/raid1/www/Hosts/bankrupt/TCRAP_Public/181226.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
Wednesday, December 26, 2018, Vol. 21, No. 254
Headlines
A U S T R A L I A
BESTJET TRAVEL: First Creditors' Meeting Set for Jan. 2
BIG FISH: First Creditors' Meeting Set for Dec. 31
FLOW SYSTEMS: First Creditors' Meeting Set for Jan. 4
FUSE INSIGHTS: First Creditors' Meeting Set for Jan. 3
LAGUNA GOLD: First Creditors' Meeting Set for Jan. 3
NATIONAL RMBS 2018-2: S&P Assigns BB (sf) Rating to Class E Notes
RCR TOMLINSON: John Holland Buys Rail and Transport Business
REDSTAR TRANSPORT: 400 Workers to Receive Entitlements, PwC says
STACEY APARTMENTS: First Creditors' Meeting Set for Dec. 31
UBIQ PTY: First Creditors' Meeting Set for Jan. 7
C H I N A
CHINA LESSO: Fitch Affirms Then Withdraws BB+ LT IDR
HNA GROUP: In Talks to Sell Ingram Micro to Apollo Global
JIANGYIN CHENGXIN: Fitch Pulls B LT IDR due to Insufficient Info
MODERN LAND: Moody's Assigns B3 Rating to Proposed USD Notes
RONSHINE CHINA: Fitch Rates US$200MM Sr. Notes Final 'B+'
SHRIRAM TRANSPORT: Fitch Affirms BB+ LT IDR, Outlook Stable
ZHONGRONG XINDA: Fitch Affirms B- LT IDR, Outlook Negative
I N D I A
ABHISHEK SOLAR: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
ABLAZE INFO: Insolvency Resolution Process Case Summary
ADEL LANDMARKS: Insolvency Resolution Process Case Summary
ADVANCE INFRA: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
ANAND ELECTRICALS: CRISIL Lowers Rating on INR10cr Loan to D
ARVEE LABORATORIES: CRISIL Maintains B- Rating in Not Cooperating
BHAGIRATHA POLYMERS: CRISIL Assigns B+ Rating to INR5.0cr Loan
COMBINE DIAMOND: CARE Lowers Rating on INR48cr LT Loan to D
DAYAL COMMERCIAL: Insolvency Resolution Process Case Summary
DIGAMBER BUILDCON: Insolvency Resolution Process Case Summary
ERA T & D: Insolvency Resolution Process Case Summary
GOLDEN GLOW: Insolvency Resolution Process Case Summary
GROWTHPATH SOLUTIONS: CARE Hikes Rating on INR6.0cr Loan to B+
H N CONSTRUCTION: Ind-Ra Migrates BB+ Rating to Non-Cooperating
JALA SHAKTI: CRISIL Hikes Rating on INR20.64cr LT Loan to B-
J.S.R. CONSTRUCTIONS: CRISIL Cuts Rating on INR45CR Loan to D
JSR MULBAGAL: CRISIL Lowers Rating on INR105cr Term Loan to D
K. SENTHIL: CRISIL Assigns B+ Rating to INR5.0cr Cash Loan
KRISHNA GODAVARI: Insolvency Resolution Process Case Summary
MAHENDRAKUMAR BABULAL: Insolvency Resolution Process Case Summary
MAK HOSPITALS: CRISIL Assigns B+ Rating to INR8cr Term Loan
MALLAIAH AND SONS: CARE Reaffirms B Rating on INR10.43cr Loan
MAYA CONSTRUCTION: Ind-Ra Lowers Long Term Issuer Rating to BB-
METAL CARE: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating
MICRO INTERNATIONAL: CARE Reaffirms B+ Rating on INR8.28cr Loan
MONNET POWER: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
MURLI INDUSTRIES: Insolvency Resolution Process Case Summary
NAVAYUGA JAHNAVI: CARE Reaffirms D Rating on INR720cr LT Loan
NAVAYUGA QUAZIGUND: CARE Reaffirms D Rating on INR2030.35cr Loan
PAROLE HOTELS: Insolvency Resolution Process Case Summary
PV KNIT: CARE Lowers Rating on INR5.60cr LT Loan to D
RAJ WATERSCAPE: CRISIL Reaffirms D Rating on INR25cr Loan
RASHMI STEELS: CRISIL Lowers Rating on INR15cr Cash Loan to D
RATIONAL BUILDCON: Insolvency Resolution Process Case Summary
RGR KNIT: CRISIL Assigns B+ Rating to INR3.5cr Cash Loan
ROCKLAND CERAMIC: CARE Reaffirms D Rating on INR14.81cr LT Loan
SAMBHAAV MEDIA: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
SHRI BADRINARAIN: Insolvency Resolution Process Case Summary
S R BREWERIES: Insolvency Resolution Process Case Summary
SR CONSTRUCTION: CRISIL Migrates B+ Rating to Not Cooperating
SRIRAMAGIRI SPINNING: Insolvency Resolution Process Case Summary
VENUS MULTIPLEX: CARE Lowers Rating on INR15cr LT Loan to B
VISION ROOFINGS: CARE Lowers Rating on INR4.62cr LT Loan to B+
YSG CABS: Insolvency Resolution Process Case Summary
M A L A Y S I A
1MDB: MAS Bans Ex-Goldman Sachs Banker Over Role in 1MDB Scandal
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A U S T R A L I A
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BESTJET TRAVEL: First Creditors' Meeting Set for Jan. 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- Bestjet Travel Pty Ltd, trading as Bestjet.com
-- Wynyard Travel Pty Ltd, trading as Harvey World Travel
Barrack Street
-- Brooklyn Travel Pty Ltd
will be held at the offices of Pilot Partners, at Level 10, 1
Eagle Street, in Brisbane, Queensland, on Jan. 2, 2019, at
12:00 p.m.
Nigel Robert Markey and Bradley Hellen of Pilot Partners were
appointed as administrators of Bestjet Travel on Dec. 18, 2018.
BIG FISH: First Creditors' Meeting Set for Dec. 31
--------------------------------------------------
A first meeting of the creditors in the proceedings of Big Fish
Golf Australia Pty Ltd will be held at Kedron-Wavell Services
Club, 21 Kittyhawk Drive, in Chermside, Queensland, on Dec. 31,
2018, at 1:00 p.m.
David Iannuzzi and Vincent Pirina of Veritas Advisory were
appointed as administrators of Big Fish on Dec. 17, 2018.
FLOW SYSTEMS: First Creditors' Meeting Set for Jan. 4
-----------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Flow Systems Pty Ltd
- Flow Systems Constructors Pty Ltd
- Cooranbong Water Pty Ltd
- Huntlee Water Pty Ltd
- Central Park Water Pty Ltd
- Discovery Point Water Pty Ltd
- Green Square Water Pty Ltd
- Pitt Town Water Pty Ltd
- Wyee Water Pty Ltd
- Flow Systems Operations Pty Ltd
- Loxford Development Holdings Pty Ltd
- Loxford Waters Pty Ltd
- IDI Loxford Pty Ltd
- Inneholde Pty Ltd
- Buskas Pty Ltd
- Loxford Energy Pty Ltd
will be held at Novotel Sydney on Darling Harbour, 100 Murray
Street, in Pyrmont, NSW, on Jan. 4, 2019, at 11:30 a.m.
Christopher Clarke Hill and Phil Carter of PricewaterhouseCoopers
were appointed as administrators of Flow Systems on Dec. 20,
2018.
FUSE INSIGHTS: First Creditors' Meeting Set for Jan. 3
------------------------------------------------------
A first meeting of the creditors in the proceedings of Fuse
Insights Pty Ltd will be held at the offices of PCI Partners Pty
Ltd, at Level 8, 179 Queen Street, in Melbourne, Victoria, on
Jan. 3, 2019, at 11:00 a.m.
Philip Newman of PCI Partners Pty Ltd was appointed as
administrator of Fuse Insights on Dec. 20, 2018.
LAGUNA GOLD: First Creditors' Meeting Set for Jan. 3
----------------------------------------------------
A first meeting of the creditors in the proceedings of Laguna
Gold Limited will be held at the offices of CPA Australia, at
Level 20, 28 Freshwater Place, in Southbank, Victoria, on Jan. 3,
2019, at 4:30 p.m.
Craig Crosbie and Michael Fung of PricewaterhouseCoopers were
appointed as administrators of Laguna Gold on Dec. 19, 2018.
NATIONAL RMBS 2018-2: S&P Assigns BB (sf) Rating to Class E Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for National RMBS Trust 2018-2 Series
2018-2.
The ratings reflect:
-- The credit risk of the underlying collateral portfolio and
the credit support provided to each class of notes are
commensurate with the ratings assigned. Credit support is
provided by subordination and lenders' mortgage insurance
(LMI) cover for 11.3% of the collateral portfolio. The credit
support provided to the rated notes is sufficient to cover
the assumed losses at the applicable rating stress. The
assessment of credit risk takes into account National
Australia Bank Ltd. (NAB)'s underwriting standards and
approval process, which are consistent with industry-wide
practices, the servicing quality of NAB, and the support
provided by the LMI policies on 11.3% of the portfolio.
-- The rated notes can meet timely payment of interest, and
ultimate payment of principal under the rating stresses. Key
rating factors are the level of subordination provided, the
LMI cover, the interest-rate swaps, the principal draw
function, the provision of a liquidity facility, and the
provision of an extraordinary expense reserve. S&P's analysis
is on the basis that the notes are fully redeemed by their
legal final maturity date and it does not assume the notes
are called at or beyond the call date.
-- S&P's ratings also take into account the counterparty
exposure to NAB as interest-rate swap provider, liquidity
facility provider, and bank account provider. Interest-rate
risk between any fixed-rate mortgage loans and the floating-
rate obligations on the notes will be appropriately hedged
via interest-rate swaps These counterparty exposures meet S&P
Global Ratings' counterparty criteria.
-- S&P also has factored into its ratings the legal structure of
the issuer, which is established as a special-purpose entity
and meets its criteria for insolvency remoteness.
RATINGS ASSIGNED
National RMBS Trust 2018-2 Series 2018-2
Class Rating Amount (AUD mil.)
A1-A AAA (sf) 750.0
A1-B AAA (sf) 750.0
A2 AAA (sf) 65.3
B AA (sf) 29.30
C A (sf) 16.30
D BBB (sf) 6.5
E BB (sf) 6.5
F NR 6.55
NR--Not rated.
RCR TOMLINSON: John Holland Buys Rail and Transport Business
------------------------------------------------------------
Michael Bleby at Australian Financial Review reports that a
growing John Holland has purchased the RCR O'Donnell Griffin rail
and transport business from the administrator of failed
engineering contractor RCR Tomlinson for an undisclosed sum.
AFR relates that John Holland, which has been expanding from
contracting into commercial property development under chief
executive Joe Barr and the ownership of China Communications
Construction Company, said on Dec. 21 it had purchased the 400-
person business to boost its existing transport infrastructure
capability.
"John Holland has entered into an agreement to purchase RCR
O'Donnell Griffin's rail and transport business," AFR quotes a
spokeswoman as saying. "In a time of unprecedented growth for
our business and our industry, we are committed to expanding our
expertise."
The acquisition, in the low tens of millions of dollars, will
boost John Holland's capabilities in rail signalling and power
systems, overhead wire and traction power, AFR says.
AFR notes that the company, along with Lendlease Engineering,
Bouygues Construction and Capella Capital is part of the Cross
Yarra Partnership delivering the AUD6 billion Melbourne Metro
Rail package that includes nine kilometres of tunnel and five
underground stations.
Administrators McGrathNicol put RCR Tomlinson up for sale last
month after it became unable to complete its solar farm projects,
despite having raised AUD100 million from investors just three
months earlier, AFR states.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 26, 2018, SmartCompany said one of Australia's largest
publically listed construction companies RCR Tomlinson has
collapsed just a few months after raising over AUD100 million
from investors, with the company blaming an inability to secure
additional funding as the reason for the business' collapse.
RCR, based in Perth, is the company behind a number of major
infrastructure projects across the nation, specifically in the
mining and energy sectors. It was most recently working on two
solar farms in Queensland, for which it was required to secure
the additional AUD100 million of capital after the costs for the
projects ballooned to over AUD50 million.
REDSTAR TRANSPORT: 400 Workers to Receive Entitlements, PwC says
----------------------------------------------------------------
ABC News reports that millions of dollars owed to hundreds of
truck drivers across Australia following the sudden closure of a
national freight firm will be covered by the Government's worker
protection scheme, its liquidator has confirmed.
PricewaterhouseCoopers confirmed on Dec. 21 it was appointed to
wind up Redstar Transport, ending speculation about the company's
future, ABC says.
According to ABC, PwC's Stephen Longley said the Federal
Government's worker protection scheme means Redstar Transport's
400 workers will be paid most of the AUD7 million owed in
entitlements, such as annual and long service leave.
But he said it would be "a real time of uncertainty" for many
drivers, and that PwC was working with Toll to find work for
affected staff, the report relays.
ABC relates that Redstar's liquidators said the company could not
bridge a AUD3.5 million cashflow gap to immediately speed-up
payments.
The transport union wants the Federal Government to fast-track
the entitlement payments to workers, the report says.
"It could and should step up and ensure there's at least an
interim payment made to these families so they are under less
stress for Christmas," ABC quotes Michael Kaine of the Transport
Workers Union (TWU) as saying.
ABC adds the TWU said about 100 workers had informed them they
had been sent home in the past day, and depots have been shut
down around the country.
According to the report, TWU spokesman Nick McIntosh said the
union was working to support affected workers, especially in the
days before Christmas.
"We're not talking about a two-bit operation here, we are talking
about a company that employs literally hundreds of transport
workers around the country," the report quotes Mr. McIntosh as
saying. "It is a shock and I'm sure the drivers today are
shocked. As soon as we get better information, we will be
communicating that with our members."
Redstar has offices in Brisbane, Melbourne, Adelaide, Sydney,
Perth and Dubbo.
STACEY APARTMENTS: First Creditors' Meeting Set for Dec. 31
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Stacey
Apartments Pty Ltd will be held at the offices of O'Brien Palmer
Level 9, 66 Clarence Street, in Sydney, NSW, on Dec. 31, 2018, at
10:30 a.m.
Christopher John Palmer and Liam Bailey of O'Brien Palmer were
appointed as administrators of Stacey Apartments on Dec. 17,
2018.
UBIQ PTY: First Creditors' Meeting Set for Jan. 7
-------------------------------------------------
A first meeting of the creditors in the proceedings of UBIQ Pty
Limited will be held at the offices of BCR Advisory, at Level 14,
60 Margaret Street, in Sydney, NSW, on Jan. 7, 2019, at
3:30 p.m.
Geoffrey Davis and John Morgan of BCR Advisory were appointed as
administrators of UBIQ Pty on Dec. 21, 2018.
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C H I N A
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CHINA LESSO: Fitch Affirms Then Withdraws BB+ LT IDR
----------------------------------------------------
Fitch Ratings has affirmed plastic-pipe and fittings manufacturer
China Lesso Group Holdings Limited's Long-Term Issuer Default
Rating and senior unsecured rating at 'BB+'. The Outlook is
Stable. At the same time, Fitch has chosen to withdraw the
ratings on Lesso for commercial reasons.
