/raid1/www/Hosts/bankrupt/TCRAP_Public/181213.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, December 13, 2018, Vol. 21, No. 247
Headlines
A U S T R A L I A
300K ENTERPRISES: Second Creditors' Meeting Set for Dec. 20
BLACKWELL EXCAVATION: First Creditors' Meeting Set for Dec. 21
GAO HOLDING: First Creditors' Meeting Set for Dec. 21
KPD KNIGHT: Second Creditors' Meeting Set for Dec. 20
PICTON PRESS: ATO Pursuing Winding Up Bid Against Printer
ROGER DAVID: Second Creditors' Meeting Set for Dec. 19
SNAKK MEDIA: First Creditors' Meeting Set for Dec. 20
VIADAR HOLDINGS: Second Creditors' Meeting Set for Dec. 20
WISE REALTY: Second Creditors' Meeting Set for Dec. 20
C H I N A
CHINA: Default-Risk Jumps to 2005 High, Moody's Analytics Says
H O N G K O N G
SPI ENERGY: Incurs $91.1 Million Net Loss in 2017
I N D I A
AL-RKAYAN APPARELS: ICRA Maintains B+ Rating in Not Cooperating
AMIT CAPACITORS: Ind-Ra Migrates BB LT Rating to Non-Cooperating
BALAJI AQUA: CARE Assigns 'B+' Rating to INR12cr LT Loan
CHIRAG AGROFINS: ICRA Migrates D Rating to Not Cooperating
D. S. CONTRACTORS: CARE Lowers Rating on INR7cr Loan to D
DELTA ELECTRO: ICRA Migrates 'D' Rating in Not Cooperating
DURATEX EXPORTS: ICRA Maintains B Rating in Not Cooperating
EMC LTD: NCLT Admits Insolvency Bid Against Power Company
GTN TEXTILES: CARE Hikes Rating on INR12.43cr LT Loan to B
GURUKRUPA CORP: ICRA Maintains B+/A4 Rating in Not Cooperating
JAYPEE INFRATECH: Homebuyers Seek Secured Creditors Status
K.S. ENTERPRISES: CRISIL Withdraws B+ Rating on INR25CR Loan
KAILASH INFRATECH: ICRA Maintains B Rating in Not Cooperating
KAPOOR OIL: ICRA Maintains 'B' Rating in Not Cooperating
KRISHNA COTTEX: ICRA Migrates 'B' Rating to Not Cooperating
MAHA SAI: ICRA Maintains B Rating in Not Cooperating Category
MANGLAM AGROTECH: CARE Assigns B+ Rating to INR11.61cr LT Loan
PYTEX JEWELLERS: ICRA Maintains B+ Rating in Not Cooperating
RAJPUTANA INDUSTRIES: ICRA Maintains B+ Rating in Not Cooperating
RANGOLI WOOD: CARE Assigns B+ Rating to INR6.25cr LT Loan
RM ROCKS: CARE Migrates B Rating to Not Cooperating Category
SAI INTERNATIONAL: ICRA Maintains B+ Rating in Not Cooperating
SKM INFRAVENTURE: Ind-Ra Migrates BB LT Rating to Non-Cooperating
SUNSHINE CONVEYORS: ICRA Maintains B Rating in Not Cooperating
T M SUBRAMANIAM: CARE Assigns B Rating to INR8.16cr LT Loan
TELUGU CINE: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
UMACHI FOODS: CARE Migrates B Rating to Not Cooperating Category
S I N G A P O R E
NOBLE GROUP: Secures Extension for Restructuring Bid
S O U T H K O R E A
* SOUTH KOREA: 190 Firms Need Restructuring This Year, FSS Says
- - - - -
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A U S T R A L I A
=================
300K ENTERPRISES: Second Creditors' Meeting Set for Dec. 20
-----------------------------------------------------------
A second meeting of creditors in the proceedings of 300K
Enterprises Ltd has been set for Dec. 20, 2018, at 10:30 a.m. at
the offices of BRI Ferrier Western Australia, at Unit 3, 99-101
Francis Street, in Northbridge, Western Australia.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 19, 2018, at 4:00 p.m.
Giovanni Maurizio Carrello of BRI Ferrier Western Australia
was appointed as administrator of300K Enterprises on Sept. 17,
2018.
BLACKWELL EXCAVATION: First Creditors' Meeting Set for Dec. 21
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Blackwell
Excavation & Demolition Pty Ltd will be held at the offices of DV
Recovery Management, at Level 1, 76 Market Street, in Wollongong,
NSW, on Dec. 21, 2018, at 12:00 p.m.
Daniel O'Brien and Danny Vrkic of DV Recovery were appointed as
administrators of Blackwell Excavation on Dec. 7, 2018.
GAO HOLDING: First Creditors' Meeting Set for Dec. 21
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Gao
Holding Pty Ltd, formerly trading as Li's Massage, Galleria
Shopping Centre, Morley, Western Australia, will be held at the
offices of Palisade Business Consulting, at 22 Lindsay Street, in
Perth, WA, on Dec. 21, 2018, at 10:00 a.m.
Jack Robert James and Paula Lauren Smith of Palisade Busines were
appointed as administrators of Gao Holding on Dec. 12, 2018.
KPD KNIGHT: Second Creditors' Meeting Set for Dec. 20
-----------------------------------------------------
A second meeting of creditors in the proceedings of KPD Knight
Pty Ltd and KPD Portogallo Pty Ltd has been set for Dec. 20,
2018, at 11:00 a.m. at the offices of B.K. Taylor & Co. Meeting
Room, Level 8, 608 St. Kilda Road, in Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 19, 2018, at 5:00 p.m.
Paul Vartelas of B K Taylor & Co was appointed as administrator
of KPD Knight on Nov. 15, 2018.
PICTON PRESS: ATO Pursuing Winding Up Bid Against Printer
---------------------------------------------------------
Wayne Robinson at Print21.com.au reports that Picton Press is
back in court on December 18, as the Australian Tax Office
pursues its winding up order against the debt-ridden company.
Print21.com.au relates that the court case has been scheduled and
adjourned several times since May, the latest on November 27, as
the Picton administrator Cor Cordis seeks to come to a deal with
the ATO. The December 18 date could be make or break.
According to Print21.com.au, the ATO voted against a proposed
Deed of Company Arrangement (DOCA) put together by administrator
Cor Cordis, which sees the company only offering between 1c and
2c in the dollar to the AUD2.25 million owed to unsecured
creditors. Print21.com.au says the ATO is the largest creditor
with a AUD1.3 million claim, meaning it would only receive
between AUD13,000 and AUD26,000 and would have to write off at
least AUD1,274,000 of its AUD1.3 million.
Typically, the Tax Office takes what it can from the
administrators, but seems to have changed tack recently, with
insiders believing it is under pressure from its own new multi-
million dollar anti-Phoenixing unit, the report says.
Together with almost all the other unsecured creditors the ATO
voted against the DOCA, however with all the employees voting for
it the administrator Jeremy Nipps said the result was deadlocked,
and cast his own vote in favor, leaving creditors at the meeting
stunned, Print21.com.au relates.
Print21.com.au says rival Perth printers, and printers around
Australia, are fuming at the DOCA process, which will effectively
enable Picton to shed almost all its AUD2.25 million debt, and
only have to pay between AUD22,500 and AUD45,000 to the unsecured
creditors. Other printers point out that they have had to price
their jobs to pay their taxes, paper and consumables costs, while
Picton effectively has not.
Picton got into trouble four years ago when it bought a new B1
ten-colour press at the same time as the WA economy tanked,
Print21.com.au recalls. When the ATO launched its winding up
order in May directors Garry Kennedy and Dennis Hague put it into
voluntary administration. Since then it has continued trading,
and came through the controversial meeting to get the DOCA across
the line.
Print21.com.au relates that the company is also facing issues of
paper supply, and with national merchants Ball & Doggett, Spicers
and local merchant Stockman all on the creditors list none is
likely to get insurance to be able to supply Picton, even if they
wanted to. The source of Picton's current paper supply is
unknown.
Picton also has secured creditors, to which it owes around AUD5.5
million against various properties, Print21.com.au adds.
ROGER DAVID: Second Creditors' Meeting Set for Dec. 19
------------------------------------------------------
A second meeting of creditors in the proceedings of Roger David
Stores Pty Ltd, trading as Roger David and RDX, has been set for
Dec. 19, 2018, at 2:00 p.m. at the offices of Chartered
Accountants ANZ, at Level 18, 600 Bourke Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 18, 2018, at 4:00 p.m.
Craig Peter Shepard and Leanne Chesser of KordaMentha were
appointed as administrators of Roger David on Oct. 18, 2018.
SNAKK MEDIA: First Creditors' Meeting Set for Dec. 20
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Snakk
Media Pty Limited will be held at the offices of KordaMentha, at
Level 5 Chifley Tower, 2 Chifley Square, in Sydney, NSW, on
Dec. 20, 2018, at 11:00 a.m.
Rahul Goyal and Scott Langdon of KordaMentha were appointed as
administrators of Snakk Media on Dec. 10, 2018.
VIADAR HOLDINGS: Second Creditors' Meeting Set for Dec. 20
----------------------------------------------------------
A second meeting of creditors in the proceedings of Viadar
Holdings Pty Ltd has been set for Dec. 20, 2018, at 11:00 a.m.at
the offices of Hayes Advisory, Level 16, 55 Clarence Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 19, 2018, at 5:00 p.m.
Alan Hayes of Hayes Advisory was appointed as administrator of
Viadar Holdings on Nov. 17, 2018.
