TCRAP_Public/110808.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

             Monday, August 8, 2011, Vol. 14, No. 155

                            Headlines



A U S T R A L I A

BROWN SUGAR: In Administration, Deloitte Seeks Buyers
ELDERSLIE FINANCE: Directors to Face Another Court Appearance
SMITH & HALL: Faces Insolvent Trading Claims from Liquidator
* AUSTRALIA: More Than 85 Building Firms Go Bust in July


H O N G  K O N G

BEST GROUP: Members' Final Meeting Set for September 5
EASY WELL: Commences Wind-Up Proceedings
FORTUNE ALLIED: Commences Wind-Up Proceedings
HEDRAGON LIMITED: Ho and Kong Step Down as Liquidators
HK SPORT: Creditors' Proofs of Debt Due September 8

HONG LOK: Placed Under Voluntary Wind-Up Proceedings
P.K. NG: Members' Final Meeting Set for September 5
SATRAP LIMITED: Commences Wind-Up Proceedings
VALUE ALLIANCE: Placed Under Voluntary Wind-Up Proceedings
WEALTH WORLD: Ho and Kong Step Down as Liquidators


I N D I A

AIR INDIA: Incurs INR600cr Loss Per Month, Aviation Minister Says
AIR INDIA: Gets INR1,200cr Equity Infusion from Government
AIR INDIA: Employees to Get June & July Salaries Today
DEVANSH AUTO: CRISIL Places 'CRISIL B' Rating on INR43MM Term Loan
DEVENTHIRA SPINNERS: CRISIL Ups Rating on INR17.2MM Loan to 'B+'

GTL LIMITED: Syndicate Bank to Delay Seizure of Stake
NARENDRA COTFIBRE: CRISIL Places CRISIL BB Rating on INR50MM Loan
NARENDRA INT'L: CRISIL Assigns CRISIL BB Rating to INR100MM Loan
PRAGATI AUTOMATION: CRISIL Puts 'CRISIL B+' Rating on INR65MM Loan
PRASAD SUGAR: CRISIL Assigns 'CRISIL B' Rating to INR171.2MM Loan

PULSE POWER: CRISIL Puts CRISIL BB- Rating on INR50MM Cash Credit
RAHUL DEVELOPERS: CRISIL Assigns CRISIL BB Rating to INR110MM Loan
SEANTO MINERALS: CRISIL Assigns CRISIL B Rating to INR70MM LT Loan
SHREE MUKUND: CRISIL Rates INR100MM Bank Facility at 'CRISIL BB-'
SHYAM LEELA: CRISIL Rates INR75MM Cash Credit at 'CRISIL BB+'

SIMPLEX CHEMOPACK: CRISIL Rates INR76.2MM Cash Credit at CRISIL BB
SRI DURGA: CRISIL Raises Rating on INR110MM Loan at 'CRISIL BB-'
SRI MAHANANDEESWARA: CRISIL Puts on INR49MM LT Loan at CRISIL BB+
WOCKHARDT LTD: Seeks Court OK to Sell Nutrition Business
VICTORA AUTO: CRISIL Assigns 'CRISIL B' Rating to INR40MM Loan

VISWAS BUSINESS: CRISIL Cuts Rating on INR200MM Loan to 'CRISIL D'


J A P A N

ORSO FUNDING: S&P Affirms Ratings on 2 Classes of Certs. at 'CCC-'
TOKYO ELECTRIC: To Compensate Tourism Industry Over Nuclear Crisis


N E W  Z E A L A N D

CAPITAL + MERCHANT: Case Against Directors Adjourned to Aug. 28
EXIDE TECHNOLOGIES: Temporarily Closes NZ Battery Recycling Plant



                            - - - - -


=================
A U S T R A L I A
=================


BROWN SUGAR: In Administration, Deloitte Seeks Buyers
-----------------------------------------------------
ABC News reports that women's fashion retailer Brown Sugar
Australia Pty Ltd has voluntarily appointed administrators after
falling victim to the torrid retail market.

Sal Algeri and Tim Norman from Deloitte Corporate Reorganisation
Group have been appointed as joint voluntary administrators to the
clothing group.

According to ABC News, Brown Sugar related in a statement that
adverse trading conditions and falling consumer sentiment have
taken its toll on the company's profit.  Successive management
changes over the past several years have also had a negative
effect on the company, ABC notes.

Mr. Algeri, according to ABC News, said that as long as the
company continues to trade, all ongoing employees' salaries and
benefits will be honored.

"Our first priority is to try and achieve the best possible
outcome for all stakeholders -- employees, creditors and
customers," ABC News quotes Mr. Algeri as saying.

"All Brown Sugar stores will commence a stock clearance sale
shortly, while the voluntary administrators assess the company's
financial position and seek expressions of interest to purchase
the retailer."

All stores will remain open until the administrators assess the
viability of continued trading, ABC News reports.

A creditors meeting is scheduled for August 12.

Brown Sugar Australia Pty Ltd is a women's fashion house with 40
stores in Victoria, New South Wales, South Australia, Western
Australia and Tasmania.


ELDERSLIE FINANCE: Directors to Face Another Court Appearance
-------------------------------------------------------------
The Sydney Morning Herald reports that former Liberal leader
John Hewson may have to prepare for another court appearance to
explain his role at Elderslie Finance Corporation, after creditors
passed a resolution on Aug. 3 to engage a litigation funder
willing to subsidize various claims against the failed company's
former directors.

Three years since Elderslie collapsed owing AUD140 million to
4,000 noteholders, creditors have agreed to separate claims of up
to AUD32 million to be made against Mr. Hewson and other directors
of the company, SMH notes.

SMH relates that one claim, of between AUD3 million and
AUD30 million, relates to the allegation that Mr. Hewson and his
fellow directors were aware the company had been trading while
insolvent.  Mr. Hewson resigned as Elderslie's chairman shortly
before the firm's collapse.

Another claim, of about AUD2 million, relates to allegations that
Elderslie's former directors, including its former chief executive
Peter George, obtained unreasonable benefits from the company,
according to SMH.

The litigation funder, says SMH, will be chosen by a committee of
inspection within the next two weeks.  It has been two years since
Mr. Hewson appeared at a public examination into the collapse of
Elderslie in the NSW Supreme Court.

According to the report, Mr. Hewson also has problems on another
front with Elderslie's liquidator, Nicholas Crouch, of Crouch
Amirbeaggi.

Mr. Crouch reported Mr. Hewson to the Australian Securities and
Investments Commission on Aug. 3 for an alleged breach of section
530A of the Corporations Act for failing to assist the liquidator
in his investigations, SMH cites.

                         Insolvent Trading

The Sydney Morning Herald, citing Mr. Crouch's circular to
Elderslie creditors released last month, reports that up to
AUD140 million of the group's assets were overstated in its
March 2008 accounts.  This was before Mr. Hewson resigned as
Elderslie chairman in June of the same year and before receivers
were appointed that September, the report notes.

"From March 17, 2008, the company 'rolled over' or authorized new
debentures and unsecured notes in the amount of AUD14,016,610.  If
the 'roll-over' constitutes a new debt . . . the directors may be
liable for an insolvent trading claim of AUD14 million," the
circular noted, according to SMH.

SMH relates that Mr. Crouch said in the circular that a group
solvency report indicated "the process of 'dipping into trust
money' occurred as [far] back as July 2007."

"The balance sheet of Elderslie indicates that it has a net asset
deficiency in excess of AUD100 million during the relevant period,
commencing March 17, 2008," the circular noted.

This was all after Elderslie failed in its attempts to raise
AUD60 million in secured debentures in February 2008, SMH relates.
In the prospectus for the failed raising, Mr. Hewson appeared
oblivious of any storm clouds gathering for the doomed company,
the report notes.

                      About Elderslie Finance

Elderslie Finance Corporation is an independent, Australian-owned
structured finance and investment management group.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 3, 2008, Elderslie Finance Corporation has been placed into
receivership following a Federal Court order allowing its trustee,
Perpetual Trustees WA Ltd, to appoint a receiver, after several
rescue plans for the ailing company fell through.  Perpetual
Trustees appointed Gregory Hall and Philip Carter of
PricewaterhouseCoopers as the receivers for Elderslie Finance.

On Sept. 22, 2008, the Supreme Court of New South Wales entered an
order to have Elderslie Finance Corporation Limited's operations
wound up.


SMITH & HALL: Faces Insolvent Trading Claims from Liquidator
------------------------------------------------------------
Leonie Lamont at The Sydney Morning Herald reports that Smith &
Hall liquidator Sule Arnautovic, of Jirsch Sutherland, said that
the business was trading while insolvent for at least a year
before his appointment as administrator in October 2010.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 14, 2010, SmartCompany related that Smith & Hall was placed
into administration with debts of more than AUD1 million.  Smith &
Hall, run by director Cameron Hall, was placed in the hands of
Sydney insolvency firm Jirsch Sutherland on Oct. 7, 2010.

SMH notes that Mr. Arnautovic told BusinessDay he would shortly
issue a statement of claim against Cameron Hall for insolvent
trading, relating to AUD200,000 in unpaid taxes by his company,
International Art Holdings, trading as Smith & Hall.