KEY RATING DRIVERS
The ratings reflect Lesso's strong market position and stable
downstream demand in its core plastic pipes business, which has
led to strong cash flow generations and a low net leverage.
Lesso's ratings are constrained by its relatively lower level of
product and geographical diversification compared to higher rated
peers.
DERIVATION SUMMARY
Lesso is China's largest plastic-pipe producer. It has a much
lower FFO adjusted net leverage than Elementia, S.A.B. de C.V.
(BB+/Stable), a Mexico-based building-materials producer.
However, Elementia has a broader product offering and better
geographical diversification although both have a neutral-to-
negative FCF margin. Lesso has a much larger scale and more
geographical diversification than West China Cement Limited (BB-
/Stable), a regional cement producer in China. However, the two
companies have a similar net leverage position and Fitch expects
both to deleverage in the coming years.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer
- Gross profit margin to remain at 25%-27% from 2018 to 2021
- Capex of CNY2 billion from 2018 to 2021
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
LIQUIDITY
Adequate Liquidity: As of end-2017, the company had available
cash of CNY3.7 billion with unused banking facilities of CNY7.7
billion against short-term debt of CNY2.9 billion and negative
free cash flow of CNY2.9 billion. The majority of its debt is
unsecured.
HNA GROUP: In Talks to Sell Ingram Micro to Apollo Global
---------------------------------------------------------
Reuters reports that HNA Group Co is in talks to sell Ingram
Micro Inc to private equity firm Apollo Global Management Llc, a
source familiar with the matter said on Dec. 21, as the Chinese
conglomerate continues to scale back operations.
Reuters relates that HNA hopes to sell the U.S. electronics
distributor for $7.5 billion, including $1.5 billion in debt, the
source said, adding that it is currently in talks with Apollo
after rebuffing an earlier offer that it considered too low.
HNA has already pushed ahead with asset sales that have so far
included real estate and stakes in hotels groups, Reuters says.
The Wall Street journal first reported the news on Dec. 21,
Reuters notes.
Earlier this month, Reuters reported that China Development Bank
was leading a team to supervise HNA's asset disposals as the
heavily indebted conglomerate unwinds a $50 billion acquisition
spree and scales back to a point that will leave it holding only
core assets.
Bad debt managers China Cinda Asset Management Co advised HNA and
has been involved in talks with potential buyers for Ingram,
which HNA bought for $6 billion in 2016, Reuters reported in
November.
HNA Technology Co, which owns Ingram, said in September it had
$3.55 billion of outstanding debt from the purchase of the firm,
of which $350 million was due for payment this year.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 17, 2018, the Financial Times related that HNA Group
defaulted on a CNY300 million (US$44 million) loan raised through
Hunan Trust. According to the FT, the company is already under
strict supervision by a group of bank creditors, led by China
Development Bank, following a liquidity crunch in the final
quarter of last year. The default came despite an estimated $18
billion in asset sales by HNA this year that have done little to
address its ability to meet its domestic debts, the FT noted.
JIANGYIN CHENGXIN: Fitch Pulls B LT IDR due to Insufficient Info
----------------------------------------------------------------
Fitch has withdrawn Jiangyin Chengxing Industrial Group Co.,
Ltd.'s Long-Term Foreign-Currency Issuer Default Rating of 'B'
with a Stable Outlook and senior unsecured rating of 'B' with a
Recovery Rating of 'RR4'.
KEY RATING DRIVERS
Fitch is withdrawing the ratings without taking any rating action
as Jiangyin Chengxing has chosen to stop participating in the
rating process. Therefore, Fitch will no longer have sufficient
information to maintain the ratings. Accordingly, Fitch will no
longer provide ratings (or analytical coverage) for Jiangyin
Chengxing.
DERIVATION SUMMARY
Not applicable
KEY ASSUMPTIONS
Not applicable
RATING SENSITIVITIES
Rating sensitivities are not applicable as the ratings have been
withdrawn.
LIQUIDITY
Not applicable
MODERN LAND: Moody's Assigns B3 Rating to Proposed USD Notes
------------------------------------------------------------
Moody's Investors Service has assigned a B3 senior unsecured debt
rating to the proposed USD notes to be issued by Modern Land
(China) Co., Limited (B2 stable).
The company plans to use the proceeds to refinance its existing
indebtedness.
RATINGS RATIONALE
"The proposed bond issuance will improve Modern Land's liquidity
profile," says Celine Yang, a Moody's Assistant Vice President
and Analyst. "The issuance will also not materially affect its
credit metrics, because the company will use the proceeds to
refinance existing debt."
Modern Land's B2 corporate family rating (CFR) reflects the
company's (1) track record of marketing and selling its concept
of comfortable and eco-friendly homes; (2) ability to execute
consistent growth in contracted sales; and (3) adequate
liquidity.
At the same time, Modern Land's CFR is constrained by its (1)
contracting gross profit margin; and (2) weak credit metrics,
driven by debt-funded growth.
Moody's expects Modern Land's leverage - as measured by
revenue/adjusted debt - will modestly decline to around 50% - 51%
in next 12-18 months from 54% for the 12 months ended June 2018.
This is mainly driven by the likely incremental debt that will be
used to fund elderly home investments.
Moody's also expect that Modern Land's homebuilding EBIT/interest
coverage will remain volatile; it is likely to drop to 1.0x-1.2x
in 2018 from 1.5x for the 12 months ended June 2018, before
recovering to 1.5x by the end of 2019 because of the company's
uneven project delivery plan.
The stable rating outlook reflects Moody's expectation that
Modern Land will (1) maintain adequate liquidity and grow its
sales as planned; and (2) adjust its pace of expansion in
accordance with market conditions to avoid a material
deterioration in its credit profile.
Modern Land's B3 senior unsecured debt rating is one notch lower
than the CFR due to structural subordination risk.
This risk reflects the fact that the majority of claims are at
the operating subsidiaries. These claims have priority over
Modern Land's senior unsecured claims in a bankruptcy scenario.
In addition, the holding company lacks significant mitigating
factors for structural subordination. As a result, the expected
recovery rate for claims at the holding company will be lower.
Upward rating pressure could emerge if Modern Land establishes a
track record of (1) growing its scale and establishing its brand
in new locations outside its home market; (2) maintaining a
reasonable cash balance such that the cash/short-term debt stays
above or beyond 1.5x on a sustained basis; and (3) strong
financial discipline in its land acquisitions, with homebuilding
EBIT/interest coverage above 2.5x -- 3.0x and revenue/adjusted
debt above 70% - 75% on a sustained basis.
Downward rating pressure could emerge if (1) Modern Land's
liquidity and ability to generate operating cash flow prove to be
weaker than its expectations because of declining contracted
sales and aggressive land acquisitions; (2) the company's revenue
recognition is slower than expected or if its profit margins
decline, leading to the further drop of its interest coverage and
financial flexibility; or (3) the company engages in material
debt-funded acquisitions.
Metrics indicative for downward rating pressure include (1)
Modern Land's balance sheet cash, both restricted and
unrestricted, falling below 100% of short-term debt; or (2) the
company's homebuilding EBIT/interest coverage weakening below
1.5x on a sustained basis.
The principal methodology used in this rating was Homebuilding
And Property Development Industry published in January 2018.
Modern Land (China) Co., Limited was founded in 2000 in Beijing
by Mr Zhang Lei, now its chairman, who is a real estate developer
in China. The company specializes in developing green housing
units, and is one of the few early leaders in China's green and
eco-friendly lifestyle market.
The company listed on the Hong Kong Stock Exchange in July 2013.
As at June 30, 2018, the company had a total land bank of around
7.4 million square meters in gross floor area located in cities
such as Beijing, Hefei, Taiyuan, Wuhan, Changsha, Xiantao,
Quanzhou, Suzhou, Zhangjiakou, Jingzhou, Dongguan, Dongdaihe and
Foshan. The company will mainly focus on its expansion into tier
2 and lower-tier cities in the coming 1 -- 2 years.
RONSHINE CHINA: Fitch Rates US$200MM Sr. Notes Final 'B+'
---------------------------------------------------------
Fitch Ratings has assigned Ronshine China Holdings Limited's
(B+/Stable) USD200 million 11.5% senior notes due 2020 a final
rating of 'B+' with a Recovery Rating of 'RR4'.
The notes are rated at the same level as Ronshine's senior
unsecured rating because they are unconditionally and irrevocably
guaranteed by the company. The assignment of the final rating
follows the receipt of documents conforming to information
already received. The final rating is in line with the expected
rating assigned on December 18, 2018.
Ronshine's ratings reflect its high quality and diversified land
bank, which supported its fast contracted-sales expansion in 2017
and 1H18. The company is on track to reach its target total
contracted sales of CNY120 billion in 2018. Its ratings are
constrained by its sustained moderately high leverage of just
above 50%, as defined by net debt to adjusted inventory. Fitch
believes Ronshine will need to replenish its land bank
continuously at market prices to sustain its scale, limiting its
ability to deleverage to below 45%, the level that will trigger
positive rating action.
KEY RATING DRIVERS
Faster Scale Expansion: Ronshine's total contracted sales
increased by 104% yoy to CNY50 billion in 2017, and 76% to CNY55
billion in 1H18. Proactive land acquisitions in 2016 and 2017
have provided the company with ample saleable resources and it is
also on track to achieve its total contracted sales target of
CNY120 billion (equivalent to Fitch's estimated consolidated
contracted sales of CNY84 billion in 2018) with CNY180 billion in
total saleable resources. Ronshine's focus on the Yangtze River
Delta, with exposure to cities that are benefitting from
spillover demand from top-tier cities, was a key driver for the
company's strong sales growth, which is likely to continue in
2018.
High Quality, Diversified Land Bank: Ronshine's attributable land
bank increased slightly to 13 million sq m by June 30, 2018, from
12.66 million sq m as of end-2017. Its land-bank portfolio is
well-diversified, covering 38 cities in China and focusing on
tier 1 and 2 cities, which accounted for 57.5% of its land bank
by area. Fitch believes Ronshine's diversified land bank has
mitigated the impact from tighter home-purchase restriction
policies in many high-tier cities. The company entered new cities
in 2017, including Chengdu, Tianjin, Guangzhou, Chongqing, Ningbo
and Zhengzhou as well as lower-tiered Longyan, Putian, Jinhua,
Shaoxing and Quzhou. Ronshine also entered the Qingdao market in
2018.
Margin Recovery: Ronshine's EBITDA margin, after adding back
capitalised interest in cost of goods sold (COGS), recovered to
29% in 1H18, from 20% in 2017. The weak EBITDA in 2017 was due to
the revaluation of inventory to fair value as the company made a
few acquisitions in 2017. Fitch expects the effect to diminish as
the company's scale expands. Ronshine's average land-bank cost
was CNY6,463 per sq m, which accounted for 30% of its contracted
average selling price in 1H18. Ronshine's land cost appears
reasonable in light of its high-quality land bank, which should
sustain its EBITDA margin at around 25%-30%.
Leverage Lowered; Still Constrains Ratings: Ronshine's leverage,
measured by net debt/adjusted inventory including guaranteed debt
for its joint ventures (JVs) and associates, fell to 53.4% by
June 30, 2018, from 56.6% at end-2017. Management expects to
deleverage further as the company's budget for land acquisition
will be lowered to about 30% of contracted sales proceeds in
2018, from about 70% in 2017, and it plans to keep the proportion
at 30%-50% in 2018-2020 to maintain its contracted sales scale.
However, Ronshine's leverage is likely to stay at about 50%,
which is high among 'B+' rated peers.
DERIVATION SUMMARY
Ronshine's consolidated contracted sales scale of about CNY80
billion per year and diversified land bank in China are
equivalent to other 'BB-' rated homebuilders, such as Yuzhou
Properties Company Limited (BB-/Stable). However, Ronshine's
leverage of 50%-55% is much higher than that of 'BB-' rated
peers, which usually have leverage of below 45%.
Ronshine is well-positioned on scale and land-bank quality
relative to Guangdong Helenbergh Real Estate Group Co., Ltd.
(Helenbergh, B+/Stable), but its leverage of 56.6% at end-2017
and 53.4% at end-June 2018 were higher than Helenbergh's 43% at
end-2017. The company has similar scale as 'B' category peers,
such as Yango Group Co., Ltd. (B/Positive) and Zhenro Properties
Group Limited (B/Positive), although Ronshine's leverage is
lower. Ronshine's normalised EBITDA margin (adding back
capitalised interest in COGS) of about 20%-25% is comparable with
that of Zhenro and Yango.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer
- Total contracted sales of CNY122 billion in 2018 and
CNY157 billion in 2019 (1H18: CNY55 billion)
- EBITDA margin, after adding back capitalised interest in
COGS, of 25%-30% in 2018-2020 (1H18: 29%)
- Land acquisitions to account for 30% and 55% of contracted
sales proceeds in 2018 and 2019, respectively
Recovery Rating assumptions:
- Ronshine would be liquidated in a bankruptcy because it is
an asset-trading company.
- 10% administrative claims.
- The value of inventory and other assets can be realised in a
reorganisation and distributed to creditors.
- A haircut of 25% on net inventory at fair value, as
Ronshine's EBITDA margin is higher than the industry average.
This implies its inventory will have a higher liquidation
value than that of peers.
- A 30% haircut on receivables, 40% haircut on investment
properties and 50% haircut on properties, plant and
equipment.
- Ronshine's large cash balance is adjusted so that cash in
excess of its three-month contracted sales is invested in new
inventories.
- Based on its calculation of the adjusted liquidation value
after administrative claims, Fitch estimates the recovery
rate of the offshore senior unsecured debt to be 59%. Fitch
has rated the senior unsecured debt at 'B+'/RR4. Under its
Country-Specific Treatment of Recovery Ratings Criteria,
China falls into Group D of creditor friendliness and
instrument ratings of issuers with assets in this group are
subject to a soft cap at the issuer's IDR.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Leverage, measured by net debt/adjusted inventory including
guaranteed debt for its JVs/associates, sustained below
45% (1H18: 53%)
- EBITDA margin, after adding back capitalised interest in
COGS, sustained at 25% or above (1H18: 29%)
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Leverage, measured by net debt/adjusted inventory including
guaranteed debt for its JVs/associates, sustained at above
55%
- EBITDA margin, after adding back capitalised interest in
COGS, sustained below 20%
LIQUIDITY
Sufficient Liquidity: Ronshine had cash balances of CNY20.3
billion at end-June 2018. It issued a total of USD375 million
8.25% senior unsecured notes due 2021 in July and August 2018.
The company should have sufficient liquidity to refinance its
short-term debt of CNY21.1 billion.
SHRIRAM TRANSPORT: Fitch Affirms BB+ LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed India-based Shriram Transport Finance
Company Limited's Long-Term Issuer Default Rating (IDR) at 'BB+'.
The Outlook is Stable.
Key Rating Drivers
IDRS
STFC's IDR is driven by its standalone creditworthiness, which
reflects its dominant position in the niche market of used
commercial-vehicle financing, its good management quality, and
its established track record. The rating also factors in STFC's
well-managed credit losses, improving earnings and satisfactory
capitalisation. STFC has a mono-line business model and reliance
on wholesale funding - a feature common across Indian non-bank
financial institutions (NBFIs) - but these risks are partly
offset by the company's strong business understanding and sound
liquidity position.
