/raid1/www/Hosts/bankrupt/TCRAP_Public/190906.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
Friday, September 6, 2019, Vol. 22, No. 179
Headlines
A U S T R A L I A
CARDS (VIC): Second Creditors' Meeting Set for Sept. 13
DSYNC PTY: Second Creditors' Meeting Set for Sept. 13
OCTERPUS PTY: Second Creditors' Meeting Set for Sept. 13
SWITCH4 PTY: First Creditors' Meeting Set for Sept. 12
TFBOW PTY: Second Creditors' Meeting Set for Sept. 12
C H I N A
CEFC CHINA: Main Financing Unit Delisted From Shenzhen Bourse
ORIGIN AGRITECH: Regains Compliance With NASDAQ Listing Rules
[*] CHINA: Private Bond Defaults Rises to US$4.4BB This Year
I N D I A
AAKASH DEVELOPERS: Ind-Ra Lowers Long Term Issuer Rating to 'B+'
ABF ENGINEERING: CARE Keeps C on INR6.8cr Loans in Not Cooperating
ALFA ONE: CARE Keeps C on INR5cr Loans in Not Cooperating
ANIK INDUSTRIES: CARE Lowers Rating on INR65cr LT Loan to D
ASHIRWAD CORP: CARE Cuts Rating on INR20cr Loan to B+
BLOOM DEKOR: Ind-Ra Lowers Long Term Issuer Rating to 'D'
BTM EXPORTS: CARE Lowers Rating on INR40cr LT Loan to 'B'
CELEBRITY BREWERIES: Insolvency Resolution Process Case Summary
CLASSIC AND CONTINENTAL: Insolvency Resolution Case Summary
D.R. SHAH: Ind-Ra Affirms 'B+' LT Issuer Rating, Outlook Stable
EMCO LIMITED: Insolvency Resolution Process Case Summary
GALADA POWER: Insolvency Resolution Process Case Summary
GLOBAL TOWERS: Insolvency Resolution Process Case Summary
GOLDSTAR POLYMERS: CARE Moves D on INR7cr Debt to Not Cooperating
HANS RAJ: CARE Lowers Rating on INR19cr LT Loan to 'B+'
HI-CAN INDUSTRIES: CRISIL Withdraws B Ratings on INR16cr Loans
IMPS EDUCATIONAL: CRISIL Lowers Ratings on INR6.46cr Loans to D
ITM INFRA: Ind-Ra Lowers LT Issuer Rating to 'BB-', Outlook Stable
J AND B ENGINEERING: CRISIL Withdraws B- Rating on INR14cr Loan
JAI BHARAT: CARE Lowers Rating on INR25cr LT Loan to 'B'
JET AIRWAYS: Creditors to Recover Only 10% in Liquidation Scenario
JNANA BANDHU: CARE Keeps B on INR6.5cr Loans in Not Cooperating
KANOOVI FOODS: Insolvency Resolution Process Case Summary
LAKHANI FOOTWEAR: CRISIL Hikes Rating on INR59.31cr Loan to B-
LAKHANI RUBBER: CRISIL Raises Ratings on INR15.98cr Loan to B-
LAKHANI SHOES: CRISIL Hikes Rating on INR25cr Cash Loan to B-
LEUCO MICRONS: CRISIL Withdraws 'B+' Rating on INR4.5cr Loans
LOOCUST INCORP: Ind-Ra Lowers Long Term Issuer Rating to 'D'
M J HOME: CARE Assigns 'B' Rating to INR4.05cr LT Loan
MAA MUKTAKESHI: CRISIL Assigns 'B' Ratings to INR4.93cr Loans
ONEWORLD CREATIONS: CRISIL Moves D Ratings to Not Cooperating
ONEWORLD RETAIL: CRISIL Moves D on IN52cr Loans to Not Cooperating
PARAMOUNT TEXTILE: Ind-Ra Affirms Then Withdraws BB+ Issuer Rating
POLYBLEND COLOURS: CARE Lowers Rating on INR5.25cr LT Loan to B+
PRITHVI MULTIPURPOSE: Insolvency Resolution Process Case Summary
PRO EYETECH: Insolvency Resolution Process Case Summary
R. M. BETGERI: CARE Assigns B+ Rating to INR6.50cr LT Loan
RAMKRISHNA AGRO: CRISIL Assigns 'B' Rating to INR5.51cr Loans
RELIANCE NAVAL: Facing Cash Crunch Amid Debt Restructuring
SAHIL POLYPLAST: Ind-Ra Lowers Long Term Issuer Rating to 'D'
SARDA AGRO: Insolvency Resolution Process Case Summary
SECL INDUSTRIES: Ind-Ra Affirms 'D' Long Term Issuer Rating
SHREE KEDARNATH: Insolvency Resolution Process Case Summary
SOVEREIGN INDUSTRIES: Insolvency Resolution Process Case Summary
