/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120412.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, April 12, 2012, Vol. 15, No. 73 Headlines A U S T R A L I A PULSE PHARMACY: Failed to Keep Proper Records, Administrators Say C H I N A CENTRAL CHINA: SGD Bond Issuance No Impact on Moody's Rating CHINA GLASS: Moody's Revises Outlook on 'B1' CFR to Negative PROVIEW ELECTRONICS: Shenzhen Court Blocks Liquidation Bid SINO-FOREST CORP: Shares Delisted from Toronto Stock Exchange SINO-FOREST CORP: Ernst & Young Resigns as Auditor SINO-FOREST CORP: Receives Enforcement Notice From OSC WINSWAY COKING: Moody's Confirms 'Ba3' CFR; Outlook Negative H O N G K O N G ATLANTIS DEEPWATER: Final Meetings Set for May 10 BRAND SUCCESS: Creditors' Proofs of Debt Due May 7 CHUN PO: Members' and Creditors Meetings Set for April 20 CONFORD HOLDINGS: Placed Under Voluntary Wind-Up Proceedings FLORA INTERNATIONAL: Commences Wind-Up Proceedings IMPERIAL WORLD: Final Meetings Set for May 9 INFRONTIA (H.K.): Members' Final Meeting Set for May 8 INTERTRANS CONSULTING: Members' Final Meeting Set for May 4 JMC R&D: Members' Final Meeting Set for May 7 KENFAIR PUBLICATIONS: Members' Final Meeting Set for May 8 I N D I A A. G. ENTERPRISE: CARE Reaffirms 'BB-' Rating on INR6.5cr Loan BANSIDHAR COTFIBRE: CARE Reaffirms 'B' Rating on INR6cr Loan DARODE JOG: CARE Reaffirms 'BB+' Rating on INR40cr LT Loans GURUKRUPA COTTON: CARE Reaffirms 'B' Rating on INR10cr LT Loan HARMILAP AGRO: ICRA Assigns '[ICRA]B+' Rating to INR11.2cr Loan HYDERABAD AIRPORT: ICRA Reaffirms BB+(SO) Rating to INR72cr Loan IDEA INT'L: Fitch Withdraws 'B-' Rating on INR200-Mil. Loan INCA HAMMOCK: ICRA Reaffirms '[ICRA]BB-' Rating on INR1.88cr Loan INDIAN CONSTRUCTION: ICRA Rates INR2.5cr Cash Credit '[ICRA]B' INDIKA ENERGY: Fitch Revises Outlook on 'B+' IDR to Positive J K INDUSTRIES: CARE Reaffirms 'BB-' Rating on INR4cr LT Loan KJS CEMENT: ICRA Reaffirms '[ICRA]BB+' Rating on INR675cr Loan KPC MEDICAL: CARE Reaffirms 'B+' Rating on INR127.5cr LT Loan MAHAKALESHWAR TOLLWAYS: CARE Cuts INR228.89cr Loan Rating to BB+ M.P. ENTERTAINMENT: ICRA Reaffirms 'B' Rating on INR20cr Loan OSCAR LEATHERS: CARE Cuts Rating on INR5.5cr Loan to 'CARE BB' RITZY INT'L: Fitch Assigns 'B+' National Long-Term Rating SHAH HOUSECON: CARE Reaffirms 'B+' Rating on INR21cr LT Loan SHRAVANRAJ CONSTRUCTIONS: ICRA Reaffirms 'B+' Long-Term Rating SK SYSTEMS: ICRA Cuts Rating on INR5.5cr Loan to '[ICRA]BB' SRC METALICKS: Inadequate Info Cues Fitch to Migrate Ratings TADIKELA SUBBAIAH: ICRA Assigns '[ICRA] B' LT Rating to Loans UMIYA INDUSTRIES: CARE Reaffirms 'CARE B+' Rating on INR7cr Loan XENITIS INFOTECH: Inadequate Info Cues Fitch to Migrate Ratings J A P A N TOKYO ELECTRIC: To Sell 800 Additional Real Estate Properties TOKYO ELECTRIC: Tokyo Becomes Largest TEPCO Shareholder M O N G O L I A GOLOMT BANK: Moody's Assigns 'Ba3' Rating to US Sr. Unsec. Notes N E W Z E A L A N D COMPUTER POWER: WelTec, Whitireia Adopt Computer Power Students HERBERT INSURANCE: Breaches Legislation, Liquidators Say WEST COAST BREWERY: Wind Up Bid Hearing Adjourned Until May 29 V I E T N A M VINASHIN: U.S. Hedge Fund Drops Lawsuit Against Firm X X X X X X X X * Moody's Says Europe Exposure Won't Affect Asian Corp. Ratings - - - - - ================= A U S T R A L I A ================= PULSE PHARMACY: Failed to Keep Proper Records, Administrators Say ----------------------------------------------------------------- Rebecca Urban at The Australian reports that the company behind the debt-laden Pulse pharmacy chain failed to maintain adequate books and records, a preliminary investigation into its collapse has revealed. The Australian relates that administrators appointed to Pulse Pharmacy, which is owned by Melbourne-based horse racing identity Rohan Aujard, have found that the company did not maintain proper management accounts or operate a bank account. The company has also failed to provide other business records, including copies of business activity statements, income tax returns or minutes from any directors' meetings, the report relays. According to The Australian, administrator Grant Thornton, in its latest report to creditors, said the company's management has advised that accounts were not maintained due to the nature of the business, with key transactions relating to lease and financing repayments met by third parties, primarily sub-tenants or pharmacy owners. The Australian says the matter is under further investigation, with an update to be provided to creditors at a meeting scheduled for September. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 14, 2011, SmartCompany said David McEvoy and Daniel Bryant of PPB Advisory were appointed as receivers and managers of Pulse Pharmacy Pty Ltd, the property company behind the Pulse Pharmacy chain, as the National Australia Bank (NAB) is organizing a new financing arrangement. PPB said that the receivership will only affect this entity and not the retail stores, which will continue to trade as normal, according to SmartCompany. Pulse, which holds the leases for approximately 40 pharmacies nationwide that operate under its banner, was then placed into administration on November 8 last year, The Australian discloses. In December 2011, Messrs. McEvoy and Bryant were also appointed as receivers and managers over 12 pharmacies owned by Mr. Aujard. The Australian notes that although the appointments do not extend to the trading entities under the group, several pharmacy stores in Melbourne's eastern suburbs are subject to separate wind-up orders as a result of court applications by drug wholesaler Sigma Pharmaceuticals. Sigma recently booked an AUD8 million doubtful debt charge against the Pulse group, The Australian adds. Pulse Pharmacy -- http://www.pulsepharmacy.com.au/-- operates pharmacy stores across Australia. ========= C H I N A ========= CENTRAL CHINA: SGD Bond Issuance No Impact on Moody's Rating ------------------------------------------------------------ Moody's Investors Service says there is no immediate rating impact to Central China Real Estates Ltd.'s Ba3 corporate family and B1 senior unsecured ratings from its proposed Singapore dollar bond issuance. The ratings outlook remains stable. The proposed bond proceeds will be used to fund property projects, refinance existing debts and for general corporate purposes. "The proposed SGD bonds will help CCRE address the put under the convertible bonds and improve its debt maturity profile and liquidity position," says Ken Chan, a Moody's Vice President. "The SGD bonds will only modestly affect the company's credit metrics, as the bulk of the proceeds will be deployed for debt refinancing. Accordingly, its pro-forma 2011 adjusted Debt/Capitalization will increase to about 57% from 56%," he adds. Moody's expects the financing costs to be lower than the plain vanilla USD bonds of same maturity. As such, its proforma 2011 adjusted EBITDA/Interest is likely to stay at around 4.5x. In addition, CCRE's 2011 financing performance was generally in line with Moody's expectations. The company demonstrated good sales execution as contract sales in 2011 exceeded its own target. Moreover, the higher gross margin of 39%, versus 34% a year ago, was due to more recognized sales from Zhengzhou and Luoyang, which commended higher average selling prices. As a result, CCRE's adjusted EBITDA/Interest ratio remained strong at 4.5x in 2011. Moody's expects some moderation in CCRE's profit margin as it diversifies its portfolio concentration outside the top three cities, namely Zhengzhou, Luoyang and Kaifeng, and to locations that have lower average selling prices. Approximately 56% of its land bank was located outside the top three key cities as of end- 2011. CCRE's adjusted Debt/Capitalization of 56% as of 31 December 2011 is on the higher side for its rating level. This higher debt leverage is partly balanced by the company's moderate liquidity profile and which is the result of its prudent land acquisition strategy and proactive debt management. It had cash on hand of RMB3.3 billion as of December 2011, compared to its short-term debt of RMB2.9 billion. The company has around RMB380 million of land premium outstanding as at end- 2011. Regarding the past breaches of the covenants of US dollar bonds, CCRE has received 94% waivers consent from bondholders. In order to tighten its internal control measures, the company has established a new compliance team and has engaged special US counsel as a compliance advisor to ensure adherence to the terms and conditions of its debt. The principal methodology used in these ratings was Moody's Global Homebuilding Industry, published in March 2009. Central China Real Estate Limited is a leading property developer in Henan Province, China. Founded in 1992, it listed on the Hong Kong Stock Exchange in June 2008. CHINA GLASS: Moody's Revises Outlook on 'B1' CFR to Negative ------------------------------------------------------------ Moody's Investors Service has revised to negative from stable the outlook for China Glass Holding Ltd's B1 corporate family and B2 senior unsecured bond ratings. Ratings Rationale "The change in outlook is driven by the company's weaker-than- expected profitability," says Jiming Zou, a Moody's Analyst and the International Analyst for China Glass. China's glass market has been deteriorating due to declining demand from the housing sector, which has been under pressure because of regulatory measures and rising costs. As a result, the company's adjusted EBITDA margin fell to 13%, with approximately 23% in the first half and 2 % in second-half 2011, . Moody's expects China's property market to remain sluggish in 2012. The weak demand is unlikely to improve because of the increased construction of social housing. Consequently, glass manufacturers with weak financial profiles will remain under pressure and the industry is likely to face a rebalancing of supply and demand over the medium term. "Also, the company's liquidity position is weak due to the fair amount of maturing debt and increasing working capital needs because of an elevated level of inventories and accounts receivables," Mr. Zou adds. China Glass has RMB1.17 billion of debt maturing in 2012, including short term loan from domestic banks and approximate USD60 million rated offshore bonds. Moody's expects that the company could achieve refinancing of its domestic loans given its past track record, e.g. the company indicated that around Rmb 200 million loans has been rolled over till end of March 2012. Nevertheless, tight bank lending in China could add some uncertainty to the debt refinancing. The company's inventories and accounts receivable days on hand deteriorated to 73 days and 44 days in fiscal 2011, from 52days and 29 days, respectively, a year ago. "This weakness has translated into credit metrics that weakly position China Glass in the B1 rating level. Its Adjusted debt/EBITDA ratio rose to 4.2x at end 2011, from 1.8x in 2010, and breaching the rating trigger of 3.0x-3.5x" says Kai Hu, the company's Local Market Analyst. China Glass' corporate family B1 rating continues to reflect its position as one of the largest float-glass producers in the country, and the investment by Pilkington Plc, a UK-based glass manufacturer owned by Nippon Sheet Glass Co. Ltd. The rating also takes into consideration the company's improved corporate structure with better control over its cash flow. It captures the shift in business strategy to focus more on profit margins and technology improvements. However, the rating is constrained by its small scale, overcapacity in the industry, volatile input costs, and its reliance on a single market segment. The rating is also tempered by China Glass' history of distressed exchange. The company's senior unsecured rating is one notch lower at B2, reflecting structural subordination risk, given that the ratio of subsidiary level debt to total consolidated assets is likely to stay above 15% in the next 12-18 months. An upgrade is unlikely in the near term due to the negative outlook. The rating outlook could return to stable, if China Glass can improve EBITDA margin to around 15% or better, sustain Debt/EBITDA below 3.0x, and substantially refinance its short- term debts Moody's will continue to review China Glass' profitability and liquidity position. Its ratings