/raid1/www/Hosts/bankrupt/TCRAP_Public/190313.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, March 13, 2019, Vol. 22, No. 52
Headlines
A U S T R A L I A
AUSCO PAK: First Creditors' Meeting Set for March 20
EXPO DOCUMENT: Second Creditors' Meeting Set for March 20
HALIFAX INVESTMENT: Second Creditors' Meeting Set for March 20
LIGHT FACTORY: Second Creditors' Meeting Set for March 19
REGIONAL DRILLING: First Creditors' Meeting Set for March 21
C H I N A
MEITUAN DIANPING: 4Q Loss Net Loss Widens to CNY3.41 Billion
I N D I A
A C P INDUSTRIES: CRISIL Reaffirms B- Rating on INR33cr Loan
BESTOVO FOODS: CRISIL Moves B Ratings to Not Cooperating Category
CITY MOTORS: CRISIL Migrates B Ratings to Non-Cooperating Category
CLEARSKY SOLAR: Ind-Ra Keeps BB in INR129MM Debt in Non-Cooperating
HILLWOOD FURNITURE: CRISIL Migrates D Ratings to Not Cooperating
HOTEL SKY: CRISIL Withdraws 'B' Rating on INR8cr Term Loan
JET AIRWAYS: Denies Report of INR20.50BB Loan from PNB
KCS INFRATECH: CRISIL Assigns 'B' Ratings to INR13.5cr Loans
MANJUNATHA INDUSTRIES: CRISIL Assigns B Ratings to INR9.87cr Loans
MOSAVI ENTERPRISES: Ind-Ra Corrects Feb. 28 Rating Release
NAVANIDHI ELECTRONICS: CRISIL Moves D Ratings to Not Cooperating
NAVEEN RICE: CRISIL Withdraws 'B' Ratings on INR15cr Loan
S.L. GROUP: CRISIL Reaffirms 'B' Rating on INR19.5cr Term Loan
SEVENHILLS HEALTHCARE: CRISIL Retains D Ratings in Not Cooperating
SHREE SATYA: CRISIL Withdraws D Ratings on INR20cr Loans
SHRI SHANKAR: CRISIL Moves D on INR25cr Loan to Not Cooperating
SIVA ENGINEERING: CRISIL Migrates 'D' Ratings to Not Cooperating
SRI VIJAYA: CRISIL Maintains 'D' Ratings in Not Cooperating
TAURUS FOOD: CRISIL Reaffirms B+ Rating on INR15cr Cash Loan
UNIWORTH ENTERPRISES: Ind-Ra Affirms BB+ Issuer Rating, Outlook Neg
WEST GUJARAT: Ind-Ra Lowers Non-Convertible Debt Rating to 'D'
M A L A Y S I A
MALAYSIA AIRLINES: Risks Being Shut Down, PM Mahathir Says
S I N G A P O R E
ACESIAN PARTNERS: To Sell Loss-Making Unit for SGD321,000
HYFLUX LTD: Moves Townhall Meeting Due to Space Constraints
TONG CHIANG: High Court Enters Wind Up Order
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=================
A U S T R A L I A
=================
AUSCO PAK: First Creditors' Meeting Set for March 20
----------------------------------------------------
A first meeting of the creditors in the proceedings of Ausco Pak
Pty Ltd will be held on March 20, 2019, at 10:30 a.m. at the
offices of Jirsch Sutherland, at Level 12, 460 Lonsdale Street, in
Melbourne, Victoria.
Sule Arnautovic and Liam Bellamy of Jirsch Sutherland were
appointed as administrators of Ausco Pak on March 7, 2019.
EXPO DOCUMENT: Second Creditors' Meeting Set for March 20
---------------------------------------------------------
A second meeting of creditors in the proceedings of Expo Document
Copy Centre (W.A) Pty Ltd has been set for March 20, 2019, at 1:00
p.m. at the offices of Chartered Accountants AANZ, at
Level 11, 2 Mill Street, in Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 19, 2019, at 4:00 p.m.
Jack Robert James and Paula Lauren Smith of Palisade Business were
appointed as administrators of Expo Document on Feb. 12, 2019.
HALIFAX INVESTMENT: Second Creditors' Meeting Set for March 20
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Halifax
Investment Services Pty Limited has been set for March 20, 2019, at
10:00 a.m. at Wesley Conference Centre, 220 Pitt Street, in Sydney,
NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 18, 2019, at 10:00 a.m.
Morgan John Kelly, Stewart McCallum, and Phil Quinlan of Ferrier
Hodgson were appointed as administrators of Halifax Investment on
Nov. 23, 2018.
LIGHT FACTORY: Second Creditors' Meeting Set for March 19
---------------------------------------------------------
A second meeting of creditors in the proceedings of Light Factory
Trade & Commercial Pty Ltd has been set for March 19, 2019, at
11:00 a.m. at Level 4, 12 Pirie Street, in Adelaide, SA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 18, 2019, at 5:00 p.m.
Andrejs Janis Strazdins of BRI Ferrier was appointed as
administrator of Light Factory on Feb. 11, 2019.
REGIONAL DRILLING: First Creditors' Meeting Set for March 21
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Regional
Drilling Pty Ltd will be held on March 21, 2019, at 10:00 a.m. at
Eagle Room, Level 24 Allendale Square, 77 St Georges Terrace, in
Perth, WA.
Mathieu Tribut of GTS Advisory was appointed as administrator of
Regional Drilling on March 11, 2019.
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C H I N A
=========
MEITUAN DIANPING: 4Q Loss Net Loss Widens to CNY3.41 Billion
------------------------------------------------------------
Nikkei Asian Review reports that China's Meituan Dianping reported
a wider loss in the fourth quarter as rising costs of food delivery
riders and payment processing weighed on the online food delivery
to ticketing services firm.
Net loss for the quarter ended December stood at CNY3.41 billion
(US$511.5 million), compared with a loss of CNY2.18 billion a year
ago, the company said in an exchange filing, the Nikkei relays.
Revenue surged 89% to CNY19.80 billion. Cost of revenue more than
doubled to CNY15.3 billion in the quarter.
