TCRAP_Public/141030.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, October 30, 2014, Vol. 17, No. 215


                            Headlines


A U S T R A L I A

BONKERS GROUP: In Administration; First Meeting Set For Nov. 6
NGOONJUWAH ABORIGINAL: 227 Ex-Workers' Wages Remain Unclaimed


C H I N A

CHINA: Chinese Ship Recyclers Facing Bankruptcy


I N D I A

ADDI ALLOYS: ICRA Revises Rating on INR10cr Cash Credit to C+
ARN TEXTILES: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit
ASSOCIATED INSULATION: ICRA Reaffirms B INR5.5cr Cash Loan Rating
BATRA EXPORTS: CRISIL Cuts Rating on INR100MM Cash Credit to D
BHARAT CONSTRUCTION: CRISIL Reaffirms B- INR120M Cash Loan Rating

CHINTAMANI COMMODITIES: ICRA Cuts Rating on INR6cr FB Loan to 'D'
CON-TECH PROJECTS: CRISIL Assigns B Rating to INR50MM Cash Credit
ENMAS GB: CRISIL Cuts Rating on INR400MM Bank Guarantee to D
FRENDI FASHIONS: CRISIL Reaffirms B+ INR20M Overdraft Loan Rating
GOLDEN APPLE: CRISIL Assigns 'B' Rating to INR77.5MM Term Loan

INLAND MARINE: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit
MALABAR FOOD: ICRA Suspends B+ Rating on INR8.17cr Bank Loan
MANMEET ALLOYS: ICRA Revises Rating on INR15cr FB Loan to B-
MERRITRONIX PVT: CRISIL Reaffirms B+ Rating on INR22.5M Term Loan
MOS METRO: CRISIL Lowers Rating on INR340MM LT Loan to 'D'

OYO CERAMIC: ICRA Assigns B+ Rating to INR4.86cr Term Loan
PERCEPT LIMITED: ICRA Withdraws 'D' Rating on INR18cr FB Loan
PRIME HITECH: CRISIL Assigns 'D' Rating to INR775MM Term Loan
S.L.V. STEELS: CRISIL Reaffirms D Rating on INR198MM LT Loan
SAMRIDDHI AGRO: CRISIL Assigns B- Rating to INR46.1MM Bank Loan

SARASWATI INDUSTRIES: CRISIL Reaffirms B Rating on INR49MM Loan
SB LIFESPACES: CRISIL Reaffirms B+ Rating on INR100MM Bank Loan
SEINUMERO NIRMAN: CRISIL Reaffirms B Rating on INR57.8M Term Loan
SHALAK EATABLE: CRISIL Assigns B Rating to INR167MM Term Loan
SHIV KRUPA: ICRA Reaffirms 'B' Rating on INR4.50cr Cash Credit

SHRI BIJASANI: CRISIL Reaffirms B Rating on INR70MM Cash Credit
SHRI K.K.: CRISIL Assigns B Rating to INR58.5MM Term Loan
SRI BALAJI: ICRA Assigns B+ Rating to INR6.04cr Fund Based Loan
WARADE PACK: ICRA Reaffirms 'B' Rating on INR4cr Cash Credit


J A P A N

MT GOX: Creditors Sue CEO for Damages From Bitcoin Losses
QUIN-ASH: Supreme Court Orders Pyramid Scheme Refund


N E W  Z E A L A N D

IRA NRG: Romana Denies Hiding Following Firm's Collapse
NELSON BUILDING: Fitch Affirms 'BB+' LT IDRs; Outlook Stable


T A I W A N

TAIWAN HIGH: Board Approves Major Financial Reform


                            - - - - -


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


BONKERS GROUP: In Administration; First Meeting Set For Nov. 6
--------------------------------------------------------------
Ross John McDermott -- ross@mcdermott.com.au -- of Ross McDermott
Chartered Accountant was appointed as administrator of Bonkers
Group Pty Ltd on Oct. 28, 2014.

A first meeting of the creditors of the Company will be held at
The Institute of Chartered Accountants, Level 3 Bourke Place,
600 Bourke Street, in Melbourne, on Nov. 6, 2014, at 2:00 p.m.


NGOONJUWAH ABORIGINAL: 227 Ex-Workers' Wages Remain Unclaimed
-------------------------------------------------------------
Gerry Georgatos at The Stringer reports that the liquidators of
the Ngoonjuwah Aboriginal Corporation which ran the former
Community Development Employment Projects (CDEP) in Western
Australia's Halls Creek region are searching for 227 of the former
CDEP participants. They are owed their wages, ranging from AUD11
to AUD3,682. Nearly AUD190,000 in wages remains unclaimed, the
report says.

The Stringer says Halls Creek endures high unemployment rates
among its First People only -- with high levels of homelessness
and acute impoverishment.  According to the report, Halls Creek
Healing Taskforce member, Donna Smith said that far too many of
her people are without a job and without any opportunity to secure
a job within their home region. She said this is a recipe for
disaster, for self-destruction.

"If you visit Halls Creek you will find that all the jobs, even in
supermarkets and customer service have gone to people not
originally from the district. You will not find our people, you
will not find Aboriginal people behind the service counters and
cash registers," the report quotes Ms. Smith as saying.  "We are
desperate to help our people but the support and resources are
minimal."

"With the loss of the CDEP, there was a loss of at least some
opportunity and the ability to earn something," Ms. Smith said,
notes the report.

The Registrar of the Office of Indigenous Corporations, Anthony
Beven is working towards availing the unclaimed wages to the
former CDEP participants, the report says.

Ngoongjuwah was placed into liquidation in August 2007 and
unbelievably since then, seven years ago, it has been stated that
they have been trying to track down all the former workers owed
money. ORIC stated that some payments have been made but there are
227 CDEP workers they have not been able to locate, The Stringer
relays.


=========
C H I N A
=========


CHINA: Chinese Ship Recyclers Facing Bankruptcy
-----------------------------------------------
SinoShip News reports that many ship recyclers in China are likely
to go bankrupt in the coming 12 months, the head of the nation's
ship recycling association has warned.

Maritime CEO, Xie Dehua, president of the China National Ship
Recycling Association, told SinoShip News' sister site: "Many of
China's ship recycling yards will go bankrupt next year."

Mr. Xie's thoughts echo a recent market report from ship scrapping
specialists GMS which predicted Chinese recyclers would continue
to suffer from limited business through to the end of 2015,
SinoShip News says.



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


ADDI ALLOYS: ICRA Revises Rating on INR10cr Cash Credit to C+
-------------------------------------------------------------
ICRA has revised the [ICRA]B rating assigned to the INR10.00 crore
long term cash credit facilities of Addi Alloys Private Limited to
[ICRA]C+.  ICRA has also withdrawn the [ICRA]A4 rating assigned to
the Nil(Reduced from INR4.00 crores) non fund based facilities of
AAPL.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Cash credit          10.00        [ICRA]C+;revised
                                     from [ICRA]B

   Letter of Credit      Nil         [ICRA]A4 withdrawn

The rating revision is driven by AAPL's stretched liquidity
position as reflected in frequent overdrawals of fund based
limits. The rating revision also factors in the reduction in the
company's revenues in FY'14, which saw a decline of 31% over the
previous year as well as the erosion in its net profitability
margins. The ratings factor in the company's modest scale of
operations and its weak financial profile as reflected in its high
gearing levels and modest debt coverage indicators. Moreover
AAPL's profits and cash flows are vulnerable to fluctuations in
prices of raw materials as well as cyclicality in the steel
sector. However, the rating derives comfort from the long
experience of the promoters in the steel industry and their
established relationships with key customers. Going forward, the
ability of the company to increase its scale of operations in a
profitable manner while managing the working capital intensity
will be the key rating sensitivities.

Addi Alloys Private Limited was established in the year 1990. It
is engaged in manufacturing of ingots using scrap as major raw
material. The manufacturing facility of the company is located in
Ludhiana (Punjab) and has an installed capacity of 18000 tonnes
per annum.

The company reported net loss of INR2.86 crores on an operating
income of INR49.21 crores in FY 14 against net profit of INR0.17
crores on an operating income of INR71.99 crores in FY 13.


ARN TEXTILES: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit
---------------------------------------------------------------
The rating continues to reflect the group's weak financial risk
profile, marked by high, though improving, TOLTNW ratio and weak
debt protection metrics, and large working capital requirements.
These rating weaknesses are partially offset by the promoters'
extensive experience in the fabric-trading business.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            50        CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     30        CRISIL B+/Stable (Reaffirmed)

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of ARN Textiles Pvt Ltd (ARN) and Swastik
Traders (Delhi) (ST). This is because both the entities, together
referred to as the Swastik group, have common promoters, are in
the same line of business, and are likely to extend support to
each other, if needed.

Outlook: Stable

CRISIL believes that the Swastik group will continue to benefit
over the medium term from its promoters' extensive industry
experience. The outlook may be revised to 'Positive' in case of
significant increase in the group's cash accruals, leading to a
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' if the Swastik group's financial risk
profile deteriorates further, most likely because of lengthening
of its working capital cycle.

ST, based in Delhi, was set up as a proprietorship firm in 2010 by
Mr. Rajesh Attri. The firm trades in grey fabrics. Mr. Attri and
his family have experience of over 22 years in the fabric-trading
business through group companies.

ARN, based in Delhi, was set up in 2009 by Mr. Rajesh Attri. The
company trades in grey, printed, and knitted fabrics. Mr. Attri
has experience of over 22 years in the fabric-trading business.