STFC has four decades of experience in used commercial-vehicle
(CV) financing, which gives it strong understanding of the
business and customer dynamics. Its competitive strength is its
customer base, which banks avoid lending to because of the
clients' lack of credit history.
The company mitigates risks related to its customers through
clear underwriting guidelines and tightly managed credit losses
despite early delinquencies, which is not unusual for this
business. The company's presence at key transport hubs across
India helps it to closely track customers, who are primarily
first-time CV buyers or small road-transport operators. The
guidelines for loan approvals for new and existing customers are
clearly laid out while any deviations from the guidelines have to
be pre-approved by senior executives. STFC's managers have, on
average, spent many years with the company, giving them a good
understanding of the business.
STFC's credit losses are below 2.5% of loans even though the
reported non-performing loan (NPL) ratio rose to slightly above
9% at the end of the financial year to March 2018 (FYE18). The
rise in the NPL ratio was mainly because the company moved to
recognise a loan as non-performing once it is more than 90 days
overdue, compared with 120 days previously. The transition was
completed in March 2018. The gross NPL ratio has moderated since,
although credit losses and sufficiency of reserves continue to
act as the primary drivers of STFC's asset quality. STFC moved to
Ind-AS (Indian equivalent of IFRS) from April 2018 and it is now
required to allocate loss provisions on the basis of expected
credit losses instead of incurred losses. Provision for stage 3
assets (assets overdue by more than 90 days) was equivalent to
its loss given default of 34% at end-September 2018, although it
increases to 63% if provisions for stage 1 and 2 assets (assets
overdue by up to 30 days and 31-90 days, respectively) are also
included. The ratio was 71% under the incurred loss method.
Profitability, measured by return on assets, improved to 2.4% in
1HFY19 from 2% in FY18 after several years of decline. The sharp
decline in credit costs to 2.5% of loans in 1HFY19 (FY18: 3.8%),
higher loan growth and stable operating costs more than offset
the decline in net interest margin (NIM) due to a surge in
funding cost following a liquidity squeeze in September 2018.
Fitch expects NIM to remain under pressure, but STFC's overall
earnings should improve in the near term as credit cost is likely
to decline further. STFC enjoys significant income buffer as pre-
provision operating profit/average loans was robust at 6.3%.
STFC's Fitch Core Capitalisation (FCC) is viewed as satisfactory
at current levels, although it only offers headroom for moderate
amounts of stress given its riskier customer profile. Fitch
believes the likelihood of fresh capital injection in 2019 is
high because internal accruals, although increasing, will not be
enough to finance the company's planned expansion. STFC's debt to
FCC of 4.9 x has some headroom while net NPL/FCC of 15.7% is
viewed as manageable.
STFC is wholesale funded, but has a diversified funding profile
and a reasonably well-managed asset-liability profile. However,
liquidity covers only two months of maturing liabilities and
Fitch views it as a bit tight, although it is partly mitigated by
the strong collections and recoveries that cover liabilities
coming due in next six months. STFC enjoys good access to the
local debt capital market, which is evident from its active bond
issuances, strong presence in securitisation and high local
credit ratings.
SENIOR SECURED DEBT
STFC's rupee-denominated bonds are rated at the same level as its
Long-Term Local-Currency IDR of 'BB+' in accordance with Fitch's
rating criteria.
The rupee-denominated bonds have been issued in the international
market. The coupon payments and principal on maturity are settled
in US dollars at the prevailing rupee-dollar exchange rate.
Therefore, settlement is subject to transfer and convertibility
risk on exchange operations involving the Indian rupee, which
means that the rating on the notes can be no higher than India's
Country Ceiling of 'BBB-'.
The linkage of payments under the terms of the notes to the
prevailing exchange rate means Fitch does not regard the
trustee's role in facilitating the conversion of rupees into
dollars at the transaction's initiation and maturity as altering
the underlying local-currency nature of the notes. The bonds,
which have a fixed-rate coupon payable annually, aresecured by a
fixed charge over specified standard accounts receivable in line
with STFC's domestically issued secured bonds. Fitch caps the
upward notching of ratings for secured debt over the Issuer
Default Rating, given country-specific constraints on recovery
expectations.
The rating on the medium-term note programme is equalised with
STFC's Long-Term Issuer Default Rating (IDR). The IDR reflects an
entity's relative vulnerability to default on its financial
obligations whose non-payment would 'best reflect the uncured
failure of that entity'. In STFC's case, senior secured debt is
considered to be the obligation whose non-payment would best
reflect uncured failure as most of its debt is secured. STFC can
issue unsecured debt in the overseas market, but such debt is
likely to constitute a small portion of its funding and thus
cannot be viewed as the primary financial obligation in this
case.
Rating Sensitivities
IDRS, SENIOR SECURED DEBT
A rating upgrade would require strengthened core capitalisation
and an overall stable performance on a sustained basis - this
appears unlikely in the near term. Any sharp increase in credit
loss could be negative for the rating, particularly as loan-loss
reserves have come down following the application of Ind-AS.
Sufficiency in core capitalisation is also important for
stability in the rating level given STFC's riskier business
profile.
ZHONGRONG XINDA: Fitch Affirms B- LT IDR, Outlook Negative
----------------------------------------------------------
Fitch Ratings has affirmed Zhongrong Xinda Group Co., Ltd.'s
(ZRXD) Long-Term Issuer Default Rating and senior unsecured
rating at 'B-'. The Outlook is Negative. All ratings have been
removed from Rating Watch Negative.
The ratings were placed on RWN on July 18, 2018 as a result of
company's constrained liquidity and uncertainty over its ability
to meet debt maturities of CNY10 billion over the next 12 months.
The Rating Watch has been removed as the company has been
repaying maturing debt and it issued CNY1.5 billion of onshore
bonds on December 4, 2018. The Negative Outlook reflects the
lingering uncertainties about whether the company can
consistently access the market to address its refinancing needs
in the next 12 months.
KEY RATING DRIVERS
Onshore Bond Issuance Completed: ZRXD said it issued CNY1.5
billion of onshore bonds on December 4, 2018, proceeds of which
will be used to refinance its debt. The bond has a three-year
maturity but carries a yearly call option, which means the
effective maturity date of the bond could be December 4, 2019.
The completion of the bond issuance shows the company is able to
regain access to the market, which resulted in the removal of the
Rating Watch. However, given the effective maturity of the bond
is in the next 12 months, the company will continue to rely on
short-term refinancing to address its debt maturities.
Improving Liquidity; Constraint Remains: ZRXD's liquidity has
improved since end-June 2018, when the company had CNY13.6
billion of short-term debt, CNY4.7 billion of available cash and
CNY4.3 billion of undrawn facilities. Since then, ZRXD repaid
CNY4.8 billion of bonds, using funds from operations as well as
additional long-term debt. Fitch expects ZRXD's end-December
liquidity position to improve, with short-term debt at CNY12.3
billion, available cash at CNY6.2 billion and undrawn facilities
of CNY4.5 billion (assuming undrawn facilities remain the same as
the end-November figure provided by the company).
Core Operation Stable: ZRXD's business remains intact. Total
revenue for 9M18 fell 6.2% yoy, mainly due to lower revenue from
the logistics segment, although this was partly offset by strong
performance of the coke processing business. Gross profit rose
6.1% yoy, with margin expanding 90bp, thanks to the rising
selling price of coke products. Fitch expects ZRXD's EBITDA
margin to reach 6.8% in 2018 and gradually fall to 6.5% in 2019
and 6.3% in 2020 compared with 6.1% in 2017. Fitch expects its
free cash flow to turn positive in 2018-2019 given lower capex
assumption of CNY1 billion each year as management does not
expect any significant expenditure in the near term (2017: CNY3
billion).
Weak Financial Profile: ZRXD's FFO adjusted net leverage surged
to 9.8x by the end of 2017 after the company's acquisition of a
10.5% stake in Hengfeng Bank Co. Ltd as well as elevated working
capital outflow and capex. Fitch expects ZRXD's net leverage to
remain high at around 9.5x in the next three years, assuming it
does not dispose of financial assets and long-term equity
investments. Its FFO fixed-charge coverage is likely to fall to
1.6x in 2018-2021, from 2.1x in 2017, as a result of higher
interest expense.
Possible Deleveraging on Asset Sales: ZRXD had financial assets
and long-term investments of CNY25.2 billion at end-September
2018. Management says it is already in discussions to sell about
CNY2 billion of financial investments in 2019. The company's
ability to liquidate in a timely manner could be constrained by
the market conditions. Fitch has not factored in these disposals
due to uncertainty over the timing.
Loan Dispute with DBS: ZRXD was sued in July 2018 by the DBS Bank
Shanghai Branch in a dispute over CNY290 million of bank loans.
An announcement on December 6 from ZRXD indicates that the
company has reached a settlement with DBS and the loan is not
considered in default. As a result, Fitch does not expect the
dispute to trigger the cross-default clause in ZRXD's USD500
million offshore bonds maturing in October 2020.
DERIVATION SUMMARY
ZRXD's ratings are supported by its strong market positions as
one of China's largest independent coke processors and Shandong's
largest logistics company. However, the ratings are constrained
by ZRXD's weak financial profile and tight liquidity. Compared to
'B' category rated peers, ZRXD's financial metrics in terms of
leverage and coverage appear similar to those of Honghua Group
Limited (B-/Stable) but are worse than those of Hilong Holding
Limited (B+/Stable) and Shandong Yuhuang Chemical Co., Ltd.
(B/Negative). However, ZRXD has a larger operational scale and
better free cash flow generation than these three peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer
- Sales of CNY71.3 billion-69.4 billion from 2018 to 2021
- EBITDA margin of 6.8%-6.1% from 2018 to 2021
- Capex of CNY1.0 billion per annum from 2018 to 2021
- Fitch has not factored in capex or contributions from
its Peru iron ore mine as management is exploring
options for a clear development plan
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to a
Stable Outlook
- Evidence of successful refinancing of maturing debt
obligations and continued improvements in liquidity
profile
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Evidence of worsening liquidity profile
- FFO fixed-charge sustained below 1.5x
LIQUIDITY
Reliance on Refinancing: At end-September 2018, ZRXD had CNY10.2
billion in short-term debt, including CNY3.2 billion in bonds
(including CNY1.0 billion puttable bonds). In comparison, the
company had CNY5.2 billion in readily available cash and CNY4.3
billion of unused credit facilities - these facilities are
uncommitted as committed facilities are uncommon in the Chinese
banking environment.
FULL LIST OF RATING ACTIONS
Zhongrong Xinda Group Co., Ltd.
- Long-Term IDR affirmed at 'B-'; Outlook Negative, off RWN
- Senior unsecured rating affirmed at 'B-' with a Recovery
Rating of 'RR4', off RWN
Zhongrong International Resources Co., Ltd.
- USD500 million 7.25% senior unsecured notes due 2020 affirmed
at 'B-' with a Recovery Rating of 'RR4', off RWN
=========
I N D I A
=========
ABHISHEK SOLAR: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Abhishek Solar
Industries 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 these ratings. The rating
will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR60 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating;
-- INR60 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR8.98 mil. Term loan due on March 2021 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 21, 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 1999, Abhishek Solar Industries Private Limited
manufactures a wide range of solar products such as solar
photovoltaic modules, solar lanterns, solar study lamp, solar
street lights and solar water pumps, among others with an annual
installed capacity of 30MW.
ABLAZE INFO: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Ablaze Info Solutions Private Limited
Shop No. 107, First Floor, Rishab
IPEX Mall, IP Extension
New Delhi 110092
Insolvency Commencement Date: November 30, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 28, 2019
(180 days from commencement)
Insolvency professional: Subramanian Dorairajan
Interim Resolution
Professional: Subramanian Dorairajan
13/103, East End Apartments
Mayur Vihar Phase I Extn.
Delhi 110096
E-mail: dsubramanian@hotmail.com
- and -
Flat No. 1109, New Delhi House
27 Barakhamba Road
New Delhi 110001
Last date for
submission of claims: December 18, 2018
ADEL LANDMARKS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Adel Landmarks Limited
Registered address:
B 292, Chandra Kanta Complex
Shop No. 8, Near Metro Pillar No. 161
New Ashok Nagar, Delhi
New Delhi 110096
Corporate office:
C56A/41, BHA Millenium Road
C-Block, Phase 2, Industrial Area
Sector 62, Noida
Uttarpradesh 201301
Project Sites:
Gardenia Estate
Vill-Noornagar, Lisari Road
Near Madhavpuram, Meerut
Aspen Garden
Vill-Kahudauli
Delhi-Haridwar Byepass
Meerut
Era Mall
246, Ajanta Cinema
Near Delhi Chungi, Delhi Road
Meerut
Divine Court Faridabad
Vill-Fazzupur Majra
Neemka, Sec-76
Greater Faridabad
Redwood Residency
Village Faridpur
Tigaon Road, Sec-78
Greater Faridabad
Divine Court Palwal
N.H.-2, Sector-5
Alhapur Village
Palwal 121102
Aster Court Jaipur
Shyam Nagar, Janpath Road
Near Dana Pani Restaurant
Meerut
Orchid Greens, Bahadurgarh
Sec-3B, Vill-Kasar
Tehsil Bahadurgarh Distt.
Jhajjar
Green World Palwal
Nuhu Road Sector-8
Palwal 121102
Laurel Garden-1
Opp. Electricity Board Office
Barnala Road
Sirsa 125055
Galleria
Opp. Electricity Board Office,
Barnala Road
Sirsa 125055
Laurel Garden-2
Opp. District Jail
Barnala Road
Sirsa 125055
City Centre
Opp. District Jail
Barnala Road
Sirsa 125055
The Arena
Survey No. 134/5
Kengri, Mysore Road
Bengaluru 560060
Cosmo City-1
Vill-Dhanwapur, Sec-103
Gurgaon
Cosmo City-3
Vill-Daultabad
Gurgaon Manesar Urban Complex
Sec-103, Gurgaon
Cosmo Court
Vill.- Nawada Fathepur
Tehsil-Manesar
Gurgaon
Insolvency Commencement Date: December 5, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 3, 2019
(180 days from commencement)
Insolvency professional: Udayraj Patwardhan
Interim Resolution
Professional: Udayraj Patwardhan
Sumedha Management Solutions Private
Limited
C-703, Marathon Innova
Off Ganapatrao Kadam Marg
Lower Parel (West), Mumbai City
Maharashtra, 400013
E-mail: udayraj_patwardhan@
sumedhamanagement.com
adell@sumedhamanagement.com
Classes of creditors: Class-I Allotees under Real Estate
Projects
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Inder Paul Singh Oberoi
MVkini Law Firm
6/39, Jungpura (B), New Delhi
National Capital Territory of Delhi
110014
E-mail: ipso24@gmail.com
Mr. Vichitra Narayan Pathak
120, Jharneshwar Colony
Madhuban Vihar, Near International
Public
School, Hoshangabad Road
Bhopal, Madhya Pradesh 462047
E-mail: drvnpathak@yahoo.co.in
Mr. Tajinder Pal Singh
House No. 34, Pocket D-10
Sector-8, Rohini
New Delhi
E-mail: iptpsingh@gmail.com
Last date for
submission of claims: December 20, 2018
ADVANCE INFRA: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Advance
Infrastructures 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 these ratings. The rating will
now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR115 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B (ISSUER NOT COOPERATING)
rating; and
-- INR115 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 on
September 22, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Advance Infrastructures was incorporated in 2006 by Mr. Surendra
Kumar Sharma in Gujarat. The company is engaged primarily in the
business of construction of cross-country pipelines, city gas
distribution network, plant piping, equipment erection, and
associated civil, structural, electrical, instrumentation and
telecommunication work, civil work related to sewerage,
pipelines, etc.
