/raid1/www/Hosts/bankrupt/TCRAP_Public/190402.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
Tuesday, April 2, 2019, Vol. 22, No. 66
Headlines
A U S T R A L I A
BUILD GROUP: Second Creditors' Meeting Set for April 9
CC BLAND: First Creditors' Meeting Set for April 9
CERES AGRICULTURAL: In Administration as Brudle Park Sells
CREO MEDIA: First Creditors' Meeting Set for April 8
GRAND PRIX: Second Creditors' Meeting Set for April 9
PLASTERMART (AUST): Second Creditors' Meeting Set for April 9
WITS HOLDINGS: First Creditors' Meeting Set for April 9
I N D I A
ADHARSHILA COUNTRY: Insolvency Resolution Process Case Summary
AMTEK AUTO: Lenders Want Second Bidding After Liberty Backed Out
APPLE INDUSTRIES: Insolvency Resolution Process Case Summary
BRYS HOTELS: Insolvency Resolution Process Case Summary
CHENNAI CNC: CRISIL Withdraws B+ Rating on INR10cr Loans
FLORESSENCE PERFUMES: CARE Lowers Ratings on INR17.60cr Loans to D
GANCO ENERGY: CARE Lowers Rating on INR10cr LT Loan to D
HGP CARS: CRISIL Withdraws B+ Ratings on INR13.5cr Loans
JAISWAL TRADING: CARE Assigns B+ Rating to INR6.0cr LT Loan
JET AIRWAYS: Misses $109MM Loan Payment to HSBC, Sources Say
KANSAL BUILDING: Insolvency Resolution Process Case Summary
L R AUTOMOBILES: CRISIL Withdraws B+ Ratings on INR22cr Loans
MAA SARBAMANGALA: CARE Lowers Rating on INR7.13cr LT Loan to D
ORANGE CITY: CARE Lowers Rating on INR211.46cr LT Loan to D
P G MERCANTILE: CRISIL Maintains 'D' Ratings in Not Cooperating
PHI LEARNING: CRISIL Keeps B on INR8cr Debt in Not Cooperating
PNR INFRA: CRISIL Keeps B on INR10cr Loan in Not Cooperating
PRANAV CONSTRUCTION: CRISIL Maintains D Rating in Not Cooperating
RATHI FEEDS: CRISIL Maintains 'C' Ratings in Not Cooperating
RATHI HATCHERIES: CRISIL Maintains D Ratings in Not Cooperating
SARDAR JEWELLERS: CRISIL Maintains B- Rating in Not Cooperating
SAVVY INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating
SHAH AGRI: CARE Assigns B+ Rating to INR15cr LT Loan
SHAH PULSE: CARE Assigns B+ Rating to INR50cr LT Loan
SHAKTI BASMATI: CRISIL Maintains 'D' Ratings in Not Cooperating
SHREE RAM: CARE Migrates B+ Rating to Not Cooperating Category
SHRINE VAILANKANNI: CRISIL Maintains B+ Rating in Not Cooperating
SOKHI STEELS: CRISIL Maintains D Ratings in Not Cooperating
SONIC CERAMIC: CARE Lowers Ratings on INR21.84cr Loans to D
SRI KRISHNA: CRISIL Maintains 'B+' Ratings in Not Cooperating
STANDARD PAPER: CRISIL Keeps B on INR6cr Loan in Not Cooperating
SUDHIR FORGINGS: CRISIL Maintains 'D' Rating in Not Cooperating
SWAMI HITECH: CRISIL Maintains 'B' Rating in Not Cooperating
VARDHMAN ESTATES: Insolvency Resolution Process Case Summary
WELWAYS ENGINEERS: CARE Assigns B Rating to INR2.90cr LT Loan
S I N G A P O R E
HYFLUX LTD: Restructuring Does Not Stop Any Probe, SIAS Chief Says
MIDAS HOLDINGS: Faces Liquidation as Rescue Deal Failed
SWIBER HOLDINGS: Gets US$200MM Investment From NY-listed Seaspan
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=================
A U S T R A L I A
=================
BUILD GROUP: Second Creditors' Meeting Set for April 9
------------------------------------------------------
A second meeting of creditors in the proceedings of Build Group NSW
Pty Ltd has been set for April 9, 2019, at 9:30 a.m. at the offices
of Worrells Solvency & Forensic Accountants, Suite 1, Level 15, at
9 Castlereagh 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 April 8, 2019, at 4:00 p.m.
Christopher Damien Darin of Worrells Solvency & Forensic
Accountants was appointed as administrator of Build Group on March
5, 2019.
CC BLAND: First Creditors' Meeting Set for April 9
--------------------------------------------------
A first meeting of the creditors in the proceedings of CC Bland
Group Pty Ltd will be held on April 9, 2019, at 11:00 a.m. at the
offices of O'Brien Palmer, Level 9, at 66 Clarence Street, in
Sydney, NSW.
Daniel John Frisken of O'Brien Palmer was appointed as
administrator of CC Bland on March 28, 2019.
CERES AGRICULTURAL: In Administration as Brudle Park Sells
----------------------------------------------------------
Beef Central reports that Ceres Agricultural Company has gone into
administration last week as its sale to Macquarie's Viridis Ag of
the 9300-hectare Brudle Park cropping aggregation north of Moree
for around AUD50 million is finalised.
Ceres Agricultural's other asset in northern New South Wales is
Gunyerwarildi, which includes a feedlot and large-scale cropping
operation at Warialda, east of Moree, Beef Central says.
"Brudle Park sold walk-in walk-out, and it settles next week.
Contracts have been exchanged unconditionally," the report quotes
CBRE agent Richard Royle as saying.
Beef Central relates that CBRE also has the Gunyerwarildi listing,
and Mr. Royle said the property was the subject of strong interest
from more than one party.
According to the Australian Securities and Investment Commission,
Ceres Agricultural Company's directors are Sydney resident Garrick
Hawkins and Singapore residents John Sheehy and Michael Sweeney,
Beef Central discloses.
Ceres is fully owned by Pegala Pty Ltd, and both companies share a
registered address on O'Connell Road at Oberon on the central
tablelands of NSW southeast of Bathurst, also home to the Hawkins
family's showcase Mayfield Gardens.
Sources have said Mr. Hawkins intended to retain involvement with
the Ceres' Oberon properties, Mayfield and Ballyroe, Beef Central
relays.
According to Beef Central, administrators Philip Campbell-Wilson
and Said Jahani from Grant Thornton Australia's Sydney office were
appointed on March 28 by the directors of Ceres Agricultural
Company, and they have said the development does not extend to any
related entities.
"While it is too early to confirm the factors which contributed to
the need for the company to appoint administrators, it is
understood that the company had been experiencing working
capital/cash flow issues in recent months," the report quotes Mr.
Campbell-Wilson as saying. "The drought, which has no doubt had an
impact on many farmers, has had an effect on the company."
Mr. Royle echoed those sentiments, the report notes.
"The combination of drought and expensive cattle and expensive
grain has made it very difficult," Beef Central quotes Mr. Royle as
saying. "The drought's been going harder and longer and wider than
we thought, and it's made it very tough for people feeding cattle
when they're aren't crops around."
Beef Central adds that Mr. Campbell-Wilson said animal welfare was
a key priority during the administration process.
"We are finalising arrangements in regards to the remaining 10,000
head of cattle on site which will enable the orderly finishing
process for those cattle."
Mr. Campbell-Wilson said the company being in administration would
result in further redundancies, following a number of employees
having been made redundant in recent months as the business has
scaled back.
Beef Central relates that the administrator said a small number of
employees may be engaged as part of the finishing process, and a
number of employees will be rehired by related entities.
"We are mindful that the closure of the company will have an impact
not only on employees but on the local communities and businesses
that were supported by the company."
"Our aim is to make the administration process as smooth as
possible for employees and stakeholders, and to provide support and
certainty around next steps."
Beef Central says the administrators will then conduct further
investigations into the affairs of the company and release a report
to creditors addressing their findings as to causes of the failure
of the company and provide a recommendation as to its future, which
may include entering a Deed of Company Arrangement should one be
proposed. A second meeting of creditors will then be held.
Ceres Agricultural Company operated one of Australia's largest
integrated cattle-finishing and cropping enterprises with the
capacity to finish up to 38,000 head of cattle at its peak, and
potential for further expansion.
CREO MEDIA: First Creditors' Meeting Set for April 8
----------------------------------------------------
A first meeting of the creditors in the proceedings of Creo Media
Pty Ltd will be held on April 8, 2019, at 11:00 a.m. at the offices
of SV Partners Sydney, at Level 7, 151 Castlereagh Street, in
Sydney, NSW.
Ian Purchas and Jason Porter of SV Partners were appointed as
administrators of Creo Media on March 29, 2019.
GRAND PRIX: Second Creditors' Meeting Set for April 9
-----------------------------------------------------
A second meeting of creditors in the proceedings of Grand Prix
Sailing Pty Ltd has been set for April 9, 2019, at 10:30 a.m. at
the offices of Worrells Solvency & Forensic Accountants, Suite 1,
Level 15, at 9 Castlereagh 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 April 8, 2019, at 4:00 p.m.
Simon John Cathro of Worrells Solvency & Forensic Accountants was
appointed as administrator of Grand Prix on March 5, 2019.
PLASTERMART (AUST): Second Creditors' Meeting Set for April 9
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Plastermart
(Aust) Pty. Ltd. has been set for April 9, 2019, at 11:30 a.m. at
the offices of Rodgers Reidy, at Level 3, 326 William Street, in
Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 8, 2019, at 4:00 p.m.
Brent Leigh Morgan and Neil Stewart McLean of Rodgers Reidy were
appointed as administrators of Plastermart (Aust) on March 14,
2019.
