/raid1/www/Hosts/bankrupt/TCRAP_Public/110609.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, June 9, 2011, Vol. 14, No. 113
Headlines
A U S T R A L I A
ADVANCED MEDICAL: Is Insolvent; Fails to Disclose Administration
BELLA TRUST: Fitch Assigns 'Bsf' Rating to Class E Notes Due 2017
GRAB JEANS: Collapses Amid Online Retail Increasing Popularity
RESORT CORP: Receivers Seize Remaining Assets as DOCA Fails
WORLD WIDE: Administrators to Recommend Liquidation
H O N G K O N G
GAMZE LIMITED: Court Enters Wind-Up Order
GOOD HARVEST: Members and Creditors' Meetings Set for June 17
HK MANUFACTURING: Court to Hear Wind-Up Petition on June 15
HK POETRY: Creditors' Proofs of Debt Due June 30
HOPES ENTERPRISES: Creditors' Proofs of Debt Due June 24
HYATT (HK): Creditors' Meeting Set for June 24
MAN EARN: Ho and Kong Appointed as Liquidators
MBNS ENTERPRISES: Members' Final Meeting Set for July 4
MF ASSET: Members' Final Meeting Set for July 5
NEW STRONG: Unsecured Creditors to Get 0.36% Recovery on Claims
NOBLE ART: Creditors' Meeting Set for June 24
PACIFIC CROWN: Creditors and Contributories to Meet on June 14
PRIMETIME HOLDINGS: Names John Howard Batchelor as New Liquidator
W.H. MANDOLYN: Court Enters Wind-Up Order
I N D I A
ACTGEN PHARMA: CRISIL Cuts Rating on INR180MM Term Loan to 'D'
AMBATTUR DEVELOPERS: CRISIL Reaffirms 'BB+' Rating on INR1.1B Loan
B KUNJIR: CARE Assigns 'CARE BB+' Rating to INR34.99cr LT Loan
CAPITAL METERS: Fitch Affirms National LT Rating at 'B(ind)'
CAPITAL POWER: Fitch Affirms National LT Rating at 'B+(ind)'
GEETHANJALI EDUCATION: CRISIL Assigns 'C' Rating to INR120MM Loan
HALDIA STEELS: CRISIL Cuts Rating on INR160MM Term Loan to 'D'
HARIG INDIA: CRISIL Cuts Rating on INR50MM Cash Credit to 'D'
IMAGE LABELS: CRISIL Assigns 'D' Rating to INR62.5MM LongTerm Loan
KIMMANE GUNDAPPA: CARE Rates INR17cr LT Bank Loan at 'CARE BB'
MADHAV STEEL: CRISIL Raises Rating on INR30MM Cash Credit to 'BB'
MONO STEEL: CARE Reaffirms 'CARE BB+' Rating on INR35cr Bank Loans
NARENDRA TEA: CRISIL Puts 'P4+' Rating on INR50MM Packing Credit
NAVDURGA RICE: CARE Assigns 'CARE BB-' Rating to INR9.8cr Loan
PRAKASH SPONGE: CRISIL Assigns 'BB-' Rating to INR200MM LT Loan
RITU SHIPPING: CARE Assigns 'CARE BB-' Rating to INR15cr ST Loan
RUBINO INDUSTRIES: CARE Assigns 'CARE BB' Rating to INR7.5cr Loan
S. V. ALUEXT: CRISIL Assigns 'D' Rating to INR60.5MM Term Loan
SHREE LAXMI: CARE Rates INR15cr Bank Loans at 'CARE BB-'
SHUBHLAXMI CASTING: CARE Puts 'CARE BB-' Rating on INR14.13cr Loan
UMIYA INDUSTRIES: CARE Rates INR7cr LT Bank Loan at 'CARE B+'
VEDANTA RESOURCES: Fitch Rates 'BB' to US$900MM Sr. Notes Due 2021
N E W Z E A L A N D
SOUTH CANTERBURY: Fonterra Director Sues Firm's Receivers
- - - - -
=================
A U S T R A L I A
=================
ADVANCED MEDICAL: Is Insolvent; Fails to Disclose Administration
----------------------------------------------------------------
Cameron England at The Advertiser reports that the Australian
Competition and Consumer Commission said Advanced Medical
Institute is insolvent but has not told its customers.
The company was placed in administration on Dec. 22, 2010, with
debts of about AU$50 million, the day after the ACCC started court
action alleging the company had engaged in unconscionable conduct
towards customers, the report says.
According to The Advertiser, the company's administrators, BDO
Australia, have in the past indicated that they believe the
company can be restructured and will be holding a creditors'
meeting on July 20 to discuss the future of the company.
The Advertiser relates that the ACCC said AMI had not told its
clients it was in administration and that it might not be able to
provide goods and services after this date.
"The ACCC further alleges that AMI has wrongly accepted payments
in advance for treatments when there is a real risk that [it] will
not be able to continue to supply its treatments to patients and
that patients will not receive refunds claimed by them, after the
conclusion of its administration," according to The Advertiser.
The Advertiser says the AMI Web site makes no mention of the fact
that the company is in financial trouble. The company merely
states that "[it is] extremely excited by [its] prospects and
[its] opportunities for growth in the coming years."
The ACCC's Federal Court action, scheduled for today, June 9,
seeks to force AMI to disclose its administration status and the
impact this could have on clients, the report relates.
The ACCC is also seeking to restrain the company from taking
payment for goods and services to be provided after July 20, or
the date of the next creditors' meeting, The Advertiser adds.
About Advanced Medical
Advanced Medical Institute Pty Ltd is a service provider company
that arranges for patients with Sexual Dysfunction to be provided
with medical services, pharmaceuticals and associated support
services.
AMI is a wholly owned subsidiary of Advanced Medical Institute
Inc., a publicly held Nevada corporation that currently trades on
the over-the-counter (bulletin board) market under the symbol
AVMD.OB. AVMD operates primarily through its wholly-owned
Australian subsidiary, AMI Australia.
BELLA TRUST: Fitch Assigns 'Bsf' Rating to Class E Notes Due 2017
-----------------------------------------------------------------
Fitch Ratings has assigned final ratings, Outlooks and Loss
Severity (LS) ratings to the Bella Trust No. 2 Series 2011-1
automotive loan receivables-backed securitisation, due November
2017:
-- AUD90.0m Class A1 notes: 'F1+sf';
-- GBP120.0m Class A2a notes: 'AAAsf'; Outlook Stable; Loss
Severity Rating at 'LS1';
-- AUD176.0m Class A2b notes: 'AAAsf'; Outlook Stable; Loss
Severity Rating at 'LS1';
-- AUD56.3m Class B notes: 'Asf'; Outlook Stable; Loss Severity
Rating at 'LS3';
-- AUD17.8m Class C notes: 'BBBsf'; Outlook Stable; Loss
Severity Rating at 'LS3';
-- AUD4.2m Class D notes: 'BBsf'; Outlook Stable; Loss Severity
Rating at 'LS5';
-- AUD10.4m Class E notes: 'Bsf'; Outlook Stable; Loss Severity
Rating at 'LS4'; and
-- AUD12.8m Seller notes: NRsf.
The notes were issued by BNY Trust Company of Australia Limited in
its capacity as trustee of Bella Trust No. 2 Series 2011-1. The
Bella Trust No.2 Series 2011-1 is a legally distinct trust
established pursuant to a master trust and security trust deed.