ASSOCIATED INSULATION: ICRA Reaffirms B INR5.5cr Cash Loan Rating
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B for the
INR5.50 crore cash credit facility of Associated Insulation
Company. ICRA has also reaffirmed the short term rating of
[ICRA]A4 for the INR5.50 crore short-term non-fund based facility
of AIC.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Cash Credit           5.50        [ICRA]B reaffirmed

   Bank Guarantee/
   Letter of Credit      5.50       [ICRA]A4 reaffirmed

The ratings continue to remain constrained by the AIC's small
scale of operations and weak financial profile characterized by
small net worth base, high gearing levels and moderate coverage
indicators. The ratings are further constrained by the firm's high
working capital intensity due to elongated receivables which
adversely affects its liquidity position. The ratings also takes
in to account the competitive pressures from established players,
vulnerability of profitability to adverse movements in key raw
materials due to the fixed price nature of contracts; the high
market risk given any slowdown in economic activates and
consequent sluggishness in growth in the end user industries. ICRA
also notes that AIC is a partnership firm and any significant
withdrawals from the capital account could adversely impact its
net worth and thereby the capital structure.

The ratings, however, favorably factor in the extensive experience
of the partners and long track record of the firm in thermal
insulation work; the firm's reputed client profile and track-
record of repeat business; and moderate order book position of
~INR27 crore as on September 2014 (~2.5 times of FY14 OI).

Associated Insulation Company (AIC) was set up as a partnership
firm in the year 1986 by Mr. M. V. Dhuvad and Mr. C.V. Dhuvad. It
undertakes thermal insulation works for power plants, oil
refineries, petro chemicals units, fertilizer plants and other
manufacturing units with over two decades of experience. AIC is
approved and registered as a service provider with reputed Indian
and overseas consultants namely Engineers India Limited, Projects
and Development India Ltd., Tata Consulting Engineering, Pitsburgh
Corning (USA), Foster Wheeler Ltd. (USA), Motherwell (UK) etc. The
firm operates from Vadodra in Gujarat.

In FY14, AIC reported an operating income of INR11.51 crore and
profit after tax of INR0.80 crore as against an operating income
of INR14.83 crore and profit after tax of INR0.85 crore during
FY13.


BATRA EXPORTS: CRISIL Cuts Rating on INR100MM Cash Credit to D
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Batra Exports (BE) to 'CRISIL D' from 'CRISIL B+/Stable'.

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Cash Credit              100         CRISIL D (Downgraded from
                                        'CRISIL B+/Stable')

The downgrade in rating reflects irregularities of more than 30
days in BE's cash credit facility, caused by liquidity crunch,
which was on account of inventory losses suffered in 2013-14
(refers to financial year, April 1 to March 31).

The rating reflects BE's working-capital-intensive operations,
weak financial risk profile, and exposure to intense competition
in the highly fragmented industry. These rating weaknesses are
partially offset by the extensive industry experience of BE's
partners in the rice industry.

BE was set up in 2010 as a partnership firm by Mr. Surinder Kumar
and Mr. Sahil Batra for milling and selling of parboiled, steamed,
and raw basmati and non-basmati rice.


BHARAT CONSTRUCTION: CRISIL Reaffirms B- INR120M Cash Loan Rating
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Bharat Construction (BC;
part of the Bharat group) continue to reflect the Bharat group's
stretched liquidity, driven by its stretched working capital cycle
and other investments made in its associate entity and joint
venture, intense competition in construction industry.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         230       CRISIL A4 (Reaffirmed)
   Cash Credit            120       CRISIL B-/Stable (Reaffirmed)

These ratings weaknesses are partially offset by the extensive
experience of the Bharat group's promoters in the construction
business, and its moderate financial risk profile.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BC and its group entity, Bharat Hydel
Projects Pvt Ltd (BHPPL), together referred to as the Bharat
group, herein. This is because both these entities are under a
common management, in the same line of business, and share common
resources to implement orders.

Outlook: Stable

CRISIL believes that the Bharat group will benefit from its
promoters' extensive experience in the construction industry. The
outlook may be revised to 'Positive' in case of improvement in the
group's liquidity, most likely caused by improvement in its
receivables, or in case of any larger-than-expected capital
infusion by the promoters and successful liquidation of existing
investments. Conversely, the outlook may be revised to 'Negative'
in case of further weakening of the group's liquidity and the
resulting deterioration in its financial risk profile because of
large-than-expected working capital requirements, declining
revenue and cash accruals, or the undertaking of any large capital
expenditure (capex) programme.

Update
The Bharat group reported around 19 per cent year-on-year growth
in revenue in 2013-14 (refers to financial year, April 1 to
March 31) driven by healthy order flow in the road construction
segment. The group registered revenue of around INR200 million in
the first quarter of 2014-15 and has a healthy order book position
of more than INR3 billion to be executed over the next 2 years.
Its operating profitability remained around 15 per cent for 2013-
14 in line with the previous year. CRISIL believes that the Bharat
group's operating profitability will remain moderate at 14 to 15
per cent per annum albeit susceptible to price escalation in raw
materials.

The Bharat group's financial risk profile continues to remain
moderate, marked by large net worth of around INR4 billion and low
gearing of 0.60 times as on March 31, 2014. It has healthy debt
protection metrics as reflected by interest coverage ratio of 2.53
times and Net cash accruals total debt ratio of 0.20 times for
2013-14 owing to healthy accruals. CRISIL believes that the Bharat
group's financial risk profile will remain moderate owing to large
net worth and absence of large debt-funded capex plans over the
medium term.

BHPPL is a private limited company set up by Mr. Rajeev Garg and
Mr. RS Panwar to enable the Bharat group to participate in large
tenders and contracts in the road and hydro-electric power (HEP)
construction industry.

BC is a partnership firm that undertakes road construction and
construction of HEP projects in Uttarakhand and Himachal Pradesh.
The firm's equal-stake holding partners are Mr. Garg and Mr.
Panwar.


CHINTAMANI COMMODITIES: ICRA Cuts Rating on INR6cr FB Loan to 'D'
-----------------------------------------------------------------
ICRA has revised the long term rating on the INR0.72 crore
(reduced from INR1.02 crore) term loans, INR0.34 crore (enhanced
from INR0.04 crore) unallocated fund based limits and INR6crore
fund based bank facilities of Chintamani Commodities to [ICRA]D
from [ICRA]B+. ICRA has also revised the short term rating on the
INR2 crore non-fund based facilities of Chintamani Commodities to
[ICRA]D from [ICRA]A4.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Term Loan               0.72        [ICRA]D; Revised from
                                       [ICRA]B+

  Fund based facilities    6.00        [ICRA]D; Revised from
                                       [ICRA]B+

  Unallocated fund
  based limits             0.34        [ICRA]D; Revised from
                                       [ICRA]B+

  LC/BG                    2.00        [ICRA]D; Revised from
                                       [ICRA]A4

ICRA's ratings factors in instances of delays in debt servicing by
Chintamani Commodities in the recent past. The ratings continue to
factor in the limited track record and small scale of operations
of the firm in its core business of manufacturing copper rods.
These factors coupled with the highly competitive and low value
added nature of the business, coupled with limited control over
input prices have resulted in low net margins and weak cash flows.
Further, the firm has a relatively high gearing, weak coverage
indicators and stretched liquidity position as reflected in the
full utilization of its cash credit limits. However the ratings
are supported by the extensive experience of the firm's partners,
who have more than three decades of experience in the industry and
the order backed purchases by the firm, which limits the exposure
of the firm's profitability to any adverse movement in raw
material prices. Going forward, a track record of timely debt
servicing and a sustained improvement in the company's liquidity
position will be the key rating sensitivities.

Chintamani Commodities is a part of the Chintamani group that was
set up by Mr. Chintamani Sharma in 1981. The firm was set up in
2009 by Mr. Bakul Sharma (Mr. Chintamani Sharma's grandson) as a
sole proprietorship concern for trading in copper rods. In 2010
the proprietorship firm was converted into a partnership firm with
Mr. Bakul Sharma (60%) and his father, Mr. Devender Kumar Sharma
(40%) as partners. The firm's manufacturing facility is located in
Delhi and has a capacity to manufacture 4000 metric tonnes of
oxygen free copper rods. These rods find application in defense
and power industries.

Recent Results
Chintamani Commodities reported, on a provisional basis, a PAT of
INR0.36 crore on an operating income of INR47.01 crore in FY'14,
as against a PAT of INR0.40 crore on an operating income of
INR46.01 crore in FY'13.


CON-TECH PROJECTS: CRISIL Assigns B Rating to INR50MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Con-Tech Projects and Infra Pvt Ltd.

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Cash Credit              50          CRISIL B/Stable

   Proposed Long Term
   Bank Loan Facility       50          CRISIL B/Stable

The rating reflects CTPL's small scale and working capital
intensive nature of operations, and its exposure to risks relating
to saleability and implementation of its ongoing commercial real
estate project. These rating weaknesses are partially offset by
the extensive experience of the company's promoters in the civil
construction and real estate industry.

Outlook: Stable

CRISIL believes that CTPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
increases its cash accruals and manages its working capital cycle
efficiently, leading to an improvement in its financial risk
profile, particularly its liquidity. Conversely, the outlook may
be revised to 'Negative' if CTPL undertakes a substantial debt-
funded capital expenditure programme, or if its revenue and
operating profitability decline, or if its working capital cycle
lengthens, leading to deterioration in its financial risk profile,
especially its liquidity.

CTPL was established in January 2010 by Mr. Kiran Wadkar in
Kolhapur (Maharashtra). The company undertakes civil construction
on a sub-contract basis for private entities. It also undertakes
commercial real estate development in Kolhapur.

CTPL recorded, on a provisional basis, a net loss of INR3.3
million on net sales of INR66.1 million for 2013-14 (refers to
financial year, April 1 to March 31); it had reported a profit
after tax of INR0.3 million on net sales of INR3.3 million for
2012-13.


ENMAS GB: CRISIL Cuts Rating on INR400MM Bank Guarantee to D
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Enmas
GB Power Systems Projects Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'.

