/raid1/www/Hosts/bankrupt/TCRAP_Public/110407.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, April 7, 2011, Vol. 14, No. 69
Headlines
A U S T R A L I A
BILL EXPRESS: ASIC Bans Bill Express Founder for Five Years
LOXAM DEVELOPMENTS: Calls In Voluntary Administrators
MIDLAND CONSTRUCTIONS: Collapses; Blames State for Financial Woes
REDGROUP RETAIL: Franchisees, Administrators Legal Battle Looms
SECURE FUNDING: Moody's Assigns Provisional Ratings to Aust. RMBS
H O N G K O N G
HK SPACE: Members' Final Meeting Set for May 3
INFINITY SERVICES: Annual Meetings Set for May 6
JOY FORCE: Members and Creditors' Final Meetings Set for May 4
LIBERWAY LIMITED: Keung and Ching Appointed as Liquidators
MASSKIND INVESTMENTS: Members' Final Meeting Set for May 5
PIZZICATO LIMITED: Members' Final Meeting Set for May 3
PROJECT SHIMMER: Commences Wind-Up Proceedings
RECOTON (HK): Annual Meetings Set for April 12
UNITED HARVEST: Fung Kam Yin Rocina Steps Down as Liquidator
ZEMAC ENGINEERING: Members' Final Meeting Set for May 9
I N D I A
ANAND PRAKASH: ICRA Assigns 'LB+' Rating to INR20cr Cash Credit
AVON METERS: ICRA Assigns 'LBB' Rating to INR29cr Bank Limits
BEST TEXTILES: ICRA Assigns 'LB+' Rating to INR3cr LT Loans
BMV EXIM: ICRA Assigns 'LB+' Rating to INR18.65cr Bank Limits
GIRIJASHANKAR COTTON: ICRA Puts 'LB+' Rating on INR8cr Bank Limits
GOPSONS PAPERS: Fitch Affirms National LT Rating at 'BB(ind)'
GREENKO ENERGIES: CRISIL Upgrades Rating on Bank Loans to 'BB'
LAILA NUTRACEUTICALS: ICRA Puts 'LB+' Rating to INR3cr Term Loan
PASUPATI SPINNING: ICRA Reaffirms 'LD' Rating on Various Debts
PRABHAT CABLES: ICRA Assigns 'LBB+' Rating to INR10cr Bank Loans
RADIANT HOSPITALITY: ICRA Assigns 'LB+' Rating to INR5.17cr Limits
RENFRO INDIA: CRISIL Assigns 'BB-' Rating to INR74.50MM Loan
SENDOZ IMPEX: CRISIL Assigns 'BB-' Rating to INR100MM Cash Credit
SHALAKA INFRA-TECH: CRISIL Assigns 'BB+' Rating to Cash Credit
SHIVSU CANADIAN: CRISIL Assigns 'BB+' Rating to Cash Credit
SIDDIQUE TRADING: CRISIL Puts 'B' Rating on INR100MM Cash Credit
VARIETY PRINTS: Fitch Affirms National LT Rating at 'B(ind)'
N E W Z E A L A N D
ALLIED FARMERS: In Dispute with Buyer Over Ex-Hanover Loans
PIKE RIVER: Receivers Ask Government's Help on Inquiry Cost
REDGROUP RETAIL: To Sell 10 Whitcoulls Stores in New Zealand
P H I L I P P I N E S
BANCO FILIPINO: Operated a 'Ponzi Scheme,' BSP Says
BANK OF THE PHILIPPINE ISLANDS: Fitch Affirms FC IDR at 'BB'
- - - - -
=================
A U S T R A L I A
=================
BILL EXPRESS: ASIC Bans Bill Express Founder for Five Years
-----------------------------------------------------------
The Australian Securities and Investments Commission has
disqualified Bill Express Limited founder Ian Douglas Christiansen
from managing corporations for five years.
Mr. Christiansen's disqualification follows an ASIC investigation
into his role in fifteen failed companies: Cash4Biz Pty Ltd; On Q
Group Limited; On Q Technologies Pty Ltd; Bill Express Limited;
Bill Express Tech Pty Ltd; Bopo Cards (Australia) Pty Ltd;
Cheque2cash Pty Ltd; Express CRM Pty Ltd; Express Pay Pty Ltd;
Ezipin Australia Pty Ltd; Ezipin Group Pty Ltd; Mobile EFT Plus
Pty Ltd; Mobile EFT Pty Ltd; POD TV Pty Ltd; and XIP Media Pty
Ltd.
ASIC's investigation found that Mr. Christiansen failed to
adequately perform his duties as director of the failed companies
and take all reasonable steps to ensure his companies complied
with obligations to keep financial records.
The company liquidators identified a number of instances of
mismanagement by Mr. Christiansen leading to the companies being
wound up, with significant deficiencies totaling approximately
AU$330 million.
ASIC also found that Mr. Christiansen allowed Bill Express Limited
to trade while it was insolvent between approximately May 2008 and
July 2008.
Mr. Christiansen has the right to appeal to the Administrative
Appeals Tribunal for a review of ASIC's decision.
About Bill Express
Bill Express Ltd. -- http://www.billexpressltd.com/-- was engaged
in the management and development of an electronic distribution
system for pre-paid products and services across in excess of
14,000 locations around Australia, automated ordering, delivery
and inventory control for pre-paid services including mobile,
landline and Internet services. It also processed payments for
bills and services, including bills that are presented for payment
to its outlets across Australia. The company had an in-store
media, which is a network that promotes Bill Express Limited's and
other products at the point of sale and in-store aisles.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Bill Express went into administration with
AU$180 million in debts after a subsidiary of Saudi-based Al
Othman Group withdrew its proposal for the recapitalization and
restructuring of the company. The proposal was to include a
substantial capital injection and new bank guarantees combined
with a restructuring of the existing liabilities of the company.
In addition, the Board and management of the company were to be
substantially restructured.
LOXAM DEVELOPMENTS: Calls In Voluntary Administrators
-----------------------------------------------------
Rachel Donkin at The West Australian reports that Loxam
Developments has called in voluntary administrators due to market
slowdown.
The West Australian relates that Taylor Woodings partner Ian
Francis said he had been appointed to the 21-year-old business on
March 31, 2011, and was working with its director and staff to
assess its financial position ahead of a creditors' meeting on
April 11.
"Based on the work we've done to date and looking at the company's
records, the company has (suffered from) a decline in work and
margins have been very tight, and that's affected the company's
performance," The West Australian quotes Mr. Francis as saying.
"We're certainly seeing in the marketplace that commercial
builders at this sort of level are facing difficult times."
Citing documents filed with the Australian Securities &
Investments Commission, The West Australian discloses that one of
Loxam's two directors, joint owner and co-founder Andrew Knowles,
resigned last month. Its co-founder and sole remaining director,
Perth builder Glen Matyear, did not return calls.
According to the report, ASIC records show that National Australia
Bank has a registered charge over the business. Loxam's secured
debts to NAB are understood to be more than AU$400,000. Payments
to some sub-contractors are also outstanding.
Loxam Developments Pty Ltd is a West Australian-based building
contractor.
MIDLAND CONSTRUCTIONS: Collapses; Blames State for Financial Woes
-----------------------------------------------------------------
Andrew Burrell at The Australian reports that Midland
Constructions, a building company with about AU$30 million in
contracts from the Building the Education Revolution program, has
fallen into administration, pinning the blame for its financial
woes on the West Australian government's mismanagement of the
scheme.
The Australian says Midland Constructions owes its creditors more
than AU$3 million and has been forced to halt work at schools in
Perth's eastern suburbs and Avon Valley.
The company, says The Australian, became the second Perth
construction firm working on the federal government's AU$16.2
billion schools stimulus program to run into strife in the past
week after Loxam Developments went into administration on
March 31, 2011. The failures follow a series of similar problems
in NSW where builders engaged on BER projects have collapsed owing
money to subcontractors, according to The Australian.
The Australian relates that administrator Chris Williamson, of WA
Insolvency Solutions, said Midland Constructions, which is known
as MidCon, was doing work at both public and private schools, but
he hoped the company could continue trading and complete its
contracts.