could be downgraded if: (1) its profitability does not improve, (2) debt level continues to rise due to poor management of working capital or further substantial capital expenditure, or (3) material maturing debts cannot be refinanced. The following credit metrics would indicate a potential downgrade in Moody's view: EBITDA margin of less than 15%-20%, Debt/EBITDA of more than 3.0x-3.5x, or adjusted debt/total capitalization consistently in excess of 40%-45% for a prolonged period. The principal methodology used in this rating was Global Building Materials Industry published in July 2009. China Glass Holdings Ltd is publicly listed in Hong Kong and is the second-largest float-glass manufacturer in China in terms of capacity, with 17 production lines across the country. The float glass it produces is used largely in the construction industry. PROVIEW ELECTRONICS: Shenzhen Court Blocks Liquidation Bid ---------------------------------------------------------- AppleInsider reports that Proview Electronics Co., Ltd's lawsuit against Apple over the iPad trademark in China will continue unobstructed now that a court has blocked one creditor's attempt to liquidate the company. The report says Fubon Insurance had filed multiple requests to have the Shenzhen subsidiary of Proview liquidated without waiting for the former monitor maker to resolve its complaint against Apple. The creditor had said it did not believe Proview would win enough money from Apple to cover its debts, AppleInsider recalls. According to AppleInsider, China Daily reported that the Intermediate People's Court of Shenzhen rejected Fubon's request on March 31. The court explained in its decision that the Chinese iPad trademark could provide the money needed to pay back what it owes, the report relays. "As it is too early to determine Proview lacks the ability to pay off its debts, the court does not accept Fubon's request to liquidate Proview," the court said. AppleInsider, citing China Daily, says legal experts had suggested that Proview's complaint against Apple may have been brought to a halt if the court had approved the liquidation of the company. Even with the recent court ruling, Proview isn't in the clear, though, as it still has several powerful creditors, including eight Chinese banks, looking to collect. The company is said to owe as much as US$400 million. Proview Electronics Co., Ltd. operates as a subsidiary of Proview International Holdings Ltd. Proview International manufactures computer monitors and other media devices. SINO-FOREST CORP: Shares Delisted from Toronto Stock Exchange ------------------------------------------------------------- Sino-Forest Corporation disclosed that the Continued Listings Committee of the Toronto Stock Exchange has determined to delist the Company's common shares effective at the close of market on May 9, 2012. The delisting was imposed due to Sino-Forest's failure to meet the continued listing requirements of the TSX as a result of the commencement of proceedings under the Companies' Creditors Arrangement Act on March 30, 2012 and for failure to file on a timely basis its interim financial statements for the three and nine months ended Sept. 30, 2011 and its audited annual financial statements for the year ended Dec. 31, 2011. Sino-Forest continues to be subject to a cease trade order of the Ontario Securities Commission which prohibits trading in the Company's securities. About Sino-Forest Sino-Forest Corporation -- http://www.sinoforest.com/-- is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Sino-Forest Corporation on March 30, 2012, obtained an initial order from the Ontario Superior Court of Justice for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act. Under the terms of the Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in implementing its restructuring plan. Gowling Lafleur Henderson LLP is acting as legal counsel to the Monitor. During the CCAA process, Sino-Forest expects its normal day-to- day operations to continue without interruption. The Company has not planned any layoffs and all trade payables are expected to remain unaffected by the CCAA proceedings. SINO-FOREST CORP: Ernst & Young Resigns as Auditor -------------------------------------------------- Sino-Forest Corporation disclosed that Ernst & Young LLP has notified the Company that it has resigned as the Company's auditor effective April 4, 2012. In its resignation letter to the Company, E&Y noted that the Company had not prepared December 31, 2011 consolidated financial statements for audit and that, in the Company's March 30, 2012 filing under the Companies' Creditors Arrangement Act, Sino-Forest said that it remained unable to satisfactorily address outstanding issues in relation to its 2011 annual financial statements. About Sino-Forest Sino-Forest Corporation -- http://www.sinoforest.com/-- is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Sino-Forest Corporation on March 30, 2012, obtained an initial order from the Ontario Superior Court of Justice for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act. Under the terms of the Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in implementing its restructuring plan. Gowling Lafleur Henderson LLP is acting as legal counsel to the Monitor. During the CCAA process, Sino-Forest expects its normal day-to- day operations to continue without interruption. The Company has not planned any layoffs and all trade payables are expected to remain unaffected by the CCAA proceedings. SINO-FOREST CORP: Receives Enforcement Notice From OSC ------------------------------------------------------ Sino-Forest Corporation disclosed the Ontario Securities Commission publicly stated that it had commenced an investigation in relation to the Company. The investigation arose out of a "report" prepared by Muddy Waters LLC that was publicly disclosed on June 2, 2011. On Aug. 26, 2011, the Commission issued a temporary cease trade order in respect of the Company's securities and in respect of Allen Chan, Albert Ip, Alfred Hung, George Ho and Simon Yeung. The temporary cease trade order was made after the Independent Committee of the Board of Directors of the Company, established in response to the allegations made by Muddy Waters, provided staff of the OSC with documents and briefings arising from the work of the Independent Committee and its advisors. In recitals to the temporary cease trade order, the OSC said that: "Sino-Forest, through its subsidiaries, appears to have engaged in significant non-arm's length transactions which may have been contrary to Ontario securities laws and the public interest", that "Sino-Forest and certain of its officers and directors appear to have misrepresented some of its revenue and/or exaggerated some of its timber holdings by providing information to the public in documents required to be filed or furnished under Ontario securities laws which may have been false or misleading in a material respect contrary to section 122 or 126.2 of the [Ontario Securities] Act and contrary to the public interest" and that "Sino-Forest and certain of its officers and directors including Chan appear to be engaging or participating in acts, practices or a course of conduct related to its securities which it and/or they know or reasonably ought to know perpetuate a fraud on any person or company contrary to section 126.1 of the Act and contrary to the public interest". On Aug. 28, 2011, the Company announced that Mr. Chan had voluntarily resigned as Chairman, Chief Executive Officer and Director but would continue with the Company as Founding Chairman Emeritus, a non-executive position. The Company announced that Judson Martin had, at the request of the Board, accepted an appointment as Chief Executive Officer, and that he would continue to serve as Executive Director and Vice-Chairman of the Company and as Chief Executive Officer of Greenheart Group Limited, the Company's controlled subsidiary listed on the Hong Kong Stock Exchange. The Company also announced that it had placed three employees on administrative leave, and that a fourth senior employee had been requested to act solely on the instructions of Mr. Martin. The three employees placed on administrative leave were Messrs. Hung, Ho and Yeung. Mr. Ip was the employee requested to act solely on the instructions of Mr. Martin. In making this announcement, the Company said that these actions were undertaken after certain information was uncovered during the course of the review being undertaken by the Independent Committee The temporary cease trade order made on Aug. 26, 2011 was later extended and continues in force. The OSC's investigation in relation to the Company continued into 2012. The Company believes that it has cooperated with staff of the Commission in connection with the investigation. On March 30, 2012, the Company announced that Mr. Ip had resigned from the Company for health reasons but had agreed to serve as a consultant to Sino-Forest on a part-time basis. On April 5, 2012 the Company received an "Enforcement Notice" from staff of the Commission. The Company has learned that Enforcement Notices also were received that day by Messrs. Chan, Ip, Hung, Ho and Yeung, and by David Horsley, the Company's Chief Financial Officer. Enforcement Notices typically are issued by staff of the Commission at or near the end of an investigation, identify issues that have been the subject of investigation, and advise that staff contemplate commencing formal proceedings in relation to those issues. Enforcement Notices afford recipients an opportunity to make representations before a decision is taken by staff of the Commission to commence formal proceedings. The Enforcement Notice received by Sino-Forest alleges conduct contrary to ss. 122 and 126.1 of the Ontario Securities Act and contains allegations of a serious nature consistent with the recitals to the temporary cease trade order quoted above. The Enforcement Notice raises conduct issues in relation to the Company and in relation to the individuals who also received Enforcement Notices. The Company is considering what steps it will take, including in relation to Company personnel, as a result of the Enforcement Notice. About Sino-Forest Sino-Forest Corporation -- http://www.sinoforest.com/-- is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Sino-Forest Corporation on March 30, 2012, obtained an initial order from the Ontario Superior Court of Justice for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act. Under the terms of the Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in implementing its restructuring plan. Gowling Lafleur Henderson LLP is acting as legal counsel to the Monitor. During the CCAA process, Sino-Forest expects its normal day-to- day operations to continue without interruption. The Company has not planned any layoffs and all trade payables are expected to remain unaffected by the CCAA proceedings. WINSWAY COKING: Moody's Confirms 'Ba3' CFR; Outlook Negative ------------------------------------------------------------ Moody's Investors Service has confirmed Winsway Coking Coal Holdings Limited's Ba3 corporate family and B1 senior unsecured bond ratings. The ratings outlook is negative. Ratings Rationale This action concludes the review initiated on January 20, 2012, following allegations about irregularities in Winsway's reported inventory and related-party transactions. "Despite the allegations, Winsway's business operations and access to capital markets were not materially affected. This is evident from the successful completion of bank financing worth USD350 million in February 2012," says Ken Chan, a Moody's Vice President and Senior Analyst. "Also, there have been no further allegations after the company provided clarifications." In response to external allegations, Winsway disclosed and verified its historical inventory balances in tonnage, as well as clarified the identity of an independent third party. Its reported 2011 financial results did not include any provision due to these allegations. In addition, the allegations did not affect its acquisition of Canadian coal miner Grande Cache Coal Corporation, with Winsway completing the acquisition in March 2012. However, the negative outlook reflects Moody's concerns that Winsway's growth will be pressured by the limited allocation of railway capacity and softening