/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120409.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, April 9, 2012, Vol. 15, No. 70 Headlines A U S T R A L I A BILL EXPRESS: Al-Othman Files $10MM Lawsuit Again Macquarie Group C H I N A CHINA FRUITS: Lake & Associates Raises Going Concern Doubt H O N G K O N G MARINE MANNING: Final Meetings Set for April 30 MAX EVER: Members' Final Meeting Set for April 30 MINGO (ASIA): Members' Final General Meeting Set for April 30 NEW CHINA: Annual Meetings Slated for April 24 NEW CHINA HK: Annual Meetings Slated for April 24 NEW CHINA HK DEVELOPMENT: Annual Meetings Slated for April 24 NEW CHINA HK ENTERPRISES: Annual Meetings Slated for April 24 NEW CHINA HK ESTATE: Annual Meetings Slated for April 24 NEW CHINA HK GROUP: Annual Meetings Slated for April 24 NEW CHINA HK INDUSTRIAL: Annual Meetings Slated for April 24 NEW CHINA HK TRADING: Annual Meetings Slated for April 24 SINCE-TECH INDUSTRIAL: Creditors' Proofs of Debt Due April 27 SINO TREND: Creditors' Proofs of Debt Due April 13 TWILIGHT TRADING: Members' Final General Meeting Set for May 2 UNIQUE CONCEPT: Members' Final Meeting Set for May 4 WON NAVIGATION: Members' Final Meeting Set for May 2 YEN NAVIGATION: Members' Final Meeting Set for May 2 YORK RISE: Members' Final Meeting Set for May 4 ZEGNA INFORMATION: Li and Lee Step Down as Liquidators I N D I A A. S. CARRIERS: Delay in Debt Payment Cues CRISIL Junk Ratings BAJAJ STEELS: CRISIL Assigns 'CRISIL B+' Rating to INR130MM Loans EMPIRE SPICES: CRISIL Places 'CRISIL BB-' on INR110MM Loans GAYATRI JHANSI: CRISIL Rates INR3.4-Bil. Loan 'CRISIL BB+(SO)' GREATECH TELECOM: Delay in Loan Payment Cues CRISIL Junk Ratings HYDERABAD EXPRESSWAYS: CRISIL Rates INR2.9-Bil. Loan 'CRISIL BB+' KITCHEN GRACE: CRISIL Rates INR97.5MM Loans 'CRISIL B+' PRITIKA AUTOCAST: CRISIL Rates INR199.1MM Loans 'CRISIL BB-' RAJ KUMAR: CRISIL Assigns 'BB+' Rating to INR322.6MM Loans RUBICON INSPECTION: CRISIL Rates INR50MM Loans 'CRISIL B' SEVEN SEAS: CRISIL Assigns 'CRISIL BB' Rating to INR130.3MM Loans SHRI RAMANA: CRISIL Rates INR47.5MM Cash Credit 'CRISIL B' SONALI AUTOS: CRISIL Assigns 'CRISIL BB-' Rating on INR325MM Loan SREE LAKSHMI: CRISIL Assigns 'CRISIL BB-' Rating to INR30MM Loan SYNERGY TELECOM: CRISIL Cuts Rating on INR520MM Loans to 'BB+' J A P A N AIJ INVESTMENT: Diet to Summon AIJ President, Three Others CORSAIR NO. 2: S&P Puts 'B+' Credit Default Swap Rating on Watch OLYMPUS CORP: Investors Protest Nambu's Appointment as CFO N E W Z E A L A N D 4RF COMM: In Receivership; Fails to Reach Deal With Noteholders BRIDGECORP LTD: Three Directors Found Guilty CAPITAL + MERCHANT: Receivers Win Right to Appeal GST Liability NZF MONEY: Receivers to File Action Against NZF Group - - - - - ================= A U S T R A L I A ================= BILL EXPRESS: Al-Othman Files $10MM Lawsuit Again Macquarie Group ----------------------------------------------------------------- The Sydney Morning Herald reports that a company with ties to Saudi Arabia's royal family is leading a $10 million lawsuit against Macquarie Group over the illegal trading of shares in collapsed Bill Express. SMH relates that legal firm Slater & Gordon on April 4 lodged a statement of claim in the Federal Court on behalf of its Saudi- based clients, Al-Othman Group and Voice and Data Telecommunication Company, claiming Macquarie Equities was responsible for the actions of rogue trader Newton Chan, who was jailed for illegal trades in Bill Express shares. The AUD250 million failure of Bill Express and its parent company, OnQ Group, was one of the biggest corporate collapses in Australia during the global financial crisis, SMH notes. Al-Othman Group is the private investment company of Saudi Arabia's wealthy Al-Othman family. About Bill Express Bill Express Ltd. -- http://www.billexpressltd.com/-- was engaged in the management and development of an electronic distribution system for pre-paid products and services across in excess of 14,000 locations around Australia, automated ordering, delivery and inventory control for pre-paid services including mobile, landline and Internet services. It also processed payments for bills and services, including bills that are presented for payment to its outlets across Australia. The company had an in-store media, which is a network that promotes Bill Express Limited's and other products at the point of sale and in-store aisles. OnQ Group Limited is the parent company of Bill Express Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 10, 2008, Bill Express went into administration with AUD180 million in debts after a subsidiary of Saudi-based Al Othman Group withdrew its proposal for the recapitalization and restructuring of the company. The proposal was to include a substantial capital injection and new bank guarantees combined with a restructuring of the existing liabilities of the company. In addition, the Board and management of the company were to be substantially restructured. ========= C H I N A ========= CHINA FRUITS: Lake & Associates Raises Going Concern Doubt ---------------------------------------------------------- China Fruits Corp. filed on March 30, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Lake & Associates CPA's LLC, in Schaumburg, Ill., expressed substantial doubt about China Fruits' ability to continue as a going concern. The independent auditors noted that the Company has suffered accumulated deficit and negative cash flow from operations. The Company reported a net loss of $376,002 on $3.5 million of revenues for 2011, compared with a net loss of $347,241 on $1.8 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $6.0 million in total assets, $3.7 million in total liabilities, and stockholders' equity of $2.3 million. A copy of the Form 10-K is available for free at: http://is.gd/6QnOKh Located in Nan Feng County, Jiang Xi Province, China, China Fruits Corp. is principally engaged in manufacturing, trading and distributing fresh tangerine and other fresh fruits in the PRC. ================ H O N G K O N G ================ MARINE MANNING: Final Meetings Set for April 30 ----------------------------------------------- Creditors and members of Marine Manning Services Limited will hold their final meetings on April 30, 2012, at 11:30 a.m., at the office of FTI Consulting (Hong Kong) Limited, Level 22, The Center, at 99 Queen's Road Central, Central, in Hong Kong. At the meeting, Fok Hei Yu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MAX EVER: Members' Final Meeting Set for April 30 ------------------------------------------------- Members of Max Ever Holdings Limited will hold their final meeting on April 30, 2012, at 9:30 a.m., at Rooms 1901-2, Park-In Commercial Centre, 56 Dundas Street, in Kowloon. 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. MINGO (ASIA): Members' Final General Meeting Set for April 30 ------------------------------------------------------------- Members of Mingo (Asia) Limited will hold their final general meeting on April 30, 2012, at 6/F, Greenwich Centre, 260 King's Road, North Point, in Hong Kong. At the meeting, Ng Kin Yung Tony, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA: Annual Meetings Slated for April 24 ---------------------------------------------- Members and creditors of The New China Hong Kong Capital Limited will hold their annual meetings on April 24, 2012, at 9:00 a.m., and 10:00 a.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK: Annual Meetings Slated for April 24 ------------------------------------------------- Members and creditors of The New China Hong Kong Finance Limited will hold their annual meetings on April 24, 2012, at 9:30 a.m., and 10:30 a.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK DEVELOPMENT: Annual Meetings Slated for April 24 ------------------------------------------------------------- Members and creditors of The New China Hong Kong Development Limited will hold their annual meetings on April 24, 2012, at 2:00 p.m., and 2:30 p.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK ENTERPRISES: Annual Meetings Slated for April 24 ------------------------------------------------------------- Members and creditors of The New China Hong Kong Enterprises Limited will hold their annual meetings on April 24, 2012, at 12:00 p.m., and 12:30 p.