Earlier this year, SMH recalls, Mr. Hall told investors the
financial downturn had caused the business to fail.  While the
ultimate figure owed to creditors has not been finalized, an
initial report indicated AUD3.6 million was owed.

Mr. Arnautovic, as cited by SMH, said he had sent his reports to
the Director of Public Prosecutions and the Australian Securities
and Investments Commission.

Up to 1,000 artworks claimed to be worth up to AUD4 million were
caught up in the collapse, as the liquidator and increasingly
frustrated owners set about locating and recovering them, SMH
discloses.

Unclaimed artworks, works where ownership was in dispute and works
where the owners had refused to pay a storage levy, were auctioned
by GraysOnline, realizing AUD80,000.  After costs were deducted,
there were no funds for the owners, who now join the queue of
creditors, SMH notes.

Smith & Hall was a Sydney art gallery that helped art investors
rent out their artworks to earn extra income.  The company offered
art investors the chance to earn up to 8% per annum by leasing out
their artworks to renters, who would pay "as little as the cost of
a cup of coffee a day."


* AUSTRALIA: More Than 85 Building Firms Go Bust in July
--------------------------------------------------------
Madeleine Heffernan at SmartCompany reports that the building and
construction industry seems to be bearing the brunt of the brittle
Australian economy, with more than 85 companies either entering
administration, going into liquidation, or being hit by a winding
up notice over the past month in Victoria and New South Wales
alone.

Over the past fortnight, SmartCompany reveals, Safi Brothers
Constructions, Port Melbourne Building Supplies, Coastline
Bricklaying, and Blue Hills Bricklaying have entered
administration.  Others to have collapsed of late include
plumbers, plasterers and landscape gardeners, according to
SmartCompany.

SmartCompany relates that registered company liquidator, Cliff
Sanderson of Dissolve Pty Ltd, said that while the building sector
always features pretty heavily in the collapse lists, the numbers
have increased over the past three to five months.

Mr. Sanderson, as cited by SmartCompany, said the reasons are the
relatively recent downturn and increased aggression from the
Australian Taxation Office.

"An awful lot of tradies couldn't pay their bills during the GFC,
and now the ATO is coming to get them," SmartCompany quotes
Mr. Sanderson as saying.  "Whereas other industries might continue
to limp on, small tradies might not have the ability."


================
H O N G  K O N G
================


BEST GROUP: Members' Final Meeting Set for September 5
------------------------------------------------------
Members of Best Group Management Limited, which is in members'
voluntary liquidation, will hold their final meeting on Sept. 5,
2011, at 10:30 a.m., at Room 1901-2, Part-In Commercial Centre,
56 Dundas Street, in Kowloon, Hong Kong.

At the meeting, Lee Kwok On Alexander, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


EASY WELL: Commences Wind-Up Proceedings
----------------------------------------
Members of Easy Well International Trading Limited, on Aug. 5,
2011, passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Poon Wai Hung Richard
         Room 1410, Harbour Centre
         No. 25 Harbour Road
         Wanchai, Hong Kong


FORTUNE ALLIED: Commences Wind-Up Proceedings
---------------------------------------------
Members of Fortune Allied International Group (Hong Kong) Limited,
on July 29, 2011, passed a resolution to voluntarily wind up the
company's operations.

The company's liquidators are:

         Lui Wan Ho
         To Chi Man
         17th Floor, Kam Sang Building
         255 Des Voeux Road
         Central, Hong Kong


HEDRAGON LIMITED: Ho and Kong Step Down as Liquidators
------------------------------------------------------
Ho Man Kit and Kong Sau Wai stepped down as liquidators of
Hedragon Limited on July 20, 2011.


HK SPORT: Creditors' Proofs of Debt Due September 8
---------------------------------------------------
Creditors of Hong Kong Sport Climbing Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Sept. 8, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 5, 2011.

The company's liquidator is:

         Tsang Wai Kit
         6/F, May May Building
         Nos. 683-685 Nathan Road
         Mongkok, Hong Kong


HONG LOK: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------
At an extraordinary general meeting held on July 21, 2011,
creditors of Hong Lok Company Limited resolved to voluntarily wind
up the company's operations.

The company's liquidator is:

        Wai Kee Kau
        Flat B, 3rd Floor
        11 Tung Shan Terrace
        Hong Kong


P.K. NG: Members' Final Meeting Set for September 5
---------------------------------------------------
Members of P.K. Ng Design Limited will hold their final general
meeting on Sept. 5, 2011, at the 25/F, Eastern Commercial Centre,
83 Nam On Street, Shaukeiwan, in Hong Kong.

At the meeting, Seto Sau Kuen Christine, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


SATRAP LIMITED: Commences Wind-Up Proceedings
---------------------------------------------
Members of Satrap Limited, on Aug. 1, 2011, passed a resolution to
voluntarily wind up the company's operations.

The company's liquidators are:

         Quentin Benda Williams
         Chow Siu Ping
         23D, Park Garden
         6 Tai Hang Drive
         Hong Kong


VALUE ALLIANCE: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on Aug. 3, 2011,
creditors of Value Alliance Company Limited resolved to
voluntarily wind up the company's operations.

The company's liquidator is:

         Lian Mingshun
         3/F, Kam Sang Building
         257 Des Voeux Road
         Central, Hong Kong


WEALTH WORLD: Ho and Kong Step Down as Liquidators
--------------------------------------------------
Ho Man Kit and Kong Sau Wai stepped down as liquidators of Wealth
World International Trading Co. Limited on July 20, 2011.


=========
I N D I A
=========


AIR INDIA: Incurs INR600cr Loss Per Month, Aviation Minister Says
-----------------------------------------------------------------
The Hindu reports that Civil Aviation Minister Vayalar Ravi on
Thursday said the continuing rise in aviation oil prices, rise in
wages and competition from other airlines led to Air India
incurring a loss of INR600 crore a month.

"The abnormal increase in aviation fuel prices, competition from
budget and other airlines and increase in wages and overheads
contributed to the loss," The Hindu quotes Mr. Ravi as saying.

In addition, The Hindu notes, the government was paying interest
on the working capital and procurement of aircraft.  The Hindu
relates that the Minister said the national carrier's monthly
income was around INR1,100 crore and expenses were at INR1,700
crore.

According to The Hindu, the Group of Ministers, which has met
several times in the recent past, would soon submit its
recommendation on the airline's turnaround and financial
restructuring and accordingly, the government would take steps.

The Hindu adds that the Minister said Air India had taken a series
of measures for reducing cost, including rationalization of loss-
making routes, return of leased aircraft, phasing out of old
fleet, reduction in contractual employment and outsourced
agencies, fuel savings through a critical analysis of consumption,
optimization of aircraft utilization, and closure of foreign
stations and offline offices.

                         About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                          *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years.  Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


AIR INDIA: Gets INR1,200cr Equity Infusion from Government
----------------------------------------------------------
The Wall Street Journal's livemint.com reports that the Cabinet
Committee on Economic Affairs (CCEA) on Thursday approved a
further equity infusion of INR1,200 crore in ailing national flag
carrier Air India Ltd.

The airline has already got INR2,000 crore as part of the ongoing
rescue plan in last two years, livemint.com notes.  Air India had
debt of INR42,570 crore on its books and accumulated losses of
INR22,000 crore as on March 31.  Besides, livemint.com says, the
government has also approved and released a sum of INR500 crore as
equity investment in Air India during the current financial year.

"As Air India is passing through critical financial crunch, the
equity induction would not only ease the cash flow situation of
the company but would also preclude borrowings from the markets at
high costs," livemint.com cited CCEA in a statement.

livemint.com relates that CCEA said Air India's present paid up
equity capital is not sufficient for an aviation company of its
size.  The company is currently struggling to address costly
legacy assets, a weakening revenue stream and high cost structure
resulting in rising liabilities, CCEA added.

According to livemint.com, the airline is now demanding INR6,600
crore as an upfront payment for immediate relief.  The report,
citing the latest plan submitted to the government, says Air India
is seeking a total equity support of INR42,920 crore till fiscal
2021.  That's including guarantees for aircraft loans worth
INR30,584 crore (both present and future) up to the 2021 fiscal
year, livemint.com adds.

                          About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                          *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years.  Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.



AIR INDIA: Employees to Get June & July Salaries Today
------------------------------------------------------
The Economic Times reports that the Air India management on Friday
said salaries due to the staff would be cleared today, August 8.

According to the report, the Cabinet Committee on Economic Affairs
(CCEA) in a meeting chaired by Prime Minister Manmohan Singh
approved INR1,200 crore fresh equity and INR532 crore towards
service rendered towards charter operations for official travel
and evacuation.

The Economic Times notes that a senior Air India official told
IANS that, "The pending dues to all the staff would be given by
Monday."

"The management prioritized the disbursement of salaries as soon
as the company received the fresh equity. Our number one priority
right now is to disburse the salaries as soon as we receive the
funds from the government," the official said.

Air India's 40,000 employees have not received their salary for
June and July and performance linked incentives (PLI) from April
to July, The Economic Times relates.  The PLI constitutes a major
portion of employees' salary that can range between 40% to 97%,
the report notes.