steel demand in 2012. The attractive business model and the rapid ramp-up of the cheap production of Mongolian coal have tempted sizable state-owned enterprises (SOEs) to enter the profitable market and compete for railway capacity. "In addition, Winsway's weak liquidity position due to the slowdown in the disposal of its inventories and the risk of increased prices could weigh on its profit margin," Chan adds. The company has made some progress in reducing its inventory level, which stood at HKD3.2 billion as of March 2012, versus HKD3.9 billion as of December 2011. Although it aims to transfer the inventory risk to its upstream operators at the expense of profitability, it still has to carry bulk of the risk in the near term. Winsway's Ba3 rating continues to reflect its strong market position in supplying Mongolian coking coal to China, as a result of its access to the train services at the Sino-Mongolian border. The rating also considers the lower coking coal prices in Mongolia, compared with the international market. The company's established infrastructure, which includes its coking coal cleaning process, at border crossings provides it with bargaining power in price negotiations and which helps partly offset the price risk. However, the limited capacity of China's railway infrastructure has hindered the expansion of the coking coal industry. Winsway, therefore, needs to secure enough railway capacity to support growth. In addition, it has a short track record in coking coal logistics. Its rapid expansion poses execution risks and requires a high amount of working capital, which could strain its bank credit limits. Moody's expects Grande Cache, which will be fully consolidated in 2012, to contribute around 30% of Winsway's total EBITDA. The interest in upstream coal mines adds volatility to its earnings due to the price risk related to coal, although investing in these coal mines partly reduces its supply risk. Winsway's credit profile (proforma for acquisition of Grande Cache Coal and bills payables net of pledged cash) of 2011 Debt/EBITDA of 3.4x and EBITDA/Interest of 4.0x is currently within the Ba3 rating drivers. Winsway's B1 senior unsecured rating is one notch lower than its corporate family rating, and reflects legal and structural subordination. Secured debts, including the USD350 million acquisition financing, accounted for more than 15% of its total proforma assets in 2011. Given the need to support its fast- growing business volumes and investment in upstream coal mines with working capital facilities, Moody's expects Winsway to continue incur more onshore secured debt. The ratings are unlikely to be upgraded in the near term, given the negative outlook. However, the outlook will revert to stable if the company: (1) improves its balance sheet liquidity such that its cash on hand reaches around 15% of total assets, and (2) maintains EBITDA margin of 10%-12% on a sustainable basis by successfully managing its working capital and price risks. On the other hand, the ratings could be downgraded if the company's financial position weakens, such that debt/EBITDA exceeds 4.0x-4.5x and EBITDA/interest stays below 3.5x, as a result of: (1) the inability to obtain enough railway capacity, which would limit its land-borne coal supply growth, (2) a prolonged drop in the per-ton profit of transported coal due to the pressure from suppliers and customers, (3) material delays or cost overruns in the development of the company's logistics infrastructure or processing plants. Any material change in Mongolian regulations for coal exports that adversely affects Winsway's coal sourcing would also be negative for the ratings. Winsway Coking Coal Holdings Limited's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Winsway Coking Coal Holdings Limited's core industry and believes Winsway Coking Coal Holdings Limited's ratings are comparable to those of other issuers with similar credit risk. Winsway Coking Coal is one of the largest suppliers of coking coal in China, and obtains its supplies from Mongolia and other international markets. It also processes coal and provides logistics services to its customers, mainly Chinese steel makers and coke plants, through its integrated coking coal supply chain in China. It listed on the Hong Kong Stock Exchange in October 2010, and is 49.7%-controlled by its founder and CEO Wang Xingchun. ================ H O N G K O N G ================ ATLANTIS DEEPWATER: Final Meetings Set for May 10 ------------------------------------------------- Members and creditors of Atlantis Deepwater Orient Limited will hold their final meetings on May 10, 2012, at 10:30 a.m., and 11:00 a.m., respectively at Level 17, Tower 1, Admiralty Centre, at 18 Harcourt Road, in Hong Kong. At the meeting, Cosimo Borrelli, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. BRAND SUCCESS: Creditors' Proofs of Debt Due May 7 -------------------------------------------------- Creditors of Brand Success Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by May 7, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 23, 2012. The company's liquidators are: Chan Chi Bor Li Fat Chung Unit 402, 4/F Malaysia Building No. 50, Gloucester Road Wanchai, Hong Kong CHUN PO: Members' and Creditors Meetings Set for April 20 --------------------------------------------------------- Members and creditors of Chun Po Investment Company Limited will hold their annual meeting on April 20, 2012, at 10:00 a.m., at 62nd Floor, One Island East, at 18 Westlands Road, Island East, in Hong Kong. At the meeting, David Yen Ching Wai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CONFORD HOLDINGS: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------ At an extraordinary general meeting held on March 26, 2012, creditors of Conford Holdings Limited resolved to voluntarily wind up the company's operations. FLORA INTERNATIONAL: Commences Wind-Up Proceedings -------------------------------------------------- Members of Flora International Hong Kong Limited, on March 26, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Michel Henricus Bots Ng Kit Ying Zelinda 36/F, Tower Two, Times Square 1 Matheson Street Causeway Bay, Hong Kong IMPERIAL WORLD: Final Meetings Set for May 9 -------------------------------------------- Members and creditors of Imperial World Company Limited formerly known as Pico Austria Limited will hold their final meetings on May 9, 2012, at 10:00 a.m., and 10:30 a.m., respectively at Room 203, Duke of Windsor Social Service Building, 15 Hennessy Road, Wan Chai, in Hong Kong. At the meeting, Kam Chi Kan Elson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. INFRONTIA (H.K.): Members' Final Meeting Set for May 8 ------------------------------------------------------ Members of Infrontia (H.K.) Company Limited will hold their final general meeting on May 8, 2012, at 11:00 a.m., at Suite 901-902, Two Landmark East, 100 How Ming Street, Kwun Tong, in Hong Kong. At the meeting, Chong Shi Ming John, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. INTERTRANS CONSULTING: Members' Final Meeting Set for May 4 ----------------------------------------------------------- Members of Intertrans Consulting Services Limited will hold their final meeting on May 4, 2012, at 11:00 a.m., at the offices of FTI Consulting (Hong Kong) Limited, Level 22, The Center, 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. JMC R&D: Members' Final Meeting Set for May 7 --------------------------------------------- Members of JMC R&D HK Limited will hold their final general meeting on May 7, 2012, at 11:00 a.m., at #1304, IT Premier Tower, 345-50 Gasandong, Geumcheon-gu, Seoul 153-707, in Korea. At the meeting, Park Minbong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KENFAIR PUBLICATIONS: Members' Final Meeting Set for May 8 ---------------------------------------------------------- Members of Kenfair Publications Limited will hold their final meeting on May 8, 2012, at 10:00 a.m., at 23/F, Exchange Tower, 33 Wang Chiu Road, Kowloon Bay, Kowloon, in Hong Kong. At the meeting, Chuang Johnny, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= A. G. ENTERPRISE: CARE Reaffirms 'BB-' Rating on INR6.5cr Loan -------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of A. G. Enterprise. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.50 CARE BB- Reaffirmed Short-term Bank Facilities 51.50 CARE A4 Reaffirmed Rating Rationale The ratings continue to remain constrained by the short track record of operations of A. G. Enterprise along with thin profitability margins. The ratings are further constrained due to high inventory risk pertaining to adverse movement in prices of steel on uncut ship inventory, intense competition in the ship breaking industry marked by low entry barriers, volatile nature of the business with uncertainty regarding availability of ships for recycling and its constitution as a proprietorship firm leading to possibility of withdrawal of capital and restricted financial flexibility. The above constraints are partially offset by strengths like experience of the proprietor in the industry and its modest solvency position. Ability to successfully manage the inherent price volatility risk on the uncut inventory of ships and timely renewal of validity of rental plots for ship breaking are the key rating sensitivities. AGE is a proprietorship firm established by Mr. Ashwin Kukadia for the purpose of undertaking ship breaking activities. Mr Kukadia has a vast experience in diamond trading and polishing business and manages the Surat-based production house of KARP Impex Ltd. (Rated: CARE BBB-; March 2011), a diamond trading, cutting and polishing house based in Mumbai. AGE carried out normal ship breaking operations since its establishment in 1994 till 2001. However, there were negligible operations in AGE from 2001 to 2009, primarily due to slowdown in ship breaking and preoccupation of Mr. Ashwin Kukadia with other businesses. In January 2009, Mr. Ashwin Kukadia entered into a Memorandum of Understanding (MoU) with Mr. Jayant Patel, to carry out the ship breaking business and paying him INR50 per MT of scrap sold from ship breaking activities as business conducting charges. Mr Patel has vast experience of over 20 years in the ship breaking industry and also holds the position of Secretary in Ship Recycling Industries Association, an industry association of ship recyclers operating in Bhavnagar area in Gujarat. Mr. Jayant Patel also operates other ship breaking yards, viz Shantamani Enterprise as a partner and J. K. Industries as business manager, in the Alang - Sosiya belt of Bhavnagar region in Gujarat. The operations are carried out at the premises which are leased out by Gujarat Maritime Board (GMB) in Bhavnagar through auction route for tenure of one year, post which renewal of agreement is done at prevailing rates. BANSIDHAR COTFIBRE: CARE Reaffirms 'B' Rating on INR6cr Loan ------------------------------------------------------------ CARE reaffirms the rating assigned to the bank facilities of Bansidhar Cotfibre Industries Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.00 CARE B Reaffirmed Rating Rationale The rating continues to remain constrained by the modest scale of operations of Bansidhar Cotfibre Industries Private Limited, restricting economies of scale restricting economies of scale, limited value addition in cotton ginning business and weak financial risk profile marked by deterioration in the total operating income, thin profitability, stressed liquidity and highly leveraged capital structure. Susceptibility of its inherently low margins to volatility associated with cotton prices, presence in a highly fragmented and competitive agro- commodity business entailing limited pricing flexibility and regulatory uncertainties on export of cotton and fixation of Minimum Support Price (MSP) of cotton further constrain the rating. These constraints far outweigh the benefits derived from the promoters' experience and locational advantage by way of proximity to the cotton-growing regions in Gujarat. Rationalization of debt levels coupled with increase in scale of operations and ability to manage volatility associated with cotton prices thereby improving its profitability and cash accruals would remain the key rating sensitivity. BCIPL was incorporated by three promoters namely