect the group's aggressive growth
plans and large working capital requirements, leading to pressure
on its liquidity. However, these weaknesses are partially offset
by long standing presence in the areas of pelletisation, taste-
masking and granulation.
Outlook: Stable
CRISIL believes that Zim Labs' debt protection metrics are
expected to remain moderate over the medium term. The outlook may
be revised to 'Positive' if the group's liquidity improves, on the
back of improvement in its working capital management or equity
infusion. Conversely, the outlook may be revised to 'Negative' if
the group's capital structure deteriorates or its debt protection
metrics decline.
About ZIM Laboratories
ZIM Labs, incorporated in 1984, manufactures small formulation
dosages, granules, and pellets. The company is a majority-owned
subsidiary of the Unijules group. In 2007-08 (refers to financial
year, April 1 to March 31), the group acquired a 50.2% stake in
ZIM Labs; it was earlier held directly by the Unijules group's
promoters. ZIM Labs is present in the allopathic segment and is
into manufacturing of tablets, capsules, pellets, and granules.
The company contributed around one-third to the group's revenues
in 2009-10. Nearly 70% of ZIM Labs' revenues are derived from
exports.
ZIM Labs reported a profit after tax (PAT) of INR65 million on net
sales of INR981 million for 2009-10, as against a PAT of INR68
million on net sales of INR792 million for 2008-09.
=========
K O R E A
=========
SAMHWA MUTUAL: Prosecutors to Launch Probe Over Illegal Lending
---------------------------------------------------------------
Yonhap News reports that prosecutors have launched a probe into
Samhwa Mutual Savings Bank over its alleged illegal lending, as
local savings banks suffer from massive debts from construction
companies.
Yonhap relates that the move comes two months after South Korea's
financial regulator halted Samhwa Mutual's operations for six
months for failing to meet regulatory capital requirements and
called for investigation into the bank's lending irregularities.
According to the news agency, the Seoul-based savings bank's debts
exceeded assets by KRW50.4 billion (US$45.2 million) and its
capital adequacy ratio stayed at minus 1.42 percent as of the end
of June, compared with the mandated regulatory level of 1 percent.
Yonhap notes that the suspension, the first of its kind, dealt a
heavy blow to other savings banks as the Financial Services
Commission has since slapped temporary bans on other banks,
including South Korea's No. 1 savings bank, Busan Savings Bank,
over mounting fears of deposit losses.
The Seoul Central Prosecutors' Office said that prosecutors are
looking into whether the loans were made through due process and
whether executives violated lending policies, according to Yonhap.
Samhwa Mutual Savings Bank is a savings bank based in Seoul.
===============
M A L A Y S I A
===============
AMBANK BERHAD: Fitch Affirms Support Rating Floor at 'BB+'
----------------------------------------------------------
Fitch Ratings has affirmed Malaysia-based AmBank (M) Berhad's and
AmInvestment Bank Berhad's ratings, including the Long-term
Foreign-Currency Issuer Default Rating at 'BBB' with Stable
Outlook and Individual Rating at 'C'. A full breakdown of rating
actions is detailed below.
AmBank's ratings reflect its reasonable franchise, satisfactory
earnings base and improved financial profile. They also
incorporate Fitch's expectations that the bank's capital and
funding will strengthen and that its loan portfolio will be better
diversified over the medium term. Positive rating action may
result from a significant improvement in AmBank's funding profile,
loan diversity and core capital buffer. However, as Fitch
believes this to be a long-term prospect, it has decided to keep
the Rating Outlook Stable.
Fitch expects AmBank to maintain its underlying profitability into
the financial year ending March 2012 as favourable economic
conditions should help broaden non-interest income businesses and
keep credit costs low. Given ample liquidity in Malaysia and that
interest rates are still near historical lows, the bank is likely
to continue raising long-dated wholesale funds. While this would
provide some funding stability, it may lead to its loans/deposits
ratio remaining above 90% in the near term.
AmBank's auto-financing concentration, while still proportionately
sizeable at 33% of loans at end-December 2010, has steadily
declined over the past four to five years. This results from its
primary focus on business loans, especially loans to low-risk
government-linked corporations and multinational companies. Due
to its emphasis on risk management, AmBank's asset quality has
held up fairly well, even during the 2008/2009 recession in
Malaysia, with credit costs easily covered by its earnings.