ANAND ELECTRICALS: CRISIL Lowers Rating on INR10cr Loan to D
------------------------------------------------------------
CRISIL has downgraded the ratings on the bank facilities of Anand
Electricals (AE) to 'CRISIL D/CRISIL D Issuer Not Cooperating'
from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' as loan
account of the firm is overdue for more than three installments
with instances of LC devolvement and due to which CC account is
also overutilized with Apna Sahakari Bank Limited.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL A4 ISSUER
NOT COOPERATING')
Cash Credit 2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Letter of Credit 2 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL A4 ISSUER
NOT COOPERATING')
Proposed Long Term 10 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with Anand Electricals
(AE) for obtaining information through letters and emails dated
April 20, 2018, May 11, 2018 and May 16, 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 AE, which restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on AE is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.
Based on the last available information, CRISIL has downgraded
the ratings on the bank facilities of AE to 'CRISIL D/CRISIL D
Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer
Not Cooperating' as loan account of the firm is overdue for more
than three installments with instances of LC devolvement and due
to which CC account is also overutilized with Apna Sahakari Bank
Limited.
Formed in 2005 as a proprietorship firm by Mr. Ramakrishna Vetal,
AE, an EPC contractor, undertakes projects to set up transmission
lines and towers for public and private entities.
ARVEE LABORATORIES: CRISIL Maintains B- Rating in Not Cooperating
-----------------------------------------------------------------
The ratings on bank facilities of Arvee Laboratories (India)
Private Limited (ALPL) continues to be 'CRISIL B-/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 4.44 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 4.06 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with ALPL for obtaining
information through letters and emails dated May 31, 2018 and
November 22, 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 ALPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ALPL 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, the ratings on bank
facilities of ALPL continues to be 'CRISIL B-/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.
ALPL, incorporated in 2012, is promoted by Mr. Shalin Bharat
Chokshi and Mr. Sudhakarbhai Chhotabhai Patel. The company
manufactures polymer modifiers, drug intermediaries, and contrast
media intermediaries used in the textile, pharmaceutical,
fertiliser, and other industries. Its facility is in Ahmedabad,
Gujarat.
BHAGIRATHA POLYMERS: CRISIL Assigns B+ Rating to INR5.0cr Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long
term bank facilities of Bhagiratha Polymers Private Limited
(BPPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.07 CRISIL B+/Stable (Assigned)
Bank Loan Facility
Cash Credit 5.00 CRISIL B+/Stable (Assigned)
Long Term Loan 2.93 CRISIL B+/Stable (Assigned)
The rating reflects BPPL's exposure to risks related to
implementation of the ongoing project and susceptibility to
volatile raw material prices. These weaknesses are partially
offset by the extensive experience of the promoters and
favourable market conditions.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to implementation of the ongoing
project: Operations commenced in October 2018 and the company is
still in the early stages of operations. However, BPPL has steady
orders from a group company for supply of high-density
polyethylene (HDPE) pipes.
* Susceptibility to volatile raw material prices: Since cost of
procuring the major raw material accounts for a bulk of the
production expense, even a slight variation in price can
drastically impact profitability.
Strengths
* Extensive experience of the promoters: Benefits from the
promoters' experience of two decades, their strong understanding
of local market dynamics, and healthy relations with customers
and suppliers should continue to support the business. Thus, BPPL
has orders worth above Rs 50 crore as on 29th November 2018, to
be executed over the next 12 months, assuring steady revenue flow
for the medium term.
* Favourable market conditions: The HDPE pipe market in India is
majorly driven by high demand in the domestic market since the
Government of India has introduced the Amrut Scheme in June 2015
to establish infrastructure that could ensure adequate robust
sewage networks and water supply. Further, The Andhra Pradesh
Government has launched Andhra Pradesh Drinking Supply
Corporation to supply 100 litres of protected drinking water to
every family.
Outlook: Stable
CRISIL believes BPPL will continue to benefit from the extensive
experience of the promoters. The outlook may be revised to
'Positive' if higher-than-expected productivity results in
substantial and sustainable increase in revenue and
profitability. Conversely, the outlook may be revised to
'Negative' if financial risk profile and liquidity weaken due to
lower-than-expected productivity.
BPPL, established in 2017 at Ongole (Andhra Pradesh),
manufactures and trades in HDPE pipes with the capacity of 500
kilogramme per hour. Mr Ramanjaneyulu Bommineni, Mr Ankamma
Chowdary Bommineni and Mr Ashok Chakravarthi Bommineni are the
promoters.
COMBINE DIAMOND: CARE Lowers Rating on INR48cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Combine Diamond Private Limited (CDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 48.00 CARE D Revised from CARE B+;
Facilities- Stable
PCFC/FDDBD
Proposed Long 7.00 CARE D Revised from CARE B+;
term bank Stable
facilities-
PCFC/FDDBD
Detailed Rationale & Key Rating Drivers
The revision in long-term rating to bank facilities of CDPL is on
account of liquidity profile mismatch resulting in delay in
servicing of its existing debt obligation.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in servicing of debt obligations: There have been ongoing
delays in servicing of its existing debt obligation.
Combine Diamonds Private Ltd. (CDPL) is promoted by Mr. Dinesh
Shantilal Desai. CDPL is engaged in trading and processing of cut
& polished diamonds whereby 80% of the income is derived through
trading activity. The company is an export oriented unit with 90%
of its revenue from overseas markets. The company was initially
established in 1998 as a proprietary concern and later converted
into closely held public limited company in the year 2000. Later
in 2016, the constitution changed to Private Limited.
DAYAL COMMERCIAL: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Dayal Commercial Co Private Limited
50B, Muktaram Babu Street
Kolkata
Insolvency Commencement Date: November 29, 2018
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 28, 2019
Insolvency professional: Shashi Agarwal
Interim Resolution
Professional: Shashi Agarwal
Subarna Apartment
(Opp: Udayan Club)
21N, Block-A, New Alipore
Kolkata 700053
E-mail: shashiagg@rediffmail.com
Last date for
submission of claims: December 13, 2018
DIGAMBER BUILDCON: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Digamber Buildcon Private Limited
Registered address:
B 292, Chandra Kanta Complex
Shop No. 8, Near Metro Pillar No. 161
New Ashok Nagar, Delhi
New Delhi 110096
Insolvency Commencement Date: November 27, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 26, 2019
(180 days from commencement)
Insolvency professional: Udayraj Patwardhan
Interim Resolution
Professional: Udayraj Patwardhan
Sumedha Management Solutions Private
Limited
C-703, Marathon Innova
Off Ganapatrao Kadam Marg
Lower Parel (West), Mumbai City
Maharashtra, 400013
E-mail: udayraj_patwardhan@
sumedhamanagement.com
dbpl@sumedhamanagement.com
Last date for
submission of claims: December 14, 2018
ERA T & D: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: ERA T & D Limited
1107, Indraprakash Building
21 Barakhamba Road
New Delhi 110001
Insolvency Commencement Date: December 3, 2018
Court: National Company Law Tribunal, Noida Bench
Estimated date of closure of
insolvency resolution process: May 31, 2019
(180 days from commencement)
Insolvency professional: Mr. Deepak Maini
Interim Resolution
Professional: Mr. Deepak Maini
C-100, Sector-2
Noida, Uttar Pradesh 201301
E-mail: deepak.maini@
insolvencyservices.in
eratd@ascgroup.in
Last date for
submission of claims: December 17, 2018
GOLDEN GLOW: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Golden Glow Estates Private Limited
Registered address:
B 292, Chandra Kanta Complex
Shop No. 8, Near Metro Pillar No. 161
New Ashok Nagar, Delhi
New Delhi 110096
Insolvency Commencement Date: November 27, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 26, 2019
(180 days from commencement)
Insolvency professional: Udayraj Patwardhan
Interim Resolution
Professional: Udayraj Patwardhan
Sumedha Management Solutions Private
Limited
C-703, Marathon Innova
Off Ganapatrao Kadam Marg
Lower Parel (West), Mumbai City
Maharashtra, 400013
E-mail: udayraj_patwardhan@
sumedhamanagement.com
ggepl@sumedhamanagement.com
Classes of creditors: Class-I Allotees under Real Estate
Projects
Insolvency
Professionals
Representative of
Creditors in a class: 1. Mr. Mohinder Kumar Gaind
21, 2nd floor, Shanti Vihar
Near Geetanjali Appts., Karkardooma
New Delhi
E-mail: mgaind6@gmail.com
2. Mr. Vichitra Narayan Pathak
120, Jharneshwar Colony
Madhuban Vihar, Near International
Public School, Hoshangabad Road
Bhopal, Madhya Pradesh 462047
E-mail: drvpathak@yahoo.co.in
3. Mr. Tajinder Pal Singh
House No. 34, Pocket D-10
Sector-8, Rohini
New Delhi
E-mail: iptpsingh@gmail.com
Last date for
submission of claims: December 14, 2018
GROWTHPATH SOLUTIONS: CARE Hikes Rating on INR6.0cr Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Growthpath Solutions Private Limited (GSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE B+; Stable Revised from
Facilities CARE B; Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating of GSPL takes into account growth in
total operating income (TOI) in FY18 (FY refers to the period
April 1 to March 31). Further, the rating continues to draw
comfort from experienced promoters. The rating, however,
continues to be constrained by low profitability margins,
leveraged capital structure, weak debt coverage indicators,
elongated operating cycle and weak liquidity position coupled
with risk associated with fragmented nature of industry
characterized by intense competition.
Going forward; ability of GSPL to profitably increase its scale
of operations while improving its capital structure shall remain
the key rating sensitivity.
Detailed description of the key rating drivers
Key Rating Strengths
Growth in total operating income (TOI) with improvement in PAT
margin: TOI of GSPL has increased from INR25.20 crore in FY17 to
INR33.27 crore in FY18 reflecting a growth rate of 32.03% mainly
on account of higher quantity sold to existing customers along
with addition of customer base. Further, during 7MFY19 (refers to
the period April 1 to October 31; based on provisional results);
the company has achieved the total operating income of ~Rs.25.00
crore.
Experienced promoters: GSPL's operations are currently being
managed by Mr. Atul Jain and Mrs. Poonam Jain. Mr. Atul Jain is
post graduate and has accumulated experience of more than two and
half decades in agro industry through his association with this
entity and other associates. He is ably supported by Mrs. Poonam
Jain who has almost one decade of experience in agro industry
through her association with this entity and other associates.
Key Rating Weaknesses
Low profitability margins, leveraged capital structure and weak
debt coverage indicators: The profitability margins of the
company remained low during the past three years (FY16-FY18)
owing to the trading nature of the business and intense market
competition given the highly fragmented nature of the industry.
Further, high interest burden on its bank borrowings also
restricts the net profitability of the company. PBILDT margin
stood at 2.86% in FY18 as against 3.30% in FY17 with a view to
garner increased market share, company did not increase its
prices in tandem with the increase in procurement cost of traded
goods and settled for little margin of profit. Thus, PAT margin
also stood low at 0.24% in FY18.
The capital structure of the company stood leveraged as on past
three balance sheet dates ending March 31, '16-'18 on account of
high dependence on external borrowings to meet the working
capital requirements of the business coupled with low net worth
base. Overall gearing stood at 3.54x as on March 31, 2018 as
against 2.75x as on March 31, 2017 on account of higher
utilization of working capital borrowings as on balance sheet
date.
Further, owing to high debt levels and low profitability
position, debt coverage indicators as marked by interest coverage
and total debt to GCA remained weak at 1.14x and 93.34x
respectively for FY18.
Elongated operating cycle and weak liquidity position: The
operating cycle of the company stood elongated at 100 days for
FY18. The company maintains adequate inventory for around a month
in form of traded goods to cater the immediate demand of its
customers. Further, being present in a highly competitive
business and having low bargaining power with its customers, the
company normally extends credit period of around 90 days to its
customers. GSPL procures the traded products from its suppliers
majorly on cash & advance basis with credit period of around 10-
15 days received from few suppliers. The company has working
capital intensive nature of operations as reflected from almost
full utilization of the sanctioned working capital limits for the
last 12-months period ended October, 2018. Though, the liquidity
indicators stood moderate as marked by current and quick ratio of
1.24x and 1.08x respectively as on March 31, 2018; however high
operating cycle and almost full utilization of working capital
borrowings indicates the weak liquidity position of the company.
The cash and bank balances stood at INR0.44 crore as on March 31,
2018.
Highly fragmented nature of industry characterized by intense
competition: The spectrum of the trading industry in which the
company operates is highly fragmented and competitive marked by
the presence of numerous players. Hence, the players in the
industry do not have any pricing power and are exposed to
competition induced pressure on profitability. Moreover, the
value addition is low on account of trading nature of business
operations which further impacts the profitability margins.
Delhi based GSPL was incorporated in May, 2010. The company is
currently managed by Mr. Atul Jain and Mrs. Poonam Jain. The
company is primarily engaged in the trading of food products like
wheat flour, suji, maida, poha, oil etc. Further, GSPL has an
authorized dealership of "Century Pulp and Paper" for trading of
paper & paper products. The company has an associate concern;
"Shree Atulya Agro Private Limited" (SAA); engaged in the
processing of agricultural products such as wheat flour, suji,
maida, poha.
H N CONSTRUCTION: Ind-Ra Migrates BB+ Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated H N Construction
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 these ratings. 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; and
-- INR250 mil. Non-fund-based limit migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 22, 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 September 2007, H N Construction executes turnkey
projects for steel plants engaged in civil, mechanical and
electrical works related to various equipment and structures,
mainly in Bokaro Steel City, Jharkhand.
JALA SHAKTI: CRISIL Hikes Rating on INR20.64cr LT Loan to B-
------------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities
of Jala Shakti Limited (JSL) to CRISIL B-/Stable from CRISIL D.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 20.64 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 5.86 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The upgrade reflects JSL's track record of servicing debt and
interest obligation on time.
The rating continues to reflect exposure to risks related to
hydrology. These rating weaknesses are partially offset by the
benefits JSL derives from the extensive entrepreneurial
experience of its promoter and limited exposure to demand and
price risk with assured offtake through long term power purchase
agreement (PPA).
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to hydrology: JSL is exposed to
substantial hydrology risk as its project is dependent on the
availability of water. Therefore, the occurrence of any event
beyond the company's control, such as significantly low water
flow because of drought or any natural disaster, can adversely
affect the firm's operations and cause liquidity pressures,
thereby weakening its financial risk profile.
Strengths
* Extensive entrepreneurial experience of the promoters: The key
promoters Mr. Y. Aditya and Mr. B. P. Ramanna, have a long-
standing entrepreneurial experience of over two decades in
trading as well as operating hydro power projects. The company
benefits from the technical expertise of the promoters.
* Limited exposure to demand and price risk with assured offtake
through long term PPA: JSL entered into 40 years PPA with
Himachal Pradesh State Electricity Board Limited (HPSEB), for the
entire capacity of 5.00 MW at a fixed tariff rate of Rs. 2.5 per
kWh. The PPA ensures a revenue visibility for the company over
the medium term. However timely receipt of payments to remain key
rating sensitivity factor.