Mr. Manga Ladumor, Mr. Raha Ladumor and Mr. Nagji Ladumor in July 2006 to undertake business of raw cotton processing for ginning, pressing and trading of cotton bales and cotton seeds. The company operates from its sole manufacturing unit located in Talaja (Dist: Bhavnagar, Gujarat) where it has installed cotton processing capacity of 5.04 Tonne per Day (TPD). As per audited results for FY11 (refers to the period from April 1 to March 31), BCIPL reported a PAT of INR0.13 crore on a total operating income of INR25.67 crore. DARODE JOG: CARE Reaffirms 'BB+' Rating on INR40cr LT Loans ----------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Darode Jog Builders Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 40.00 CARE BB+ Reaffirmed Rating rationale The rating continues to factor in the residual project execution risk of the company's key ongoing project - 'Shriniwas Westside County', and competition from the other projects in the vicinity of SWC. The rating, however, derives strength from the adequate experience of the promoters and the management team in the Pune real-estate market, proximity of the ongoing projects to the key locations of Pune and revenue visibility by the way of good booking status of SWC. DJBPL's ability to make the timely sales for the project remains the key rating sensitivity. Darode Jog Builders Private Limited, incorporated on June 23, 1989, is engaged in the business of the real estate development. The company is promoted by Mr. Sudhir Darode and Mr. Anand Jog who have experience of more than 28 years in the real estate development in Pune and Pimpri Chinchwad. The company is presently executing one residential project named SWC and tworedevelopment projects named 'Varad Vastu' and 'Anupam Vastu' in Aundh Annexe, Kothrud and Navi Peth area of Pune respectively. Besides, DJBPL is executing the construction contract for a residential project named 'Shrinwas Greenland County (SGC)' of a group concern Darode Jog Dangat Ventures. As per audited results for FY11 (refers to the period from April 1 to March 31), DJBPL reported total operating income of INR63.00 crore and PAT of INR0.64 crore. GURUKRUPA COTTON: CARE Reaffirms 'B' Rating on INR10cr LT Loan -------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Gurukrupa Cotton & Oil Industries. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 10.00 CARE B Reaffirmed Rating Rationale The rating continues to remain constrained by the modest scale of operations of Gurukrupa Cotton & Oil Industries and short operational track record, its constitution as a partnership firm, presence in highly fragmented cotton ginning industry and weak financial risk profile marked by thin and fluctuating profitability, stressed liquidity and highly leveraged capital structure. The rating is further constrained by the susceptibility of GCOI's operating margins to cotton price fluctuations, seasonality associated with availability of cotton crop and regulatory uncertainties with regards to Minimum Support Price (MSP) and export-import policy. These constraints far outweigh the benefits derived from over two decades experience of the partners in the cotton industry and location advantage by way of proximity to the cotton-growing regions in Gujarat. GCOI's ability to increase its scale of operations with improvement in overall financial risk profile and adding value by forward integration thereby increasing its presence in textile value chain would remain the key rating sensitivities. Gujarat-based Gurukrupa Cotton & Oil Industries, a partnership firm, was constituted in November 2007. Commercial production for the firm was started only in October 2008. Hence, FY10 was the first full year of operations for GCOI. The firm is mainly engaged in the manufacturing of cotton bales, extraction of cotton seeds, cotton ginning and pressing, cotton wash oil and cotton DOC. The cotton manufactured by the firm was sold to the textile manufacturers and brokers in Gujarat and Maharashtra. As per audited results for FY11 (refers to the period from April 1 to March 31), GCOI reported a PAT of INR0.09 crore on a total operating income of INR68.61 crore. HARMILAP AGRO: ICRA Assigns '[ICRA]B+' Rating to INR11.2cr Loan --------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR11.25 crore fund based facilities of Harmilap Agro Industries Private Limited. The rating is constrained by HAIPL's weak financial profile, reflected by low profitability metrics and consequently weak debt coverage indicators. The rating also takes into account high intensity of competition in the industry and agro climatic risks, which can affect the availability of paddy in adverse weather conditions. The rating, however favorably takes into account long standing experience of promoters in rice industry and proximity of the mill to major rice growing area which results in easy availability of paddy. Further consistent growth in sales also provides comfort to the assigned rating. Harmilap Agro Industries Private Limited was established in 2007 as private limited company. The Company is primarily engaged in the milling of Rice with an installed capacity of 4 Tons per hour in Kurukshetra (Haryana). The company has sortex plant with capacity of 5 tons/hour. The Company is professionally managed by Mr. Hari Narayan. Recent Results During the financial year 2010-11, the company reported a profit after tax (PAT) of INR0.13 crore on an operating income of INR24.68 crore as against PAT of INR0.04 crore on an operating income of INR5.38 crore in 2010. For the current year, the company has reported operating income of INR33 crore. HYDERABAD AIRPORT: ICRA Reaffirms BB+(SO) Rating to INR72cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB+(SO)' rating to the INR72.97 crore term loan programme of Hyderabad Airport Security Services Limited. The outlook on the rating is stable. The letters SO in parenthesis suffixed to the rating symbol stand for Structured Obligation. An SO rating is specific to the rated issue, its terms, and its structure. SO ratings do not represent ICRA's opinion on the general credit quality of the issuers concerned. The rating takes into account the undertaking by GMR Hyderabad International Airport Limited (GHIAL, rated at [ICRA]BBB/A3+) to meet any shortfall in case the debt service coverage ratio for the term loan falls below 1.00. The rating addresses the servicing of the loan to happen as per the terms of the underlying loan and the above undertaking. The rating also assumes that the undertaking would be duly invoked by the lender, as per the terms of the underlying loan and undertaking, in case there is a default in payment by the borrower. About Hyderabad Airport HASSL, a 100% subsidiary of GHIAL has been incorporated as an SPV for the construction of rent-free residential accomodation for CISF personnel manning the Rajiv Gandhi International Airport at Shamshabad. The total project cost of INR125 crore had been partially funded out of a term loan of INR100 crore. Debt servicing of the loan would be facilitated by GHIAL out of the PSF(SC). GHIAL operates the Rajiv Gandhi International Airport located at Shamshabad, Hyderabad which commenced commercial operations on March 23, 2008. GHIAL's sponsors include GMR Infrastructure Limited (63% holding), Malaysia Airport Holdings Berhad (11% holding), Airports Authority of India (13% holding), and Government of Andhra Pradesh (13% holding). GHIAL has a 30-year concession for the development, maintenance and operation of the Shamshabad airport, extendable for a further 30 years at its option. The airport was constructed at a total cost of INR29.20 billion with an initial handling capacity of 12 million passengers per annum. The Master Plan envisages a terminal capacity of 40 million passengers per annum by the end of the 30- year term of the Concession Agreement. In the period April 2010- March 2011, the airport handled 7.63 million passengers. For the year 2010-11, GHIAL recorded an operating income of INR516.56 crore and a net profit (PAT) of INR103.98 crore. IDEA INT'L: Fitch Withdraws 'B-' Rating on INR200-Mil. Loan ----------------------------------------------------------- Fitch Ratings has withdrawn India-based Idea International Private Limited's National Long-Term rating of 'Fitch B-(ind)' with a Stable Outlook. Simultaneously, the agency has withdrawn Idea's bank loan ratings as follows: -- INR200 million fund-based cash credit limits (interchangeable with EPC/PCFC/EBD/FBP): 'Fitch B-(ind)'; rating withdrawn -- INR150 million non-fund-based letter of credit limits: 'Fitch A4(ind)'; rating withdrawn The National Long-Term rating has been withdrawn as it is no longer considered by Fitch to be relevant to its coverage, and the instrument ratings have been withdrawn as the loans are no longer outstanding. Fitch will no longer provide ratings and analytical coverage of idea. INCA HAMMOCK: ICRA Reaffirms '[ICRA]BB-' Rating on INR1.88cr Loan ----------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB-' to the INR1.88 crore term loan facilities (reduction from INR3.98 crore) of INCA Hammock Manufacturing & Export Private Limited. The outlook on the long-term rating is stable. ICRA has also reaffirmed the short- term rating of '[ICRA]A4' to the INR25.00 crore fund based facilities (enhanced from INR20.60 crore) and INR6.00 crore non-fund based facilities (reduction from INR7.00 crore). The ratings factor in the experience of promoters in the hammock manufacturing business and reputed clientele comprising of international hammock and home furniture manufacturers and retailers. ICRA also takes note of company's plans to target retails customers through online sales, but the translation of these efforts into improvement in financial profile remains to be seen. ICRA also takes note of trend of outsourcing of hammock production to low cost countries, due to the labor intensive nature of manufacturing, however due to prevailing economic conditions in end markets (mainly Europe and North America) the demand may witness some pressure in near to medium term. The ratings also take into account the volatility in hammock sales, which was reflected by the steep decline in hammock sales in 2010-11. The ratings are also constrained by susceptibility of margins to fluctuations in raw material prices, exchange rates and weak capital structure characterized by high gearing and stretched coverage indicators. The ratings also take note of the fragmented nature of industry characterized by low entry barriers resulting in competitive pressures from unorganized players in India and other low cost countries. About INCA Hammock Incorporated in 1990, INCA Hammock is a Chennai based manufacturer of hammocks and garden furniture. The Company's product range includes rope hammock, fabric hammock, swings, garden furniture, hammock stands and accessories. The company, a 100% export oriented unit (EOU), has its manufacturing facilities located in Chennai (Tamil Nadu) with facilities for rope making, stitching and quilting, packing, dispatch and storage. In 2010- 11, the Company also started trading in gold jewellery and the business will be hived off into a separate entity in near to medium term. The Company is also in the process of starting online sales in Q1 2012-13 to target retail customer. Recent Results According to unaudited results, INCA Hammock reported profit before tax of INR0.1 crore on an operating income of INR10.0 crore for the eight month period ended November 30, 2011. INDIAN CONSTRUCTION: ICRA Rates INR2.5cr Cash Credit '[ICRA]B' -------------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to INR2.50 crore fund based cash credit facility of Indian Construction Co. ICRA has also assigned an '[ICRA]A4' rating to INR3.25 crore short term non fund based facility of ICC. The assigned ratings are constrained by ICC's relatively small scale of operations and its weak financial profile as reflected by thin profitability, moderate capital structure and weak debt coverage indicators. The ratings also take into account the high competitive intensity in the construction space resulting in pressure on margins and geographical concentration risk due to concentration of most of ongoing and future projects in Gujarat. The ratings, however, favorably consider the long experience of the promoters in government tendered civil construction