WISE REALTY: Second Creditors' Meeting Set for Dec. 20
------------------------------------------------------
A second meeting of creditors in the proceedings of Wise Realty,
Management & Development Pty. Ltd. has been set for Dec. 20,
2018, at 11:00 a.m. at the offices of PKF Melbourne, at Level 13,
440 Collins Street, in Melbourne.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 19, 2018, at 4:00 p.m.
Glenn Jeffrey Franklin and Petr Vrescky of PKF Melbourne were
appointed as administrators of Wise Realty on Aug. 13, 2018.
=========
C H I N A
=========
CHINA: Default-Risk Jumps to 2005 High, Moody's Analytics Says
--------------------------------------------------------------
Gregor Stuart Hunter at Bloomberg News reports that default risk
for Chinese companies has climbed to the highest in 13 years as
Beijing seeks to rein in its post-crisis construction boom,
according to Moody's Analytics.
Bloomberg relates that the research group's measure of expected
default frequency has risen above early-warning levels for about
25 percent of corporate borrowers. Moody's Analytics, a separate
entity from the ratings agency, uses the gauge to isolate
companies and sectors that merit further investigation for
financial distress, the report says.
"This share has been rising steadily for the past two years and
now sits near the highs last seen in 2005," Glenn Levine, a
senior research analyst, wrote in a report this month, Bloomberg
relays.
Bloomberg says China has already seen a record pace of bond
defaults this year, a consequence in part of policy makers'
efforts to reduce leverage in the financial system.
While the economy remains in relatively firm shape, the country
is now at a pivotal juncture, Mr. Levine added. "If the Chinese
economy were to slow further or, worse still, if the economy were
to enter a sustained downturn, we would likely see corporate
credit risk start to increase sharply," Bloomberg quotes Mr.
Levine as saying.
Among the 61 industry groups surveyed by Moody's Analytics,
credit risk is highest for construction, building materials and
water and sewage companies in the utilities sector, the report,
as cited by Bloomberg, showed.
"All of these industries are construction-related and the rise in
credit risk mirrors the fall in construction activity over the
past several years," the report said.
Credit risk was lowest in pharmaceutical, computer software and
food and beverage industries, the analysis showed, Bloomberg
adds.
================
H O N G K O N G
================
SPI ENERGY: Incurs $91.1 Million Net Loss in 2017
-------------------------------------------------
SPI Energy Co., Ltd. has filed with the Securities and Exchange
Commission its Annual Report on Form 20-F reporting a net loss
attributable to shareholders of the Company of $91.08 million on
$127.46 million of net sales for the year ended Dec. 31, 2017,
compared to a net loss attributable to shareholders of the
Company of $220.69 million on $140.19 million of net sales for
the year ended Dec. 31, 2016.
As of Dec. 31, 2017, SPI Energy had $317.3 million in total
assets, $414.95 million in total liabilities, and a total deficit
of $97.64 million.
The Group has suffered significant recurring losses from
operations and operating cash outflows. As of Dec. 31, 2017 the
Group had accumulated deficit of $557,844,000. Working capital
deficit (current liabilities less current assets) increased
significantly from $176,195,000 at Dec. 31, 2016 to $254,994,000
at Dec. 31, 2017.
As of Dec. 31, 2017, the convertible bonds were overdue for
repayment. Further, since April 2017 the Group has defaulted
repayment for significant amounts of borrowing raised from
individual investors through the on-line platform. As of Dec. 31,
2017, principal amounts and interests of approximately
$92,769,000 (RMB 604 million) in the aggregate were overdue
without full payment.
Marcum Bernstein & Pinchuk LLP, in New York, New York, issued a
"going concern" qualification in its report on the consolidated
financial statements for the year ended Dec. 31, 2017, stating
that the Company has a significant working capital deficiency,
has incurred significant losses and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
"Historically, we have relied primarily on cash from our
operations, bank borrowings, private placements and financial
leases to fund our operations. We expect that our existing cash
and cash equivalents and cash flows from operating and financing
activities will be sufficient to meet our anticipated working
capital requirements and capital expenditure for at least the
next 12 months - but generally inadequate to pursue new project
acquisition or development initiatives without additional
capital. The timing and amount of our working capital and capital
expenditure requirements may vary significantly depending on
numerous factors, such as the timeliness of payments from our
customers. We have filed liens to secure customer payments for
each of our solar projects, but there is no assurance that such
payments will be timely collected. We have also enhanced our
collection efforts and undertaken various measures to collect
outstanding payments from customers, damages from legal actions
and other payments due to us. The volatility and potential
deterioration of the PV market conditions and the overall global
economies have also added uncertainties regarding the
sustainability of the PV industry and adverse impact on the
demand for our products. Without access to sufficient level of
capital from operations or through bank borrowings or other
sources, we may not be able to execute our growth strategy or
pursue additional projects, or may not even be able to continue
as a going concern. These doubts and uncertainties may create
concerns for our creditors, suppliers, customers and other
counterparties, and cause them to make it more difficult for us
to raise our financing, conduct our business and meet our debt
and other obligations," the Company stated in the Report.
A full-text copy of the Form 20-F is available for free at:
https://is.gd/L2oKIQ
About SPI Energy
SPI Energy Co., Ltd. -- http://investors.spisolar.com/-- is a
global provider of photovoltaic (PV) solutions for business,
residential, government and utility customers and investors. SPI
Energy focuses on the EPC/BT, storage and O2O PV market including
the development, financing, installation, operation and sale of
utility-scale and residential PV projects in China, Japan, Europe
and North America. The Company operates an online energy
e-commerce and investment platform in China, as well as B2B
e-commerce platform offering a range of PV and storage products
in Australia. The Company has its operating headquarters in
Hong Kong and maintains global operations in Asia, Europe, North
America and Australia.
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I N D I A
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AL-RKAYAN APPARELS: ICRA Maintains B+ Rating in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the INR3.00-crore term loan and
INR25.00-crore fund-based cash credit facilities of Al-Rkayan
Apparels & Exports Private Limited (ARAEPL) continues to remain
in the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Fund-
Based-Term Loan 3.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long-term Fund-
Based-Cash Credit 25.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
ARAEPL was incorporated in 2004 by Mr. Prabhakar Shetty,
Mr.Shahid Rafi and Mr. Abdul Rahman S Al-Rkayan. The company is
primarily involved in manufacturing of denims for major denim
players and has manufacturing facility in Goregaon, Mumbai which
is spread over 30,000 square feet and employs over 650 people.
Towards the end of 2008-09, ARAEPL launched its own denim brand
Leonidas, aimed at the price-sensitive and fashion-conscious
youth segment (16 to 40 years age group); Leslie (for capris and
three-fourths) and LD Active (bottom wear for women).
AMIT CAPACITORS: Ind-Ra Migrates BB LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Amit Capacitors
Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits migrated to
non-cooperating category IND BB (ISSUER NOT COOPERATING)/
IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR60 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed
December 7, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1982, Amit Capacitors manufactures metalized
polypropylene film power capacitors at its facilities in
Hyderabad and Goa.
BALAJI AQUA: CARE Assigns 'B+' Rating to INR12cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Balaji
Aqua & Agro Products Private Limited (BAAPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 12.00 CARE B+; Stable Assigned
Detailed Rationale& Key Rating Drivers
The ratings assigned to the bank facilities of BAAPPL are
tempered by small scale of operations with low net worth base and
thin and fluctuating PAT margins, working capital intensive
nature of operations, leveraged capital structure and weak debt
coverage indicators, and highly fragmented industries with
intense competition from large number of players. The ratings
are, however, underpinned by established track record and
experienced management, increasing total operating income during
the review period with comfortable operating profit, lease
agreement for quarry and stable outlook for seafood industry.
Going forward, ability of the company to increase its scale of
operations and improve its profitability margins in competitive
environment, ability of the company to improve its capital
structure debt coverage indicators and working capital cycle
requirements effectively would be key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with low net worth base: Despite, the
company has a track record of close to three decades, the total
operating income stood small at INR16.02 in FY18 with low net
worth base of INR7.74 crore as on March 31, 2018 as compared to
other peers in the industry.
Working capital intensive nature of operations: The operations of
the company are working capital intensive and stood at 176 days
in FY18 due to elongated collection days. The company avails the
credit period from the suppliers up to 30 and receives the
payment from brokers and farmers within 90-120 days. The company
holds sufficient inventory level of up to 30 days to meet
customer demand on time. The utilization of cash credit facility
in the last twelve months ended i.e., November 8, 2018 remained
90 per cent.
Moderate capital structure and weak debt coverage indicators: The
capital structure of the company marked by overall gearing ratio
remained moderate at 1.45x as on March 31, 2018. The overall
gearing ratio deteriorated from 1.84x as on March 31, 2016 to
2.33x as on March 31, 2017 at the back of increase in working
capital bank borrowings to meet day to day operations of the
company. However, the overall gearing ratio improved from 2.33x
as on March 31, 2017 to 1.45x as on March 31, 2018 on account of
repayment of unsecured loans. The debt profile of the company as
on March 31, 2018 includes term loans (27%), working capital bank
borrowings (65%) and unsecured loans (8%). The debt coverage
indicators of the company remained weak during the review period.
The total debt/GCA has been improving from 24.92x in FY16 to
15.17x in FY18 due to increase in cash accruals and decline in
debt levels. The PBILDT interest coverage ratio has also seen
deteriorating from 1.63x in FY16 to 1.56x in FY18 due to increase
in financial expenses. The TD/CFO has seen improving during the
review period and stood satisfactory at 2.38x in FY18 due to
decrease in current assets.
Highly fragmented industry with intense competition from large
number of players: The company is engaged in the mining and
hatcheries business which are highly fragmented industries due to
presence of large number of organized and unorganized players in
the industry and faces huge competition.