SRI RAM SPINNING: CRISIL Hikes Ratings on INR25cr Loans to B-
SRI SRINIVASA: CARE Reaffirms B+ Rating on INR12cr LT Loan
SUSTAINABLE AGRO-COMMERCIAL: Ind-Ra Lowers Bank Loan Rating to BB
VIDEOCON TELECOM: CARE Moves 'D' Rating to Not Cooperating
M A L A Y S I A
SCOMI GROUP: Submits PN17 Waiver Application to Bursa Malaysia
N E W Z E A L A N D
STANLEY GROUP: Shareholders Put Building Company Into Liquidation
TOWER CRANES: Crane Hire Company Placed in Receivership
S I N G A P O R E
INTER-PACIFIC GROUP: Deloitte Named as Interim Judicial Manager
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=================
A U S T R A L I A
=================
CARDS (VIC): Second Creditors' Meeting Set for Sept. 13
-------------------------------------------------------
A second meeting of creditors in the proceedings of Cards (VIC)
Pty. Ltd has been set for Sept. 13, 2019, at 10:00 a.m. at
Level 3, at 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 Sept. 11, 2019, at 5:00 p.m.
Brent Leigh Morgan of Rodgers Reidy was appointed as administrator
of Cards (VIC) on Aug. 9, 2019.
DSYNC PTY: Second Creditors' Meeting Set for Sept. 13
-----------------------------------------------------
A second meeting of creditors in the proceedings of DSYNC Pty Ltd
has been set for Sept. 13, 2019, at 10:00 a.m. at Level 27, at 259
George 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 Sept. 12, 2019, at 5:00 p.m.
Sule Arnautovic and Trent Andrew Devine of Jirsch Sutherland were
appointed as administrators of DSYNC Pty on July 9, 2019.
OCTERPUS PTY: Second Creditors' Meeting Set for Sept. 13
--------------------------------------------------------
A second meeting of creditors in the proceedings of Octerpus Pty
Limited has been set for Sept. 13, 2019, at 10:00 a.m. at Level 27,
259 George 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 Sept. 12, 2019, at 5:00 p.m.
Sule Arnautovic and Trent Andrew Devine of Jirsch Sutherland were
appointed as administrators of Octerpus Pty on July 9, 2019.
SWITCH4 PTY: First Creditors' Meeting Set for Sept. 12
------------------------------------------------------
A first meeting of the creditors in the proceedings of Switch4 Pty
Ltd will be held on Sept. 12, 2019, at 10:30 a.m. at the offices of
Worrells Solvency & Forensic Accountants, Suite 601B, Level 6, at
91 Phillip Street, in Parramatta, NSW.
Graeme Robert Beattie of Worrells Solvency was appointed as
administrator of Switch4 Pty on Sept. 2, 2019.
TFBOW PTY: Second Creditors' Meeting Set for Sept. 12
-----------------------------------------------------
A second meeting of creditors in the proceedings of TFBow Pty. Ltd.
has been set for Sept. 12, 2019, at 10:00 a.m. at the offices of SV
Partners, at 22 Market Street, in Brisbane, Queensland.
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 Sept. 11, 2019, at 4:00 p.m.
David Michael Stimpson of SV Partners was appointed as
administrator of TFBow Pty on Aug. 8, 2019.
=========
C H I N A
=========
CEFC CHINA: Main Financing Unit Delisted From Shenzhen Bourse
-------------------------------------------------------------
Qin Jie and Han Wei at Caixin Global report that the main financing
arm of China's embattled private conglomerate CEFC China Energy is
being delisted from the Shenzhen stock exchange after its stock
lost most of its value amid the parent's corruption scandal and
financial woes.