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Bank Guarantee          291.2        CRISIL D (Downgraded from
                                        'CRISIL A4+')

   Bank Guarantee          400          CRISIL D (Downgraded from
                                        'CRISIL BB/Stable')

   Cash Credit              60          CRISIL D (Downgraded from
                                        'CRISIL A4+')

   Cash Credit              40          CRISIL D (Downgraded from
                                        'CRISIL A4+')

   Letter of Credit        200          CRISIL D (Downgraded from
                                        'CRISIL BB/Stable')

The rating downgrade reflects the devolvement of EGB's non-fund
based facilities, which have remained unpaid for more than 30
days. This has been caused by the company's weak liquidity driven
by its stretched working capital cycle due to delays in collection
of receivables.

EGB has working-capital-intensive operations, is exposed to
intense competition in the turnkey engineering, procurement, and
construction (EPC) power projects business, and is susceptible to
volatility in input prices. However, the company benefits from its
established market position in the business of erecting and
commissioning boilers and its promoters' long standing industry
experience.

EGB commissions boilers and manufactures non-pressure parts used
in boilers. It has diversified into EPC projects, boiler-turbine
generator projects, and balance-of-plant projects for power plants
with output capacity of up to 80 megawatts.


FRENDI FASHIONS: CRISIL Reaffirms B+ INR20M Overdraft Loan Rating
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Frendi Fashions Pvt Ltd
continue to reflect Frendi's below-average financial risk profile,
marked by high gearing and weak debt protection metrics. The
ratings also factor in the company's modest scale of operations in
the highly fragmented textile industry, geographical concentration
in its revenue profile, and large working capital requirements.
These rating weaknesses are partially offset by the extensive
industry experience of Frendi's promoters.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bill Discounting        75       CRISIL A4 (Reaffirmed)
   Foreign Letter of
   Credit                   6       CRISIL A4 (Reaffirmed)
   Overdraft Facility      20       CRISIL B+/Stable (Reaffirmed)
   Packing Credit          40       CRISIL A4 (Reaffirmed)
   Proposed Packing         9       CRISIL A4 (Reaffirmed)
   Credit

Outlook: Stable

CRISIL believes that Frendi will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company achieves a
sustained increase in its revenue and improvement in its
profitability, leading to a substantial increase in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
Frendi undertakes a large debt-funded capital expenditure (capex)
programme or its working capital requirements increase, resulting
in weakening of its financial risk profile.

Update
Frendi reported operating revenue of INR474 million for 2013-14
(refers to financial year, April 1 to March 31), a year-on-year
growth of 38 per cent. Its revenue is expected to grow moderately
over the medium term driven by healthy demand. However, its
operating margin remains susceptible to volatility in raw material
prices. The margin declined to 5.2 per cent in 2013-14 from 7.0
per cent in 2012-13, and is expected to remain at a similar level
over the medium term on account of high processing costs, as the
company does not own dyeing capacities.

Frendi's financial risk profile is below average marked by high
gearing of 1.96 times as on March 31, 2014. The gearing is
expected to remain at a similar level over the medium term due to
the company's small net worth and low accretion to reserves. Its
debt protection metrics remained weak, with net cash accruals to
total debt and interest coverage ratios of 0.08 times and 2 times,
respectively, for 2013-14. CRISIL believes that Frendi's financial
risk profile will remain below-average over the medium term,
driven by low cash accruals and reliance on bank debt for meeting
incremental working capital requirements.

Frendi's liquidity is moderate, with annual net cash accruals
estimated at INR11 million to INR14 million, against no term loan
obligations, over the medium term. In the absence of any major
debt-funded capex plans, the company is expected to remain term-
debt-free over this period. Its bank limits were utilised at an
average of 64.74 per cent during the seven months through
July 2014. It had an unencumbered cash and bank balance of INR5
million as on March 31, 2014. CRISIL believes that Frendi's
liquidity will remain moderate over the medium term in the absence
of large debt-funded capex plans.

Frendi was set up in 1992 as a proprietorship firm, and was
reconstituted as a private limited company in 1995. The company,
based in Chennai, manufactures ready-made garments (casual wear),
which it exports to the western market.


GOLDEN APPLE: CRISIL Assigns 'B' Rating to INR77.5MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Golden Apple (GA).

                         Amount
   Facilities           (INR Mln)        Ratings
   ----------           ---------        -------
   Term Loan               77.5          CRISIL B/Stable
   Cash Credit             39.2          CRISIL B/Stable
   Proposed Long Term
   Bank Loan Facility      53.3          CRISIL B/Stable

The rating reflects the firm's small scale of business marked by
working-capital-intensive operations. The rating also reflects
GA's exposure to risks related to volatility in price of its
primary product i.e. apple. These rating weaknesses are partially
offset by partners' extensive experience in apple-trading and
cold-storage business.

Outlook: Stable

CRISIL expects GA to maintain its credit risk profile backed by
its promoters' experience in the industry. The outlook may be
revised to 'Positive' with more than expected increase in scale of
operations or improved operating profitability while efficiently
managing its working capital requirements. Conversely, the outlook
may be revised to 'Negative' in case of higher than expected
increase in working capital requirements or lower than expected
profitability leading to deterioration in its financial risk
profile.

GA is engaged in the controlled-atmosphere (CA) storage and
trading of apples and commenced its commercial operations from
2011-12. The firm is promoted and managed by Mr. Ehsan Javed
along-with 2 other partners.

GA is estimated to have made a net-loss of INR11.1 million on an
operating income of INR65.9 million for 2013-14, against a net-
loss of INR13.6 million on an operating income of INR13.4 million
for 2012-13.


INLAND MARINE: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Inland Marine Works Pvt
Ltd continue to reflect IMWPL's working-capital-intensive
operations, and below-average financial risk profile marked by a
stretched liquidity, a small net worth, and moderate gearing
albeit adequate debt protection metrics. These rating weaknesses
are partially offset by IMWPL's moderate order book offering
medium-term revenue visibility, financial support extended by the
promoters and adequate operating capabilities in the ship building
industry.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee        100        CRISIL A4 (Reaffirmed)
   Cash Credit            50        CRISIL B+/Stable (Reaffirmed)
   Proposed Bank
   Guarantee              30        CRISIL A4 (Reaffirmed)

Outlook: Stable

CRISIL believes that IMWPL will sustain its credit risk profile
over the medium term, supported by its moderate order book and
need-based fund support from promoters. The outlook may be revised
to 'Positive' in case the company registers significant
improvement in its liquidity on the back of higher-than-expected
cash accruals from operations coupled with faster realization of
receivables. Conversely, the outlook may be revised to 'Negative'
in case any unprecedented stretch in IMWPL's working capital cycle
leads to pressure on the company's liquidity or if IMWPL
undertakes a significant debt-funded capital expenditure programme
resulting in deterioration in its capital structure.

IMWPL was set up in 1990 by Mr. C S Ashok and his associates, who
have more than three decades of experience in ship building and
related activities. The company, based in Port Blair (Andaman &
Nicobar Islands), is part of the Jadwet group, which has an
established presence for over 70 years in the region. IMWPL
constructs service vessels for the Indian Navy; the vessels are
used by the navy to carry personnel between war ships and docks.


MALABAR FOOD: ICRA Suspends B+ Rating on INR8.17cr Bank Loan
------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ and short term
rating of [ICRA]A4 assigned to the INR8.17 crore bank facilities
of Malabar Food Stuff Company.

The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm. Firm Profile Malabar Food Stuff Company) is primarily
engaged in exporting of spices and consumer packed spice products.

The firm is established in the year 2003 and has its processing
facility at Thrissur, Kerala. The firm is mainly concentrating in
the export of nutmeg, cardamom and dry ginger and also is into the
export of pepper, saffron etc in smaller quantities. The firm also
sells processed spices and masala powder in consumer packs under
the brand name Malabar. The majority of the revenue for the firm
comes from export of spices primarily to Dubai. The promoter and
family hold 100.0% ownership of MFSC.


MANMEET ALLOYS: ICRA Revises Rating on INR15cr FB Loan to B-
------------------------------------------------------------
ICRA has revised the rating assigned to the INR15.00 crore
(reduced from 19.06 crore) long term cash credit facilities of
Manmeet Alloys Private Limited to [ICRA]B- from [ICRA]B.

                            Amount
   Facilities            (INR crore)     Ratings
   ----------            -----------     -------
   Fund based facilities    15.00        [ICRA]B-; Revised from
                                         [ICRA]B

The rating revision is driven by MAPL's stretched liquidity
position as reflected in frequent overdrawals of fund based
limits. The rating revision also factors in the reduction in the
company's revenues in FY'14, which saw a decline of 17% over the
previous year as well as the erosion in its net profitability
margins. The ratings factor in the company's modest scale of
operations and its weak financial profile as reflected in its high
gearing levels and modest debt coverage indicators. Moreover
MAPL's profits and cash flows are vulnerable to fluctuations in
prices of raw materials as well as cyclicality in the steel
sector. However, the rating derives comfort from the long
experience of the promoters in the steel industry and their
established relationships with key customers. Going forward, the
ability of the company to increase its scale of operations in a
profitable manner while managing the working capital intensity
will be the key rating sensitivities.

MAPL was established in 2005 and manufactures rounds using ingots
and billets as major raw materials. The manufacturing facility of
the company is located in Ludhiana (Punjab) and has an installed
capacity of 20000 tonnes per annum.

The company reported, on a provisional basis, a net profit of
INR0.07 crore on an operating income of INR54.76 crore in FY'14,
as against a net profit of INR0.29 crore on an operating income of
INR66.76 crore in FY'13.


MERRITRONIX PVT: CRISIL Reaffirms B+ Rating on INR22.5M Term Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Merritronix Pvt Ltd
(MPL) continue to reflect MPL's small scale of operations in the
intensely competitive telecommunication equipment industry, and
the company's large working capital requirements.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Bank Guarantee         12       CRISIL A4 (Reaffirmed)
   Cash Credit            20       CRISIL B+/Stable (Reaffirmed)
   Letter of Credit       20       CRISIL A4 (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility      5.5     CRISIL B+/Stable (Reaffirmed)
   Term Loan              22.5     CRISIL B+/Stable (Reaffirmed)

The ratings of the company are also constrained on account of its
below-average financial risk profile marked by small net-worth and
weak debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of MPL's promoters in
the telecommunication industry, and its established relations with
customers.