"We will try to keep the projects going -- some of them are
nearing completion," The Australia quotes Mr. Williamson as
saying.
According to the report, MidCon managing director David Affleck
said his company had been forced to enter voluntary administration
due to the state government's refusal to accept responsibility for
the poor management of projects.
Mr. Affleck said the schools were tendered and awarded on the
basis that start dates would be staggered. "Unfortunately the
manner in which the projects were rolled out, along with extensive
site works and services, meant projects ended up running
concurrently and taking much longer than we had anticipated," Mr.
Affleck said, according to The Australian.
"This made it very difficult to manage projects in an effective
manner.
"The WA state government has refused to accept any responsibility
for the way these projects have been run and the corresponding
financial impact, despite ongoing reassurances that MidCon would
be dealt with in an equitable manner," Mr. Affleck said.
Perth-based Midland Constructions Pty Ltd offers building
construction and maintenance services.
REDGROUP RETAIL: Franchisees, Administrators Legal Battle Looms
---------------------------------------------------------------
SmartCompany reports that a legal fight between 25 former Angus &
Robertson franchisees and the administrator of REDgroup Retail Pty
Ltd is looming, after the administrator indicated it would fight
the franchisees' attempt to leave the stricken chain.
SmartCompany relates that 25 Angus & Robertson franchisees said
Tuesday they would become independent booksellers, claiming
Redgroup breached their franchise agreements when it failed to
honour gift cards issued by the chain, and they were no longer
receiving the benefits of being a franchisee.
But REDgroup retail administrator Ferrier Hodgson has said it
intends to "hold each of the franchisees fully accountable under
the terms of the franchise agreements," SmartCompany says.
Marie Fitzpatrick of the Bookshop Bowral (formerly Angus &
Robertson Bowral), told SmartCompany that the group has yet to be
contacted directly by the administrator, but has received an
"enormously positive" customer response to its decision.
Mr. Fitzpatrick said of the e-mails she has received from group
members, "everybody is reporting a very positive customer
response," according to SmartCompany.
But a legal battle now looks likely, with franchising experts
saying the rights of franchisees when a franchisor goes into
administrator remains a very grey area, SmartCompany notes.
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
SECURE FUNDING: Moody's Assigns Provisional Ratings to Aust. RMBS
-----------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
long-term ratings to notes issued by Secure Funding Pty Limited in
its capacity as trustee of Liberty PRIME Series 2011-1 Trust.
Issuer: Liberty PRIME Series 2011-1 Trust
* AU$170.00 million Class A1 Notes, Assigned (P)Aaa (sf);
* AU$50.75 million Class A2 Notes, Assigned (P)Aaa (sf);
* AU$11.75 million Class B Notes, Assigned (P)Aa1 (sf);
* AU$4.50 million Class C Notes, Assigned (P)A1 (sf);
* AU$5.50 million Class D Notes, Assigned (P)Baa2 (sf);
* AU$3.25 million Class E Notes, Assigned (P)Ba2 (sf).
The subordinated AU$4.25 million Class F Notes are not rated by
Moody's.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for timely payment of
interest and ultimate payment of principal with respect to the
rated notes by the legal final maturity.
Ratings Rationale
The transaction is a securitization of a portfolio of Australian
prime and limited documentation residential mortgages originated
by Liberty Financial Pty Limited.
The provisional ratings take account of, among other factors:
* The 11.7% subordination provided to the Class A Notes by the
mezzanine and junior notes. This compares favorably with
Moody's estimate of Aaa credit enhancement of 8.0%.
Additionally, it strengthens ratings stability should the
pool experience losses higher than expected.
* A liquidity facility equal to 2.5% of the outstanding balance
of the notes subject to a floor of 0.25% of the initial note
balance.
* The experience and expertise of Liberty Financial Pty Ltd in
underwriting and servicing mortgage loans.
The key transactional and pool features are:
* The notes will initially be repaid on a sequential basis.
Following the satisfaction of a number of conditions,
including the increase of the Class A Note subordination
percentage to at least 23.4%, and absence of carry-over
charge offs, prior to the occurrence of the call date the
Class B, Class C, Class D and Class E notes will be repaid on
a pari passu basis.
* The pool is over two years seasoned, reducing the risk of
early payment default.
* 90.1% of the loans in the pool were originated with full
income verification.
* The weighted average current loan to value ratio of the pool
is 69.3%.
* The pool includes a small only percentage (11.8%) of loans
benefiting from Lenders Mortgage Insurance (LMI).
* 73.2% of loans in the pool were originated for refinance or
equity release purposes. Moody's consider refinance and
equity release loans to be riskier than loans extended for
purchase purposes.
The principal methodology used in this rating was "Moody's MILAN
Methodology for Rating Australian RMBS", published in
December 2009.
Volatility Assumption Scores and Parameter Sensitivities
The V Score for this transaction is Medium, which is higher than
the Low/Medium score assigned to the Australian prime RMBS sector.
Compared to the sector, Liberty PRIME Series 2011-1 exhibits a
greater potential for rating changes with regards to originator
historical performance variability. This can be explained by
Liberty's relatively limited experience in the prime RMBS market,
with the Liberty PRIME Series 2011-1 transaction Liberty's 4th
prime issuance.
Additionally, unlike other Australian RMBS, the transaction does
not rely on mortgage insurance. Rather the main form of credit
enhancement is provided by note subordination, necessitating cash
flow modeling and introducing additional analytical complexity.
Finally, since Liberty is an unrated institution the necessity for
a back-up servicer is increased compared to a typical Australian
RMBS transaction.
V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of rating
changes. The V Score has been assigned accordingly to the report
"V Scores and Parameter Sensitivities in the Asia/Pacific RMBS
Sector", published in March 2009.
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process -- here the Aaa
credit enhancement and the expected loss of the portfolio -
differed. The analysis assumes that the deal has not aged.
Parameter Sensitivities only reflect the ratings impact of each
scenario from a quantitative/model-indicated standpoint.
In the case of the Liberty PRIME Series 2011-1 Trust, the Class A
Notes would face a one notch downgrade, to Aa1, where the computed
Aaa loss is doubled to 16.0% (relative to Moody's assumption of
8.0%). Similarly, the ratings of the class B and class C notes
would face a one notch downgrade, to Aa2 and A2 respectivily, if
the computed Aaa loss where to increase to 12%.
For a full description of the transaction, a copy of Moody's pre-
sale report can be downloaded from Moodys.com. In addition,
Moody's publishes a weekly summary of structured finance credit,
ratings and methodologies, available to all registered users of
our website, at www.moodys.com/SFQuickCheck.
The issuer has not informed Moody's Investor Services whether the
issuer is publicly disclosing all relevant information about the
product.
================
H O N G K O N G
================
HK SPACE: Members' Final Meeting Set for May 3
----------------------------------------------
Members of The Hong Kong Space Technology Research Foundation
Limited will hold their final general meeting on May 3, 2011, at
10:00 a.m., at Level 28, Three Pacific Place, 1 Queen's Road East,
in Hong Kong.
At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
INFINITY SERVICES: Annual Meetings Set for May 6
------------------------------------------------
Members and creditors of Infinity Services Limited will hold their
annual meetings on May 6, 2011, at 10:30 a.m., and 11:00 a.m.,
respectively at Suites 903-5, 9/F., Allied Kajima Building,
Wanchai, in Hong Kong.
At the meeting, Tang Yau Sing and Pang Fung Ming, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
JOY FORCE: Members and Creditors' Final Meetings Set for May 4
--------------------------------------------------------------
Members and creditors of Joy Force Limited will hold their final
general meetings on May 4, 2011, at 2:30 p.m., and 3:00 p.m.,
respectively at 29/F., Caroline Centre, 28 Yun Ping Road, in Hong
Kong.
At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
LIBERWAY LIMITED: Keung and Ching Appointed as Liquidators
----------------------------------------------------------
Stephen Liu Yiu Keung and David Yen Ching Wai on March 18, 2011,
were appointed as liquidators of Liberway Limited.