According to Caixin, Shenzhen-listed CEFC Anhui International
Holding Co. Ltd. will enter a 30-day delisting period starting
Sept. 30 after its stock traded below the face value of CNY1
(US$0.14) per share for 20 trading days in a row, the Shenzhen
stock exchange said Sept. 4 in a statement. The stock will then be
dropped from the exchange.
CEFC Anhui is the third company to be booted from the market
because of poor share price performance since China tightened stock
delisting rules last year, Caixin notes. The first two were
Shenzhen-listed developer Zhonghong Holdings Group and meat
processor Chuying Agro-Pastoral Group Co. Ltd.
Caixin says CEFC China is one of the private Chinese conglomerates
that spent several years amassing sprawling assets abroad through
debt-backed investments. But the company has been under regulatory
and financial pressure since founder Ye Jianming was placed under
investigation on suspicion of economic crimes last year.
CEFC Anhui's shares have been suspended since Aug. 19 when they
closed at CNY0.61. The stock traded below CNY1 for 20 consecutive
trading days between July 22 and Aug. 16, according to the Shenzhen
bourse, Caixin relays.
CEFC Anhui, which listed in Shenzhen in 2004, is principally
engaged in fertilizers, agricultural chemicals and energy
businesses. It is directly controlled by CEFC China's main business
subsidiary, CEFC Shanghai International Group Ltd., which has been
mired in debt since Ye's detention in early 2018.
The Shenzhen stock exchange has last year warned investors that the
company was at risk of being delisted, Caixin recalls.
In 2018, CEFC Anhui's revenue collapsed by 94% to CNY986 million,
and it reported a net loss attributable to shareholders of CNY1.2
billion, compared with a net profit of CNY447 million in 2017,
Caixin discloses citing the company's reports.
In the first half of 2019, CEFC Anhui's revenue declined a further
91% to CNY73.6 million. The net loss widened 88% to CNY49 million.
Investors have shunned CEFC Anhui also out of concern that a large
portion of its equity has been pledged or frozen by courts for the
debt woes of its controlling shareholder. As of Aug. 20, CEFC
Shanghai owned 985 million shares of CEFC Anhui, or 40% of the
company's total equity. All of the shares have been frozen by
courts while 90% were pledged, Caixin discloses citing market
records.
In early August, CEFC Anhui proposed a restructuring plan including
inviting in Jiaozuo Zhongzhou Carbon Products Co. as a white
knight, the report says. However, the plan didn't go through
because of pending investigations launched by the securities
regulator into CEFC Anhui's alleged disclosure violations.
CEFC China Energy Company Limited engages primarily in energy and
financial services businesses. It invests and develops upstream and
downstream of oil and gas fields, and petrochemicals in the Middle
East, Central Asia, and Africa. The company establishes
logistics chains, overseas storage, and transshipment terminals. It
also invests in securities, trusts, futures, banking, financial
assets transactions, leasing, factoring, direct risk management,
and online insurance.
ORIGIN AGRITECH: Regains Compliance With NASDAQ Listing Rules
-------------------------------------------------------------
Origin Agritech Ltd. has regained full compliance with NASDAQ
listing rules.
Previously, on June 5, 2019, the Company was notified by the NASDAQ
Stock Market that it was not in compliance with the NASDAQ listing
rules regarding the minimal requirements for stockholders' equity.
The non-compliance was determined based on the balance sheet of
Sept. 30, 2018, in the Annual Report on Form 20-F for fiscal year
2018 filed on June 3, 2019. Since Sept. 30, 2018, the Company
increased its stockholder's equity mainly through an equity
financing in January 2019. The Company also applied to change from
the NASDAQ Global Select Market to the NASDAQ Capital Market, the
application for which was approved and trading on NASDAQ Capital
Market for the ordinary shares of the Company commenced Aug. 19,
2019. The Company regained full compliance with the listing
standards of NASDAQ.
About Origin
Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life
Science Park in Beijing, Origin Agritech Limited (NASDAQ GS: SEED)
-- http://www.originseed.com.cn/-- is an agricultural
biotechnology company, specializing in crop seed breeding and
genetic improvement, seed production, processing, distribution, and
related technical services. Origin operates production centers,
processing centers and breeding stations nationwide with sales
centers located in key crop-planting regions. Product lines are
vertically integrated for corn, rice and canola seeds.
Origin Agritech reported a net loss of RMB152.79 million for the
year ended Sept. 30, 2018, following a net loss of RMB106.26
million for the year ended Sept. 30, 2017.