Outlook: Stable

CRISIL believes that MPL will continue to benefit over the medium
term from its promoters' extensive industry experience, and its
established relations with customers. The outlook may be revised
to 'Positive' if there is a substantial and sustained increase in
the company's scale of operations and profitability margins, or
there is a sustained improvement in its working capital cycle.
Conversely, the outlook may be revised to 'Negative' in case of a
steep decline in the company's profitability margins, or
significant deterioration in its capital structure caused most
likely by a stretch in its working capital cycle.

MPL, incorporated in 1988, manufactures accessories for
telecommunication cable jointing kits. The company also provides
electronics manufacturing services, which include assembling of
printed circuit board, box building, system integration and
testing. The company is managed by Mr. D Amarnath.


MOS METRO: CRISIL Lowers Rating on INR340MM LT Loan to 'D'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Mos Metro India Pvt Ltd to 'CRISIL D' from 'CRISIL BB-/Stable'.
The rating downgrade reflects instances of delay by MIPL in
servicing its term debt; the delays have been caused by the
company's weak liquidity.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Long Term Loan          340         CRISIL D (Downgraded from
                                       'CRISIL BB-/Stable')

MIPL also has a weak financial risk profile, marked by high
gearing and weak debt protection metrics. Moreover, it has
customer concentration in its revenue profile and is exposed to
project implementation risks. However, it benefits from the
extensive experience of its promoters in the engineering industry
and synergies with its parent, Mosmetrostroy (FZE).

MIPL, based in Chennai, was established in 2011 by Mosmetrostroy
(FZE). The company is a provider of railway, metro construction,
and civil engineering services in India. It has been subcontracted
to undertake tunnelling work for the Chennai Metro Rail Project by
the OJSC Mosmetrostroy-Gammon India consortium.


OYO CERAMIC: ICRA Assigns B+ Rating to INR4.86cr Term Loan
----------------------------------------------------------
A rating of [ICRA]B+ has been assigned to the INR7.36 crore long-
term, fund based facilities of Oyo Ceramic Pvt. Ltd. A rating of
[ICRA]A4 has also been assigned to the INR1.80 crore short term
non-fund based facility of OCPL.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Cash Credit           2.50        [ICRA]B+ assigned
   Term Loan             4.86        [ICRA]B+ assigned
   Non fund based-
   Bank Guarantee        1.80        [ICRA]A4 assigned
   Bill discounting      1.25        [ICRA]A4 assigned

The assigned ratings are constrained by high levels of uncertainty
related to the level of product off take and commercial success,
possible stress on debt servicing ability in case ramp up of cash
flows is lower than anticipated. The ratings are further
constrained by the vulnerability of the company's profitability
post-commissioning, to the cyclicality inherent in the real estate
industry, which is the main consuming sector; and to the adverse
fluctuations in prices of raw materials and natural gas, which is
the major fuel for ceramic tiles manufacturers. The ratings also
take into consideration the highly competitive ceramic industry
with presence of large established organized tile manufacturers as
well as unorganized players in Morbi (Gujarat) resulting in
limited pricing flexibility. The ratings also take into account
the possible stress on the financial profile given the debt funded
nature of the project and high debt repayments scheduled in the
near term.

The ratings, however, favourably take into account long standing
experience of the promoters in the ceramic industry and the
expected marketing support from the group company engaged in the
similar line of business. The ratings also take into account the
locational advantage enjoyed by the company due to its presence in
Morbi (Gujarat), India's ceramic hub giving it easy access to raw
material.

Incorporated in February 2014, Oyo Ceramic Private Limited (OCPL)
is setting up a digitally printed ceramic wall tiles manufacturing
facility at Morbi, Gujarat with planned installed capacity of
30,000 MTPA. The company proposes to manufacture digitally printed
ceramic wall tiles of sizes 12" x 18", and 12" x 24". The
promoters of the company have experience in ceramic industry owing
to their association with the group concerns like M/s Lexo
Ceramic, Blue Lake Ceramic, Wipro Marketing and Romex Tiles Pvt.
Ltd.

Prospects
Going forward, the ability of the company to successfully
commission the project in a timely manner, stabilise production
and scale up in a profitable manner will be the key rating
sensitivities. The high reliance on debt funding and its
associated servicing burden is expected to keep the liquidity
position of the company stretched over the near to medium term.


PERCEPT LIMITED: ICRA Withdraws 'D' Rating on INR18cr FB Loan
-------------------------------------------------------------
ICRA has withdrawn the [ICRA]D rating assigned to the INR18.0
crore, long-term, fund-based facilities of Percept Limited as the
company has fully redeemed the instrument. There is no amount
outstanding against the rated instrument.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Long-term, fund-      18.00        [ICRA]D withdrawn
   based facilities


PRIME HITECH: CRISIL Assigns 'D' Rating to INR775MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Prime Hitech Engineering Ltd (PHEL; part of the
Prime group).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Term Loan               775          CRISIL D
   Letter of Credit        100          CRISIL D
   Bank Guarantee          100          CRISIL D
   Cash Credit             100          CRISIL D

The ratings reflect delays by the PHEL in servicing its term debt,
instances of over-utilisation of its working capital limits, and
devolvement of its letters of credit; all this was because of the
group's weak liquidity. The weak liquidity was driven by an
operating loss of around INR20 million in 2013-14 (refers to
financial year, April 1 to March 31) because of its sub-optimal
performance during its initial year of operations.

The Prime group also has a weak financial risk profile, marked by
high gearing and weak debt coverage metrics, and large working
capital requirements. However, the group benefits from its
demonstrated ability to service its diversified and reputed
clientele, its strong market position in the specific power
equipment segment, and its exclusive marketing tie-ups with
reputed global manufacturers.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PCI Limited (PCI) and its subsidiaries-
PCI Middle East FZE (100 per cent subsidiary), PCI Europe GmbH
(100 per cent), PCI Asia Pacific Pvt Ltd (100 per cent), and PHEL
(51 per cent). This is because all these entities, collectively
referred to as the Prime group, have common promoters, the same
marketing network, and strong business and financial linkages with
each other. CRISIL has not consolidated Prime Meidien Ltd (PML;
earlier Prime Electric Ltd), which was earlier considered part of
the Prime group as Japan-based Meidensha Corporation has infused
fresh equity in PML. There is no financial support provided by PML
to PCI or PHEL. PML has arm's length dealings with PHEL.

PCI was set up in 1986 by Mr. Surinder Mehta; it is the flagship
company of the Prime group. It provides technology-related
solutions to various industries, especially the power sector. Its
activities include marketing, distribution, and after-sale service
support for power testing, maintenance, conditioning equipment,
and machine tools. The company also has a unit in Manesar
(Haryana) for manufacturing precision equipment and investment
castings (constituting 5 to 6 per cent of its sales). Furthermore,
it owns three windmills with a combined capacity of 4.5 megawatts
in Kutch (Gujarat).

PHEL was incorporated in April 2010 to carry out fabrication work
of transformers (backward integration for PML), manufacture
turbine parts and drill bits for oil exploration facilities, and
undertake mining operations. It has been set up in partnership
with a Russian company. PCI owns around 51 per cent of PHEL, its
promoters own around 19 per cent, and the Russian partner owns the
rest.


S.L.V. STEELS: CRISIL Reaffirms D Rating on INR198MM LT Loan
------------------------------------------------------------
CRISIL's ratings on the bank facilities of S.L.V. Steels and
Alloys Pvt Ltd continue to reflect instances of delay by SLV in
servicing its term debt; the delays have been caused by the
company's weak liquidity.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit             180        CRISIL D (Reaffirmed)
   Letter of Credit         60        CRISIL D (Reaffirmed)
   Long Term Loan          198        CRISIL D (Reaffirmed)

SLV also has a weak financial risk profile, marked by a modest net
worth, a high gearing, and inadequate debt protection metrics.
Moreover, the company has a small scale of operations in the
intensely competitive sponge iron industry, and large working
capital requirements. However, SLV benefits from its improving
operating efficiency and the continued fund support that it
receives from its promoters and associate concerns.

SLV, incorporated in 2008, and has set up two 100-tonnes-per-day
sponge iron plant at Ananthpur district (Andhra Pradesh). The
plants became fully operational in September 2011. SLV is promoted
by Mr. Shivaram Prasad and his wife, Mrs. Shankula Devi


SAMRIDDHI AGRO: CRISIL Assigns B- Rating to INR46.1MM Bank Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank loan facilities of Samriddhi Agro Foods Pvt Ltd (SAFPL).

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Term Loan               43.9        CRISIL B-/Stable
   Cash Credit             30          CRISIL B-/Stable
   Proposed Long Term
   Bank Loan Facility      46.1        CRISIL B-/Stable

The rating reflects SAFPL's below-average financial risk profile,
and exposure to risks related to its nascent stage of operations
in a competitive industry. These rating weaknesses are partially
offset by the considerable experience of SAFPL's promoter in the
agro-based industry.

Outlook: Stable

CRISIL believes that SAFPL will continue to benefit over the
medium term from its promoter's considerable experience in the
agro-based industry. The outlook may be revised to 'Positive' if
the company registers more-than-expected increase in its scale of
operations and accruals, leading to improvement in its financial
risk profile, particularly in its liquidity. The outlook may be
revised to 'Negative' if SAFPL generates significantly low
accruals, or in case of lengthening of its working capital cycle,
or if it undertakes a significant debt-funded capital expenditure
programme, leading to pressure on its liquidity.

SAFPL, incorporated in 2012, has a flour mill in Ranchi
(Jharkhand). The day-to-day operations of the mill are managed by
Mr. Amit Sekhsaria.