Gross transactions volume jumped 33% to 138 billion yuan as the
number of transacting users and their purchasing frequency
increased, the company, as cited by the Nikkei, said.
The Nikkei relates that Meituan, which offers a range of services
including food delivery, local listings and online bookings, said
in 2019 the company plans to further improve the platform's ability
to make money "prudently" and explore new initiatives, even as it
seeks to maintain leadership in the food delivery business.
Food delivery accounts for nearly 56% of its revenue, the report
notes.
The Nikkei says the company, backed by Tencent Holdings, is locked
in a high-stakes battle for market share with Alibaba Group
Holding-owned Ele.me service and SoftBank-backed ride-hailing and
delivery company Didi Chuxing. The company had a market leading
64.1% share of the food-delivery market in China as of February,
according to numbers compiled by DCCI Data Center of China
Internet, a research company.
"We will take a more disciplined approach when allocating capital
resources for our new initiatives and will be more selective in
scaling up new initiatives," the company said, adding that it is
also aiming to narrow the operating losses in its car-hailing and
bike-sharing businesses, the Nikkei relays.
Meituan will "prudently explore" the opportunities in new retail
areas such as non-food delivery, it added.
Meituan Dianping operates as a web based shopping platform for
locally found consumer products and retail services. The Company
offers deals of the day by selling vouchers on local services and
entertainment, dining, delivery, and other services. Meituan
Dianping provides its services throughout China.
=========
I N D I A
=========
A C P INDUSTRIES: CRISIL Reaffirms B- Rating on INR33cr Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on
the bank facilities of A C P Industries Limited (ACPI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 33 CRISIL B-/Stable (Reaffirmed)
Proposed Long 5 CRISIL B-/Stable (Reaffirmed)
Term Bank Loan
Facility
The ratings reflect the company's average scale of operations and
weak financial risk profile driven by subdued debt protection
metrics and modest liquidity. These weaknesses are partially offset
by the extensive experience of the promoters in manufacturing
incense sticks and trading in agricultural commodities.
Analytical Approach
Unsecured loans from a related entity have been treated as neither
debt nor equity as they will remain in the business over the medium
term. Earlier, they were treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Average scale of operations: The scale of operations is
constrained by intense competition leading to low operating margin.
High proportion of income from trading in agricultural commodities
will continue to constrain the business risk profile of the
company.
* Weak financial risk profile: Gearing was moderate at 1.3 times as
on March 31, 2018, while interest coverage ratio was weak at 1.36
times for fiscal 2018. With low operating margin, the debt
protection metrics is expected to be weak over the medium term.
Strength
* Extensive experience of the promoters: The promoters' experience
of two decades in manufacturing incense sticks and established
relationships with suppliers and customers in the agricultural
commodities trading business should support the business.
Liquidity
The company has modest liquidity, as indicated by full utilised
bank lines. The cash credit limit of INR33 crore is fully utilised
on account of large working capital requirement because of
stretched receivables. However, negligible debt obligation and
accrual of INR3.4-4.2 crore should support liquidity. Furthermore,
unsecured loans from a group entity support working capital
management to some extent.
Outlook: Stable
CRISIL believes ACPI will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if increase in revenue and operating profitability
strengthens the financial risk profile. The outlook may be revised
to 'Negative' if any large debt-funded capital expenditure, or
stretch in working capital cycle, or decline in operating
profitability weakens the financial risk profile and liquidity.
Incorporated in 1995, ACPI manufactures incense sticks and trades
in agricultural commodities such as rice and maize. Mr Ambica
Prasad, managing director, manages operations.
BESTOVO FOODS: CRISIL Moves B Ratings to Not Cooperating Category
-----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Bestovo Foods
Private Limited (BFPL) to 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Term 1.8 CRISIL B/Stable (ISSUER NOT
Loan COOPERATING; Rating Migrated)
Term Loan 6.7 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with BFPL for obtaining
information through letters and emails dated November 29, 2018,
February 14, 2019 and February 20, 2019 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 BFPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BFPL 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 BFPL to 'CRISIL B/Stable Issuer not cooperating'.
Incorporated in August 2015, Bestovo Foods Private Limited, is into
manufacturing of powdered egg. The company, promoted by Mr. P
Surendranath who has over 15 years of industry experience.
CITY MOTORS: CRISIL Migrates B Ratings to Non-Cooperating Category
------------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of City Motors
Private Limited (CMPL) to 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Electronic Dealer 19.75 CRISIL B/Stable (ISSUER NOT
Financing Scheme COOPERATING; Rating Migrated)
(e-DFS)
Proposed Long Term .56 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 1.69 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with CMPL for obtaining
information through letters and emails dated November 26, 2018,
February 14, 2019 and February 20, 2019 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 CMPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CMPL is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of CMPL to 'CRISIL B/Stable Issuer not cooperating'.
CMPL was incorporated in 1995 and commenced operations in 1997.
CMPL has HCIL's dealership in Bhubaneshwar, Sambalpur, Angul and
Vishakhapatnam. The company has one showroom in each city with 3S
facilities (Sales, Service and Spares) of the cars. CMPL is managed
by Mr. V K Dhawan and family.
CLEARSKY SOLAR: Ind-Ra Keeps BB in INR129MM Debt in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Clearsky Solar
Private Limited's (CSPL) Long-Term Issuer Rating in the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating action is:
-- The 'IND BB' rating on the INR129.2 mil. Term loan due on
August 2031 Maintained in the non-cooperating category and
withdrawn;
* Maintained in 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
CSPL did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Ind-Ra is no longer required
to maintain the ratings, as the agency has received a no objection
certificate from the rated facilities' lenders.
COMPANY PROFILE
Clearsky Solar is a special purpose vehicle formed in November
2015, to develop, own and operate a 3MW solar power plant in
Jonnikeri Village, Karnataka. The project's progress details are
not available.
HILLWOOD FURNITURE: CRISIL Migrates D Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Hillwood
Furniture Private Limited (HFPL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 3.0 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 35.0 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with HFPL for obtaining
information through letters and emails dated November 26, 2018 and
December 20, 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 HFPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HFPL 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 HFPL to 'CRISIL D/CRISIL D Issuer not cooperating'.