with status of "AA" class and relatively lower counter party credit risk given its exposure only to government bodies. ICRA further notes the positive outlook for construction companies in the long terms given the envisaged increase in infrastructure spending. About Indian Construction Indian Construction & Co. was established in 1968 as a partnership firm to carry out the business of construction work of dams, canals, repairing of roads etc. in the state of Gujarat. In the year 2006, there was a change in management with Mr. Bhagwanjibhai U Patel and three other family members taking over the ownership of the firm. ICC is registered as approved contractor in "AA" class (R&B Department) with the government of Gujarat. Recent Results For the year ended March 31, 2011, the firm reported an operating income of INR7.01 crore with profit after tax (PAT) of INR0.04 crore. Further, the firm has reported an operating income of INR3.61 crore and profit before tax and depreciation of INR0.14 crore for the first 11M of FY 2012 (provisional financials). INDIKA ENERGY: Fitch Revises Outlook on 'B+' IDR to Positive ------------------------------------------------------------ Fitch Ratings has revised Indonesia-based Indika Energy Tbk's Outlook to Positive from Stable. At the same time, the agency has affirmed Indika's Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'B+'. Indika's USD65m notes due in 2012, USD230m notes due in 2016 and its USD300m notes due in 2018 have also been affirmed at senior unsecured 'B+' with Recovery Ratings of 'RR4'. The Positive Outlook reflects Fitch's expectation of a sustained improvement in Indika's credit profile, owing to both robust dividend inflows from its 46%-held associate, PT Kideco Jaya Agung (Kideco) and increasing scale and diversity of the rest of its operations. Fitch expects Indika to deleverage post-2012, with debt net of cash to operating EBITDA (including dividends from Kideco) below 1.5x. The ratings may be upgraded if Indika's credit metrics evolve as per Fitch's expectations. Conversely, the Outlook could be revised back to Stable if Indika undertakes any large debt-funded investments or is unable to reduce its leverage below 1.5x post-2012 on a projected basis. Dividends from Kideco have accounted for about 70%-80% of Indika's operating EBITDA in the past four years. Kideco has distributed over 95% of its net income over this period, higher than the minimum 80% set in its shareholder agreement. Fitch expects the high dividend payout from Kideco to continue given increasing coal production, robust profitability, a nearly debt free status and low capex. As of 31 December 2011, adjusted debt net of cash to operating EBITDA was 1.9x and fund flows from operations to interest coverage was over 3.8x. Fitch expects Indika's leverage in 2012 to remain broadly unchanged from 2011 levels, owing to the acquisition of coal assets and high capex, mainly to ramp up production at its 69%-owned mining sub contractor; PT Petrosea Tbk (Petrosea). Fitch however expects increasing earnings contribution from Petrosea and PT Mitrabahtera Segara Sejati -- its newly acquired 51%-owned logistics service supplier to the coal industry -- plus strong dividend flows from Kideco, to aid Indika's deleveraging in the next two to three years. Indika's liquidity position is healthy, with IDR4.5trn of cash (excluding restricted cash balances of IDR583bn) at end-December 2011 and stable dividend inflows from Kideco. As a result Fitch expects Indika to be able to comfortably cover its IDR3trn debt maturities due in 2012. Indika incurred about IDR240bn to acquire 60% of PT Mitra Energy Agung and is expected to incur about IDR1.1trn to acquire 85% of PT Multi Tambangjaya Utama in 2012. The company also raised IDR1trn through its sale of 30% equity of Petrosea. J K INDUSTRIES: CARE Reaffirms 'BB-' Rating on INR4cr LT Loan ------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of J K Industries. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.00 CARE BB- Reaffirmed Short-term Bank Facilities 37.00 CARE A4 Reaffirmed Rating Rationale The ratings continue to remain constrained by the short track record of operations of J. K. Industries with thin profitability margins. The ratings are further constrained due to inventory risk pertaining to effect of adverse movement in prices of steel on uncut ship inventory, intense competition in the ship breaking industry marked by low entry barriers, volatile nature of the business with uncertainty regarding availability of ships for recycling and its constitution as a partnership firm leading to possibility of withdrawal of capital and restricted financial flexibility. The above constraints are partially offset by strengths like experience of the partners in the industry and its modest solvency position. Ability to successfully manage the inherent price volatility risk on the uncut inventory of ships and timely renewal of validity of rental plots for ship breaking are the key rating sensitivities. Background J. K. Industries is a partnership firm established by Mr. Dungarshi J. Shah and his brother Mr Kishor J. Shah in 1984 and is engaged in ship breaking business. The partners also operate a dredging and equipment hiring service firm in the name of Famous Dredging Corporation since 1980. Mr. Kishor J. Shah exited the business and the sons of Mr. Dungarshi J. Shah joined the partnership firm in 2003. In January 2009, the partners entered into a MoU with Mr. Jayant Patel, to carry out the ship breaking business and paying him INR60 per MT of scrap sold as business conducting charges. Mr. Patel is vastly experienced in the ship recycling industry, where he has been carrying out his business since the last 20 years and is also the Secretary of the Ship Recycling Industries Association (SRIA), an industry association of ship recyclers operating in Bhavnagar, Gujarat. Mr. Jayant Patel also operates other ship breaking yards, viz Shantamani Enterprise as a partner and A. G. Enterprise as a business manager, in the Alang - Sosiya belt of Bhavnagar region in Gujarat. The operations are carried out at premises which are leased out by Gujarat Maritime Board (GMB) in Bhavnagar through auction route for tenure of one year, post which renewal of agreement is done at prevailing rates. KJS CEMENT: ICRA Reaffirms '[ICRA]BB+' Rating on INR675cr Loan -------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]BB+' for the INR675 crore fund-based bank facilities of KJS Cement Limited. The outlook on the long term rating is stable. The rating reaffirmation factors in advanced stages of project implementation as reflected in commencement of clinker production and ongoing trial runs for other project components wherein cement production is likely to commence by Q1FY13. Though the expected date for commencement of commercial production of cement has been extended by three months beyond the scheduled COD, which has resulted in reduced moratorium period; however, promoters' financial support together with sale of clinker is enabling the company to meet its interest servicing obligations in the interim period. Further, based on the expenditure incurred by the company on the project till Jan. 31, 2012, ICRA notes that there is a high likelihood of the project completion within the budgeted costs and in line with the envisaged funding mix - which is favorable in relation to the typical funding mix observed in the sector. Further, the rating continues to derive comfort from company's access to limestone from its own mines; tie-up achieved for fly- ash; and proximity of company's plant to key raw material sources, which given the existing road and rail infrastructure is expected to result in freight cost savings for the company. The rating, however, continues to be constrained by the group's limited experience in the cement sector which increases marketing risk, particularly in light of commoditised nature of the product and intense competition from players having established brand and distribution networks. The risk is mitigated to an extent given the company's access to group's established sales distribution network and the initiatives taken for marketing and distribution of cement. The rating also continues to be constrained by the absence of formal linkages for coal, which together with the inherent cyclicality of the cement business makes the company's realisations and margins susceptible to adverse market developments. Further, the company is yet to demonstrate its ability to achieve the desired cost structure and sell optimum volumes in its natural marketing region. In ICRA's view, the key rating sensitivity will be the company's ability to commence and stabilise the cement production without further delays; operate at optimum capacity utilisation levels; manage cost-efficient operations and market its product successfully in its natural marketing region. About Kamal group A part of Kamal group of companies, KJS Cement Limited (KJSCL) was incorporated in 1983 as Diwan Lime Company Pvt. Ltd., with the objective of undertaking mining operations and manufacturing cement. The name of the company was subsequently changed to KJS Cement Private Limited in November 2007 and subsequently to KJS Cement Limited in February 2009 because of change in constitution from private limited to public limited company. KJSCL is setting up a green-field integrated 1.65 million tonnes per annum (mtpa) of clinker and 2.276 mtpa of cement manufacturing facility at Maihar, Satna district (Madhya Pradesh). The project, which also comprises of a 27 MW captive power plant, is being set up with a budgeted cost of around INR1,044 crore, being funded in a debt: equity ratio of 1.32 times. KPC MEDICAL: CARE Reaffirms 'B+' Rating on INR127.5cr LT Loan ------------------------------------------------------------- CARE reaffirms the ratings assigned to KPC Medical College & Hospital. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 127.5 CARE B+ Reaffirmed (reduced from 131.0) Short-term Bank Facilities 15.0 CARE A4 Reaffirmed Rating Rationale The ratings continue to be constrained by the short track record of operation of KPC, net deficit during the last three years leading to erosion of networth and stress on liquidity position. The ratings also factor in association of eminent doctors with the hospital, satisfactory infrastructure with latest available technology and infusion of funds by the promoters. Ability to further improve its infrastructure, introduce post-graduate courses subject to necessary statutory approvals and improve its profitability & capital structure would remain the key rating sensitivities. KPC Medical College and Hospital was promoted by Dr. K.P. Chaudhuri in August, 2003 as a society registered under the West Bengal Societies Registration Act, 1961. KPC was established with an objective of setting up a medical college along with a 750-bed hospital on 48 acres of land in Kolkata. KPC is one of the first private medical educational institutions for imparting undergraduate studies in West Bengal and is affiliated to the West Bengal University of Health Sciences and is approved by the Government of West Bengal. While the hospital became operational in 2007, the medical college started its operation in 2008. Besides the hospital and the medical college, KPC also has a B.Sc Nursing college and a General Nursing & Midwifery (GNM) Nursing school in the same campus which provide for the requirement of nurses in the hospital. In accordance with Medical Council of India guidelines, KPC is now admitting 150 students (per year) in the MBBS course. In FY11, KPC reported a net deficit of INR13.8 crore on a total income of INR40.6 crore. MAHAKALESHWAR TOLLWAYS: CARE Cuts INR228.89cr Loan Rating to BB+ ---------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Mahakaleshwar Tollways Pvt. Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long Term Loans 228.89 CARE BB+ Revised (reduced from 238.57) from CARE BBB- Rating Rationale The revision in rating is on account of significantly lower than envisaged toll collection due to weak traffic flow, Operations and Maintenance (O&M) risk and the resultant dependence on external funding for meeting debt obligations in the medium term. The rating also takes into account successful completion of the project within estimated time & cost and financial support demonstrated by the sponsors in meeting debt servicing obligation till date. Firm commitment from the promoters to meet any shortfall in future debt servicing obligation and increase in the amount of toll collection are the key rating sensitivities. About Mahakaleshwar Tollways Mahakaleshwar Tollways Private Limited, promoted by a consortium of Srei Infrastructure Finance Limited (SREI, rated CARE AA/ AA-/ A1+, 48% stake), Galfar Engineering and Contracting SAOG (GEC, 26%) and Varaha Construction Company (VCC, 26%), is a Special Purpose Vehicle (SPV) to undertake the four-laning, strengthening and up-gradation of the Indore-Ujjian Section of SH-27, in the State of Madhya Pradesh (MP), on Build, Operate and Transfer (BOT) - Toll basis. The project, was completed on November 17, 2010 and the commercial date of operation (COD) was announced on Feb 17, 2011. Toll collection had started earlier from November 2010 itself, after the project received Provisional Completion Certificate. The Concession Agreement (CA) was executed between MTPL (Concessionaire) and MPRDCL on September 17, 2008 for a concession period of 25 years. On total operating income of INR6.4 crore, MTPL incurred a net loss of INR11.0 crore in FY11 (refers to a period from April 1to March 31). During the nine months ended December 31, 2011 (9MFY12), MTPL has incurred a net loss of INR27.7 crore on a total income of INR12.4 crore. The promoters have infused funds in the form of equity/unsecured loans, during the period, to bridge shortfall in cash flows. M.P. ENTERTAINMENT: ICRA Reaffirms 'B' Rating on INR20cr Loan ------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]B' rating to the INR20 crore long term fund based limits of M.P. Entertainment and Developers Private Limited. The rating reaffirmation takes into account the commencement of operations of the retail mall in H1 FY2012, its attractive location and reputed tenant profile. However, the rating continues to be constrained by concentration risks arising out of operating a single property and stretched liquidity of the company on account of limited cushion between lease rentals and debt repayment obligations, and likely pressure on the cash flows in case of delays by the lessees in meeting their monthly lease rental payments. Going forward, MPED's ability to lease out the remaining space in the mall and maintain adequate cover between its lease payments and repayment obligations remain the key rating sensitivities. M.P. Entertainment and Developers Private Limited has been promoted by Mr. Gurjeet Singh Chhabra who has been involved in real estate development in and around Indore. Currently the group has two operational malls under the companies Century 21 Town Planners Private Limited and MPED. Apart from these malls, another group company named Ria Hotels Private Limited has leased out 80,000 sq ft land to Bestech Hospitalities Pvt. Ltd. MPED is currently operating a shopping mall at Agra Bombar Road, Indore with a gross leasable area of 2.5 lakh sq ft. Till date, the company has leased out 86% area to reputed tenants such as Easy Day Market (Bharti Walmart), Globus, Club Mahindra, Numero Uno, Fashion @ Big bazaar (Pantaloon Retail),McDonalds, Monte Carlo, Nirulas, Bata, Peter England, KFC etc. OSCAR LEATHERS: CARE Cuts Rating on INR5.5cr Loan to 'CARE BB' -------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Oscar Leathers Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.51 CARE BB Revised from CARE BB+ Long-term/Short-term 6.75 CARE BB/CARE A4 Bank Facilities Revised from CARE BB+/CARE A4+ Short-term Bank Facilities 1.00 CARE A4 Revised from CARE A4+ Rating Rationale The revision in ratings of Oscar Leather Private Limited (OLPL) mainly factor in deterioration in financial risk profile marked by losses in FY11 (refers to the period April 01 to March 31), deterioration in capital structure, elongated working capital cycle, the change in customer profile and delay in stabilization of enhanced capacities. Furthermore, the ratings are also constrained on account of susceptibility of the profit margins to foreign exchange fluctuations and relatively less diversified product portfolio. The ratings, however, continue to favorably factor in the established track record of OLPL, wide experience of the promoters in the leather industry and governmental support available to the leather product manufacturers and exporters. OLPL's ability to reduce the customer concentration risk and increase its presence in the domestic market with improvement in financial risk profile remains the key rating sensitivities. Incorporated in 1995, Oscar Leathers Private Limited was promoted by Mr. Sanjiv Gupta and Mrs. Sumit Kaur. Later on Mr. Jasvinder Pal Singh also joined the company as Director. OLPL is engaged in the manufacturing of leather shoes and shoe uppers which are exported primarily to Europe and Australia with exports contributing close to 98% of revenues. OLPL has an installed capacity to manufacture 3000 pair of shoes and 4000 shoe uppers per day as on March 31, 2011 at its two manufacturing facilities situated at Lalru, Mohali (Punjab) and Industrial Area, Mohali (Punjab). RITZY INT'L: Fitch Assigns 'B+' National Long-Term Rating --------------------------------------------------------- Fitch Ratings has assigned India-based Ritzy International Pvt. Ltd. a National Long-Term rating of 'Fitch B+(ind)'. The Outlook is Stable. The ratings are constrained by Ritzy's small size of operations, although revenue increased significantly to INR1,259.8m in FY11 (financial year ending March) from INR456.8m in FY10. The ratings are also constrained by the company's high adjusted net financial leverage (net debt/operating EBITDA) of 7.5x in FY11 and 7.9x in FY10 due to its low EBITDA margins (FY11: 2.45%, FY10: 2.3%), attributable to the trading nature of its business. The ratings are further restricted by the company's high customer concentration, as its top three customers accounted for about 98% of its total sales for the period of April 2011 to February 2012. Around 29.3% of the total revenue comes from PCL Oil & Solvents Ltd and Ritzy Chemicals Pvt Ltd. The latter is Ritzy's group company, which is into plasticisers manufacturing. The ratings are, however, supported by Ritzy's reasonable liquidity position, as reflected in the low utilisation (37%) of its fund-based working capital limits from April 2011 to January 2012, and comfortable interest coverage (operating EBITDA/net interest) of 4.1x in FY11 (FY10: 3.8x). Fitch notes that the company has no term debt on its balance sheet. The ratings also reflect over three-decade-long experience of its management in the domestic chemicals and plasticisers industry. Negative rating action may result from margin pressures and any unexpected increase in working capital, which could deteriorate net adjusted financial leverage above 8.5x on a sustained basis. Positive rating action may result from consistent revenue growth coupled with improved operating EBITDA margins which could improve net adjusted financial leverage below 6x on a sustained basis. Incorporated in 2007, Ritzy is engaged in the trading of chemicals and plasticisers. In FY11, the company reported an operating EBITDA of INR30.92 m (FY10: INR10.45m). Fitch has also assigned ratings to Ritzy's bank loan facilities as follows: -- INR430 million non-fund-based working capital limit: 'Fitch B+ (ind)'/'Fitch A4(ind)' -- INR50 million fund-based working capital limit (a sub limit of the non-fund-based limit): 'Fitch B+(ind)'/'Fitch A4(ind)' SHAH HOUSECON: CARE Reaffirms 'B+' Rating on INR21cr LT Loan ------------------------------------------------------------ CARE reaffirms the rating assigned to the bank facilities of Shah Housecon Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 21.00 CARE B+ Reaffirmed Rating rationale The rating is constrained by the high execution risk in all the ongoing projects and high funding risk as the financial tie-up for all the ongoing projects have not been achieved while at the same time projects have high dependence on customer advances. The rating is also constrained by the concentration of the company to a single location in Mumbai, regulatory risks related to Slum Rehabilitation Scheme (SRS) projects and the cyclical nature of the industry. The rating derives strength from the experience of the promoters and successfully delivered residential projects aggregating to 6.57 lakh square feet (lsf) in the past. Ability of the company to execute the ongoing projects on time, achieve envisaged sales and receive financial closure for all ongoing projects remains the key rating sensitivity. Incorporated in the year 2001, Shah Housecon Pvt. Ltd. is a part of the Shah Group which is promoted by Mr. Mansukh Shah and Mr. Ramji Shah. The group has developed several residential projects in the Malad suburb of Mumbai with an aggregate saleable area of 6.57 lsf. Currently, SHPL has undertaken three projects with total saleable area aggregating to 9.81 lsf (two being residential projects under SRS scheme and one being commercial-cum-residential project) in the Malad suburb of Mumbai. As per audited results for FY11, Shah Housecon Pvt Ltd reported total operating income of INR6.77crore and PAT of INR0.12 crore. SHRAVANRAJ CONSTRUCTIONS: ICRA Reaffirms 'B+' Long-Term Rating -------------------------------------------------------------- ICRA has reaffirmed the long-term rating at '[ICRA]B+' for INR2.50 crore cash credit limits and ratings of '[ICRA]B+/[ICRA]A4' for INR2.50 crore proposed limits of Shravanraj Constructions Private Limited. The reaffirmation of ratings continue to factor in the long track record of promoters in road construction business; its healthy order book position (order book to Operating Income (FY11) ratio of 2.55 times as on Dec. 31, 2011); and positive outlook for road projects given the large investments planned in the north eastern region. The ratings are however constrained by high client, sectoral and geographic concentration risks; company's small scale of operations limiting the capacity of the company to bid for larger projects; moderate profitability owing to low complexity of the work and intense competition; and increased gearing on account of increased working capital borrowings. About Shravanraj Constructions Shravanraj Constructions Private Limited, founded in 2005, is mainly into execution of road and irrigation projects in Andhra Pradesh. The company has been registered as Class II civil contractors with the AP state government specializing in civil contract works. SCPL is a closely managed company with the ownership and management in the hands of the family of Mr. R Ramesh Kumar Reddy. His wife, Mrs. R Nanditha Reddy is the Managing director of the company. The company has order book of INR55.16 crore as on December 31, 2011. Recent Results For FY2011, the company reported a turnover of INR21.6 crore and a PAT of INR0.75 crore as compared to INR12.84 crore operating income and a PAT of INR0.45 crore for FY2010. SK SYSTEMS: ICRA Cuts Rating on INR5.5cr Loan to '[ICRA]BB' ----------------------------------------------------------- ICRA has revised the long term rating assigned to INR5.50 crores (enhanced from INR3.75 crores) fund based bank facilities of SK Systems Private Limited to '[ICRA]BB' from '[ICRA]BB+'. The outlook on the long term rating is Stable. ICRA has also revised the short term rating to '[ICRA]A4' from '[ICRA]A4+' assigned to the INR13 crores (enhanced from INR10 crores) non-fund based bank facilities of SKS. The revision of the ratings reflects the vulnerability of SKS's profitability to high competitive pressures in its core business of design, manufacture, supply, erection and commissioning of air handling systems and equipments for various industrial applications and power plants and limited bargaining powers that SKS has vis-a-vis its customers (who are much larger entities), which has resulted in stretched liquidity position as reflected by relatively high working capital intensity (NWC/OI of 22% in FY 2011), modest cash flows and high working capital utilizations in the past. This has in turn resulted in increase in gearing from 0.67X in FY 2010 to 0.80X in FY 2011. The ratings are also constrained by vulnerability of SKS's profitability to price fluctuation risks on account of high lead time in