At the cut-off date, the total collateral pool consisted of 24,272
automotive loan receivables totalling approximately AUD546.5m,
with an average size of AUD22,517. The pool is comprised of loan
receivables originated by Capital Finance Australia Limited (CFAL)
whose ultimate parent is the Lloyds Banking Group plc ('AA-
'/Outlook Stable/'F1+'), as well as amortising principal and
interest loans for both new (63.5%) and used (36.5%) vehicles,
with varying balloon amounts payable at maturity. The weighted
average balloon payment for the portfolio is 31.2%.
The 'F1+sf' Short-Term ratings assigned to the Class A1, and the
Long-Term rating of 'AAAsf' with Stable Outlook assigned to the A2
notes is based on: the quality of the collateral; the 18.39%
credit enhancement provided by the subordinate class B, C, D, E
and seller notes ; the liquidity reserve account of 1.0% of
outstanding notes, funded by issuance proceeds; an interest rate
swap provided by Lloyds TSB Bank plc, Australia branch; and CFAL's
auto receivable underwriting and servicing capabilities.
The final ratings on the Class B, C, D and E notes are based on
all the strengths supporting the Class A notes, excluding their
credit enhancement levels.
GRAB JEANS: Collapses Amid Online Retail Increasing Popularity
--------------------------------------------------------------
SmartCompany reports that Melbourne-based denim label Grab Jeans
has collapsed after six years of trading amid debts, weakness in
the fashion industry and the increasing popularity of online
sales.
Jim Downey, of insolvency and reconstruction service specialists
J P Downey & Co, told SmartCompany he expects to sign off a new
owner shortly, most likely from the fashion industry.
"It's symptomatic of what is happening in retail at the moment,
particularly in fashion," SmartCompany quotes Mr. Downey as
saying. "There's so much happening online."
In addition to the directors taking a hit, Mr. Downey said, a
debenture holder is owed a substantial amount and the Australian
Taxation Office has been a "major catalyst" in the collapse,
SmartCompany relates.
"The global financial crisis times were extraordinary and people
shouldn't think that the office will be as flexible as they were
during those times," Mr. Downey told SmartCompany. "They're back
to their attitude that they're to collect their revenue."
Based in Melbourne, Grab Jeans is co-owned by Grant Moffitt and
Amanda Gilham. The business started trading in 2005 and quickly
built up a strong following among younger female consumers.
RESORT CORP: Receivers Seize Remaining Assets as DOCA Fails
-----------------------------------------------------------
Nick Nichols at goldcoast.com.au reports that the receivers have
seized control of all remaining assets within the Resort Corp
group following the collapse of a deed of company arrangement
(DOCA) put in place almost two years ago.
Under the DOCA, Gold Coast development duo Paul Brinsmead and
Peter Madrers were to undertake an orderly sell-off of Resort Corp
assets over 30 months to pay off AU$300 million in loans owed to
banks and mortgage funds.
According to goldcoast.com.au, the receivers, Greg Moloney and
Will Colwell of Ferrier Hodgson, were appointed by Capital Finance
to take control of the Resort Corp assets in April and they have
now placed three properties owned by the Gold Coast property group
on to the market.
The properties, goldcoast.com.au relates, comprise of a waterfront
residential site adjacent to Townsville's Jupiters Casino, a major
Airlie Beach development site, and a beachfront home at
Kingscliff's Salt Village. They are among a raft of assets that
remain unsold by Resort Corp since the DOCA was secured by Messrs.
Brinsmead and Madrers in June 2009, the report notes.
It is unclear how many Resort Corp assets were sold by the
directors over the past two years and how much was realized, the
report says.
goldcoast.com.au adds that a spokesperson for Resort Corp,
administrator David Clout of Brisbane firm David Clout and
Associates, confirmed Tuesday that the DOCA had collapsed and all
22 Resort Corp companies were in liquidation.
Australia-based Resort Corp -- http://www.resortcorp.com.au/--
was established in 2001. The company is involved in luxury
beachside lifestyle developments.
WORLD WIDE: Administrators to Recommend Liquidation
---------------------------------------------------
Colin Kruger at The Sydney Morning Herald reports that
administrators appointed to World Wide Entertainment said they
will recommend that creditors place the company into liquidation
if one of the company's creditors does not agree to cap their
claim against WWE.
John Bertrand was on the company's board for seven years and still
holds a 19.9% stake in WWE, the report cites.
According to SMH, Mr. Bertrand stood down from the board in
June 2009 after an ugly five-month patch that led to the company
downgrading earnings barely months after it reverse-listed onto
the Australian Stock Exchange.
While WWE managed to stay afloat during the financial crisis,
which was blamed for the 2009 downgrade, administrators say it was
fatally torpedoed by another Aussie champion: the dollar.
Another WWE shareholder who won't be going down with the sinking
ship is Bill Farrow, the former chief of the failed building
society, Pyramid, SMH says. Mr. Farrow resigned from the
company's board before its ASX debut.
About World Wide
Based in Australia, World Wide Entertainment Group Limited
(ASX:WWG) -- http://www.wwegroup.com.au/-- is engaged in the
media industry, specifically the production and international
distribution of television programming. It operates in three
segments: World Wide Entertainment Production and Sales Pty Ltd
(WWEPS), Clear Cut tailored Programming Pty Ltd (CCTP) and Genr8
Digital Media Pty Ltd (Genr8). WWEPS and Genr8 are distribution
units.
World Wide Entertainment Production and Sales Pty Ltd, the
operating subsidiary of World Wide Entertainment Group Limited,
was placed into voluntary administration on May 13, 2011.
Mr. Victor Dye of Dye & Co Pty Ltd has been appointed by the board
of World Wide Entertainment Production and Sales Pty Ltd as
administrator.
================
H O N G K O N G
================
GAMZE LIMITED: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on May 25, 2011, to
wind up the operations of Gamze Limited.
The official receiver is E T O'Connell.
GOOD HARVEST: Members and Creditors' Meetings Set for June 17
-------------------------------------------------------------
Members and creditors of Good Harvest Textiles Limited will hold
their annual general meetings on June 17, 2011, at 2:30 p.m., and
3:00 p.m., respectively at 29/F, Caroline Centre, Lee Gardens Two,
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.
HK MANUFACTURING: Court to Hear Wind-Up Petition on June 15
-----------------------------------------------------------
A petition to wind up the operations of Hong Kong Manufacturing
Company Limited will be heard before the High Court of Hong Kong
on June 15, 2011, at 9:30 a.m.
Choi Ko Yan Oscar filed the petition against the company on
March 28, 2011.
The Petitioner's solicitor is:
Holman Fenwick Willan
15th Floor, Tower One Lippo Centre
89 queensway, Hong Kong
HK POETRY: Creditors' Proofs of Debt Due June 30
------------------------------------------------
Creditors of Hong Kong Poetry Territory Publishing Company
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by June 30, 2011, to be included in
the company's dividend distribution.
The company's liquidators are Yan Chun Fu and Tang Shui Man.
HOPES ENTERPRISES: Creditors' Proofs of Debt Due June 24
--------------------------------------------------------
Hopes Enterprises Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by June 24, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Poon Kwok Fai
23/F, Wing On House
71 Des Voeux Road
Cetral, Hong Kong
HYATT (HK): Creditors' Meeting Set for June 24
----------------------------------------------
Creditors of Hyatt (HK) Limited will hold their meeting on
June 24, 2011, at 11:00 a.m., for the purposes provided for in
Sections 241, 242, 243, 244 of the Companies Ordinance.
The meeting will be held at Suite 2302, 23/F, Seaview Commercial
Building, at 21 Connaught Road West, in Sheung Wan, Hong Kong.