HFPL based in Kerala, were incorporated in 2001-02 and process
timber logs. HFPL also manufactures building materials such as
window, door, and kitchen frames. HFPL primarily deals in teakwood,
while HIEPL deals mostly in hardwood.
HOTEL SKY: CRISIL Withdraws 'B' Rating on INR8cr Term Loan
----------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Hotel Sky
Scapers (HSS) on the request of the company and after receiving no
objection certificate from the bank. The rating action is in-line
with CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 8 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with HSS for obtaining
information through letters and emails dated February 14, 2019 and
February 20, 2019 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 HSS. 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 HSS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information, CRISIL
has migrated the ratings on the bank facilities of HSS to 'CRISIL
B/Stable Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of HSS on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Established in 2012 as a partnership firm by Mr Atul Gupta, Ms
Sindhu Gupta, and Mr Manjul Manglik, HSS operates a hotel, Saffron,
in Dehradun that began commercial operations from June 2014.
JET AIRWAYS: Denies Report of INR20.50BB Loan from PNB
------------------------------------------------------
Reuters reports that India's debt-laden Jet Airways Ltd denied a
media report on March 11 that it had secured a INR20.50 billion
(US$293 million) loan from state-owned Punjab National Bank (PNB)
to help pay overdue plane leasing fees and salaries.
Reuters relates that the airline, which has had to ground planes
after failing to make payments to leasing companies and is behind
on paying pilots' wages, said in a statement to the stock exchange
that it has an existing credit facility of $300 million from PNB
and that the bank has not provided any fresh credit.
Indian daily Mint had reported earlier on March 11 that Jet had
secured foreign currency term loans worth INR11 billion and a
credit facility of INR9.50 billion from PNB for its working capital
needs, citing an unnamed source, Reuters relays.
According to Reuters, Jet Airways is saddled with more than a
billion dollars in debt and its shares jumped 4.8 percent after
Mint's report to INR255, their highest level in over a month. They
ended the day 1.7 percent higher in a strong Mumbai market.
The airline issued its statement after the market close. PNB did
not respond to a request for comment, Reuters notes.
Jet is struggling to make payments to banks, aircraft leasing
companies, vendors and pilots, Reuters says.
Reuters adds that some leasing companies have forced the airline to
ground more than two dozen planes from its fleet of about 120
aircraft prior to potentially moving them out of India as
scepticism builds over whether a planned state-led bailout of the
carrier can clear their dues on time.
Jet Airways has outlined a draft plan to sell a majority stake to a
consortium led by the State Bank of India at INR1, under
regulations that permit banks to convert debt to equity in a
defaulting firm.
Reuters notes that the stake sale will be followed by an equity
raising, debt restructuring and the sale and leaseback of jets to
help plug a $1.2 billion funding gap, but the plan needs approvals
from several stakeholders, including major shareholder Etihad
Airways.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/ -- provides passenger and cargo air
transportation services. It also provides aircraft leasing
services. It operates flights to 66 destinations in India and
international countries. As of November 22, 2018, the company had a
fleet of 124 aircraft, comprising Boeing 777-300 ERs, Airbus
A330-200/300, the latest Boeing 737 Max 8, Next Generation Boeing
737s, and ATR 72-500/600s.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
28, 2018, ICRA revised the ratings on certain bank facilities of
Jet Airways (India) Limited to [ICRA]C from [ICRA]B. The rating
downgrade considers delays in the implementation of the proposed
liquidity initiatives by the management, further aggravating its
liquidity, as reflected in the delays in employee salary payments
and lease rental payments to the aircraft lessors. Moreover, the
company has large debt repayments due over the next four months
(December-March) of FY2019 (INR1,700 crore), FY2020 (INR2,444.5
crore) and FY2021 (INR2,167.9 crore). The company is undertaking
various liquidity initiatives, which includes, among others, equity
infusion and a stake sale in Jet Privilege Private Limited (JPPL),
and the timely implementation of these initiatives is a key rating
sensitivity. Moreover, the company continues to witness a stress
in its operating and financial performance.
KCS INFRATECH: CRISIL Assigns 'B' Ratings to INR13.5cr Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of KCS Infratech LLP (KCS).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Assigned)
Term Loan 7.5 CRISIL B/Stable (Assigned)
The rating reflects the firm's modest scale and start-up phase of
operations, average financial risk profile, and large working
capital requirement. These weaknesses are partially offset by
strategic location of plant and extensive experience of its
promoters in the textiles industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations: Since commercial production began in
November 2018, revenue is likely to be modest at INR13-14 crore in
fiscal 2019. Start-up phase and intense competition are likely to
keep turnover subdued over the medium term.
* Average financial risk profile: Gearing is expected to be high at
4.09 times as on March 31, 2019. Debt protection metrics are likely
to be muted, with interest coverage and net cash accrual to total
debt ratios of 1.8 times and 0.05 time, respectively, for fiscal
2019.
* Large working capital requirement: Since stone extraction cannot
be carried out during monsoon, inventory during June-August (though
build-up starts from February-March) is sizeable at 180-300 days.
Strengths
* Strategic location of plant: The firm's plant is near Gaula river
bed in Haldwani, Uttarakhand, which has ample stones. This
substantially lowers transportation cost.
* Extensive experience of promoters: Benefits from promoters'
experience of two decades, strong understanding of local market
dynamics, and healthy relationship with customers and suppliers
should continue to support business.
Liquidity
Bank limit was utilised at 91% on average during the eight months
ended November 30, 2018.
Expected cash accrual of INR0.8 crore will be sufficient to repay
term debt of INR0.5 crore over the medium term. The remaining
accrual will cushion liquidity. Current ratio is expected to be
1.12 times as on March 31, 2019.
Outlook: Stable
CRISIL believes KCS will continue to benefit from the extensive
experience of its promoters and established client relationship.
The outlook may be revised to 'Positive' in case of
higher-than-expected cash accrual, significant improvement in
capital structure due to fresh equity infusion, or efficient
working capital management. The outlook may be revised to
'Negative' if lower cash accrual or stretch in working capital
cycle adversely affects financial risk profile.