The liquidators may be reached at:
Stephen Liu Yiu Keung
David Yen Ching Wai
62/F, One Island East
18 Westlands Road
Island East, Hong Kong
MASSKIND INVESTMENTS: Members' Final Meeting Set for May 5
----------------------------------------------------------
Members of Masskind Investments Limited will hold their final
meeting on May 5, 2011, at 2:30 p.m., at 9/F, Tung Ning Building,
249-253 Des Voeux Road Central, in Hong Kong.
At the meeting, Chan Shu Kin and Chow Chi Tong, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
PIZZICATO LIMITED: Members' Final Meeting Set for May 3
-------------------------------------------------------
Members of Pizzicato Limited will hold their final general meeting
on May 3, 2011, at 10:30 a.m., at 28th Floor, Emperor Group
Centre, 288 Hennessy Road, Wanchai, in Hong Kong.
At the meeting, Ho Koon Man, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
PROJECT SHIMMER: Commences Wind-Up Proceedings
----------------------------------------------
Members of Project Shimmer Limited, on April 26, 2011, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Lee Suk Yee
Flat A, 26th Floor
Block 5, Grand View Garden
Hammer Hill Road
Diamond Hill, Kowloon
Hong Kong
RECOTON (HK): Annual Meetings Set for April 12
----------------------------------------------
Creditors and members of Recoton (Hong Kong) Limited will hold
their annual meetings on April 12, 2011, at 10:00 a.m., at 14/F,
The Hong Kong Club Building, 3A Chater Road, Central, in Hong
Kong.
At the meeting, Roderick John Suton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
UNITED HARVEST: Fung Kam Yin Rocina Steps Down as Liquidator
------------------------------------------------------------
Fung Kam Yin Rocina stepped down as liquidator of United Harvest
Asia Limited on March 16, 2011.
ZEMAC ENGINEERING: Members' Final Meeting Set for May 9
-------------------------------------------------------
Members of Zemac Engineering Company Limited will hold their final
general meeting on May 9, 2011, at 11:00 a.m., at Flat B, 13/F.,
Lucky Factory Building, 63-65 Hung To Road, Kwun Tong, in Kowloon.
At the meeting, Chan Chung Wah Clement, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
=========
I N D I A
=========
ANAND PRAKASH: ICRA Assigns 'LB+' Rating to INR20cr Cash Credit
---------------------------------------------------------------
ICRA has assigned 'LB+' rating to INR20.0 crore cash credit
facility of Anand Prakash Ankit Kumar.
The ratings is constrained by the intensely competitive nature of
the business translating into modest profitability; vulnerability
of APAK's profits to commodity price risk, its modest scale of
operations and high gearing. The rating also takes into
consideration risks inherent in a proprietorship firm like
limited's ability to raise equity capital, risk of dissolution due
to death/retirement/insolvency of proprietor etc. However, the
ratings favorably a factor in APAK's experienced promoters with
long track record in trading of agricultural products and its
established relations with suppliers and customers.
Established in 1985, Anand Prakash Ankit Kumar is engaged in
trading of agricultural commodities primarily rice. APAK is a
proprietorship firm promoted by Mr. Anand Praksh Gupta. APAK is
primarily involved in the trading of basmati/non basmati rice,
pulses etc. The firm's head office is located in Delhi from where
it controls the marketing and finance operations.
APAK reported a Profit After Tax (PAT) of INR0.60 crore on
operating income of INR87.3 crore in 2009-10, as against
corresponding figures of INR0.27 crore and INR62.3 crore in
2008-09.
AVON METERS: ICRA Assigns 'LBB' Rating to INR29cr Bank Limits
-------------------------------------------------------------
ICRA has assigned a rating of 'LBB' to the INR29.0 crore fund-
based limits of Avon Meters Private Limited. The outlook on the
rating is 'stable'. ICRA has also assigned a rating of 'A4' to the
INR45.00 non fund-based limits of AMPL.
The ratings take into account the long standing track record of
AMPL's promoters in electronics industry, established brand name
in the manufacturing of electronic energy meters and strong order
book position driven by strong demand from industry. However, the
ratings are constrained by, highly competitive nature of industry
which leads to pressure on operating margins and, the high working
capital intensity of AMPL's operations owing to high debtor days
leading to liquidity constraints as reflected by high utilization
of bank limits. The rating also factors in the vulnerability of
AMPL's profitability to fluctuation in price of raw materials as
contracts do not have price escalation clauses, its relatively
high gearing levels which coupled with moderate profitability has
led to moderate debt coverage indicators
Avon Meters Private Limited was established in 1995 to manufacture
single phase and three phase high precision electronic energy
meters. The company's production facility located at Dera Basi
(Punjab) has acapacity to manufacture nine lakh electronic energy
meters per annum. Apart from electronic metres, AMPL has in-house
facilities for manufacturing of moulds and covers for meters.
The company sells metres to DISCOM's in states of J&K, Himachal
Pradesh, Assam Punjab, Rajasthan and all other major electricity
boards in India. The electronic meters are sold under the
brand name 'Avon'.
The demand for energy meters comes largely from state owned
utilities. It is largely a tender driven business. In order to be
qualified for bidding vendors need to meet certain
prequalification norms. The vendors are selected on the basis of
bids submitted by the various prequalified manufacturers. Thus
APML's revenue growth would depend on the contracts it is able to
secure in future. ICRA expects the demand for energy meters to
grow at a healthy pace as reflected by the huge outlay on the
Restructured Accelerated Power Development and Reform Programme
(R-APDRP) during the XI Plan (total planned outlay of INR50,000
crore).
Avon Meters Private Limited was established in 1995 to manufacture
single phase and three phase high precision electronic energy
meters. The company has the production facility located at Dera
Basi, Punjab. The unit currently has capacity to manufacture nine
lac electronic energy meters per annum.
BEST TEXTILES: ICRA Assigns 'LB+' Rating to INR3cr LT Loans
-----------------------------------------------------------
ICRA has assigned an "LB+" rating to the INR3.00 crore long-term
fund based bank facilities and an "A4" rating to the Rs 10.00
crore short-term fund based bank facilities of Best Textiles
Private Limited.
The rating assigned by ICRA reflects stretched liquidity position
of the company as reflected in consistently high working capital
limits utilization with the banks, large scale debt funded project
proposed to be undertaken by the company and low profitability of
its existing operations. The rating is also constrained on
account of weak capital structure as reflected in gearing of over
2.5 times in the past; though it is expected to correct in near
term following the equity infusion during Q4-FY 11. The rating
takes comfort from the long operating history of the company,
considerable experience of the promoter in the textiles business;
satisfactory revenue growth over past few years and history of
profitable operations. The rating also derives comfort from the
diversified customer profile of the company, and the demonstrated
funding support from the promoters by way of steady equity
infusion. Going forward, the ability of the company to improve
its liquidity by way of infusion of long term funds; scale of the
projects undertaken by the company and funding mix thereof will
remain the key rating sensitivities.
BTL was incorporated in August 1996 as Spank Marketing and
Services Pvt Limited and was later renamed as Best Textiles
Limited in March 2007. The company is promoted by Mr Sanjeev
Dhawan who has considerable experience of around two decades in
textile business and has its manufacturing facilities located at
Panipat, Haryana and Noida, U.P. The company is mainly involved
in export of home furnishing products such as Rugs, Curtain,
Cushion cover, cotton blanket, woollen blanket etc.
BTL reported revenues of INR77.37 crore and net profit of
INR0.64 crore during FY10; for the 9 month period ending December
2010, the company reported revenues of INR59.68 crore and net
profit of INR1.05 crore.
BMV EXIM: ICRA Assigns 'LB+' Rating to INR18.65cr Bank Limits
-------------------------------------------------------------
ICRA has assigned a rating of 'LB+' to the INR18.65 crore fund-
based limits and INR3.97 crore term loans of BMV Exim Private
Limited. The outlook on the rating is 'stable'. ICRA has also
assigned a rating of 'A4' to the INR2.00 non fund-based limits of
BMV.