Liquidity analysis: Current ratio is below unity and stood at
0.84x as on March 31, 2018 as the majority of amount in current
liability comprise of working capital bank borrowings (7.25crore)
and other short term loans and advances (0.92 crore) as compared
to current assets.
Key Rating Strengths
Long track record and experienced management: BAAPPL was
established in 1990 by Mr. Gadde Rama Mohan and his relatives.
Mr. Gadde Rama Mohan is the Managing Director of the company. He
has more than two decade of experience in the mining and
hatcheries business. All the directors also have more than two
decades of experience in the same business since inception of the
company. The company has established good relationship with
customers and farmers due to presence in the business for a long
period of time.
Increasing in total operating income during review period: The
total operating income (TOI) of the company has been increasing
year-on-year from INR11.91 crore in FY16 to INR16.02 crore in
FY18 on account of increase in demand for shrimps and quartz
stone. Furthermore, the company has achieved total operating
income of INR6.00 crore in 7MFY19 (Prov.) INR3 crore from shrimps
and the INR3 crore for quartz stone.
Comfortable PBILDT margin and thin PAT margin: The profitability
margins of the company remained comfortable during the review
period. The PBILDT margin has been increasing from 9.30% in FY16
to 13.46% in FY18 due to increase in the operational profit in
absorption of fixed overheads. The PAT margin of the company has
seen increasing from 0.63% in FY16 to 0.82% in FY18 at the back
of increase in operating profit resulted in absorption of
financial expenses and depreciation provisions.
Lease agreement for quarry: The company is entered into lease
agreement with the central government for 20 years. The company
is liable to pay INR0.07 crore annually.
Stable outlook for seafood industry: During FY18, the Indian
seafood exports registered an all-time-high volume with a y-o-y
growth of around 20 per cent. The industry recovered after
witnessing a setback in FY16 wherein exports declined by about 10
per cent in volume terms. Major factors contributing to the
strong growth in FY17 include increased production of Vannamei
Shrimp, diversification of aquaculture species, sustained
measures to ensure quality and increase in infrastructure
facilities for production and value added products, high
dependence on the US market continues to remain a concern with
the profitability of shrimp processers dependent upon policy
changes undertaken by the importing countries. Thus geographical
diversification of exports would remain important for the
industry players. Going forward overall the industry is poised to
grow favorably given the liberalized FDI policy, favorable growth
environment and increasing export demand.
Andhra Pradesh based, Balaji Aqua & Agro Products Private Limited
(BAAPPL) was established in 1990 as a Private Limited Company by
Mr. Gadde Rama Mohan and his relatives. Initially the company has
established as a manufacturer of shrimps. In 2013 the company has
taken quarry on lease from Andhra Pradesh government and
excavates boulders from rocks for the manufacturing of "Quartz
Mining Stone" of various sizes 10mm, 20mm and 40mm for 20 years
for which the company is liable to pay INR0.07 crore to the
government annually. Apart from mining the company is also
engaged in manufacturing of shrimp hatcheries. The company earns
30 percent of revenue from quartz mining and the balance of 70
per cent from hatcheries business.
CHIRAG AGROFINS: ICRA Migrates D Rating to Not Cooperating
----------------------------------------------------------
ICRA has moved the long-term rating for the bank facilities of
Chirag Agrofins Private Limited (CFPL) to the 'Issuer Not
Cooperating' category. The rating is now denoted as "[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 20.00 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating moved to the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA on the basis of limited
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Incorporated in 1991, Chirag Agrofins Private Limited (CAPL or
the company) is involved in real estate development. Currently,
the company is executing one project in Malad, Mumbai, where it
is constructing a commercial-cum-residential complex. CAPL is a
part of the Bhagat Group promoted by Mr. Suraj Prakash Bhagat and
his family. Apart from real estate development, the Bhagat Group
is also involved in brewing and distilleries. The group has
executed twelve real estate projects in Mumbai.
D. S. CONTRACTORS: CARE Lowers Rating on INR7cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
D. S. Contractors Private Limited (DSCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.69 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB-; Stable
on the basis of best available
information
Short-term Bank 7.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4 on the
basis of best available
information
Detailed Rationale& Key Rating Drivers
CARE has been seeking information from DSCPL to monitor the
rating vide e-mail communications/letters dated October 16, 2018,
November 2, 2018, November 16, 2018 and November 19, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the rating. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on DSCPL's bank facility will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings have been revised on account of delays in servicing
of debt obligations by the company.
Detailed description of the key rating drivers
Delays in debt servicing: As per banker interaction, there have
been delays in servicing of interest of long term debt.
DSCPL is a Panaji (Goa) based company promoted by Mr. Swaran
Singh Gill (Managing Director) along with his wife Ms Jatinder
Kaur. DSCPL undertakes Engineering Procurement Construction (EPC)
from Government bodies as well as Private Companies. The company
is a registered as a Class-IA Contractor in the state of
Karnataka and engaged in civil construction work comprising of
buildings, roads, bridges etc. primarily in the states of
Karnataka and Goa.
DELTA ELECTRO: ICRA Migrates 'D' Rating in Not Cooperating
----------------------------------------------------------
ICRA has moved the long-term and short-term rating for the bank
facilities of Delta Electro Mechanical Pvt. Ltd. (DEMPL) to the
'Issuer Not Cooperating' category. The rating is now denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 6.00 [ICRA]D ISSUER NOT COOPERATING;
Limits-Cash Rating moved to the 'Issuer Not
Credit Cooperating' category
Non-Fund based 10.00 [ICRA]D ISSUER NOT COOPERATING;
Limits-Bank Rating moved to the 'Issuer Not
Guarantee Cooperating' category
ICRA has been trying to seek information from the company so as
to monitor its performance, but despite repeated requests by
ICRA, the company's management has remained non-cooperative. The
current rating action has been taken by ICRA basis best
available/dated/ limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using these
ratings as the ratings may not adequately reflect the credit risk
profile of the company.
Incorporated in November 2010, Delta Electro Mechanical Pvt. Ltd.
was initially engaged in contracting business of Electrical and
HVAC works. Since August 01, 2014, it also commenced contracting
business of plumbing works. The company renders specialized
services in HVAC, electrical, plumbing & firefighting works
across sectors such as hospitality, residential, commercial
buildings, hospitals, IT parks, educational institutes and
industrial complexes. DEMPL is managed by Mr. Sunil Gupta and
other family members.
DURATEX EXPORTS: ICRA Maintains B Rating in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR7.50-crore fund-based term loan
and INR7.50-crore non-fund-based facilities of Duratex Exports
(DE) continue to remain in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING" and '[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Fund- 7.50 [ICRA]B (Stable) ISSUER NOT
Based-Term Loan COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short-term Non- 7.50 [ICRA]A4 ISSUER NOT
fund-based COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Duratex Exports is a partnership firm established in year 1997
for export of shirting fabric manufactured by Durable Silk Mills
Limited, which is the flagship company of the group. The Duratex
Group was founded in early 1970's by Mr. Durga Prasad Agarwal and
subsequently his two brothers namely Mr. Narendra Agarwal & Mr.
Sanjay Agarwal and his son Vikas Agarwal joined the business.
EMC LTD: NCLT Admits Insolvency Bid Against Power Company
---------------------------------------------------------
The Economic Times reports that the National Company Law
Tribunal's Kolkata bench has admitted the insolvency plea against
EMC Ltd, which has defaulted on payments to the tune of INR6,500
crore to banks and other creditors, two people familiar with the
matter said.
According to the report, NCLT took action following a petition
filed by operational creditors to the company and appointed an
interim resolution professional, prompting the financial
creditors led by State Bank of India to swing into action. Banks
were initially not keen in going for insolvency proceedings,
perhaps because the speed of resolution under the bankruptcy law
has slowed, the report says.
"Banks were not initially keen to go for insolvency proceedings
but later, they found potential in the company's resolution
exercise. The lead lender took the initiative to change the
insolvency resolution professional," said one of the people cited
above, ET relays.
According to ET, rating firm Icra said the number of cases
admitted into NCLT but yet to be resolved increased to 816 as on
September 30 from 723 as on June 30. About 30% of these cases
have exceeded the 270-day timeline which was supposed to be the
maximum timeframe allowed for the resolution process under IBC,
the report relays.
Another 20% of the cases have crossed the 180-day timeline. ET
notes that many insolvency professionals are said to have bid for
the case, which has prompted banks to show interest. Lenders now
want an RP of their choice and have sent feelers to some of them,
a top chartered accountant approached by the lenders said, ET
relays. "Lenders have the right to seek a new RP under the law,"
he said.
Icra said the average duration from the date of admission to the
date of approval of the resolution plan to move the company to
liquidation by the NCLT has been about 260 days for the cases
completed so far, ET adds.
Based in Kolkata, India, EMC Ltd provides total turnkey solutions
with design, engineering, construction, erection, testing, and
commissioning of auxiliary subsystems, such as lighting and
illumination, and fire protection systems for power transmission
and distribution, balance of plant, railways, defense,
automobile, and industrial sectors in India, the United States,
Canada, and internationally. It offers transmission line towers,
conductors, line accessories and hardware fittings, substation
steel structures, aluminum alloy extrusion, aluminum alloy
forging, steel forging products, and components. The company also
provides fabricated and assembled foundation cages, steel
fasteners for structures, galvanized or painted structures, PV
solar panel mounting steel structures, custom made lattice for
transmission and distribution, steel derricks for the oil and gas
industry, overhead bridges and cranes, aluminum structures, and
aluminum connectors for substations; industrial power
distribution systems, sub-station and plant electrification,
SCADA, and automatic fare collection systems, as well as
signaling, telecommunication, safety, and security systems; and
phase conductors, roller presses, earth wires and OPGW, and
hardware fittings and accessories. In addition, it offers
installation, execution, and technical services.