Unexpectedly material deterioration in asset quality leading to
capital impairment would be negative for the bank's ratings,
although Fitch believes this to be unlikely in the near term given
Malaysia's favorable economic prospects.
While earnings retention may be sufficient to support balance-
sheet expansion, AmBank's consolidated core Tier 1 capital
adequacy ratio (CAR, excluding hybrids) of 6.7% at end December
2010 may continue to be below the 9% peer average. Fitch notes
that the transfer of AmIslamic Bank Berhad, a wholly owned
subsidiary of AmBank, to its parent, AMMB Holding Berhad, in
February 2011 has improved AmBank's core Tier 1 CAR. Importantly,
in order not to hinder its ability to maintain a reasonable
dividend payout ratio, Fitch believes that the bank may need to
keep its core Tier 1 CAR above 7%, which is the new effective
minimum prescribed under Basel III's capital regulations in
December 2010.
Fitch has affirmed AmBank's hybrid rating at 'BB+', which is two
notches below the bank's Long-term Foreign-Currency IDR, in
accordance with the agency's criteria of rating hybrid securities
and preference shares of financial institutions.
Fitch expects AmInvestment's risk profile and ratings to continue
to move in line with AmBank's in view of the high level of
operational integration, even though both banks still operate as
separate legal entities for regulatory reasons. AmInvestment is a
key operating division within the larger AHB group - which in turn
functions as a universal bank - focusing on investment banking and
stockbroking businesses.
The list of rating actions is:
AmBank
-- Long-term foreign currency IDR affirmed at 'BBB', Outlook
Stable
-- Short-term foreign currency IDR affirmed at 'F3'
-- Individual Rating affirmed at 'C'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Long-term deposit rating affirmed at 'BBB+'
-- Rating on US$-denominated hybrid Tier 1 securities affirmed
at 'BB+'
AmInvestment
-- Long-term foreign currency IDR affirmed at 'BBB', Outlook
Stable
-- Short-term foreign currency IDR affirmed at 'F3'
-- Individual Rating affirmed at 'C'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Long-term deposit rating affirmed at 'BBB+'
====================
N E W Z E A L A N D
====================
REDGROUP RETAIL: New Zealand Bookstore Business Up for Sale
-----------------------------------------------------------
The administrators of REDgroup Retail -- owners of New Zealand's
biggest book retailing chains, Whitcoulls, Borders New Zealand and
Bennetts -- confirmed Friday they are seeking expressions of
interest for those businesses.
Advertisements calling for interested parties to come forward
began appearing in newspapers in New Zealand and overseas on
March 12, 2011.
Expressions of interest have been called for: Whitcoulls (74
stores); Bennetts (nine stores); Borders (five stores).
Mr. Steve Sherman, Ferrier Hodgson partner and Administrator of
REDgroup Retail, the owner of the book retailing businesses, said
the sales campaign will enable the Administrators to examine what
options may be available for creditors. He said there have
already been a number of unsolicited approaches regarding the
New Zealand business.
"These brands are so well known in New Zealand, it should come as
no surprise a number of parties have come forward interested to
know more," Mr. Sherman said. "The Expression of Interest process
will establish a more formal framework for us to manage that
interest."
Mr. Sherman said that over the next week the sales campaign will
help the Administrators develop a better understanding of the
level of market interest in the book retailing businesses.
"To some degree this is about testing the waters and potentially
establishing the market value of the business," he said. "But it
will also allow us to develop a well-informed opinion about the
best course of action for 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
===============
X X X X X X X X
===============
* S&P's Global Corporate Default Tally Remains at Three in 2011
---------------------------------------------------------------
The 2011 global corporate default tally remains at three issuers
after no issuers defaulted this week, said an article published
March 11 by Standard & Poor's, titled "Global Corporate Default
Update (March 4 - 10, 2011) (Premium)."
Two of these defaults were based in the U.S. and one was based in
the Czech Republic. By comparison, 19 global corporate issuers
defaulted at this time last year (15 U.S.-based issuers and one
each based in Argentina, Australia, Bahrain, and Canada).
All three of this year's defaulters missed interest or principal
payments, which was one of the top reasons for default last year.