Set up as a limited liability partnership firm in November 2017 by
Mr Ajay Vaish, Mr Mahesh Tiwari, Mr Rakesh Jaiwal, Mr Ramesh Vaish,
and Mr Suresh Chandra, KCSI crushes stone. Plant has capacity of
200 tonne per month.
MANJUNATHA INDUSTRIES: CRISIL Assigns B Ratings to INR9.87cr Loans
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Manjunatha Industries (MI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.50 CRISIL B/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3.34 CRISIL B/Stable (Assigned)
The rating reflects the firm's small scale of operations and
exposure to intense competition in the cotton ginning industry,
susceptibility to government regulations and to fluctuations in raw
material prices. These rating weaknesses are partially offset by
the extensive industry experience of the promoters and their
need-based fund support.
Key Rating Drivers & Detailed Description
Weaknesses:
* Small scale of operations in a competitive industry: With revenue
of INR23.52 crore in fiscal 2018 the scale remains small in the
intensely competitive cotton ginning industry.
* Susceptibility to government regulations and to fluctuation in
raw material prices: The government fixes minimum support price for
each crop every year which, along with demand-supply factors,
affects cotton prices. Hence, the operating margin remains
susceptible to volatile cotton prices.
Strengths:
* Promoters' extensive industry experience and their fund support:
Benefits from promoters' extensive experience of over 24 years in
the cotton ginning industry, should support the business risk
profile. They also provide timely fund support to aid operations
and cover maturing debt on time.
Liquidity
* Bank limit utilisation: Bank limit utilisation was high averaging
90.57% for the 11 months through November 2018 of the cash credit
facility.
* Net cash accrual against obligation: Net cash accrual expected at
INR30-40 lakhs in fiscals 2019 and 2020 each should be sufficient
to meet the repayments of about INR21 lakhs per fiscal.
Outlook: Stable
CRISIL believes MI will continue to benefit over the medium term
from the industry experience of promoters. The outlook may be
revised to 'Positive' if increase in revenue and improvement in
profitability, while improving the capital structure, strengthens
key credit metrics. The outlook may be revised to 'Negative' if
sharp decline in sales volumes and profitability, or a considerable
stretch in working capital cycle, deteriorates the financial risk
profile, especially liquidity.
Incorporated in 2016, MI gins and presses cotton. The company is
promoted by Mr. Aitha Yugander and Mr. Aitha Mohan.
MOSAVI ENTERPRISES: Ind-Ra Corrects Feb. 28 Rating Release
----------------------------------------------------------
India Ratings and Research (Ind-Ra) corrected a press release on
Mosavi Enterprises Private Limited published on February 28, 2019
to rectify the non-convertible debentures amount and clarify the
cross-default clause in the commentary.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has downgraded Mosavi
Enterprises Private Limited's (Mosavi) Long-Term Issuer Rating to
'IND BB+' from 'IND BBB-'. The Outlook is Stable.
The instrument-wise ratings action is:
-- INR960 mil. Non-convertible debentures (NCDs) due on August 9,
2022 ISIN INE280Y07017 issued on August 10, 2017 coupon rate
is 1% downgraded with IND BB+/Stable rating.
Analytical Approach: Ind-Ra continues to take a consolidated view
of Mosavi, Seaways Shipping and Logistics Limited (Seaways; 'IND
BB+/Stable') and the subsidiaries of Seaways to arrive at the
ratings on account of operational, management and financial
linkages among the entities. Mosavi is wholly owned by the
promoters of Seaways.
KEY RATING DRIVERS
The downgrade reflects a similar rating action on Seaways, with
which Mosavi has strong legal linkages. A cross-default clause is
applicable to the debt raised by way of NCDs by Mosavi. Mosavi’s
debt (NCDs) has been secured by an 87.8% share pledge of Seaways.
The agency expects that Seaways would provide the required
assistance to Mosavi in case of its inability to timely service the
debt repayment.
Mosavi, which commenced commercial operations from September 2017,
registered a revenue of INR68 million and an operating loss of INR5
million for FY18. It registered INR68 million in revenue and INR6
million in operating income of for 1HFY19.
Mosavi does not have any other debts except NCDs.
RATING SENSITIVITIES
Negative: Any weakening of the linkages between Seaways and Mosavi,
and any further rating downgrade for Seaways could lead to a
negative rating action.
Positive: A rating upgrade for Seaways may lead to a similar action
for Mosavi.
COMPANY PROFILE
Incorporated in May 2017, Mosavi is engaged in material handling
operations, transportation, and storage across ports. The company
commenced commercial operations in September 2017.
In addition, it leases equipment used for lifting cargo onto ships
and unloading of cargo from ships, transport vehicles that move
goods/cargo between ships and warehouses, and others.
NAVANIDHI ELECTRONICS: CRISIL Moves D Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the ratings on bank facilities of Navanidhi
Electronics Private Limited (NEPL) to 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3.85 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 2.00 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Open Cash Credit 7.65 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with NEPL and has sought
information through a letter and email dated February 18, 2019,
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 they have been arrived at without any
management interaction, and are based on the best available,
limited or dated information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL has
not received any information on either the financial performance or
strategic intent of NEPL, and this restricts CRISIL's ability to
take a forward-looking view on the entity's credit quality. CRISIL
believes information available on NEPL 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 NEPL have been migrated to 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
NEPL was set up as a partnership firm named NNE in 1983, and got
its current name in 1984. NNE was engaged in design, development,
manufacture and testing of amplifiers, filters, broadband antennae,
power combiners /dividers and telecom masts. Mr Adithe Ramanadha
Sastry is the promoter. The manufacturing and assembly facility is
based in Hyderabad.
NAVEEN RICE: CRISIL Withdraws 'B' Ratings on INR15cr Loan
---------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Naveen
Rice Mills (NRM) on the request of the company and after receiving
no objection certificate from the bank. The rating action is
in-line with CRISIL's policy on withdrawal of its rating on bank
loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
Warehouse Receipts 3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with NRM for obtaining
information through letters and emails dated February 14, 2019 and
February 20, 2019 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 NRM. 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 NRM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information, CRISIL
has migrated the ratings on the bank facilities of NRM to 'CRISIL
B/Stable Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of NRM on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
NRM was established as a partnership firm in 1986, by Mr Chiranji
Lal Bansal and his family. The firm mills, processes and packages
basmati and non-basmati rice. Production facilities, at Assandh,
Karnal, Punjab, have milling and sorting capacity of around 10
tonnes per hour, and operate at around 80% capacity.