MAN EARN: Ho and Kong Appointed as Liquidators
----------------------------------------------
Ho Man Kit Horace and Kong Sau Wai on Sept. 27, 2010, were
appointed as liquidators of Man Earn Limited.
The liquidators may be reached at:
Ho Man Kit Horace
Kong Sau Wai
Flat A, 12th Floor
Golden Mansion
83-85A Chatham Road
South Tsim Sha Tsui Kln
MBNS ENTERPRISES: Members' Final Meeting Set for July 4
-------------------------------------------------------
Members of MBNS Enterprises Limited will hold their final meeting
on July 4, 2011, at 10:00 a.m., at the 8th Floor, Gloucester
Tower, The Landmark, at 15 Queen's Road Central, in Hong Kong.
At the meeting, Thomas Andrew Corkhill, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MF ASSET: Members' Final Meeting Set for July 5
-----------------------------------------------
Members of MF Asset Management Hong Kong Limited will hold their
final meeting on July 5, 2011, at 10:00 a.m., at 602 The Chinese
Bank Building, at 61-65 Des Voeux Road, Central, in Hong Kong.
At the meeting, Wong Teck Meng, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
NEW STRONG: Unsecured Creditors to Get 0.36% Recovery on Claims
---------------------------------------------------------------
New Strong Enterprises Limited declared the first and final
dividend to creditors on or after June 3, 2011.
The company paid 100% to preferential creditors and 0.368595582%
to ordinary unsecured creditors.
The company's liquidators are:
Lee Yat Wah Walter
Chick Tsz Kwan Emily
5th Floor, Jardine House
1 Connaught Place, Hong Kong
NOBLE ART: Creditors' Meeting Set for June 24
---------------------------------------------
Creditors of Noble Art Limited will hold a meeting on June 24,
2011, at 3:00 p.m., for the purposes provided for in Sections 241,
242, 243, 244 of the Companies Ordinance.
The meeting will be held at Suite 2302, 23/F, Seaview Commercial
Building, at 21 Connaught Road West, Sheung Wan, in Hong Kong.
PACIFIC CROWN: Creditors and Contributories to Meet on June 14
--------------------------------------------------------------
Creditors and contributories of Pacific Crown Industrial Limited
will hold their first meetings on June 14, 2011, at 3:00 p.m., and
4:00 p.m., respectively at 14/F, The Hong Kong Club Building, at
3A Chater Road, Central, in Hong Kong.
At the meeting, Desmond Chung Seng Chiong, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
PRIMETIME HOLDINGS: Names John Howard Batchelor as New Liquidator
-----------------------------------------------------------------
John Howard Batchelor on May 12, 2011, was appointed as liquidator
of Primetime Holdings Limited.
John Howard Batchelor replaces Desmond Chung Seng Chiong who
stepped down as the company's liquidator.
The liquidators may be reached at:
Roderick John Sutton
John Howard Batchelor
14/F, The Hong Kong Club Building
3A Chater Road
Hong Kong
W.H. MANDOLYN: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on May 25, 2011, to
wind up the operations of W.H. Mandolyn International Limited.
The official receiver is E T O'Connell.
=========
I N D I A
=========
ACTGEN PHARMA: CRISIL Cuts Rating on INR180MM Term Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Actgen
Pharma Pvt Ltd to 'D/P5' from 'B-/Negative/P4'. The downgrade
reflects delays by Actgen in servicing its term loan; the delays
have been caused by Actgen's weak liquidity.
Facilities Ratings
---------- -------
INR50 Million Cash Credit D (Downgraded from
'B-/Negative')
INR180 Million Term Loan D (Downgraded from
'B-/Negative')
INR40 Million Letter of Credit P5 (Downgraded from 'P4')
Actgen was incorporated in 2008, as an equal joint venture between
Hiran Orgochem Ltd and Mr. Ajay Dharamshi. Actgen is engaged in
manufacture and sale of ciprofloxacin active pharmaceutical
ingredients. Its plant is located in Ankleshwar (Gujarat). The
plant has been built to comply with United States Food and Drug
Administration (USFDA) norms; however, the USFDA approval is yet
to be obtained.
AMBATTUR DEVELOPERS: CRISIL Reaffirms 'BB+' Rating on INR1.1B Loan
------------------------------------------------------------------
CRISIL's ratings on Ambattur Developers Pvt Ltd's bank facilities
continue to reflect ADPL's exposure to risks related to the
commercialization of its ongoing maiden hotel project, and the
expected oversupply in the hotel segment in Chennai over the
medium term. These weaknesses are partially offset by ADPL's
comfortable capital structure, and the benefits that the company
derives from its tie-up with Hyatt International Corporation Inc
(Hyatt USA; rated 'BBB/Stable' by Standard & Poor's) and its
strategic location.
Facilities Ratings
---------- -------
INR1100.00 Million Proposed BB+/Stable (Reaffirmed)
Long-Term Loan
Outlook: Stable
CRISIL believes that ADPL will commence commercial operations at
its upcoming five-star hotel without any cost or time overruns,
and shall continue to benefit from timely fund support from its
promoters. The outlook may be revised to 'Positive' if the ADPL
commissions its ongoing project sooner-than-expected or if
occupancy rates and ARR at, and accruals from, ADPL's hotel are
more than expected. Conversely, the outlook may be revised to
'Negative' if there is time or cost overrun in the hotel project,
or lower than expected room and occupancy rates leading to lower
cash accruals.
Update
ADPL's ongoing hotel project is on track, the company has so far
completed 61% of the construction work as on March 31, 2011 in
line with CRISIL's estimates. The promoter's have brought in
INR1.05 billion of equity and contracted INR300 million of term
loans, against the sanctioned INR1.1 billion, as on March 31, 2011
towards the construction of the project. The term loan repayments
of INR34.38 million will commence in June 2012. Since 2012-13 will
be the first full year of operations, the repayments against cash
accruals are expected to be stretched. However, CRISIL believes
the promoters will support the company in the initial years of
operations to meet the shortfall, if any.
About Ambattur Developers
Incorporated in 2003, ADPL is developing a five-star, deluxe-
category hotel in Chennai. The project has technical, franchise,
marketing, and management tie-ups with Hyatt, under the Park Hyatt
brand. The hotel is a 205-room upscale boutique hotel, being
constructed on a 2.3-acre land plot bought by ADPL in 2003. The
total cost of the project is around INR2.2 billion, which is being
funded in a 1:1 debt-to-equity ratio; cost incurred up to March
2010 was around INR1.35 billion. The project is expected to
commence commercial operations from January 2012 onwards.
B KUNJIR: CARE Assigns 'CARE BB+' Rating to INR34.99cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE BB+' and 'PR4+' rating to the of bank
facilities M/S. L B kunjir.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 34.99 'CARE BB+' Assigned
Short-term Bank Facilities 17.58 'PR4+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of LBK as on March 31,
2010. The rating may undergo a change in case of withdrawal of
capital or unsecured loans brought in by the partners in addition
to the financial performance and other relevant factors.
Rating Rationale
The ratings take into account LBK's relatively small size of
operations, inadequate geographical and sectoral diversification
with its focus on water supply projects in Maharashtra, high
customer concentration with only a couple of projects constituting
a major portion of the order book position, the inherent project
execution risks associated with construction contracts, and the
intense competition from unorganized players. The ratings draw
comfort from the long experience of the partners in water supply
management and irrigation projects, the company's revenue
visibility emanating from a strong order book position, its
healthy profitability margins and the Government's focus on
irrigation projects through various schemes. LBK's ability to
execute its projects in a timely manner, to be able to scale up
operations and bag contracts from diverse clientele while
maintaining its profitability margins, and to manage its working
capital cycle efficiently, in the scenario of growing competition
and rising input and financing costs, would be key rating
sensitivities.