The Air India official, according to The Economic Times, did not
divulge the status of PLI payments saying: "June and July salaries
would be released at the earliest.  The decision on PLIs payment
is awaited."

                         About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                         *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years.  Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


DEVANSH AUTO: CRISIL Places 'CRISIL B' Rating on INR43MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Devansh Auto Sales Pvt Ltd.

   Facilities                    Ratings
   ----------                    -------
   INR43 Million Term Loan       CRISIL B/Stable (Assigned)
   INR50 Million Cash Credit     CRISIL B/Stable (Assigned)


The rating reflects DASPL's below-average financial risk profile,
marked by a small net worth, high gearing, and weak debt
protection metrics, limited bargaining power with principal, and
exposure to intense competition in the auto dealership market.
These rating weaknesses are partially offset by the extensive
industry experience of DASPL's promoter.

Outlook: Stable

CRISIL believes that the DASPL will maintain its comfortable
business risk profile on the back of its promoters' experience in
the automobile dealership market and increasing penetration for
passenger vehicles. The outlook may be revised to 'Positive' if
DASPL's volumes pick up and operating margins improve
substantially. Conversely, the outlook may be revised to
'Negative' if there is decline in its market share, significantly
impacting the revenues and profitability, or if the company
undertakes a large debt-funded capital expenditure programme,
leading to deterioration in its capital structure and cash
accruals.

                         About Devansh Auto

DASPL was incorporated in September 2010 by Mr. Amit Kumar Modi to
undertake dealership of Chevrolet cars in Kolkata (West Bengal).
The dealership is for sale of passenger cars of all the segments
and for sale of spares, accessories, and service of vehicles.
DASPL is expected to start its operations from July 3, 2011, at
its 3200-square-feet showroom in Kolkata. The company has also
rented a workshop adjacent to the showroom. The total cost towards
establishing the showroom and workshop was INR80 million, which
was funded in a debt-equity mix of 3:1 (term loan of INR40 million
from State Bank of India, interest-bearing unsecured loans of
INR20 million extended by the promoter, and INR20 million of
promoter's equity).


DEVENTHIRA SPINNERS: CRISIL Ups Rating on INR17.2MM Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of
Deventhira Spinners Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL D'.

   Facilities                      Ratings
   ----------                      -------
   INR82.0 Million Cash Credit     CRISIL B+/Stable (Upgraded from
                                                       'CRISIL D')

   INR17.2 Million Term Loan       CRISIL B+/Stable (Upgraded from
                                                       'CRISIL D')

The upgrade reflects DSPL's track record of timely servicing of
debt obligations along with an improved liquidity on the back of
enhanced working capital limits; the working capital limits have
been enhanced by INR35 million in July 2011. The upgrade also
reflects CRISIL's belief that DSPL will continue to service its
debt in a timely manner over the medium term.

The rating reflects DSPL's relatively small scale of operations,
exposure to intense competition in the spinning industry,
susceptibility to volatility in raw material prices, and to risks
related to high dependence on a single supplier. These rating
weaknesses are partially offset by DSPL's comfortable financial
risk profile, marked by moderate gearing and debt protection
measures, and the benefits that the company derives from its
established relationships with its customers, and its promoter's
experience in the textiles industry.

Outlook: Stable

CRISIL believes that DSPL will maintain its financial risk profile
over the medium term on the back of steady cash accruals over the
medium term. The outlook may be revised to 'Positive' if the
company significantly increases its revenues and operating margins
together with sustained improvement in liquidity. Conversely, the
outlook may be revised to 'Negative' in case DSPL's financial risk
profile deteriorates driven by larger than expected debt-funded
capital expenditure, or adverse movement in input prices impacting
operating margins or dilution in family group synergies.

                       About Deventhira Spinners

Incorporated in 1980, DSPL manufactures blended polyester viscose
yarn (65 per cent polyester and 35 per cent viscose). DSPL's sales
are primarily to local dealers in Bhiwandi (Maharashtra) and in
Bhilwara (Rajasthan). It commenced operations with 6000 spindles,
and currently has 30,240 spindles. The company is owned by six
different family groups who are related to each other. In 2010-11
(refers to financial year, April 1 to March 31), DSPL bought back
shares from Mr. G Subramaniam and family, who owned 14 per cent of
the shares in the company.

DSPL reported a provisional profit after tax (PAT) of INR0.72
million on net sales of INR548.32 million for 2010-11, against a
PAT of INR5.64 million on net sales of INR380.66 million for 2009-
10.


GTL LIMITED: Syndicate Bank to Delay Seizure of Stake
------------------------------------------------------
George Smith Alexander and Anto Antony at Bloomberg News, citing
two people with direct knowledge of talks, report that Syndicate
Bank, a lender of GTL Ltd., agreed to delay a plan to seize shares
pledged by GTL's owners as collateral while creditors try to
revamp its $1.1 billion debt.

Bloomberg relates that the source persons, who declined to be
identified because the discussions are private, said state-run
lenders to GTL persuaded Syndicate Bank not to exercise its rights
to the shares.  Controlling shareholders of GTL have pledged more
than 20% of the company as collateral for a loan from the
Bangalore-based Bank, the source persons said.

According to Bloomberg, GTL's lenders moved to take control of the
Mumbai-based company after owners failed to pledge more shares
following an 83% decline in the stock price in two months.
Bloomberg recalls that the company on July 27 said ICICI Bank Ltd.
(ICICIBC) had taken over a 29%.  GTL has hired SBI Capital Markets
Ltd. to restructure the debt, Bloomberg relates citing GTL in a
June 27 statement.

"The bankers' consortium will work with the borrower to chart out
a way in which the loans can be recovered," K R Kamath, chairman
of Punjab National Bank, India's second largest state-run lender
and a creditor to GTL, told Bloomberg in an interview Wednesday.

According to Bloomberg, IFCI Ltd., a state-owned lender, sold
200,000 shares of unit GTL Infrastructure Ltd., pledged by GTL
Ltd., after the company's shares plunged 56% since June 16.  IFCI
seized ownership of 18% of GTL Infrastructure, Bloomberg notes,
citing a filing by GTL on July 21.

GTL Ltd. and GTL Infrastructure, which has about INR100 billion of
debt, on June 21 asked the market regulator to investigate the
"extraordinary fall" in its stock price, Bloomberg reports.

Bloomberg adds that the people said that GTL may sell property and
other assets to pay its debt.  Global Holding Corp. owns 52% stake
in GTL.  GTL on July 19 said that 51.92% of the shares in the
company held by Global Holding have been pledged as collateral to
lenders.

                     Credit Rating Downgrade

The Troubled Company Reporter-Asia Pacific reported on Aug. 2,
2011, that Fitch Ratings downgraded GTL Infrastructure Limited's
National Long-Term rating to 'Fitch C(ind)' from 'Fitch BB+(ind)'.
Further, the ratings have been removed from Rating Watch Negative
(RWN).  The Short-Term rating on its facilities has been affirmed
at 'Fitch A4(ind)'.  The agency has also downgraded GIL's various
bank loans:

   -- INR37,250m long-term loans/facilities: downgraded to 'Fitch
      C(ind)' from 'Fitch BB+(ind)'; and

   -- INR750m non-fund based working capital limits: downgraded to
      'Fitch C(ind)'/'Fitch A4(ind)' from 'Fitch BB+(ind)'/'Fitch
      A4(ind)'.

The rating action follows the filing of a statement by GIL at
Bombay Stock Exchange on July 21, 2011, that its board has
approved the draft debtors-creditors arrangement under the
corporate debt restructuring (CDR) scheme.

The downgrade reflects Fitch's treatment of GIL's potential CDR
with lenders as "coercive", in line with its criteria on treatment
of such CDRs.  The agency believed that although GIL's CDR may be
technically voluntary, it reflects the difficulties the company is
facing in servicing its existing loans.

Fitch noted that once the restructuring is executed successfully,
GIL's ratings will be lowered to 'Fitch D(ind)' before being
raised to a rating level commensurate with its restructured credit
profile.

                        About GTL Limited

Based in based in Mumbai, India, GTL Limited (BOM:500160) --
http://www.gtllimited.com/-- is a Network Services Company that
serves the Network Life-Cycle requirements of Telecom Service
Providers and Technology Providers (OEMs), globally.  As of
March 31, 2010, GTL had presence in 46 countries and had rolled
out networks for more than 70 cellular operators.


NARENDRA COTFIBRE: CRISIL Places CRISIL BB Rating on INR50MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Narendra Cotfibre Industries Pvt Ltd, part of
the CK group.

   Facilities                         Ratings
   ----------                         -------
   INR300 Million Cash Credit         CRISIL BB/Stable (Assigned)
   INR50 Million Proposed Long-Term   CRISIL BB/Stable (Assigned)
                 Bank Loan Facility

The rating reflects the CK group's established position in the
cotton and edible oil industry and improving operating efficiency
marked by increase in scale of operations and integration in its
operations. These rating strengths are partially offset by the
group's average financial risk profile, marked by weak interest
coverage ratio, average ratio of total outside liabilities to
tangible net worth, and modest net worth, large working capital
requirements, and susceptibility to risks related to project
completion and adverse regulatory changes.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of NCFPL, Narendra International Pvt Ltd,
Rahul Developers Pvt Ltd, CK Oils Pvt Ltd, and CK Cotspin Pvt Ltd,
collectively referred to as the CK group.  This is because all the
entities are in the same business, have significant business
linkages, and are promoted and managed by Mr. Narendra Agrawal.