SARASWATI INDUSTRIES: CRISIL Reaffirms B Rating on INR49MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Saraswati
Industries (SI) continues to reflect SI's weak financial risk
profile, marked by a leveraged capital structure, a small net
worth, and weak debt protection metrics. The rating also factors
in the firm's low bargaining power with principals, and exposure
to intense competition in the automobile dealership market. These
weaknesses are partially offset by the extensive industry
experience SI's partners and its diversified supplier base.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           49         CRISIL B/Stable (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility     6         CRISIL B/Stable(Reaffirmed)

Outlook: Stable

CRISIL believes that SI will continue to benefit over the medium
term from its established relationships with its principals and
its partners' industry experience. The outlook may be revised to
'Positive' if the firm's operating profitability improves and if
there is an equity infusion by its partners, resulting in
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' in case of a significant decline in SI's
revenues or operating margins, resulting in deterioration in its
debt protection metrics.

Update
The revenues of the firm registered a 13 per cent year-on-year
growth to around INR660 million in 2013-14 (refers to financial
year, April 1 to March 31) which was driven by healthy volume
growth in the sales of tractors along with sales pick up of
tractors of New Holland India Ltd. CRISIL believes that SI's scale
of operations will continue to grow at a moderate pace over the
medium term supported by its strong network of 35 dealers, and its
position as the sole distributor of Mahindra & Mahindra Ltd (M&M;
rated 'CRISIL AAA/Stable/CRISIL A1+') and New Holland India Ltd
(New Holland) tractors in Mirzapur and Shona districts of Uttar
Pradesh. The company's operating margins, although stable,
remained low at around 1.2 per cent in 2013-14 due to low
negotiating power with its principals and intense competition in
the vehicle dealership business.

The firm's operations remain moderately working capital intensive
as reflected in its gross current asset (GCA) of around 55 days as
on March 31, 2014. These GCA days emanate from the firm's
inventory levels of around 30 days and receivables cycle of 15-20
days. As a result, the company's average bank limit utilization
has been moderate at around 83 per cent, for the 8 months ended
July 2014.

The firm's financial risk profile remains weak marked a low net
worth of around INR11 million and high total outside liabilities
to tangible net worth ratio of around 8.7 times as on March 31,
2014. Low profitability levels have resulted in a weak interest
coverage ratio of about 1.4 times in 2013-14 which is expected to
remain at similar levels over the medium term.

SI is a partnership firm established in July 2009 and founded by
Mr. Satyam Agarwal and Mrs. Shyama Agarwal. The firm is a
distributor of tractors manufactured by M&M and New Holland and
passenger cars of General Motors India Pvt Ltd. SI is based in
Mirzapur (Uttar Pradesh).


SB LIFESPACES: CRISIL Reaffirms B+ Rating on INR100MM Bank Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of SB Lifespaces
Pvt Ltd continues to reflect SBLPL's exposure to implementation-
related risks associated with its ongoing residential-cum-
commercial real estate project and the susceptibility of its
revenue and earnings to cyclicality inherent in the real estate
industry. These rating weaknesses are partially offset by the
extensive experience of SBLPL's promoters in the real estate
industry.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Proposed Long Term     100       CRISIL B+/Stable (Reaffirmed)
   Bank Loan Facility

Outlook: Stable

CRISIL believes that SBLPL will maintain its business risk profile
over the medium term, supported by its promoters' established
track record in the real estate sector. The outlook may be revised
to 'Positive' if SBLPL generates substantial cash flows from
operations, driven most likely by accelerated bookings and
corresponding increase in customer advances. Conversely, the
outlook may be revised to 'Negative' if subdued demand for real
estate translates into slow bookings for SBLPL's project,
resulting in low customer advances.

SBLPL, incorporated in August 2011 by Mumbai-based Mr. Kirit
Wadhwana and his family, is developing a residential-cum-
commercial real estate project, Sandeep Heights, at Nallasopara in
Thane (Maharashtra).


SEINUMERO NIRMAN: CRISIL Reaffirms B Rating on INR57.8M Term Loan
-----------------------------------------------------------------
CRISIL rating on the bank facilities of Seinumero Nirman Pvt Ltd
continues to reflect the company's modest scale of operations in
the competitive metal components manufacturing industry. The
ratings also reflect the working capital intensive nature of the
company's operations and its levered capital structure. These
rating weaknesses are mitigated by the extensive experience of
SNPL's promoters in the industry, coupled with long relationships
with customers and comfortable order position.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           50         CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    42.2       CRISIL B/Stable (Reaffirmed)

   Term Loan             57.8       CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that SNPL will benefit over the medium term from
extensive industry experience of its promoters and established
customer relationships. The outlook may be revised to 'Positive'
in of substantial improvement in the company's capital structure
most likely through infusion of equity while maintaining steady
growth in scale of operations and cash generation from business.
Conversely, the outlook may be revised to 'Negative' if
unprecedented delay in realization of receivables leads to
deterioration of liquidity or a higher than anticipated debt-
funded capital expenditure (capex) strains the financial profile.

Update
Due to continued subdued demand from the domestic auto-component
industry, the company increased its focus on exports to overseas
auto-component and hydraulic component manufacturers like Magna
Power Crane and Eton Technologies. Consequently, the company
maintained its turnover at about INR242 million and operating
margin at 19 per cent in 2013-14 (refers to the financial year,
April 1 to March 31). The turnover is expected to improve to over
INR320 million in 2014-15, while maintaining the operating margin
on the back of a comfortable order book from the overseas clients.

SNPL's financial risk profile continues to remain constrained by a
levered capital structure. The company has a modest networth of
about INR24 million and a gearing of about 5.5 times as on
March 31, 2014. The promoters have extended about INR46 million of
funds to the company, which is expected to be converted into
equity upon receipt of appropriate regulatory approvals. Such a
conversion along with additional need-based financial support from
promoters to fund incremental working capital requirements arising
from growth will be crucial for improvement in the capital
structure and liquidity of the company and hence will remain a key
rating sensitivity factor over the medium term. The company's
liquidity is constrained by the working capital intensity of its
operations. Due to ramp-up in scale of operations and longer
credit provided to export clients, working capital cycle has
increased to gross current assets of about 250 days as on March
31, 2014 from about 180 days a year earlier. Stabilization of the
working capital cycle over the near term along with availability
of sufficient bank lines will aid the company in maintaining its
liquidity over the medium term.

SNPL was incorporated in 1997 by Mr. C L Mengale. The company is
engaged in manufacturing of axle auto components, engine
components and hydraulic components. SNPL has two manufacturing
units in Pune district (Maharashtra). Mr. Parag Mengale and Mr.
Tushar Mengale, sons of Mr. C L Mengale, are actively involved in
managing the company's operations.


SHALAK EATABLE: CRISIL Assigns B Rating to INR167MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Shalak Eatable Products Pvt Ltd (SEPL).

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Overdraft Facility       15         CRISIL B/Stable
   Term Loan               167         CRISIL B/Stable

The rating reflects SEPL's exposure to risks related to
implementation and funding of its project. This rating weakness is
partially offset by the extensive experience of SEPL's promoters
in the food processing industry and the healthy demand prospects
for the company's products.

Outlook: Stable

CRISIL believes that SEPL will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company completes it project on time
and within the budgeted cost, and generates substantial cash
accruals during the initial phase of its operations. Conversely,
the outlook may be revised to 'Negative' if SEPL faces time or
cost overrun in its project or generates low cash accruals during
the initial phase of its operations or undertakes additional debt-
funded capital expenditure, resulting in pressure on its
liquidity.

SEPL, incorporated in 2008, is setting up a manufacturing unit for
producing pellet snacks at Mohammadpur in Lucknow (Uttar Pradesh).
The company is managed by Mr. Rajesh Bansal and Mr. Yogesh Bansal.


SHIV KRUPA: ICRA Reaffirms 'B' Rating on INR4.50cr Cash Credit
--------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B rating assigned to the long term
fund based facilities of INR6.30 crore of Shiv Krupa Industries.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Tern Fund
   Based Cash Credit     4.50        [ICRA]B reaffirmed

   Long Tern Fund
   Based-Term Loan       1.80        [ICRA]B reaffirmed

The reaffirmation of the rating takes into account the small scale
of firm's operations as well as vulnerability of profitability to
adverse movements in raw material prices which are subject to
seasonality and crop harvest. The rating also takes into account
limited value additive nature of firm's operations and highly
competitive and fragmented industry structure given the low entry
barriers as well as the exposures to the regulatory risks with
regards to MSP for raw cotton and cotton exports. ICRA also takes
note that SKI is a partnership concern and risks inherent in
partnership firm with respect to capital withdrawals and its
potential impact on credit profile as well as on continuity of
organization.

The rating, however, continues to favorably take into account
favorable location in Tankara, Gujarat- an area with easy
availability of raw cotton and moderately diversified portfolio of
the firm with presence in seed crushing operations.

Shiv Krupa Industries (SKI) was incorporated as a partnership firm
in October 2012 and is engaged in the cotton ginning and pressing
and oil crushing operations. The promoters of the firm have past
experience in cotton ginning and pressing industry through their
earlier association with other firms as partners and as key
operating personnel in past. The firm commenced its commercial
operations from October 2013.

Recent Results
For the year ended March 31st, 2014, SKI reported an operating
income of INR25.95 crore and a profit after tax of INR0.09 crore.


SHRI BIJASANI: CRISIL Reaffirms B Rating on INR70MM Cash Credit
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Shri Bijasani Cotton
Fiber's (SBCF's) weak financial risk profile, marked by a small
net worth, moderate gearing and weak debt protection metrics.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit           70         CRISIL B/Stable (Reaffirmed)

   Proposed Cash
   Credit Limit          12.5       CRISIL B/Stable (Reaffirmed)

   Term Loan             15         CRISIL B/Stable  (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    32.5        CRISIL B/Stable (Reaffirmed)

The rating also factors in the firm's vulnerability to volatility
in raw material prices, and its small scale of operations in the
intensely competitive cotton-ginning industry. These weaknesses
are partially offset by the extensive industry experience of
SBCF's partners.