CAPITAL METERS: Fitch Affirms National LT Rating at 'B(ind)'
------------------------------------------------------------
Fitch Ratings has affirmed India-based Capital Meters Limited's
National Long-Term rating at 'B(ind)'. The Outlook is Stable. The
agency has also affirmed these ratings on CML's bank facilities:
-- INR35m fund-based working capital limits (reduced from
INR45m): 'B(ind)'/'F4(ind)'; and
-- INR80m non-fund based working capital limits:
'B(ind)'/'F4(ind)'.
The affirmations reflect CML's experience in manufacturing
electromechanical and electronic meters under the "Capital" brand
name for various state power utilities (SPUs) and state
electricity boards. The ratings also reflect the status of the
company as an approved supplier of meters under Government of
India (GoI) schemes.
The ratings are constrained by CML's relatively small size
operations compared to industry peers as well as by the volatility
in its revenues and EBITDA margins during FY06-FY10 (end-March).
Its capacity utilization has also remained low at below 15% over
the last three years due to the tender-based nature of business
and the management's strategy to use the group company - Capital
Power Systems Limited (CPSL, 'B+(ind)'/Stable) as its flagship
company for its main meter manufacturing business. The ratings are
also constrained by CML's very high working capital intensity, low
interest coverage ratio and high adjusted net financial leverage.
Fitch notes that CML's business remains prone to customer
concentration risk and counterparty credit risk. However, some
comfort is provided from the strong relationships of its promoters
with the SPUs on the back of CML's status of an approved supplier
of GoI schemes. Furthermore, CML's reasonable order book position
of INR124.5m as on February 1, 2011 (1.36x of FY10 revenues) and
its FY11 revenues of INR112.43m (provisional and unaudited)
provide moderate revenue visibility in FY12.
Fitch also notes that CML and CPSL are group companies in the same
business and have cross-guaranteed each other's working capital
debt, which is also factored into the ratings.
Positive rating guidelines include a sustainable increase in CML's
size along with stabilization of its capacity utilization levels
and operating EBITDA margins. Negative rating guidelines include
the company's inability to reduce its working capital intensity or
decline in EBITDA margins and deterioration in its interest
coverage.
Incorporated in 1985, CML is a Noida-based company with production
capacity of 1.3 million meters and 0.5 million meter boxes per
annum. At FYE10, the company recorded revenues of INR109.2m (FY09:
INR91.2m) and an operating EBITDA margin of 10.9% (FY09: 10.2%).
CAPITAL POWER: Fitch Affirms National LT Rating at 'B+(ind)'
------------------------------------------------------------
Fitch Ratings has affirmed India-based Capital Power Systems
Limited's National Long-Term rating at 'B+(ind)'. The Outlook is
Stable. The agency has also affirmed the ratings on CPSL's bank
facilities:
-- INR85m fund-based working capital limits (enhanced from
INR70m): 'B+(ind)'/'F4(ind)'; and
-- INR240m non fund-based working capital limits (enhanced from
INR170m): 'B+(ind)'/'F4(ind)'.
The affirmations reflect CPSL's experience in manufacturing
electromechanical and electronic meters under the "Capital" brand
name for various state power utilities (SPUs) and state
electricity boards. The ratings also reflect the status of the
company as an approved supplier of meters under Government of
India (GoI) schemes.
The ratings further benefit from CPSL's reduced customer
concentration risk and the execution of its large pending order
book. As a result in FY10 (financial year ended March 31, 2010),
the company's capacity utilization improved significantly to 72.5%
(FY09: 48%) and its revenue grew by 111.1% yoy to INR725m (FY09:
INR343.4m). Also, its financial leverage (adjusted debt net of
cash/operating EBITDA) improved to 4.8x in FY10 (FY09: 11.3x).
However, Fitch notes that this improvement is not sustainable and
expects the financial leverage to deteriorate again with the
rising working capital requirements of the company over the short-
to-medium term. Further, CPSL's revenues declined in FY11 by 37.4%
yoy to reach INR483.2m (provisional and unaudited).
Fitch notes that there was a significant reduction in CPSL's
working capital cycle in FY10 as the company managed to convert
its large inventory pile up of FY09 to book revenues in FY10. The
FY09 high inventory was due to the company's increased dependence
on private subcontractor customers who refrained from lifting
inventory due to delays in execution of their turnkey and
installation contracts. However, Fitch expects CPSL's inventory
levels to remain high in the medium term as it depends on orders
from contractors / EPC companies.
The ratings are constrained by CPSL's small size operations and
the decline in its EBITDA margins to 4.8% in FY10 (FY09: 6.0%).
The ratings are further constrained by its smaller current order
book size of INR597.9m as on January 13, 2011, which demonstrates
low revenue visibility compared to relatively large order book of
INR1278.0m in March 2009.
Given the tender-driven nature of business, the company remains
prone to order cyclicality and potential delays in installation
and commissioning by its customers. Also there remains counter
party credit risk, as many of its customers (SPUs) have weak
credit profiles; this risk is however partly mitigated by the
coverage of CPSL's products under GoI-sponsored funding schemes.
Fitch also notes that CPSL and Capital Meters Limited (CML,
'B(ind)'/Stable) are group companies in the same business and have
cross-guaranteed each other's working capital debt, which is also
factored into the ratings.
Positive rating drivers include a sustained increase in CPSL's
size and operating margins leading to improved net financial
leverage, as well as a sustained decrease in its working capital
intensity. On the other hand, a further increase in the company's
working capital intensity or further fall in its operating EBITDA
or any unplanned capital expenditure that could potentially
increase financial leverage would have a negative impact on the
ratings.
Incorporated in 1988, CPSL has a production capacity of 1.5
million meters and meter boxes per annum. The company's
manufacturing facilities are located in Noida in the state of
Uttar Pradesh.
GEETHANJALI EDUCATION: CRISIL Assigns 'C' Rating to INR120MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'C' rating to the long-term bank
facilities of Geethanjali Education Society.
Facilities Ratings
---------- -------
INR120.00 Million Proposed LT C (Assigned)
Bank Loan Facility
INR15.00 Million Proposed Cash C (Assigned)
Credit
The rating reflects GES's weak financial risk profile, marked by a
high gearing, weak liquidity and weak debt protection metrics, and
geographically concentrated revenue profile. These rating
weaknesses are partially offset by GES's established brand name in
Bengaluru (Karnataka) and the established track record of the
society's promoters in imparting quality education.
Set up in 2002 by H S Shridhara Murthy and his wife, Nagarathna S
Murthy, GES runs three schools in Bengaluru. These include
Geetanjali Montessori School, Geetanjali Vidhyalaya, and
Geethanjali International School.
GES reported a provisional surplus (excess of income over
expenditure) of INR4 million on net revenues of INR58 million for
2010-11 (refers to financial year, April 1 to March 31), against a
surplus of INR2.2 million on net revenues of INR47 million for
2009-10.
HALDIA STEELS: CRISIL Cuts Rating on INR160MM Term Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Haldia
Steels Ltd to 'D/P5' from 'BB/Stable/P4+'. The downgrade reflects
instances of delay by HSL in servicing its term loan; the delays
have been caused by the company's weak liquidity.