BDO China Shu Lun Pan Certified Public Accountants LLP, in
Shenzhen, The People's Republic of China, the Company's auditor
since 2011, issued a "going concern" qualification in its report
dated June 3, 2019, on the Company's consolidated financial
statements for the year ended Sept. 30, 2018, citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
[*] CHINA: Private Bond Defaults Rises to US$4.4BB This Year
------------------------------------------------------------
Bloomberg News reports that more Chinese companies are defaulting
on private bonds this year as the slowing economy weighs on weaker
companies and firms seek to repay publicly traded debt first.
The nation's issuers have missed repayments on a record
CNY31.8 billion (US$4.4 billion) of private bonds this year through
August, compared with CNY26.7 billion for all of 2017 and 2018
combined, Bloomberg discloses citing data by China Chengxin
International Credit Rating Co., one of China's biggest rating
firms.
"Private bond issuers are not obliged to make public disclosures,
therefore companies may choose to repay public notes first when
they are under financial stress," Bloomberg quotes Chen Su, a bond
portfolio manager at Qingdao Rural Commercial Bank Co, as saying.
Borrowers may seek to extend their private debt through secret
negotiations, he said.
The outstanding amount of publicly-issued bonds is about three
times that of private notes, according Bloomberg-compiled data.
Still, the private placement market is a key source of funding for
China's smaller non-state-owned companies and local government
financing vehicles as deals are struck with a small group of
qualified institutional investors, shielding firms from market
volatility.
Total corporate bond defaults in China year-to-date were at CNY78.4
billion, up 51% from the same period last year due to a slowing
economy, Bloomberg discloses.
HNA Group International, a unit of struggling private conglomerate
HNA Group, honored a $300 million note due Aug. 18, after missing
repayment on a CNY1.5 billion private bond at the end of July,
Bloomberg says.
According to Bloomberg, Chen Qi, chief strategist at private fund
management company Shanghai Silver Leaf Investment Co., said
investors' concerns over privately-placed bonds are "growing,"
adding that her firm now prefers short-duration notes sold by
high-quality issuers when they consider buying such debt.
There are signs the defaults are weighing on demand for such notes.
Issuance of privately-placed corporate notes in China declined in
the four months through July, in the longest falling streak in over
two years, before rising to around CNY160 billion in August,
according to bond issuance data compiled by Bloomberg.
Investors are also asking for higher risk premium on privately
issued notes. The average coupon difference between new sales of
private and public bonds was 154 basis points in January, the
spread rose to 179 basis points at end-August, according to data
compiled by Bloomberg.
"Investors will probably ask for even higher premium on private
bonds of risky companies," Bloomberg quotes Chen as saying.
The ratio of delinquency to total private notes outstanding was
0.63%, more than double a proportion of 0.26% in the public bond
market, according to China Chengxin International Credit Rating
data cited by Bloomberg.
=========
I N D I A
=========
AAKASH DEVELOPERS: Ind-Ra Lowers Long Term Issuer Rating to 'B+'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Aakash
Developers' (AD) Long-Term Issuer Rating to 'IND B+' with a Stable
Outlook from 'IND BB' while resolving the Rating Watch Negative
(RWN). The agency has simultaneously migrated the rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR150 mil. Long-term loan due on August 31, 2021, downgraded;
off RWN; migrated to non-cooperating category with IND B+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 26, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
KEY RATING DRIVERS
The downgrade and RWN resolution reflect delays in the commencement
of AD's proposed residential project even though it received
permission from Slum Rehabilitation Authority, Maharashtra in
August 2018. Earlier, Ind-Ra expected the project construction to
commence in September 2018.
COMPANY PROFILE
AD will develop a residential project in Kandivali East, Mumbai.
The firm was founded by Ram Kumar Pal. Basantraj Sethia and Rajesh
Pal are the other partners.
ABF ENGINEERING: CARE Keeps C on INR6.8cr Loans in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ABF
Engineering International Private Limited (ABFEIPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long–term Bank 4.07 CARE C; Stable; Issuer Not
Facilities Cooperating Based on best
Available Information
Short–term Bank 2.80 CARE A4; ISSUER NOT
COOPERATING
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 14, 2018, placed the
rating(s) of ABFEIPL under the 'issuer non-cooperating' category as
ABFEIPL had failed to provide information for monitoring of the
rating. ABFEIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated July 11, 2019, July 12 2019, July 15, 2019, July
17, 2019 and July 24, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the public
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
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
The rating assigned to the bank facilities of ABF Engineering
International Private Limited continues to be tempered by small
scale of operations, continuing cash losses, weak financial risk
profile marked by inadequate capital structure, weak debt coverage
indicators and elongated operating cycle and presence in a
fragmented industry with intense competition. The rating however
continues to draw its strength from the vast experience of the
promoters in the industry and modest product profile and reputed
customer base.