Outlook: Stable
CRISIL believes JSL will maintain its credit risk profile over
the medium term, backed by long term PPA with HPSEB. The outlook
may be revised to 'Positive' if JSL achieves better than expected
plant load factor (PLF) with improved profitability leading to
higher than expected debt service coverage ratio. Conversely, the
outlook may be revised to 'Negative' if unprecedented delays in
realization of receivables from counterparty or a low PLF leads
to tightly matched liquidity or if any large debt-funded capital
expenditure weakens the company's liquidity.
Established in 1996, as a closely held public limited company,
JSL is a special purpose vehicle, which operates a 5 MW Dunali
hydro power project (DHPP) in Chamba, Himachal Pradesh. The DHPP
is a run-of-the river project on Baleni ka Nala, a tributary of
Ravi River and has a both snow fed and rainfed catchment. The
project commenced its commercial operations in May 2013. The
company is promoted by Mr. Auditya Yadlapati and Mr. B. P.
Ramanna.
J.S.R. CONSTRUCTIONS: CRISIL Cuts Rating on INR45CR Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of J.S.R.
Constructions Private Limited (JSR) to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'. The downgrade reflects delays by
JSR in servicing its term debt because of weak liquidity. The
liquidity has weakened due to stretch in the working capital
cycle arising from elongated receivable cycle.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 45 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Overdraft 1 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The ratings continue to reflect the JSR's modest scale of
operations in the civil construction industry and its weak
financial risk profile. These weaknesses are partially offset by
the extensive experience the promoters have in the industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations in the civil construction industry:
JSR generated a revenue of Rs. 73.37 cr for fiscal 17 as against
Rs. 21.69 cr in fiscal 16 thus reflecting modest scale amid
intense competition. The recovery in revenues is on account of
extensive experience of the promoters in the industry and due to
established relations with clients resulting in repeat and steady
order book.
* Weak financial risk profile: JSR's financial risk profile is
expected to be average marked by an average capital structure and
debt protection metrics. The net worth is at around Rs. 50 cr as
on March 31, 2017. The accretion to reserves was modest on
account of operating profitability at around 21 per cent and
which is expected to be at around 15 per cent over the medium
term. Hence the net worth is expected to remain small over the
medium term. The financial risk profile is weakened due to the
stretched caused in the liquidity.
Strengths
* Promoter's extensive experience in the civil construction
industry: The extensive experience of the promoters in the civil
construction industry, and established relationships with
customers and suppliers, will continue to support the business
risk profile. This has helped the company to recover its scale
and improve its operating margins in fiscal 17.
Established in 1972 as a proprietary concern by Mr. J.
Srinivasulu Reddy, it was rechristened in 1990 as JSR. Located in
Bangalore, Karnataka, JSR is engaged in construction of roads,
canals and other allied civil construction. JSR was concentrating
on irrigation works till 2001. Subsequently, JSR has been
focusing majorly focusing on road projects. The company is a
registered Special Class (Civil) contractor with Irrigation (PWD)
Department of Andhra Pradesh and Gujarat. It is also a registered
Class 1 Contractors in PWD ' Karnataka and Category-1 with
Karnataka Neeravari Nigam Ltd.
JSR MULBAGAL: CRISIL Lowers Rating on INR105cr Term Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of JSR Mulbagal Tollways Private Limited (JSR) to 'CRISIL D' from
'CRISIL B-/Stable'. The downgrade reflects delays by JSR
servicing its term debt because of weak liquidity. The liquidity
has weakened due to inadeqaute Debt service Coverage ratio (DSCR)
and absence of any Debt Service Reserve account (DSRA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 105 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The ratings continue to reflect CRISIL's belief that JSR's
revenues shall continue to remain susceptible to risks associated
with toll collections. The ratings also factor in a below-average
financial risk profile, marked by a heavily indebted capital
structure and weak liquidity. These rating weaknesses are
partially offset by favourable location of the tollway project.
Key Rating Drivers & Detailed Description
Weakness
* Susceptibility of revenues to risks associated with toll
collections: JSR's revenue generation is entirely dependent on
collection of toll, which, in turn, is based on traffic volumes,
which tend to be inherently volatile. Moreover, the 22.188 km
stretch operated by JSR forms part of a 100 km-plus stretch,
major parts of which are expected to be operational only after
about 30 months from now, making JSR's revenues even more
vulnerable during this phase. CRISIL expects that JSR's revenues
shall continue to remain susceptible to risks associated with
toll collections, which shall hinder the overall prospects of the
company.
* Below-average financial risk profile: JSR has a below-average
financial risk profile marked by low net worth, a highly
leveraged capital structure and poor interest coverage. On
account of successive losses in fiscals 2016 and 2017, the
company's net worth has receded to Rs.8.7 crores as at March 31,
2017. JSR's capital structure exhibits a high degree of gearing,
as is typically the case with special purpose vehicles, as
indicated by total outside liabilities to tangible net worth
(TOLTNW) ratio of 17.77 times as at March 31, 2017. The financial
risk profile has deteriorated due to inadequate DSCR leading to
weakening of its liquidity.
Strengths
* Favourable location and topography of tollway project: JSR has
been set up to augment National Highway No. 4 on the Mulbagal '
Andhra Pradesh/Karnataka section in Karnataka. A 100 km/h speed
limit have been planted by the side of the road, which is the
first time that such speeds are allowed in the city's vicinity.
Road speeds are designed based on the number of curves, among
other factors. The favourable location and topography of the
tollway are expected to benefit JSR in the medium term.
JSR is a special purpose company promoted by JSR Constructions
Private Limited for augmentation of National Highway No. 4 from
km 216.912 to km 239.100 (approx. 22.188 km) on the Mulbagal -
AP/KNT border section in Karnataka under NHDP Phase III, by four-
laning on design, build, finance, operate and transfer (DBFOT) on
toll basis. JSR Constructions Private Limited has 70%
shareholding in JSR with the remaining 30% being held by the
directors of the company.
K. SENTHIL: CRISIL Assigns B+ Rating to INR5.0cr Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long
term bank facilities of K. Senthil Kumar HUF (KSKH).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 1.5 CRISIL B+/Stable (Assigned)
Cash Credit 5.0 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Assigned)
The ratings reflect the firm's modest scale of operation and
average financial risk profile because of weak capital structure.
These weaknesses are partially offset by the extensive experience
of the proprietor in the poultry industry.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operation: Scale of operations is small as
reflected in revenue of Rs 23.4 crore in fiscal. The firm
currently has 3 lakh birds in its layer unit with a capacity to
lay around 2.5 lakh eggs per day. A firm is setting up a new
laying unit, which will house 1 lakh birds.
* Average financial risk profile: Financial risk profile is
constrained by modest networth of Rs 2.96 crore as on March 31,
2018 and average debt protection metrics with interest coverage
and net cash accrual to adjusted debt ratios of 2.05 times and
0.07 time, respectively, for fiscal 2018. Gearing, weak at 2.39
time as on March 31, 2018, is expected to deteriorate owing to a
debt funded capex in fiscal 2019.
Strengths
* Extensive experience of the proprietor: Benefits from the
proprietor's experience of over two decades and addition of new
customers has led to steady growth in revenues over the past few
years. His experience should continue to support the business.
Outlook: Stable
CRISIL believes KSKH will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' If revenue and profitability increase and working
capital management is prudent. The outlook may be revised to
'Negative' if low revenue and cash accrual, stretch in working
capital cycle, or any larger than expected, debt-funded capital
expenditure weakens financial risk profile.
Set up in 1996, Namakkal, Tamil Nadu-based KSK, a proprietorship
firm of Mr K Senthil Kumar, is engaged in manufacturing eggs from
layer chicken.
KRISHNA GODAVARI: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Krishna Godavari Power Utilities Limited
Registered office:
Plot No. 265N
Road No. 10, Jubilee Hills
Hyderabad 500033
Telangana
Plant Site:
Village Weadapally and Irikigudem
Distt. Nalgonda
Telangana
Insolvency Commencement Date: December 4, 2018
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: June 2, 2019
(180 days from commencement)
Insolvency professional: Sanjay Kumar Dewani
Interim Resolution
Professional: Sanjay Kumar Dewani
133, Bhagirathi Appts
Plot No. 13/1, Sector-9, Rohini
New Delhi 110085
E-mail: sanjaydewani@gmail.com
- and -
D-55, Defence Colony
New Delhi 110024
E-mail: cirp.kgpul@gmail.com
Last date for
submission of claims: December 18, 2018
MAHENDRAKUMAR BABULAL: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Mahendrakumar Babulal Jewels Private Limited
5, Onyx Building, Beside Reliance Fresh
H.L. Commerce College Road, Navrangpura
Ahmedabad 380009
Insolvency Commencement Date: December 3, 2018
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: June 1, 2019
Insolvency professional: Mr. Pinakin Surendra Shah
Interim Resolution
Professional: Mr. Pinakin Surendra Shah
A/201 Siddhi Vinayak Towers
B/h DCP Office, Next to Kataria House
Off S.G. Highway, Makaraba
Ahmedabad 380051, Gujarat
E-mail: pinakincs@yahoo.com
Last date for
submission of claims: December 18, 2018
MAK HOSPITALS: CRISIL Assigns B+ Rating to INR8cr Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of MAK Hospitals Private Limited (MAK).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 4 CRISIL B+/Stable (Assigned)
Term Loan 8 CRISIL B+/Stable (Assigned)
The rating reflects high geographical concentration in revenue
profile and exposure to intense industry competition. These
rating weaknesses are partially offset by the extensive
experience of promoters in the healthcare industry and
established market position.
Key Rating Drivers & Detailed Description
Weakness
* High geographical concentration in revenue and exposure to
intense competition: MAK's revenue is concentrated in the
Kozhikode (Kerala) region unlike other large healthcare chains
that have multiple hospitals in various locations, resulting in a
wider presence. The geographical concentration of MAK renders it
vulnerable to the dynamics of a single market and entry of any
big player in the region.
Strength
* Extensive experience of promoters in the healthcare industry
and established market position: MAK's promoter has around three
decades of experience in the health care industry. The hospital
has a range of departments which are handled by highly
specialized doctors.
Outlook: Stable
CRISIL believes MAK will continue to benefit over the medium term
from its established position and extensive experience of
promoter. The outlook may be revised to 'Positive' in case of
substantial and sustained improvement in revenue and
profitability, or if networth improves significantly due to
sizeable equity infusion. The outlook may be revised to
'Negative' if profitability declines sharply or capital structure
weakens significantly due to large, debt-funded capital
expenditure.
Incorporated in 2004 and promoted and managed by Dr. Shanu
Mullaveetil and his wife Dr. Jisha Shanu, MAK operates a hospital
in the Kozhikode.
MALLAIAH AND SONS: CARE Reaffirms B Rating on INR10.43cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Mallaiah and Sons Edible Oils Private Limited (MSEOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 10.43 CARE B; Stable Reaffirmed
Detailed Rationale& Key Rating Drivers
The rating assigned to the bank facilities of MSEOPL are
primarily tempered by small size of operations, leveraged capital
structure and debt coverage indicators, working capital intensive
nature of operations and regulated nature of industry along with
high level of competition with low entry barriers. However, the
rating derives comfort from vast experience of the directors,
growth in total operating income, improving profitability
margins.
Going forward, the company's ability to improve its scale of
operations, profitability margins, capital structure and debt
coverage indicators and efficiently utilize its working capital
requirements are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations: Despite the long track record of
operations, the scale of operations of the company are relatively
small with the company achieving a total operating income of
INR34.60 crore during FY18 though the TOI of the company grew
from INR32.83 crore in FY17. The increase in TOI is mainly due to
repeated orders from existing customers and addition of new
customers in Andhra Pradesh and Telangana. Further the net worth
of the company also remained low and stood at INR0.30 crore as on
March 31, 2018. However the net worth of the company marginally
increased from INR0.23 crore in FY17 to INR0.30 crore in FY18 on
account of accretion of profits to reserves.
Leveraged capital structure and weak debt coverage indicators
although improved during FY18: The capital structure marked by
debt to equity and overall gearing ratio of the company has
remained leveraged. The debt to equity and overall gearing ratio
of the company has improved from 50.73x and 57.64x respectively
as on March 31, 2017 to 30.60x and 50.67x respectively as on
March 31, 2018 due to marginal improvement in networth as on
March 31, 2018.
The debt coverage indicators of the company remained weak during
the review period. The total debt/GCA has improved from 93.10x in
FY17 to 65.58x in FY18 due to increase in cash accruals at the
back of increase in operating profit. Further the interest
coverage ratio of the company has also marginally improved from
1.10x in FY17 to 1.14x in FY18 at the back of increase in profit
in absolute terms. The TD/CFO of the company has improved from -
53.97x in FY17 to 11.62x in FY18 due to increase in PBILDT and
decrease in provision for VAT payable.
Elongated operating cycle days: The company purchases the refined
oils from manufacturers located in Andhra Pradesh, Kerala and
Tamil Nadu. Palm oil and Sunflower oil are purchased from
intermediaries who import them from foreign countries. The oil
sold has an expiry of 90 days and hence the inventory is stocked
between 40-45 days in the warehouse. The main customers being
retailers, the company extends credit up to 30-110 days on sales,
and on purchases avails credit up to 30 days. Due to elongated
collection period, the operating cycle also stood elongated at
118 days in FY18 as against 112 days in FY17. The utilization
levels of working capital facility stood at 90% for the 12 months
ended October 2018.
Regulated nature of industry along with high level of competition
with low entry barriers: The edible oil industry in India is
characterized by intense competition and fragmentation, with the
presence of a large number of units attributable to low entry
barriers such as low capital and low technical requirements of
the business and a liberal policy regime (SSI reservation for
traditional oilseeds and sales tax incentives by various state
governments). As a result of this, high competition and
fragmentation, profit margins in the edible oil business tend to
be thin.
Key Rating Strengths
Vast experience of the directors: The managing director, Mr.
Gopisetty Mallaiah has about four decades of experience in the
edible oil industry. Prior to establishing MSEOPL, Gopisetty
Mallaiah S/O VSR & Co. (GM) was established as a partnership
concern in 1950s and was engaged in direct trading of edible
oils. Mr. Gopisetty Mallaiah has been associated with GM since
1970s. Mr. GV Sanjeev Kumar has been associated with MSEOPL since
2000 and looks after the day-to-day operations of the company.
The vast experience of the key managerial personnel is expected
to benefit MSEOPL at large. Growth in total operating income
during FY18 (Prov.) The total operating income of the company has
increased from INR32.83 crore in FY17 to INR34.60 in FY18 mainly
due to repeated orders from existing customers and addition of
new customers in Andhra Pradesh and Telangana.
Improvement in profitability margins: The PBILDT margin of the
company has improved from 5.13% in FY17 to 6.13% in FY18 at the
back of increase in revenue from sale of edible oil which result
in absorption of overheads. Further the PAT margin of the company
has also improved from 0.04% in FY17 to 0.21% in FY18 due to
increase in operating profit resulting in absorption of financial
expenses and depreciation provisions.