GTN TEXTILES: CARE Hikes Rating on INR12.43cr LT Loan to B
---------------------------------------------------------- CARE
Ratings revised the ratings on certain bank facilities of
GTN Textiles Limited (GTL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12.43 CARE B; Stable revised from
Facilities CARE D
Short-term Bank
Facilities 58.30 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The revision in the long-term rating assigned to the bank
facilities of GTL takes into account the improvement in the debt
servicing track record of the company and improved financial
performance during FY18 (refers to the period April 1 to
March 31).
The ratings continue to be constrained by GTL's volatile
operating profit margins, working capital intensive nature of
operations resulting in moderate capital structure and cyclical
nature of the textile industry. The ratings favorably factor in
the vast experience of the promoters in the textile industry and
synergy of operations among the group companies. Going forward,
improvement in profitability and capital structure are the key
rating sensitivities.
Detailed description of the key rating drivers
Key Rating Strengths
Established track record of operations through an experienced
management team: GTL is a part of the GTN-BKP group which is
operating three textile mills with a total spinning capacity of
around 2,15,000 spindles. The promoters have an established track
record for over 45 years. The promoters are assisted by a well
experienced and professional management team. The major
activities of the group companies such as procurement, marketing
and allocation of orders to different units are done at group
level. The group has been a pioneer in bringing several new
technologies into the Indian spinning industry and is among the
few early exporters of textile products from India.
Synergy of operations among group companies: GTL is part of GTN-
BKP group which is operating three textile mills with total
spinning capacity of around 2,15,000 spindles. Major activities
such as procurement, marketing and allocation of orders to
different units are done at group level. Companies are likely to
benefit from this synergy of operations.
Improved financial performance in FY18 and satisfactory debt
servicing track record: During FY18, the total operating income
has increased to INR147.4 crore as against INR121.9 crore in FY17
due to favourable product mix with higher exports and favorable
exchange rate on exports. On account of improved sales
realisation, PBILDT margin improved to 9.25% in FY18 from 5.76%
in FY17. During FY18, GTL registered PBILDT of INR13.6 crore as
against INR7.0 crore in FY17. Despite improvement in operating
profit, the company reported loss in FY18 due to higher interest
and depreciation cost. However losses are reduced to INR2.2 crore
in FY18 as compared to INR6.6 crore in FY17. GCA stood at INR1.06
crore in FY18 as against negative cash accruals of INR4.65 crore
in FY17. Debt equity ratio reduced to 1.14 times as on March 31,
2018 as against 1.61 times as on March 31, 2017.
Key rating weaknesses
Inherent volatility associated with the raw material and its
impact on profitability: The profitability of spinning mills
depends largely on the prices of cotton and cotton yarn which are
governed by various factors such as area under cultivation,
monsoon, international demand-supply situation, etc. Cotton being
the major raw material of spinning mills, volatility in the
prices of cotton impacts the profitability of the company. In the
past five years, profitability margins of GTL have been volatile.
Liquidity position: Debt servicing track record has improved with
company regularising term loan interest and principal repayments
since June 2018 aided by funds received through ICDs and loans
from related parties. The total o/s of ICD/Loan from related
parties as on Sep 30, 2018 was around INR20 Cr as against INR16.2
Cr as on March 31, 2018. Due to working capital intensive nature
of operations, overall gearing remains high at 5.98x as at
March 31, 2018 as against 4.69x as at March 31, 2017.
The company has a surplus land of 5 acres in Aluva, Kerala and is
in the process of selling the same and expects to receive around
INR20 Cr in tranches in Q4FY19 and Q1FY20. The proceeds will be
used to repay the ICDs and the balance will be used to improve
the Working Capital position. Average working capital utilization
in the past 12 months period ended September 2018 remained high
at 96% for the company. The company's Cash and Cash equivalents
stood at INR2.1 Cr outstanding as on September 30, 2018.
The primary business activity of GTN Textiles Ltd (GTL) is
production and sale of cotton yarn. GTL is part of Kerala-based
GTN-BKP (GTN-BK Patodia) having its production facilities in the
state of Kerala. As on March 31, 2018, GTN Textiles Limited (GTL)
had a capacity of 56,848 spindles which includes 34,896 compact
spindles and 21,952 ring spinning. The company produces fine and
super fine counts of cotton yarn in the range of 40s to 140s.
GURUKRUPA CORP: ICRA Maintains B+/A4 Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR18.50 crore bank facilities of
Gurukrupa Corporation continues to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]
B+(Stable)/ A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 18.50 [ICRA]B+(Stable)/A4; ISSUER
NOT COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Established in April 2015, Gurukrupa Corporation (Gurukrupa or
the firm) constructs residential projects. Gurukrupa is currently
executing a residential project namely; Sanskruti Skydeck located
in Surat. The firm is a group company of the Sanskruti Group and
is promoted by Mr. Parimal Savalia and Mr. Rakesh Desai. The
promoters of the group have been present in the construction
business for over a decade.
JAYPEE INFRATECH: Homebuyers Seek Secured Creditors Status
----------------------------------------------------------
Financial Express reports that Jaypee group's homebuyers on
Dec. 10 moved the Supreme Court seeking modification of its
August order which remanded the insolvency case against Jaypee
Infratech (JIL) to the National Company Law Tribunal's Allahabad
bench to be started afresh.
According to the report, the homebuyers want the apex court to
declare them "secured financial creditors" on a par with banks.
A bench led by Justice Madan B Lokur said it would come up for
hearing before an appropriate bench, FE relates.
FE recalls that the top court had on August 9 remanded the issue
back to NCLT to start afresh and sought for the formation of a
new committee of creditors (CoC) that would include homebuyers.
Without going into the issue of how to protect the interests of
homebuyers of embattled JIL, including its earlier promise to
refund the money to some homebuyers, the bench had directed
reconstitution of the CoC according to new amendments to the IBC
that allow homebuyers to be part of the panel, which included
banks and FIs only, FE says.
Homebuyers are considered financial creditors under the amended
IBC and their views will be considered while deciding the
resolution plan of a company.
FE relates that the top court also said both "JIL and Jaiprakash
Associates and their promoters shall be ineligible to participate
in the CIRP by virtue of the provisions of Section 29A." Besides,
the apex court had also allowed RBI's plea to direct banks to
initiate insolvency proceedings against the JAL, the parent
company of JIL, under the Insolvency and Bankruptcy Code, thus
further compounding the Jaypee group's woes.
Sqn ldr SD Mitroo (retd), a homebuyer of Klassic Project of
Jaypee Wish Town in Noida, has now sought modification of the
August order on the grounds that homebuyer's interest to the
extent of their status as "secured" or "unsecured creditors" was
still undecided, according to FE.
He also said after a series of litigation, his relief stands
stalled until the new litigation under the insolvency and
bankruptcy code (IBC) was decided which would consume another
year at the least, the report relays.
"Due to the apex court not deciding on whether home buyers are
secured creditors or not, a vacuum was created to the detriment
of the homebuyers. The court also lost sight of the fact that the
defective mechanism of voting in the corporate insolvency
resolution process (CIRP) worked to the disadvantage of the home
buyers," the application filed through counsel ML Lahoti stated,
adding that the SC also failed to consider the issue of
conducting forensic audit of JIL and JAL from 2009 to 2017, FE
relays.
"The pattern of voting ex-facie defeats the cause of homebuyers
as their claim value (including 8% simple interest) is Rs 16,317
crore (62.7%) with the total number of homebuyers being 28,113
against banks' claim value of Rs 9,892 crore (37.3%) with just 12
banks only.
"Although the homebuyers have 62.7% vote with over 28,000 units
and the banks have only 37.3% vote with 12 units, but the banks
are expected to vote 100% which is established from the trend in
last meeting where not more than 9,500 homebuyers have exercised
their voting power. This is sheer frustration as for passing a
resolution, the imperative requirement is 66% and although the
banks have mere 37% vote, they can always dictate the outcome,"
the homebuyer, as cited by FE, said.
About Jaypee Infratech
Jaypee Infratech Limited (JIL) is engaged in the real estate
development. The Company's business segments include Yamuna
Expressway Project and Healthcare. The Company's Yamuna
Expressway Project is an integrated project, which inter alia
includes construction of 165 kilometers long six lane access
controlled expressway from Noida to Agra with provision for
expansion to eight lane with service roads and associated
structures on build, own, operate and transfer basis. The Company
provides operation and maintenance of Yamuna Expressway for over
36 years, collection of toll and the rights for development of
approximately 25 million square meters of land for residential,
commercial, institutional, amusement and industrial purposes at
over five land parcels along the expressway. The Healthcare
business segment includes hospitals. The Company has commenced
development of its Land Parcel-1 at Noida, Land Parcel-3 at
Mirzapur and Land Parcel-5 at Agra.
On August 8, 2017, the National Company Law Tribunal (NCLT),
Allahabad bench accepted lender IDBI Bank's plea and classified
JIL as an insolvent company. With this, the board of directors of
the company remains suspended.
Anuj Jain was appointed as Interim Resolution Professional (IRP)
to manage the company's business. The IRP had invited bids from
investors interested in acquiring JIL and completing the stuck
real estate projects in Noida and Greater Noida.
In September 2017, the Supreme Court of India stayed the
insolvency proceedings initiated against JIL, after various
associations of homebuyers moved a batch of petitions fearing
they will lose their apartments and not get any compensation,
according to Livemint. The stay was later revoked by the court,
which directed the resolution professional to submit an interim
resolution plan that takes into account the interest of
homebuyers.