The ratings take into account the long and established presence of
BMV's Promoters in garment manufacturing industry, its established
relationship with customers resulting in repeat orders and healthy
rate of growth in operating income over the past few years. The
ratings are however constrained by BMV's small size of operations
in comparison to overall garment exports from India, high customer
concentration with the company consciously focusing on few credit
worthy customers for exports and geographical concentration as -
77% of revenues come from Middle East. Moreover, intense
competition in international garment market limits the bargaining
power of garment exporters like BMV. While assigning the rating,
ICRA has also noted the vulnerability of BMV's profitability
fluctuation in prices of raw materials especially cotton yarn and
foreign exchange risk on export receivables. Going forward the
ability of the company to maintain future revenue and
profitability growth in an intensely competitive industry and
manage its working capital cycle effectively will be the key
rating sensitivities.
BMV Exim Private Limited was established in the year 2005 by
Bharat Bhushan Jain and Brij Mohan Bajaj. The promoters are
commerce graduates by qualification and have more than a
decade of experience in the textile industry. BMV is a Ludhiana
based garment exporter engaged in manufacturing knitted apparel
from yarn. BMV has in-house facilities for knitting, stitching,
embroidery and embellishment work. The company buys yarn from
specified mills and undertakes the knitting process in house.
GIRIJASHANKAR COTTON: ICRA Puts 'LB+' Rating on INR8cr Bank Limits
------------------------------------------------------------------
ICRA has assigned an 'LB+' rating to INR8.00 crore fund based
limits (including unallocated limit of INR1.00 crore) of
Girijashankar Cotton Private Limited.
ICRA's rating is constrained by fragmented and seasonal nature of
the industry, GCPL's limited presence in the textile value chain
and dynamic regulatory environment. Further, ICRA has factored in
the fact that the company is exposed to adverse movement in raw
material prices which coupled with low value add nature of the
work, keeps the profitability metrics and cash accruals at modest
level. However, the rating draws comfort from long standing
experience of promoters in the industry and company's proximity to
the raw material sources which enables GCPL to establish better
relations with farmers. Moreover, the rating also favorably
factors in strong demand of cotton in the domestic and export
markets in short term.
While ICRA expects GCPL's operating profit margin to remain in low
single digits, high debt funded capital expenditure and
deterioration in debt coverage indicators would be the key rating
sensitivity.
Recent results:
As per company's estimate, GCPL registered INR35.00 crore of
operating income during first nine months of 2010-11.
Girijashankar Cotton Private Limited is the part of Mahesh Group.
The group belongs to Tayal family of Sendhwa (Madhya Pradesh),
predominantly engaged in the cotton trading & ginning business.
The company was incorporated in October 2005 and is engaged in
cotton ginning and pressing. The company was initially set-up by
Gupta family and later in July 2006, Gupta family sold their stake
in the company to Tayal family who are the current promoters.
GOPSONS PAPERS: Fitch Affirms National LT Rating at 'BB(ind)'
-------------------------------------------------------------
Fitch Ratings has affirmed India-based Gopsons Papers Limited's
National Long-Term rating at 'BB(ind)'. The Outlook is Stable.
The agency has also affirmed Gopsons' bank facilities:
-- INR373.1m outstanding long term loans: 'BB(ind)';
-- INR210m fund-based working capital limits:
'BB(ind)'/'F4(ind)'; and
-- INR220m non fund-based working capital limits:
'BB(ind)'/'F4(ind)'.
The ratings reflect Gopsons' established position in the printed
products market, increasing share of blue-chip publishing clients
and improved EBITDA margins of 20.9% during 9MFY11 (unaudited and
provisional) and 14.1% during FY10 despite muted revenue growth.
Gopsons recorded a decline in revenue in the financial year ended
March 2010 and slower-than-anticipated revenue growth in FY09
along with fluctuating EBITDA margins of between 10% and 14% over
FY07-FY10 due to volatile orders from government clients.
Following an initial delay to the purchase of INR450 million
printing machinery during FY09, Gopsons now plans to set up an
export-oriented printing unit at Sivakasi, Tamil Nadu which it
expects to be operational by Q2 FY12.
Liquidity has remained stretched as evidenced by the high
utilization of working capital bank limits during FY10 and FY11.
An increase in Gopsons' cash conversion cycle to 119 days in FY10
from 89 days in FY09, coupled with increased capex to purchase
additional printing machinery, raised leverage to 4.4x during FY10
from 4.3x in FY09 and 3.7x in FY08. Free cash flows have also
remained negative in the last three years due to capex incurred by
the company.
Any delays in the new plant execution or cost overruns that
materially impact its credit metrics may lead to downward pressure
on the ratings. Another negative guideline is a decline in
operating margins or deterioration in the working capital cycle
resulting in a further increase in net debt/EBITDA. Conversely, a
sustained increase in the size of operations along with improved
operating profitability and/or working capital cycle resulting in
substantial reduction in net debt/EBITDA may benefit the ratings.
Gopsons is involved in books printing and security printing for
over two decades. For 9MFY11 it reported revenues of
INR930 million, compared with INR1,180.4 million in FY10.
GREENKO ENERGIES: CRISIL Upgrades Rating on Bank Loans to 'BB'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Greenko Energies Pvt Ltd to 'BB/Stable' from 'C'.
Facilities Ratings
---------- -------
INR14.00 Million Working Capital BB/Stable (Upgraded from 'C')
Demand Loan
INR100.00 Million Term Loan BB/Stable (Upgraded from 'C')
The upgrade reflects the timely servicing of debt by GEPL over the
past five months, supported by the group's ample liquidity and the
establishment of adequate internal controls by the group for
ensuring financial discipline. The upgrade also reflects CRISIL's
belief that the Greenko group's liquidity will be adequate over
the medium term, supported by steady cash accruals from the
operating assets, and the adequate funding tie-up for its upcoming
projects.
The rating also factors in GEPL's limited track record of timely
debt servicing, and exposure to aggressive, debt-funded growth
plans and implementation risks associated with various projects in
pipeline. However, these rating weaknesses are partially offset
by the Greenko group's large, consolidated presence in the high-
growth renewable energy sector and diversified revenue generation
portfolio, imparting stability and visibility to revenues, and
comfortable financial risk profile aided by strong equity infusion
by its parent.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of GEPL and its subsidiaries, collectively
referred to as the Greenko group. This is because these entities
are under a common management and GEPL provides financial
assistance to its subsidiaries.
Outlook: Stable
CRISIL believes that the Greenko group will maintain stable cash
accruals over the medium term from its operating assets. The
scale of operations is expected to improve over the near to medium
term, as the group is expected to add large wind generation
capacities. The outlook may be revised to 'Positive' in case the
company maintains its track record of timely debt repayments, and
the group maintains its current financial risk profile supported
by strong equity infusion from its parent. Conversely, the
outlook may be revised to 'Negative' if the Greenko group's
financial risk profile deteriorates because of larger-than-
expected, debt-funded capital expenditure, or any time or cost
overruns in its major projects.
About Greenko Energies
Incorporated as Sri Balaji Biomass Power Pvt Ltd in July 2000,
GEPL got its current name in 2008. GEPL is a wholly owned
subsidiary of Greenko Mauritius, which in turn is a subsidiary of
Greenko Group Plc, based in the Isle of Man. Greenko Plc is
promoted by Mr. Anil Chalamalasetty and Mr. Mahesh Kolli. Greenko
Plc is a listed entity at London Stock Exchange.
Greenko Plc owns and operates renewable energy plants in India
through GEPL. GEPL is the holding and funding arm for all the
projects under various subsidiary companies; and also has two
operating power plants in India. As on Feb. 28, 2011, the Greenko
group had 14 operating plants: six biomass, seven hydroelectric
plants, and one liquid-fuel-based plant in India, with a total
operational capacity of 182.55 megawatts (MW). In addition, the
Greenko group has a total licensed capacity of over 500 MW which
is to become operational by 2013-2014 (refers to financial year,
April 1 to March 31). The projects under implementation involve a
capex of over INR30 billion, which is being funded at a debt-to-
equity ratio of 3:1.
GEPL reported a profit after tax (PAT) of INR1.8 million on net
sales of INR286.3 million for 2009-10, against a PAT of INR20.6
million on net sales of INR222.5 million for 2008-09.