Facilities Ratings
---------- -------
INR225 Million Cash Credit D (Downgraded from 'BB/Stable')
INR160 Million Term Loans D (Downgraded from 'BB/Stable')
INR196.8 Million Proposed LT D (Downgraded from 'BB/Stable')
Bank Loan Facility
INR200 Mil. Letter of Credit P5 (Downgraded from 'P4+')
HSL's rating also factors in the potential deterioration in the
group's financial risk profile driven by proposed debt funded
capital expenditure (capex) over the near term, limited risk
management policies and vulnerability to cyclicality in the steel
business. The company continues to benefit from the moderate
operational synergy that it shares with other group entities.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of HSL, Brand Alloys Ltd, Ispat Damodar
Ltd, and Sonic Thermal Pvt Ltd, together referred to as the Haldia
group. The combined approach is because the entities have strong
operational linkages and a common management.
About the Group
Established in 1996, HSL commenced operations in 2002 with an
ingot manufacturing facility. HSL currently has manufacturing
capacities of 120,000 tonnes per annum (tpa) for sponge iron,
120,000 tpa for ingots, and 36,000 tpa for ferro alloys, at its
plant in Durgapur (West Bengal [WB]).
BAL, set up in March 1994 as a steel and engineering unit in
Sreerampur (WB), has manufacturing capacity of 80,000 tpa for
ingots, 60,000 tpa for sponge iron, 325,000 tpa for coal washing,
15,000 tpa of steel fabrication and steel casting, and 30,000 tpa
for steel bars and rods.
The Haldia group also set up Brand Projects Ltd (later renamed
IDL) in April 1996. IDL began operations in December 2006 with
sponge iron and steel ingot manufacturing facilities. IDL
currently has manufacturing capacity of 60,000 tpa for sponge iron
and 95,000 tpa for ingots.
STPL, set up in December 2002, is setting up two submerged
electric arc furnaces with capacity of 7.5 megavolt amperes each,
for the production of ferro manganese and silico manganese. STL's
operations began in January 2011.
The Haldia group is expected to undertake capex programme of
around INR4 billion over the next few years to increase its
existing capacities and backward integration of existing
operations.
The Haldia group reported a profit after tax (PAT) of INR28.5
million on net sales of INR4.8 billion for 2009-10 (refers to
financial year, April 1 to March 31), as against a PAT of INR40.1
million on net sales of INR5.3 billion for 2008-09.
HARIG INDIA: CRISIL Cuts Rating on INR50MM Cash Credit to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Harig
India Pvt Ltd to 'D/P5' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit Limit D (Downgraded from
'B+/Stable')
INR23.7 Million Term Loan D (Downgraded from
'B+/Stable')
INR41.4 Million Proposed Long-Term D (Downgraded from
Bank Loan Facility 'B+/Stable')
INR37.5 Million Letter of Credit P5 (Downgraded from 'P4')
The rating downgrade reflects delay in servicing interest payments
due on May 31, 2011 by HIPL. The delay has been caused by HIPL's
weak liquidity resulting from closure of its operations because of
labour strike in April-May 2011. CRISIL believes that HIPL's
liquidity will continue to be weak, which could lead to the
company continuing to delay servicing its maturing debt
obligations over the near term.
HIPL also has small scale of operations, weak financial risk
profile because of large working capital requirements, and
customer concentration, and is susceptible to downtrends in the
agriculture industry.
About Harig India
Incorporated in 1961, HIPL manufactures hydraulic pumps and
hydraulic lifts, both critical components in tractor
manufacturing. In 2008-09 (refers to financial year, April 1 to
March 31), the company began manufacturing tractors. It has two
units in Ghaziabad (Uttar Pradesh), with a combined capacity of
16,500 pieces of hydraulic equipment and 2000 tractors per annum.
HIPL sold its 49% ownership in the joint venture (JV), Mita India
Pvt Ltd, in January 2010 to CBM Spa Costruzioni Meccaniche, Italy,
an associate of its JV partner, Mita Oleodinamica SPA. HIPL has
shut down operations because of ongoing labour problems.
For 2009-10, HIPL reported a profit after tax of INR109.8 million
on net sales of INR163.0 million, against a net loss of INR21.9
million on net sales of INR130.0 million for 2008-09. The losses
in 2008-09 were because of unstable operations of HIPL's then
recently established tractor division.
IMAGE LABELS: CRISIL Assigns 'D' Rating to INR62.5MM LongTerm Loan
------------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Image
Labels Pvt Ltd.
Facilities Ratings
---------- -------
INR62.50 Million Long-Term Loan D (Assigned)
INR40.00 Million Cash Credit D (Assigned)
The ratings reflect instances of delay by ILPL in servicing its
debt; the delays have been caused by the company's weak liquidity.
ILPL also has a below-average financial risk profile, marked by
small net worth, aggressive gearing, and weak debt protection
metrics, its large working capital requirements, and small scale
of operations in the label manufacturing industry. These
weaknesses are partially offset by ILPL's strong regional
position, diverse product portfolio, and established customer
relationships.
About Image Labels
Incorporated in 1995, ILPL manufactures a range of high quality
specialty labels, which find diverse applications across the
automobile, consumer durables, electrical, and electronics
industry. The manufacturing facility in Bengaluru (Karnataka) is
spread across 72000 square feet, and has the latest equipment in
durable printing and post-print finishing technologies. ILPL is
also a longstanding member of the Specialty Graphics International
Association, and is ISO 9001:2008 and TS 16949 certified.
ILPL is estimated to report net sales of INR275 million for
2010-11(refers to financial year, April 1 to March 31). ILPL
reported net losses of INR19 million on net sales of INR205
million for 2009-10, as against net losses of INR10 million on net
sales of INR191 million for 2008-09.
KIMMANE GUNDAPPA: CARE Rates INR17cr LT Bank Loan at 'CARE BB'
--------------------------------------------------------------
CARE assigns 'CARE BB' rating to the long-term bank facilities of
Kimmane Gundappa Gowda & Sons.
Amount
Facilities (INR Crore) Ratings
---------- ----------- ----------------
Long-term Bank Facilities 17.00 CARE BB Assigned
Rating Rationale
The rating is constrained by declining profitability margins of
KGS, presence in a highly competitive segment of the industry
which is characterized by a high degree of sensitivity towards
regulatory changes, the highly working capital intensive nature of
the trading business and KGS' constitution as a partnership firm.
The rating, however, draws strength from the substantial
experience of promoters of KGS, growth in sales in FY10 and low
gearing levels. Going ahead, the ability of KGS to increase it
size of operations, improve profitability margins and Government
policies with regard to the sector will remain the key rating
sensitivities.
About Kimmane Gundappa
Kimmane Gundappa Gowda & Sons is a partnership firm established in
1991. The partners of the firm are Mr. K.G. Jairam and his wife
Mrs. K.N. Pavana. The firm is engaged in the trading of areca
nuts. KGS procures areca nuts from the farmers, through
commission agents under the tender system, which is governed by
Agricultural Produce Market Committee. The major purchases are
made locally from Shimoga. KGS sells areca nuts mainly in
Bangalore and the National Capital Region (NCR)region.
KGS achieved a PAT of INR1.4 cr (INR1.2 cr in FY09) on net sales
of INR107.4 cr (INR72.8 cr in FY09) for FY10. As per the
unaudited results for the nine months ended Dec. 31, 2010
(9MFY11), KGS reported PBILDT of INR5.1 cr on net sales of
INR121.9 cr.
MADHAV STEEL: CRISIL Raises Rating on INR30MM Cash Credit to 'BB'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the cash credit facility of
Madhav Steel (Ship Breaking Division) (MS; part of the Madhav
group) to 'BB/Stable' from 'BB-/Stable', while reaffirming the
rating on the short-term facility at 'P4+'.