Of the defaults in 2010, 28 defaults resulted from missed interest
or principal payments, 25 defaults resulted from Chapter 11 and
foreign bankruptcy filings, 23 from distressed exchanges, three
from receiverships, one from regulatory directives, and one from
administration.
* BOND PRICING: For the Week March 7 to March 11, 2011
------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 1.20
AMITY OIL LTD 10.00 10/31/2013 AUD 2.01
AMP GROUP FINANC 9.80 04/01/2019 NZD 0.95
BECTON PROP GR 9.50 06/30/2010 AUD 0.19
CENTAUR MINING 11.00 12/01/2007 USD 0.50
EXPORT FIN & INS 0.50 12/16/2019 NZD 63.40
EXPORT FIN & INS 0.50 06/15/2020 AUD 59.44
EXPORT FIN & INS 0.50 06/15/2020 NZD 61.65
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.98
MINERALS CORP 10.50 09/30/2011 AUD 0.25
NEW S WALES TREA 1.00 09/02/2019 AUD 64.15
NEW S WALES TREA 0.50 09/14/2022 AUD 53.49
NEW S WALES TREA 0.50 10/07/2022 AUD 53.31
NEW S WALES TREA 0.50 10/28/2022 AUD 53.15
NEW S WALES TREA 0.50 11/18/2022 AUD 52.99
NEW S WALES TREA 0.50 12/16/2022 AUD 52.78
NEW S WALES TREA 0.50 02/02/2023 AUD 52.43
NEW S WALES TREA 0.50 03/30/2023 AUD 56.36
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 72.32
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 65.74
RESOLUTE MINING 12.00 12/31/2012 AUD 1.26
TREAS CORP VICT 0.50 08/25/2022 AUD 53.38
TREAS CORP VICT 0.50 11/12/2030 AUD 51.72
TREAS CORP VICT 0.50 11/12/2030 AUD 35.83
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 61.67
CHINA POLY GRP 4.72 05/07/2014 CNY 54.60
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 43.12
INDIA
-----
POWER FIN CORP 8.99 01/15/2021 INR 9.20
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.11
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.79
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.73
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.89
PUNJAB INFRA DB 0.40 10/15/2028 INR 18.23
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.74
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.40
PUNJAB INFRA DB 0.40 10/15/2031 INR 14.20
PUNJAB INFRA DB 0.40 10/15/2032 INR 13.12
PUNJAB INFRA DB 0.40 10/15/2033 INR 12.15
JAPAN
-----
AIFUL CORP 1.20 01/26/2012 USD 74.92
AIFUL CORP 1.99 03/23/2012 JPY 72.72
AIFUL CORP 1.22 04/20/2012 JPY 67.92
AIFUL CORP 1.63 11/22/2012 JPY 54.92
AIFUL CORP 1.74 05/28/2013 JPY 47.92
AIFUL CORP 1.99 10/19/2015 JPY 37.92
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 58.83
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 58.29
SHINSEI BANK 5.62 12/29/2049 GBP 73.70
TAKEFUJI CORP 9.20 04/15/2011 USD 17.25
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.12
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.41
CRESENDO CORP B 3.75 01/11/2016 MYR 1.06
DUTALAND BHD 6.00 04/11/2013 MYR 0.45
DUTALAND BHD 6.00 04/11/2013 MYR 0.76
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.07
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.14
KUMPULAN JETSON 5.00 11/27/2012 MYR 0.85
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.60
MITHRIL BHD 3.00 04/05/2012 MYR 0.61
NAM FATT CORP 2.00 06/24/2011 MYR 0.05
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.30
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.52
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.30
PANTECH GROUP 7.00 12/21/2017 MYR 0.10
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.53
REDTONE INTL 2.75 03/04/2020 MYR 0.07
RUBBEREX CORP 4.00 08/14/2012 MYR 0.73
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.76
SCOMI GROUP 4.00 12/14/2012 MYR 0.08