LAILA NUTRACEUTICALS: ICRA Puts 'LB+' Rating to INR3cr Term Loan
----------------------------------------------------------------
ICRA has assigned 'LB+' rating to the INR3.00 Crores term loans of
Laila Nutraceuticals. ICRA has also assigned 'A4' rating to the
INR35.00 Crore fund based limits of the Firm.
The ratings reflect delays witnessed in the Firm's debt servicing.
Laila Nutra is heavily dependent on two customers (PL Thomas Inc
and Interhealth Nutraceuticals Inc) in the US for its entire
revenues, thereby exposing it to both high levels of geographic
and customer concentration. The same has resulted in volatile
revenue generation in the past fiscals. While, the Firm's
procurement mechanism is efficient, owing to the seasonality
witnessed in the production of its raw materials, its inventory
levels are high leading to high working capital intensity. ICRA
also notes the significant levels of profit withdrawals by the
promoters which provide low level of comfort on the stability of
capital in the Firm. Laila Nutra also intends to undertake
aggressive debt funded capex (INR30.0 crore) in the coming fiscals
towards various R&D activities, which is likely to further strain
the capital structure.
Laila Nutra's promoters have experience in the nutraceuticals
industry and the company has a strong research and development
(R&D) division which in tandem with the vast product expertise of
the Laila Group y has enabled the Firm to come out with over 40
patents in the field of herbal extraction, thereby improving the
Firm's competitive position and enhancing its pricing flexibility.
Coupled with the low input costs stemming from its efficient
procurement mechanisms, minimal interest costs on account of low
debt levels and tax rebates arising on account of its status as a
100% Export oriented Unit (EoU), Laila Nutra's margins are high.
However, significant amounts of withdrawals by the promoters have
resulted in stretched cash flows. ICRA also takes note of the
favorable demand outlook for the nutraceuticals industry which
augurs well for Laila Nutra.
Laila Nutraceuticals is one of the flagship firms of the Laila
Group of firms and companies with business interest across diverse
sectors such as pharmaceuticals, nutraceuticals, ayurvedic
products, sugar, paper, finance, hospitality, real estate and
education. For the financial year ended March 2010, the group's
pharma, nutra, sugar and paper businesses had a combined turnover
of around INR400 crores.
Laila Nutra was registered in March 2005 as a 100% EoU, dealing
with the manufacture and export of herbal extracts. The Firm is
largely dependent on three key herbal extracts (Boswellia,
Garcinia and Gymnema) deriving over 95% of its revenues from these
products. It has a manufacturing facility in Vijayawada, Andhra
and employs 55 research personnel besides 87 administrative and
contract workers. The facility has annual capacity of 360 tonnes
for manufacturing Garcinia and 120 tonnes for manufacturing
Boswellia. The facility has approvals from the Department of
Ayush (Andhra Pradesh Government) for manufacture of Schedule "T"
(Ayurveda-Siddha-Unani) drugs.
PASUPATI SPINNING: ICRA Reaffirms 'LD' Rating on Various Debts
--------------------------------------------------------------
ICRA has reaffirmed 'LD' rating assigned to the INR11.77 crore
Partially Convertible Debenture programme and INR5.00 crore
Non-Convertible Debenture programme of Pasupati Spinning and
Weaving Mills Ltd. The rating re-affirmation takes into account
PSWM's continued delays in meeting its interest and principal
obligations to banks, financial institutions and other investors.
PSWM was declared a sick company by the Board for Industrial &
Financial Reconstruction on July 14, 2005.
PRABHAT CABLES: ICRA Assigns 'LBB+' Rating to INR10cr Bank Loans
----------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the fund based facilities of
Prabhat Cables Private Limited aggregating to INR10.00 crore. The
rating carries a stable outlook.
The rating is constrained by the low profitability indicators of
the company due to limited value-addition in the business,
exposure of profitability to fluctuations in inventory prices and
the competition present in the business from the organized and
unorganized segments. As the company had been a partnership firm
till end of FY 2010, there were regular withdrawals from the
capital account that has impacted the networth size of the company
leading to high gearing levels. The rating however favorably
takes into account the established track record of the company,
the strong market position occupied by Polycab Group in cables and
wires industry in addition to the on-going capacity expansion
and widening of product portfolio being carried out by Polycab
Group that will provide an impetus to the company's revenue growth
and the low customer concentration risk for the company owing to a
wide customer base.
Prabhat Cables Private Limited was incorporated in the year 1958
under the name of Prabhat Electricals by Mr. P.L. Kacharia. The
company is currently managed by his sons, Mr. Amrish Kacharia
and Mr. Manoj Kacharia, and is entirely held by the promoter
group. The company converted itself from a partnership firm to a
private limited company on 1st April 2010 through issue of equity
capital of INR5 crore (including share premium of INR2 crore) and
renamed itself as Prabhat Cables Pvt. Ltd. The company acts as
the distributor for Polycab Group for its wires and cable
products.
During FY 2010, the company reported Profit after Tax (PAT) of
INR1.11 crore on an operating income of INR74.49 crore. During
the 11 month period of FY 2011, the company has reported PAT of
INR4.03 crore on an operating income of INR118.24 crore
(provisional).
RADIANT HOSPITALITY: ICRA Assigns 'LB+' Rating to INR5.17cr Limits
------------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the INR5.17 crore fund based
limits of Radiant Hospitality Services Private Limited. The
rating is constrained by recent delays by RHSPL in servicing its
term loan instalments in a timely manner, largely due to sluggish
realization of debtors and the bi-annual wage revisions in minimum
wages which results in a lag between RHSPL having to incur higher
salary expenses and the recovery of arrears from its clients.
The rating also factors in the competitive and price-sensitive
nature of the industry and RHSPL's lack of long term contracts
with its clients. The rating, however favorably factors in the
long-standing experience and track record of the promoters in the
facility management space and RHSPL's focus on quality which has
enabled it to build up a reputed clientele from whom RHSPL
has received repeat business over the years. The rating also
factors in RHSPL's improved debt coverage metrics following
private equity infusion in RHSPL in FY 09.
Incorporated in November 2006, Mumbai-based Radiant Hospitality
Services Private Limited provides property and facility management
services spanning housekeeping, guest house management, panty
management, procurement and supply of toilet block consumables and
drinking water, despatch and courier management, helpdesk and
reception management, horticulture and floral arrangements,
handyman services, homecare services and pest control services.
RHSPL commenced operations from April 2007 and largely operates
out of Mumbai, though the company has recently setup offices in
Pune, Chennai, Hyderabad and Bangalore
RENFRO INDIA: CRISIL Assigns 'BB-' Rating to INR74.50MM Loan
------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Renfro
India Pvt Ltd to 'BB-/Stable/P4+' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR25.0 Million Cash Credit BB-/Stable (Assigned)
INR74.50 Million Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR257.5 Million Proposed LT Bank BB-/Stable (Upgraded from
Loan Facility 'B+/Stable')
INR53.50 Million Export Packing P4+ (Upgraded from 'P4')
Credit
INR53.50 Million Letter of Credit P4+ (Upgraded from 'P4')
INR15.0 Million Bank Guarantee P4+ (Upgraded from 'P4')
The upgrade reflects the improvement in RIPL's operating
performance with better-than-expected revenues and profitability,
leading to more-than-expected cash accruals. This is mainly
because of stabilization of operations at its Nashik (Maharashtra)
unit and entry into higher margin domestic business. The upgrade
also reflects CRISIL's belief that RIPL's topline and
profitability will continue to improve, driven by higher domestic
sales from the launch of its own brand of socks and sales to other
players such as Levi Strauss & Co.
The ratings continues to reflect RIPL's weak financial risk
profile, marked by small net worth, high gearing, and moderate
debt protection metrics, average scale of operations, product
concentration in revenue profile, and susceptibility to volatility
in the value of the Indian rupee and raw material prices. These
rating weaknesses are partially offset by the benefits that RIPL
derives from its promoters' experience in the socks manufacturing
business, and from continued business and financial support from
joint venture (JV) partner Renfro Corporation (RC, USA).