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK ESTATE: Annual Meetings Slated for April 24 -------------------------------------------------------- Members and creditors of The New China Hong Kong Estate Limited will hold their annual meetings on April 24, 2012, at 5:00 p.m., and 5:30 p.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK GROUP: Annual Meetings Slated for April 24 ------------------------------------------------------- Members and creditors of The New China Hong Kong Group Limited will hold their annual meetings on April 24, 2012, at 11:00 a.m., and 11:30 a.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK INDUSTRIAL: Annual Meetings Slated for April 24 ------------------------------------------------------------ Members and creditors of The New China Hong Kong Industrial Limited will hold their annual meetings on April 24, 2012, at 2:00 p.m., and 2:30 p.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK TRADING: Annual Meetings Slated for April 24 --------------------------------------------------------- Members and creditors of The New China Hong Kong Trading Limited will hold their annual meetings on April 24, 2012, at 4:00 p.m., and 4:30 p.m., respectively at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SINCE-TECH INDUSTRIAL: Creditors' Proofs of Debt Due April 27 ------------------------------------------------------------- Creditors of Since-Tech Industrial Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 27, 2012, to be included in the company's dividend distribution. The company's liquidator is: Au Wai Keung 25/F, Tern Centre Tower I 237 Queen's Rood Central, Hong Kong SINO TREND: Creditors' Proofs of Debt Due April 13 -------------------------------------------------- Creditors of Sino Trend Hydro Power Investment Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 13, 2012, to be included in the company's dividend distribution. The company's liquidator is: Mat Ng c/o JLA Asia Limited 20/F, Henley Building 5 Queen's Road Central, Hong Kong TWILIGHT TRADING: Members' Final General Meeting Set for May 2 -------------------------------------------------------------- Members of Twilight Trading Company Limited will hold their final general meeting on May 2, 2012, at 9:00 a.m., at Room 1601, wing On Centre, 111 Connaught Road Central, in Hong Kong. At the meeting, Suresh Lachman Narain, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. UNIQUE CONCEPT: Members' Final Meeting Set for May 4 ---------------------------------------------------- Members of Unique Concept Limited will hold their final meeting on May 4, 2012, at 9:00 a.m., at Unit D, 12th Floor, Seabright Plaza, at 9-23 Shell Street, in Hong Kong. At the meeting, Chan Sek Kwan Rays, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WON NAVIGATION: Members' Final Meeting Set for May 2 ---------------------------------------------------- Members of Won Navigation Company Limited will hold their final general meeting on May 2, 2012, at 11:00 a.m., at Room 2105, 21/F, Office Tower, Langham Place, 8 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Man Yun Wah, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. YEN NAVIGATION: Members' Final Meeting Set for May 2 ---------------------------------------------------- Members of Yen Navigation Company Limited will hold their final meeting on May 2, 2012, at 11:00 a.m., at Room 2105, 21/F, Office Tower, Langham Place, at 8 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Man Yun Wah, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. YORK RISE: Members' Final Meeting Set for May 4 ----------------------------------------------- Members of York Rise Limited will hold their final meeting on May 4, 2012, at 10:00 a.m., at Unit D, 12th Floor, Seabright Plaza, at 9-23 Shell Street, in Hong Kong. At the meeting, Chan Sek Kwan Rays, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ZEGNA INFORMATION: Li and Lee Step Down as Liquidators ------------------------------------------------------ Li Cheuk Wai and Lee Wing Hang stepped down as liquidators of Zegna Information Systems Limited on March 16, 2012. ========= I N D I A ========= A. S. CARRIERS: Delay in Debt Payment Cues CRISIL Junk Ratings -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of A. S. Carriers Pvt Ltd to 'CRISIL D' from 'CRISIL B+/Stable'. The downgrade reflects instances of delay by ASC in servicing its debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 1146.7 CRISIL D Proposed Term Loan 554.8 CRISIL D ASC also has a weak financial risk profile, marked by high gearing and weak debt protection metrics, and continued competitive pressure on its rental income. These rating weaknesses are partially offset by ASC's established market position in the domestic organized warehousing business and well- established clientele. About A. S. Carriers ASC was established in 1993. Till 2006-07 (refers to financial year, April 1 to March 31), the company carried out clearing and forwarding services for Hindustan Unilever Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+'). In 2007-08, L&W Holdings Ltd bought 49 per cent of ASC's equity shares from ASC's promoters. ASC is currently in the business of constructing and letting out industrial warehouses (based on lease rental discounting). ASC has warehouse properties in Bengaluru (Karnataka), Hosur, and Chennai (both in Tamil Nadu), with a combined storage space of 1.35 million square feet (sq ft) and a land bank of 0.06 million (sq ft). The group companies of ASC are AS Cargo Pvt Ltd, Punit Reach Logistics Pvt Ltd, Reach Logistics Pvt Ltd, and three more non- operational companies. ASC owns 57.5 per cent equity stake in Satvva Infrastructure Pvt Ltd (Satvva Infra) and the remaining shares are owned by Satvva Developers Pvt Ltd and an individual. Satvva Infra, which is in the same line of business as ASC, bought a 29-acre plot near Hyderabad (Andhra Pradesh) for construction of a warehouse. For 2010-11, ASC reported a profit after tax (PAT) of INR61.3 million on net sales of INR204.3 million, as against a PAT of INR45.3 million on net sales of INR171.5 million for 2009-10. BAJAJ STEELS: CRISIL Assigns 'CRISIL B+' Rating to INR130MM Loans ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Bajaj Steels and Industries Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable Proposed Long-Term 30 CRISIL B+/Stable Bank Loan Facility The rating reflects BSIL's modest scale of operations and moderate financial risk profile, marked by low networth levels, and subdued debt protection measures. The rating also factors in the susceptibility of the company's profitability margins to volatility in raw material prices. These rating weaknesses are partially offset by the extensive experience of BSIL's promoters in the steel industry. Outlook: Stable CRISIL believes that BSIL will benefit over the medium term from its established customer relationships and promoters' extensive industry experience. The outlook may be revised to 'Positive' in case the company reports higher-than-expected revenues, while maintaining or improving its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' in case there is significant decline in BSIL's revenues or profitability or if the company undertakes any debt-funded capital expenditure programme, resulting in weakening of its financial risk profile. About Bajaj Steels Incorporated in 1972, BSIL manufactures stainless steel sheets, which are used in manufacturing utensils and other kitchenware. The company's manufacturing facility is located in Jalaun (Uttar Pradesh) and has capacity of 2000 tonnes per annum. BSIL is owned and managed by Mr. Praveen Agarwal and his relatives, Mr. Rahul Sood and Mr. Pradeep Tayal. BSIL reported a profit after tax (PAT) of INR0.67 million on net sales of INR 245.4 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR 2.32 million on net sales of INR 257.1 million for 2009-10. EMPIRE SPICES: CRISIL Places 'CRISIL BB-' on INR110MM Loans ----------------------------------------------------------- CRISIL's rating on the bank facilities of Empire Spices and Foods Ltd continue to reflect the benefits that the company derives from its promoters' extensive experience in the spices industry and the established market position of its Rambandhu brand name in Maharashtra. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70.0 CRISIL BB-/Stable Term Loan 20.0 CRISIL BB-/Stable Proposed Long-Term 20.0 CRISIL BB-/Stable Bank Loan Facility These rating strengths are partially offset by the company's weak financial risk profile, marked by a small net worth, a high gearing, and weak debt protection metrics, and modest scale of operations with high geographical concentration. Outlook: Stable CRISIL believes that ESFL will continue to benefit over the medium term from the established market position of its Rambandhu brand name in the Maharashtra spices market. The outlook may be revised to 'Positive' if the company significantly improves its financial risk profile, most likely driven by higher-than- expected cash accruals or equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if ESFL undertakes a large, debt-funded capital expenditure (capex) programme, or if its profitability declines because of volatility in raw material prices. Update In 2010-11 (refers to financial year, April 1 to March 31), ESFL registered sales of INR600 million at an operating profitability of 5.3 per cent; the operating margin was lower than 6.2 per cent in 2009-10 because of volatility in raw material prices. For the nine months ended December 31, 2011, it has booked sales of INR460 million at an operating margin of 7.2 per cent and is expected to record revenues of about INR720 million in 2011-12, registering healthy growth of about 20 per cent. ESFL's operations are moderately working capital intensive, marked by high raw material inventory because of its seasonal availability; its gross current days stood at 107 as on March 31, 2011 and are expected to remain at similar levels over the medium term. ESFL's gearing was high at 1.9 times as on March 31, 2011, and is expected to remain high over the medium term as a result of successive debt-funded capex and high reliance on debt to fund working capital requirements. Also, the company's debt protection metrics remain weak because of low profitability. ESFL's liquidity is stretched marked by high utilization of bank limits, averaging at 95 per cent, for the 12 months through December 2011. About Empire Spices ESFL, a closely held public limited company, is promoted by the Nasik (Maharashtra)-based Rathi family. The company manufactures unblended spices such as chili powder, turmeric powder, and coriander powder, and blended spices such as garam masala, and masalas for chicken and mutton, and pav bhaji, biryani, and chhole masala, among others. It also manufactures pickles, papads, and seasonal products such as chivda masala, papad atta, papad masala. The company sells these under the Rambandhu brand. It operates five units in and around Nashik and Aurangabad (both in Maharashtra). ESFL primarily sells these products in Maharashtra, but has recently started selling them in Madhya Pradesh, Gujarat, Orissa, Rajasthan, Chhattisgarh, and some parts of Karnataka and Andhra Pradesh through its network of 35 stockists and 500 distributors. ESFL reported a profit after tax (PAT) of INR8.7 million on net sales of INR600 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR5.7 million on net sales of INR374 million for 2009-10. GAYATRI JHANSI: CRISIL Rates INR3.4-Bil. Loan 'CRISIL BB+(SO)' -------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Gayatri Jhansi Roadways Ltd to 'CRISIL BB+(SO)/Stable' from 'CRISIL A-(SO)/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 3410.0 CRISIL BB+(SO)/Stable The downgrade reflects deterioration in GJRL's liquidity marked by the delay in the receipt of annuities from National Highways Authority of India. The company has received four annuities till date and all the annuities were received with a delay of 30 to 90 days. The delay in the receipt of annuities constrains the company's liquidity and impacts its repayment capabilities. The downgrade also reflects the expected deterioration in GJRL's liquidity over the medium term because of utilization of one full annuity to meet the remaining cost in completing the project. The company has completed road construction of around 44.2 kilometres (km) of the total stretch of 49.7 km. GJRL has received a provisional completion certificate dated June 11, 2010 from NHAI, according to which, the company has to complete the construction within 10 months of the receipt of unencumbered land from NHAI. CRISIL believes that the tight deadlines from NHAI to complete the balance construction and nearly full utilization of one annuity towards cost overrun will constrain the liquidity of the company over the medium term. The rating continues to factor in the annuity-based model and the strong credit risk profile of GJRL's counterparty, NHAI. The rating strength is partially offset by GJRL's exposure to risks related to project completion and the project's low debt service coverage ratio, because of cost escalation. Outlook: Stable CRISIL believes that GJRL's liquidity will remain constrained over the medium term because of the delay in the receipt of annuities from NHAI. The outlook may be revised to 'Positive' in case the company demonstrates a track record of timely receipt of annuity and successful completion of the remaining project, post the receipt of land from NHAI. Conversely, the outlook may be revised to 'Negative' in case GJRL reports significant delay in receipt of annuity payments from NHAI, leading to deterioration in its liquidity. About Gayatri Jhansi GJRL is a special purpose vehicle promoted by Gayatri Projects Ltd (GPL; 51 per cent ownership in GJRL) and Infrastructure Development Finance Company Ltd (IDFC; 49 per cent) to design, develop, construct, operate, and maintain a 49.7-km stretch of road between Jhansi and Lalitpur (Uttar Pradesh), on National Highways-25 and 26 (NH-25 and NH-26) on build-own-operate basis. The project road, named UP2, starts from 88.5 km of the Shivpuri- Jhansi road (NH-25) and ends at 49.7 km of NH-26. The project involves strengthening and widening of the existing two-lane highway, construction of two additional lanes, and provision of service roads in specific urban and semi-urban areas to cater to local traffic. The project was awarded under National Highway Development Project II for an annuity of INR299.5 million, which is payable semi-annually by NHAI to the consortium of IDFC and GPL. NHAI has a 20-year concession agreement with the consortium, with GJRL as the concessionaire, for implementation, operation, and maintenance of the project. The annuity will be deposited in an escrow account and appropriations from the escrow account will be as per the concession agreement. The original project cost was INR4.22 billion, which was revised to INR4.90 billion because of delay in land availability for construction of the road. The project was to be completed by September 2009; however, as on date, around 44.2 km of the stretch has been completed, out of the total stretch of 49.7 km. GREATECH TELECOM: Delay in Loan Payment Cues CRISIL Junk Ratings ---------------------------------------------------------------- CRISIL has downgraded the ratings on bank facilities of Greatech Telecom Technologies Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL B-/Negative/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Cash Credit 30 CRISIL D Letter of Credit 60 CRISIL D Proposed Long-Term 44.1 CRISIL D Bank Loan Facility Term Loan 35.9 CRISIL D The downgrade reflects instances of current delay by Greatech in servicing its term debt; the delays have been caused by Greatech's weak liquidity, on account of cash losses in the fabric business. Greatech has a weak financial risk profile, marked by a small net worth and a high gearing, and a limited track record in the fabric industry. However, the company benefits from the financial support that it receives from its promoters. About Greatech Telecom Greatech was set up in 2004 by Mr. Ramdev Gupta. In 2009-10 (refers to financial year, April 1 to March 31), the company set up a fabric manufacturing unit in Dehradun; the unit caters to the packaging industry. Till 2008-09, Greatech mainly manufactured radio-frequency cables and mobile tower accessories such as connectors, weather-proofing kits, jumpers, surge arrestors, grounding kits, couplers, wall entries, and cable clamps. Greatech reported a loss of INR10 million on net sales of INR177 million in 2010-11, against a PAT of INR1 million on net sales of INR108 million in 2009-10. HYDERABAD EXPRESSWAYS: CRISIL Rates INR2.9-Bil. Loan 'CRISIL BB+' ----------------------------------------------------------------- CRISIL's rating on the bank facilities of Hyderabad Expressways Ltd continues to reflect the benefits that HEL reaps from the annuity-based model of its ongoing road project. This rating strength is partially offset by HEL's limited track record of timely receipt of annuities and exposure to operations- and maintenance-related risks associated with highways. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 2900.0 CRISIL BB+/Stable Outlook: Stable CRISIL believes that HEL will maintain its liquidity, supported by prudent use of available funds as per the escrow mechanism, over the near term. The outlook may be revised to 'Positive' if HEL establishes a track record of timely receipt of annuities over the medium term. Conversely, the outlook may be revised to 'Negative' in case of substantial delays in receipt of future annuities, leading to weakening in HEL's debt servicing ability. About Hyderabad Expressways HEL, a special-purpose vehicle (SPV), was originally promoted by Gayatri Projects Ltd (GPL) and IL&FS Engineering & Construction Company Ltd (IL&FS Engg; formerly, Maytas Infra Ltd [MIL]) in 2006-07 (refers to financial year, April 1 to March 31) to build the 13-kilometre Bongulur to Tukkuguda section of the eight-lane outer ring road in Hyderabad. GPL and MIL originally had a 50:50 joint venture equity stake in the project; the engineering, procurement, and construction contract has been executed by GPL. In July 2009, IL&FS Engg sold part of its share to Terra Projects Pvt Ltd. GPL still holds a 50 per cent stake in HEL, whereas IL&FS Engg owns 42.7 per cent, and TPPL the remaining. The total project cost of INR4.31 billion has been financed through a term loan of INR2.9 billion, grant of INR718 million from Hyderabad Growth Corridor Limited (HGCL), and HEL's promoters' equity. The concession period is for 15 years, up to December 2022. The project entailed development of the section on a build-operate-transfer basis, with an annuity of INR304.9 million payable by HGCL semi-annually. HGCL is an SPV in which Hyderabad Urban Development Authority (now under Hyderabad Metropolitan Development Authority) holds a 74 per cent equity stake, while the remaining equity is owned by Infrastructure Corporation of Andhra Pradesh. The annuity is to be deposited in an escrow account, from which holders of the rated debt will be paid. HEL has completed the project and obtained the commercial operations date certificate in August 2010. KITCHEN GRACE: CRISIL Rates INR97.5MM Loans 'CRISIL B+' ------------------------------------------------------- CRISIL's ratings on the bank facilities of Kitchen Grace (India) Pvt Ltd continue to reflect KGIPL's weak financial risk profile, marked by high gearing and weak debt protection metrics, and its modest scale of operations, marked by customer concentration in its revenue profile. These rating weaknesses are partially offset by the benefits that KGIPL derives from the extensive experience of its promoters in the modular kitchen industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15.0 CRISIL B+/Stable Term Loan 61.0 CRISIL B+/Stable Proposed Long-Term 21.5 CRISIL B+/Stable Bank Loan Facility Letter of Credit 10.0 CRISIL A4 Bank Guarantee 5.0 CRISIL A4 Outlook: Stable CRISIL believes that KGIPL will benefit over the medium term from its promoters' extensive industry experience and steady offtake from Sleek International, its group entity. Also, the promoters are expected to provide timely support to the company to help meet debt repayment obligations and incremental working capital requirements. The outlook may be revised to 'Positive' if KGIPL generates significantly larger-than-expected cash accruals as a result of improved growth in revenues and profitability. Conversely, the outlook may be revised to 'Negative' in case of inadequate funding support from promoters to meet KGIPL's repayment obligations, or if it undertakes any large, debt-funded capital expenditure programme. About Kitchen Grace Set up in 1998 by Mr. Snehal Vasani, KGIPL manufactures factory- fitted modular kitchen and kitchen components under the Kitchen Grace brand name at its manufacturing facility in Pune (Maharashtra). KGIPL derives about 70 per cent of its revenues from its group entity, Sleek International, promoted by the Ahuja family, which procures kitchen components like shutters and carcasses from it. The remaining revenues are derived from its dealer network and residential apartment projects. Currently, the Ahuja family holds 67 per cent of the company's equity shares, while the remainder is held by Mr. Snehal Vasani and relatives. KGIPL reported a net loss of INR14.9 million on net sales of INR52.4 million for 2010-11 (refers to financial year, April 1 to March 31), against a net profit of INR6.8 million on net sales of INR52.9 million for 2009-10. PRITIKA AUTOCAST: CRISIL Rates INR199.1MM Loans 'CRISIL BB-' ------------------------------------------------------------ CRISIL has upgraded its ratings on the bank facilities of Pritika Autocast Private Limited to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL A4+ Cash Credit 120 CRISIL BB-/Stable Letter of Credit 10 CRISIL A4+ Term Loan 79.1 CRISIL BB-/Stable The ratings upgrade reflect Pritika Group's better-than-expected ramp up in operations while sustaining its healthy profitability, following the completion of capacity expansion programmes in PAPL and Nibber Castings Private Ltd (NCPL; part of Pritika Group). CRISIL believes that Pritika group will continue to record a healthy growth rate over the medium term on account of its already completed capacity expansions in PAPL and NCPL and planned capacity expansion in Pritika Industries Private Limited (PIPL; part of Pritika Group) supported by improving demand from domestic original equipment manufacturers (OEMs). The ratings continue to reflect Pritika Group's healthy operating margins, on account of group's integrated operations and the tax benefits it enjoys in Bathri (Himachal Pradesh), and promoters' extensive experience in the industry and established relations with domestic OEMs. These rating strengths are partially offset by Pritika group's weak financial risk profile marked by high gearing and weak debt protection metrics, large working capital requirements and customer concentration in its revenue profile. For arriving at its ratings, CRISIL has consolidated the business and financial risk profiles of PAPL and its group entities, PIPL, and NCPL, together referred to as Pritika Group. This is because the companies are under common management and in the same line of business. These entities also share significant operational and financial linkages. Outlook: Stable CRISIL believes that the Pritika group will benefit from its comfortable business risk profile on account of promoters' extensive industry experience and increased capacities over the medium term. The outlook may be revised to 'Positive' in case of improvement in the group's capital structure, most likely caused by significant fresh equity infusion. Conversely, the outlook may be revised to 'Negative' in case the group undertakes a larger- than-expected debt-funded capital expenditure programme or if its operating margin declines thus impacting its financial risk profile and liquidity. About the Group PAPL was incorporated in 2005-06 (refers to financial year, April 1 to March 31) by Mr. Raminder Singh Nibber and his son, Mr. Harpreet Singh Nibber. The promoters have extensive experience in the castings industry through PIPL and NCPL. The company manufactures automotive and tractor components at its facility in Bathri. The company had an installed capacity of 1200 tonnes per month (tpm), which has been increased by setting up Unit II, with an installed capacity of 500 tpm during 2010-11, on account of healthy demand prospects from large original equipment manufacturers. The facility at Bathri is an integrated unit, capable of both casting and machining. RAJ KUMAR: CRISIL Assigns 'BB+' Rating to INR322.6MM Loans ---------------------------------------------------------- CRISIL's rating on the bank facilities of Raj Kumar Goel Educational Foundation continues to reflect RKGEF's established track record in the education sector and wide portfolio of educational courses offered in various fields. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 115.0 CRISIL BB+/Stable Cash Credit 85.0 CRISIL BB+/Stable Proposed Long- Term 46.3 CRISIL BB+/Stable Bank Facility Proposed Long-Term 76.3 CRISIL BB+/Stable Bank Facility These rating strengths are partially offset by the trust's small scale of operations, average financial risk profile constrained by exposure to other group trusts, and susceptibility to adverse regulatory changes and intense competition in the education sector. Outlook: Stable CRISIL believes that RKGEF will benefit from the healthy cash accruals that it is expected to generate over the medium term on the back of the wide range of courses it offers. The outlook may be revised to 'Positive' if the trust increases its operating income by increasing its intake capacity, and consequently, its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if RKGEF undertakes a larger-than- expected debt-funded capital expenditure programme, if demand for its courses declines, or in case of any unfavorable regulatory changes. Update For 2010-11 (refers to financial year, April 1 to March 31), RKGEF has achieved growth of more than 20 per cent on its operating income at INR237.6 million, from that in the previous year, largely in line with CRISIL's expectations . However, RKGEF's operating margin was significantly higher than CRISIL's expectations mainly because the trust deferred the implementation of the sixth pay commission in 2010-11, while the same has been implemented in 2011-12. With this, the total employee cost is expected to increase by more than 30 per cent. RKGEF has also added 120 seats in Raj Kumar Goel Institute of Technology (RKGIT) during 2011-12 and plans to increase 60 more seats for its evening courses in the coming academic year. With this expected addition of seats over the near to medium term, CRISIL believes the trust's operating revenues will grow at a moderate growth of 10 to 15 per while the operating margins are expected to decline slightly, on account of increase in the employee cost post implementation of the sixth pay commission, over the medium term. RKGEF is currently undertaking a capital expenditure (capex) programme involving the construction of an auditorium in its Ghaziabad (Uttar Pradesh) campus with a total cost outlay of INR100 million, which is expected to be funded by internal resources only. The construction work is around 30 per cent complete as on date and the same is expected to get completed by June 2012. RKGEF has adequate liquidity backed by its free cash accruals, moderate bank limit utilization, and healthy unencumbered cash and bank balance as on March 31, 2011. RKGEF's gearing has significantly improved to 0.86 times as on March 31, 2011 from its peak gearing in the past, at 2.1 times as on March 31, 2008. This is largely because of healthy cash accruals generated by the trust during the corresponding period, leading to increase in the net worth of the trust. RKGEF has fully repaid its outstanding term loan of INR11.4 million as on March 31, 2010, during 2010- 11; currently, the trust has no fixed repayment obligation. CRISIL believes that RKGEF's gearing will improve to around 0.8 times over the medium term from its current levels because of the absence of any debt-funded capex plans of the trust. RKGEF reported a profit after tax (PAT) of INR50.2 million on an operating income of INR237.6 million for 2010-11, against a PAT of INR19.5 million on an operating income of INR218.0 million for 2009-10. RKGEF was set up in 1999 by the late Mr. Raj Kumar Goel. The trust established RKGIT in Ghaziabad in September 2000. RKGIT is recognized by All India Council for Technical Education, Ministry of Human Resource Development, Government of India, and is affiliated to Uttar Pradesh Technical University, Lucknow. RKGIT offers bachelor degree courses in technology and pharmaceuticals science, and master degree courses in computer application, business administration, and pharmaceuticals science. Currently, the institute has student strength of more than 3000, with nearly full occupancy for its combined offering of 980 seats. In 2003, the trust established Lala Mangat Ram Maha Vidyalaya (LMRM), which offers only one course, namely, bachelor of education. This course by LMRM is approved by the National Council for Teacher Education and is affiliated to CCS University, Meerut (Uttar Pradesh). RUBICON INSPECTION: CRISIL Rates INR50MM Loans 'CRISIL B' --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/ CRISIL A4' ratings to the bank facilities of Rubicon Inspection Systems Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 20 CRISIL B/Stable Cash Credit 30 CRISIL B/Stable Bank Guarantee 20 CRISIL A4 The ratings reflect Rubicon's small scale of operations, limited revenue diversity, working capital intensive operations, and weak financial risk profile marked by small net worth and high gearing. These rating weaknesses are partially offset by the extensive industry experience of Rubicon's promoters, established relations with customers, and its healthy profitability leading to comfortable debt protection metrics. Outlook: Stable CRISIL believes that Rubicon will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case the Rubicon significantly scales up its operations supported by receipt of new orders, while maintaining its healthy profitability, leading to larger- than-expected cash accruals and subsequent improvement in liquidity. Conversely, the outlook may be revised to 'Negative' in case Rubicon's financial risk profile, particularly liquidity, deteriorates further because of larger-than-expected working capital requirements, lower cash accruals, or if the company undertakes any larger-than-expected debt-funded capital expenditure programme. About Rubicon Inspection Based in Delhi, and promoted by Mr. Inderjeet Singh in 2007, Rubicon undertakes service contracts for drain maintenance, CCTV inspection of storm water drains/sewer lines, trenchless laying of gravity pipes, and underground earthwork. The promoter has been in the same business since 1997 through his proprietorship firm "Rubicon Inspection Systems' which was reconstituted as Rubicon during 2007. Rubicon has a fleet of truck-mounted machines and excavators, which are used to carry out the jobs it undertakes. The company's main customers include municipal corporations of Delhi, Ahmedabad, and Vadodara (both in Gujarat), Delhi Metro Rail Corporation, and other government entities and boards. Rubicon reported a profit after tax (PAT) of INR3.6 million on net sales of INR112.6 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR2.4 million on net sales of INR95.8 million for 2009-10. SEVEN SEAS: CRISIL Assigns 'CRISIL BB' Rating to INR130.3MM Loans ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to the bank facilities of Seven Seas Distillery Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 10.3 CRISIL BB/Stable Proposed Term Loan 15 CRISIL BB/Stable Cash Credit 105 CRISIL BB/Stable Bank Guarantee 1.2 CRISIL A4+ The ratings reflect SSDPL's moderate financial risk profile, marked by low gearing and comfortable debt protection metrics and the promoters' extensive industry experience in the distillery industry. These rating strengths are partially offset by SSDPL's modest scale of operations and its working capital intensive nature of operations. The rating also factors in exposure to intense competition and susceptibility to regulatory risks in the Indian-made foreign liquor (IMFL) sector. Outlook: Stable CRISIL believes that SSDPL will benefit over the medium term from the healthy demand for its products and its healthy capital structure. The outlook may be revised to 'Positive' if the company scales up its operations and profitability on a sustainable basis, while maintaining its capital structure. Conversely, the outlook may be revised to 'Negative' if any regulatory changes adversely impact the company's revenues and margins or if the company undertakes a larger-than-expected debt- funded capital expenditure programme, leading to weakening in its financial risk profile, or if the company makes significant investments in unrelated businesses. About Seven Seas Based in Trichur (Kerala), SSDPL