Outlook: Stable

CRISIL believes that the CK group will continue to maintain its
established position in the cotton and edible oil industry, over
the medium term, and benefit from the buoyant outlook for the
cotton industry. The outlook may be revised to 'Positive' if the
group's capital structure improves because of equity infusion, or
it reports a higher-than-expected profitability along with the
timely commissioning of oil extraction unit of 500 tonnes per day
(TPD) under COPL.  Conversely, the outlook may be revised to
'Negative' in case the CK group undertakes a larger-than-expected
capital expenditure programme, its margins decline substantially,
there is an adverse impact of the monsoon, or in case of adverse
regulatory changes.

                          About the Group

CK group is engaged in the ginning, pressing and trading of cotton
bales, cotton seed oil, oil cake and pulses in Burhanpur, Madhya
Pradesh. The CK group has a ginning capacity of over 100,000 bales
per annum and an oil refinery of 150 TPD. Its trading operations
constitute around 70 per cent of its total business.

CK Group commenced operations in 1971 with CCPL. CCPL was promoted
by Mr. Chhaganlal Agrawal as a firm 'Chhaganlal Kishanlal &
Company (CKC)' in Burhanpur, Madhya Pradesh and in 2010-11, the
firm was reconstituted as a private limited company. The entity
was formed for undertaking cotton ginning and pressing on job work
basis. The entity was later demarcated to Mr. Narendra Agrawal,
son of Mr. Chhaganlal. In 1981, management installed its own
ginning capacity and started undertaking activities under its own
name.

NIPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Industries, formed in 1996. It also has
an exclusive dealership of KS Oils in the region.

COPL was formed in 2010-11 as private limited company to acquire
the business of Shree Venkateshwar Cotton Company, formed in 1981.
Company is implementing an oil extraction unit with a 500 TPD
capacity in the company at Maharashtra, expected to be
commissioned in 2011-12.

NCFPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Cot Fibre Industries, formed in 2001.
Group formed RDPL in 2005, which is also into same line of
business.

NCFPL is estimated to report profit after tax (PAT) of
INR11.4 million on net sales of INR1154.5 million for 2010-11, as
against PAT of INR5.2 million on net sales of INR723.0 million for
2009-10.


NARENDRA INT'L: CRISIL Assigns CRISIL BB Rating to INR100MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Narendra International Private Limited, part of
the CK group.

   Facilities                     Ratings
   ----------                     -------
   INR250 Million Cash Credit     CRISIL BB/Stable (Assigned)
   INR100 Million Proposed LT     CRISIL BB/Stable (Assigned)
          Bank Loan Facility  

The rating reflects the CK group's established position in the
cotton and edible oil industry and improving operating efficiency
marked by increase in scale of operations and integration in its
operations. These rating strengths are partially offset by the
group's average financial risk profile, marked by weak interest
coverage ratio, average ratio of total outside liabilities to
tangible net worth, and modest net worth, large working capital
requirements, and susceptibility to risks related to project
completion and adverse regulatory changes.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of NIPL, Rahul Developers Pvt Ltd,
Narendra Cotfibre Industries Pvt Ltd, CK Oils Pvt Ltd, and CK
Cotspin Pvt Ltd, collectively referred to as the CK group.  This
is because all the entities are in the same business, have
significant business linkages, and are promoted and managed by
Mr. Narendra Agrawal.

Outlook: Stable

CRISIL believes that the CK group will continue to maintain its
established position in the cotton and edible oil industry, over
the medium term, and benefit from the buoyant outlook for the
cotton industry. The outlook may be revised to 'Positive' if the
group's capital structure improves because of equity infusion, or
it reports a higher-than-expected profitability along with the
timely commissioning of oil extraction unit of 500 tonnes per day
(TPD) under COPL. Conversely, the outlook may be revised to
'Negative' in case the CK group undertakes a larger-than-expected
capital expenditure programme, its margins decline substantially,
there is an adverse impact of the monsoon, or in case of adverse
regulatory changes.

                        About the Group

CK group is engaged in the ginning, pressing and trading of cotton
bales, cotton seed oil, oil cake and pulses in Burhanpur, Madhya
Pradesh. The CK group has a ginning capacity of over 100,000 bales
per annum and an oil refinery of 150 tonnes per day (TPD). Its
trading operations constitute around 70% of its total business.

CK Group commenced operations in 1971 with CCPL. CCPL was promoted
by Mr. Chhaganlal Agrawal as a firm 'Chhaganlal Kishanlal &
Company (CKC)' in Burhanpur, Madhya Pradesh and in 2010-11, the
firm was reconstituted as a private limited company. The entity
was formed for undertaking cotton ginning and pressing on job work
basis. The entity was later demarcated to Mr. Narendra Agrawal,
son of Mr. Chhaganlal. In 1981, management installed its own
ginning capacity and started undertaking activities under its own
name.

NIPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Industries, formed in 1996. It also has
an exclusive dealership of KS Oils in the region.

COPL was formed in 2010-11 as private limited company to acquire
the business of Shree Venkateshwar Cotton Company, formed in 1981.
Company is implementing an oil extraction unit with a 500 TPD
capacity in the company at Maharashtra, expected to be
commissioned in 2011-12.

NCFPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Cot Fibre Industries, formed in 2001.
Group formed RDPL in 2005, which is also into same line of
business.

NIPL is estimated to report profit after tax (PAT) of INR8.5
million on net sales of INR1476.4 million for 2010-11, as PAT of
INR6.6 million on net sales of INR1199.2 million for 2009-10.


PRAGATI AUTOMATION: CRISIL Puts 'CRISIL B+' Rating on INR65MM Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Pragati Automation Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR65 Million Cash Credit         CRISIL B+/Stable (Assigned)
   INR153.6 Million LT Loan          CRISIL B+/Stable (Assigned)
   INR12.8 Million Proposed LT       CRISIL B+/Stable (Assigned)
            Bank Loan Facility
   INR75 Million Packing Credit      CRISIL B+/Stable (Assigned)
   INR2.5 Million Bank Guarantee     CRISIL A4 (Assigned)
   INR2.5 Million Letter of Credit   CRISIL A4 (Assigned)

The ratings reflect PAPL's below-average financial risk profile,
marked by small net worth and aggressive gearing, its large
working capital requirements, and its susceptibility to
cyclicality in end customer segments. These rating weaknesses are
partially offset by PAPL's established regional position in the
machine tools accessories business, promoters' extensive industry
experience, and established relationships with customers and
suppliers.

Outlook: Stable

CRISIL believes that PAPL will continue to benefit over the medium
term from its promoter's extensive industry experience and
established position in the machine tool accessories segment. The
outlook may be revised to 'Positive' if PAPL significantly scales
up its operations, improves capital structure, and maintains
profitability. Conversely, the outlook may be revised to
'Negative' if PAPL contracts more-than-expected debt to fund its
capital expenditure or faces significant decline in profitability.

                      About Pragati Automation

Set up as a partnership concern, Pragati Engineering Works, in
1976, PAPL was reconstituted as a private limited company in 2002.
PAPL's promoter-directors, Mr. A V Sathe, Mrs. S S Kulkarni, and
Mr. Atul S Bhirangi, have extensive experience in similar lines of
business. Based in Bengaluru, PAPL primarily manufactures tool
turrets, automatic tool changers, and power-chucking cylinders.
PAPL has an installed annual capacity of 5000 turrets and 2500
automatic tool changers, and is operating at 90 per cent capacity.

PAPL reported a profit after tax (PAT) of INR 0.30 million on net
sales of INR425 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a profit after tax of INR5 million
on net sales of INR531 million for 2008-09.


PRASAD SUGAR: CRISIL Assigns 'CRISIL B' Rating to INR171.2MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Prasad Sugar and Allied Agro Products Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR171.2 Million Rupee Term Loan   CRISIL B/Stable (Assigned)
   INR10 Million Bank Guarantee       CRISIL A4 (Assigned)

The ratings reflect PSAPL's exposure to risks related to
commissioning of, and stabilization of operations at, its proposed
sugar plant and its susceptibility to adverse regulatory changes.
These weaknesses are partially offset by PSAPL's comfortable
financial flexibility, due to low gearing.

Outlook: Stable

CRISIL believes that PSAPL will maintain its credit risk profile
over the medium term, on account of the strong demand for sugar
and its proximity to a good source of sugarcane. The outlook may
be revised to 'Positive' if the company is able to commence and
stabilize operations as scheduled, and service its debt in a
timely manner. Conversely, the outlook may be revised 'Negative'
in case of delay in the commercial production due to teething
issues which would adversely impact the debt repayment ability of
the company.

                       About Prasad Sugar

PSAPL, based in Ahmednagar (Maharashtra), was established in 2007
to manufacture sugar. The company was promoted by the Tanpure and
Deshmukh families of Maharashtra. It is in the final stages of
setting up its manufacturing unit, which will have a capacity of
2500 tonnes crushed per day (TCD). The plant is expected to begin
commercial production by October 2011.