Facilities Ratings
---------- -------
INR30.0 Million Cash Credit BB/Stable (Upgraded from
'BB-/Stable')
INR270.0 Mil. Letter of Credit P4+ (Reaffirmed)
The upgrade reflects the Madhav group's steady performance during
2009-10 (refers to financial year, April 1 to March 31) and 2010-
11. It generated steady revenues and profits. The group has
benefited from the revival in the ship-breaking industry,
resulting in its estimated consolidated sales of over INR730
million and cash accruals of over INR19 million in 2010-11. CRISIL
believes that the Madhav group will maintain its topline and
profitability over the medium term, supported by a stable outlook
for the ship-breaking industry.
CRISIL's ratings reflect the Madhav group's small scale of
operations, susceptibility to cyclicality in the ship-breaking
industry, volatility in steel scrap prices, and adverse regulatory
changes. These rating weaknesses are partially offset by the
experience of the group's promoters in the ship-breaking industry.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of MS and Madhav Industrial Corporation
(MIC). This is because the two entities, together referred to as
the Madhav group, are in the same line of business, share
resources, and derive considerable business synergies from each
other.
Outlook: Stable
CRISIL believes that the Madhav group will continue to benefit
from the established track record of its promoters in the ship-
breaking industry, over the medium term. The outlook may be
revised to 'Positive' if the group's sales and profits increase
more than expected, or if there is an improvement in its risk
management policies. Conversely, the outlook may be revised to
'Negative' if the group's operating margin declines significantly,
most likely because of a decline in scrap prices, or if the
company is unable to recover the cost of ships purchased.
About the Group
Set up in 1982 by the Patel family, the Madhav group undertakes
ship-breaking activities at Alang (Gujarat), which is the leading
centre of ship-breaking and recycling in Asia. The group has
capacity to break various types of ships such as general cargo
ships, oil tankers, reefers, and bulk carriers with dead weights
of up to 50,000 tonnes at its two adjoining 55-squre-metre plots
in Alang. The group imports ships, breaks them into iron and steel
plates, which it sells to re-rolling mills in and around Bhavnagar
(Gujarat). The group currently has three vessels under demolition,
with a combined dead weight of about 23,000 tonnes.
For 2009-10, the Madhav group reported, on provisional basis, a
net profit of INR16.5 million on net revenues of INR757.4 million;
it reported a net profit of INR8.2 million on net revenues of
INR352.0 million for the preceding year.
MONO STEEL: CARE Reaffirms 'CARE BB+' Rating on INR35cr Bank Loans
------------------------------------------------------------------
CARE reaffirms 'CARE BB+' and 'PR4' ratings assigned to bank
facilities of Mono Steel India Ltd.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term/Short-term Bank 35.00 'CARE BB+'/'PR4'
Facilities Reaffirmed
Rating Rationale
The ratings continue to remain constrained due to poor governance
practices and accounting policies followed by Mono Steel India
Ltd. not being in conformance with established norms and
fluctuating profitability margin. The ratings continue to factor
in the experience of the promoters of MSIL in the steel industry,
moderately integrated manufacturing facility for sponge iron &
billets including a captive power plant and comfortable financial
position as indicated by low gearing level. Improvement in
overall governance practices and funding profile of any future
capex would remain the key rating sensitivities.
About Mono Steel
MSIL was incorporated in 1992 when the promoters set up a steel
plant at Bhavnagar in Gujarat. The promoters belong to the
Bhavnagar-based Bhupatrai Chimanlal group which started its
business activity in 1970 and presently has interests in
businesses like ship-breaking, steel & scrap manufacturing and
trading.
MSIL expanded its operations in 2005 by increasing its capacity of
sponge iron plant to 73,000 MTPA (Metric Tonnes Per Annum) and
setting up billet plant with capacity of 37,000 MTPA in Kutch
district of Gujarat along with a 12 MW (mega-watt) captive power
plant which became operational in 2008. Further, in FY11 the
company has completed the expansion project and billet plant
capacity has increased to 55,000 (MTPA).
NARENDRA TEA: CRISIL Puts 'P4+' Rating on INR50MM Packing Credit
----------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to Narendra Tea Company
Private Limited's bank facilities.
Facilities Ratings
---------- -------
INR50.0 Million Packing Credit P4+ (Assigned)
INR60.0 Million Bill Discounting P4+ (Assigned)
The rating reflects NTCPL's small scale of operations, low
realisations from the crush-tear-curl (CTC) tea segment, large
working capital requirements, and volatile profitability. These
rating weaknesses are partially offset by NTCPL's above average
financial risk profile, marked by low gearing and moderate debt
protection metrics.
About Narendra Tea
NTCPL was set up in 1987, but became operational in 1996 after Mr.
Arun Berlia acquired the operations. NTCPL processes tea and has
capacity of 25 tonnes per day (tpd). The company started
exporting exclusively in 1999. There are other group companies
which are involved in both tea and non-tea businesses. The company
exports CTC and orthodox variety of black tea to Russia,
Kazakhstan and Pakistan, and other countries.
NTCPL is estimated to report a profit after tax (PAT) of
INR4.6 million on net sales of INR299 million for 2009-10 (refers
to financial year, April 1 to March 31), against a PAT of INR4.4
million on net sales of INR249 million for 2008-09.
NAVDURGA RICE: CARE Assigns 'CARE BB-' Rating to INR9.8cr Loan
--------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of
Navdurga Rice Mill.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.58 'CARE BB-'
Rating Rationale
The rating is mainly constrained by the small scale of operations
of Navdurga Rice Mill with low net worth base, low profitability
and its constitution as a partnership firm leading to possibility
of withdrawal of capital and restricted financial flexibility.
Further, the susceptibility to volatility in raw material prices
and the inherent risks associated with the rice industry like high
degree of fragmentation, seasonality and high government
interference also constrain the rating.
The rating, however, favorably takes into account the vast
experience of the promoters of NRM in the rice industry and
established operations with stable growth in income in the past
few years. Increase in scale of operations with improvement in
the financial risk profile is the major key rating sensitivity.
About Navdurga Rice
Ahmedabad-based NRM, a partnership firm, was formed in 1984 by
three brothers Bhanubhai Patel, Dineshchandra Patel and
Bipinchandra Patel. All of them have vast experience of more
than two decades in the rice industry. During FY10, partnership
deed was amended due to family related matters and new partners
(family members of Mr. Bhanubhai Patel) joined the firm and all
the other old partners except Mr. Bhanubhai Patel retired.
During FY10, on total income of INR16.70 crore (FY09: INR12.20
crore), NRM earned a PBILDT of INR0.17 crore (FY09: INR0.19 crore)
and PAT of INR0.02 crore (FY09: INR0.03 crore). As per unaudited
results for FY11, NRM reported net sales of INR37.31 crore.
PRAKASH SPONGE: CRISIL Assigns 'BB-' Rating to INR200MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Prakash Sponge Iron and Power Pvt Ltd.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit BB-/Stable (Assigned)
INR200.0 Million Long-Term Loan BB-/Stable (Assigned)
INR30.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect PSIPPL's susceptibility to funding, execution,
and offtake risks related to the ongoing expansion of sponge iron
unit and the power plant project and the company's weak financial
risk profile, marked by a small net worth, high gearing, and
subdued debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of PSIPPL's promoters
in the steel industry.