The court also directed the parent company, JAL, to deposit
INR2,000 crore to protect the interest of homebuyers. Out of
this, only INR750 crore has been deposited so far, Livemint
relayed.
JIL features in the Reserve Bank of India's first list of
non- performing assets accounts and had debt exposure of over
INR9,783 crore as of September 2017. The parent company, JAL
owes more than INR29,000 crore to various banks, the report
added.
K.S. ENTERPRISES: CRISIL Withdraws B+ Rating on INR25CR Loan
------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of K.S.
Enterprises Private Limited (KSEPL) on the request of the company
and after receiving no objection certificate from the bank. The
rating action is in-line with CRISIL's policy on withdrawal of
its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with KSEPL for
obtaining information through letters and emails dated October
22, 2018 and October 29, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KSEPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
KSEPL is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information,
CRISIL has migrated the ratings on the bank facilities of KSEPL
to 'CRISIL B+/Stable Issuer not cooperating' from 'CRISIL
B+/Stable'.
CRISIL has withdrawn its rating on the bank facilities of KSEPL
on the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
KSEPL was set up by Mr Rajesh Kumar Singal in 1989. The New
Delhi-based company trades in ferrous and nonferrous metal scrap,
including zinc, copper, brass, nickel, and steel scrap. It has
started trading in food products such as pasta and macaroni under
the Wheatley brand.
KAILASH INFRATECH: ICRA Maintains B Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the rating for the INR6.00 crore bank facilities of
Kailash Infratech Private Limited (KIPL) continues to remain in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable)/ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 5.00 [ICRA]B (Stable); ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short Term-Fund 1.00 [ICRA]A4; ISSUER NOT
Based COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
The company was incorporated as Commercial Equipments Private
Limited on June 27, 2011 and commenced commercial operations from
October, 2011. It changed its name to Kailash Infratech Private
Limited in April, 2012. The company is 100% owned by Mr. Kailash
Gupta and his family members and is an authorized dealer of CE
manufactured by THCM for Indore, Gwalior and Jabalpur
territories. The company deals in various models of THCM,
including - mini excavators, midi excavators, wheeled products,
cranes and other machines.
KAPOOR OIL: ICRA Maintains 'B' Rating in Not Cooperating
--------------------------------------------------------
ICRA said the rating for the INR7.40-crore bank facilities of
Kapoor Oil Industries remains under the Issuer Not Cooperating
category. The rating is denoted as [ICRA]B(Stable) ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 6.00 [ICRA]B (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund-based- 1.40 [ICRA]B (Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity to
monitor its performance with repeated reminders for the payment
of an overdue surveillance fee. Despite repeated requests by
ICRA, the entity's management has remained non-cooperative. The
current rating action has been taken by ICRA based on the best
available/dated/limited information on the issuer's performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution, while using this
rating, as it may not adequately reflect the credit risk profile
of the entity.
Kapoor Oil Industries was established on July 04, 2006 as a
partnership firm to engage in the business of crushing
cottonseeds. In FY2013, the firm diversified its operations by
entering into ginning and pressing of cotton business to produce
cotton bales and cottonseeds. The manufacturing unit is located
at Vijapur, Gujarat, and is equipped with 14 ginning machines, a
pressing machine and four expellers. In FY2015, the firm
installed four additional ginning machines, taking the total to
18. Currently, the plant has an installed production capacity of
160 cotton bales and 4 MT of cottonseed oil per day (24-hour
operation). The firm is owned by 12 partners, out of whom six
partners -- Mr. Amrutbhai Patel, Mr. Dahyabhai Patel, Mr.
Chunilal Patel, Mr. Rameshbhai Patel, Mr. Rashikbhai Patel and
Mr. Popatbhai Patel -- manage the firm's operations.
KRISHNA COTTEX: ICRA Migrates 'B' Rating to Not Cooperating
-----------------------------------------------------------
ICRA has moved the ratings for the INR6.05 crore bank facilities
of Krishna Cottex Industries to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA] B(Stable) ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term-Loan 0.87 [ICRA]B(Stable); ISSUER NOT
COOPERATING; Rating moved to
'Issuer Not Cooperating'
category
Cash Credit 4.50 [ICRA]B(Stable); ISSUER NOT
COOPERATING; Rating moved to
'Issuer Not Cooperating'
category
Unallocated Limits 0.68 [ICRA]B(Stable); ISSUER NOT
COOPERATING; Rating moved to
'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Established in March, 2014, Krishna Cottex Industries (KCI) has
set up a cotton ginning and pressing facility at Rajkot in
Gujarat. The plant is equipped with 24 ginning machines and 1
pressing machine with processing capacity of 8160 MT of raw
cotton annually (considering 200 bales a day with 24 hours of
operations with 240 working days in a year). KCI is a partnership
firm with the promoters having an extensive experience in the
cotton industry. The firm commenced commercial operations from
October 2014.
MAHA SAI: ICRA Maintains B Rating in Not Cooperating Category
-------------------------------------------------------------
ICRA said the rating for the INR10.00 crore bank facilities of
Maha Sai Laboratories continues to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA] B
(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 [ICRA]B (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Term Loan 4.75 [ICRA]B (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Unallocated 1.25 [ICRA]B (Stable) ISSUER NOT
Limits COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
The rating is based on no updated information on the entity's
performance since the time it was last rated in May 2017. The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating does not adequately reflect the credit risk profile of the
entity. The entity's credit profile may have changed since the
time it was last reviewed by ICRA; however, in the absence of
requisite information, ICRA is unable to take a definitive rating
action.
As part of its process and in accordance with its rating
agreement with Maha Sai Laboratories, ICRA has been trying to
seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information, and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Maha Sai Laboratories (MSL) was set up in 2011 by Mr. CH
Narasimha Reddy. MSL is involved in purification and distillation
of industrial solvents. The promoter has about 20 years of
experience in the pharmaceutical industry. The facility is
located in Gummadidala, Medak district of Telangana and has a
capacity of 58 KL with a total of five reactors.
MANGLAM AGROTECH: CARE Assigns B+ Rating to INR11.61cr LT Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Manglam Agrotech Pvt. Ltd. (MAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 11.61 CARE B+; Stable Assigned
Detailed Rationale and key rating drivers
The rating assigned to the bank facilities of MAPL is constrained
by its small scale of operations with low profitability margins,
volatile agro-commodity (paddy) prices with linkages to vagaries
of the monsoon, regulated nature of the industry, working capital
intensive nature of business, leveraged capital structure with
moderate debt coverage indicators and its presence in an
intensely competitive nature of the industry with presence of
many unorganized players. The rating, however, derive comfort
from experienced promoters, close proximity to raw material
sources and favorable industry scenario.
Ability of the company to grow its scale of operations with
improvement in profitability margins and to manage working
capital effectively will be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations with moderate profitability margins:
The scale of operation of the company remained small as reflected
by its operating income of INR43.67 crore (INR40.26 crore in
FY17) with a PAT of INR0.23 crore (INR0.16 crore in FY17) in
FY18. Further, the net worth base and total capital employed was
low at INR3.35 crore and INR20.88 crore, respectively, as on
Mar.31, 2018. This apart, the profitability margins of the
company remained moderate marked by PBILDT margin of 6.28% (6.54%
in FY17) and PAT margin of 0.52% (0.41% in FY17) in FY18.
Volatile agro-commodity (paddy) prices with linkages to vagaries
of the monsoon: MAPL is primarily engaged in the processing of
rice products in its rice mills. Paddy is mainly a 'kharif' crop
and is cultivated from June-July to September-October and the
peak arrival of crop at major trading centers begins in October.
The cultivation of paddy is highly dependent on the monsoon.
Unpredictable weather conditions could affect the output of paddy
and result in volatility in price of paddy. In view of seasonal
availability of paddy, working capital requirements remain high
at season time owing to the requirement for stocking of paddy in
large quantity.
Regulated nature of the industry: The Government of India (GoI),
every year decides a minimum support price (MSP) to be paid to
paddy growers which limits the bargaining power of rice millers
over the farmers. The MSP of paddy increased during the crop year
2018-19 to INR1750/quintal from INR1550/quintal in crop year
2017-18. Given the market determined prices for finished product
vis-a-vis fixed acquisition cost for raw material, the profit
margins are highly vulnerable.
Working capital intensive nature of business: Paddy is mainly a
'kharif' crop and is cultivated from June-July to September-
October and the same is processed by rice millers throughout the
year. Hence, the millers are required to carry high levels of raw
material inventory in order to mitigate the raw material
availability risk, resulting in relatively high inventory period.
Accordingly the average inventory holding period was on the
higher side in the range of 75 days to 93 days during last three
years (FY16-FY18). Therefore the operations of the company
remained working capital intensive in nature. The average
utilization of working capital limits was high at around 95%
during last 12 months ended in September 2018.
Leveraged capital structure with moderate debt coverage
indicators: The capital structure was leveraged marked by
debt equity and overall gearing ratios of 2.58x and 5.23x
respectively as on March 31, 2018. The debt coverage indicators
of the company remained moderate marked by interest coverage of
2.45x and total debt to GCA of 13.39x in FY18.
Intensely competitive nature of the industry with presence of
many unorganized players: Rice milling industry is highly
fragmented and competitive due to presence of many small players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. Hooghly and nearby
districts of West Bengal are a major paddy growing area with many
rice mills operating in the area. High competition restricts the
pricing flexibility of the industry participants and has a
negative bearing on the profitability.
Key Rating Strengths
Experienced Promoter: The key promoter of MAPL, Mr. Alok Khemka
has around a decade of experience in the rice milling industry.