TATT GIAP 2.00 06/03/2015 MYR 0.70
TRADEWINDS CORP 2.00 02/26/2016 MYR 0.85
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.55
TRC SYNERGY 5.00 01/20/2012 MYR 1.44
WAH SEONG CORP 3.00 05/21/2012 MYR 2.40
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.24
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.36
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 34.20
DORCHESTER PACIF 5.00 06/30/2013 NZD 73.49
FLETCHER BUI 8.50 03/15/2015 NZD 7.59
FLETCHER BUI 7.55 03/15/2015 NZD 8.00
INFRATIL LTD 8.50 09/15/2013 NZD 8.20
INFRATIL LTD 8.50 11/15/2015 NZD 9.00
INFRATIL LTD 4.97 12/29/2049 NZD 60.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.29
MARAC FINANCE 10.50 07/15/2013 NZD 1.03
SKY NETWORK TV 4.01 10/16/2016 NZD 6.04
SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.00
SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.76
ST LAURENCE PROP 9.25 07/15/2010 NZD 64.32
TOWER CAPITAL 8.50 04/15/2014 NZD 1.03
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.90
TRUSTPOWER LTD 8.50 03/15/2014 NZD 8.25
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.01
TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.04
UNI OF CANTERBUR 7.25 12/15/2019 NZD 0.99
VECTOR LTD 8.00 06/15/2012 NZD 7.00
VECTOR LTD 8.00 10/15/2014 NZD 1.06
SINGAPORE
---------
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 1.00
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 0.99
EQUINOX OFFSHORE 20.00 10/13/2011 USD 71.00
NEXUS 1 PTE LTD 10.50 03/07/2012 USD 0.19
SENGKANG MALL 4.88 11/20/2012 SGD 0.04
UNITED ENG LTD 1.00 03/03/2014 SGD 1.70
WBL CORPORATION 2.50 06/10/2014 SGD 1.65
SOUTH KOREA
-----------
CN 1ST ABS 8.00 02/27/2015 KRW 30.35
DONGSAN DEVELOPM 3.50 05/08/2011 KRW 14.32
HOPE KOD 1ST 8.50 06/30/2012 KRW 31.00
HOPE KOD 2ND 15.00 08/21/2012 KRW 30.39
HOPE KOD 3RD 15.00 09/30/2012 KRW 30.29
HOPE KOD 4TH 15.00 12/29/2012 KRW 25.00
HOPE KOD 6TH 15.00 03/10/2013 KRW 34.21
HYUNDAI SWISS BK 8.50 07/15/2014 KRW 9.46
HYUNDAI SWISS BK 8.30 01/13/2015 KRW 10.42
HYUNDAI SWISS S 8.30 01/13/2015 KRW 10.33
IBK 17TH ABS 25.00 12/29/2012 KRW 59.47
JOONG ANG DESIGN 6.00 12/18/2012 KRW 68.90
KB 11TH ABS 23.00 07/03/2011 KRW 67.71
KB 12TH ABS 25.00 01/21/2012 KRW 65.69
KB 13TH ABS 25.00 07/02/2012 KRW 61.62
KDB 6TH ABS 20.00 12/02/2019 KRW 53.83
KEB 17TH ABS 20.00 12/28/2011 KRW 59.93
KOREA LINE CO 6.80 11/30/2011 KRW 57.13
KOREA MUTUAL SAV 8.00 09/22/2012 KRW 10.29
NACF 15TH ABS 25.00 03/18/2011 KRW 63.35
NACF 17TH ABS 20.00 06/03/2011 KRW 22.00
NACF 17TH ABS 25.00 07/03/2011 KRW 20.00
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 25.00
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 68.46
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 68.25
SAM HO INTL 6.32 03/28/2011 KRW 70.96
SINBO 1ST ABS 15.00 07/22/2013 KRW 30.96
SINBO 2ND ABS 15.00 08/26/2013 KRW 33.43
SINBO 3RD ABS 15.00 09/30/2013 KRW 33.41
SINBO 4TH ABS 15.00 12/16/2013 KRW 31.25
SINBO 5TH ABS 15.00 02/23/2014 KRW 30.45
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 30.16
SINGOK ABS 7.50 06/18/2011 KRW 52.35
SINGOK NS ABS 7.50 06/27/2011 KRW 52.45
SRI LANKA
---------
SRI LANKA GOVT 5.35 03/01/2026 LKR 66.63
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 70.70
VIETNAM
--------
HCMC INVT FUND 9.25 08/22/2016 VND 12.50
HCMC INVT FUND 9.25 08/31/2016 VND 12.50
VIETNAM MACHINE 9.20 06/06/2017 VND 74.61
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.67
VIETNAM-PAR 4.00 03/12/2028 USD 73.00
*********
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 ***