Outlook: Stable
CRISIL expects PSIPPL's business risk profile to benefit from the
extensive experience of its promoters in the steel industry and
the captive supply of iron ore through mines owned by its group
companies. The outlook may be revised to 'Positive' if the company
demonstrates higher-than-expected offtake resulting in improved
cash accruals and better-than-expected debt servicing metrics.
Conversely, the outlook may be revised to 'Negative' if there are
cost or time overruns in PSIPPL's planned forward integration, or
if the company's working capital requirements are larger-than-
expected, leading to further weakening in its financial risk
profile.
About Prakash Sponge
PSIPPL was incorporated in February 2008 by Mr. Srinivasulu Metri
and his family members. The promoters planned to operate a 600
tonnes per day (tpd) sponge iron manufacturing unit and a 45-
megawatt (MW) power plant. As a part of the project plan, in the
first phase, the company began commercial operations in June 2010
through a sponge iron manufacturing unit at its plant in
Chitradurga (Karnataka) with an initial capacity of 100 tonnes per
day (tpd); in the second phase, the capacity is estimated to be
doubled to 200 tpd by June 2011. The third phase of project
involves installing a coal based power plant with an initial
capacity of 12-megawatt.
PSIPPL reported a provisional profit after tax (PAT) of INR17.2
million on net sales of INR322.8 million for 2010-11 (refers to
financial year, April 1 to March 31).
RITU SHIPPING: CARE Assigns 'CARE BB-' Rating to INR15cr ST Loan
----------------------------------------------------------------
CARE assigns 'CARE BB-' and 'PR4' to the bank facilities of
Ritu Shipping Pvt. Ltd.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term/Short-term Bank 15.00 'CARE BB-/PR4' Assigned
Facilities
Rating Rationale
The ratings of Ritu Shipping Pvt. Ltd. are constrained due to its
presence in low value addition business, small size of operations,
thin profitability margin and weak liquidity position. The ratings
are further constrained due to regional concentration of
customers, intense competition from the unorganized players in the
industry and raw material price fluctuation risk. The rating
constraints are partially offset by the experience of the
promoters in the business with support from group companies
and established marketing and distribution network with long-
standing relationship with suppliers and customers. Increasing
market presence and diversification in product and customer
profile as well as improvement in overall profitability margins
and strengthening of the financial position are the key rating
sensitivities.
About Ritu Shipping
RSPL, promoted by Mr. Suresh Agarwal and his wife Mrs. Usha
Agarwal, was established in 1998, for carrying out the business of
trading in various metal scraps and related activities. It is a
part of the Agarwal Group based in Ahmedabad, which has presence
in the metal trading business as well as in manufacturing of iron,
steel, alloys, etc. Other group entities are present in different
parts of the value chain in the metal industry ranging from scrap
trading to rolled components and products in ferrous and ferro-
alloy metals. The company procures ferrous and non-ferrous scrap
from various places and sells it to various firms in and around
the industrial area of Ahmedabad.
During FY10, RSPL reported a total operating income of INR58.00
crore with a PAT of INR0.18 crore as against a total operating
income of INR48.81 crore with a PAT of INR0.10 crore during
FY09. For nine months ended December 2010 during FY11, RSPL
reported a total income of INR46.41 crore with PAT of INR0.21
crore.
RUBINO INDUSTRIES: CARE Assigns 'CARE BB' Rating to INR7.5cr Loan
-----------------------------------------------------------------
CARE assigns CARE BB/PR4 ratings to bank facilities of Rubino
Industries Pvt. Ltd.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Short-term Bank Facilities 7.50 'CARE BB' Assigned
Short-term/long-term Bank 4.50 'PR4' Assigned
Facilities
Rating Rationale
The ratings are constrained by RIPL's small size of operations,
lack of geographical diversification in revenue, volatile raw
material prices, highly competitive nature of the plywood industry
with large number of unorganized players and low entry barriers,
weak financial profile characterized by highly leveraged capital
structure, volatile and low profitability margins, working capital
intensive nature of operations and risk of country-specific trade
regulations. The ratings factor in the RIPL's operational track
record of over 10 years, vast experience of the promoters in
veneer and plywood industry, and established relationship with the
timber suppliers. Going forward, the ability of the company to
sustain and further improve its profitability and cash
accruals, rationalization of debt levels and prudent working
capital management would be key rating sensitivities.
About Rubino Industries
Rubino Industries Pvt. Ltd is a Chennai-based company engaged in
the business of manufacturing of face veener, core veneer and
plywood. The company was established in the year 1997
by Mr. Rajkumar Tibrewala as a partnership firm, which was later
converted into a Pvt. Ltd company in year 2009 as Rubino
Industries Pvt. Ltd.
During FY10, the company reported a PAT of INR0.53 cr on a total
income of INR21.66 cr as against net loss of INR0.13 cr on a total
income of INR22.49 cr in FY09. For the nine months period ended
Dec. 31, 2010, RIPL registered a PBT of INR0.58 cr on a total
income of INR19.09 cr.
S. V. ALUEXT: CRISIL Assigns 'D' Rating to INR60.5MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of S. V.
Aluext Profile Pvt Ltd.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit D (Assigned)
INR60.5 Million Term Loan D (Assigned)
INR19.5 Million Proposed LT D (Assigned)
Bank Loan Facility
The ratings reflect instances of delay by SVAPL in servicing its
debt; the delays have been caused by the company's weak liquidity
resulting from delays in commencement of commercial operations at
its plant.
SVAPL's scale of operations is small, as it is in the start-up
phase. It has large working capital requirements and a weak
financial risk profile, marked by small net worth. However, the
company benefits from its promoters' experience in the automotive
component industry.
SVAPL, incorporated in 2010, has been promoted by Mr. Shivaji T
Akhade. It manufactures aluminium extrusions. The company's
manufacturing plant in Chakan (Pune; Maharashtra) has an installed
capacity of 4800 tonnes per annum (tpa); operations at the plant
commenced in November 2010. It currently utilizes around 25% of
its capacity. The company is in the process of installing
additional machinery, which will increase its capacity by 1800
tpa. The enhanced capacity is expected to be operational by July
2011.
SHREE LAXMI: CARE Rates INR15cr Bank Loans at 'CARE BB-'
--------------------------------------------------------
CARE assigns 'CARE BB-' and 'PR4' to the bank facilities of
Shree Laxmi Ship Breakers.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term/Short-term Bank 15.00 'CARE BB- / PR4'
Facilities Assigned
Rating Rationale
The ratings of Shree Laxmi Ship Breakers are constrained due to
its presence in low value addition business, small size of
operations, thin profitability margin and weak liquidity position.
The ratings are further constrained due to regional concentration
of customers, intense competition from the unorganized players in
the industry and raw material price fluctuation risk. The rating
constraints are partially offset by the experience of the
promoters in the business with support from group companies and
established marketing and distribution network with long-standing
relationship with suppliers and customers. Increasing market
presence and diversification in product and customer
profile as well as improvement in overall profitability margins
and strengthening of the financial position are the key rating
sensitivities.
About Shree Laxmi Ship
SLSB, a partnership firm of Anil Agarwal and Vivek Agarwal, was
established in 2001 for carrying out the business of ship
breaking. The ship breaking business of SLSB was discontinued and
currently, only trading of ferrous and non-ferrous metals is
carried out by the firm. It is a part of the Agarwal Group based
in Ahmedabad, which has presence in the metal trading business as
well as in manufacturing of iron, steel, alloys, etc. Other group
entities are present in different parts of the value chain in the
metal industry ranging from scrap trading to rolled components and
products in ferrous and ferro-alloy metals. The company procures
ferrous and non-ferrous scrap from various places and
sells it to various firms in and around the industrial area of
Ahmedabad.