Outlook: Stable

CRISIL believes that SBCF will continue to benefit over the medium
term from its partners' extensive experience in the cotton-ginning
industry. The outlook may be revised to 'Positive' if the firm
sustains a healthy improvement in its profitability leading to
better debt-protection metrics. Conversely, the outlook may be
revised to 'Negative' if SBCF's financial risk profile
deteriorates, most likely because of larger-than-expected working
capital requirements or lower-than-anticipated net cash accruals.

Update
In 2013-14 SBCF revenues have more than double to INR451 million
from INR148.3 million. The increase is backed by growth in sales
volumes aided along with an increase in the average price of
cotton. The operating margins however dipped to around 3.3 per
cent in 2013-14 from 5.9 per cent in 2012-13 on account of
competitive price offered by the firm in order to increase its
customer database. The firm has generated revenues around INR70
million in the first quarter of 2014-15 and is likely to generate
around INR500 million in 2014-15.

The firm's financial profile continues to remain weak marked by
moderate gearing, , low net worth moderate debt protection
indicators. The gearing has improved to 1 time as on March 31,
2014 from around 2 times in the previous year. The improvement is
backed by lower inventory levels procured in the month of March
2014 resulting in lower use of fund based limits. The company has
moderate working capital requirements as refle3cted in its gross
current assert days of around 50 days as on March 31, 2014
primarily driven by lower debtor's days. The debtor's days are
lower at around 18 days as on March 31, 2014 in line with
historicals. The gearing, however is likely to deteriorate around
1.5 times in 2014-15 on account of incremental working capital
requirements.

SBCF limits are highly utilised at an average of 96 per cent for
the 12 months due to its large working capital requirements,
driven by higher inventory holding. The cash credit limits are
expected to be enhanced to INR82.5 million from INR70 million in
October 2014 which is likely to buffer the liquidity position.
SBCF is likely to generate cash accruals of INR10 to INR12
million, vis-a-vis minimal term debt obligations of around INR3.3
million for 2014-15.

On a provisional basis the company has reported a net profit of
INR1.05 million on net sales of INR451 million in 2013-14: it
reported a net profit of INR0.6 million on net sales of INR148
million in 2012-13.

SBCF was set up in May 2012 as a partnership firm by Mr. Bharat
Goyal and Mr. Sandeep Goyal. The firm has a plant in Barwani
(Madhya Pradesh) for ginning and pressing of raw cotton into
cotton bales.


SHRI K.K.: CRISIL Assigns B Rating to INR58.5MM Term Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Shri K.K. Tungal Memorial Trust (R) (KKTMT).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Term Loan               58.5         CRISIL B/Stable
   Auto loans               1.5         CRISIL B/Stable
   Proposed Long Term
   Bank Loan Facility      15           CRISIL B/Stable

The rating reflects the trust's modest scale of operations in the
intensely competitive education sector, its susceptibility to
risks related to the stringent regulatory environment. The ratings
also factor in the trust's susceptibility to risks related to the
implementation and stabilisation of its ongoing project. These
rating weaknesses are partially mitigated by the trustees'
extensive experience in the education sector and the benefits
derived from the healthy demand prospects in the education sector.

Outlook: Stable

CRISIL believes that KKTMT will continue to benefit over the
medium term from the extensive experience of its trustees in the
education sector. The outlook may be revised to 'Positive' if the
trust significantly increases its scale of operations, most likely
by improving its occupancy levels or increasing its course
offerings leading to better financial risk profile. Conversely,
the outlook may be revised to 'Negative' if the group's financial
risk profile deteriorates owing to sizeable debt-funded capital
expenditure, or a steep decline in its revenue and surplus.

Set up in 2003, KKTMT runs two secondary schools and two pre-
university colleges in the Bijapur district of Karnataka. The
trust is presently undertaking the construction of a ladies hostel
in Bijapur town. KKTMT is constituted and managed by the managing
trustee, Mr. A.K.Tungal.

The trust, provisionally, reported a surplus (income over
expenditure) of INR14.6 million on income of INR41.9 million for
2013-14 (refers to financial year, April 1 to March 31), against a
surplus of INR3.2 million on income of INR27.7 million for 2012-
13.


SRI BALAJI: ICRA Assigns B+ Rating to INR6.04cr Fund Based Loan
---------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to INR6.04 crore
fund based limits and INR3.96 crore unallocated limits of Sri
Balaji Cotton Agro Industries.

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Fund based Limits     6.04       [ICRA]B+ assigned
   Unallocated Limits    3.96       [ICRA]B+ assigned


The assigned rating is constrained by the weak financial profile
of the firm characterised by low profitability, high gearing and
modest coverage indicators; and high competition from large number
of players which restricts the ability of players to pass on hike
in input costs in the cotton ginning industry. The rating is also
constrained by susceptibility of profit margins to changes in raw
material prices and risk arising in partnership nature of firm.

The rating, however, takes comfort from the experienced management
with more than 30 years of experience in ginning and pressing of
cotton business; proximity to cotton producing belt of Adilabad
results in favourable access to raw material and cotton lint
production using TMC units gives better quality output and better
realizations.

Going forward, the ability of the firm to strengthen its financial
profile by improving its profitability and efficiently managing
its working capital requirements remains the key rating
sensitivity.

Founded in the year 2011 as a partnership firm, Sri Balaji Cotton
Agro Industries (SBCAI) is engaged in cotton ginning and pressing
activities. The firm started operations from January 2012. The
firm has 30 double roller gins with capacity to produce 15000
metric tons of cotton lint per annum. The firm has plant at
Bhainsa village of Adilabad district of Telangana.

Recent Results
For FY2014 (Provisional), the firm reported profit after tax of
INR0.03 crore on an operating income of INR30.71 crore as against
profit after tax of INR0.01 crore on an operating income of
INR36.30 crore in FY2013 (audited).


WARADE PACK: ICRA Reaffirms 'B' Rating on INR4cr Cash Credit
------------------------------------------------------------
ICRA has reaffirmed the rating of [ICRA]B outstanding on the
INR5.00 crore long term fund based facilities of Warade Pack Tech
Private Limited. ICRA has also reaffirmed the rating of [ICRA]A4
outstanding on the INR4.00 crore short-term non fund based
facilities of the company.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Long-term, Fund-      4.00         [ICRA]B; reaffirmed
   based limits
   (Cash Credit)

   Long-term, Fund-      1.00         [ICRA]B; reaffirmed
   based limits
   (Term Loan)

   Short-term, Non       4.00         [ICRA]A4; reaffirmed
   Fund based limits

The reaffirmed ratings favourably factor in the long standing
experience of the promoters in the fabrication industry, the
established relationship with leading FMCG companies and the
strong revenue growth over the years, although on a small base.
ICRA also notes the healthy RoCE given the low fixed capital
intensity of the business.

The ratings are however constrained on account of high working
capital intensity due to the long manufacturing cycle, and the
high customer concentration with two third of sales during FY14
derived from the P&G Group of companies, although WPTPL caters to
multiple geographic locations within P&G. ICRA further notes the
limited revenue visibility with modest order book, the stretched
capital structure and the limited value addition in fabrication
and assembling operations.

Warade Pack Tech Private Limited (WPTPL), located in Pune, was
incorporated in the year 2003 by Mr. Suresh Warade with the name
'Warade Automation Solutions Private Limited'. Subsequently, its
name was changed to WPTPL to better reflect the end-usage of its
products. The company is engaged in assembly of packaging
equipment and offers End-of-Line packaging solutions like
cartoning systems, Checkweigher systems etc. It purchases
standardised parts from other manufacturers of automation
equipment and custom-designs them to meet client requirements.
WPTPL caters to customers across verticals like FMCG,
pharmaceutical, textiles and fertilisers. The assembling unit of
the company is located at Sinhgad Road, Pune.

Recent results

As per its audited results for FY 2014, WPTPL reported profit
after tax (PAT) of INR0.87 crore on an operating income of
INR27.02 crore.



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


MT GOX: Creditors Sue CEO for Damages From Bitcoin Losses
---------------------------------------------------------
The Japan Times reports that three creditors of Mt. Gox have filed
a lawsuit with the Tokyo District Court, demanding that its CEO,
Mark Karpeles, pay JPY23.5 million in damages.

The report recalls that Mt. Gox announced in February that it had
lost 850,000 bitcoins, worth some JPY48 billion at the rate of
exchange at the time, filing for bankruptcy procedures.  According
to the report, Mt. Gox officials have explained that the coins
were stolen from the firm's computer system through unauthorized
access by outsiders.

But the plaintiffs of the suit maintained that Mr. Karpeles had
been "aware of the possibility of illicit withdrawals (of
bitcoins) due to fragility of the firm's (computer) system."

"The firm committed a grave act of negligence by failing to take
necessary measures, which led to the loss of clients' bitcoins and
a failure of the company," the suit, as cited by The Japan Times,
said.

                            About Mt. Gox

Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan.  The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."

The Japanese bitcoin exchange halted trading in February 2014. It
filed for bankruptcy protection in the U.S. to prevent customers
from targeting the cash it holds in U.S. bank accounts.

The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.).  The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer.  Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at Baker & Mcckenzie LLP, in Dallas, Texas.

The bankruptcy trustee and foreign representative of MtGox Co.
Ltd. with respect to the Japan Bankruptcy Proceedings:

     MtGox Co., Ltd.
     Office of Bankruptcy Trustee
     Kojimachi 3 chome building #202
     Kojimachi 3-4-1
     Chiyoda-ku, Tokyo
     Tel: +81-3-4588-3922
     Attn: Nobuaki Kobayashi

The Ontario Superior Court of Justice (Commercial List) on
Oct. 3, 2014, ordered, pursuant to Section 272 of the Bankruptcy
and Insolvency Act, that the bankruptcy proceedings commenced with
respect to MtGox Co., Ltd. -- aka Mt. Gox KK and dba MtGox
-- be recognized as a "foreign main proceeding."