S.L. GROUP: CRISIL Reaffirms 'B' Rating on INR19.5cr Term Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facility of S.L. Group and Associates (SLGA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 19.5 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect SLGA's exposure to demand, funding,
and completion risks associated with the ongoing project and
susceptibility to cyclicality inherent in the real estate industry.
These rating weaknesses are partially offset by extensive
experience of partners in the real estate business and moderate
bookings and realization.
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to demand, funding, and completion risks associated with
the ongoing project: Till December 2018, total 4 towers (293 units)
have been constructed of which, 67% units have been booked. The
structure work has been completed for all the units; and finishing
work is completed for 2 towers. Entire project is expected to get
completed by October 2019. Hence, exposure to demand, funding, and
completion risk is expected to continue over the medium term.
* Susceptibility to cyclicality inherent in the real estate
industry: The firm is susceptible to risks pertaining to inherent
cyclicality in the real estate sector. The residential real estate
industry is characterized by the presence of a large number of
regional players due to lower entry barriers. Despite stiff
competition, past track record, quality and goodwill help large
players to command premium pricing for their projects. However,
there is severe competition among the small regional players.
Moreover, the industry is inherently cyclical in nature as
evidenced during the 2008 economic slowdown.
Strengths:
* Extensive experience of partners in the real estate business:
SLGA's partners have over a decade of industry experience and have
executed various projects in the past in Delhi and Uttar Pradesh.
* Moderate bookings and realization: Bookings and advances received
will remain rating sensitivity factors over the medium term. Till
December 2018, 67% of the units had been booked while the rest are
still pending to be sold off.
Liquidity
Liquidity is marked with CC limit of INR50 lacs which is on an
average 60% utilized. The firm has one term loan of INR19.5 crore
for the construction of Orchid Green project which is fully
disbursed and to be repaid in 10 quarterly installments starting
from June 2018. The NCA have been sufficient to meet he repayment
obligation.
Outlook: Stable
CRISIL believes that SLGA will benefit over the medium term from
its partners' extensive experience in the real estate industry. The
outlook may be revised to 'Positive' if the firm exhibits
significant progress in bookings and flow of advances for the
project. Conversely, the outlook may be revised to 'Negative' in
case of time or cost overrun or in case of lower than anticipated
advances from customers.
SLGA is currently executing a residential project 'Green Orchid' of
a 3,99,456.6 sq. ft at Plot 1 Sector 13, New Moradabad, Uttar
Pradesh (UP) on land of 1,02,537.3 sq. ft. SLGA is a joint venture
between Sunil Gupta, Mr Anil Tomar, and Mr. Chandra Bhan Singh.
SEVENHILLS HEALTHCARE: CRISIL Retains D Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of SevenHills Healthcare
Private Limited (SHPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Funded Interest 56.44 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
Overdraft 50.00 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 106.81 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 510.11 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SHPL for obtaining
information through letters and emails dated August 31, 2018 and
January 15, 2019 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 SHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SHPL 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 SHPL continues to be 'CRISIL D Issuer not
cooperating'.
SHPL, incorporated in 2004, is currently operating two
super-speciality hospitals under the name of Sevenhills Hospital;
one is in in Visakhapatnam (Andhra Pradesh) and other in Andheri,
Mumbai. Sevenhills Hospital, Visakhapatnam was started in 1988 by
Sevenhills Hospitals Pvt Ltd, which was later merged with SHPL in
2009. Sevenhills Hospital, Mumbai, commenced operations in 2009.
SHPL is currently promoted by Dr. Jitendra Das Maganti, his wife,
Dr. Renuka Jitendra Maganti, and AIRRO (Mauritius) Holdings I,
Mauritius (AIRRO; a fund affiliated to JP Morgan).
SHREE SATYA: CRISIL Withdraws D Ratings on INR20cr Loans
--------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Shree
Satya Educational Trust (SSET) on the request of the company and
after receiving no objection certificate from the bank. The rating
action is in-line with CRISIL's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Long Term Loan 13.9 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Overdraft 1.0 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Proposed Working 3.6 CRISIL D (ISSUER NOT
Capital Facility COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
CRISIL has been consistently following up with SSET for obtaining
information through letters and emails dated February 14, 2019 and
February 20, 2019 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 SSET. 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 SSET is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information, CRISIL
has migrated the ratings on the bank facilities of SSET to 'CRISIL
D Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of SSET on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Shree Satya Education trust (SSET) was established in August, 2008
by Mr. V.K.S Malik and Mr. Ajay Malik at Moradabad, Uttar Pradesh.
The trust consist of five institutes under it namely Shree Satya
Institute of Management, Shree Satya College of higher education;
Shree Satya College of Medical Sciences; Shree Satya College of
Education.
SHRI SHANKAR: CRISIL Moves D on INR25cr Loan to Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shri Shankar Sahakari
Sakhar Karkhana Limited (SSSSKL) continues to be 'CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Short Term Loan 25 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SSSSKL for obtaining
information through letters and emails dated July 31, 2018 and
January 15, 2019 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 SSSSKL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSSSKL 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 SSSSKL continues to be 'CRISIL D Issuer not
cooperating'.
SSSSKL was established in 1968 as a co-operative society by the
late Mr. Shankarrao Mohite-Patil. Its manufacturing facility is at
Sadashivnagar in Solapur, Maharashtra. It has installed sugar cane
crushing capacity of 2500 tonne per day, a 30-kilolitre-per-day
distillery, and a 20-megawatt cogeneration plant.
SIVA ENGINEERING: CRISIL Migrates 'D' Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Siva
Engineering Company (Siva) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 10 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 17 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 5.34 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL has been consistently following up with Siva for obtaining
information through letters and emails dated December 31, 2018,
February 14, 2019 and February 20, 2019 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 Siva. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Siva is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Siva to 'CRISIL D/CRISIL D Issuer not cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Siva, set up in 1978 as a partnership firm, constructs bridges,
buildings, and water-treatment plants, primarily in Tamil Nadu. Its
operations are managed by Mr R Muthuswamy and Mr Siva Subramaniam.