was incorporated in 1981 and was taken over by Mr. Vittal Mallaya after a few years of its operations. In 1991, the company was taken over by Mr. Shivkumar Reddy. SSDPL is engaged in the bottling of IMFL in Kerala for United Spirits Ltd. SSDPL has a licensed capacity 4.2 million cases per annum which is being utilized at around 70 per cent. Apart SSDPL, the promoters also manage Mandovi Distillery Ltd, Goa, Pearl Distillery Ltd, Ongole (Andhra Pradesh [AP]; rated 'CRISIL BB-/Stable'), and Esveear Distillery Ltd, Tirupatti [AP]. SSDPL reported a net loss of INR19.0 million on net sales of INR1.0 billion for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR7.8 million on net sales of INR720.2 million for 2009-10. SHRI RAMANA: CRISIL Rates INR47.5MM Cash Credit 'CRISIL B' ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Shri Ramana Heavy Engineering Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 47.5 CRISIL B/Stable Bank Guarantee 17.5 CRISIL A4 Letter of Credit 20.0 CRISIL A4 The ratings reflect SRHEPL's weak financial risk profile, marked by high gearing, large working capital requirements, vulnerability to cyclical trends in end-user industry, and high degree of revenue concentration. These rating weaknesses are partially offset by the extensive industry experience of SRHEPL's promoters and established clientele. Outlook: Stable CRISIL believes that SRHEPL will benefit over the medium term from its promoters' extensive experience in manufacturing bulk material handling system and established clientele. The outlook may be revised to 'Positive' in case of a significant improvement in liquidity on account of moderation in overall working capital requirements and generation of higher-than-expected net cash accruals, resulting in overall improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' upon decline in profitability margins, liquidity, and debt-funded capital expenditure. About Shri Ramana Based in Chennai (Tamil Nadu), SRHEPL was incorporated in 2005 and manufactures and supplies bulk material handling systems. The company started as a partnership firm in 2000, but was reconstituted as a private limited company in 2005. Mr. H Ramalingam and his wife jointly hold ownership of the company in the ratio of 2:1. SRHEPL reported a profit after tax (PAT) of INR3.5 million on net sales of INR159.5 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR 2 million on net sales of INR 113.1 million for 2009-10. SONALI AUTOS: CRISIL Assigns 'CRISIL BB-' Rating on INR325MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Sonali Autos Pvt Ltd continue to reflect SAPL's moderate business risk profile backed by comfortable market position in its area of operations. This rating strength is partially offset by SAPL's weak financial risk profile, marked by high total outside liabilities to tangible net worth ratio and weak debt protection metrics. The ratings also factor in the pressure on the company's margins as a result of competitive pressures. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 325.00 CRISIL BB-/Stable Bank Guarantee 20.00 CRISIL A4+ Proposed Long-Term 55.00 CRISIL BB-/Stable Bank Loan Facility Outlook: Stable CRISIL believes that SAPL will benefit over the medium term from its strong regional position in the auto dealership segment. The outlook may be revised to 'Positive' if the company's operating margin and debt protection metrics improve substantially. Conversely, the outlook may be revised to Negative' if the company undertakes large debt to fund its capex, thereby weakening its financial risk profile. About Sonali Autos Set up in 2007, SAPL deals in the entire range of utility vehicles manufactured by Mahindra and Mahindra. SAPL also sells spares and accessories of M&M's vehicles, and also provides services of its vehicles in Bihar. The company's promoters have experience of more than two decades in the automobile dealership business. SAPL reported a profit after tax (PAT) of INR10 million on net sales of INR2287 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR7 million on net sales of INR1903 million for 2009-10. SREE LAKSHMI: CRISIL Assigns 'CRISIL BB-' Rating to INR30MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Sree Lakshmi Agencies. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL BB-/Stable Letter of Credit 60 CRISIL A4+ The ratings reflect SLA's established relationship with its sole principal, ITC Ltd (ITC; rated 'CRISIL AAA/Stable/CRISIL A1+') and extensive industry experience of SLA's promoters in the marketing and distribution business. These rating strengths are partially offset by SLA's below-average financial risk profile marked by small net worth, exposure to risks related to significant principal concentration in the distribution segment and its tender-driven business in the pulses segment. Outlook: Stable CRISIL believes that SLA will continue to benefit over the medium term from its established position as the exclusive distributor of ITC's products in the Tiruvallur region (Tamil Nadu). The outlook may be revised to 'Positive' in case of a significant and sustained increase in SLA's sales and operating margin, leading to improved financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm undertakes larger-than- expected, debt-funded, capital expenditure (capex) programme, its working capital management deteriorates, or if the partners at the firm withdraw sizeable funds from the firm, thereby adversely affecting its financial risk profile. About Sree Lakshmi SLA was established in 1993 as a partnership firm by Mrs. T Jaypal and her sister, Mrs. Selva Sundari. SLA is the exclusive distributor of ITC's cigarettes and fast-moving consumer goods in the Tiruvallur region, catering to 400 wholesalers and retail units. The firm also started processing, and trading in, pulses, particularly urad dal, since 2009-10 (refers to financial year, April 1 to March 31). SLA is currently being managed by Mr. R Rajkumar and Mr. R Ramesh Kumar (sons of Mrs. Selva Sundari). SLA reported, on provisional basis, a profit after tax (PAT) of INR3 million on net sales of INR600 million for 2011-12 (refers to financial year, April 1 to March 31); it reported a PAT of INR1.3 million on net sales of INR299 million for 2010-11. SYNERGY TELECOM: CRISIL Cuts Rating on INR520MM Loans to 'BB+' -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Synergy Telecommunications to 'CRISIL BB+/Stable/CRISIL A4+' from 'CRISIL BBB+/Stable/CRISIL A2+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 500 CRISIL BB+/Stable Proposed Long-Term 10 CRISIL BB+/Stable Bank Loan Facility 10 CRISIL BB+/Stable Proposed Long-Term Letter of Credit 40 CRISIL A4+ The rating downgrade reflects significant deterioration in Synergy's financial risk profile marked by reduction in net worth, mainly because of large capital withdrawals by the firm's partners over the past three years. Synergy's net worth has reduced to INR340 million expected as on March 31, 2012 from INR1.32 billion as on March 31, 2009. Furthermore, the firm has increased its reliance on working capital debt funding over the past two years, resulting in an increase in its gearing to more than 1.5 times expected as on March 31, 2012, from the earlier levels of less than 0.3 times. The large capital withdrawals have also weakened Synergy's liquidity, evident from full utilization of the firm's working capital bank limits. The rating downgrade also reflects deterioration in Synergy's business risk profile because of reduction in the number of new telecommunication (telecom) towers rolled out by its customers, as reflected in the decline in the firm's sales over the past three years, mainly because of increased infrastructure sharing by telecom service providers. CRISIL believes that the scale up in Synergy's revenues will remain muted over the medium term because of limited demand prospects in the passive telecom infrastructure industry. The ratings continue to reflect Synergy's moderate financial risk profile marked by moderate net worth, increasing gearing, and moderate debt protection metrics. The ratings also reflect the benefits that the firm derives from the extensive experience of its promoters in the telecom services industry. These rating strengths are partially offset by Synergy's constrained financial flexibility because of large capital