The Canadian legal counsel to the bankruptcy trustee and foreign
representative of MtGox Co., Ltd, are:

     MILLER THOMSON LLP
     Scotia Plaza
     40 King Street West, Suite 5800
     PO Box 1011
     Toronto, ON Canada M5H 3S1
     Tel: 416-595-8615/8577
     Fax: 416-595-8695
     Attn: Jeffrey Carhart/ Margaret Sims

The company said it has estimated assets of $10 million to
$50 million and debts of $50 million to $100 million.


QUIN-ASH: Supreme Court Orders Pyramid Scheme Refund
----------------------------------------------------
The Yomiuri Shimbun reports that the Supreme Court on October 28
overturned lower court decisions and ordered a high-ranked member
of a pyramid sales scheme to return profits he illegally earned to
compensate victims at the bottom level of the scheme.

The report says the case involves the Tokyo-based company Quin-
Ash, which went bankrupt in 2011 after collecting funds for
investment via an Internet blog. Its transactions were determined
to be a pyramid scheme as "dividends" were paid for the
introduction of new investors, according to The Yomiuri Shimbun.

The Yomiuri Shimbun relates that the Tokyo district and high
courts had rejected a request by the bankruptcy administrator to
refund the profits illegally earned by the high-ranked member in
the pyramid.

But presiding Justice Michiyoshi Kiuchi upheld the claim by the
bankruptcy administrator, ordering the man to pay JPY21 million as
claimed by the plaintiff, the report adds.



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


IRA NRG: Romana Denies Hiding Following Firm's Collapse
-------------------------------------------------------
Jono Galuszka at Manawatu Standard reports that a New Zealander at
the centre of a failed alternative energy business, and who is
being pursued by liquidators, has broken his silence on the issue,
saying the illegal sale of his company's shares had nothing to do
with him.

Simon Romana, also known as Hai or Haimana, has been living in
Canada for 17 years, the report says.

He sold the idea of gasification technology -- using waste
material to produce energy -- to hundreds of investors in both
countries, including people from Manawatu and Horowhenua, relates
Manawatu Standard.

A company he founded in New Zealand, Ira NRG, secured investment
from more than 240 people before it was banned by New Zealand's
former Securities Commission for selling shares without a
prospectus, according to Manawatu Standard.

Manawatu Standard says Ira NRG is in liquidation, with liquidator
Clive Johnston asking the registrar of companies to take action
against Mr. Romana because of his non-compliance with the
dissolution of the company.

Canadians have also talked about their dealings with him, saying
he did not keep to gassifier designs and did not put a $55,000
loan to proper use, the report says.

Manawatu Standard relates that a Canadian court also ruled that
Romana must pay the company which built the gassifiers for him
$600,000, but the owner of that company said he had not paid up.

Mr. Romana previously declined to comment to the Manawatu Standard
about various issues related to his dealings in both
New Zealand and Canada, after he was found to be living in
Winnipeg, Canada, and involved at an art school for people with
mental health issues.

But he has broken his silence in an interview with Canadian news
outlet CBC News, the report says.

According to Manawatu Standard, Mr. Romana told CBC News he owed
no money to anyone in Canada, and that he had nothing to do with
the sale of Ira NRG shares. The shares he sold were his personal
shares which were passed on to members of his family, he said.

All shares sold to the public were done without his knowledge, as
an Ira NRG employee had commissioned sales people without his
knowledge to sell them, Mr. Romana, as cited by Manawatu Standard,
said.

Mr. Romana told CBC News that the liquidator could have found him
easily as he had left his contact details with people in
New Zealand.

"I'm not hiding from anybody," the report quotes Mr. Romana as
saying. "People didn't look too hard."

Mr. Romana declined to tell CBC News where he had successfully
used the gassifier, saying it was "none of your business," the
report adds.


NELSON BUILDING: Fitch Affirms 'BB+' LT IDRs; Outlook Stable
------------------------------------------------------------
Fitch Ratings has upgraded Heartland Bank Limited's (HBL) Long-
Term and Short-Term Issuer Default Ratings (IDR) and Viability
Rating (VR) to 'BBB'/'F2'/'bbb' from 'BBB-'/'F3'/'bbb-'.  The
Outlook on the Long-term IDR is Stable.  Fitch has also affirmed:

TSB Bank Limited (TSB) at 'A-'

Southland Building Society (SBS-Bank, SBS) at 'BBB'

The Co-Operative Bank Limited (Co-op) at 'BBB-'

Nelson Building Society (NBS) at 'BB+'

Wairarapa Building Society (WBS) at 'BB+'

The Outlooks on all IDRs are Stable.

The Support Ratings and Support Rating Floors of all these
entities have been affirmed at '5' and 'No Floor', respectively.
A full list of rating actions is at the end of this rating action
commentary.

Operating in New Zealand, all six entities are small financial
institutions with simple and transparent business models.  Their
main focus is on residential mortgages, with the exception of HBL
which targets niche markets such as motor vehicle finance, invoice
and equipment finance and more recently home-equity-release
mortgages.  This gives HBL relatively greater pricing power in its
target markets.  The other banks have relatively small national
franchises and are price-takers, although most enjoy a level of
community support in their home regions.

All entities have strong capital ratios relative to international
peers.  Nevertheless, most have limited access to capital given
their ownership structures - either mutual or owned by community
trusts.  HBL is owned by a holding company which is publicly
listed in New Zealand and could allow it access to equity capital
from the market if needed.

Fitch expects New Zealand's economy to continue its strong
performance with real GDP growth at 3.5% in 2014 and 2.9% in 2015,
as both consumption and business investment continue to be strong.
Hence, the agency expects the labour market to improve with a
further reduction in the unemployment rate to 5.5% in 2015 (2013:
6.2%).  The Reserve Bank of New Zealand (RBNZ) has increased the
official cash rate (OCR) by 100bp to 3.5% since March 2014 to
prevent a rise in inflation expectations.  With inflation
currently at moderate levels, the RBNZ has indicated it is
undertaking a period of monitoring and assessment before
considering further policy adjustment.  These economic conditions
should be beneficial for the entities' asset quality and operating
performance.

Nevertheless, high household leverage and New Zealand's high
property prices remain risks to the financial system, but higher
interest rates and macro-prudential measures taken by the
authorities appear to be keeping these risks in check given the
underlying strength of the economy.  There are risks building in
the agricultural sector where low dairy prices, should they
persist, may contribute to asset quality issues in this sector.
However, most of the entities of this peer review have limited
exposure to the agricultural sector.  The operating environment
does not constrain the entities' IDRs and VRs.

TSB Bank Limited

KEY RATING DRIVERS - IDRs AND VR

TSB's conservative risk appetite has led to its consistently sound
asset quality and profitability, which have been above industry
average over the past decade.  TSB's conservative risk appetite
combined with its simple business model has resulted in a strong
balance sheet structure and sustainable operating performance.
TSB's liquidity, funding and capital positions are good for an
institution of its size and are strong relative to international
and domestic peers.  The ratings also take into account TSB's
small domestic franchise, geographic concentration and limited
access to new capital.

TSB's business model has been strongly influenced by the bank's
conservative risk appetite which reflects the bank's tight
underwriting standards, careful expansion outside its home region
as well as holding a sizeable securities portfolio which supports
the bank's exceptional liquidity position.

RATING SENSITIVITIES - IDRs AND VR

TSB's IDRs and VR are sensitive to a change in the bank's risk
appetite.  An increased risk profile, reflected in weaker
underwriting standards and/ or risk controls, or a substantial
increase in asset growth could lead to deterioration in asset
quality, operating performance and capitalization which may result
in negative rating actions.  Positive rating momentum would
require significant improvements in the bank's franchise while
maintaining its current business model and risk appetite which is
unlikely in the short- to medium-term.

Heartland Bank Limited

KEY RATING DRIVERS - IDRs AND VR

The upgrade of HBL's Long- and Short-Term IDRs and VR reflect the
bank's consistent reduction in non-core assets resulting in
improved asset quality and stronger earnings.  At the financial
year end 30 June 2014 (FY14) HBL's non-core asset portfolio stood
at NZD41m.  HBL expects to reduce the portfolio to NZD26m by end-
2014, while maintaining current provisioning levels.  At this
point the portfolio would be unlikely to present a material risk
to the bank's capitalization and profitability.

HBL's funding and liquidity profile is adequate for its rating
level.  It makes greater use of wholesale funding relative to most
of its domestic peers, with a loan/ deposit ratio of 116% at
FYE14, leaving it somewhat susceptible to investor confidence.  In
addition, HBL's on-balance sheet liquidity is lower than domestic
peers.  This risk is partly offset by HBL's shorter duration loan
portfolio.  Around 53% of HBL's liabilities maturing within 12
months are covered by maturing assets at FYE14.

HBL's business model focuses on lending niche markets in which it
has a leading market share.  As a result, HBL generates a stronger
net interest margin than peers despite the riskier lending
profile.  Fitch expects HBL's core asset quality to remain sound,
benefiting from strengthened underwriting standards and good
economic conditions.  In addition, HBL's capital ratios are
adequate relative to its risks.

RATING SENSITIVITIES - IDRs AND VR

HBL's IDRs and VR are sensitive to changes in its company profile
and risk appetite.  A weaker company profile - mainly reflected in
its business model and franchise, could impact the bank's earnings
performance and could lead to a change in risk appetite, placing
negative pressure on HBL's asset quality and/or capital, funding
and liquidity positions.  Positive rating action is unlikely in
the short- to medium-term.

Southland Building Society

KEY RATING DRIVERS - IDRs AND VR

SBS's IDRs, VR, senior debt ratings, and Outlook reflect its
improving asset quality and operating performance and solid
capital ratios.  Offsetting these attributes is the bank's modest
domestic franchise and limited pricing-power, although strategic
initiatives are targeting a larger national presence.