PULSE POWER: CRISIL Puts CRISIL BB- Rating on INR50MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Pulse Power Technologies Pvt Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR50.00 Million Cash Credit       CRISIL BB-/Stable (Assigned)
   INR30.00 Million Letter of Credit  CRISIL A4+ (Assigned)
                  and Bank Guarantee

The ratings reflect Pulse Power's moderate financial risk profile,
marked by moderate gearing and healthy debt protection metrics,
and its promoter's extensive experience in manufacturing energy-
related products. These rating strengths are partially offset by
Pulse Power's small scale of operations, revenue concentration,
working-capital-intensive operations, and susceptibility of its
margins to volatility in raw material prices.

Outlook: Stable

CRISIL believes that Pulse Power's business risk profile will
remain constrained over the medium term by its small scale of
operations. The outlook may be revised to 'Positive' in case Pulse
Power increases its scale of operations significantly, while
maintaining its operating margin, thereby increasing its cash
accruals. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in Pulse Power's profitability, leading to
lower cash accruals, or if its capital structure deteriorates
because of any larger-than-expected debt funded capital
expenditure.

                      About Pulse Power

Established in 1995 by Mr. T. Banerjee, Pulse Power initially
manufactured and assembled uninterrupted power supply (UPS) units,
charge controllers, and control panels, and carried out in-house
designing and testing of solar inverters. In 1997-98 (refers to
financial year, April 1 to March 31), Pulse Power was acquired by
Mr. Swarna Kumar Ray Chaudhuri, and it ventured into the solar
power conditioning segment. In 2001, the company entered into a
technical collaboration with Optimal Power Solutions Pty.Ltd,
Australia, to undertake manufacturing and assembling of solar
power conditioning equipment, mainly solar power conditioning unit
(PCU). Pulse Power currently manufactures PCUs with capacities
ranging from 5 kilovolt ampere and above; around 90 per cent of
the company's sales are made to Optimal Power Synergy (I) Pvt.
Ltd, Kolkata.

Pulse Power reported, on provisional basis, a profit after tax
(PAT) of INR8 million on net sales of INR105.4 million for
2010-11; the company reported a PAT of INR4.4 million on net sales
of INR52.9 million for 2009-10.


RAHUL DEVELOPERS: CRISIL Assigns CRISIL BB Rating to INR110MM Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Rahul Developers Pvt Ltd, part of the CK group.

   Facilities                      Ratings
   ----------                      -------
   INR240 Million Cash Credit      CRISIL BB/Stable (Assigned)
   INR110 Million Proposed LT      CRISIL BB/Stable (Assigned)
           Bank Loan Facility

The rating reflects the CK group's established position in the
cotton and edible oil industry and improving operating efficiency
marked by increase in scale of operations and integration in its
operations. These rating strengths are partially offset by the
group's average financial risk profile, marked by weak interest
coverage ratio, average ratio of total outside liabilities to
tangible net worth, and modest net worth, large working capital
requirements, and susceptibility to risks related to project
completion and adverse regulatory changes.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of RDPL, Narendra International Pvt Ltd,
Narendra Cotfibre Industries Pvt Ltd, CK Oils Pvt Ltd, and CK
Cotspin Pvt Ltd, collectively referred to as the CK group. This is
because all the entities are in the same business, have
significant business linkages, and are promoted and managed by
Mr. Narendra Agrawal.

Outlook: Stable

CRISIL believes that the CK group will continue to maintain its
established position in the cotton and edible oil industry, over
the medium term, and benefit from the buoyant outlook for the
cotton industry. The outlook may be revised to 'Positive' if the
group's capital structure improves because of equity infusion, or
it reports a higher-than-expected profitability along with the
timely commissioning of oil extraction unit of 500 tonnes per day
(TPD) under COPL. Conversely, the outlook may be revised to
'Negative' in case the CK group undertakes a larger-than-expected
capital expenditure programme, its margins decline substantially,
there is an adverse impact of the monsoon, or in case of adverse
regulatory changes.

                        About the Group

CK group is engaged in the ginning, pressing and trading of cotton
bales, cotton seed oil, oil cake and pulses in Burhanpur, Madhya
Pradesh. The CK group has a ginning capacity of over 100,000 bales
per annum and an oil refinery of 150 tonnes per day (TPD). Its
trading operations constitute around 70 per cent of its total
business.

CK Group commenced operations in 1971 with CCPL. CCPL was promoted
by Mr. Chhaganlal Agrawal as a firm 'Chhaganlal Kishanlal &
Company (CKC)' in Burhanpur, Madhya Pradesh and in 2010-11, the
firm was reconstituted as a private limited company. The entity
was formed for undertaking cotton ginning and pressing on job work
basis. The entity was later demarcated to Mr. Narendra Agrawal,
son of Mr. Chhaganlal. In 1981, management installed its own
ginning capacity and started undertaking activities under its own
name.

NIPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Industries, formed in 1996. It also has
an exclusive dealership of KS Oils in the region.

COPL was formed in 2010-11 as private limited company to acquire
the business of Shree Venkateshwar Cotton Company, formed in 1981.
Company is implementing an oil extraction unit with a 500 TPD
capacity in the company at Maharashtra, expected to be
commissioned in 2011-12.

NCFPL was formed in 2010-11 as private limited company to acquire
the business of Narendra Cot Fibre Industries, formed in 2001.
Group formed RDPL in 2005, which is also into same line of
business.

RDPL is estimated to report provisional profit after tax (PAT) of
INR7.4 million on net sales of INR1438.4 million for 2010-11, as
against a PAT of INR4.4 million on net sales of INR1198.6 million
for 2009-10.


SEANTO MINERALS: CRISIL Assigns CRISIL B Rating to INR70MM LT Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Seanto Minerals and Energy Ltd.

   Facilities                    Ratings
   ----------                    -------
   INR40 Million Cash Credit     CRISIL B/Stable (Assigned)
   INR70 Million Proposed LT     CRISIL B/ Stable (Assigned)
          Bank Loan Facility
   INR40 Million Letter of       CRISIL A4 (Assigned)
                    Credit

The ratings reflect SMEL's small scale of operations and weak
financial risk profile, marked by low net worth, moderate gearing
and weak debt protection metrics. These rating weaknesses are
partially offset by the extensive industry experience of SMEL's
promoters.

Outlook: Stable

CRISIL expects SMEL to maintain a stable business risk profile
over the medium term, on the back of extensive experience of the
promoter. The outlook may be revised to 'Positive' if the company
reports higher than expected growth in revenues and profitability
while maintaining its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if SMEL's financial risk
profile deteriorates, because of lower profitability or revenues,
or deterioration in its working capital cycle.

                       About Seanto Minerals

SMEL, promoted by Mr. Sanjay Sanghai, a first generation
entrepreneur is engaged in trading of cast iron, shredded scrap
and HMS. The products are sourced domestically as well as
imported. The customers comprise local steel traders and
manufacturers. The company operates from its office at Mumbai.

SMEL reported a profit after tax (PAT) of INR 0.1 million on net
sales of INR72.23 million for 2010-11 on provisional basis (refers
to financial year, April 1 to March 31), as against a marginal net
loss during the previous year on sales of INR32.9 million.


SHREE MUKUND: CRISIL Rates INR100MM Bank Facility at 'CRISIL BB-'
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the
overdraft facility of Shree Mukund Associates.

   Facilities                         Ratings
   ----------                         -------
   INR100 Mil. Overdraft Facility     CRISIL BB-/Stable (Assigned)

The rating reflects the benefits that SMA derives from its
promoters' track record of project execution.  This rating
strength is partially offset by SMA's risks related to significant
exposure to the commercial property segment in and around Navi
Mumbai (Maharashtra).

Outlook: Stable

CRISIL believes that SMA will maintain its current business risk
profile on the back of the demand for commercial property in Navi
Mumbai.  The outlook may be revised to 'Positive' if SMA
demonstrates a significant increase in the scale of its operations
and exhibits a geographically diversified revenue profile, while
it maintains its debt protection metrics and its capital
structure. The outlook may be revised to 'Negative' in case of
lower-than-expected response to the firm's ongoing projects or
because of delays in projects implementation or larger-than-
expected funding support to the group concerns, all of which may
adversely impact SMA's ability to service its debt.

                       About Shree Mukund

SMA is a partnership firm, which constructs and sells commercial
property, primarily in and around Navi Mumbai.  The firm, which
was set up in 2004 has worked on five commercial projects till
date. SMA is owned by the Mumbai-based Bhanushali family.
Mr. Chirag Bhanushali, Mr. Laheri Bhanushali, Ms. L Bhanushali,
and Mr. Devji Joisar in equal proportion.

SMA reported (provisional numbers) a profit before tax of
INR0.6 million on net sales of INR48 million for 2010-11 (refers
to financial year, April 1 to March 31), against a PAT of
INR2.4 million on net sales of INR46 million for 2009-10.


SHYAM LEELA: CRISIL Rates INR75MM Cash Credit at 'CRISIL BB+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit facility of Shyam Leela Fashion House Pvt Ltd.