Liquidity analysis: The current ratio of the firm stood at 1.81x
in FY18 due to relatively high current assets as compared to
current liabilities on account of high inventory and trade
receivables. The cash and cash equivalents balance stood at
INR0.21 crore and loans and advances to related parties and
others stood at INR0.80 crore as on March 31, 2018
Andhra Pradesh based, Mallaiah and Sons Edible Oils Private
Limited (MSEOPL) was incorporated on July 08, 1996 as a Private
Limited Company by Mr. Gopisetty Mallaiah and Mr. Garre
Venkateswara Rao in Vijayawada. Presently the company has four
directors namely, Mr. Gopisetty Mallaiah, Ms. Gopisetty Radha
Devi, Mr. GV Sanjeev Kumar and Mr. GVSNK Chaitanya. MSEOPL is
engaged in packing and trading of edible oils. The company
procures the oil in tankers, from the suppliers located in Andhra
Pradesh and Kerala and further repacks and markets them in the
name 'GM' to the retailers and wholesalers located in Andhra
Pradesh and Telangana. The products of MSEOPL include Palm oil,
Sunflower oil, Groundnut oil, Ricebran oil and Coconut oil. The
packaging facility is located at Gollapudi, Vijawada.
MAYA CONSTRUCTION: Ind-Ra Lowers Long Term Issuer Rating to BB-
---------------------------------------------------------------
India Ratings has downgraded Maya Construction Company Private
Limited's (MCPL) Long-Term Issuer Rating to 'IND BB-' from 'IND
BB (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR50.0 mil. Fund-based working capital limit Long-term
rating downgraded; Short-term rating affirmed with
IND BB-/Stable/IND A4+ rating; and
-- INR150.0 mil. Non-fund-based working capital limit affirmed
with IND A4+ rating.
KEY RATING DRIVERS
The downgrade reflects MCPL's lower revenue growth than Ind-Ra's
expectations for FY17-FY18 owing to a lower number of work orders
from clients. Its revenue rose to INR242.0 million in FY18 from
INR99.5 million in FY17, but was lower compared with INR286.4
million in FY16. Its scale of operations remained small. It
booked INR116.6 million in revenue for 8MFY19. Its revenue is
likely to increase in view of an unexecuted order book of
INR213.7 million (0.7x of FY18 revenue) as on November 30, 2018.
The order book poses a high concentration risk high, considering
a single project represents 77% of the book.
The ratings continue to reflect MCPL's modest credit metrics,
albeit improved on a year-on-year basis. In FY18, its interest
coverage (operating EBITDA/gross interest expenses) was 2.0x
(FY17: 1.4x; FY16: 2.0x) and net leverage (net debt/operating
EBITDA) was 3.8x (5.5x; 3.2x). The improvement in the metrics was
primarily driven by an increase in absolute EBITDA to INR24
million in FY18 from INR17.2 million in FY17.
The ratings also continue to reflect MCPL's volatile, albeit
modest, EBITDA margin, which was 6.7%-17.3% during FY15-FY18, due
to fluctuations in raw material prices and variations in
operating expenses, which depend on the size of each project.
Moreover, its return on capital employed was 11% in FY18 (FY17:
15%).
The ratings further reflect MCPL's modest liquidity, indicated by
an average maximum cash credit limit utilization of 91.6% for the
12 months ended November 2018. In FY18, its cash flow from
operations turned positive at INR4.4 million in FY18 (FY17:
negative INR22.5 million; FY16: negative INR4.4 million). Its
cash and equivalent was INR0.2 million (FY17: INR1.1 million;
FY16: INR0.6 million).
The ratings, however, continue to be supported by the promoters'
experience of over two decades in engineering, procurement and
construction.
RATING SENSITIVITIES
Negative: Any stress on the profitability and deterioration in
the credit metrics, on a sustained basis, could lead to a
negative rating action.
Positive: Substantial revenue growth and an improvement in the
profitability, leading to an improvement in the credit metrics,
on a sustained basis, could lead to a positive rating action.
COMPANY PROFILE
MCPL is a class-AA civil contractor incorporated in 2004. It is
engaged in civil construction (canal works, embankment, lining
works and structures). Almost all of its revenue is generated
from government projects.
METAL CARE: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Metal Care
Alloys 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:
-- INR100 mil. Fund-based facilities migrated to Non-Cooperating
Category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR100 mil. Proposed fund-based facilities migrated to Non-
Cooperating Category with Provisional IND BB+ (ISSUER NOT
COOPERATING)/Provisional IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR100 mil. Proposed non-fund-based facilities migrated to
Non-Cooperating Category with Provisional IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 20, 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 2015, Metal Care Alloys manufactures bronze
ingot, copper ingot and brass ingot at its plant in Palghar
(Maharashtra).
MICRO INTERNATIONAL: CARE Reaffirms B+ Rating on INR8.28cr Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Micro International (MIN), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 8.28 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of MIN continues to
be constrained by its small scale of operations, low PAT margin,
and working capital intensive nature of business operations. The
ratings are further constrained by leveraged capital structure;
exposure to raw material price volatility, firm's presence in a
highly competitive nature of industry and constitution of the
entity being a partnership firm. The ratings, however, derive
strength from experienced partners, moderate debt coverage
indicators, and strategic location of manufacturing unit.
Going forward, the ability of MIN to increase its scale of
operations while improving its PAT margin and overall solvency
position would remain its key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations along with low PAT margin: The total
operating income of MIN stood stable during last two financial
years owing to absence of incremental demand from customers. The
small scale of operations limits the firm's financial flexibility
in times of stress and deprives it from scale benefits. The
PBILDT margin improved from 15.78% in FY17 (refers to the period
April 1 to March 31) to 17.62% in FY18 mainly on account of
improved sales realization. Consequently and also due to decline
in depreciation costs, PAT margin stood at 0.58% in FY18 as
compared to net loss of INR0.27 crore in FY17. The gross cash
accruals of the firm also improved from INR1.23 crore in FY17 to
INR1.29 crore in FY18.
Working capital intensive nature of operations: The operating
cycle of the firm stood elongated at 106 days for FY18 (46 days
for FY17). The firm is required to maintain inventory in the form
of raw material for smooth production process as well as in the
form of finished goods to meet demand of customers resulting in
average inventory period of 91 days for FY18 (62 days for FY17).
The firm offers a credit period of one month to its customers
owing to its presence in competitive industry which resulted in
average collection period of 25 days for FY18. Further, it
receives a credit period of around 15-20 days from its suppliers.
Leveraged capital structure: The capital structure of the firm
stood leveraged with overall gearing ratio of 2.19x as on March
31, 2018 on account of firm's high reliance on bank borrowings
for various business requirements. The same deteriorated from
1.45x as on March 31, 2017 mainly on account of decline in net
worth base of the firm on account of withdrawal of funds by
partners amounting to INR1.80 crore.
Exposure to raw material price volatility: The main raw materials
required for production are polyester yarn, chemicals and dyeing
colors. Polyester is a raw material required for manufacturing of
polyester yarn. It is a derivative of crude oil, and hence its
prices are directly correlated to the variations in global crude
oil prices which are inherently highly volatile. Therefore, the
firm is exposed to any fluctuation in the prices of polyester
yarn.
Highly competitive nature of industry: The firm operates in the
textile manufacturing and processing industry which is highly
competitive industry with presence of numerous independent small-
scale enterprises owing to low entry barriers leading to high
level of competition in the processing segment. Furthermore, the
Indian textile industry also faces competition from the low cost
countries like China and Bangladesh. The intense competition in
the textile processing industry also restricts ability to
completely pass on volatility in input cost to its customers,
leading to lower profit margins.
Partnership nature of constitution: MIN's constitution as a
partnership firm has the inherent risk of possibility of
withdrawal of the partners' capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of partners.
Key Rating Strengths
Experienced partners: MIN's operations are currently managed by
Mr. Vinay Singla, Mr. Ankur Singla, Mr. Mohan Lal and Mrs Meera
Rani having an industry experience of 20 years, 7 years, 35 years
and 10 years respectively through their association with MIN and
other group concerns. The partners have adequate acumen about
various aspects of business which is likely to benefit MIN in the
long run. Furthermore, the partners are supported by experienced
team having varied experience in the field of technical,
marketing and finance aspects of business.
Moderate debt coverage indicators: The debt coverage indicators
stood moderate marked by interest coverage ratio of 2.47x in FY18
and total debt to GCA of 6.58x for FY18 (PY: 6.59x). Interest
coverage ratio deteriorated marginally from 2.53x in FY17 on
account of increase in interest expenses of firm due to higher
utilization of limits during the year. The liquidity position
stood moderate marked by current ratio of 1.82x and quick ratio
of 1.12x as on March 31, 2018.
Strategic location of manufacturing unit: MIN's manufacturing
facility is located in Karnal, Haryana which is in close
proximity to Panipat (Haryana) which is one of the largest
textile hubs in India for blankets, fabrics and floor coverings
and is a ready available market for these products. Panipat has
numerous clusters of textile manufacturing including home
furnishing cluster. MIN purchases the raw materials from the
suppliers located in Panipat. Furthermore, skilled laborers are
also available by virtue of it being situated in the textile
cluster.
Karnal-based (Haryana) Micro International (MIN) was established
in March, 2015 and started its commercial operations from May,
2016. The firm is currently managed by Mr. Vinay Singla, Mr.
Ankur Singla, Mr. Mohan Lal and Mrs Meera Rani sharing profits
and losses in the 40%, 20%, 20% and 20% respectively (Mr. Vinay
Singla, Mr. Ankur Singla, and Mrs Meera Rani were added as
partners vide deed dated May 09, 2018 while Mr. Anand Mittal, Mr.
Ankit Garg and Mr. Vinay Mittal retired as partners on the same
day). The firm is engaged in the manufacturing of mink blankets
with an installed capacity to manufacture 3000 tonne per annum as
on October 31, 2018.
MONNET POWER: Ind-Ra Maintains 'D' LT Rating in Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Monnet Power
Company Ltd.'s loans in 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 ratings. The ratings will continue to appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- Senior project bank loans (long-term) INR38.190 bil.
(including an external commercial borrowing of USD140 mil.)
maintained in Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR3.500 bil. Subordinated term loan (long-term) maintained
in Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating.
Note: The ratings were last reviewed on November 16, 2017. Ind-Ra
is unable to provide an update, as the agency does not have
adequate information to review the ratings.
COMPANY PROFILE
Monnet Ispat Energy Ltd, through Monnet Power Company, is
implementing a 1,050MW coal-based thermal power project in Angul,
Odisha. MPCL has a 25-year power purchase agreement with PTC
India Ltd for around 42% of generation. The company has another
25-year power purchase agreement with PTC India for around 21% of
the power generated, to be sold on a short/medium term basis at a
guaranteed tariff.
MURLI INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Murli Industries Limited
101, Jai Bhavani Society
Wardhaman Nagar, Nagpur 440008
Maharashtra, India
Insolvency Commencement Date: April 5, 2017
Court: National Company Law Tribunal, Mumbai Bench
Insolvency professional: Mr. Vijaykumar V Iyer
Interim Resolution
Professional: Mr. Vijaykumar V Iyer
Deloitte Touche Tohmastu India LLP
Indiabulls Finance Centre, Tower 27
3rd Floor, Senapati Bapat Marg
Elphinston Road (West)
Mumbai 400013
E-mail: viyer@deloitte.com
inmurliip@deloitte.com
Last date for
submission of claims: December 13, 2018
NAVAYUGA JAHNAVI: CARE Reaffirms D Rating on INR720cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Navayuga Jahnavi Toll Bridge Private Limited (NJTB), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 720.00 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation in rating assigned to bank facilities of NJTB
takes into account delays in interest servicing at the back of
delay in achievement of commercial operation date owing to delay
in handover of Right of Way (RoW).
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing owing to weak liquidity position and
cash flow mismatches: There are delays in interest servicing on
account of delay in achievement of commercial operation date. As
on March 31, 2018, the company had cash and bank balances of
INR1.25 crore (as against INR13.57 crore as on March 31, 2017).
Project implementation risk with further delay in project
progress: The project progress continues to remain behind
schedule on account of delay in handing over of Right of Way As
per the Lenders Engineers report for the month ended
Oct. 20178 the company has achieved cumulative financial progress
of 52.15% for project cost of INR762.08 crore against target of
100% for INRINR1450 crore. Target progress captures completion by
May 2020. The cumulative physical progress achieved by the EPC
contractor as on Oct. 31, 2018 is 44.38% as against scheduled
target of 100%.
Key Rating Strengths
Experienced promoter group: NJTB is promoted by Navayuga
Engineering Company Limited (NECL) which is the flagship
company of the Hyderabad based Navayuga group. NECL is into all
types of core infrastructure development with focus on foundation
technology. Having gained requisite experience over the years and
possessing the financial capabilities, the company has presence
in infrastructure development segment on Public Private
Partnership (PPP) basis.
Navayuga Jahnavi Toll bridge Pvt. Ltd. (NJTB) is a Special
Purpose Vehicle (SPV) floated by Navayuga Engineering Company
Ltd. (NECL) to develop a greenfield alignment connecting NH-31
(proposed bypass) near Bakhtiyarpur and NH-28 at Tajpur with a
bridge across river Ganges in the state of Bihar by four laning
on Design, Build, Finance, Operate and Transfer (DBFOT) Toll
Basis. The project has been awarded by Bihar State Road
Development Corporation Ltd. (BSRDCL). The project involves
construction of Four-Lane Greenfield bridge across river Ganges
(5.55 km long) and 45.393 km long approach road. Project
comprises construction of three major bridges (including main
bridge), one minor bridge, three grade separators, 16 underpasses
(vehicular/pedestrian/cattle) and two Rail over Bridge (ROB)
along-with construction of bus bays, toll plazas, truck lay byes
etc.
The initial project cost was INR1599.57 crore which was proposed
to be funded by way of equity of INR294.57 crore grant of
INR585.00 crore and debt of INR720.00 crore. The project is being
funded at a debt equity ratio of 0.95x (taking grant as equity).
With the grant forming substantial part of the project cost,
timely receipt of the same is critical for scheduled completion
of the project. Owing to delay in project completion, the total
project cost has been revised to INR1874.37 crore excl. forex
loss of 95.33 which has been funded by promoters, which is
proposed to be funded through the promoters' contribution
(INR374.37 crore), BSRDCL Grant (INR585.00 crore) and term loans
(INR915.00 crore). Financial closure for the additional funds has
not been achieved and the company is in process of tying up the
same in the existing project debt-equity ratio. The competent
authority has approved extension of time for completion of the
project up to July 31, 2019, duly shifting the Milestone II &
Milestone III, merged together for achievement up to July 31,
2019 owing to further delay on account of handing over of
complete Right of Way (RoW) by authority and collapsing of
stressed segment. The cumulative physical progress achieved by
the EPC contractor as on Oct. 31, 2018 is 44.38% as against
scheduled target of 100%.
NAVAYUGA QUAZIGUND: CARE Reaffirms D Rating on INR2030.35cr Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Navayuga Quazigund Expressway Private Limited (NQEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 2030.35 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation in rating assigned to bank facilities of NQEPL
takes into account delays in interest servicing at the back of
delay in project completion owing to delay in handover of Right
of Way (RoW), force majeure events etc.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing owing to weak liquidity position and
cash flow mismatches: There are delays in interest servicing on
account of delay in project completion owing to delay in handover
of Right of Way (RoW), force majeure events etc. As on March 31,
2018, the company had cash and bank balances of INR1.71 crore (as
against INR18.52 crore as on March 31, 2017).