SRI VIJAYA: CRISIL Maintains 'D' Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Vijaya Durga
Motors Private Limited (SVDMPL) continues to be 'CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 1 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SVDMPL for obtaining
information through letters and emails dated August 31, 2018 and
January 15, 2019 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 SVDMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVDMPL 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 SVDMPL continues to be 'CRISIL D Issuer not
cooperating'.
SVDMPL, incorporated in 2003, remained non-operational until April
2011. During fiscal 2012, the company commenced operations by
taking up the dealership for Mahindra Navistar's commercial
vehicles. It has three showrooms, one each at Kadapa, Kurnool, and
Anantpur, all in Andhra Pradesh.
TAURUS FOOD: CRISIL Reaffirms B+ Rating on INR15cr Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long
term bank facilities of Taurus Food Exports (TFE) while reassigned
its 'CRISIL A4' rating to the short term bank facility.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Open Cash Credit 15 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed)
Secured Overdraft
Facility 2.5 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term
Bank Loan Facility 10.0 CRISIL A4 (Reassigned)
CRISIL ratings continue to reflect the firm's exposure to risks
related to volatility in cashew nut prices and below-average
financial risk profile. These weaknesses are partly offset by the
extensive experience of the proprietor and established customer
relationships.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks related to volatility in cashew nut prices: The
prices of cashew are highly volatile, which the companies are not
able to fully pass on to customers. Although cashew nuts are
procured based on the proprietor's expectation of movements in
prices, the firm will remain exposed to and be impacted by the
volatility in cashew nut prices.
* Below-average financial risk profile: Networth was modest at
INR4.64 crore as on March 31, 2018 and debt protection metrics
remains weak with interest coverage of 1 time for fiscal 2018.
Strength:
* Extensive experience of the proprietor: Benefits from the
proprietor's experience of more than four decades through sister
concern and established relations with customers and suppliers
should continue to support the business.
Liquidity
Liquidity is stretched marked by low cash accrual of around INR0.1
crore over the medium term. Nevertheless, the liquidity is
supported by absence of debt obligation and cushion in bank limits.
TFE has fund-based limit of INR17.5 crore, which was utilised at
39% over the 12 months through November 2018 due to the seasonality
of the business.
Outlook: Stable
CRISIL believes TFE will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if increase in revenue and profitability improves cash
accrual and working capital management or if debt protection
metrics improve. The outlook may be revised to 'Negative' if
decline in revenue or profitability, or stretch in working capital
cycle, further weakens financial risk profile.
Established in 1999, Kollam, Kerala-based TFE, imports and trades
in raw cashew nuts. The proprietor, Mr Suresh Chandran, manages the
operations.
UNIWORTH ENTERPRISES: Ind-Ra Affirms BB+ Issuer Rating, Outlook Neg
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Uniworth
Enterprises LLP's Outlook to Negative from Stable while affirming
its Long-Term Issuer Rating at 'IND BB+'.
The instrument-wise rating actions are:
-- INR440 mil. Term loan due on February 2024 affirmed; Outlook
revised to Negative from Stable with IND BB+/ Negative
rating;
-- INR150 mil. Fund-based working capital facility affirmed;
Outlook revised to Negative from Stable with IND BB+/
Negative /IND A4+ rating;
-- INR70 mil. Non-fund-based working capital facility affirmed
with IND A4+ rating; and
-- INR90 mil. Proposed fund-based working capital facility*
affirmed; Outlook revised to Negative from Stable with
Provisional IND BB+/ Negative/Provisional IND A4+ rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facility by
Uniworth to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The Outlook revision reflects the slower-than-expected ramp-up in
the company's installed capacities at around 10-15% in 9MFY19,
which has led to a weak operating performance in FY19. Uniworth
achieved revenue of about INR325 million in 9MFY19. According
Ind-Ra, the company would record a topline of just around INR400
million in FY19, which is weaker than the agency's initial
expectations, and would subsequently incur cash losses. Ind-Ra
believes that the achievement of break-even EBITDA might take
longer than expected on account of the longer gestation period
required in getting approvals to deal with pharma companies.
According to the management, the order flow is improving, with the
company's facilities having passed the audit checks of IPCA
Laboratories Limited, Torrent Pharmaceuticals Limited ('IND
AA'/Stable), Lupin Limited and Ajanta Pharma Limited. Uniworth has
started receiving orders from these companies, and the management
believes its performance will improve substantially from FY20
onwards.
The ratings reflect Uniworth's limited operating track record in
the packaging industry. The firm, which predominantly caters to the
pharmaceutical industry, commenced commercial operations in July
2017. The ability of the firm to quickly scale up/stabilize
operations and prudently manage its working capital cycle will be
critical from the credit perspective.
However, the ratings derive strength from the operational and
financial support from Meghmani group companies. The term loan
repayment of Uniworth will commence from May 2019, quarterly
installments of INR22 million for five years. The management has
indicated Meghmani Dyes and Intermediates LLP (MDIL) will provide
financial support to ensure timely servicing of the loan.
MDIL's revenues stood at INR4,461 million in FY18 (FY17:
INR3,665.01 million), its EBITDA amounted to INR547 million (INR806
million), and it had cash balances of INR139 million as on 31 March
2018. MDIL was debt-free till FY18; in FY19, it has borrowed a term
loan of INR255 million, which entails repayment obligations of
INR85 million in FY20. This amount will be adequately covered by
MDIL's EBITDA, and it will have sufficient cushion to support
Uniworth. In FY18, Uniworth received unsecured loans of INR180
million from its associate concerns. An additional INR20 million
was infused in FY19 to fund losses and meet working capital
requirements.
The ratings factor in a comfortable 54% utilization of fund-based
facilities in the 12 months ended January 2019; the utilization
will increase as business scales up.
The ratings are also supported by the company's proximity to major
pharmaceutical plants, availability of sufficient raw material, and
Ind-Ra's expectations of stable growth in the pharmaceutical
industry.