Mr. Alok Khemka looks after the day to day operations of the
company. He is supported by other director and a team of
experienced professionals.
Close proximity to raw material sources and favorable industry
scenario: MAPL's presence in a major paddy growing area at
Bhadrak, Odisha results in easy availability of paddy. The
selection of the site is made keeping in mind the close proximity
to raw material sources, cheap availability of labors and nearby
market for its finished goods. Rice, being one of the primary
food articles in India, demand is high throughout the country and
with the change in life style and health consciousness; by-
products of the same like rice bran oil etc. are in huge demand.
Incorporated in March 2008, Manglam Agrotech Private Limited
(MAPL) was promoted by Mr. Alok Khemka and Mrs. Madhumita Khemkha
for setting up a rice milling and processing plant in the state
of Odisha. The company has commenced commercial operations from
February 2010 and it has been engaged in milling and processing
of nonbasmati rice. The rice milling and processing plant of the
company is located at Bhadrak, Odisha with an installed capacity
of 13 tons per hour. The company procures paddy from local
farmers and traders and after processing, the final products are
sold to distributors/wholesalers in the state of Odisha, West
Bengal, Jharkhand, Tamil Nadu, Kerela etc.
PYTEX JEWELLERS: ICRA Maintains B+ Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR10.00 crore bank facilities of
Pytex Jewellers Pvt. Ltd. (PJPL) continues to remain in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 10.00 [ICRA]B+ (Stable); ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Pytex Jewellers Pvt. Ltd. was established in 2006 as a private
limited company by Mr. Pradeep Tayaland family. The company is
engaged in the manufacturing and trading of gold, silver,
diamonds and precious stones. Pytex Jewellers is situated at
Netaji Subhah Place, New Delhi, with a shop area close to 600 sq
yards. Mr. Ankur Tayal assists Mr. Pradeep Tayal in business.
RAJPUTANA INDUSTRIES: ICRA Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------------
ICRA said the rating for the INR35.00 crore bank facilities of
Rajputana Industries Private Limited (RIPL) continues to remain
in the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA]B+ (Stable)/ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 3.60 [ICRA]B+ (Stable); ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term-Fund 14.90 [ICRA]B+ (Stable); ISSUER NOT
Based TL COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short Term- 8.25 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term/Short 8.25 [ICRA]B+ (Stable)/[ICRA]A4;
Term-Unallocated ISSUER NOT COOPERATING;
Rating continues to remain
in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Established in June 2011, RIPL has been promoted by Mrs. Shivani
Sheikh and is a part of the Shera Group. The company is engaged
in manufacturing of copper and copper alloy products viz. Mother
tubes, Rods and wires, etc along with PCC poles (Pre-stressed
Cement Concrete poles) and transformers at its facility located
at Sikar (Rajasthan). The commercial production has started in
July 2015. RIPL was primarily set up as a backward integration
measure to support the other group concerns viz. Shera Energy
Private Limited and Shera Metal Private Limited.
RANGOLI WOOD: CARE Assigns B+ Rating to INR6.25cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Rangoli Wood Private Limited (RWPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.25 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of RWPL is constrained
on account of its upcoming debt-funded capex and its overall
financial risk profile marked by modest scale of operations with
modest profitability, moderate capital structure and debt
coverage indicators along with its working capital intensive
nature of operations during FY18 (refers to the period April 1 to
March 31). The rating is further constrained on account of
susceptibility of its profit margins to volatility in raw
material prices and foreign exchange fluctuation risk coupled
with presence of the company in a highly fragmented and
competitive wood processing industry.
The rating, however, derives strength from the wide experience of
RWPL's promoters in the same line of business as well as location
advantage on account of the manufacturing facilities being
located at Gandhidham-Kutch, Gujarat which has become a hub for
timber and wood based units. The ability of RWPL to increase its
scale of operations and improve its overall financial risk
profile by improvement in profitability, capital structure, debt
coverage indicators and liquidity position are the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Up-coming debt-funded capex: RWPL is planning to expand its
manufacturing facility towards production of plywoods, flush
doors and block doors with an envisaged total project cost of
INR2.00 crore planned to be funded via a mix of term loan and
unsecured loans from promoters. Till now no cost has been
incurred towards the project, while the commercial operations
from the new project is planned to commence from Q1FY20.
Modest scale of operations with modest profitability: The total
operating income (TOI) of RWPL stood modest during FY18, however
it has increased at a compounded annual growth rate (CAGR) of
49.18% during FY16 (A)-FY18 (A) to INR11.73 crore, owing to an
increase in demand of its products. The PBILDT margin stood
moderate at 9.82% during FY18 as against 12.14% during FY17 while
RWPL reported thin PAT margin of 0.01% in FY18 as against net
losses during FY17.
Moderate capital structure and debt coverage indicators with
working capital intensive nature of operations: The capital
structure of RWPL stood moderate marked by an overall gearing
ratio at 2.21 times as on March 31, 2018 while the debt coverage
indicators of RWPL deteriorated and stood weak marked by total
debt to GCA of 9.45 times as on March 31, 2018 [March 31, 2017:
8.16 times]. The interest coverage ratio stood moderate at 2.33
times during FY18. The operations of RWPL are working capital
intensive in nature as marked by an elongated working capital
cycle of 143 days and current ratio that stood modest at 1.13
times as on March 31, 2018. Also, average utilization of working
capital borrowings stood high at ~95% for the past 12 months
ended September 30, 2018.
RWPL maintains a higher inventory level ranging from 140-200 days
owing to nature of business which necessitates the company to
maintain higher inventory of raw materials to cater quickly to
various customer demands.
Susceptibility of operating margins to volatility in raw material
prices and foreign exchange fluctuation risk coupled with
presence in highly fragmented and competitive wood industry: RWPL
is engaged in the business of manufacturing plywood, block boards
and flush doors for which it imports wood from countries like
Indonesia, Malaysia, Vietnam and China for manufacturing its
products. Also, timber prices are volatile in nature. Hence, the
profitability of the company is susceptible to the fluctuations
in timber prices and any adverse fluctuation in the raw material
price is likely to impact the profit margins of the company.
Hence, ability of the company to pass on fluctuations in the raw
material price to its customers will remain crucial. Furthermore,
profitability is exposed to foreign exchange fluctuation risk in
absence of any hedging policy.
Key Rating Strengths
Wide experience of promoters in the same line of business: The
key promoter Mr. Kantilal Devrajbhai Patel has an experience of
around 17 years in the business of manufacturing and trading in
laminates and related products from imported timber. Mr.
Dineshkumar Bhagvanjibhai Patel has an experience of around 18
years in the same line of business. The long standing industry
experience of the promoters and relationship with the suppliers
provides an edge to RWPL for easy availability of main raw
material i.e. timber and establishing the customer base.
Location advantage: The manufacturing facility of RWPL is located
in Chopadava, Gandhidham-Gujarat. Gandhidham is located in close
proximity to Kandla port which has one of the largest stock-yard
of imported timber in Asia and hence has become a hub for timber
and wood processing based units. This results in benefits of easy
availability of raw material, lower logistics cost and labor.
Morbi-based (Gujarat) RWPL was incorporated in June, 2013 as a
Private Limited Company by the Patel and Pandya families. Mr.
Dineshkumar Bhagvanjibhai Patel, Mr. Kantilal Devrajbhai Patel
and Mr. Bhavnesh Dinubhai Pandya are the directors in RWPL. The
Company is into business of manufacturing different composition,
size, grades and thickness of plywood, block boards, flush doors
and core veneer which find application in the furniture industry.
The company operates from its manufacturing facilities located at
Chopdava, Gandhidham - Gujarat with an installed capacity of 10
Lakh Square Meters Per Annum (LSMPA) as on March 31, 2018. RWPL
imports its primary raw materials from countries like Indonesia,
Malaysia, Vietnam and China while it purchases other materials
from local market and sells the finished goods directly or via.
dealers to various states in India.
RM ROCKS: CARE Migrates B Rating to Not Cooperating Category
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of RM Rocks
and Sand Private Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Issuer not
cooperating; Based on best
available information
CARE has been seeking information from RM Rocks and Sand Private
Limited to monitor the rating vide e-mail communications/ letters
dated October 23, 2018, October 25, 2018, November 01, 2018,
November 14, 2018, November 15, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the rating. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines, CARE's opinion is not sufficient
to arrive at fair rating. The rating on RM Rocks and Sand Private
Limited's bank facilities will now be denoted as CARE B; Stable;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on August 14, 2017 the following were
the rating strengths and weaknesses:
Key Rating Weakness
Short track record and small scale of operations: The company
though established in 2011 started its commercial operations in
October 2013. The total operating income of the company stood at
INR4.05 crore during FY17 (Prov.) with low net worth of INR 3.04
crore as on March 31, 2017 (Prov.) as compared to other peers in
the industry.
Geographic concentration risk: The company is engaged in
manufacturing of rock metals and sand and supplies the finished
products to its customers who are based in Kerala. The company
has around 40 customers with them and all the customers are based
in Kerala. Even though the revenue of the company is going up y-
o-y, it has geographic risk as all the customers are based in
only one region.
Highly fragmented industry with intense competition from other
established and upcoming players: The company RM Rocks & Sand
Private Ltd is facing stiff competition from many organized and
unorganized players in the business of rocking of metals and
stones as many companies easily enter the business due to low
capital intensity nature of the business.
Key Rating Strengths
Moderate experience of promoter in rock metal industry: RMSPL was
promoted by Mr. Mathai Roger who is qualified BBA and has total 3
years' of experience in the field of granite and rock industry
since the inception of company. Ms Minu Roger who is qualified
Msc (Botany) and also has similar experience in rock metal
industry.