WITS HOLDINGS: First Creditors' Meeting Set for April 9
-------------------------------------------------------
A first meeting of the creditors in the proceedings of WITS
Holdings Pty Ltd, trading as Wadley's, will be held on April 9,
2019, at 10:30 a.m. at the offices of Karstens Melbourne, at 123
Queen Street, in Melbourne, Victoria and at Karstens Sydney, Level
1, 111 Harrington Street, in Sydney, NSW.
Ross Blakeley, Kate Warwick and Joseph Hansell of FTI Consulting
were appointed as administrators of WITS Holdings on March 28,
2019.
=========
I N D I A
=========
ADHARSHILA COUNTRY: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Adharshila Country Homes Private Limited
Plot No. 3142/A KH No. 74/7/1
Ground Floor Kashmiri Block Street
No. 6 Jain Nagar Tiranthak Nagar Karala
New Delhi North West DL 110081 IN
Insolvency Commencement Date: March 19, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 15, 2019
(180 days from commencement)
Insolvency professional: Sanjay Sahni
Interim Resolution
Professional: Sanjay Sahni
G-11/3, Ground Floor, Malviya Nagar
New Delhi 110017
E-mail: casanjaysahni@gmail.com
ip.adharshila@gmail.com
Last date for
submission of claims: April 2, 2019
AMTEK AUTO: Lenders Want Second Bidding After Liberty Backed Out
----------------------------------------------------------------
Livemint.com reports that lenders of Amtek Auto on March 28 sought
permission from the National Company Law Appellate Tribunal (NCLAT)
to conduct a second round of bidding for the debt-ridden auto
component maker after the highest bidder UK-based Liberty House
backed out.
Livemint relates that the Committee of Creditors (CoC) led by
Corporation Bank informed NCLAT that the second highest bidder
Deccan Value Investors LP is also considering to submit a revised
offer.
However, an NCLAT bench headed by Chairman Justice S J Mukhopadhaya
said it would like to hear Deccan Value Investors and Amtek Auto's
former promoters on the matter, the report says.
NCLAT listed the matter for next hearing on April 22 and said "CoC
would not approve any other plan" in between, Livemint discloses.
It also said the Resolution Professional (RP) will continue to
function and would "ensure that the company remains a going
concern."
According to Livemint, reports said Deccan Value Investors, which
had emerged as the second highest resolution applicant for Amtek
Auto, had placed a bid of INR3,150 crore.
Amtek Auto has a total debt of INR12,603 crore and the liquidation
value of its assets was determined at INR4,119 crore, Livemint
discloses.
Livemint notes that Liberty House had offered INR4,025 crore,
including upfront payment of INR3,225 crore and a fresh infusion of
INR500 crore for stabilising and improving operations. However,
Liberty House backed out of the process.
Earlier last month, NCLAT had allowed the withdrawal of Liberty
House's bid for ARGL, an Amtek subsidiary, Livemint recalls.
Amtek is an integrated auto component manufacturer with operations
across forging, iron and aluminium casting, machining and
sub-assemblies. In July 2017, NCLT had admitted insolvency
proceedings initiated by a consortium of banks led by Corporation
Bank.
Based in India, Amtek Auto Limited (BOM:520077) --
http://www.amtek.com/aal.php -- engages in automotive components
manufacturing and commercial sales. The Company is engaged in
forging, grey and ductile iron casting, gravity and high pressure
aluminum die casting and machining and sub-assembly. It has a
product portfolio with a range of engineered components,
including flywheel ring gears, machining, forging, casting
aluminum and casting iron. The Company supplies components for
passenger cars, light and heavy commercial vehicles, 2/3
wheelers, light weight commercial vehicles and heavy weight
commercial vehicles. The Company has facilities across India, the
United Kingdom, Germany, Brazil, Italy, Mexico, Hungary and the
United States. The Company also manufactures components for non-
auto sectors, such as the railways, specialty vehicles,
aerospace, agricultural and heavy earth moving equipment.
APPLE INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Apple Industries Limited
Registered office:
Unit No. 701-A, 7th Floor GD-ITL Tower
Plot No. B-8, Netaji Subhash Place
Pitampura, North West DL 110034 India
Corporate office:
B-16, Sector-2
Noida 201301, Uttar Pradesh
Works address:
D-Hirehal, Distt. Anantapur
Andhra Pradesh 515872
Insolvency Commencement Date: March 12, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 8, 2019
Insolvency professional: Ajay Gupta
Interim Resolution
Professional: Ajay Gupta
7-A, Sidhartha Extension, Pocket-B
New Delhi 110014
E-mail: ajaygupta1969@gmail.com
- and -
Flat No. 1004, Aspire 2
Supertech Emerald Court
9th Floor, Sector-93A
Noida 201304
E-mail: irp.appleindustries@gmail.com
Last date for
submission of claims: March 29, 2019
BRYS HOTELS: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Brys Hotel Private Limited
Registered Office as per ROC Company Master Data:
305, Arunachal Building
19-Barakhamba Road, Connaught Place
New Delhi 110001
India
Insolvency Commencement Date: March 18, 2019
Court: National Company Law Tribunal, Principal Bench
Estimated date of closure of
insolvency resolution process: September 14, 2019
(180 days from commencement)
Insolvency professional: Mr. Sandeep Goel
Interim Resolution
Professional: Mr. Sandeep Goel
410, Pratap Bhawan
5, Bahadur Shah Zafar Marg
New Delhi 110002
E-mail: cmasandeepgoel@gmail.com
- and -
Primus Insolvency Resolution and
Valuation Pvt. Ltd.
311, Bestech Chambers, B Block
Sushant Lok Phase I
Sector 27, Gurgaon
Haryana 122002
E-mail: bryshotels@primusresolutions.in
Last date for
submission of claims: April 1, 2019
CHENNAI CNC: CRISIL Withdraws B+ Rating on INR10cr Loans
--------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Chennai Cnc Servotronics
Private Limited (CCSPL) to 'CRISIL B+/Stable/Issuer not
cooperating'. CRISIL has withdrawn its rating on bank facility of
CCSPL following a request from the company and on receipt of a 'no
dues certificate' from the banker. Consequently, CRISIL is
migrating the ratings on bank facilities of CCSPL from 'CRISIL
B+/Stable/Issuer Not Cooperating to 'CRISIL B+/Stable'. The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B+/Stable/Issuer Not
Cooperating (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Long Term Loan 6.5 CRISIL B+/Stable/Issuer Not
Cooperating (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating
Withdrawn)
CCSPL, incorporated in 1997, manufactures CNC machining components.
The company is promoted by Mr D Subramanian. Its manufacturing unit
is in Chennai.
FLORESSENCE PERFUMES: CARE Lowers Ratings on INR17.60cr Loans to D
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Floressence Perfumes Private Limited (FPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.10 CARE D Revised from CARE B+;
Facilities Stable
Short term 0.50 CARE D Revised from CARE A4
Bank Facilities
Long/Short Term 9.00 CARE D Revised from CARE B+;
Bank Facilities Stable/CARE A4
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the rating of FPPL
and in line with the extant SEBI guidelines, CARE revised the
rating of bank facilities of the company to 'CARE B+; Stable/CARE
A4; ISSUER NOT COOPERATING*'. However, the company has now
submitted the requisite information to CARE. CARE has carried out a
full review of the rating and the rating stands at 'CARE D'.
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of FPPL
factors in the ongoing delays in servicing of debt obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing obligations: As per banker interaction and
term loan statements, there are delays in servicing debt obligation
in the term loan facility.
FPPL, incorporated in August 2005, is a private limited company and
is currently being managed by Dubai based Sayani family. FPPL is
100% Export oriented unit (EOU) of Natural Fragrance (NF) which is
a Dubai based LLC (Limited Liability Company). FPPL is engaged into
manufacturing of perfumes, deodorants and roll-ons from its owned
manufacturing facility located at Daravali ,TalukaMulshi, Pune,
Maharashtra spread across 6 acres. The company markets its products
the same under brand names 'Rio' Collection, Echo-Orbit, 'Bravo'
etc.
GANCO ENERGY: CARE Lowers Rating on INR10cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ganco Energy (India) Private Limited (GEIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Revised from CARE B+; Stable;
Issuer not cooperating
Detailed Rationale & Key Rating Drivers
CARE has conducted the review on the basics of best available
information and had classified GEIPL as 'Non Cooperating' vide its
press release dated October 22, 2018 furthermore, CARE's rating on
Ganco Energy (India) Private Limited bank facilities will now be
denoted as CARE D; Issuer Not Cooperating. The rating has been
revised on account of ongoing delays in debt serving by the
company.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
Key rating Weaknesses
Ongoing delays in meeting of debt obligations: Ganco Energy India
Private Limited has been facing liquidity issues from past few
months, due to which the firm is unable to service the interest and
installment obligation on term loan facility and cash credit. There
are ongoing delays in servicing the interest and installment in
term loan facility and cash credit.
Key Rating Strengths
Experienced promoters and management team: GEIPL is promoted by Mr.
G Appala Naidu, who is a B.A. graduate and has 4 years of
experience in solar off grid projects. Further, Mr. G Appala Naidu
also has experience of more than a decade in real estate sector and
has executed projects like; Sukhibhava Real Estate Private Limited,
Vishakhapatnam. Another promoter, Mrs. G Chinni Kumarilakshmi, has
completed her Master of Arts. She is Director of GEIPL and will
also be handling the Administrative Department.
Mr. G Vishnu Murthy, the Technical Director of the company, is
having more than 22 years of experience in solar business and has
undertaken various projects such as; installation of solar power
plant, operations and management of the same, installation of solar
module manufacturing units etc. Furthermore, Deputy General Manager
of the company, Mr. Jaya Krishna is a B. Tech graduate having 16
years of experience in solar module manufacturing. During his
tenure of 16 years, he has handled technical departments of various
companies related with solar module manufacturing such as; Solar
SemiConductor Private Limited, Hyderabad (4 years), Titan Energy
Systems Limited, Hyderabad (4 years), Photon Energy Systems
Limited, Hyderabad (4 years) and Kohima Energy Private Limited,
Hyderabad (4 years). He is currently looking after 5 departments of
the company namely; Research and Development, Production, Design,
Quality Control and Vendor Qualification. GEIPL is expected to
benefit from the experience of the technical staff.