In addition, the promoters have an experience of about four decades
in the chemicals industry.
RATING SENSITIVITIES
Negative: A significant in the EBITDA margins and credit profile,
on a sustained basis, will be positive for the ratings.
Positive: Any further deterioration in the EBITDA margins and/or
absence of timely support from the associate concerns could be
negative for the ratings.
COMPANY PROFILE
Uniworth, promoted by the Patel family, is a part of the Meghmani
group, which has business interests in agro-chemicals, specialty
chemicals, fertilizers, dyes and intermediates, digital printing
inks, etc.
Incorporated in 2013, the firm has set up a manufacturing unit in
Sanand, Ahmedabad, with an overall packaging capacity of 11700
million tons per annum (mtpa). The manufacturing unit has a
capacity to produce 7,500mtpa of PVC rigid, 2400mtpa of PVDC and
1,800mtpa of Alu-Alu.
WEST GUJARAT: Ind-Ra Lowers Non-Convertible Debt Rating to 'D'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the rating on
West Gujarat Expressway Limited's (WGEL) non-convertible debentures
(NCDs) to 'IND D (SO)' from 'IND BB- (SO)' while resolving the
Rating Watch Negative (RWN) as follows:
-- INR1,412.6 bil. (INR1,289.80 bil. outstanding on December 31,
2018) Senior, secured, redeemable NCDs* downgraded; Off RWN
with IND D (SO) rating.
* Details in Annexure
KEY RATING DRIVERS
The rating downgrade reflects the non-payment of an interest amount
of INR8 million by WGEL due on February 28, 2019. This was despite
the company having a cash and bank balance of INR110.48 million and
debt service reserve of INR70 million.
WGEL has been classified under the 'Amber' category according to
the National Company Law Appellate Tribunal order dated February
12, 2019, which defines 'Amber Entities as Domestic Group Entities
which are not able to meet all their obligations (financial and
operational), but can meet only operational payment obligations and
payment obligations to senior secured financial creditors'.
RATING SENSITIVITIES
Positive: Timely debt service for at least three consecutive months
could result in a positive rating action.
COMPANY PROFILE
WGEL is a special purpose vehicle, set up to develop, design,
finance, construct, operate and maintain the 68km Jetpur Gondal and
Rajkot bypass section (National Highway 8B including Rajkot bypass)
in Gujarat. The project was awarded by National Highways Authority
of India ('IND AAA'/Stable) and involves widening the existing
Jetpur-Gondal section (two to four laning, 26km), improving the
existing four-lane Gondal-Rajkot Section (32km), and widening the
existing Rajkot bypass (two to four laning, 10km).
===============
M A L A Y S I A
===============
MALAYSIA AIRLINES: Risks Being Shut Down, PM Mahathir Says
----------------------------------------------------------
Nikkei Asian Review reports that Malaysia could consider shutting
down loss-making Malaysia Airlines, among other options, Prime
Minister Mahathir Mohamad said on March 12.
"I think it is a very serious matter to shut down the national
airline," the Nikkei quotes Mahathir as saying in response to
reporters' questions. "We will nevertheless study the situation,
whether to shut the airline down. Or should we sell it off or
refinance it?"
According to the Nikkei, the prime minister's comments come as
prospects for a return to profit at the national flag carrier
appear to be receding. After more than a decade of financial
struggles, the airline was taken private by sovereign wealth fund
Khazanah Nasional in 2014. A restructuring plan was launched which
targeted a return to profit within five years.
But the rise of budget airlines in Asia has put legacy carriers
such as Malaysia Airlines under intense pressure. Rising fuel costs
and foreign exchange volatility are also weighing down the
industry, the report says.
In fiscal 2018, Malaysia Airlines suffered another loss, though
"marginally lower" than that of the previous year, the airline
announced on March 1, the Nikkei relays.
Without reporting any financial details, the privatized company
said load factor, an indication of how efficiently an airline fills
its seats and generates revenue, was 76.6% during the final quarter
of 2018, according to the Nikkei.
The Nikkei, citing Forbes, notes that the average airline load
factor in 2018 was 81.7%, up from 75.2% in 2005.
Malaysia Airlines' poor performance has pulled Khazanah, an
important contributor to government coffers, into the red, the
report says.
The Nikkei says the fund, which also holds controlling stakes in
Telekom Malaysia and IHH Healthcare, posted a pretax loss of MYR6.3
billion ($1.5 billion) in 2018 on higher impairment charges and
lower dividend income. Khazanah said Malaysia Airlines accounted
for half its MYR7.3 billion in impairment charges.
Responding to Mahathir's statement, Malaysia Airlines said it has
been working on the next phase of its turnaround plan since
September and will reveal details once they are finalized, the
Nikkei relates.
According to the Nikkei, analysts said the carrier is handicapped
by legacy issues, including governmental interference in its
operations.
"Khazanah does not know how to run an airline," said Shukor Yusuff,
and aviation analyst who added that Malaysia's government has a say
in selecting the carrier's routes and aircraft, the Nikkei relays.
The Nikkei relates that Shukor said Malaysian professionals should
be allowed to restructure the airline and run it like a "true
business." After the carrier was privatized, Irish businessman
Peter Bellew of Ryanair and German Christoph Mueller of Emirates
Group were headhunted to lead the transformation. Both would later
leave without explanation and before finishing out their three-year
contracts.
Brendan Sobie of the Sydney-based Centre of Aviation said shutting
down Malaysia Airlines, which has been around in one form or
another since the 1930s, is not politically tenable. Neither does a
sale of the carrier make sense, he said, citing massive debt that
foreign investors are unlikely to assume.
Malaysia Airlines has been suffering financially since the 1990s.
"Pumping more money in is always the favored option politically,"
Sobie, as cited by the Nikkei, said, "but the question becomes, of
course, will yet another restructuring be successful?"
Headquartered in Selangor, Malaysia, state-owned Malaysia Airlines
-- http://www.malaysiaairlines.com/-- engages in the business of
air transportation and the provision of related services.