CRISIL has treated RIPL's redeemable preference share capital of
INR114.8 million outstanding as on March 31, 2010, as neither debt
nor equity, as the redemption, including interest payment, is
expected only after five yeaINR However, CRISIL has treated the
compulsorily convertible preference share capital of INR102.2
million outstanding as on March 31, 2010, as equity and part of
the company's net worth, as it is expected to be converted into
equity over the medium term.
Outlook: Stable
CRISIL believes that RIPL's financial risk profile will remain
weak and scale of operations will remain small over the medium
term, on account of its large debt levels and limited product
profile. However, RIPL will continue to benefit from the support
from its overseas JV partner, RC. The outlook may be revised to
'Positive' if RIPL's net cash accruals are better than expected,
leading to improvement in its liquidity and financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in RIPL's financial risk profile, most
likely because of depressed cash accruals.
About Renfro India
RIPL was originally set up as Karnik Hurtwits Intersocks Pvt Ltd
in 1995 as an equal JV between Mr. C Y Pal and Hurtwits Intersocks
SRL (an Italian socks manufacturer). Subsequently, in 2002-03
(refers to financial year, April 1 to March 31), the stake owned
by the Hurtwits group was sold to RC, and RIPL got its current
name. The company manufactures and exports socks.
RIPL has two socks manufacturing units in Nashik and Pune
(Maharashtra), with a combined manufacturing capacity of 31.9
million pairs per annum. It manufactures socks for various large
US-based players such as Wal-Mart Stores Inc, and European players
such as Marks & Spencer Plc, UK, Hema BV, Netherlands, and markets
its products through RC.
RIPL reported a profit after tax of INR6 million on an operating
income of INR591.3 million for 2009-10, against a net loss of
INR49.5 million on net sales of INR369.7 million for 2008-09.
SENDOZ IMPEX: CRISIL Assigns 'BB-' Rating to INR100MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank loan
facilities of Sendoz Impex Ltd.
Facilities Ratings
---------- -------
INR100 Million Cash Credit BB-/Stable (Assigned)
INR50 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Sendoz group's below-average financial
risk profile, marked by weak interest coverage and high total
outside liabilities to tangible net worth, and large working
capital requirements. These rating weaknesses are partially
offset by the Sendoz group's favorable market position in the coal
trading industry, supported by its promoters' extensive industry
experience and strong customer relationships.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SIL, Sendoz Commercials Pvt. Ltd, and
Shri Panchmukhi Minerals Co Pvt. Ltd. This is because these
entities, together referred to as the Sendoz group, are in a
similar line of operations, under common management, and have
fungible cash flows.
Outlook: Stable
CRISIL believes that the Sendoz group's financial profile will
remain constrained due to low profitability and large working
capital requirements. The outlook may be revised to 'Positive' in
case of significant improvement in the group's financial risk
profile, backed by healthy accruals. Conversely, the outlook may
be revised to 'Negative' in case of a large debt-funded capital
investment leading to deterioration in its financial risk profile,
or significant stretch in receivables, leading to deterioration in
its liquidity.
About the Group
SIL, a closely held public limited company, was promoted in 1994
by Kolkata-based Poddar family. The company is engaged in coal
trading and also provides liaising work for companies with coal
linkages. The group has been in the coal industry since 1972. Its
associate companies, SCPL and SPML, are also in similar
operations. The group procures coal mainly through auctions from
Coal India Ltd against advance payment; a small proportion is also
purchased from local traders. It supplies coal mainly to
companies in steel and cement industries.
The Sendoz group reported a profit after tax (PAT) of INR19.3
million on operating income of INR2.0 billion for 2009-10, against
a PAT of INR22.3 million on operating income of INR2.7 billion for
2008-09.
SHALAKA INFRA-TECH: CRISIL Assigns 'BB+' Rating to Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Shalaka Infra-Tech (India) Pvt Ltd.
Facilities Ratings
---------- -------
INR42.00 Million Cash Credit BB+/Stable (Assigned)
INR27.50 Million Letter of Credit P4+ (Assigned)
INR280.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Shalaka group's small scale of operations
in the fragmented electrical installation and construction
industry, geographical concentration in its revenue profile, and
its large working capital requirements. These weaknesses are
partially offset by the Shalaka group's comfortable financial risk
profile, marked by low gearing and healthy debt protection
metrics, strong revenue growth, and healthy order book.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SITIPL, Shalaka Projects Pvt Ltd, and
Chetak Infrastructure Pvt Ltd, together referred as the Shalaka
group. This is because all three entities have the same
promoters, are in the same line of business, and under common
management. SPjPL and CIPL derive all their revenues from work
sub-contracted to them by SITIPL. The promoter family is also a
majority shareholder in Shalaka Properties Pvt Ltd, which is into
real estate development. CRISIL has not consolidated the
financial risk profile of SPPL as there are limited financial and
no business linkages between it and other companies in the group.
Outlook: Stable
CRISIL believes that the Shalaka group will remain a small
regional player, as the majority of its work is concentrated in
Maharashtra and Goa. The outlook may be revised to 'Positive' in
case of improvement in the group's working capital management,
leading to improvement in liquidity, or in case of better-than-
expected increase in sales and profitability. Conversely, the
outlook may be revised to 'Negative' if the group's liquidity
deteriorates, on account of delays in execution of its order book,
leading to low profitability and cash accruals, or if it takes
additional exposure to real estate development.
About the Group
Incorporated in 2007 by the Lunawat family of Pune (Maharashtra),
SITIPL executes electrical and civil construction contracts on a
turnkey basis for various government and autonomous government
bodies. The group's operations are concentrated in Maharashtra,
Goa and parts of Madhya Pradesh. SPjPL and CIPL are into
electrical installation and civil construction work. Both
companies' revenues, in the past three years, have been from work
sub-contracted by SITIPL. SPjPL earned revenues of around INR87
million and CIPL earned revenues of around INR33 million in 2009-
10 (refers to financial year, April 1 to March 31).
The Lunawat family is the majority shareholder in SPPL. It is
developing a residential real estate project in Salisbury Park
(Pune). Bookings for the project started in October 2010. CIPL had
invested around INR9 million in SPPL as on March 31, 2010
SHIVSU CANADIAN: CRISIL Assigns 'BB+' Rating to Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Shivsu Canadian Clear International Ltd.
Facilities Ratings
---------- -------
INR25.0 Million Cash Credit BB+/Stable (Assigned)
INR20.0 Million Letter of Credit P4+ (Assigned)
and Bank Guarantee
The ratings reflect Shivsu's modest scale of operations marked by
low net worth, modest profitability and stretched liquidity
profile. These rating weaknesses are partially offset by the
extensive experience of Shivsu's promoters in the water-treatment
solutions sector, its diversified product basket, and healthy
demand outlook for the sector.
Outlook: Stable
CRISIL believes that Shivsu will continue to maintain its
established market position, and benefit from its comfortable
financial risk profile and diversified products and services, over
the medium term. The outlook may be revised to 'Positive' in case
Shivsu's credit risk profile strengthens because of significant
improvement in revenues and profitability margins, while improving
its working capital cycle and order book-to-billing ratio.
Conversely, the outlook may be revised to 'Negative' in case
Shivsu's financial risk profile deteriorates on account of delays
in project implementation, resulting in time and cost overruns, or
large debt-funded capital expenditure, or further deterioration in
its working capital cycle.
About Shivsu Canadian
Shivsu provides water-treatment solutions and related services to
various sectors and industries including food and beverages,
chemicals, pharmaceuticals, textiles, tanneries, and hospitals. It
is promoted by the Eashwaran family of Chennai, which has
experience of more than two decades in this industry. Shivsu is
present in four major segments: bottling equipment, sewage
treatment, effluent treatment, and desalination projects. In the
last two years, the company has focused on desalination projects.
Shivsu reported a profit after tax (PAT) of INR6.5 million on net
sales of INR511.9 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR7.1 million on net
sales of INR972.3 million for 2008-09.
SIDDIQUE TRADING: CRISIL Puts 'B' Rating on INR100MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Siddique Trading Company Pvt Ltd.