Delay in project progress: The total physical progress achieved
till September 30, 2018 was 75.01% as against planned progress of
100% while the financial progress till September 30, 2018 is
98.73% against the planned financial progress of 100%. As per the
LIE report for September 30, 2018, there was slow progress of
work due to unavailability of land. The schedule completion date
as per revised program is May 31, 2019. IE has concurred EOT only
up to January 08, 2018, but seeing the progress and hindrances on
the project corridor the project Is not likely to be completed by
the revised target of May 31, 2019.
Key Rating Strengths
Strong experience of promoters: NQEPL is promoted by Navayuga
Engineering Company Ltd (NECL) and Krishnapatnam Port Company Ltd
(KPCL). NECL holds 26% stake in NQEPL directly and 48% through
its step down subsidiary Navayuga Road Projects Pvt. Ltd, while
KPCL holds balance 26% stake. NECL is the flagship company of the
Navayuga group. It is an infrastructure development company
providing integrated engineering, procurement and construction
(EPC) services for ports, irrigation, roads & bridges, and power
projects. NECL has prior experience in successfully executing
toll road projects and apart from NQEPL, it has promoted several
other special purpose vehicle (SPVs) for executing road and port
projects.
Navayuga Quazigund Express Highways Pvt. Ltd (NQEPL) is a special
purpose vehicle (SPV) promoted mainly by Navayuga Engineering
Company Ltd (NECL) along with its step down subsidiary; Navayuga
Roads Projects Pvt Ltd and Krishnapatnam Port Company Ltd (KPCL)
to undertake rehabilitation, strengthening and four laning of the
Quazigund - Banihal section of NH-1A from Km. 189.350 to Km.
204.700, including 2 tunnels (2 lane of 0.690 km & 8.450 km
length) in the state of Jammu & Kashmir on DBFOT (Annuity) Basis
(15.35km).The total physical progress achieved till end of July
2017was 69.11% as against planned progress of 100%.
PAROLE HOTELS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: M/s. Parole Hotels Private Limited
House No. 153/1 & 153/2
Zaor Vaddo Anjuna Bardez
Goa 403509
Insolvency Commencement Date: December 4, 2018
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: June 4, 2019
Insolvency professional: Mr. Vijay P. Lulla
Interim Resolution
Professional: Mr. Vijay P. Lulla
201, Satchitanand Bdlg., 12th Road
Opp. Ram Mandir, Khar (West)
Mumbai 400052
vijayplulla@rediffmail.com
- or -
501, Arcadia Building
5th floor, Nariman Point
Mumbai 400021
vijayplullairp@gmail.com
Last date for
submission of claims: December 21, 2018
PV KNIT: CARE Lowers Rating on INR5.60cr LT Loan to D
-----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
PV Knit Fashions (PVF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.60 CARE D Revised from
Facilities CARE BB-/Stable
Short-term Bank 3.15 CARE D Revised from
Facilities CARE A4
Detailed Rationale & Key Rating Drivers
The revision in rating assigned to the bank facilities of PVF
factors in ongoing delays in meeting of debt obligations.
Detailed description of the key rating drivers
Key Rating Weakness
Ongoing delays in meeting of debt obligations: PV Knit Fashions
has been facing liquidity issues due to which the firm is unable
to service the interest and principle obligation on term loan
facilities as well as occasional packing Credit overdues. There
are ongoing delays in serving the interest and installment in
term loan facility.
PV Knit Fashion (PKF) was established in January, 1989 as a
partnership firm by Mr. C. Kumarasamy, Mr. N. Ramasamy and Ms. C.
K. Meera. However in the year 2015 the partners Mr. C. Kumarasamy
& Ms. C. K. Meera retired and partnership continued by Mr. N.
Ramasamy as a Managing partner and incoming partner Ms. R.
Vallinayaki. PKF is engaged in manufacturing and exporting of
readymade garments and Knits for ladies, men's wear and kids
wear. Their products ranges from T. shirts, Polo shirts for men,
Sweat shirts, Night wears, and Knits for women and Men, Tracks,
Shorts, Skirts, Trouser etc. PKF derives its strength from their
in-house designing, knitting, dyeing, embroidering, printing,
cutting, sewing and finishing and by being acquainted with latest
manufacturing technology. PKF is engaged into order based
manufacturing and generates over 99% of its total income by
exporting their products to traders based in Sweden, France,
Belgium and Switzerland. Sweden and France contributes to about
80% of overall export revenue while rest contributes to around
20%. The firm has an installed capacity of 1.25 lakh pieces of
garments per annum.
PKF has a group concern, M/s P.M.V Dyeing Mills which is engaged
in dyeing and printing of cotton fabrics. PKF is supported by
their group concern which also provides them the required
visibility.
RAJ WATERSCAPE: CRISIL Reaffirms D Rating on INR25cr Loan
---------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of Raj
Waterscape Properties Private Limited (RWPPL) at CRISIL D.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL D (Reaffirmed)
The rating continues to reflect instances of delay in servicing
its debt. The delays have been on account of weak liquidity
driven by slow booking in its primary residential real estate
project - Buckingham Gardens in Chennai.
The ratings also reflects exposure to intense competition in the
residential real estate segment. However, the weakness is
partially offset by extensive entrepreneurial experience of
promoters.
Key Rating Drivers & Detailed Description
Weakness
* Exposure to intense competition in the residential real estate
segment: The real estate sector in India is cyclical and marked
by volatile prices and a highly fragmented market structure. The
risk is compounded by aggressive timelines for completion with
shortage of manpower (project engineers and skilled labor) in
this sector. Furthermore, the demand for real estate offerings is
impacted by local as well global economic concerns.
Strength
* Extensive entrepreneurial experience of promoters: RWPPL
benefits from the extensive entrepreneurial experience of its
promoters. RWPPL is part of the Raj group of companies for which
the primary business interest is export of human hair. The
promoters have been in the hair exports segment for over three
decades through two group entities, Raj Hair International Pvt
Ltd (the Raj group's flagship entity) and B&H Exports. The
promoters also have a large land bank which encouraged them to
venture into the residential real estate segment.
Set up in 2005, RWPPL is undertaking a residential villa project,
Buckingham Gardens, in Chennai. The day-to-day operations of the
company are managed by Mr. George B Cherian. The promoters'
primary business interest is in the export of human hair. They
also have a presence in the print and media industry through
other group entities.
RASHMI STEELS: CRISIL Lowers Rating on INR15cr Cash Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the bank loan facilities of
Rashmi Steels to 'CRISIL D/CRISIL D Issuer Not Cooperating' from
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' on account of
delays in servicing of debt obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
Letter of Credit 0.65 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL A4 ISSUER
NOT COOPERATING')
Rupee Term Loan 5.35 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with RS for obtaining
information through letters and emails dated May 31, 2018, and
November 22, 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 RS. 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 RS
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower.
Registered in 2001, RS is a proprietorship firm engaged in
trading of ferrous and nonferrous scrap and has recently
commenced aluminium extrusion. The firm is based out of Mumbai
with its warehousing facility located in Bhuleshwar, Mumbai and
has a factory located near Baroda, Gujarat for aluminium
extrusion. The firm is promoted by Mr. Babulal G Bohra.
RATIONAL BUILDCON: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Rational Buildcon Private Limited
Registered address:
B 292, Chandra Kanta Complex
Shop No. 8, Near Metro Pillar No. 161
New Ashok Nagar, Delhi
New Delhi 110096
Corporate office:
C56A/41, BHA Millenium Road
C-Block, Phase 2, Industrial Area
Sector 62, Noida
Uttar Pradesh 201301
Project Site:
SkyVille
Vill-Badshahpur, Sec-68
Gurgaon
Insolvency Commencement Date: December 5, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 3, 2019
(180 days from commencement)
Insolvency professional: Udayraj Patwardhan
Interim Resolution
Professional: Udayraj Patwardhan
Sumedha Management Solutions Private
Limited
C-703, Marathon Innova
Off Ganapatrao Kadam Marg
Lower Parel (West), Mumbai City
Maharashtra, 400013
E-mail: udayraj_patwardhan@
sumedhamanagement.com
rbpl@sumedhamanagement.com
Classes of creditors: Class-I Allotees under Real Estate
Projects
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Inder Paul Singh Oberoi
MVkini Law Firm
6/39, Jungpura (B), New Delhi
National Capital Territory of Delhi
110014
E-mail: ipso24@gmail.com
Mr. Vichitra Narayan Pathak
120, Jharneshwar Colony
Madhuban Vihar, Near International
Public
School, Hoshangabad Road
Bhopal, Madhya Pradesh 462047
E-mail: drvnpathak@yahoo.co.in
Mr. Tajinder Pal Singh
House No. 34, Pocket D-10
Sector-8, Rohini
New Delhi
E-mail: iptpsingh@gmail.com
Last date for
submission of claims: December 20, 2018
RGR KNIT: CRISIL Assigns B+ Rating to INR3.5cr Cash Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of RGR Knit Wear (RGR).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 1 CRISIL B+/Stable (Assigned)
Bank Guarantee 1.5 CRISIL A4 (Assigned)
Cash Credit 3.5 CRISIL B+/Stable (Assigned)
The ratings reflect the firm's modest scale of operations and
limited profitability in intensely competitive ready-made
garments (RMG) industry. These rating weakness are partially
offset by promoter's extensive industry experience and its
moderate debt protection metrics.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations and profitability: Firm's revenue is
modest at around Rs. 14.2 crores during fiscal 2018. Though the
firm's scale of operations is expected to improve over the medium
term, the same is expected to remain modest.
Further, the firm has limited operating profitability, as
reflected in operating profitability of less than 6 per cent
during fiscal 2018.
Strengths
* Extensive industry experience of promoters: The promoters of
RGR have over a decade of experience in the RMG industry and has
well-established relationships with suppliers and customers.
* Moderate debt protection metrics: Given limited debt level in
capital structure, RGR has reported moderate debt protection
metrics during fiscal 2018 with interest coverage ratio of more
than 3 times and Net Cash Accruals to Total Debt (NCATD) ratio of
0.18 times.
Outlook: Stable
CRISIL believes that RGR will continue to benefit from the
extensive experience of promoters in the RMG industry. The
outlook may be revised to 'Positive' in case of improvement in
the scale of operations and profitability leading to better cash
accruals. The outlook may be revised to 'Negative' in case of
lower-than-anticipated cash accrual, large debt-funded capex, or
a stretch in working capital cycle, leads to deterioration in the
financial risk profile, particularly liquidity.
Established in 2017, RGR is partnership entity, involved in
manufacturing of readymade garments majorly tops, leggings and t-
shirts.
ROCKLAND CERAMIC: CARE Reaffirms D Rating on INR14.81cr LT Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Rockland Ceramic LLP (RCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 14.81 CARE D Reaffirmed
Short-term Bank
Facilities 1.52 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of RCL is primary
remained constrained on account of ongoing delays in debt
services.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in Debt servicing: There are ongoing delays in
bank facilities of Rockland Ceramic LLP primarily due to stressed
liquidity position and nascent stage of operations.
Morbi(Gujarat)-based RCL, was established in January 2016 as a
partnership firm by total fifteen partners. Overall management of
RCL is looked after by four key partners named Mr. Divyesh
Laljibhai Gami, Mr. Nitin Nandlal Dalsaniya, Mr. Ashokbhai
Nanjibhai Dalsania and Mr. Manish Bhudarbhai Mordiya. The firm is
engaged in manufacturing of vitrified tiles. RCL is operating
from its sole manufacturing plant located in Morbi (Gujarat) with
installed capacity of 26 lakh square meter per annum of vitrified
tiles as on March 31, 2018. Roland Ceramic is a group entity of
RCL, which is engaged into manufacturing of wall tiles.
SAMBHAAV MEDIA: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed and withdrawn
Sambhaav Media Limited's (SAML) Long-Term Issuer Rating of 'IND
BB+'. The Outlook was Stable.
The instrument-wise rating actions are:
-- INR27 mil. Long-term loans# due on May 2019 affirmed &
withdrawn;
-- INR132.5 mil. Fund-based facilities* affirmed & withdrawn;
-- INR50 mil. Non-fund-based facilities@ affirmed & withdrawn;
and
-- INR220 mil. Proposed long-term loan^ affirmed & withdrawn.
# Affirmed at 'IND BB+'/Stable before being withdrawn
* Affirmed at 'IND BB+'/Stable/'IND A4+' before being withdrawn
^ Affirmed at 'Provisional IND BB+'/Stable before being withdrawn
@ Affirmed at 'IND A4+' before being withdrawn
KEY RATING DRIVERS
Revenue Growth: SAML's revenue increased to INR404 million in
FY18 from INR330 million in FY17, driven by additional revenue
from phased GPS installations at Gujarat State Road Transport
Corporation's buses and depots. However, the scale of operations
remained small. SAML booked INR171.53 million in revenue for
1HFY19.
Diversified Presence; Experienced Management: SAML has presence
in print, electronic and digital media, in addition to a
diversified customer base comprising companies from the public
and private sectors. The ratings are further supported by the
management's experience of over three decades in the media and
advertising industry.
Modest Credit Metrics: SAML's interest coverage (operating
EBITDA/gross interest expense) improved to 3.5x in FY18 from 3.2x
in FY17, with its net financial leverage (total adjusted net
debt/operating EBITDA) enhancing to 0.7x from 2.5x. The
improvement in the credit metrics was due to a rise in operating
EBITDA and lower debt utilization, which led to a fall in
interest expenses.
Modest EBITDA Margin: SAML's EBITDA margin fell to 21% in FY18
from 22.1% in FY17 due to an increase in other expenses (repairs
and maintenance, and brokerage and commission). Its return on
capital employed was 5% in FY18 (FY17: 6%).
Stiff Competition: The ratings are constrained by stiff
competition in the media and advertising industry.
Rating Withdrawal: Ind-Ra is no longer required to maintain the
ratings, as the agency has received a no objection certificate
from the lender. This is consistent with the Securities and
Exchange Board of India's circular dated 31 March 2017 for credit
rating agencies.
COMPANY PROFILE
Incorporated in 1990 by Mr. Bhupat Vadodaria, SAML is a publicly
listed company engaged in the business of printing and publishing
newspapers and magazines and providing outdoor advertising
services. SAML has a contract with Gujarat State Road Transport
Corporation for running Wise TV (an in-transit TV channel) and
installing vehicle tracking and passenger information systems in
GSRTC buses. Its registered office is in Ahmedabad, Gujarat.
SHRI BADRINARAIN: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Shri Badrinarain Alloys & Steel Limited
Registered office:
Tulsiberia Road Kulgachia
P.O - Mahisrekha
Howrah 711303, WB
Principal office:
6/2 Moira Street, 4th Floor
Kolkata 700017, WB
Insolvency Commencement Date: December 5, 2018
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 2, 2019
(180 days from commencement)
Insolvency professional: Subodh Kumar Agrawal
Interim Resolution
Professional: Subodh Kumar Agrawal
1, Ganesh Chandra Avenue
Room No. 301
Kolkata 700013
E-mail: subodhka@gmail.com
cirp.badrinarain@gmail.com
Last date for
submission of claims: December 19, 2018
S R BREWERIES: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: S R Breweries Private Limited
S-3/53, Phase-II, New Industrial Estate
Jagatpur, Cuttack
Odisha 754021
Insolvency Commencement Date: December 3, 2018
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: June 1, 2019
(180 days from commencement)
Insolvency professional: Niraj Agrawal
Interim Resolution
Professional: Niraj Agrawal
Registered address:
C/o M/s H.K. Agrawal & Co.