Ganco Energy India Private Limited (GEIPL) was incorporated in the
year 2014 and promoted by Mr. G. Appala Naidu and Mrs. G Chinni
Kumarilakshmi. GEIPL proposes to install 60 MW automatic Solar
Photovoltaic (SPV) module manufacturing line at Bhemunipatnam,
Visakhapatnam. The Scheduled Commercial Operational Date (SCOD) of
the project is expected to be on October 01, 2017. The estimated
project cost is around INR12.69 crore, which is proposed to be
financed in a debt-equity ratio of 1.92:1 (approx.) (excluding
unsecured loans) with INR7.65 crore of long term loan and the
balance of INR5.04 crore (INR4.35 crore as equity share capital and
INR0.69 crore as unsecured loan) as promoter's contribution.
HGP CARS: CRISIL Withdraws B+ Ratings on INR13.5cr Loans
--------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of HGP Cars
Private Limited (HGPCL) 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 3 CRISIL B+/Stable (Withdrawn)
Inventory Funding
Facility 10 CRISIL B+/Stable (Withdrawn)
Proposed Long Term
Bank Loan Facility 0.5 CRISIL B+/Stable (Withdrawn)
CRISIL has been consistently following up with HGPCL for obtaining
information through letters and emails dated March 7, 2019 and
March 12, 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 HGPCL. 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 HGPCL 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 HGPCL to 'CRISIL
B+/Stable Issuer not cooperating'.
Incorporated in 2012, HGPCL is promoted by Mr Manmohan Singh, Mr
Satwant Singh, Mr Ravinder Singh, Mr Gagandeep Singh, and Mr
Harpreet Singh. The promoters were previously in the used cars and
brokerage businesses. The company is the authorised exclusive
dealer for passenger vehicles of Renault India in Kanpur, where it
has four showrooms and two dedicated service centres.
JAISWAL TRADING: CARE Assigns B+ Rating to INR6.0cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Jaiswal
Trading Company (Bhikangaon) (JTCB), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.00 CARE B+; Stable Assigned
Detailed Rationale & Key rating Drivers
The rating assigned to the bank facilities of JTCB is primarily
constrained on account of its financial risk profile marked by
modest scale of operation with thin profitability margins, weak
solvency position and stressed liquidity position. The rating,
further, constrained on account of its presence in the highly
fragmented and competitive cotton industry and operating margins
are susceptible to cotton prices fluctuation.
The rating, however, derives strength from experienced management
and strategically located in the cotton growing region.
The ability of the firm to increase its scale of operations while
improvement of profitability margins and efficient management of
working capital would be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weakness
Modest scale of operation with moderate profit margin: JTCB is
engaged into trading of cotton seeds oil, oil cake and cotton bales
etc. JTCB business is seasonal in nature hence the scale of
operations are seasonal driven. TOI of JTCB stood modest at
INR24.58 crore in FY18 (vis-à-vis INR24.59 crore in FY17).
Further, the profitability of the firm stood thin with PBILDT and
PAT margin of 2.65% and 0.26% respectively in
FY18.
Weak solvency position and stressed liquidity position: The capital
structure stood leveraged with an overall gearing of 7.01 times as
on March 31, 2018. Further, debt coverage indicators stood weak
with total debt to GCA of 96.72 as on March 31, 2018 and interest
coverage stood at 1.11 times during FY18.
Further, liquidity position of the firm stood stressed with 100%
utilization of working capital bank borrowings in last twelve
months ended Feb 2019. The liquidity ratios stood moderate with
current ratio and quick ratio of 1.12 times and 0.15 times
respectively as on March 31, 2018 (vis-à-vis 1.16 times and 0.07
times during FY17) owing to increase in short term debt and
inventory holding period. It has cash and bank balance of INR0.02
crore as on March 31, 2018.
Operating margins are susceptible to cotton prices fluctuation and
seasonality associated with cotton: Being an agro commodity, cotton
is highly seasonal in nature. Prices of raw cotton are highly
volatile in nature and depend upon various factors such as area
under production, yield for the year, international demand supply
scenario, export quota decided by the government and inventory
carry forward of last year. Further, due to the seasonality, firm
usually have to procure the materials in significantly higher
volumes, resulting in long inventory holding period. Thus,
aggregate effect of above factors results in exposure of JTCB to
price volatility risk.
Presence in highly fragmented industry: The firm is engaged into
trading of cotton which involves very limited value addition and
hence results in thin profitability. Moreover, on account of large
number of units operating in cotton trading business, the
competition within the players remains very high resulting in high
fragmentation and further restricts the profitability. Thus, cotton
traders have very low bargaining power against its customer as well
as suppliers.
Key Rating Strengths
Experienced Proprietor: JTCB is proprietorship firm established in
2012 by Mr. Amit Jaiswal. JTCB is engaged into trading of cotton
products viz. cotton, cotton seed oil, oil cake and cotton bales
etc. Mr. Amit Jaiswal has about a decade experience into cotton
industries which have helped JTCB to generate sizable income to the
firm.
Strategically located in the cotton growing region: Gujarat,
Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh and Tamil Nadu
are the major cotton producers in India. JTCB is located in one of
the cotton producing belt of Madhya Pradesh in India. The presence
of JTCB in cotton bales trading region results in benefit derived
from lower logistics expenditure (both on transportation and
storage), easy availability and procurement of raw materials at
effective price.
Jaiswal Trading Company (Bhikangaon) (JTCB) is a proprietorship
firm formed in 2012 by Mr. Amit Jaiswal. JTCB is engaged into
trading of cotton products viz. cotton, cotton seed oil, oil cake
and cotton bales etc.
JET AIRWAYS: Misses $109MM Loan Payment to HSBC, Sources Say
------------------------------------------------------------
Saloni Shukla at Bloomberg News reports that Jet Airways India Ltd.
missed a $109 million loan repayment due to HSBC Bank this week,
people with knowledge of the matter said.
The money was due on March 28, and was part of a two-tranche
facility totaling $140 million that the company took from HSBC in
2014, according to the people, who asked not to be identified
because the details are private, Bloomberg relates. Jet had also
missed payment on the other $31 million tranche that was due on
March 11, and hasn't repaid any of the loan, the people said.
That adds to a string of missed deadlines at the Indian carrier,
which has grounded about two-thirds of its fleet. The company's
credit rating was cut to default in January after it failed to
honor obligations to India lenders, the report says.
Bloomberg notes that the fate of the debt-laden airline, which has
struggled to keep up with a slew of budget carriers, is crucial for
India's government. Its collapse could put about 23,000 jobs at
risk and dent Prime Minister Narendra Modi's image ahead of his
re-election bid.
Lenders committed this month to infuse as much as INR15 billion
(US$217 million) in emergency debt funding, conditional on the
resignation of Jet Chairman Naresh Goyal, Bloomberg says. The
former ticketing agent who went on to build one of India's biggest
airlines stepped down under pressure this week.
The company had said in an exchange filing that repayment on an
external commercial borrowing that was due on March 28 "has been
delayed owing to temporary liquidity constraints and the company
has engaged with the lender in relation to the same," though it
didn't give details. Jet had said on March 11 that it had delayed
payment on an external commercial borrowing due that day, without
elaborating.
According to Bloomberg, Indian lenders who now hold more than 50
percent of Jet Air are seeking to overhaul the company and salvage
the carrier that needs an estimated INR85 billion to get back on
its feet.
As the airline misses more debt repayments, lenders are staring
down more pain. Rajnish Kumar, chairman of State Bank of India,
which is leading the lenders' plan, has said he expects to get a
new investor in Jet by May 31, the report adds.
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 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.
KANSAL BUILDING: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Kansal Building Solutions Private Limited
509/5, Maa Anand Mai Marg Govindpuri
New Delhi 110019
Insolvency Commencement Date: March 25, 2019
Court: National Company Law Tribunal, Principal Bench, New Delhi
Estimated date of closure of
insolvency resolution process: September 20, 2019
Insolvency professional: Mr. Alok Kumar Agarwal
Interim Resolution
Professional: Mr. Alok Kumar Agarwal
605, Suncity Business Tower
Golf Course Road
Sector 54, Gurgaon
Haryana 122002
E-mail: alok@insolvencyservices.in
- and -
C-100, Sector-2, Noida
Uttar Pradesh 201301
E-mail: kasnal@ascgroup.in
Last date for
submission of claims: April 8, 2019
L R AUTOMOBILES: CRISIL Withdraws B+ Ratings on INR22cr Loans
-------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of L R
Automobiles (LRA) 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 7 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
Electronic Dealer 15 CRISIL B+/Stable (ISSUER NOT
Financing Scheme COOPERATING; Migrated from
(e-DFS) 'CRISIL B+/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with LRA for obtaining
information through letters and emails dated March 7, 2019 and
March 12, 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 LRA. 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 LRA 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 LRA to 'CRISIL
B+/Stable Issuer not cooperating'.
LRA has been set up by Mr Krishan Kumar Miglani and Renuka Miglani.
The firm is an authorised dealer of Hyundai's vehicles in Haryana.
MAA SARBAMANGALA: CARE Lowers Rating on INR7.13cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Maa Sarbamangala Udyog (MSU), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.13 CARE D Revised from CARE B;
Facilities Stable; ISSUER NOT COOPERATING
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of MSU
takes into account the ongoing delay in debt servicing of the
entity.
Going forward, the ability of MSU to serve its debt obligation in
timely manner will be the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delay in debt servicing: There are on-going delays in
servicing of debt obligations of the entity due to non-generation
of revenue owing to shut down of its plant owing to devastating
fire occurred on August 26, 2018. Currently, the cash credit
account is overdrawn and irregular for more than 60 days.
Maa Sarbamangala Udyog (MSU) was established in May 2012 by Mr.