   Facilities                     Ratings
   ----------                     -------
   INR75 Million Cash Credit      CRISIL B+/Stable (Assigned)

The rating reflects SLF's weak financial risk profile, constrained
by large working capital requirements.  The rating also reflects
the company's low operating margin because of its small scale of
operations in a fragmented and competitive industry. These rating
weaknesses are partially offset by the established track record of
SLF's promoters in the textile trading business.

Outlook: Stable

CRISIL expects SLF's to benefit from its promoters' established
track record. The outlook may be revised to 'Positive' in case of
an improvement in SLF's financial risk profile, most likely driven
by more-than-expected cash accruals or fresh infusion of capital
by the promoters. Conversely, the outlook may be revised to
'Negative' in case of less-than-expected cash accruals, more-than-
expected working capital borrowings, or larger-than-expected debt-
funded capital expenditure.

                         About Shyam Leela

SLF is into wholesale of sarees, cloth materials, and handloom
items. The promoters started the trading business as a firm, under
the name Shyam Sari Center, in Kanpur (Uttar Pradesh) in 1965. The
firm was reconstituted as a company in April 2010. SLF is located
at the wholesale market in Kanpur. It sources sarees, cloth
materials, and handloom items from various cities in Western
India, including Surat (Gujarat) and The items are sold to
retailers and wholesalers in Uttar Pradesh, Bihar, Madhya Pradesh,
and Jharkhand.

SLF reported, on provisional basis, a profit after tax (PAT) of
INR0.2 million on net sales of INR599.6 million for 2010-11
(refers to financial year, April 1 to March 31); the company
reported a PAT of INR7.5 million on net sales of INR568.5 million
for 2009-10.


SIMPLEX CHEMOPACK: CRISIL Rates INR76.2MM Cash Credit at CRISIL BB
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to Simplex
Chemopack Pvt Ltd's cash credit facility.

   Facilities                      Ratings
   ----------                      -------
   INR76.2 Million Cash Credit     CRISIL BB/Stable (Assigned)

The rating reflects SCPL's modest scale of operations and slender
operating margin due to limited pricing flexibility in the highly
fragmented polypropylene (PP) and high-density polyethylene (HDPE)
bag industry.  These rating weaknesses are partially offset by
SCPL's established position in the domestic market and healthy
relations with marquee customers.

Outlook: Stable

CRISIL believes that SCPL will maintain a stable business risk
profile on the back of established position in PP and HDPE woven
sacks industry and healthy customer relationships. The outlook may
be revised to 'Positive' in case the company achieves a
significant increase in revenues and net cash accruals while
maintaining its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in its operating margin or debt protection metrics
or if it undertakes a large, debt-funded capital expenditure
programme.

                    About Simplex Chemopack

SCPL was acquired by the Sarda family from the Nagpur
(Maharashtra)-based Mr. Mahesh Shah in 2000. It manufactures PP
and HDPE sacks and fabrics.

The company is currently managed by Nagpur-based Mr. Damodar Sarda
and members of his family. The overall operations of the company
are managed by Mr. Damodar Sarda along with his two sons, Mr.
Gaurav Sarda and Mr. Kunjan Sarda.  The company's unit in Nagpur
has a capacity of 4800 tons per annum (tpa) of PP/HDPE tapes and
3600 tpa of woven sacs and fabrics. The management is in the
process of augmenting the production capacity to around 7200 tpa
of PP/HDPE tapes and around 7000 tpa of woven sacs and fabrics.

SCPL reported a profit after tax (PAT) of INR7.0 million on an
operating income of INR332 million for 2009-10, against a PAT of
INR5.0 million on operating income of INR297 million for 2008-09.
SCPL's estimated revenues are around INR402 million for 2010-11.


SRI DURGA: CRISIL Raises Rating on INR110MM Loan at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Sri Durga
Automotives to 'CRISIL BB-/Stable' from 'CRISIL B+/Stable'.

   Facilities                       Ratings
   ----------                       -------
   INR110.00 Million Cash Credit    CRISIL BB-/Stable (Upgraded
                                        from CRISIL B+/Stable')

   INR10.00 Million Standby Line    CRISIL BB-/Stable (Upgraded
                       of Credit       from 'CRISIL B+/Stable')

The rating upgrade reflects improvement in SDA's business risk
profile, with the firm's diversification into the dealership of
Mahindra & Mahindra Ltd's (M&M's, rated 'CRISIL AA+/Stable/CRISIL
A1+') passenger vehicles (Xylo, Scorpio and Verito).  The rating
upgrade also factors in increase in SDA's scale of operations by
about 26 per cent in 2010-11 (refers to financial year April 1, to
March 31) over that in 2009-10. M&M passenger vehicle dealership
is expected to strengthen SDA's business risk profile further,
leading to an increase in its scale of operations and improvement
of its working capital management over the medium term.

The ratings reflect SDA's healthy relationship with M&M, its main
supplier, and the firm's established regional track record of more
than five decades in the Cuddapah district of Andhra Pradesh (AP).
These rating strengths are partially offset by SDA's below-average
financial risk profile, marked by high total indebtedness (total
outside liabilities over total net worth), weak debt protection
metrics, limited bargaining power with its principal, M&M, and
susceptibility to volatility in demand for tractors in the
domestic market.

Outlook: Stable

CRISIL believes that SDA will maintain its moderate business risk
profile over the medium term, supported by its established market
position as a dealer of tractors of M&M in the Cuddapah district
of AP, and its recent diversification in passenger car dealership.
The outlook may be revised to 'Positive' if SDA improves its total
indebtedness by increasing its accretions to net worth and
improving its working capital management. Conversely, the outlook
may be revised to 'Negative' in case of subdued demand for
tractors, resulting in sharp decline in the firm's revenues or
profitability, if the firm undertakes any large debt-funded
capital expenditure programme, or if it extends more-than-expected
funds to associate entities, thereby weakening its financial risk
profile.

                       About Sri Durga

SDA was set up in 1959 as a proprietorship firm and was later
reconstituted as a partnership firm. It is an authorized dealer of
M&M for tractors, light commercial vehicles (LCVs), two- and
three-wheelers and jeeps in Cuddapah. SDA also has dealership
operations for two-wheelers in Tirupathi, AP. It has eight
showrooms for sale of vehicles, spares and accessories and seven
service centres. SDA derives around 60 per cent of its revenues
from the tractor segment. Furthermore, SDA is also an authorized
dealer of the air conditioners of Voltas Ltd.

In 2011-12 (refers to financial year, April 1 to March 31), SDA
further diversified into dealership of construction equipment of
M&M for the regions of Kurnool, Nellore, Tirupathi and Ananthapur
districts of Andhra Pradesh. Also, it got the dealership from M&M
for the passenger vehicles Scorpio, Xylo and Verito, for the
Cuddapah region; operations of the M&M passenger vehicle
dealership business are expected to commence from August 2011
onwards.

SDA reported a profit after tax (PAT) of INR7.6 million on net
sales of INR747 million for 2009-10, as against a PAT of INR5.4
million on net sales of INR716 million for 2008-09. For 2010-11,
the firm reported, on provisional basis, a PAT of INR11 million on
net sales of INR947 million.


SRI MAHANANDEESWARA: CRISIL Puts on INR49MM LT Loan at CRISIL BB+
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable' rating to the bank
facilities of Sri Mahanandeeswara Educational Society, which is
part of the Keshava Reddy group.

   Facilities                      Ratings
   ----------                      -------
   INR49 Million Long-Term Loan    CRISIL BB+/Stable (Assigned)
   INR1 Million Proposed LT        CRISIL BB+/Stable (Assigned)
         Bank Loan Facility

The rating reflects SMES's above-average financial risk profile,
marked by moderate gearing and debt protection metrics, and the
benefits that that the society derives from the Keshava Reddy
group's established position in the primary and secondary
education segments, and promoters' extensive experience in the
education sector. These rating strengths are partially offset by
SMES's small scale of operations and susceptibility to adverse
regulatory changes; moreover, the society's operations are limited
to the school segment.

Outlook: Stable

CRISIL believes that SMES will continue to benefit over the medium
term from its promoters' extensive experience and the established
regional position of the Keshava Reddy group in the primary and
secondary education segments. The outlook may be revised to
'Positive' if SMES generates significantly more-than-expected
operating revenues and cash accruals, leading to improvement in
its liquidity. Conversely, the outlook may be revised to
'Negative' if the society undertakes a larger-than-expected, debt-
funded capital expenditure programme, extends more-than-expected
funding support to group entities, thereby weakening its
liquidity, or if its operations or revenues are adversely affected
because of any adverse regulatory changes.

                     About Sri Mahanandeeswara

SMES was formed by Mr. N Keshava Reddy and his family members. The
society, registered under the Societies Registration Act, 1860,
runs one school in Nandyal, Kurnool district, Andhra Pradesh (AP).
The school is affiliated to AP State Board. The school offers
education in English medium from the first to the tenth standard.
The society owns the school, which is residential, with a 30-acre
campus.

SMES is part of the Keshava Reddy group of educational
institutions, offering primary and secondary education in AP.
Currently, the group manages 11 societies/entities, which run 31
schools across 14 locations in AP under the brand Keshava Reddy.
The group has a total student base of about 60,000.