=================
S I N G A P O R E
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ACESIAN PARTNERS: To Sell Loss-Making Unit for SGD321,000
---------------------------------------------------------
Annabeth Leow at The Business Times reports that Acesian Partners
has inked a sale and purchase agreement for its Acesian Sun unit,
following a memorandum of understanding on Feb 1.
Under the deal with Singapore-based public transport consultancy
Metro Transit Solutions, signed on March 11, Acesian Sun will be
sold off for SGD321,000 in cash - most of it spread out over
monthly instalments, BT says.
BT relates that the board of Acesian Partners, which has been under
judicial management since January 2017, said it believes that "it
will be more prudent" to divest from the loss-making Acesian Sun to
focus on the group's core business and, hopefully, improve overall
financial performance.
According to the report, Acesian Partners expects net proceeds of
about SGD315,000 from the transaction, which it plans to use for
general working capital requirements. It pegged the net gain from
the sale at roughly SGD277,000, after taking into account the
waiver of some SGD322,000 in inter-company debts owed by Acesian
Sun.
BT says the 12 monthly instalments cover SGD231,000 in payments.
Any of the last eight instalments can be waived if unpaid, if a
certain maintenance services contract is scrapped within a year of
the agreement, unless Acesian Sun or Metro Transit Solutions is at
fault for the termination, said Acesian Partners.
Acesian Sun, which was set up in 2016, carried out maintenance and
repair for air conditioning, ventilation, and electrical systems.
It had an unaudited net asset value of about SGD38,000 and net
losses of more than SGD351,000 as at Dec 31, 2018. No fresh
valuation was done for the disposal, BT discloses.
BT notes that the price tag for the transaction, which was reached
on a willing buyer, willing seller basis, took into account Acesian
Sun's net liability and loss-making position, said the Acesian
Partners board.
The board noted that Acesian Sun had "limited" growth prospects -
based on its lack of a licence to tender for large-scale government
projects and its lack of a foreign manpower quota - and added that
the parent company's status under judicial management has
significantly strained its ability to obtain financing from
suppliers and renew and win contracts, BT adds.
Assuming that the deal had gone through on Jan. 1, 2018, Acesian
Partners would have seen its full-year earnings per share rise from
0.36 Singapore cent to 0.43 Singapore cent, the board said,
presenting the pro forma financial effects of the transaction, BT
reports.
About Acesian Partners
Acesian Partners Limited supplies and installs environment-control
exhaust systems in Singapore. It operates through three segments:
Manufacturing, Engineering Services, and Distribution and Services.
The company manufactures ethylene tetrafluoroethylene coated
stainless steel ducts under the CMT brand; uncoated stainless steel
ducts; galvanized and stainless steel ductworks and accessories for
use in heating, ventilation, and air-conditioning systems; and
other specialized exhaust system components, as well as offers
laboratory air flow products.
In January 2017, the Singapore High Court Acesian Star (S) Pte Ltd
(ASPL), wholly owned subsidiary of Acesian Partners, in judicial
management, and Mr. Tam Chee Chong and Mr. Lim Loo Khoon, of
Deloitte & Touche LLP appointed as the joint and several Judicial
Managers.
In October 2017, the High Court approved the application by
Takenaka Corp for the appointment of Ms. Muk from KordaMentha as
additional judicial manager of ASPL.
HYFLUX LTD: Moves Townhall Meeting Due to Space Constraints
-----------------------------------------------------------
The Straits Times reports that Hyflux Ltd has called off its town
hall meeting today, March 13, on its restructuring, citing space
constraints at the original venue, in an announcement late on March
11.
According to the report, the third round of meetings, for holders
of its notes, perpetual securities and preference shares, was to
have been held at its Hyflux Innovation Centre in Bendemeer Road on
March 13 at 7:00 p.m.
But "due to the large number of holders of the securities who have
indicated that they wish to attend, the company considers it
necessary to arrange for a larger venue to conduct this town hall
meeting", Hyflux has now said, in an update to its Feb. 27
announcement.
It added that it will announce the new time and venue of the
meeting "as soon as possible," the report relays.
ST notes that Hyflux recently unveiled plans to tweak its debt
restructuring scheme and give disgruntled retail perp and pref
holders a higher recovery rate on their original investments, after
they pointed accusing fingers at the minimum recovery rate promised
to senior unsecured creditors.
Ahead of a do-or-die creditors' vote between restructuring and
liquidation on April 5, retail investors have filed proofs for a
hefty share of the SGD3.51 billion in claims being made against
Hyflux, the report says.
ST says holders of the SGD500 million, 6 per cent perpetual
securities have filed SGD540.7 million of claims, while holders of
the SGD400 million, 8 per cent preference shares filed claims worth
SGD429.3 million.
Greater clarity on the sums being claimed is expected after
adjudication on March 16, the report adds.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
TONG CHIANG: High Court Enters Wind Up Order
--------------------------------------------
The Straits Times reports that the High Court has ordered the
winding up of Serial System's 21 per cent-owned associated company,
Tong Chiang Group, on March 1, 2019.
Serial System's executive chairman and group chief executive
officer Derek Goh Bak Heng owns 2.5 per cent of Tong Chiang, the
report says.
Maybank Singapore, a creditor of Tong Chiang, filed the application
on Nov. 30, 2018. RSM Corporate Advisory's Chee Yoh Chuang --
ycchee@RSMSingapore.sg -- and Lin Yueh Hung --
yhlin@RSMSingapore.sg -- have been appointed joint and several
liquidators, the report discloses.
According to the report, the electronic components distributor said
in its bourse filing that the winding up of Tong Chiang was not
expected to have any financial impact on the net tangible assets
per share and earnings per share of the group for the current
financial year ending Dec. 31 2019, as full impairment had been
made for the group's investment in Tong Chiang for fiscal 2018.
On Aug. 20, 2018, Tong Chiang, along with other Serial System
associated companies, Edith-United International, Eunice Food
Catering and Imperial Kitchen Catering, had filed applications to
be placed under judicial management, the report notes. Serial
System owns a 21 per cent stake in each company.
As at Sept. 30, 2018, a full impairment loss of US$5.4 million had
been made for the group's 21 per cent equity stake in each company,
the Straits Times discloses.
*********
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 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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