Brajagopal Ghoshal based out of Medinipur, West Bengal. Since its
inception, the firm has been engaged in processing of cashew nuts
at its plant located at Medinipur, West Bengal which has a
processing capacity of 20 metric tonnes raw cashew nuts per day.
The firm is also engaged in trading of paddy and rice which
accounted for around 7.34% of total sales in FY18.
The plant was satisfactory operational till August 25, 2018;
however, the plant of the firm completely destroyed due to
devastating fire occurred on August 26, 2018. The entire plant &
machinery and almost entire stock have been destroyed. The forensic
inspection has been conducted by the National Insurance Company
Limited and the same is reported to be satisfactory. The final and
preliminary surveyor report has been done by the empanelled
surveyor of the insurance company and the same has been deposited
to the insurance company. The entity expected to settle the
insurance claim of INR7.98 crore within this month i.e. March
2019.
Comment on liquidity position: The liquidity position of the entity
was stressed as reflected by its high utilisation of working
capital limit and also current ratio was low at 1.14x as on March
31, 2018. Currently, the entity is into default owing to shut down
of its plat owing to devastating fire incident occurred on August
26, 2018.
ORANGE CITY: CARE Lowers Rating on INR211.46cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Orange City Water Private Limited (OCWPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 211.46 CARE D Revised from
Facilities CARE BB-; (Under Credit
Watch with Negative
Implications)
Short Term 15.00 CARE D Revised from CARE A4;
Bank Facilities (Under Credit Watch with
Negative Implications)
Detailed Rationale & Key Rating Drivers
The revision in the ratings to the bank facilities of OCWPL is on
account of ongoing delays in servicing of debt obligations as per
stipulated terms. Timely repayment of debt going forward is the key
rating sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: There are ongoing delays in
servicing of debt obligations as per stipulated terms
Incorporated in the year March 2011, Orange City Water Private
Limited (OCWPL), is a special purpose vehicle (SPV) promoted by
Vishvaraj Environment Private Limited (wholly owned subsidiary of
Vishvaraj Infrastructure Limited; and Veolia Water (India) Private
Limited (VWIPL, wholly owned subsidiary of Veolia Water AMI) for
implementing (24x7) potable water supply to the city of Nagpur on
build-operate-transfer (BOT) basis under Jawaharlal Nehru National
Urban renewal mission (JNNURM) scheme. OCWPL was floated with 50-50
equity participation by the promoters to undertake public private
partnership (PPP) contract with Nagpur Municipal Corporation (NMC)
and NMC's wholly owned subsidiary Nagpur Environment Services
Limited (NESL. OCWPL has been mandated by Nagpur Municipal
Corporation (NMC) through a Special Purpose Vehicle (SPV); Nagpur
Environment Services Limited (NESL), to deliver uninterrupted water
supply to Nagpur city. During the tenure of agreement, (i.e. 25
years ending 2037), the company has exclusive rights to operate,
maintain, refurbish water supply infrastructure owned by NMC, to
deliver water supply to Nagpur city and to collect corresponding
water charges on behalf of NMC.
P G MERCANTILE: CRISIL Maintains 'D' Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of P G Mercantile
Private Limited (PGMPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D/Issuer Not Cooperating
Foreign Exchange
Forward 3 CRISIL D/Issuer Not Cooperating
Letter of Credit 60 CRISIL D/Issuer Not Cooperating
Proposed Long Term
Bank Loan Facility 79.89 CRISIL D/Issuer Not Cooperating
Term Loan 23.61 CRISIL D/Issuer Not Cooperating
CRISIL has been consistently following up with PGMPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 PGMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PGMPL 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 PGMPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2003 and promoted by Mr. Prateek Gupta, PGMPL
primarily trades in ferrous and non-ferrous metals. The company
also has two windmills (one each in Maharashtra and Tamil Nadu)
with total capacity of 3.7 megawatt. Mr. Gupta is also the
vice-chairman of Ushdev International Ltd, which is in the same
business.
PHI LEARNING: CRISIL Keeps B on INR8cr Debt in Not Cooperating
--------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of PHI
Learning Private Limited (PHI) on the request of the company and
receipt of a no objection certificate from its bank. The rating
action is in line with CRISIL's policy on withdrawal of its ratings
on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 8 CRISIL B/Stable/Issuer Not
Overdraft Cooperating
facility
CRISIL has been consistently following up with PHI for obtaining
information through letters and emails dated October 22, 2018 and
November 28, 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 they are arrived at without any management
interaction and are 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 PHI. This restricts CRISIL's
ability to take a forward PHI 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 rating on bank facilities of PHI
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 1963, PHI is an academic publisher. The company is
promoted by Mr Asoke K Ghosh, and is based in New Delhi.
PNR INFRA: CRISIL Keeps B on INR10cr Loan in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of PNR Infra India
Private Limited (PNR) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL B+/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with PNR for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 PNR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PNR 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 PNR continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
PNR, was initially incorporated in the name of Nagarjuna Homes Pvt.
Ltd. in 1993 and subsequently changed its name to PNR Infra India
Private Limited in 2006. The company is promoted by Mr.P.Naga Raju
and is based in Hyderabad.
PRANAV CONSTRUCTION: CRISIL Maintains D Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Pranav Construction
Systems Private Limited (PCSPL) continues to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 16.22 CRISIL D/Issuer Not
Cooperating
Cash Credit 19.11 CRISIL D/Issuer Not
Cooperating
Export Packing
Credit 6.63 CRISIL D/Issuer Not
Cooperating
Funded Interest
Term Loan 6.08 CRISIL D/Issuer Not
Cooperating
Letter of Credit 3.00 CRISIL D/Issuer Not
Cooperating
Working Capital
Term Loan 21.49 CRISIL D/Issuer Not
Cooperating
CRISIL has been consistently following up with PCSPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 PCSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PCSPL 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 PCSPL continues to be '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.
Incorporated in 2003, PCSPL provides formwork, false work and
scaffolding which find application in construction/infrastructure
sector. The company has been set up by Mr. Sushil Sahani and its
manufacturing facilities are located at Kopar-Khairane and Badlapur
(both in Maharashtra).
RATHI FEEDS: CRISIL Maintains 'C' Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rathi Feeds India
Private Limited (RFPL; part of the Rathi group) continues to be
'CRISIL C Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.45 CRISIL C/Issuer Not
Cooperating
Proposed Long Term 3.75 CRISIL C/Issuer Not
Bank Loan Facility Cooperating
Term Loan 2.80 CRISIL C/Issuer Not
Cooperating
CRISIL has been consistently following up with RFPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 RFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RFPL 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 RFPL continues to be 'CRISIL C Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of RFPL, RHPL, and Gourav Poultries India
Pvt Ltd (GPPL). This is because the companies, collectively
referred to as the Rathi group are in the same line of business,
extend financial support to each other, and have a common
management.
About the Group
RHPL and GPPL are engaged in poultry breeding, hatching and
broiling, and RFPL in feed processing.
RHPL was set up in 2003 by the Haryana-based Mr. Krishan Rathi and
his family members as a hatchery-cum-broiler unit. It has day-old
chick breeder farms with capacity of 220,000 parent birds in Jind
Haryana).
GPPL, set up in 2012, also owns a hatchery-cum-broiler unit. It has
day-old chick breeder farms with capacity of 150,000 parent birds
in Jind.
RFPL was set up in 2008 and is a feed processing unit and meets the
group's feed requirements. The group internally consumes around 60
per cent of feed processed by RFPL and sells the balance in the
open market. Its feed processing capacity is 200 tonne per day.
RATHI HATCHERIES: CRISIL Maintains D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rathi Hatcheries
Private Limited (RHPL; part of the Rathi group) continues to be
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.55 CRISIL D/Issuer Not Cooperating
Proposed Long Term
Bank Loan Facility .95 CRISIL D/Issuer Not Cooperating
Term Loan 4.50 CRISIL D/Issuer Not Cooperating
CRISIL has been consistently following up with RHPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 RHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RHPL 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 RHPL continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of RHPL, Rathi Feeds India Pvt. Ltd. (RFPL)
and Gourav Poultries India Pvt Ltd (GPPL). This is because the
companies, collectively referred to as the Rathi group are in the
same line of business, extend financial support to each other, and
have a common management.
About the Group
RHPL and GPPL are engaged in poultry breeding, hatching and
broiling, and RFPL in feed processing.
RHPL was set up in 2003 by the Haryana-based Mr. Krishan Rathi and
his family members as a hatchery-cum-broiler unit. It has day-old
chick breeder farms with capacity of 220,000 parent birds in Jind
Haryana).
GPPL, set up in 2012, also owns a hatchery-cum-broiler unit. It has
day-old chick breeder farms with capacity of 150,000 parent birds
in Jind.
RFPL was set up in 2008 and is a feed processing unit and meets the
group's feed requirements. The group internally consumes around 60
per cent of feed processed by RFPL and sells the balance in the
open market. Its feed processing capacity is 200 tonne per day.
SARDAR JEWELLERS: CRISIL Maintains B- Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sardar Jewellers (SJ)
continues to be 'CRISIL B-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B-/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with SJ for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SJ, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SJ 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 SJ 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.
SJ was set up in fiscal 2011, as a partnership firm, by Mr Surinder
Singh and his family. The firm sells gold and diamond-studded
jewellery at its showroom in Ludhiana (Punjab).
SAVVY INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Savvy Industries (SI)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.6 CRISIL B/Stable/Issuer Not
Cooperating
Long Term Loan 2.58 CRISIL B/Stable/Issuer Not
Cooperating
Proposed Long Term
Bank Loan Facility 4.32 CRISIL B/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with SI for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SI 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 SI continues to be 'CRISIL B/Stable Issuer not
cooperating'.