SMES reported a surplus (excess of income over expenditure) of
INR6.9 million on net revenues of INR25.2 million for 2009-10
(refers to financial year, April 1 to March 31); for 2010-11, is
net revenues are estimated at INR54.0 million.


WOCKHARDT LTD: Seeks Court OK to Sell Nutrition Business
--------------------------------------------------------
The Times of India reports that Wockhardt Limited filed an
application on Wednesday in the Bombay high court seeking approval
for divestment of its nutrition business to Danone even as a
clutch of investors expressed doubts over the completion of the
deal.

Danone, a French dairy and nutrition major, is acquiring
Wockhardt's nutrition business for EUR250 million (about INR1,575
crore), marking its entry into the growing baby and medical
nutrition market in India, according to the Times of India.

Court approval is mandatory since Wockhardt is facing a winding up
petition, filed by a clutch of aggrieved investors led by US
private equity fund QVT, and an overseas unit of Sun Pharma, the
report notes.

According to the report, doubts are also being raised on whether
the foreign currency convertible bond (FCCB) holders will let the
deal go through this time, although the sale does not require
their approval.

The Times of India relates that a representative of the FCCB
holders' said that the terms of the deal were still awaited and,
at this juncture, they were not aware whether it would "protect
their interest."

In July 2009, these investors, who hold 40% of Wockhardt's FCCBs,
scuppered the INR625 crore deal which the company had signed with
drug major Abbott for its nutrition business, citing
"unfavourable" terms, according to The Times of India.  "There are
serious concerns which the company has to resolve -- the CDR
(corporate debt restructuring) lenders, liability on account of
FCCB holders, and exposure to derivative contracts," the report
quotes Ranjit Kapadia, senior VP Centrum Broking, as saying.

As reported in the Troubled Company Reporter-Asia Pacific on
March 25, 2011, Bloomberg News said the Bombay High Court granted
an interim stay on a petition filed by bondholders to liquidate
Wockhardt Ltd.  The company said on March 23, 2011, that it will
deposit INR1.15 billion in court by May 3, 2011.

According to Bloomberg, a group of three bondholders, including
U.S. hedge fund QVT Financial LP, and an overseas unit of Sun
Pharmaceutical Industries Ltd. filed the petition after Wockhardt
defaulted on payments of its $110 million convertible bonds that
matured in October 2009.  The claimants are looking to retrieve a
total sum of INR6.34 billion, Janak Dwarkadas, senior counsel for
the creditors, said on March 14.

                       About Wockhardt Limited

Wockhardt Limited is an India-based pharmaceutical company.  The
Company is a subsidiary of Khorakwala Holdings and Investments
Private Limited.  The geographical segments of the Company are
India, the United States/Western Europe and Rest of the World.
The Company's subsidiaries includes Wockhardt Biopharm Limited,
Vinton Healthcare Limited, Wockhardt Infrastructure Development
Limited, Wockhardt UK Holdings Limited, CP Pharmaceuticals
Limited, Wallis Group Limited, The Wallis Laboratory Limited,
Wallis Licensing Limited, Wockhardt UK Limited, Wockhardt France
(Holdings) S.A.S., Girex S.A.S., Niverpharma S.A.S., Laboratories
Negma S.A.S., DMH S.A.S., Phytex S.A.S., Scomedia S.A.S. and Mazal
Pharmaceutique S.A.R.L.  In August 2009, the Company completed the
divestment of its Animal Health Division to Vetoquinol, France.


VICTORA AUTO: CRISIL Assigns 'CRISIL B' Rating to INR40MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Victora Auto Parts Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR40 Million Rupee Term Loan    CRISIL B/Stable (Assigned)
   INR60 Million Letter of Credit   CRISIL A4 (Assigned)
   INR300 Million Bill Purchase-    CRISIL A4 (Assigned)
            Discounting Facility
   INR50 Million Packing Credit     CRISIL A4 (Assigned)

The ratings reflect VAP's weak financial risk profile marked by
weak liquidity, highly leveraged capital structure, and average
debt protection metrics, and large working capital requirements.
These rating weaknesses are partially offset by VAP's strong
growth in operating income and the benefits the company derives
from its promoters' extensive experience in the automotive (auto)
components industry and its established position in the domestic
and export markets.

Outlook: Stable

CRISIL believes that VAP's financial risk profile will remain weak
over the medium term, driven by the company's large incremental
working capital requirements and highly leveraged capital
structure. The outlook may be revised to 'Positive' if VAP's
capital structure and liquidity improve significantly, most likely
because of equity infusion or strong improvement in cash accruals
and efficient working capital management. Conversely, the outlook
may be revised to 'Negative' in case of unexpected pressure on
revenues and profitability, leading to lower-than-expected cash
accruals, or larger-than-expected, debt-funded capital expenditure
and incremental working capital requirements.

                          About Victora Auto

VAP was incorporated in 2003 and promoted by Mr. Hardeep Singh
Banga and his brother, Mr. Satinder Singh Banga. It has a
manufacturing unit in Sector 25, Faridabad (Haryana). The company
manufactures exhaust system hangers for passenger cars. It is a
tier II supplier, wherein the company supplies to tier I auto
components manufacturers, who in turn supply to auto original
equipment manufacturers. VAP supplies primarily to the export
market, and revenues from exports comprise 85 per cent of its
total sales. The rest of the revenues are mainly from sales of
scrap and small components to various auto component manufacturers
in the domestic market.

VAP's profit after tax (PAT) and net sales are estimated at
INR20.3 million and INR623.6 million for 2010-11 (refers to
financial year, April 1 to March 31); it reported a PAT of INR18.5
million on net sales of INR460.1 million for 2009-10.


VISWAS BUSINESS: CRISIL Cuts Rating on INR200MM Loan to 'CRISIL D'
------------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Viswas
Business Synergies Pvt Ltd to 'CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'.

   Facilities                         Ratings
   ----------                         -------
   INR200.00 Million Cash Credit      CRISIL D (Downgraded from
                                            'CRISIL BB/Stable')

   INR50.00 Million Bank Guarantee/   CRISIL D (Downgraded from
                  Letter of Credit                'CRISIL A4+')

The downgrade reflects Viswas's continuously overdrawn cash credit
limits and devolvement of letter of credit for over 30 days. The
delays have been caused by the company's inventory losses between
April 2011 and June 2011. As per the management, Viswas ceased
operations following the losses.

Viswas also has a below-average financial risk profile, marked by
low net worth and weak debt protection metrics, and working-
capital-intensive operations; moreover, it is exposed to intense
competition in the agricultural (agro) inputs market and is
susceptible to erratic rainfall. Viswas, however, benefits from
its promoters' experience in the agro inputs sector.

                        About Viswas Business

Set up in 2006 by Mr. Vijay Rai, Mr. N Chandra Sekhar, Dr. K R K
Reddy, and Mr. P V Mohan Rao, Viswas trades in seeds, fertilisers,
pesticides, bio-products, and implements. The company is
headquartered in Hyderabad (Andhra Pradesh); it operates in Andhra
Pradesh, Tamil Nadu, Karnataka, and Maharashtra. In 2006-07
(refers to financial year, April 1 to March 31), Viswas received a
seed capital from private equity institution, Peepul Capital LLC.


=========
J A P A N
=========


ORSO FUNDING: S&P Affirms Ratings on 2 Classes of Certs. at 'CCC-'
------------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating to 'A (sf)'
from 'BBB- (sf)' on the class C trust certificates issued under
the Orso Funding CMBS 5 Trust transaction, and affirmed its
ratings on classes D to F issued under the same transaction. "At
the same time, we withdrew our rating on class X in accordance
with our revised criteria for rating interest-only (IO)
securities. Classes A and B were fully redeemed on the trust
dividend distribution date in July 2011, at which time we withdrew
the ratings on these classes," S&P related.

"Of the seven loans that initially backed the transaction, only
four loans (the four loans originally represented a combined 83%
or so of the total issuance amount of the trust certificates)
remained when we reviewed our ratings on Feb. 22, 2011, and all of
these four loans have defaulted. With respect to two of the four
defaulted loans (the two loans originally represented a combined
39% or so of the total issuance amount of the trust certificates),
full amounts were recovered in March 2011 and July 2011. Because
the collected proceeds were used to make principal payments on the
trust certificates in sequential order (starting from the upper-
level tranches), classes A and B were fully redeemed on the trust
dividend distribution date in July 2011, and as a result, credit
enhancement levels for the class C trust certificates have
increased markedly. We raised the rating on class C to reflect the
improved credit support for that class. However, we did not raise
our rating on class C to a level higher than 'A (sf') because we
see a risk that collections from the remaining collateral
properties backing the defaulted loans will not be completed by
the transaction's legal final maturity date in February 2013," S&P
related.

Under the transaction agreement, principal on the trust
certificates, which is to be redeemed pro rata if the underlying
loans are repaid as scheduled, is set to be redeemed in sequential
order if the transaction's underlying loans default. Because the
two other remaining loans (the loans other than the two that were
recovered in March 2011 and July 2011; the two loans originally
represented a combined 44% or so of the total issuance amount of
the trust certificates) have also defaulted, principal payments on
the trust certificates are being made in sequential order. "We
affirmed our ratings on classes D to F because the minimum
collection amount from the properties backing the two loans that
is stated in the servicer's business plan remains in line with our
assumption as of November 2010," S&P said.