execution of projects, which coupled with absence of price escalation clause in contracts has resulted in fall in operating profitability of the company in FY 2011. The ratings, however, derive comfort from the long experience of the promoters in the business which coupled with strong customer base and a healthy order book movement has resulted in steady turnover growth in the past five years, which is expected to be sustained in the medium term. About SK Systems Incorporated in 1980 by Mr. NK Gupta, SKS is engaged in Designing, Manufacturing, Supply, Erection and Commissioning of Industrial Air Handling and Air Pollution Control Systems / Equipments and HVAC systems to industrial players. The manufacturing facilities of SK Systems are located in Kundli district of Sonepat, wherein all the manufacturing takes place. Apart from that it has offices in Delhi and Bangalore where in order execution takes place. Recent Results: As per the audited results, SKS reported a net profit of INR0.85 crore on an operating income of INR40.15 crore for the year ended March 31, 2011 as against a net profit of INR0.65 crore on an operating income of INR29.98 crore for the year ended March 31, 2010. SRC METALICKS: Inadequate Info Cues Fitch to Migrate Ratings ------------------------------------------------------------ Fitch Ratings has migrated India-based SRC Metalicks Pvt Ltd's 'Fitch D(ind)' National Long-Term rating to the non-monitored category. This rating will now appear as 'Fitch D(ind)nm' on the agency's Web site. The ratings have been migrated to the non-monitored category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage of SRC. The ratings will remain in the non-monitored category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a Rating Action Commentary. Fitch has also migrated SRC's bank loan ratings to the non- monitored category as follows: -- INR16.2m long-term loans: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' -- INR190m fund-based limits: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' -- INR7.5m non-fund-based limits: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' TADIKELA SUBBAIAH: ICRA Assigns '[ICRA] B' LT Rating to Loans ------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA] B' and a short term rating of '[ICRA]A4' to INR96 crore term loan, INR7 crore non fund working capital facilities and INR10 crore unallocated loans of Tadikela Subbaiah Trust. The ratings are constrained by the fact that Subbaiah Medical College Hospital & Research Centre is not yet fully operational; hence the ability of the same to attract adequate patients/students still remains to be seen. The ratings also take into account the stretched financial risk profile of TST, characterized by modest turnover and coverage ratios like 'Debt/ OPBDIT' and 'NCA/ Debt'. ICRA further notes that SMC is likely to face stiff competition from the existing medical colleges and hospitals. The assigned ratings take into account the relevant experience and renowned trustees and doctors in the Shimoga healthcare sector that are associated with TST. The rating favorably considers the fact that the entire funding for SMC has already been tied up and almost all the requisite approvals except the approval from Medical Council of India have been obtained. Going forward, SMC's ability to attract adequate patients/students and generate sufficient surplus to service its debt obligations in a timely manner will be the key rating drivers. About Tadikela Subbaiah TST was formed in 2003 and is registered as Public Charitable Trust. It operates in Shimoga and is currently running a nursing school named as Tadikela Subbaiah School of Nursing offering B.Sc. Nursing (intake capacity of 60 students annually) and Diploma in nursing (intake capacity of 60 students annually). The trust has set up SMC in Shimoga which will be fully operational shortly. The project is spread over 29 acres of land with a planned development of around 10 lakh sq.ft of area. Around 6 lakh sq.ft is already under construction and the rest is expected to be constructed over the next 12-15 months. The project is to be financed through term loans amounting to INR96 crore and INR50crore of equity. SMC will offer 4� years M.B.B.S course with an intake capacity of 150 students annually. The first batch is expected to start September 2012 onwards. It will also be a multi-specialty hospital with 700 beds (including 175 beds for casualty, ICU, Emergency wards etc). Around 300 beds are already functional and the rest are expected to be operational in 6-8 months. The proposed college has planned for 21 major departments including Anatomy, Pathology, Forensic Medicine, Pediatrics etc. The trustees already run a sixty bed hospital under the name Subbaiah Hospital (since 1992) under a separate partnership firm in Shimoga which is well recognized in the surrounding areas. Recent Results For the financial year 2010-11, the Company's net profit stood at INR2.2 crore on an operating income of INR1.9 crore, against net profit of INR0.6 crore on operating income of INR1.5 crore for the financial year 2009-10. UMIYA INDUSTRIES: CARE Reaffirms 'CARE B+' Rating on INR7cr Loan ---------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Umiya Industries Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.00 CARE B+ Reaffirmed Rating Rationale The rating continues to remain constrained by the small scale of operations restricting economies of scale, limited value addition in cotton ginning business and its weak financial risk profile marked by thin profitability, stressed liquidity, low capital base and highly leveraged capital structure. Susceptibility of its inherently low margins to volatility associated with cotton prices, presence in a highly fragmented and competitive agro- commodity business entailing limited pricing flexibility & regulatory uncertainties on export of cotton and fixation of Minimum Support Price (MSP) of cotton further constrains the rating. These constraints far outweigh the benefits derived from the promoters' experience and locational advantage by way of proximity to the cotton seed growing regions in Gujarat. Rationalization of debt levels coupled with increase in capital base and its ability to manage volatility associated with cotton prices and thereby improving its profitability and cash accruals would remain the key rating sensitivity. Gujarat-based UIPL, promoted by Mr. Rameshbhai K. Patel, was incorporated on March 24, 2004. UIPL, a small-sized company with short track record of business operations, is mainly engaged in cotton ginning and pressing to produce cotton bales and cotton seeds. UIPL's manufacturing facilities are located at Himmatnagar with an installed capacity of 5,760 MTPA of cotton bales as on March 31, 2010. As per audited results for FY11 (refers to the period from April 1 to March 31), UIPL reported a PAT of INR0.35 crore on a total operating income of INR42.43 crore. XENITIS INFOTECH: Inadequate Info Cues Fitch to Migrate Ratings --------------------------------------------------------------- Fitch Ratings has migrated India-based Xenitis Infotech Ltd's 'Fitch D(ind)' National Long-Term rating to the non-monitored category. This rating will now appear as 'Fitch D(ind)nm' on the agency's Web site. The ratings have been migrated to the non-monitored category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage of XIL. The ratings will remain in the non-monitored category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a Rating Action Commentary. Fitch has also migrated XIL's bank loan ratings to the non- monitored category as: -- INR90m long-term loans: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' -- INR1,600m fund-based limits: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' -- INR800m non-fund- based limits: migrated to 'Fitch D(ind)nm' from 'Fitch D(ind)' ========= J A P A N ========= TOKYO ELECTRIC: To Sell 800 Additional Real Estate Properties ------------------------------------------------------------- The Nikkei reports that Tokyo Electric Power Co. has decided to sell about 800 additional real estate properties to secure funds for compensation to those affected by the accident at its nuclear plant. The news agency relates that TEPCO plans to sell JPY247.2 billion in real estate within three years under a special business plan drawn up last autumn. It had sold about 100 properties, raising roughly 38 billion yen, as of March 31. But the government and others have called for the utility to step up its restructuring efforts, the report says. About Tokyo Electric Tokyo Electric Power Company 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 Aug. 11, 2011, Moody's Japan K.K. confirmed the ratings of Tokyo Electric Power Co. The ratings confirmed include its senior secured rating of Ba2, long-term issuer rating of B1, and Corporate Family Rating of Ba3. The ratings outlook is negative. In February, Standard & Poor's Ratings Services kept Tokyo Electric Power Co. Inc. on CreditWatch but revised its implications to negative from developing. "We maintained the 'B+' long-term corporate credit, 'B' short-term corporate credit, and 'BB+' long-term debt ratings on the company. The stand-alone credit profile on TEPCO remains at 'ccc+', and the likelihood that the company will receive extraordinary support from the government of Japan (AA-/Negative/A-1+) in the event of financial distress remains 'high.' We placed the ratings on CreditWatch developing on May 13, 2011, and kept them on that status after lowering the ratings on the company on May 30, and again on Aug. 4 and Nov. 9," S&P said. TOKYO ELECTRIC: Tokyo Becomes Largest TEPCO Shareholder ------------------------------------------------------- The Mainichi reports that Tokyo Electric Power Co. said the Tokyo metropolitan government became the largest shareholder in TEPCO at the end of March, the utility said Wednesday, after the other major shareholders -- Dai-ichi Life Insurance Co. and Nippon Life Insurance Co. -- sold part of their stakes. At the end of last September, Dai-ichi Life was the largest shareholder with a 3.42% stake, followed by 3.29% for Nippon Life Insurance and 2.66% for the Tokyo metropolitan government, according to the report. The Mainichi says the central government is expected to replace the local government to become TEPCO's top shareholder possibly in July by injecting JPY1 trillion in public money into the utility through the Nuclear Damage Liability Facilitation Fund to acquire a majority of TEPCO voting rights. About Tokyo Electric Tokyo Electric Power Company 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 Aug. 11, 2011, Moody's Japan K.K. confirmed the ratings of Tokyo Electric Power Co. The ratings confirmed include its senior secured rating of Ba2, long-term issuer rating of B1, and Corporate Family Rating of Ba3. The ratings outlook is negative. In February, Standard & Poor's Ratings Services kept Tokyo Electric Power Co. Inc. on CreditWatch but revised its implications to negative from developing. "We maintained the 'B+' long-term corporate credit, 'B' short-term corporate credit, and 'BB+' long-term debt ratings on the company. The stand-alone credit profile on TEPCO remains at 'ccc+', and the likelihood that the company will receive extraordinary support from the government of Japan (AA-/Negative/A-1+) in the event of financial distress remains 'high.' We placed the ratings on CreditWatch developing on May 13, 2011, and kept them on that status after lowering the ratings on the company on May 30, and again on Aug. 4 and Nov. 9," S&P said. =============== M O N G O L I A =============== GOLOMT BANK: Moody's Assigns 'Ba3' Rating to US Sr. Unsec. Notes ---------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 rating to Golomt Bank's proposed fixed rate US dollar senior unsecured notes. The notes are on review for downgrade following Moody's decision to place the ratings of four Mongolian banks on review for downgrade on March 26, 2012. The review of Mongolian banks is in accordance with Moody's revised assessment of the linkage between the credit profiles of sovereigns and financial institutions globally, which is further discussed in the ratings implementation guidance titled "How Sovereign Credit Quality May Affect Other Ratings" published on Feb. 13, 2012. The review is not due to any changes in