SI, a partnership concern set up in 2014, manufactures narrow woven
elastics for industrial and household use. It commenced commercial
operations in September, 2015. The firm has a unit at Sansawadi in
Pune, Maharashtra. Mr Rajesh Jain, Mr Gaurav Jain, Mr Rishabh Jain,
Ms Namita Jain, and Ms Anuradha Jain are partners in the firm. They
have been trading in narrow woven fabrics for several years through
other firms. SI's operations are primarily managed by Mr. Gaurav
Jai.
SHAH AGRI: CARE Assigns B+ Rating to INR15cr LT Loan
----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shah
Agri Impex Private Limited (SAIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
facilities 15.00 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SAIPL is primarily
constrained by price volatility in traded goods of grains products,
inherent cyclicality, highly fragmented and regulated industry,
along with working capital intensive nature of operations of the
group, weak capital structure & low debt coverage indicators.
Rating however derives strength from resourceful promoters, long
track record of business and established relations with the
suppliers and customers and moderate scale of operations of the
group.
The ability of the group to improve profitability margins, capital
structure and debt coverage indicators along with efficient
management of working capital requirement.
Detailed description of the key rating drivers
Key Rating Strengths
Established track record and experienced management: Mr. Dilip
Shantilal Shah is the key promoter having veteran experience of
three decades in the trading business based out in Nagpur,
Maharashtra. SAIPL, promoter are engaged in food grain trading &
milling through proprietorship concerns, namely “Shah Pulse Mill
(SPM). The group derives benefit from already established business
since 1988.
Moderate scale of operations: The total operation income of the
group improved and stood at INR524.95 crore in FY18 as against
INR427.77 crore in FY17 on account on increase in prices of toor
dal & gram prices.
Established relations with customer & suppliers: The main raw
materials for the unit are agriculture product Tuar, Chaana and
other pulses. Nagpur and surrounding area have good crop of Tuar,
Chana and other pulses and thus are easily available. SPM have good
client base as having long term relationship with the customers &
suppliers being in same business from last 3 decades. The top 10
customers of SAIPL contribute 32.35% of total sales of SAIPL in
FY18. Top 10 suppliers of SAIPL contribute 44.79% of total
purchases in FY18.
Key Rating Weaknesses
Exposure to price volatility in traded goods of food grain
products: Agro-based industry is characterized by its seasonality,
as it is dependent on the availability of raw materials, which
further varies with different harvesting periods. Availability and
prices of agro commodities are highly dependent on the climatic
conditions. Adverse climatic conditions can affect their
availability and lead to volatility in raw material prices. Gram &
toor are most fluctuating product. The peak procurement season is
during October to March during which the firm builds up raw
material inventory to cater to the milling and processing of pulse
throughout the year. PBILDT margin of the group during FY18 stood
at 15.51% as against 11.53% in FY17. However PAT remain constant
and stood at 1.68% in FY18.
Working Capital Intensive nature of operations: The operations of
the group are working capital intensive in nature. The operating
cycle of the group stood at 78 days in FY18 on account of higher
collection period. The collection period stood at 65 days in FY18
on account of delay in receipt of payments from customers, the
inventory holding period remained on comfortable side at 39 days in
FY18. Further, the group makes payment to its creditors in one
month on account of high collection period.
Weak Capital structure & low interest coverage indicator: The
capital structure of the group remained weak marked by overall
gearing stood at 9.85x as on March 31, 2018 as against 12.66x as on
March 31, 2017 on account of higher unsecured loan amounting to
INR55.42 crore in the book of Shah Pulse Mill and INR8.81 crore in
Shah Agri Impex private Limited. Unsecured loans are generally
taken by the group for working capital purpose. Furthermore the
interest coverage remained low at 1.28x for FY18 as against 1.27x
for FY17. The total debt to GCA stood at 49.18x in FY18 as against
52.05x in FY17.
Analytical approach: Combined
CARE has considered combined performance of the two entity namely
“Shah Pulse Mill” & Shah Agri Impex Private Limited.” The
shareholding of Shah Pulse Mill is completely owned by Mr. Dilip
Shantilal Shah as it is a proprietor entity. The shareholding of
“Shah Agri Impex Private Limited” is held by Mr. Dilip Shah,
and his wife Mrs. Manisha Shah and his daughter Ms. Khushboo Shah
holding of 81.66%, 9.17% & 9.17% respectively. Apart from common
promoters both the entities are engaged in trading & mill of agri
products & pulses and having significant inter firm transaction in
form of purchases, loans & advances. The management of both
companies is same.
Shah Agri Impex Private Limited (SAIP)L is incorporated in
October 11, 2012 by the well established promoter Mr. Dilip
Shantilal Shah. Mr. Dilip Shah and his family is in the business
from last three decades of Dall Milling & trading based out in
Nagpur, Maharashtra. SAIPL trades in pulses such as toor, moong,
peas apart from agro commodities like maize & soya, deoiled cakes
and also provides warehousing services for their storage. SAIPL is
having installed capacity of 8 tons per hour production capacity
based on orders received approximately 4-8 tons per hour and
storage capacity at factory premises is 750 tonnes and at warehouse
10,000 MT.
Shah Pulse Mill (SPM) established in 1988, as a proprietorship
concern by Mr. Dilip Shantilal Shah located in Nagpur, Maharashtra.
The firm is engaged in trading & processing of agricultural
products & pulses.
SHAH PULSE: CARE Assigns B+ Rating to INR50cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shah
Pulse Mill (SPM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 50.00 CARE B+; Stable Assigned
facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SPM is primarily
constrained by price volatility in traded goods of grains products,
inherent cyclicality, highly fragmented and regulated industry,
working capital intensive nature of operations of the group, weak
capital structure & low coverage indicators.
Rating however derives strength from resourceful promoters, long
track record of business and established relations with the
suppliers and customers and moderate scale of operations of the
group.
The ability of the firm to improve profitability margins, capital
structure and debt coverage indicators along with efficient
management of working capital requirement.
Detailed description of the key rating drivers
Key Rating Strengths
Established track record and experienced management: Mr. Dilip
Shantilal Shah is the key promoter having veteran experience of
three decades in the trading business. Mr. Dilip Shah is in the
business of Dall Milling & trading based out in Nagpur,
Maharashtra. SPM, promoter are engaged in food grain trading &
milling as a proprietorship concerns The traded goods are procures
locally from open market of Nagpur, and rest of Maharashtra and
from other states as well based on the best available pricing and
the entity sells in the domestic market.
Moderate scale of operations: The total operation income of the
group improved and stood at INR524.95 crore in FY18 as against
INR427.77 crore in FY17 on account on increase in prices of tuar
dal & gram. Established relations with customer & suppliers The
main raw materials for the unit are agriculture product Tuar,
Chaana and other pulses. Nagpur and surrounding area have good crop
of Tuar, Chana and other pulses and thus are easily available. SPM
have good client base as having long term relationship with the
customers & suppliers being in same business from last three
decades. The top 10 customers of SPM contribute 20% of total sales
of SPM in FY18. Top 10 suppliers of SPM contribute 36.26% of total
purchase in FY18.
Key Rating Weaknesses
Exposure to price volatility in traded goods of food grain
products: Agro-based industry is characterized by its seasonality,
as it is dependent on the availability of raw materials, which
further varies with different harvesting periods. Availability and
prices of agro commodities are highly dependent on the climatic
conditions. Adverse climatic conditions can affect their
availability and lead to volatility in raw material prices. Gram &
toor are most fluctuating product. The peak procurement season is
during October to March during which the firm builds up raw
material inventory to cater to the milling and processing of pulse
throughout the year. PBILDT margin of the group during FY18 stood
at 15.51% as against 11.53% in FY17. However PAT remain constant
and stood at 1.68% in FY18.
Working Capital Intensive nature of operations: The operations of
the group are working capital intensive in nature. The operating
cycle of the group stood at 78 days in FY18 on account of higher
collection period. The collection period stood at 65 days in FY18
on account of delay in receipt of payments from customers, the
inventory holding period remained on comfortable side at 39 days in
FY18. Further, the group makes payment to its creditors in one
month on account of high collection period.
Weak Capital structure & low interest coverage indicator: The
capital structure of the group remained weak marked by overall
gearing stood at 9.85x as on March 31, 2018 as against 12.66x as on
March 31, 2017 on account of higher unsecured loan amounting to INR
55.42 crore in the book of Shah Pulse Mill and INR 8.81 crore in
Shah Agri Impex private Limited. Unsecured loans are generally
taken by the group for working capital purpose. Furthermore the
interest coverage remained low at 1.28x for FY18 as against 1.27x
for FY17. The total debt to GCA stood at 49.18x in FY18 as against
52.05x in FY17.
CARE has considered combined performance of the two entity namely
“Shah Pulse Mill” & Shah Agri Impex Private Limited.” The
shareholding of Shah Pulse Mill is completely owned by Mr. Dilip
Shantilal Shah as it is a proprietor entity. The shareholding of
“Shah Agri Impex Private Limited” is held by Mr. Dilip Shah,
and his wife Mrs. Manisha Shah and his daughter Ms. Khushboo Shah
holding of 81.66% ,9.17% & 9.17% respectively. Apart from common
promoters both the entities are engaged in trading & mill of agri
products & pulses and having significant inter firm transaction in
form of purchases, loans & advances. The management of both
companies is same.
Shah Pulse Mill (SPM) established in 1988, as a proprietorship
concern by Mr. Dilip Shantilal Shah located in Nagpur, Maharashtra.
The firm is engaged in trading & processing of agricultural
products & pulses. SPM undertake the process of milling that
includes cleaning & grading, pitting, pre milling treatments,
tempering, drying, dehusking and splitting, & polishing of grains
to make it as finished agri products. SPM is having installed
capacity of 4 tons per hour , production capacity based on orders
received approximately 2-3 tons per hour and storage capacity at
factory premises is 300 tonnes and at warehouse 10,000 MT. ; Shah
Agri Impex Private Limited (SAIPL) is incorporated in October 11,
2012 by the well established promoter Mr. Dilip Shantilal Shah.
SAIPL is also in the same line of business.