Moderate experience of promoter in rock metal industry: RMSPL was
promoted by Mr. Mathai Roger who is qualified BBA and has total 3
years' of experience in the field of granite and rock industry
since the inception of company. Ms Minu Roger who is qualified
Msc (Botany) and also has similar experience in rock metal
industry.
Stable outlook of rock industry: India is among the leading
countries in mining and export of granite. Geographically, the
southern and eastern belts of India are abundant in granite
deposits. Indian granite stone has become most sought after and
extensively used stone material in building constructions and
massive structures throughout the world.
Liquidity Analysis: The current ratio of the company is above
unity during the review period and stood at 2.28x as on March 31,
2017 (Prov.) due to relatively high current assets as compared to
current liabilities on account of higher bank deposits with
banks. The cash and cash equivalents of the company stood at INR
0.05 crore as on March 31, 2017 (Prov.).
Kerala Based, R.M. Rocks and Sand Private Limited (RMSPL) was
incorporated in the year 2011 promoted by Mr. Rohit Mathai Roger
and Mrs. Miinu Roger. The company carries quarrying and mining of
rocks activities on its own quarry land and then converts the
blocks of rock into small stones. The rock is converted into
metal aggregate of different sizes and sells the products to its
customers Viz. Indtech Interior & Contractors Private Limited
(Interior designers), Sanu Industries, SeenaiEldho and Roger
Mathew & company among all. All the customers are based out of
Kerala.
SAI INTERNATIONAL: ICRA Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the rating for the INR13.0 crore bank facilities of Sai
International (SAI) continues to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA] B+
(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 13.00 [ICRA] B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Sai International is a partnership firm and was incorporated in
2005 by two brothers Mr Nishant Jaggaand Mr. Vishal Jagga. The
firm manufactures footwear at its plant at Bahadurgarh in
Haryana. The product profile of the firm includes sports shoes,
sandals and slippers. The sports shoes of the firm are sold under
the brand name 'Tavera' whereas the sandals and slippers are sold
under the brand name 'PU-Lite'. The firm's major raw material is
Polyurethane, which is mostly imported and Rexine which is
procured from suppliers in Haryana, Delhi and Uttar Pradesh.
SKM INFRAVENTURE: Ind-Ra Migrates BB LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated SKM Infraventure
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based limit migrated to Non-Cooperating
Category with IND BB (ISSUER NOT COOPERATING) rating;
-- INR10.0 mil. Non-fund-based limit migrated to Non-Cooperating
Category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR80.0 mil. Proposed fund-based limit migrated to Non-
Cooperating Category with Provisional IND BB (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 15, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
SKM Infraventure was incorporated in 2014 by Mr. Satyendra Kumar
Mishra in Keonjhar, Odisha. The company is primarily involved in
civil engineering works.
SUNSHINE CONVEYORS: ICRA Maintains B Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the rating for the INR10.00 crore bank facilities of
Sunshine Conveyors Private Limited continue to remain under
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable)/ [ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based- 2.50 [ICRA]B (Stable) ISSUER NOT
limit-cash COOPERATING; Rating continues
credit to remain under 'Issuer Not
Cooperating' category
Fund-based- 1.00 [ICRA]B (Stable) ISSUER NOT
Limit-proposed- COOPERATING; Rating continues
cash credit limit to remain under 'Issuer Not
Cooperating' category
Fund-based- 1.35 [ICRA]B (Stable) ISSUER NOT
Limit-Term loans COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non-fund-based- 3.50 [ICRA]B (Stable) ISSUER NOT
Limit-Bank COOPERATING; Rating continues
Guarantee to remain under 'Issuer Not
Cooperating' category
Proposed-Bank- 1.00 [ICRA]B (Stable) ISSUER NOT
Guarantee COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated limit 0.65 [ICRA]B (Stable)/[ICRA]A4
ISSUER NOT COOPERATING;
Rating continues to remain
under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity.
Incorporated in 2002, SCPL is involved in manufacturing rubber
conveyor belts. The company has its facility in Rajnandgaon in
Chhattisgarh. The clientele of the company mainly comprises
public sector entities across the country.
T M SUBRAMANIAM: CARE Assigns B Rating to INR8.16cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of T M
Subramaniam & Co (TMS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 8.16 CARE B; Stable Assigned
Short-term Bank
Facilities 2.00 CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of TMS is primarily
tempered by decline in total operating income and low net worth
base, leveraged capital structure and week debt coverage ratios,
constitutional risk being a partnership firm, tender driven
nature of business with high competitive intensity,
susceptibility of profit margins due to volatility in input
prices, short term revenue visibility from current order book
position and working capital intensive nature of operations.
However, the rating derives comfort from established track record
of operations and Experienced partners and Increasing PBILDT
margin albeit decline in PAT margin.
Going forward, the ability of the firm to increase its scale of
operations and maintain the profitability margins in competitive
environment, ability of the firm to improve its capital structure
while managing working capital requirements effectively, ability
of the firm to acquire new orders and collect the payment in
timely manner and ability of the firm to diversify its
geographical and customer reach would be key rating sensitivity.
Detailed description of the key rating drivers
Key Rating weaknesses
Decline in total operating income and low net worth base: The TOI
of the firm is continuous declining from FY16 to FY18. It has
been marked by a decline of 24% in FY17 and 53% in FY18. This
drop in TOI factors, the low execution of orders for the past two
FYs by the firm. The firm has achieved INR10.01 Crore of revenue
upto October 2018. Apart, tangible Net worth of the firm also
decreased as on March 31, 2018 owing to withdrawal of capital by
the partners.
Leveraged capital structure and weak debt coverage indicators
The capital structure of the TMS deteriorating and stood
leveraged, marked by its debt equity ratio of 2.25x as on
March 31, 2018. (0.65x as on March 31, 2017), and overall gearing
ratio of 13.22x as on March 31, 2018. (3.64x as on March 31,
2017). This mainly accounts the withdrawal in the capital account
by the partners to the tune of INR 2.56 Crore, with increase in
the quantum of total debt level. Increase in total debt level
mainly includes unsecured loans from others and loans from NBFCs.
The firm has week debt coverage indicator marked by total debt to
GCA of 12.81x in FY18, mainly on account of decrease in the PAT.
However, interest coverage ratio stands comfortable at 2.93x in
the corresponding year.
Short term revenue visibility from current order book: TMS has
outstanding order book worth INR36.33 Crore as on October 25,
2018 of which a significant part is expected to be executed by
March 2019. This comfortable order book position provides revenue
visibility for the short term period.
Constitutional risk, being a partnership firm: TMS, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Furthermore, partnership firms have restricted access
to external borrowing as credit worthiness of partners would be
the key factors affecting credit decision for the lenders. There
has been withdrawal in the capital account by the partners to the
tune of INR 2.56 Crore in FY18.
Tender driven nature of business with high competitive intensity:
The business prospects of TMS are highly dependent on the
government tenders and the business volume remains volatile
depending upon the extent of government tenders floated during
the year. Further, the construction industry is highly fragmented
in nature with presence of large number of unorganized players at
regional level and thereby creating intense competition within
the players.
Susceptibility of profit margins due to Volatility in input
prices The major input materials for the firm are bitumen,
asphalt, murram, stone chips and metals, the prices of which are
volatile. Further the orders executed by the firm does not
contain price escalation clause and thus the firm remains exposed
to the price volatility of the input materials. This apart, any
increase in labour prices will also impact its profitability
being present in a highly labour intensive industry.
Geographic and customer concentration risk: The order book
position of the firm constitutes orders only from the state of
Tamil Nadu which exposes the firm to geographical and customer
concentration risk.
Working Capital Intensive Nature of operations: The operations of
the entity remained working capital intensive as the entity
executes orders mainly for public sector units and government
departments. The company makes the payments depending upon the
realization from its clients. Due to its working capital
intensive nature of operations, the entity stretches its payments
to its suppliers. The average collection period and creditor's
period is stretching upto 389 days. Total sundry debtors also
include the loan given to the firm's associate concern M/s. Sri
Baghavathy Theatre to the tune of INR2.66 Crore.
Key Rating Strengths
Established track record of operations and Experienced partners:
TMS is operating since 1973 and hence recording a significant
track history of operations with more than four decades. The
company is managed by three partners namely, Mr. T.M.S.
Sivakumar, Mr. Shakthi Sivakumar and Mr. T.S.S. Sharan Kumar. All
the three partners are working along with their father Mr. T M
Subramaniam since it was as a proprietorship firm, and later
joined as partners by reconstituting the firm into partnership
entity. Therefore all the three partners are well experienced in
the civil contracting sector. Currently Mr. T M S Sivakumar is
the managing partner who is taking care of all the operational
activities of the firm.
Increasing PBILDT margin albeit decline in PAT margin: TMS has
shown growth in its PBILTD margin in FY18, marked by 15.53% as
against 12.00% in FY17, mainly on account of reduced operational
costs such as sub contract charges and material purchases.
However PAT margin decreased from the previous year and stood
thin marked by 1.74% during the review period. It is because of
decrease in absolute value of PBILDT.
Liquidity Analysis: The liquidity position of the firm stood week
marked by the current ratio at 0.75x as on March 31, 2018. This
may due to elongated collection period of upto 311 days and
creditor's period of upto 389 days.
T M Subramaniam & Co (TMS) was established as a proprietorship
concern in the year 1973 by Mr. T.M. Subramaniam. Later in 2013,
it has been reconstituted as a partnership firm along with his
sons, Mr T.M.S Sivakumar, Mr. Shakthi Sivakumar and Mr. TSS
Sharan Kumar as partners. Chennai based TMS, undertakes all civil
construction projects for government organisations within Tamil
Nadu State. The company receives the work order from government
organization by participating in the tenders. TMS purchases raw
materials like sand, cement, iron and bricks from local
suppliers.