Key Rating Weakness
Small Scale of operations: The total operating income of the
company is small at INR 0.06 crore in FY18 (refers to the period
April 01 to March 31) when compared to other peers in the industry.
The total operating income has decreased from INR 0.06 crore in
FY18 to INR 4.39 crore in FY17.
Continuing cash losses: ABFEIPL incurred cash losses during
FY16-FY18 on account of low income resulting in under absorption of
manufacturing expenses. The company has incurred a cash loss of INR
0.48 crore in FY18 when compared to a cash loss of INR 1.46 crore
in FY17.
Weak financial risk profile marked by inadequate capital structure,
weak debt coverage indicators and elongated operating Cycle: The
company has inadequate capital structure during review period. The
debt equity ratio and overall gearing ratio of the
ABFEIPL remained negative respectively at -2.04x and -1.95 as on
March 31, 2018, due to erosion of net worth on account of
accumulated losses. The company has weak debt coverage indicators
marked by total debt to GCA and PBILDT interest coverage
ratio are respectively at -59.99 and -4.33x in FY18 on account of
cash losses. ABFEIPL has elongated operating cycle during
review period and remained at 10644 days in FY18.
Presence in a fragmented industry with intense competition: The
steel fabrication industry is highly fragmented and labour
intensive with the presence of large number of medium and small
scale industries heavily dependent on job work, leading to pricing
pressure, thus impacting the profitability margins of the
companies. The demand for the fabrication sector comes from the
engineering sector i.e. capital goods, the growth of which depends
on the overall industry scenario.
Key Rating Strengths
Experience of Promoters: ABF Engineering International Pvt Ltd was
promoted by Mr Mohammed Aslam Kazi and Mr Batasha Aslam Kazi. Mr
Mohd Aslam Kazi, is a B.Com graduate, has a total business
experience and 8 years of experience with this company. Mr Batasha
Aslam Kazi is a graduate, has total business experience of 17 years
of which 8 years of experience with this company. Mr B. Venkatesh
Rao is M.Com graduate, has an experience of 17 years, and 2 years
of experience with the company. Mr H. Rajendra Rao is an
Engineering graduate, has an experience of 27 years, and 3 years of
experience with the company.
Modest product profile and reputed customer base: The company
executes job works which include stainless steel or aluminum
fabrication piping pre-fabrication, pre-engineered structures,
sheet metal parts, manufacturing of pressure vessels, heat
exchangers, condensers, equalizers, normalizers, storage
tanks, condensate tanks etc. These products find application in
sectors like Oil and Gas, Petrochemical, Fertilizers, Power Sector,
Pharmaceutical, Ship Building, Automotive Sector, Cement. The
materials used in the manufacturing process are carbon steel,
stainless steel, duplex steel and low-alloy steel.
Liquidity Ratio: The current ratio of the company stood at below
unity of 0.99x as on March 31, 2018. The cash and bank balances
stood at INR0.12 crore as on March 31, 2018. The company did not
have any current investments as on March 31, 2018.
ABF Engineering International Private Limited (ABFEIPL) was
established in 2007 as a company to render manufacturing services
to industries and sectors such as construction, ship building,
petrochemical, Oil and Gas, Fertilizers, Chemical plants, Power
Sector, Pharma and Engineering Project Construction consultants.