withdrawal by partners, average demand prospects for the firm's products, and declining operating margin because of competitive pressures. Outlook: Stable CRISIL believes that Synergy will continue to benefit from its promoters' extensive experience in the telecom industry over the medium term. The outlook may be revised to 'Positive' if the firm reports higher-than-expected increase in revenues, leading to substantial improvement in its business risk profile. Conversely, the outlook may be revised to 'Negative' in case of more-than- expected withdrawals of capital by the partners, and/or reduction in cash flows on account of pressure on sales and/or operating margin, resulting in deterioration in Synergy's financial risk profile. About Synergy Telecommunications Synergy, set up in 2006, is a partnership firm that provides passive infrastructure services to various telecom operators. The firm's day-to-day operations are managed by its promoter Mr. Harpal Singh; his wife, Mrs. Rachana Singh, looks after product innovation and technology. Synergy's clientele includes major tower operators, such as Indus Towers Ltd (rated 'CRISIL AA/Stable/CRISIL A1+'), Bharti Infratel Ltd, Quippo Infrastructure Equipment Ltd, Tata Teleservices Ltd, and Aircel Ltd. ========= J A P A N ========= AIJ INVESTMENT: Diet to Summon AIJ President, Three Others ---------------------------------------------------------- Kyodo News reports that a Diet committee decided April 4 to summon AIJ Investment Advisors Co. President Kazuhiko Asakawa and three others to testify as sworn witnesses on April 13 over the asset management firm's pension asset loss scandal. The Lower House Financial Affairs Committee has concluded that unsworn testimony may not be an effective way to investigate the AIJ scandal, a committee source told Kyodo. Sworn witnesses can be punished for false testimony or declining to show up at the Diet without a good reason, the report notes. Kyodo says Mr. Asakawa, as an unsworn witness, has told Diet meetings that AIJ used false investment return records in seeking to persuade pension funds to entrust assets with the firm while in fact accumulating investment losses. The other three to be summoned include Hideaki Nishimura, president of ITM Securities Co. who solicited pension funds to entrust assets with AIJ. ITM Securities is under AIJ's control, according to Kyodo. The second is Isao Ishiyama, a former bureaucrat who now runs a pension fund consultancy and is believed to have introduced AIJ to pension funds, the report says. The third is AIJ director Shigeko Takahashi, who declined to give unsworn Diet testimony for health reasons, adds Kyodo. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 27, 2012, Bloomberg News said the Financial Services Agency on Feb. 24 ordered AIJ Investment to halt its business after finding the asset manager's clients funds of about JPY183.2 billion may be "adversely affected" and started a probe into the 263 asset managers operating in Japan. As recommended by the Securities and Exchange Surveillance Commission, the FSA on March 23 stripped AIJ of its investment adviser registration and ordered ITM Securities Co., which is effectively under AIJ's control, to suspend operations for six months. Tokyo-based asset-management firm AIJ Investment Advisors Co., led by Kazuhiko Asakawa, was established in April 1989, and had 120 clients including pension plans with JPY183.2 billion in assets as of the end of 2010. It has 12 employees. CORSAIR NO. 2: S&P Puts 'B+' Credit Default Swap Rating on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+srp (sf)' rating on the series 46 credit default swap issued under the Corsair (Jersey) No. 2 Ltd. collateralized debt obligation (CDO) transaction on CreditWatch with positive implications. "At the same time, we placed our 'BB- (sf)' rating on the series 58 fixed rate credit-linked loan issued under the same transaction on CreditWatch with negative implications," S&P said. "During our monthly run of transactions on version 5.1 of our CDO evaluator, the tranche placed on CreditWatch positive had synthetic rated overcollateralization (SROC) levels in excess of 100%, as well as an SROC cushion at a higher rating than the current rating that is required for an upgrade, as of March 31, 2012. Also, the tranche placed on CreditWatch negative had an SROC level that was less than 100% at the current rating as of the same date," S&P said. "For all the transactions that we ran on our CDO evaluator, we applied the top obligor test SROCs for all rating levels and the industry test SROCs for CDO tranches rated 'AAA' to 'AA-', as well as the results of the Monte Carlo default simulation," S&P said. "By the end of the month, we intend to review the tranches listed below with ratings that we placed on CreditWatch positive or negative, along with any other tranches with ratings that are presently on CreditWatch negative or positive, in accordance with our current CDO criteria," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at http://standardandpoorsdisclosure-17g7.com RATING PLACED ON CREDITWATCH POSITIVE Corsair (Jersey) No. 2 Ltd. Series 46 credit default swap To From Notional amount B+srp (sf)/Watch Pos B+srp (sf) JPY3.0 bil. RATING PLACED ON CREDITWATCH NEGATIVE Corsair (Jersey) No. 2 Ltd. Fixed rate credit-linked loan series 58 To From Issue amount BB- (sf)/Watch Neg BB- (sf) JPY3.0 bil. OLYMPUS CORP: Investors Protest Nambu's Appointment as CFO ---------------------------------------------------------- The Tokyo Times reports that investors of troubled Olympus Corp. have protested the appointment of a former executive involved in the financial fraud scandal as chief financial officer at the company. Akihiro Nambu was promoted in the top financial position at Olympus only months after some of the largest shareholders of the company had asked him to resign in connection to the $1.7 billion accounting fraud, the report relates. The Tokyo Times relates that according to a third-party committee independent report on Olympus, the firm "should remove the seat of disease centered on the old management and literally renew itself in heart and mind," if it wants to regain public and investor trust. Ethan Devine, portfolio manager at New York-based Indus Capital, which holds just under 5% of Olympus, said the appointing of Nambu as the most senior financial officer, however, "is so completely at odds with the third-party committee's recommendations that I find it hard to believe." According to the report, the committee also said that "electing presidents' friends or people with connection from business partners as outside directors or outside auditors should be discontinued, and those who are fully suitable as outside executives should be elected." Nambu had signed a financial statement which put the net worth of a British company acquired by Olympus at Y69.6 billion, when it was actually Y37.5 billion, The Tokyo Times citing reports from Japanese press. About Olympus Corp. Based in Japan, Olympus Corporation (TYO:7733) -- http://www.olympus-global.com/-- manufactures and sells medical products, life and industrial products, imaging products, information communication products and other products. As of March 31, 2011, the Company has 188 subsidiaries and 11 associated companies. ==================== N E W Z E A L A N D ==================== 4RF COMM: In Receivership; Fails to Reach Deal With Noteholders --------------------------------------------------------------- BusinessDesk reports that 4RF Communications Ltd has been placed in receivership after it failed to reach agreement on restructuring some NZ$5.5 million of convertible notes. John Fisk of PricewaterhouseCoopers has been appointed receiver, according to a notice filed with the Companies Office last week. Mr. Fisk told BusinessDesk the operating business of 4RF has been placed in a separate vehicle and is continuing in business while the merits of a full sale of the business or capital raising are considered. BusinessDesk says detail of holders of the convertible notes weren't immediately available. However, BusinessDesk relates, the notes to the 2010 accounts show key shareholders agreed to subscribe to the notes under a deed effective March 2008. The notes matured on January 15 this year, giving holders the option to redeem or convert them to ordinary shares. "The company could not reach agreement on restructuring with some of the noteholders so the board decided it was in its best interests to place it into receivership," the report quotes Mr. Fisk as saying. Some of the noteholders "were not prepared to convert to equity". "We've put the business operations into a new vehicle which will continue as normal while we go through a full sale or capital raising process," Mr. Fisk, as cited by BusinessDesk, said. "The business is now trading very well" and receivership was seen as the best was to preserve its value, Mr. Fisk told BusinessDesk. The company has been contacting creditors, suppliers and customers about the receivership. 