Asset quality has improved with the work out of problem loans and
tighter underwriting standards over the last four years, and
supported stronger earnings and profitability.  Capital ratios
include solid buffers over regulatory minimums.  Fitch's Core
Capital (FCC) ratio was 13.35% at FYE14 (FYE13: 12.95%) and SBS
was stronger than international peers, measured by the tangible
common equity to tangible assets ratio.

RATING SENSITIVITIES - IDRs AND VR

An upgrade to SBS's IDRs, VR and senior debt ratings would require
the bank to improve the value of its franchise through the
successful execution of its growth strategy, demonstrate asset
quality towards the high end of its peer group and maintain strong
balance sheet metrics.  SBS's senior unsecured debt 'deposit
notes' have priority over the bank's redeemable shares and could
be equalized with the IDR should the level of subordination
decrease.

The IDRs, VR and senior unsecured debt ratings allow for some
deterioration in the operating environment as well as SBS's
balance sheet composition, but potential negative rating pressure
could occur if asset quality deteriorated and resulted in a
negative impact to earnings, capital ratios and the reputation of
the organization.

The Co-operative Bank Limited

KEY RATING DRIVERS - IDRs AND VR

Co-op's IDRs and VR are limited by the bank's low, but improving
profitability relative to domestic peers, an area which management
seeks to address through a five year strategic plan.  Continued
strengthening in profitability is likely as the bank progresses
its strategic plan, although a more significant sustainable
improvement may take some time.  Profitability is therefore likely
to lag domestic peers in the financial year ended 31 March 2015
(FY15).

The bank's medium term strategic objectives are clearly
articulated by management.  Although it has performed well against
the objectives to date, the brand and strategic goals are still
relatively new and a longer term track record has not been
established.  Expansion, particularly into the Auckland market has
been approached cautiously, reflective of the banks modest risk
appetite.

The VR is supported by strong capitalization relative to peers and
solid asset quality which has continued to remain stable.  The FCC
ratio was 15.8% at FYE14 and is unlikely to deteriorate materially
despite the bank's growth ambitions.  The impaired loan ratio of
0.2% also compares favorably against local and international
peers.

RATING SENSITIVITIES - IDRs AND VR

Positive rating action would require a sustainable and significant
improvement in profitability whilst maintaining current strong
levels of capitalization, sound funding and modest risk appetite.
Negative rating action may result should the bank weaken its risk
appetite and the FCC ratio significantly decline as part of its
growth strategy.  A material deterioration in Co-op's operating
environment, placing pressure on asset quality and potentially
eroding the bank's capital base would also place downward pressure
on the bank's ratings.

Nelson Building Society

KEY RATING DRIVERS - IDRs AND VR

NBS's IDR, VR and Stable Outlook reflect the society's
consistently strong operating performance, solid asset quality,
and stable funding and liquidity profiles.  The main constraints
on the ratings are the society's moderate franchise which can
limit pricing power and competitive advantages, its small absolute
size which increases concentration risks, and below peer
capitalization and leverage.

NBS's performance in the face of intense competition has been very
strong with higher operating profits from good loan growth and
wider net interest margins.  However, as a mutual institution, NBS
has limited capital raising options and rapid loan growth has
pressured capital ratios.  Capital ratios are lower than domestic
peers but stronger than more highly rated international peers.

RATING SENSITIVITIES - IDRs AND VR

An upgrade to NBS's IDR and VR would require the society to
improve the value of its franchise, decrease its concentrations
and strengthen its capital position.  A negative rating action
could occur if asset quality unexpectedly deteriorated due to its
large single-name or geographic concentrations, or because of
poorly managed expansion and loan growth.

Wairarapa Building Society

KEY RATING DRIVERS - IDRs AND VR

WBS's IDR, VR and Stable Outlook reflect the society's moderate
franchise, good asset performance and adequate capital ratios
containing satisfactory buffers over regulatory minimums, offset
by large loan and investment property exposures for an institution
of its size.

WBS's conservative underwriting approach is reflected in the
performance of its loan book despite significant single name
concentration.  Capital ratios are high relative to peers but
Fitch views this as appropriate given WBS's small absolute capital
base, limited capital raising options and large loan
concentrations.

RATING SENSITIVITIES - IDRs AND VR

WBS's IDR and VR are unlikely to be upgraded due to the society's
small absolute capital base, small domestic franchise, and
geographic and large-loan concentrations.  A negative rating
action could occur if asset quality unexpectedly declined leading
to capital erosion.

KEY RATING DRIVERS & RATING SENSITVITIES - SUPPORT RATING AND
SUPPORT RATING FLOOR

The Support Ratings and Support Rating Floors of all six banks and
building societies reflect that while support from the New Zealand
sovereign is possible, it cannot be relied upon.  In Fitch's view,
the introduction of the Open Bank Resolution Scheme (OBR) from 1
July 2013 reduces the propensity of the sovereign to support its
banks.  The OBR allows for the imposition of losses on depositors
and senior debt holders to make up capital shortfalls if a
deposit-taking institution has failed.

The Support Ratings and Support Rating Floors are sensitive to any
change in assumptions around the propensity or ability of the New
Zealand government to provide timely support to each institution.

The rating actions are as follows:

TSB Bank Limited
Long-Term IDR affirmed at 'A-'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'

Heartland Bank Limited:
Long-Term IDR upgraded to 'BBB' from 'BBB-'; Outlook Stable;
Short-Term IDR upgraded to 'F2' from 'F3';
Viability Rating upgraded to 'bbb' from 'bbb-';
Support Rating affirmed at '5'; and
Support Rating Floor affirmed at 'No Floor'.

Southland Building Society (SBS Bank)
Long-term IDR affirmed at 'BBB'; Outlook Stable;
Short-term IDR affirmed at 'F2';
Local Currency Long-term IDR affirmed at 'BBB'; Outlook Stable;
Local Currency Short-term IDR affirmed at 'F2';
Viability Rating affirmed at 'bbb';
Support Rating affirmed at '5';
Support Rating Floor affirmed at 'No Floor';
Commercial Paper affirmed at 'F2'; and
Long-Term senior unsecured debt (deposit notes) affirmed at
'BBB+'.

The Co-operative Bank Limited
Long-Term IDR affirmed at 'BBB-'; Outlook Stable;
Short-Term IDR affirmed at 'F3';
Viability Rating affirmed at 'bbb-';
Support Rating affirmed at '5'; and
Support Rating Floor affirmed at 'No Floor'.

Nelson Building Society:
Long-Term IDR affirmed at 'BB+'; Outlook Stable;
Short-Term IDR affirmed at 'B';
Local Currency Long-Term IDR affirmed at 'BB+'; Outlook Stable;
Local Currency Short-Term IDR affirmed at 'B';
Viability Rating affirmed at 'bb+';
Support Rating affirmed at '5'; and
Support Rating Floor affirmed at 'No Floor'.

Wairarapa Building Society:
Long-Term IDR affirmed at 'BB+'; Outlook Stable;
Short-Term IDR affirmed at 'B';
Local Currency Long-Term IDR affirmed at 'BB+'; Outlook Stable;
Local Currency Short-Term IDR affirmed at 'B';
Viability Rating affirmed at 'bb+';
Support Rating affirmed at '5'; and
Support Rating Floor affirmed at 'No Floor'.



===========
T A I W A N
===========


TAIWAN HIGH: Board Approves Major Financial Reform
--------------------------------------------------
Lin Shu-huei at wantchinatimes.com, citing United Daily News,
reports that a proposal to improve the finances of Taiwan High
Speed Rail Corporation was approved at a company board meeting on
October 23.

wantchinatimes.com relates that a source from the company said
that the first step will be a capital reduction of 60%, or
NT$39 billion (US$1.3 billion), and then money will be raised in
three stages: private placement, seasoned equity offerings and a
public listing. The company hopes to raise total funds of NT$30
billion (US$987 million).

After the capital reduction, the private placement, geared towards
government shareholders, is expected to raise NT$13 billion (US$
427 million), the report relates. Government-held stocks will
reach a roof of 40%, surpassing private investments and giving the
government control of the company's operations, according to
wantchinatimes.com.

If the plan had not been approved, the company would have been
bankrupt by the end of the year, wantchinatimes.com says citing
government stockholders.  The report says the proposal is seeking
to reduce capital by 60% across the board by around NT$39 billion,
before the company goes public, in a second wave of fundraising
during which they hope to raise NT$20 billion.

The first wave of fundraising aims to raise NT$13 billion through
private placement, geared at the ten government shareholders, the
report notes. According to wantchinatimes.com, the company has
been in arrears on dividends on the preferred stocks of eight
government banks, the CTCI Foundation and the Airline Career
Development Association, totaling NT$13 billion, if calculated at
a 5% rate of annual interest, the same as the amount of funds the
company intends to raise through private placement. Government
stakeholders will not, therefore, have to invest more in the
company, but the preferred stocks can be turned into common
stocks, which will relieve pressure on the company to pay off the
interest due, the report notes.

Currently the government owns 23% of company stocks, but after the
first phase of fundraising this will rise to 35%-40%, which will
give the government control of the company, wantchinatimes.com
discloses.

wantchinatimes.com adds that to raise cash-flow, the second wave
of capitalization will be opened to the five major shareholders,
which will raise NT$7 billion (US$230 million). According to
company regulations, employees are entitled to buy 10%-15% (NT$700
million-NT$1 billion) of shares. If not enough subscribe during
this stage, the shares will be opened to life insurance companies,
but Fubon Life Insurance Company will not be permitted to buy
shares, the report notes.

                           About THSRC

Taiwan High Speed Rail Corporation is principally engaged in the
construction, development and operation of the high-speed railway
system in Taiwan.  The Company is also involved in other high-
speed railway transportation-related businesses and the
development and usage of train station sites.  The Company's high-
speed railway transportation-related businesses include shopping
malls, special stores located in travel agencies, car leasing and
parking lots, among others.  The Company developed train station
sites for hotel, restaurant, entertainment, department store,
financial service, tourism service, communication service and
other uses.



                             *********

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., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.

Copyright 2014.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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