125, Netaji Subhas Road
5th Floor, Room No. 52
Kolkata 700001
West Bengal
E-mail: niraj@execonservices.com
Correspondence address:
Apex Insolvency Professionals LLP
Central Plaza, 41 B. B. Ganguly Street
5th Floor, Room No. 5A
Kolkata 700012
E-mail: srbpl.cirp@gmail.com
Last date for
submission of claims: December 18, 2018
SR CONSTRUCTION: CRISIL Migrates B+ Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of SR
Construction And Developers (SRCD) to 'CRISIL B+/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 2.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 7.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with SRCD for obtaining
information through letters and emails dated October 29, 2018,
November 16, 2018 and November 21, 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 SRCD. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SRCD is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of SRCD to 'CRISIL B+/Stable Issuer not cooperating'.
Formed in 2009 as a proprietorship firm, SRCD undertake real
estate projects in Odisha. Firm undertakes both residential and
commercial real estate projects state of Odisha.
SRIRAMAGIRI SPINNING: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Sriramagiri Spinning Mills Limited
Plot No. 410
Road N. 22, Jubilee Hills
Hyderabad 500033, Telangana
Insolvency Commencement Date: December 4, 2018
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: June 2, 2019
Insolvency professional: C Bala Mouli
Interim Resolution
Professional: C Bala Mouli
1-7-297/18A, 125 M.G. Road
Parsi Compound, Behind Godrej Show Room
Secunderabad, Telangana 500003
E-mail: cbmouli@gmail.com
irpssml@gmail.com
Last date for
submission of claims: December 18, 2018
VENUS MULTIPLEX: CARE Lowers Rating on INR15cr LT Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Venus Multiplex, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE B; Stable Issuer Not
Facilities Cooperating; Revised from
CARE BB-; Stable on the basis
of best available information
Detailed rationale and key rating drivers
The rating has been revised by taking into account non-
availability of information due to non-cooperation by Venus
Multiplex with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as
a key factor in its assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on March 23, 2018, the following were
the rating weaknesses and strengths.
Key Rating Weakness
Revenue concentration risk though reputed clients base: VM has
reputed client base PVR Limited and Pantaloons (Aditya Birla
Fashion and Retail Limited). The revenue from these two customers
will account for around 60% of the total rentals income. However,
the risk is mitigated to an extent due to one tenant have long
term lease agreement of 20 years. However, timely realization of
rent from both the tenants and continuous renewal of the lease
agreement in the stipulated time period will remain a concerning
factor from the credit perspective.
Dependence on the retail consumption/spending and increasing
competition: Shopping malls are dependent on the retail
consumption pattern, which, in turn, is reliant on the macro-
economic scenario as any deterioration in the macro-economic
indicators will lead to reduced consumer spending. In such a
scenario, VM runs the risk of non-renewal or downward revision of
rent rates. Although VM is one of the major malls; however, other
shopping malls have opened in the area in the recent times
providing alternate shopping experience to retail consumer and,
thereby, increasing competition.
Key Rating Strengths
Experienced Partners in diversified industries: VM is a
partnership firm having seven partners the partners possess
diverse experience in industry like trading of textile,
coal and real estate. The partners experience in the various
industries will help the firm's operations to be carried out in a
managed manner.
Revenue visibility and moderate occupancy ratio: The mall is
strategically located near Golghar, which is a one of prime
locations in Gorakhpur. Besides, the mall is also nearer to
commercial hub of Gorakhpur. This supporting infrastructure
generates significant visibility and accessibility to the mall.
This provides the revenue visibility in short to medium term.
Furthermore, the occupancy levels stood moderate as only 65% of
the total leasable area and the lease agreements have inbuilt
rent escalation clause where in the rent shall increase by 15%
after the end of every three years. This provides the revenue
visibility in short to medium term. Due to non-cooperation by the
client; CARE is unable to comment on operational performance.
Gorakhpur, Uttar Pradesh based Venus Mutiplex was established in
2014 and commenced operations in September, 2017. The firm is
being currently managed by Mr. Arun Kumar Chand and Mr. Rajesh
Kumar Singh. VM has developed a mall cum multiplex and is being
launched under the name "Venus Multiplex". Its business activity
encompasses leasing, operation and maintenance of the mall. The
multiplex has 7 floors and terrace extension for fun area with
total leasable area of 0.74 lakh Sq. Ft and facilities in the
mall includes three multiplexes, a food court and underground
parking space.
VISION ROOFINGS: CARE Lowers Rating on INR4.62cr LT Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vision Roofings (VR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.62 CARE B+; Stable Revised
Facilities from CARE BB-; Stable
Detailed Rationale& Key Rating Drivers
The revision in the ratings assigned to the bank facilities of VR
takes into account deteriorated capital structure and weak debt
coverage indicators, erosion of tangible net worth due to capital
withdrawal by partners. The ratings, however continues to be
tempered short track record, small scale of operations and
fluctuating profitability margins, highly fragmented industry
with intense competition from large number of players and
constitution of the entity as a partnership firm with inherent
risk of withdrawal of capital. The ratings also consider the
increase in the total operating income, decline in the
profitability margins and leverage capital structure and weak
debt coverage indicators.
The ratings, however, derive benefit from experience of the
partners for more than one decade in manufacturing of roofing
industry, increase in Total operating income during review period
and satisfactory operating cycle days Going forward, ability of
the firm to increase its scale of operations and improve its
profitability margins in competitive environment and improve its
capital structure and debt coverage indicators while managing its
working capital efficiently are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Short track record and small scale of operations and fluctuating
profitability margins: The firm has a short track record of
around four years; resulted in small scale of operations,
however, the total operating income (TOI) of the firm has
improved but stood small at INR27.21 crore in FY18. The net worth
has been eroded from INR2.10 crore as on March 31, 2017 to
INR0.89 crore as on March 31, 2018 due to withdrawal of capital
by the partners
during FY18.
VR has fluctuating profitability margins due volatile in the raw
material prices. The PBILDT margin of the firm has been
declined from 4.79% in FY17 to 4.49% in FY18 due to increase in
raw material cost in line with increase in total operating
income. Further, the PAT margins declined from 0.84% in FY17 to
0.43% in FY18 due to increase in finance cost on back of
increase in the working capital facilities to meet the day-to-day
operations.
Leveraged capital structure and weak debt coverage indicators
The capital structure of the firm has been deteriorated during
review period due to increase in the total debt level. The
overall gearing ratio of VR has been deteriorated from 1.89x as
on March 31, 2017 to 7.09x as on March 31, 2018 due to increase
in the working capital limits and erosion of tangible net worth
due to withdrawal of capital.
The total debt to GCA of the firm stood weak and deteriorated
from 7.83x in FY17 to 13.74x in FY18 and interest coverage ratio
also decreased from 2.25x in FY17 to 1.72x in FY18 due to
increase in finance cost on back on increase in total debt
levels. The total debt to CFO has been deteriorated from -4.99x
as on March 31, 2017 to 39.95x as on March 31, 2018 due to
changes in the working capital (i.e., increase in absolute
increase in sundry debtors.) and decline in PBILDT Profitability
margins are susceptible to fluctuation in raw material prices.
Profitability margins are susceptible to fluctuation in raw
material prices due to absence of price variation clause in the
contracts entered by the firm. However, the firm builds in
satisfactory margin for each project before bidding for tenders
which mitigates the risk of absence of price variation clause in
the contracts to an extent.
Constitution of the entity as a partnership firm with inherent
risk of withdrawal of capital VR, 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. Moreover,
partnership firm business has restricted avenues to raise capital
which could prove a hindrance to its growth. Further, there has
been withdrawal of INR1.68 crore during FY18. However, the
partners have infused the capital of INR0.30 crore during 7MFY19
(prov.).
Key Rating Strengths
Experience of the partners for more than one decade in
manufacturing of roofing industry: VR is promoted by Mr.
Vishwapratap Shetty (Partner) and Mr. Praveena Kumar (Partner).
Mr. Vishwapratap Shetty is a qualified graduate(B.E.) and both
partners have more than one decade of experience in manufacturing
of roofings. The operations of the firm are also supported by
experienced executive team. Through partner's long term
experience in this industry, they have established healthy
relationship with large number of clients.
Increase in total operating income during review period: The
total operating income of the firm increased by 26.68% in FY18 as
compared to FY17 and stood at INR27.21 crore due to increase in
orders from its customers and diversified the product base by
addition of three new colours in roofing sheets.
Satisfactory operating cycle days: The operating cycle of the
firm increased but stood satisfactory at 49 days in FY18 as
compared to 39 days in FY17 due to marginal increase in the
inventory levels and absolute increase in sundry debtors on back
of increase in total operating income. Further, the firm
maintains an average inventory 15-30 days. The firm makes the
payment to its suppliers within 10-15 days. However, the firm
receives the payment from its customers within 25-35 days. The
firm offered credit period
to its customers to develop relationships with them and to
generate higher sales with repeat orders. The average utilization
of working capital of the firm remained about 95% for the last 12
month ended October 31, 2018.
Liquidity Analysis: The firm has registered stretched liquidity
position with the current ratio of less than unity due to high
utilization of short term facilities. The firm has current
investment of INR0.09 crore in liquid assets with cash and cash
equivalents of INR0.40 crores as on March 31, 2018.
Karnataka based, Vision Roofings (VR) was established as a
partnership firm in the year 2014 and promoted by Mr.
Vishwapratap Shettyand Mr. Praveena Kumar. VR commenced its
business operations from July, 2014 with FY15 being first year of
business operations. The firm is engaged in manufacture of
roofing and cladding sheets, gutter, down spout pipes and
flashings. These products are widely utilized by clients across
various construction industries for building various factories,
sheds, commercial and residential sites. The firm procures its
raw material of PPGI coil (pre-painted galvanised iron) from
Maharashtra and Nagpur.
YSG CABS: Insolvency Resolution Process Case Summary
----------------------------------------------------
Debtor: YSG Cabs and Logistics Private Limited
Registered and Principal office:
Khasra No. 634/1, Block A
Village Rangpuri Extension
Near Telco Service Sta
New Delhi 110037
Insolvency Commencement Date: November 28, 2018
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 26, 2019
(180 days from commencement)
Insolvency professional: Ajay Goyal
Interim Resolution
Professional: Ajay Goyal
49, DDA Site No. 1 New Rajender Nagar
New Delhi 110060
E-mail: ajaygoyalca75@gmail.com
ajaygoyalip@gmail.com
Tel.: 9810079683, 011-28745872
Last date for
submission of claims: December 19, 2018
===============
M A L A Y S I A
===============
1MDB: MAS Bans Ex-Goldman Sachs Banker Over Role in 1MDB Scandal
----------------------------------------------------------------
The Strait Times reports that the Monetary Authority of Singapore
(MAS) slapped a lifetime ban on former Goldman Sachs banker Tim
Leissner on Dec. 19, after he admitted to criminal charges
brought against him by the United States Department of Justice
over his role in the 1Malaysia Development Berhad (1MDB) scandal.
According to the report, Mr. Leissner was earlier issued a 10-
year prohibition order from the MAS in March for making false
statements on behalf of his bank without its knowledge or
consent. He was also found to have issued an unauthorised
reference letter on behalf of Goldman Sachs (Asia) to a financial
institution based in Luxembourg, the report says.
The Strait Times relates that the lifetime ban, which also
extends the scope of the original prohibition order, will prevent
Mr. Leissner from performing any regulated activity under the
Securities and Futures Act and from managing any capital markets
services firm in Singapore, said the MAS.
He is also forbidden from acting as a director, or becoming a
substantial shareholder or a capital market services licensee
under the Act, the report notes.
The Strait Times says Mr. Leissner was charged in the US on
Nov. 1, and pleaded guilty to participating in a conspiracy to
obtain and retain business from 1MDB for Goldman Sachs by
promising to pay bribes and kickbacks to government officials in
Abu Dhabi and Malaysia.
He had also embezzled funds from 1MDB for himself and laundered
these bribes, kickbacks and funds through financial systems in
the US and elsewhere, says The Strait Times.
His guilty plea provided more evidence of his involvement in fund
flows related to 1MDB, which was previously not available to the
MAS when it issued the earlier prohibition order, it said in a
statement, the report relays.
"MAS was unable to interview Mr Leissner, as he was not in
Singapore and could not be compelled to travel to Singapore to
assist in investigations," the statement, as cited by The Strait
Times, said.
The Strait Times adds that the MAS said it will consider any new
evidence related to the 1MDB fund flows and take further
enforcement actions where appropriate.
The former investment banker had spent years courting Malaysian
businessman Low Taek Jho or Jho Low, the report says citing court
filings in the US. Leissner managed Goldman's relationship with
1MDB, leaving Goldman in 2016 when the scandal first came to
light.
Roger Ng, Mr. Leissner's former deputy who left the bank in 2014,
also faces criminal charges in the US. Ng is in Singapore and
intends to fight extradition to the US, The Strait Times
discloses citing the New York Times. Mr. Low remains at large,
the report notes.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a
government agency. The Company offers financial assistance,
analysis, and advice through investors, corporations, and
consultants to startups and growth companies. 1MDB focuses on
investments with strategic value and high multiplier effects on
the economy, particularly in energy, real estate, tourism, and
agribusiness.
As reported in the Troubled Company Reporter-Asia Pacific in June
2015, Reuters relayed that Singapore Police Force has frozen two
bank accounts to help with an investigation in to Malaysia's
troubled state-owned investment fund 1Malaysia Development Bhd
(1MDB), which is being probed by authorities in Malaysia for
financial mismanagement and graft. Reuters said the freezing of
the Singapore bank accounts follows a similar move in Malaysia
where a task force investigating 1MDB said earlier in July that
it had frozen half a dozen bank accounts following a media report
that nearly $700 million had been transferred to an account of
Malaysia's Prime Minister Najib Razak.
The Wall Street Journal reported in July 2015 that investigators
looking into 1MDB had traced close to US$700 million of deposits
moving through Falcon Bank in Singapore into personal bank
accounts in Malaysia belonging to Najib.
The TCR-AP, citing Bloomberg News, reported in November 2015,
that 1MDB agreed to sell its power assets to China General
Nuclear Power Corp. for MYR9.83 billion (US$2.3 billion) as the
state investment company moved one step closer to winding down
operations after its mounting debt raised investor concern.
Bloomberg, citing President Arul Kanda in October 2015, related
that the company faced cash-flow problems after a planned initial
public offering of Edra faced delays amid unfavorable market
conditions. The listing plan was later canceled as the company
opted for a sale of the assets, Bloomberg noted.
The TCR-AP, citing The Wall Street Journal, reported in April
2016, that the company defaulted on a $1.75 billion bond issue,
triggering cross defaults on two other Islamic notes totaling
MYR7.4 billion ($1.9 billion).
Asian Nikkei Review reported in June 2016 that Malaysia has
replaced the board of 1Malaysia Development Berhad with treasury
officials, paving the way for the dissolution of the troubled
state investment fund.
*********
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.
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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.
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