Facilities Ratings
---------- -------
INR100.00 Million Cash Credit B/Stable (Assigned)
INR450.00 Million Letter Of Credit P4 (Assigned)
The ratings reflect STC's constrained accruals, as its operations
are in the nascent stage, its significant dependence on debt for
funding its working capital requirements, and its susceptibility
to volatility in foreign exchange rates. These rating weaknesses
are partially offset by STC's promoters' experience in trading in
various commodities, abroad.
Outlook: Stable
CRISIL believes that STC will maintain a stable business risk
profile, backed by the promoters' experience in the commodities
trading business. The outlook may be revised to 'Positive' if STC
reports larger-than-expected cash accruals and better-than-
expected capital structure. Conversely, the outlook may be revised
to 'Negative' if STC's customers terminates their sales-contracts
with the company, its relationship with its supplier deteriorates,
or the company undertakes a larger-than-expected, debt-funded
capital expenditure programme or makes unrelated diversifications,
thereby weakening its capital structure.
About Siddique Trading
STC, incorporated in 2009, is part of the Siddique group, which
has operations in India, Hong Kong, China, the United Arab
Emirates, and Singapore. STC was set up to take care of the
group's Indian trading operations; however, it is yet to start
commercial operations. The group has been operating in India
(predominantly high-seas sales) through Siddique Infrastructure
Projects Pvt Ltd since 2007. However, from April 2011 onwards,
most of the group's trading operations will be carried out by STC,
which will primarily export sunflower seeds from India and import
coal, over the next one year. STC plans to trade in soya, tobacco,
steel products, crude, edible oil, and tobacco, over the medium
term. The Siddique group also has projects planned in the
infrastructure, power, quarry, and real estate sectors.
VARIETY PRINTS: Fitch Affirms National LT Rating at 'B(ind)'
------------------------------------------------------------
Fitch Ratings has affirmed India-based Variety Prints Private
Limited's National Long-Term Rating at 'B(ind)' with a Stable
Outlook. The agency has also taken these actions on VPPL's bank
loans:
-- INR22.4m long term loans: assigned 'B(ind)'; and
-- INR150m fund-based limits (enhanced from INR75m): affirmed
at 'B(ind)'.
The affirmations continue to reflect VPPL's weak financial
profile, as reflected in its high leverage (FY10: net debt/EBITDA:
7.5x) and low EBITDA margin (FY10: 1.7%), delays in completion of
its capex plan and its relatively shorter track record of
operations.
VPPL's ratings draw some comfort from the partial
commercialization of production at its garment facility in Kolkata
from November 2010 and the expected improvement in margins due to
the capacity utilization at the new facility.
Positive rating guidelines include an improvement in VPPL's EBITDA
margins, leading to net leverage (total adjusted net
debt/operating EBITDA) of below 4x from FY12. Negative rating
guidelines include net leverage exceeding 7x from FY12.
VPPL started operations in 2008, and deals in and manufactures
knitted fabrics and garments. The company is a part of the
Sonthalia group of Kolkata. It is currently setting up a 3.28
million pieces per year garment manufacturing facility in Kolkata,
which is expected to be completed by end-April 2011. In FY10, it
reported revenue of INR629.4 million with an EBITDA of INR10.8
million. For the nine months of the financial year ended March
2011 (9MFY11), VPPL reported revenue of INR707 million with an
EBITDA of INR12.5 million
====================
N E W Z E A L A N D
====================
ALLIED FARMERS: In Dispute with Buyer Over Ex-Hanover Loans
-----------------------------------------------------------
The New Zealand Press Association reports that Allied Farmers Ltd
said the sale of former Hanover receivables did not go through as
expected by March 31 and it is now in dispute with the buyer.
NZPA says the sale agreement was entered into by subsidiary Allied
Farmers Investments Ltd last September.
According to NZPA, the purchaser of the receivable has written to
Allied Farmers regarding the payment delay, alleging that Allied
Farmers was in default under a NZ$7 million guarantee in respect
of repayment of the loan.
Allied Farmers did not accept that it is bound by a guarantee as
alleged, and was taking legal advice, NZPA says. There is no
impact on the carrying value of the loan asset.
About Allied Farmers
Based in New Zealand, Allied Farmers Limited (NZE:ALF) --
http://www.alliedfarmers.co.nz/-- is engaged in livestock, real
estate, finance, wool brokering and manufacturing (meat and
timber). Rural Services comprises livestock, merchandise and real
estate operations. The Company's Rural Services activities are
carried out in Taranaki, Waikato, King Country and Manawatu. Its
Financial Services activities are carried out by Allied Nationwide
Finance Limited in Auckland, Wellington and Christchurch. Timber
processing comprises the Company's discontinued sawmilling
operations. On June 29, 2007, Allied Nationwide Finance Limited,
Nationwide Finance Limited and Allied Prime Finance Limited were
amalgamated, with Nationwide Finance Limited being the continuing
entity. Nationwide Finance Limited subsequently changed its name
to Allied Nationwide Finance Limited.
PIKE RIVER: Receivers Ask Government's Help on Inquiry Cost
-----------------------------------------------------------
The New Zealand Herald reports that receivers for Pike River Coal
have asked the Government to help cover a multi-million dollar
legal and wage bill it is expected to run up during the Royal
Commission of Inquiry into the disaster which took place at its
mine last November.
The NZ Herald relates that Stacey Shortall, the lawyer
representing the mine owners -- which is now in receivership --
said Tuesday the company did not have the financial resources to
fully participate in the inquiry into the explosion which killed
29 miners at Pike River.
Ms. Shortall said it could not provide witness briefs,
compilations of documents and other requirements ahead of its
directors and staff giving evidence, according to the NZ Herald.
According to the report, Pike River Coal receiver John Fisk said
his team had now written to Attorney-General Chris Finlayson
asking for Government assistance.
Mr. Fisk, as cited by the NZ Herald, said the duty of receivers to
repay Pike River Coal's secured creditors was coming into conflict
with paying for the extensive demands by the Royal Commission.
"The legal advice we have is that if we actually took a full part
in preparing witness evidence and other materials, we could be
talking in the millions of dollars of costs," the NZ Herald quotes
Mr. Fisk as saying. "Our primary responsibility is to repay the
secured creditors who employed us. This is where receivership
laws end up grating against what a Royal Commission can achieve.
It's a unique situation."
Mr. Fisk said that while most Government assistance would be going
towards legal fees, wages for company employees such as chief
executive Peter Whittall was an ongoing cost. Mr. Whittall and
other employees had been working for months to provide information
about the company to the Royal Commission, he said.
He was concerned employees would be lost without Government help
to pay them.
"The worst case scenario is that we end up in a situation where
Pike River has no employees at all. We can hold them here against
their will. Their assistance would be lost."
Mr. Fisk said receivers had been working to find funding for legal
costs for "weeks" but it had only been made public at the inquiry
on Tuesday, the report adds.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
Pike River Coal Ltd was placed into receivership in December 2010.
New Zealand Oil & Gas, the company's largest shareholder,
appointed accountants PricewaterhouseCoopers as receivers. The
company owed NZ$80 million to secured creditors BNZ and NZ Oil &
Gas. Pike River also owed another estimated NZ$10 million to
NZ$15 million to contractors, including some of the men who lost
their lives in the disaster.
The TCR-AP, citing a TVNZ report, said PricewaterhouseCoopers'
strategy now is to stabilize the mine with a view to either
restructuring the company or selling the assets while at the same
time maintaining a core team of workers to maintain the mine site
and pursuing insurance claims. The receivers have had
"unsolicited expressions of interest" in Pikes assets, though they
are still considering options for the mine. Under the terms of a
Deed of Priority, BNZ and NZOG rank equally and have priority over
Solid Energy among secured creditors, TVNZ added.
REDGROUP RETAIL: To Sell 10 Whitcoulls Stores in New Zealand
------------------------------------------------------------
The Administrator of REDgroup Retail Pty Ltd has agreed to the
sale of a portfolio of 10 bookstores located in New Zealand's
airports.
These Whitcoulls stores are located in major airports at: Auckland
(5); Wellington (2); Christchurch (2) and Rotorua (1).