TELUGU CINE: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Telugu Cine
Workers Cooperative Housing Society Limited's bank loan rating to
the non-cooperating category. The issuer did not participate in
the rating exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised
to take appropriate caution while using the rating. The rating
will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR500 mil. Fund-based working capital migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on
December 6, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Telugu Cine Workers Cooperative Housing Society is registered
under the Andhra Pradesh Co-Operative Societies Act 7 of 1964. It
was established in 1991 for the construction and handover of
housing units in Chitrapuri Colony, Hyderabad.
UMACHI FOODS: CARE Migrates B Rating to Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Umachi
Foods & Commodities Private Limited (UFC) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.00 CARE B; Stable; Issuer not
Facilities cooperating; On the basis of
best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from UFC to monitor the rating
vide e-mail communications/letters dated August 17, 2018,
September 4, 2018, September 17, 2018, October 3, 2018,
October 18, 2018, November 13, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Umachi Foods & Commodities Private
Limited's bank facilities will now be denoted as CARE B; Stable;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of Umachi Foods &
Commodities Private Limited (UFC) is constrained by its short
track record of operations, fluctuating scale of operations, low
and fluctuating profitability margins, weak solvency position and
high reliance on the working capital borrowings. The rating is
further constrained by the inherent commodity price risk along
with susceptibility of margins to foreign currency fluctuations
in a competitive market environment. The rating, however, derives
strength from the resourceful promoters and close proximity to
the producers.
Detailed description of the key rating drivers
Key Rating Weaknesses
Working Capital intensive nature of operations: The operations of
the company are working capital intensive in nature with high
reliance on the working capital borrowings. There had also been
instances of cash credit limit over utilization in the past,
which were settled within 15 days. The operating cycle of the
company also remained elongated at ~193 days, as on March 31,
2017.
Weak financial risk profile: The operating income of the company
has remained fluctuating in the past with total operating income
of INR106.50 cr. in FY17 (PY: INR277.52 cr.). The profitability
margins of the company remained at low level with PBILDT and PAT
margins of 2.95% and 0.25%, respectively, in FY17 (PY: 1.32% and
0.14%, respectively). The capital structure of the company has
remained weak with long term debt to equity ratio and overall
gearing ratio at 2.69x and 10.80x, respectively as on March 31,
2017 (PY: 3.46x and 10.75x, respectively). The debt coverage
indicators also remained weak with total debt to GCA ratios of
87.59x, as on March 31, 2017 (PY: 69.59x) and interest coverage
ratio of 1.02x in FY17 (PY: 1.26x).
Competitive nature of industry and susceptibility of
profitability margins to foreign exchange rates movements: Due to
low entry barriers to the trade, UFC's business risk profile is
constrained by competition from both organized and unorganized
players who offer similar products in the overseas market.
Further, the company is also exposed to international regulatory
policies in regard to trading of products. Any adverse change in
target nation policy will have a direct impact on UFC's business
risk profile. Additionally, the margins of the company remain
vulnerable to the
fluctuation in the foreign exchange rates.
Inherent commodity price risk: The company is primarily an
exporter of basmati rice, prices of which are linked to the
demand supply scenario in the domestic and international market.
Moreover, with the production of the rice dependent on rainfall,
the company is exposed to the vagaries of nature. The company's
sales are largely order backed. Hence, the risk of carrying
commodity (rice) at a price is mitigated to an extent.
Key Rating Strengths
Resourceful promoters: The company is promoted by Mr. Jawahar Lal
and Mrs. Rachana Luthra (wife of Mr. Jawahar Lal) who have been
associated with the company since its inception. The directors
are further assisted by a team of professionals who are highly
experienced in their respective domains. To fund various business
requirement of the company in the past, regular funds have been
infused by the promoters and related parties in the past.
Close proximity to producers: UFC operates its business from
Khampur, New Delhi and Kaithal, Haryana which are in close
proximity to major hubs for paddy/rice, leading to its easy
availability. The presence of UFC in vicinity to the rice
processing units gives it an advantage over competitors in terms
of easy availability of the rice as-well-as favorable pricing
terms. The favorable location also puts the company in a position
to cut on the freight cost.
Umachi Foods & Commodities Private Limited (UFC) was incorporated
in March-2014 by Mr. Jawahar Lal and Mrs. Rachana Luthra, while
the operations of the company started in September-2014 (FY16
being the first full year of operations of the company). The
company is engaged in the bulk trading of packaged basmati rice
since the commencement of its operations. The company is
primarily engaged in exports to the Middle-East, Australia, South
East Asia, etc. with income from export sales constituted ~64% of
the total operating income in FY17 (~91% in FY16). The basmati
rice is procured from rice mills directly as well as through
dealers and agents based in Delhi, Haryana, Punjab and Uttar
Pradesh.
=================
S I N G A P O R E
=================
NOBLE GROUP: Secures Extension for Restructuring Bid
----------------------------------------------------
The Strait Times reports that Noble Group has been given a second
time extension for a condition key to its restructuring, the
troubled commodities trader said on Dec. 12.
This follows its Dec. 11 announcement that it will apply to the
Bermudian court for a hearing on Dec. 14 for a court-ordered
administration in Bermuda to complete the restructuring of the
company into New Noble after Singapore authorities last week
barred Noble from re-listing the restructured entity because of
an on-going probe into suspected improper accounting, according
to the Strait Times.
The Strait Times says the Securities Industry Council has granted
an extension till Dec. 31 for Noble to rely on the whitewash
resolution approved by shareholders at an Aug. 27 special general
meeting, in view of the additional time needed due to the court
application. This key waiver was initially due to expire on
Nov. 27 and was already extended once till Dec. 11. It allows the
restructuring deal to go ahead without Noble's creditors - who
are due to take control of the company - being forced to make a
buyout offer for its shares, the report says.
However, the schemes of arrangement provide that the furthest the
date can be pushed back is until Dec. 31, with the agreement of
Noble and its creditors, The Strait Times relates.
According to The Strait Times, Noble said on Dec. 11 that it
anticipates that, subject to the order being made by the Bermuda
court on Dec. 14, the restructuring effective date will occur on
Dec. 18. As a result of the restructuring of Noble, existing
shareholders of the company would still have a total of 20 per
cent of shares in New Noble allocated to them under the current
restructuring plan - even though Singapore regulators have not
allowed Noble's listing status to be transferred to New Noble.
Noble, once Asia's biggest commodity trader, has warned that if
the restructuring fails, it would begin insolvency proceedings,
likely in Britain, the report notes.
About Noble Group
Noble Group has been in operation since 1986 and, today, is one
of the world's largest commodity traders by volume. Noble
maintains its corporate office in London, England, and is listed
on the Singapore Exchange Limited (SGX: CGP). Though its
registered office is located in Bermuda, Noble engages in no
activities or operations there.
Noble Group Limited functions as the ultimate holding company of
Noble Group, holding shares in a number of intermediate holding
companies incorporated in several jurisdictions including
Bermuda, the British Virgin Islands, Singapore, and Hong Kong,
which in turn own shares in additional holding companies and
operating companies in various jurisdictions.
In March 2018, Noble reached terms of a restructuring plan that
will hand over a bulk or 70 per cent of the equity to senior
creditors, 10 per cent to management and the rest to existing
shareholders. In August, 99.96 percent of shareholders approved
the plan, and as of October 2018, 88% of the holders of existing
senior debt instruments have acceded to the RSA.
To effectuate the restructuring, the restructuring support
agreement contemplates two inter-conditional schemes of
arrangement under section 99 of the Companies Act 1981 of Bermuda
(the "Bermudan Scheme") and Part 26 of the Companies Act 2006 of
England and Wales. The English Scheme will be the primary
proceeding to restructure Noble's funded debt.
On Sept. 21, 2018, Noble notified its creditors of its intention
to propose the English Scheme. The English Court conducted the
English Scheme Sanction Hearing on Nov. 12, 2018 to consider
approving the English Scheme.
Noble has obtained an order from the Supreme Court of Bermuda,
pursuant to section 99 of the Companies Act 1981 of Bermuda
granting leave to convene meetings of the Scheme Creditors of
Bermuda to consider and approve a Bermudan scheme of arrangement
for Noble.
Noble Group on Oct. 17, 2018, filed a Chapter 15 bankruptcy
petition in New York to seek U.S. recognition of its
restructuring (Bankr S.D.N.Y. Case No. 18-13133). Kirkland &
Ellis LLP serves as U.S. counsel.
====================
S O U T H K O R E A
====================
* SOUTH KOREA: 190 Firms Need Restructuring This Year, FSS Says
---------------------------------------------------------------
Yonhap News Agency reports that the Financial Supervisory Service
(FSS) said 190 companies need to implement restructuring measures
this year, but the number of firms on the annual list declined
from 2017.
The number of big companies placed on the list fell to 10 from 25
last year, the financial watchdog said, Yonhap relays.
However, the number of small- and medium-sized firms placed on
the list rose to 180 in 2018, compared with 174 last year, the
FSS said.
According to Yonhap, the FSS said the combined borrowings of the
190 firms stood at KRW2.3 trillion (US$2.04 billion).
The FSS unveiled the list, without identifying the 190 firms by
name, after conducting a credit risk analysis on companies that
showed signs of financial health problems, Yonhap notes.
Yonhap says the FSS rated all firms in a category ranging from
A to D, with A and B being considered financially healthy.
Companies that are rated C and D should be placed on debt workout
program or court receivership, the report adds.
*********
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.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2018. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***