Golomt's standalone credit profile. Moody's expects that in the case of Golomt Bank, the maximum downgrade will be one notch, which would bring the bank's ratings in line with Mongolia's sovereign rating. Ratings Rationale The rating assigned to the notes is subject to the receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents reviewed by Moody's. "The rating is underpinned by the bank's good franchise value as one of the largest banks in Mongolia's banking system, in which it held 28.0% of deposits and 23.3% of loans at end-2011, satisfactory asset quality, and an adequate level of capital despite the substantial growth in assets in 2011," says Hyun Hee Park, a Moody's Analyst. "Golomt Bank has maintained good capital levels even though loans grew 59% in 2011, as it received a capital injection of USD16 million from Trafigura Beheer B.V. in March 2012 and an equity investment of USD20 million from Swiss MO investment AG in June 2011," she adds. As a result, Moody's estimates that the bank's Tier 1 capital ratio increased to more than 12% at end-March 2012, from 8.8% at end-2010. However, Moody's expects that the bank will continue to need to raise additional Tier 1 core capital over the next few years given the rapid growth of the Mongolian economy and the accompanying expansion of credit. The rating is supported by the bank's satisfactory NPL ratio -- defined as the sub-standard and below ratio -- of 2.05% as of December 2011. However, the rating also considers the bank's concentrated loan portfolio, given that it is the biggest lender to the country's industrial sectors. "The rating also takes into account the strong geographical concentration of the bank's operations in Mongolia. Given the resource-based nature of the economy and the rapid growth of the mining sector, there is the risk of boom-bust cycles, resulting in a volatile operating environment. In this context, Golomt's high volume of unseasoned loans creates some vulnerability to any economic dislocations," Park says. The bank's net interest margin trails behind that of other rated Mongolian banks, as its corporate focus means tighter margins and lower levels of low-cost deposits. Given the bank's traditional portfolio in corporate lending, loan concentration risk is rendered as high. Moody's notes that Golomt's exposure to its top 20 borrowers was over 1,100% of pre- provision profit, and over 300% of Tier 1 capital in 2011. Moody's views, in the short term, upside pressure on the rating is unlikely, given the review for downgrade. Additional factors that could exert negative pressure on the rating include (1) asset quality deteriorating significantly, possibly due to aggressive expansion, (2) NPLs surpassing 4.5%, (3) the new NPL formation rate of gross loans exceeding 8%, (4) the Tier 1 ratio falling below 9%, (5) profitability deteriorating significantly, with net income falling below average RWA of 1.4%, or, (6) signs of strains in the bank's liquidity position, a decline in the Mongolian economy, or a system-wide confidence crisis, which could threaten the bank's franchise. The bank's other ratings are: - Bank financial strength of D-; local currency bank deposit rating of Ba3; and issuer rating of Ba3: placed under review for downgrade - Foreign currency bank deposit rating of B2 The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: Global Methodology published in March 2012. Golomt Bank LLC is based in Ulaanbaatar, Mongolia. It is one of the largest Mongolia banks with consolidated assets of MNT2.1 trillion (US$1.5 billion) as of December 31, 2011. ==================== N E W Z E A L A N D ==================== COMPUTER POWER: WelTec, Whitireia Adopt Computer Power Students --------------------------------------------------------------- TechDay reports that two tertiary training institutes, the Wellington Institute of Technology (WelTec) and the Whitireia Community Polytechnic, have agreed to work together to adopt the students of the Computer Power Institute. TechDay relates that WelTec chief executive Linda Sissons said the decision came after seven meetings with students and staff at Computer Power's three campuses in Auckland, Wellington and Christchurch. "We were impressed by their loyalty and determination," the report quotes Ms. Sissons as saying. "It is our intention to make sure all enrolled students transfer their enrolments and complete their qualifications successfully." Both WelTec and Whitireia have campuses in Auckland and Wellington, with WelTec also operating a campus in Christchurch, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on March 22, 2012, The Dominion Post said Computer Power (NZ) Ltd has gone into liquidation owing more than NZ$8.3 million in tax, penalties and interest. Computer Power (NZ) Ltd is a private computer training institute. The institute runs Computer Power Institute campuses in Wellington, Christchurch and Auckland. It has about 750 students including about 150 international students. HERBERT INSURANCE: Breaches Legislation, Liquidators Say -------------------------------------------------------- Businessdesk reports that the liquidators for Herbert Insurance Group, the boutique insurer under scrutiny by the Serious Fraud Office, have found the firm may have breached legislation, but it is waiting on the white-collar crime investigator before taking any action. BusinessDesk relates that joint liquidator Aaron Walsh of Corporate Finance said in his second report that a number of potentially voidable transactions and disposition of assets "by way of unusual fund transfers" had been identified. "In the absence of funding, the liquidators do not foresee any merit in pursuing actions which will not result in a monetary benefit to the company's creditors," Mr. Walsh said in his report. "Our investigations also indicated breaches of legislation, but pending a decision on action by the SFO the liquidators have deferred progressing action in relation to these suspected breaches." Last year, BusinessDesk recalls, receivers for Herbert Insurance and its companion entity Herbert Securities sold its customer base of some 4500 people to Aon New Zealand, though there will likely be a shortfall to secured creditor ASB Bank, which is owed NZ$780,000. The value of the transaction is expected to be settled this month, and no consideration has yet been paid. The SFO received complaints about a shortfall in Herbert Insurance's broking client account, sparking the investigation and liquidation of the entities. The liquidators have also launched their own investigation into the affairs of Herbert Insurance as to whether there have been any breaches of the law or if there are any avenues for recovery available, the report said. Creditor ASB Bank New Zealand appointed receivers for Herbert Insurance on March 11, 2011, seven days after Herbert's shareholders placed the company in liquidation, The Dominion Post reported. The liquidators' first report indicated a deficit of NZ$4.4 million in Herbert's balance sheet. Herbert Insurance Group Limited was originally formed in 1981, is New Zealand-owned, and operates insurance broking houses in both New Zealand and Australia. The company advises, arranges and places Commercial, Property, Liability, Financial, Motor, Directors and Officers Liability, Professional Indemnity, Marine, Life & Disability, Travel, Medical and Prize Indemnity insurance covers as well as Domestic and Residential Insurance. WEST COAST BREWERY: Wind Up Bid Hearing Adjourned Until May 29 -------------------------------------------------------------- Fairfax NZ News reports that an Inland Revenue Department (IRD) application to liquidate The West Coast Brewery was adjourned in the Christchurch High Court. The report relates that West Coast Brewery director Paddy Sweeney said late last month he was in discussions with the IRD. In mid-March, Mr. Sweeney, who founded the Good Bastards Club, downplayed the impending liquidation proceedings, saying it was caused by a mix-up when the firm switched offices after February's 2011 quake, the report recalls. Fairfax NZ relates that the company had not missed a tax payment in 12 months. However, the IRD had sent a demand for settlement of an historic tax debt to the operation's former office as the address had not been changed by the company's accountants. Mr. Sweeney said that when the company did not respond, the IRD started proceedings through the High Court, Fairfax NZ relates. The matter was adjourned until May 29 to give the parties time to try to resolve the issue, the report adds. The company is a subsidiary of West Coast Brewing, which was founded by Queensland-based entrepreneur Sweeney to buy Westport's Miner's Brewery in 2007. The brewery was renamed The West Coast Brewery, owned by its namesake subsidiary, and Sweeney has ambitions to build the brand into the nation's third largest brewer. The company owns the Westport brewery and the group's beer brands. ============= V I E T N A M ============= VINASHIN: U.S. Hedge Fund Drops Lawsuit Against Firm ---------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that U.S. hedge fund Elliott Advisers LP has dropped a lawsuit against Vietnamese state shipbuilder Vinashin, according to a person familiar with the matter. =============== X X X X X X X X =============== * Moody's Says Europe Exposure Won't Affect Asian Corp. Ratings --------------------------------------------------------------- Moody's Investors Service says exposure to Europe's economic slowdown is not expected to result in rating changes for the vast majority of rated corporates in Asia. This assessment is based on a scenario in which European GDP declines by about 1% in 2012. A more severe outcome in Europe would result in a reassessment of the impact on Asian companies. "Although many Asian countries rely on Europe for exports, most of our Asian rated issuers are less exposed to conditions in the euro area due to the domestic or regional focus of their businesses," says Ping Luo, a Moody's Vice President and Senior Analyst. Luo was speaking at the release of a report titled "Exposure to Europe Won't Affect Ratings of Most Asian Corporates," which she co-authored together with Chris Park, Vice President and Senior Credit Officer. "Under our base case scenario of a mild euro area contraction of up to 1% in GDP for 2012, exposure won't impact the ratings and outlooks of most rated Asian firms, based on their European revenues and assets, as well as borrowing from European banks," Luo adds. Out of 217 rated issuers in Asia (ex-Japan), only 13 (6% of the total) report 15% or more of their revenue as being derived from Europe. Eight of these issuers (4%) report that over 25% of their revenues are derived from the European market. In the report, Moody's explains that reported revenues may understate the degree of exposure of revenues to Europe. For example, reported sales to Europe would not include sales of raw materials and intermediate goods to non-European companies that become components of finished goods sold to Europe. Among the 13 issuers with reported revenues to Europe exceeding 15%, a few are facing increased rating pressure. Although exposure to Europe is not the sole source of rating pressure, the slowdown in Europe has exacerbated concerns for these firms, particularly, BW Shipping (Ba1 negative) and LG Electronics (Baa2 negative). The sectors that are more likely to be adversely impacted by trends in Europe include consumer-electronics, semiconductors, shipping, port operators, palm oil producers, steelmakers, and chemical manufacturers. The more domestic or regionally focused sectors, with limited exposure to a euro area recession include utilities, property, telecommunications, consumer/retail, construction, building materials, and media. In terms of funding, many Asian issuers have improved their liquidity since the last financial crisis of 2008-2009, and most of them are well positioned to manage potential disruptions from the deleveraging of European banks. Moody's survey of rated issuers indicates that only 17 of them have more than 10% of their outstanding debt with European banks, excluding Hong Kong Shanghai Bank Corp and Standard Chartered Bank. Of these, 10 have cash on balance sheet that is over 100% of debt maturing in the next 12 months. ********* 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 ***