SHUBHLAXMI CASTING: CARE Puts 'CARE BB-' Rating on INR14.13cr Loan
------------------------------------------------------------------
CARE assigns 'CARE BB-' and 'PR4' to the bank facilities of
Shubhlaxmi Casting Pvt. Ltd.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 14.13 'CARE BB-' Assigned
Short-term Bank Facilities 3.00 'PR4' Assigned
Rating Rationale
The ratings of Shubhlaxmi Casting Pvt. Ltd. are constrained due to
its presence in low value addition business, small size of
operations, thin profitability margin and weak liquidity position.
The ratings are further constrained due to regional concentration
of customers, intense competition from the unorganized players in
the industry and raw material price fluctuation risk. The rating
constraints are partially offset by the experience of the
promoters in the business with support from group companies and
established marketing and distribution network with long-standing
relationship with suppliers and customers. Increasing market
presence and diversification in product and customer profile as
well as improvement in overall profitability margins and
strengthening of the financial position are the key rating
sensitivities.
About Shubhlaxmi Casting
SLCPL, promoted by Suresh Agarwal and his son Vivek Agarwal, was
established in August 2004, for carrying out ship breaking
activities. However, the ship breaking activities were
discontinued later and the company entered into manufacturing of
MS (mild steel) ingots from scrap. It is a part of the Agarwal
Group based in Ahmedabad, which has presence in the metal trading
business as well as in manufacturing of iron, steel, alloys, etc.
Other group entities are present in different parts of the
value chain in the metal industry ranging from scrap trading to
rolled components and products in ferrous and ferro-alloy metals.
Its manufacturing facility is situated at Moraiya Industrial
Estate, near Ahmedabad in Gujarat with an installed capacity of
27,000 MTPA.
UMIYA INDUSTRIES: CARE Rates INR7cr LT Bank Loan at 'CARE B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of
Umiya Industries Pvt Ltd.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.00 'CARE B+' Assigned
Rating Rationale
The ratings are constrained by Umiya Industries Private Limited's
small scale of operations restricting economies of scale, limited
value addition in cotton ginning business and its weak financial
risk profile marked by thin profitability, stressed liquidity, low
capital base and highly leveraged capital structure.
Susceptibility of its inherently low margins to volatility
associated with cotton prices, presence in a highly fragmented and
competitive agro-commodity business entailing limited pricing
flexibility and regulatory uncertainties on export of cotton and
fixation of Minimum Support Price (MSP) of cotton further
constrains the rating. These constraints far outweigh the
benefits derived from the promoters' experience and locational
advantage by way of proximity to the cotton seed growing regions
in Gujarat. Rationalization of debt levels coupled with increase
in capital base and its ability to manage volatility
associated with cotton prices and thereby improving its
profitability and cash accruals would remain the key rating
sensitivity.
About Umiya Industries
Gujarat-based UIPL, promoted by Rameshbhai K. Patel, was
incorporated on March 24, 2004. UIPL, a small-sized company with
short track record of business operations, is mainly engaged in
cotton ginning and pressing to produce cotton bales and cotton
seeds. While cotton bales are used in manufacturing of cotton
yarn, cotton seeds are further processed for extraction of edible
oil and oil cake. UIPL's manufacturing facilities are located at
Himmatnagar with an installed capacity of 5,760 MTPA of cotton
bales as on March 31, 2010.
As against a net profit of INR0.01 crore on a total income of
INR19.02 crore in FY09, UIPL earned a net profit of INR0.32 crore
on a total income of INR41.77 crore in FY10.
VEDANTA RESOURCES: Fitch Rates 'BB' to US$900MM Sr. Notes Due 2021
------------------------------------------------------------------
Fitch Ratings has assigned UK-based Vedanta Resources PLC's senior
unsecured notes issue a final rating of 'BB'. The notes issue
comprises these tranches:
-- USD750m, 6.75% senior notes due 2016
-- USD900m, 8.25% senior notes due 2021
The assignment of the final rating is based on the terms and
conditions in the offering memorandum conforming to information
already received.
====================
N E W Z E A L A N D
====================
SOUTH CANTERBURY: Fonterra Director Sues Firm's Receivers
---------------------------------------------------------
interest.co.nz reports that Dairy Holdings shareholder and
director Colin Armer and his wife Dale have filed a High Court
claim against their fellow shareholders, including South
Canterbury Finance (SCF) receivers and government representatives
Kerryn Downey and William Black of McGrathNicol.
The Armers allege that the receivers' effort to sell the company
breach a shareholders' agreement and that attempts to force them
out have stooped to blackmail, interest.co.nz says.
According to the report, the Armers' statement of claim, filed in
the High Court at Auckland on May 25 -- the day before a key Dairy
Holdings shareholder vote -- names all the company's other
shareholders plus Dairy Holdings itself as defendants.
They include Downey and Black who control a 33.6% stake, Dairy
Holdings director Alan Pye who holds 20.83%, Christchurch
businessman Humphrey Rolleston's company Jagewi Ltd which holds a
3.91% stake, and US investors NZ Cow Company, Pals Plus and Little
Cow Company who each hold 8.33% stakes, interest.co.nz discloses.
interest.co.nz says all the shareholders, excluding the Armers,
have combined forces to sell their 83.3% of Dairy Holdings in the
wake of SCF's receivership last year. Overseas parties including
Harvard University's endowment fund and British private equity
group Terra Firma are understood to be interested in Dairy
Holdings, which is Fonterra's biggest supplier.
However, interest.co.nz relates, a series of startling allegations
from the Armers, who allege breach of contract and oppressive
conduct under the Companies Act, include:
-- The other shareholders are trying to nullify a
shareholders agreement dating from 2001 and change
the company's constitution to enable them to sell
Dairy Holdings' assets rather than its shares in a
move the Armers claim is effectively a liquidation;
-- That a Downey and Black representative threatened
to refer a NZ$14.5 million loan taken out from SCF
by Colin Armer - who is also a Fonterra director -
and on lent to Dairy Holdings to the Serious Fraud
Office (SFO), but wouldn't if the Armers were prepared
to waive their pre-emptive rights to shares offered
for sale by other shareholders, sign the proposed new
shareholders' agreement and agree to a new constitution;
and
-- that the Armers are interested in taking up their pre-
emptive right to increase their combined 16.66%
stake in Dairy Holdings.
Downey, McGrathNicol's managing partner, has previously told
interest.co.nz that Dairy Holdings' shareholders do have, as
enshrined in the company's constitution, standard company pre-
emptive rights to buy when others decide to sell.
A spokeswoman for Downey said it wasn't appropriate for the
receivers to comment on the issue.
"The Dairy Holdings Limited sale process is at an advanced stage
and is continuing, with discussions ongoing with a number of
interested parties,' the spokeswoman told interest.co.nz.
"It is a shareholder-led process in which the receivers of SCF
have agreed to participate. The sale process is led by First NZ
Capital and Murray & Company. The shareholders group comprises
83.3% of the shares in Dairy Holdings. The SCF receiver has
control of 33.6% of shares in Dairy Holdings."
A spokesman for Finance Minister Bill English said nor would
Mr. English comment as the dispute was before the courts,
interest.co.nz adds.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
*********
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
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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
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Don't be fooled. Assets, for example, reported at historical
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*********
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-
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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, Ivy B. Magdadaro,
Frauline S. Abangan, and Peter A. Chapman, Editors.
Copyright 2011. All rights reserved. ISSN: 1520-9482.
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