SHAKTI BASMATI: CRISIL Maintains 'D' Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shakti Basmati Rice
Private Limited (SBRPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 67 CRISIL D/Issuer Not Cooperating
Foreign Exchange
Forward 0.52 CRISIL D/Issuer Not Cooperating
Term Loan 0.48 CRISIL D/Issuer Not Cooperating
CRISIL has been consistently following up with SBRPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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
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 SBRPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SBRPL 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 SBRPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2011, SBRPL is promoted by Mr. Shyam Lal Gupta and
family. It mills, processes, and sells basmati rice in the domestic
and export markets.
SHREE RAM: CARE Migrates B+ Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Shree
Ram Agro India (SRA) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.18 CARE B+; Stable; Issuer not
Facilities cooperating; Based on Best
Available Information
Detailed Rationale and key rating drivers
CARE has been seeking information from SRA to monitor the rating(s)
vide e-mail communications/letters dated February 11, 2019,
February 9, 2019, February 8, 2019, February 6, 2019, February 4,
2019, January 24, 2019 etc. and numerous phone calls. However,
despite our repeated requests, the firm has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on Shree
Ram Agro India's bank facilities will now be denoted as CARE B+;
Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on November 30, 2017 the following were
the rating strengths and weaknesses:
Key Rating Strengths
Experienced partners: SRA is into manufacturing of pesticides,
fertilizers and disinfectants. The firm is currently being managed
by Mr. Satish Kumar and Mrs. Ritu Gupta. Mr. Satish Kumar has an
industry experience of 16 years through his association with SRA,
Gitamani Laboratories Private Limited and previously through his
association with Gupta Fertilizers & Seeds Store (family run
business), established in 1997 and engaged in similar business.
Mrs. Ritu Gupta has an industry experience of 7 years through her
association with SRA solely. The industry experience aids in
establishing relationship with both suppliers and customers.
Furthermore, partners are supported by a team of qualified and
experienced employees having varied experience in technical,
finance and marketing aspects of business.
Positive Industry outlook: India Agrochemical market is Expected to
Grow by 14.5% in next 5 years with New Technical and Formulants
Pesticides Registrations. The pesticides market has been
significantly projected to grow in the next five years, reaching
revenue worth INR484.0 billion by FY'2020. This growth performance
has been primarily anticipated on account of increased
awareness amongst Indian farmers, rising product innovation and
declining prices of pesticides. The market for pesticides in short
run is likely to be influenced by research and development
activities being carried out in companies, emergence of new and
innovative pesticides as well as by declining prices due to
augmenting competition in the market. Hence, APL will be benefitted
by the industry outlook and hence the top line will experience a
boost.
Key Rating Weaknesses
Small scale of operations with low net-worth base and profitability
margins: The firm's scale of operations has remained small marked
by Total Operating Income (TOI) of INR28.46 crore in FY17 and
net-worth base of INR1.61 crore as on March 31, 2017. Additionally,
SRA's GCA was relatively small at INR0.39 crore for FY17. The small
scale limits the firm's financial flexibility in times of stress
and deprives it from scale benefits. Although, the TOI of the firm
increased from INR17.04 crore in FY15 to INR28.46 crore in FY17 on
account of increased sales volume, however, the same continues to
remain small. Furthermore, the profitability margins of the firm
stood low as reflected by PBILDT and PAT margin of 3.44% and 0.68%
respectively in FY17. PBILDT margin stood low and stable owing to
firm's presence in highly fragmented and competitive industry.
Further, high interest and depreciation costs resulted into below
unity PAT margin during last three financial years.
Leveraged capital structure: SRA has a leveraged capital structure
marked by overall gearing ratio of 5.45x as on March 31, 2017 on
account of high dependence upon borrowings and low net-worth base.
The overall gearing ratio deteriorated from 4.52x as on March 31,
2016 on account of infusion of additional unsecured loans in FY17
and higher utilization of working capital limits as on last balance
sheet date. Further, the total debt to GCA also stood weak at
22.51x for FY17. The same deteriorated from 14.42x for FY15 due to
increase in debt levels of the firm. However, interest coverage
ratio stood moderate at 1.66x in FY17 as compared to 1.86x in
FY16.
Elongated operating cycle: The operating cycle of the firm stood
elongated at 101 days for FY17 (PY: 92days). The firm maintains
inventory in the form of raw material and manufactured goods to
ensure its uninterrupted production activity and to meet customers'
demand on time which resulted in average inventory period of 79
days for FY17 (PY: 89days). The firm extends a
collection period of upto three and a half months to its customers
resulting into average collection period of 93 days for FY17 (PY:
96days). On the supplier side, the firm gets a similar credit
period from its suppliers. However, the same improved on y-o-y
basis due to timely payment to creditors to avail cash discount
resulting into credit period of 72 days for FY17. The average
utilization of the working capital limits remained fully utilized
for the last 12 months period ended October 2017.
Constitution of the entity being a partnership firm: SRA's
constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partner's capital at the
time of personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, partnership
firms have restricted access to external borrowing as the credit
worthiness of partners would be the key factors affecting credit
decision for the lenders. However, the partners infused capital of
INR0.39 crore in FY16-17.
Vulnerability to agro-climatic conditions: Agricultural production
is the key growth driver for demand of agro chemical products.
There are two main crop seasons in India: Kharif (July-October) and
Rabi (November-February). The agriculture production is in turn
dependent on agroclimatic conditions. Any unfavorable climatic
condition may impact the business of the company in terms of sales
and subsequently profitability.
Highly fragmented nature of industry coupled with intense
competition: The pesticides and fertilizer industry is marked by
heavy fragmentation with absence of any player having sizeable
market share in the domestic market. However, MNCs have focused on
developing patented molecule whereas the Indian players have
concentrated on marketing generic and off-patent products with
little expenditure on R&D. The intense competition and focus on
off-patent products leads to competitive pricing in the domestic
market.
Highly regulated industry: The pesticides and herbicides are toxic
and hazardous to mankind (as pesticide residue enter the food
chain) and the environment, the Government of India regulates the
manufacture, sale, transport, export/import etc., of pesticides
under the guidelines of the Insecticide Act, 1968. As per this act,
no pesticide is allowed for production/import without registration.
The Insecticide Act is enforced through two high powered bodies the
'Central Insecticides Board' and the 'Registration Committee' (RC).
Apart from recommending the registration for individual chemicals,
the Committee also lays down the details of packaging, labeling,
and approved quantity of use, restrictions and precautions. The
industry is also governed by The Ministry of Chemical and
Fertilizers, through Department of Chemicals and Petrochemicals,
which promotes production of pesticides. The Ministry of
Agriculture regulates and monitors the quality and supply of
pesticides in the country.
Shree Ram Agro India (SRA) was established in September 2009 as a
partnership firm having Mr. Satish Kumar and Mrs. Rita Gupta as its
partners sharing profit and loss equally. SRA is engaged in the
manufacturing of pesticides and fertilizers for agricultural use
and disinfectants for both agricultural and domestic use at its two
manufacturing facilities located in Karnal, Haryana with a total
installed capacity of manufacturing annum as on October 31, 2017.
The company had received necessary approvals including Ministry of
Environment & Forest, Haryana State Pollution control Board,
Central Insecticides Board etc.
The firm manufactures pesticides in the form of insecticides,
herbicides, fungicides & bio-pesticides; and different types
of fertilizers and disinfectants also. The firm derives substantial
portion of its income from sale of pesticides. The firm supplies
its products under brand name 'Shree Ram' to various dealers in
Haryana, Punjab, Uttar Pradesh, Maharashtra, Madhya Pradesh and
Rajasthan. SRA mainly requires various chemicals and solvents as
raw materials which are procured from local suppliers based in
Delhi and Haryana. The firm has a group concern by the name
Gitamani Laboratories Private Limited (CARE MSE 6), incorporated in
2013 and involved in the manufacturing of pesticides and
disinfectants.
SHRINE VAILANKANNI: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shrine Vailankanni
Senior Secondary School (SVSSS) continues to be 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12 CRISIL B+/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with SVSSS for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SVSSS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVSSS 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 SVSSS continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Established in 1964 as a part of Shrine Vailankanni Senior
Secondary School Society, Shrine Vailankanni is an unaided,
private, co-educational day school in Chennai that offers education
from pre-kindergarten-class XII. Shrine Vailankanni Senior
Secondary School Society also owns six-and-a-half floors of a
12-storey commercial building (Bascon Futura IT Park) at T Nagar in
Chennai that it leases out to corporates.
SOKHI STEELS: CRISIL Maintains D Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Sokhi Steels Pvt.
Ltd. (SSPL) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D/Issuer Not Cooperating
Term Loan 6 CRISIL D/Issuer Not Cooperating
CRISIL has been consistently following up with SSPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSPL 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 SSPL continues to be 'CRISIL D Issuer not
cooperating'.
SSPL was incorporated in 2011, promoted by Mr. Lakhbir Singh Sokhi,
Mr. Jagbir Singh Sokhi, and Mr. Sukhbir Singh Sokhi; it commenced
operations in fiscal 2014. The company manufactures SG iron, cast
iron, and steel products. It has a total furnace induction
capacity of about 750 tonne per annum at its plant in Ludhiana,
Punjab.
SONIC CERAMIC: CARE Lowers Ratings on INR21.84cr Loans to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sonic Ceramic Private Limited (SCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long- term Bank 20.84 CARE D Revised from CARE B+;
Facilities Stable
Short-term Bank 1.00 CARE D Revised from CARE A4
Facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of SCPL
is primarily due to ongoing irregularity in servicing its long term
debt obligations due to its weak liquidity position.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in Debt Servicing: There are on-going delays in repayments of
long term debt obligations owing to nascent stage of operations
coupled with intense competition in ceramic industry and lower
realization from debtors resulted in weak liquidity.