Orso Funding CMBS 5 Trust is a multiborrower commercial mortgage-
backed securities (CMBS) transaction. The trust certificates were
originally backed by nonrecourse loans extended to seven obligors,
and the loans were secured by 43 real estate properties. This
transaction was arranged by Bear Stearns (Japan) Ltd. Tokyo
Branch, and Premier Asset Management Co. acts as servicer
for this transaction.

"The ratings reflect our opinion on the likelihood of the full
payment of interest and ultimate repayment of principal by the
transaction's legal final maturity date in February 2013 for the
class C to F certificates," S&P related.

Rating Raised
Orso Funding CMBS 5 Trust
JPY33.25 billion commercial real estate-backed
trust certificates due February 2013

Class   To       From        Initial issue amount
C       A (sf)   BBB- (sf)   JPY3.8 bil.

Ratings Affirmed
Class     Rating        Initial issue amount
D         B (sf)        JPY3.9 bil.
E         CCC- (sf)     JPY3.7 bil.
F         CCC- (sf)     JPY0.25 bil.

Rating Withdrawn
Class   To   From       Initial notional principal
X       NR   AAA (sf)   JPY33.25 bil.

The issue date was Aug. 21, 2006.


TOKYO ELECTRIC: To Compensate Tourism Industry Over Nuclear Crisis
------------------------------------------------------------------
Kyodo News reports that a Japanese government panel recommended
Friday that Tokyo Electric Power Co. be required to pay damages to
tourism companies across Japan, including tour agencies and
operators of hotels and "ryokan" Japanese-style inns, which have
been adversely affected by the nuclear crisis due to cancellations
by foreign travelers.

The recommendation, according to the news agency, forms part of
the guidelines on compensation worked out by a 10-member panel
under the Ministry of Education, Culture, Sports, Science and
Technology.

Kyodo notes that the interim guidelines adopted Friday expand the
range of farm and seafood products to be covered due to a sharp
decline in their prices and requires TEPCO to pay compensation to
cattle farmers in 17 prefectures where rice straw contaminated
with radioactive cesium has been confirmed to have been sold as
feed for cattle.

According to Kyodo, the Ministry of Agriculture, Forestry and
Fisheries said separately that the government will initially use
taxpayers' money to buy up beef from 3,500 cattle fed on
contaminated rice straw, even if the levels of radioactive
contamination are below the government-set limit.  The
compensation will cover contaminated beef already distributed to
markets, Kyodo says.

The government will also buy up cattle in Fukushima and other
prefectures where their shipment has been banned, Kyodo adds.

Industry bodies will be in charge of buying up the beef and
cattle.  Necessary funds will be disbursed by the state, but TEPCO
is required to shoulder the costs of compensation, according to
Kyodo.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 5, 2011, Bloomberg News reported that Japan's parliament
approved state support of TEPCO's compensation for victims of the
Fukushima nuclear disaster with a plan that asks shareholders to
shoulder some of the burden.  According to Bloomberg, the
legislation creates a state-backed entity to pay damages
associated with the atomic accident with "necessary cooperation
from shareholders and other interested parties."  Bloomberg
related that Trade Minister Banri Kaieda told lawmakers that the
government aims to establish the entity as early as this month and
will provide JPY2 trillion for its funding.

                          About TEPCO

Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

Bloomberg News said the utility is battling radiation leaks at the
Fukushima Dai-Ichi power plant north of Tokyo after a March 11
earthquake and tsunami knocked out its cooling systems, causing
the biggest atomic accident in 25 years.  More than 50,000
households were forced to evacuate and Bank of America Corp.'s
Merrill Lynch estimates TEPCO may face compensation claims of as
much as JPY11 trillion (US$135 billion).

As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2011, Standard & Poor's Ratings Services lowered Tokyo
Electric Power Co. Inc.'s (TEPCO) long-term corporate credit
rating to 'B+' from 'BBB' and its short-term corporate credit
rating to 'B' from 'A- 2'.  At the same time, the long-term debt
rating on TEPCO was lowered to 'BB+' from 'BBB'.  All ratings
remain on CreditWatch with developing implications. "At the same
time, we lowered TEPCO's stand-alone credit profile (SACP) to
'ccc+' from 'bb-', and we lowered the likelihood that it will
receive extraordinary support from the government of Japan (AA-
/Negative/A-1+) to 'high' from 'very high'," S&P said.

"The rating downgrades reflect Standard & Poor's opinion that
uncertainty over the timeliness of any extraordinary government
support for TEPCO under the current political climate has further
exacerbated TEPCO's deteriorating SACP and TEPCO's worsening
financial position increases the likelihood, in our view, that its
lender banks could restructure its borrowings. Under Standard &
Poor's ratings criteria, any waiver of loans or distressed
restructuring, such as a lowering of interest rates on existing
loans, constitutes a form of default and would trigger a lowering
of the corporate credit ratings on TEPCO to 'SD'--Selective
Default," S&P explained.


====================
N E W  Z E A L A N D
====================


CAPITAL + MERCHANT: Case Against Directors Adjourned to Aug. 28
---------------------------------------------------------------
Susie Nordqvist at nzherald.co.nz reports that the Serious Fraud
Office case against two current directors and one former director
of Capital + Merchant Finance Ltd has been adjourned to later this
month when two of the accused are expected to enter not guilty
pleas.

Neal Medhurst Nicholls, Wayne Leslie Douglas and Owen Francis
Tallentire face 11 charges relating to more than NZ$28 million
worth of transactions between 2004 and 2006, according to
nzherald.co.nz.

The SFO, says nzherald.co.nz, alleges the transactions were in
branch of restrictions contained in the company's trust deed, and
resulted in trusts controlled by the accused receiving about
NZ$15.9 million in benefits.

The charges are in addition to six Serious Fraud Office charges
laid last year against Nicholls and Douglas, nzherald.co.nz notes.

The case is due to go to trial in February next year, the report
cites.

According to the report, both Messrs. Nichollas and Douglas were
in court Friday, but have not yet entered pleas.  They are
expected to do so at their next court appearance on August 28 when
they would have had initial disclosure, nzherald.co.nz adds.

                      About Capital + Merchant

Capital + Merchant Finance Ltd, operating in property finance, was
one of the bigger finance companies in New Zealand.  Capital +
Merchant Finance, along with subsidiary Capital + Merchant
Investments Ltd., went into receivership on November 23, 2007, due
to breaches in respect of general security agreements issued by
the companies in favor of creditor Fortress Credit Corporation
(Australia) 11 Pty Ltd.  Fortress appointed Tim Downes and Richard
Simpson of Grant Thornton, chartered accountants, while trustee
Perpetual Trust have called in KordaMentha.

Capital + Merchant owes about NZ$190 million to 7,000 investors.
Fortress reportedly has a prior charge over assets and was owed
around NZ$70 million in total.


EXIDE TECHNOLOGIES: Temporarily Closes NZ Battery Recycling Plant
-----------------------------------------------------------------
Radio New Zealand reports that Exide Technologies battery
recycling plant in Lower Hutt has been shut down for a few days
due to a shortage of work.

The plant's long-term future is still uncertain, however, as
discussions by its United States owners continue, Radio New
Zealand says.

Radio New Zealand notes that a permanent closure of the Exide
plant in Petone would cost more than 40 jobs and leave New Zealand
without the ability to recycle used lead acid batteries onshore.

According to Radio New Zealand, Lower Hutt residents have fought a
long-running battle with Exide to have the plant closed, but
Environment Minister Nick Smith says New Zealand should not be
sending toxic waste to other countries.

Under the Basel Convention, Radio New Zealand says, the Government
has an international obligation to handle toxic waste, if
possible, within the country's borders.

Since late 2008, almost 100,000 tonnes of toxic lead batteries
have been sent abroad.

                    About Exide Technologies

Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.

The Company filed for Chapter 11 protection (Bankr. Del. Case No.
02-11125) on April 14, 2002.  Matthew N. Kleiman, Esq., and
Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill,
Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors
in their successful restructuring.  The Court confirmed Exide's
Amended Joint Chapter 11 Plan on April 20, 2004.  The plan took
effect on May 5, 2004.  While it has emerged from Bankruptcy,
reorganized Exide is still resolving claims filed against it in
the Bankruptcy Court.

                           *     *     *

Reorganized Exide carries 'B' issuer credit ratings from Standard
& Poor's.  "The ratings on Exide Technologies reflect what we
consider to be the Company's aggressive financial risk profile,
which incorporates S&P's expectation that sales and profitability
will improve gradually as demand increases," said Standard &
Poor's credit analyst Nancy Messer.

Exide has 'B3' corporate family and probability of default ratings
from Moody's Investors Service.  In July 2008, Moody's upgraded
the rating to 'B3' from 'Caa1'.  Exide's B3 Corporate Family
Rating continues to incorporate the company's leveraged profile,
cyclical industry characteristics, and raw material pricing
pressure, Moody's said in January 2011.


                             *********

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, 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.





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