A sale of these stores has been agreed with Australia-based travel
retail specialist LS Travel Retail Pacific. The sale price
remains confidential.
LS Travel Retail Pacific -- formerly known as Lagardere Services
Asia Pacific -- is a leading travel retail organisation, with
stores at airports and major transport hubs throughout Australia,
as well as duty free operations in Noumea. The company is part of
the global LS Travel Retail group, which operates almost 4,000
stores in 20 countries around the world. It is intended that these
New Zealand stores will be rebadged under the Relay brand over
coming weeks.
Administrator Mr. Steve Sherman said he was delighted to have
found such a suitable buyer for the business.
"This is a very good match," he said. "LS Travel Retail is a
global leader in travel retailing and this provides it with an
excellent footprint in a growing market. Importantly, this
guarantees the future of these stores and has preserved more than
100 jobs."
Mr. Sherman said the sale process for REDgroup Retail's
New Zealand business is continuing and he expects to have a
clearer view of its prospects after the closure of final binding
bids later in April. The REDgroup business in New Zealand now
includes 77 stores: 63 Whitcoulls; 5 Borders and 9 Bennetts
stores.
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
=====================
P H I L I P P I N E S
=====================
BANCO FILIPINO: Operated a 'Ponzi Scheme,' BSP Says
---------------------------------------------------
The Bangko Sentral ng Pilipinas said Banco Filipino Mortgage and
Savings Bank was operating as a pyramid or Ponzi scheme in the
past years, using new deposits to pay old ones, and with its
officers paying themselves and their lawyers much more than the
bank was earning.
The central bank said in a statement on Tuesday that Banco
Filipino's lawyers, led by Perfecto Yasay, former chairman of the
Securities and Exchange Commission, and Harry Roque were paid
PHP245 million in 2010 alone. Of this, PHP131 million was paid
from October to December last year.
"These legal fees alone exceeded the average gross or total income
of BF of P242 million from 2007 to 2009. On the other hand, the
officers and their consultants were paid roughly P250 million in
2010," the BSP said.
The owners, led by Bobby Aguirre, the bank's directors, officers
and so-called related interests also borrowed PHP2.2 billion of
the depositors' money and never paid them back. These loans
violated existing caps or limits set by the authorities.
The BSP emphasized that banks are not created for the benefit of
its directors or officers. Instead, BF was being run to the
"extreme prejudice of its depositors" since it was violating
various laws and BSP regulations, including BF's refusal to submit
periodic financial statements for the few years to hide its true
financial weaknesses.
These were all contained in a 170-page Comment/Opposition the
Bangko Sentral ng Pilipinas and the Monetary Board filed Tuesday
(April 5) with the Court Appeals to respond to BF's petition
questioning its being placed under the receivership of the
Philippine Deposit Insurance Corporation last month after it
failed to fund the withdrawals by its depositors, and asking that
it be reopened.
These weaknesses, admitted by Mr. Yasay, who is also BF vice
chairman, and Francisco Rivera, executive vice president in open
court, included BF's:
* inability to generate enough income from normal banking
operations;
* accumulated losses of PHP12 Billion;
* capital deficiency of PHP1 billion, which prevents BF from
covering deposit liabilities;
* Operations "without safety" to its creditors, depositors
and the general public;
* Failure to hold any meeting of its board of directors and
the failure of its Executive Committee or its Board of
Directors to review the financials of the bank.
Based on a Memorandum submitted by the Integrated Supervision
Department II of the BSP and the Report of Examination cited in
the Comment, Banco Filipino incurred average losses of
PHP2.8 Billion for the years 2007-2009.
It added that BF is actually insolvent, meaning it has
PHP8.4 billion more liabilities than assets. Under the law, BSP
through the Monetary Board must put an insolvent bank under
receivership to protect the depositors.
The BSP examination revealed that BF's average gross income for
the years 2007-2009 amounted to around PHP242.5 million, which
would be insufficient to pay the average interest expense of P1.1
billion for the same period.
This was because Banco Filipino, to fund its operations and pay
its officers, consultants and lawyers, offered depositors 6%-13.9%
interest for special savings deposits, while most banks were
paying only 1.8%-3.3%.
Instead of investing the deposits, these were instead used to pay
the interest on old deposits and its day-to-day operations, making
its operations akin to a Ponzi or pyramiding scheme which are
considered fraudulent investment operations.
Finally, arguing against Banco Filipino's prayer for injunction
and to be reopened, BSP argued that to issue an injunction and to
reopen the bank is to allow an unending vicious cycle of Banco
Filipino's inability to service not only the high deposit interest
rates, but also to fund the withdrawals of the deposits.
"In no uncertain terms, Banco Filipino's only way of operating is
to continue engaging in a Ponzi scheme where withdrawals are
funded by later deposits," it said.
"In view of all of these undisputed facts, BSP's action in
recommending and thereafter placing Banco Filipino under the
receivership of PDIC was the only course left in order to protect
Banco Filipino's depositors, creditors and the public in general,"
it added.
As reported in the Troubled Company Reporter on March 21, 2011,
BusinessWorld Online reports that Banco Filipino Savings and
Mortgage Bank has been placed under receivership by the Bangko
Sentral ng Pilipinas after the thrift bank stopped servicing
clients due to funding problems.
About Banco Filipino
Banco Filipino Savings & Mortgage Bank --
http://www.bancofilipino.com/-- was organized in 1964, offers
full domestic banking services, which are five main types,
namely: cash services; commercial services; loans; money market
services; and trust services. It started operations on July 9,
1964.
BANK OF THE PHILIPPINE ISLANDS: Fitch Affirms FC IDR at 'BB'
------------------------------------------------------------
Fitch Ratings has affirmed Bank of the Philippine Islands'
ratings, including its 'BB' Long-Term Foreign Currency Issuer
Default Rating and 'C' Individual rating.
BPI's ratings reflect its established local franchise,
conservative management team, broad-based earnings and strong
balance sheet. The Rating Outlook is Stable as Fitch expects the
bank's credit profile to remain one of the strongest among its
rated domestic peers, taking into account its high capital buffer,
satisfactory earnings and improved reserve levels.
The bank's Long-Term Foreign and Local Currency IDRs are at the
same level as those of the sovereign given the former's sizeable
government securities holdings. This has also led to the bank's
'BB' Foreign Currency IDR being lower than that of other banks
with similar Individual Ratings. Its 'AAA(phl)' National Long-
Term Rating is already at the highest level on the scale while
upside to its Individual Rating, the highest among the rated local
banks, is limited.
BPI's IDRs could benefit from an upgrade of the sovereign ratings.
Downward rating pressure could stem from unexpectedly material
weakening in asset quality and/or an event risk together with
lower capitalisation, especially in an economic downturn.
BPI's capital position has been one of the strongest among its
rated local peers, with a core Tier 1 capital adequacy ratio of
13.9% at end-2010. Fitch takes a positive view of the bank's
earnings record due to its diversified base, well-managed costs
and low impairment charges. Over the past three years, BPI has
been setting aside more provisions, with reserves covering 83% of
non-performing loans and 24% of investment properties at end-2010
(end-2009: 69% and 23% respectively).
The Support Rating and Support Rating Floor of BPI are driven by
its systemic importance to the local economy and are the same
level as other systemically-important banks in the country. BPI
is the third-largest Philippine bank, with a 13% share of system-
wide assets, reflecting its leading domestic franchise. This in
turn supports its stable funding base and liquid balance sheet,
with a loans/deposits ratio of 50%-60%.
In line with Fitch's criteria of rating financial institutions'
subordinated notes, BPI's subordinated notes are rated one notch
below the bank's National Long-Term rating to reflect their
subordinated status and the absence of going-concern loss-
absorption features.
Full list of ratings:
-- Long-Term Foreign Currency IDR affirmed at 'BB';
Outlook Stable
-- Long-Term Local Currency IDR affirmed at 'BB+';
Outlook Stable
-- National Long-Term Rating affirmed at 'AAA(phl)';
Outlook Stable
-- Individual Rating affirmed at 'C'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB-'
-- Subordinated notes rating affirmed at 'AA+(phl)'
*********
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 ***