Morbi (Gujarat) based SCPL was incorporated in October 2007 as a
private limited company by six promoters to undertake a green field
project for manufacturing of wall tiles. SCPL recently completed
its project in Morbi (Gujarat) with installed capacity of 52800
Metric Tonnes of wall tiles Per Annum (MTPA). The total project
cost was INR28.20 crore and the project gearing stood at 2.10
times. The company has completed project and commenced operations
from April 2018 onwards. The promoters of the company have long
experience in the ceramic industry through their association which
are engaged in manufacturing of vitrified tiles, wall tiles and
floor tiles. These associate concerns of SCPL are Suzlon Ceramic,
Shubham Ceramic, Mega Vitrified Private Limited and Armano
Vitrified LLP.
SRI KRISHNA: CRISIL Maintains 'B+' Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Krishna Agro
Industries (SKAI) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL B+/Stable/Issuer Not
Cooperating
Long Term Loan 3.03 CRISIL B+/Stable/Issuer Not
Cooperating
Proposed Long Term 2.47 CRISIL B+/Stable/Issuer Not
Bank Loan Facility Cooperating
CRISIL has been consistently following up with SKAI for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SKAI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SKAI 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 SKAI continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Set up in 2001 as a partnership firm by Mr V Ramulu and his family
members, SKAI mills and processes paddy into rice, and generates
by-products such as broken rice, bran, and husk. Its milling unit
is in Nizamabad (Telangana).
STANDARD PAPER: CRISIL Keeps B on INR6cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Standard Paper And
Board India Private Limited (SPBIPL) continues to be 'CRISIL
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with SPBIPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SPBIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPBIPL 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 SPBIPL 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.
SPBIPL was established in 2010 and commenced operations in 2016; it
is promoted by Mr Yennarkey R Chiranjeevi Rathnam and his wife, Ms
Vijayalakshmi Chiranjeevi Rathnam, who also manage operations. The
company, based in Sivakasi, Tamil Nadu, is part of the Standard
group and trades in printer and copier paper.
SUDHIR FORGINGS: CRISIL Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sudhir Forgings
Private Limited (SFPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.44 CRISIL D/Issuer Not Cooperating
CRISIL has been consistently following up with SFPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SFPL 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 SFPL continues to be 'CRISIL D Issuer not
cooperating'.
SFPL was established in 1989, by Mr Dhruv Garg and his family,
based in Ludhiana. The company manufactures forged components,
mainly used in oil and gas transportation and automobile (auto)
components. It caters to domestic and overseas markets, and exports
flanges, mainly to customers, based in the US, apart from Germany,
Argentina, and Canada. Domestic clients include tier-I suppliers of
auto original equipment manufacturers (OEMs).
SWAMI HITECH: CRISIL Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Swami Hitech Projects
Limited (SHTPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable/Issuer Not
Cooperating
CRISIL has been consistently following up with SHTPL for obtaining
information through letters and emails dated August 31, 2018 and
February 14, 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 SHTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SHTPL 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 SHTPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 1997 as Swami Infratrade Ltd, SHTPL got its present
name in 2008. It is a closely held public limited company, trading
in building materials such as thermo-mechanically treated (TMT)
bars and other steel products, and cement. Small proportion revenue
also comes from civil construction. Currently, operations are
managed by Mr. Anil Mittal. The company began operations by trading
in shares, which it continued till fiscal 2008. In fiscal 2011, it
discontinued securities trading and commenced trading in building
material.
VARDHMAN ESTATES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Vardhman Estates and Developers Pvt Ltd
211, 2nd Floor, Shapuri Tirath Singh Tower
Plot No. 58, Block-C, Commmunity Centre
Janak Puri, New Delhi 110058
Insolvency Commencement Date: March 19, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 15, 2019
Insolvency professional: Satinder Kapur
Interim Resolution
Professional: Satinder Kapur
Suite No. 10, 1 Link Road
Jangpura Extension
New Delhi 110014
E-mail: satinderkapur@gmail.com
Last date for
submission of claims: April 2, 2019
WELWAYS ENGINEERS: CARE Assigns B Rating to INR2.90cr LT Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Welways
Engineers (India) (WEI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 2.90 CARE B; Stable Assigned
Short term Bank
Facilities 4.00 CARE A4 Assigned
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of WEI are constrained
by its small and declining scale of operations with low net worth
base and intense competition due to exposure to tender driven
nature of business. The ratings are further constrained by
partnership nature of constitution and competitive nature of
industry. However, the ratings derive strength from experienced
partners, moderate solvency position, profitability margins & order
book position and positive outlook for industry.
Going forward, the ability of the firm to successfully execute
projects in time and recover contract proceeds and scale up its
operations while maintaining its profitability margins and solvency
position would remain the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Strengths
Experienced partners: WEI is managed by Mr. Harpal Singh and Mr.
Mandeep Singh, having around five and a half decades and two and a
half decades of experience respectively. The partners have gained
this experience through their association with WEI and group
concern. The partners have adequate acumen about various aspects of
business. Additionally, the partners are supported by a team of
experienced and qualified professionals having varied experience in
the technical, finance and marketing fields.
Moderate solvency position and profitability margins: The capital
structure of the firm remained moderate marked by overall gearing
ratio of 0.90x as on March 31, 2018 mainly due to limited reliance
on external borrowings to fund business requirements. Further, the
debt coverage indicators of the firm remained moderate marked by
interest coverage ratio of 2.67x in FY18 and total debt to GCA
ratio of 6.23x for FY18. The profitability margins of the firm also
stood moderate marked by PBILDT margin and PAT margin of 5.06% and
2.67% respectively in FY18.
Moderate order book: The firm has a moderate order book position
with outstanding order book of approx. INR18.00 crore as on
November 14, 2018 to be executed within next 3-4 months. The
current order book of the firm is ~6.38x times of the revenue for
FY18. The order book of the firm comprises orders in relatively
early stages of execution, which provides sufficient visibility on
the revenue stream.
Key Rating Weaknesses
Small and declining scale of operations with low net-worth base
The scale of operations of the firm stood small marked by total
operating income of INR2.82 crore in FY18 (refers to the period
from April 1 to March 31) and net worth base of INR0.68 crore as on
March 31, 2018. Furthermore, gross cash accruals stood low at
INR0.10 crore in FY18. The small scale limits the firm's financial
flexibility in times of stress and deprives it of scale benefits.
Intense competition due to exposure to tender driven nature of
business: WEI's business is tender-based which is characterized by
intense competition resulting in fluctuating scale of operations.
The growth of business depends entirely upon the firm's ability to
successfully bid for tenders and emerge as the lowest bidder.
Therefore, the ability of the firm to secure new orders and its
successful execution within existing competition remains a
concern.
Constitution of the entity being a partnership firm: WEI's
constitution as a partnership firm has the inherent risk of
withdrawal of the partner's capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of partner(s).
Fragmented and competitive nature of the industry albeit improving
growth prospects: The solar industry as well as civil construction
industry is characterized as fragmented and highly competitive in
nature resulting in pricing pressure. The high level of competition
within the segment with the presence of organized and
unorganized players restricts the profitability margins. However,
industry growth prospects for solar energy sector seem to be
favorable in long term as India is a rapidly growing economy which
needs energy to meet its growth objectives in a sustainable manner.
After witnessing record capacity addition, the solar sector is on a
strong growth path, primarily on account of Government of India
(GOI's) thrust on significantly enhancing the installed solar
capacity to 100 GW by 2022. Also, the construction industry is
expected to grow, given huge economic significance associated with
it and rising investor interest.
Welways Engineers (India) (WEI) is a partnership firm established
in 1977. It is currently being managed by Mr. Harpal Singh and Mr.
Mandeep Singh sharing profits and losses equally. WEI is engaged in
providing civil construction services in Jalandhar (Punjab) and
Kapurthala (Punjab) which includes infrastructure development and
roads work. The firm also started providing EPC services in solar
system integration business w.e.f. April 2018. The firm is
registered as a class 'A' contractor with Military Engineers
Services (MES) of Jalandhar, Punjab (highest on a scale of A to E).
The orders undertaken by the firm are secured through the
competitive bidding process.
=================
S I N G A P O R E
=================
HYFLUX LTD: Restructuring Does Not Stop Any Probe, SIAS Chief Says
------------------------------------------------------------------
The Business Times reports that Securities Investors Association
(Singapore) chief David Gerald in his latest media statement on the
debt-ridden Hyflux Limited, attempted to correct some erroneous
views of investors of the water treatment company, as he pointed
out that current investigations, if any, would not be aborted just
because investors vote in favor for restructuring on April 5.
Mr. Gerald, who has written several open letters and opinion pieces
lately on the drama unfolding at the former market darling Hyflux,
sent another letter to The Business Times on April 1. He noted that
some Hyflux investors are of the view that investigations against
the board and management of the company would stop, and that would
absolve them of responsibility, if its restructuring scheme gets
the nod from investors, the report relates.
"SIAS is advised that this view is not correct. If there is any
investigation, currently, it will continue and it need not put the
company in liquidation for the investigation to take place," Mr.
Gerald wrote.
According to the investors' rights advocacy group, the
restructuring scheme only discharges the company, but not the
directors, the management, auditors or arrangers of the instruments
sold to Hyflux investors, says BT.
"There is nothing to stop the creditors from calling for an
investigation by the authorities or even by the new board of
directors to look at what the old board did."
He also reminded investors that the government has already made it
clear that it would not bail out Hyflux, even if the restructuring
scheme is voted down on April 5, BT relays. The government would,
instead, acquire the water desalination plant at Tuaspring at zero
dollars.
In urging all investors to turn up to vote, the founder and chief
executive of SIAS pointed out that the offer from Salim Group is
the only deal on the table, and investors could possibly recoup
their losses only if Hyflux does not go into liquidation - the
other outcome if restructuring is not supported by investors, BT
says.
BT adds that Mr. Gerald said: "It would be a shame should
liquidation take place, to see thousands of Singaporean employees
of Hyflux losing their jobs."
SIAS has published frequently asked questions to help investors
understand Hyflux's scheme of arrangement and its related issues,
the report notes.
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.