4RF Communications, Ltd. -- http://www.4rf.com/-- designs and manufactures point to point microwave radio systems in New Zealand and internationally. Its products include Aprisa XE digital access radio, a point-to-point linking solution; and Aprisa XS expansion shelf. BRIDGECORP LTD: Three Directors Found Guilty -------------------------------------------- BusinessDesk reports that the directors of Bridgecorp Ltd have been found guilty of making untrue statements in offer documents, managing director Rod Petricevic and chief financial officer Rob Roest were remanded in custody. BusinessDesk relates that Judge Geoffrey Venning in the High Court in Auckland on April 5 found Messrs. Petricevic and Roest guilty of all 10 charges of breaching the Securities Act, while director Peter Steigrad was found guilty on six of the 10 charges. Messrs. Petricevic and Roest were also charged under the Crimes Act for making false statements on offer documents with the intent of encouraging people to invest in the finance company and the Companies Act after they knowingly made misleading statements about the company to creditors, according to the report. BusinessDesk notes that Judge Venning rejected Messrs. Petricevic's and Roest's defences they believed the statements were true. "In each case I have found that untrue statements were included in the offer documents , that the offer documents were distributed at the relevant time referred to in the court and that the accused signed or had signed on their behalf the offer documents," Judge Venning said in his judgment. "I have also found that they knew from or shortly after 7 February 2007 that Bridgecorp had missed payments of principal and interest due to investors," Venning said. According to the report, Mr. Petricevic will be sentenced on April 26, while Messrs. Roest and Steigrad will be sentenced on May 18. Petricevic and Roest will remain in custody until then. Steigrad has been remanded on bail. "He had an honest belief that the statements were true during the time the offer documents were distributed," Judge Venning said. "On the counts I have found him not guilty of I have also accepted that at the relevant time Steigrad's belief was a reasonable held one." BusinessDesk says company chairman Bruce Davidson pleaded guilty last year and was sentenced to home detention and community service, and paid NZ$500,000 in reparation. Director Gary Urwin also pleaded guilty and is awaiting sentencing. About Bridgecorp Ltd Based in New Zealand, Bridgecorp Ltd. is a property development and finance company. Bridgecorp was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. Bridgecorp owes around 14,500 investors, which liquidators estimate to approximate NZ$500 million. Bridgecorp's nine Australian companies were also placed into voluntary administration, owing about 100 investors about AUD24 million (NZ$27 million). CAPITAL + MERCHANT: Receivers Win Right to Appeal GST Liability --------------------------------------------------------------- BusinessDesk reports that the receivers for Capital + Merchant Investments have won the right to appeal a High Court judgment that left them personally liable for a tax bill from the sale of five mortgagee properties, though they're obliged to make sure Inland Revenue gets paid. BusinessDesk, citing a March 30 judgment delivered by Judge Douglas White, relates that the Court of Appeal allowed Richard Simpson and Tim Downes of Grant Thornton to appeal a High Court decision that left them personally liable to pay NZ$1.2 million in goods and services tax when they sold five CMI properties through the course of their receivership. Still, says BusinessDesk, Judges Terence Arnold, Ellen France, and White, directed the receivers that they are obliged as receivers to pay the GST. The judgment was published on the Ministry of Justice's website last week. "Messrs. Simpson and Downes, as receivers of CMI, do not at this stage have 'personal liability' for payment to the commissioner of the GST payable by CMI in relation to the five specified mortgagee sales undertaken by CMI," the judgment, as cited by BusinessDesk, said. "No question of the receivers being required to put their hands into their own pockets arises, because for the reasons we have given, the receivers are obliged to account to the commissioner for the GST that was in fact received from the purchasers of the five properties," it said. According to the report, the receivers accepted CMI was liable for the GST, but contended because of its receivership, the tax department ranked behind secured creditor Fortress Credit Corporation and they in their role weren't obliged to pay it. "While the receivers are correct that they have no personal liability for CMI's debts, that does not mean that they are entitled to keep the GST and pass it on to the secured creditor," the judgment, obtained by BusinessDesk, said. "The corollary of the receivers having no liability for CMI's debts is that as agents they cannot have a greater claim to the proceeds of sale than CMI itself." That left the tax department ranking ahead of Fortress in terms of proceeds from the mortgagee sales, BusinessDesk 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 -- tim.downes@nz.gt.com -- 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. NZF MONEY: Receivers to File Action Against NZF Group ----------------------------------------------------- The National Business Review reports that the receivers for NZF Money will file proceedings against parent company NZF Group and its directors over the restructuring of its home loans unit in 2010 and are looking to freeze the firm's assets. NZF Group said the receivers for failed lender NZF Money Grant Graham and Brendon Gibson of KordaMentha will file proceedings against the company and directors as at Oct. 20, 2010. The directors at the time were Richard Waddel, John Callaghan, Mark Thornton, Jeffrey Barkwill, Peter Huljich and Pat Redpath O'Connor. The receivers have also applied to freeze NZF Group's assets, though a hearing date has not been set. The company said it will "rigorously defend" the proceedings, which "relate to an internal restructuring of NZF Homeloans Limited in October 2010 which is alleged to be an insolvent transaction". About NZF Money NZF Money Limited, previously known as New Zealand Finance Limited, has been in operation since 1997. The company provides financial services with its core activity being a diversified range of services including; investment, lending, insurance and mortgage broking. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 23, 2011, BusinessDesk said NZF Money, the deposit-taking subsidiary of NZF Group, was put in receivership in July 2011 after its parent failed to secure short-term funding needed to keep the finance company afloat. The shortfall arose after the Financial Markets Authority forced the company to pull its debenture prospectus which hoped to raise NZ$350 million over the issues around asset quality and liquidity disclosure. The TCR-AP reported on March 23, 2012, that the Serious Fraud Office said that it has commenced a Part II investigation into NZF Group Limited, NZF Money Limited, and their related companies. SFO and the Financial Markets Authority (FMA) together have been assessing a range of allegations relating to the conduct of the group. The primary focus of the SFO assessment relates to alleged related party transactions between members of the group, its directors and officers. The transactions cover a period from 2006 to the present. ********* 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. *** End of Transmission ***