MIDAS HOLDINGS: Faces Liquidation as Rescue Deal Failed
-------------------------------------------------------
The Business Times reports that Midas Holdings will undergo
liquidation pending instructions from the courts after it failed to
get a rescue deal from Hong Kong-listed CRRC Corp.
In a Singapore Exchange filing on April 1, the aluminium train
components supplier reported an unaudited net liability position of
S$47.1 million at end-2018. The negative equity included S$81.1
million of net current liabilities and just S$4.1 million of
current assets, BT discloses.
According to the report, Midas said that on Sept. 26, 2018, court
documents indicated that Hong Kong-listed CRRC Corp has been
awarded the 12.44 per cent stake that belonged to former executive
chairman Chen Wei Ping. If transferred, those shares will make CRRC
the single largest shareholder of Midas.
However, "efforts to initiate a discussion with CRRC with a view to
rescuing the company was not successful", Midas said.
"In the meantime, many government agencies are pressing Midas to
file annual returns, file tax returns, hold (its annual general
meeting)," the company said.
"In the absence of a rescue and dwindling funds, Midas will be
unable to maintain its listing status" in Singapore and Hong Kong,
BT relays.
The report adds that the company also faces a statutory demand from
executive director Xu Wei Dong for unpaid salaries due to him.
According to BT, Midas said that because it "does not have funds to
contest this and other legal actions that other creditors may
decide to take", the company will be liquidated when ordered to by
the court.
Midas-guaranteed loans total CNY1.9 billion (US$383.4 million),
with the company disputing CNY779 million of those loans, the
report notes.
These guarantees are enforceable on Midas if the related loans
remained unpaid after payouts from the sale of pledge assets, the
report relates. As the payouts and asset sales will not occur soon,
the final amount due from Midas is unknown, and the uncertainty
makes a Midas rescue hard at this juncture.
Not included in the guaranteed loans were disputed guarantees
provided to individuals based on previously undisclosed loans
provided mainly by former chairman Mr. Chen without authorisation
from the board of directors, BT says.
Midas Subsidiaries
BT notes that Jilin Midas Aluminium Industries' (JMAI) judicial
manager Qiming will sell all of JMAI's business assets for about
CNY1.8 billion, which makes up about 13 per cent of the amount owed
to a total of 321 creditors.
Qiming also declared that Jilin Midas Investment (JMI), a 51 per
cent subsidiary of JMAI, has no assets and is "worth zero".
According to the report, Jilin Midas Light Alloy's (JMLA) judicial
manager Gongcheng has proposed to liquidate JMLA's assets after it
could not find interested buyers. Gongcheng does not expect
liquidation proceeds to exceed the amount owed to creditors.
The same goes for Luoyang Midas Aluminium Industries (LMAI),
another JMAI subsidiary. Its judicial managers Jianye and Xinda
will liquidate LMAI and make any surplus amount available to JMAI,
BT relates.
Dalian Huicheng Aluminium Industries' (DLHC) judicial manager had
until March 28 to restructure DLHC with interested buyers. Its
outstanding approved debt was about CNY1.6 billion, versus a cash
balance of about CNY390,000.
As all material assets have been pledged, it is unlikely to have
any net balance in a liquidation, the report notes. A creditor
meeting report noted that the financial accounts were improper and
off-balance sheet accounts were used to transfer funds.
Shanxi Wanshida Engineering Plastics' (SWEP) land and buildings
were pledged to Shanxi Rural Credit Cooperative for an undisclosed
CNY14 million loan. It also had a missing bank balance of over
CNY61 million.
Through a series of round tripping, the discrepancies in the cash
balance was disguised as a receivable from LMAI.
BT adds that Midas said it was also unaware that SWEP had a China
court order to repay another previously undisclosed CNY400,000, 3
per cent per month loan arranged by its legal representative Ma Min
Zhang. Midas said it does not know how the loan proceeds were used.
On the same day, the same Chinese court also froze SWEP's bank
account due to an ongoing labour dispute.
As the Chinese auditors for SWEP have changed many times between
2014 and 2017, its audited China accounts cannot be located and the
directors cannot file any police report, BT states.
According to BT, Midas had a 32.5 per cent share in associate
company CRRC Nanjing Puzhen Rail Transport (NPRT), and it was
pledged to noteholders of a medium-term note programme.
The notes have a principal value of US$60 million and their related
coupons are due. Midas said the pledge was not properly approved by
its board, and it is contesting the claim at the Hong Kong
International Arbitration Court. If validity of the pledge is
contested successfully, NPRT will still likely be sold and the
proceeds distributed pro rata among all accredited creditors of
Midas.
BT says Midas shares have been suspended since February 2018 when
the company discovered certain financial irregularities. In March
2018, the company's independent directors lodged a police report
with the the Singapore Police Force's Commercial Affairs
Department.
Singapore-based Midas Holdings Ltd. -- http://midas.com.sg/--
manufactures aluminium alloy extrusion products for the passenger
rail transport, power and other industries. The Company also
designs, manufactures and installs polyethylene pipes.
SWIBER HOLDINGS: Gets US$200MM Investment From NY-listed Seaspan
----------------------------------------------------------------
The Straits Times reports that Swiber Holdings announced on March
30 that New York-listed Canadian box ship owner Seaspan Corporation
will be investing up to US$200 million in the marine engineering
group, in what it says is a "significant step forward" in its
restructuring.
This shot in the arm for Swiber comes after over two years in
judicial management, the report relates.
Both Swiber and Seaspan said that in executing the investment
agreement, they have modified certain terms previously announced in
October 2018 when the parties signed a term sheet, the Straits
Times says.
Firstly, an initial investment tranche of US$10 million (previously
US$20 million) will be unlocked upon closing in exchange for an 80
per cent shareholding interest in a new holding company to be
incorporated into which certain assets of the existing Swiber Group
will be transferred, the report discloses.
Secondly, upon securing the development stage LNG-to-power project
in Vietnam and achieving major project milestones, a subsequent
tranche of US$190 million (previously US$180 million) will be used
to subscribe for preference shares in Swiber's wholly-owned
subsidiary, Equatoriale Energy, which will also form part of the
New Swiber group.
The Straits Times notes that the proposed investment by Seaspan is
subject to several conditions, including securing the necessary
approvals from creditors, regulators and shareholders.
If the restructuring is successful, certain secured creditors of
Swiber will be issued five-year zero coupon secured redeemable
convertible bonds amounting to US$120 million in New Swiber. This
will allow New Swiber and the restructured New Swiber group to
continue to operate the Swiber Group's key assets, which include
certain specialised construction vessels and its headquarters
building at 12 International Business Park, Singapore, which are
currently secured to such secured creditors, The Straits Times
relates.
The Straits Times notes that it is proposed that the unsecured
creditors of Swiber, existing shareholders and certain management
and professionals involved in the judicial management of Swiber
will receive new shares in New Swiber, which will constitute 14 per
cent, 3 per cent and 3 per cent shareholding interest, respectively
in New Swiber following completion of the initial investment.
The Straits Times says the secured creditors who will be issued the
bonds will, upon conversion of such bonds, be entitled to new
shares in New Swiber which will constitute 10 per cent of the
enlarged total issued shares of New Swiber, and on a fully diluted
basis, Seaspan's shareholding interest in New Swiber will be
reduced to 72 per cent.
The shareholding interests of the unsecured creditors of Swiber,
existing shareholders, and certain management and professionals
involved in the judicial management of Swiber will be reduced to
12.6 per cent, 2.7 per cent and 2.7 per cent, respectively, the
Straits Times discloses.
As part of the deal, Seaspan will be granted a call option to
acquire all the shares of Equatoriale Energy, which option will be
exercisable if the initial investment does not complete due to,
among others, the conditions not being fulfilled by the prescribed
long stop date.
According to the Straits Times, Judicial manager Bob Yap, who is
also head of restructuring at KPMG in Singapore, said that the
recent development is an "important milestone" to get Swiber on the
road to recovery and that they are "delighted" to work with a
company of Seaspan's reputation.
"There's still more work to be done and we believe this investment
by Seaspan will result in a better recovery to all stakeholders
compared to winding-up," the report quotes Mr. Yap as saying.
The judicial managers previously announced on Nov. 26, 2018, that
the Singapore High Court had granted an extension of time for a
creditors' meeting to be held by May 31, 2019, the report notes.
About Swiber Holdings
Swiber Holdings Limited (SGX:BGK) -- http://www.swiber.com/-- is
a Singapore-based investment holding company. The Company, through
its subsidiaries, is engaged in offshore marine engineering; vessel
owning and chartering, and provision of corporate services. The
Company is an integrated offshore construction and support services
provider for shallow water oil and gas field development. It offers
a range of engineering, procurement, installation and construction
(EPIC) services,
complemented by its in-house marine support and engineering
capabilities, to support the offshore field development and
production activities of its clientele base across the Asia
Pacific, Middle East, Latin America and West Africa regions. It
operates approximately 10 construction vessels. The Company's
subsidiaries include Swiber Offshore Construction Pte. Ltd., Swiber
Offshore Marine Pte. Ltd., Swiber Corporate Pte. Ltd.,
Resolute Offshore Pte. Ltd. and Swiber Capital Pte. Ltd.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
2, 2016, Reuters said Swiber Holdings Ltd has applied to place
itself under judicial management instead of liquidation. According
to Reuters, Swiber shocked markets in July 2016 by filing for
liquidation, as it faced hundreds of millions of dollars in debt
and a decline in orders, becoming the largest local company to fall
victim to the slump in oil prices.
Bob Yap Cheng Ghee, Tay Puay Cheng and Ong Pang Thye of KPMG
Services Pte Ltd. have been appointed as the joint and several
interim judicial managers of Swiber Holdings Limited and Swiber
Offshore Construction.
Swiber had $1.43 billion of liabilities and $1.99 billion of assets
on March 31, 2016, before it sought court protection in late July,
Bloomberg News reported citing the company's last published
accounts.
*********
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,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***