ABF is certified by American Society of Mechanical Engineers (ASME)
for U and PP stamp to manufacture pressure vessels, piping
fabrication and accessories. ABF Engineering is registered with IBR
Act, 1950 to manufacture pressure parts and package boiler and
certified by Engineers India Limited (EIL) for procurement of
pressure vessels, and Nuclear Power Corporation of India Limited
(NPCIL) as a vendor for condensers, storage tanks, process piping,
structural fabrication, fabricated steel parts, Sheet metal parts
etc. The company has manufacturing facility in Mangalore, spread
across 2,00,000 sqft of which 33,000 sqft is built up area with two
fabrication bays. The fabrication bays are equipped with machinery
like CNC Profile cutting, Plasma cutting, CNC Press Brake, Plate
Bending Machine, Radial Drilling Machine, 300 & 150 ton Hydraulic
Press. The company also has a finishing bay with grit/sand blasting
and painting facility. The company is part of ABF Group which has
various group companies with operations in shipping & logistics and
freight forwarding, steel trading, power tools, engineering,
hardware and leather business, with a total group turnover of US$
200 million spread across Saudi Arabia, UAE, China and India.
ALFA ONE: CARE Keeps C on INR5cr Loans in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Alfa One
Hi-Tech Infra Private Limited (AOHT) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.00 CARE C; Issuer Not Cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 14, 2018, placed the
rating(s) of AOHT under the 'issuer non-cooperating' category as
AOHT had failed to provide information for monitoring of the
rating. AOHT continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated July 16, 2019, July 17, 2019, July 19, 2019, July
22, 2019 and July 23, 2019. 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.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings assigned to the bank facilities of Alfa One Hi-Tech
Infra Private Limited (AOHT) continues to be tempered by weak
financial profile marked by negative net worth and stretched
liquidity position. The rating also takes into account nil total
operating income during the period FY16-18. The rating is, however,
underpinned by experienced promoters.
Detailed description of the key rating drivers
Key Rating Weakness
Nil total operating income during FY15-18: The company has reported
nil total operating income during the period FY16-FY18.
Weak financial profile marked by negative net worth: As on March
31, 2018, AOHT had a negative net worth of INR4.20 crore. During
FY18, the company incurred a net loss of INR0.30 crore on a nil
total operating income.
Key Rating Strengths
Experience of the promoter in various other businesses: The
promoter, Mr. Luthufuddeen, has around two decades of experience in
various other businesses. Before starting Alfa One Hi-Tech Infra
Private Limited, Mr. Luthufuddeen was engaged in merchant trading
and logistics business, based out of Dubai. He entered the real
estate business in 2008, through AOGB, which has completed 2
residential projects ('Aquamarine' and 'Lamina') in Kannur
(Kerala). AOGB also has a concrete ready-mix division.
Liquidity Analysis: The current ratio and quick ratio of the
company stood at 1.44x and 0.71x respectively as on March 31, 2018.
The unencumbered cash and bank balance as on March 31, 2018 was
INR0.003 crore.
AOHT is a Kannur-based company promoted by Mr P K Luthufuddeen in
2011 and is engaged in civil constructions for Commercial and
residential buildings. Since inception, AOHT has completed 2
commercial and 2 residential projects. As on June 2015, the company
has 2 residential projects under execution. AOHT primarily
undertakes construction activities for the projects of Alfa One
Global Builders Private Ltd (AOGB, also promoted by Mr P K
Luthufuddeen in 2008 for development of residential and commercial
real estate projects), apart from other third party contract works.
AOGB is currently promoting a shopping mall in Kannur, 'Thana
Square', which has around 45,000 sq. ft. of retail and office space
and is also simultaneously executing 2 residential projects,
'Whitestreet' and 'French Reviera'. The constructions for all these
projects are undertaken by AOHT.
In FY14, AOHT had a net loss of INR1.5 crore on a total operating
income of INR3.6 crore, as against PAT and TOI of INR0.1 crore and
INR11.4crore, respectively, in FY13.
ANIK INDUSTRIES: CARE Lowers Rating on INR65cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Anik Industries Ltd. (AIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 65.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE C; ISSUER NOT
COOPERATING on the basis of
best available information
Short-term Bank 175.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE A4; ISSUER
NOT COOPERATING on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 15, 2019, placed the
rating(s) of AIL under the 'Issuer Non Cooperating' category as AIL
had failed to provide information for monitoring of the ratings and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. AIL continues to be
non-cooperative despite repeated requests for submission of
information. 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.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The revision in the ratings assigned to the bank facilities of AIL
takes into account the feedback received from lender informing
continuous overdrawal in its fund based working capital limits
exceeding 30 days. The overdrawal was on account of AIL's tight
liquidity following cash losses reported in FY19 and Q1FY20.
Detailed description of the key rating drivers
At the time of the last rating on July 9, 2019, following were the
rating weaknesses (updated for the published results available from
Bombay Stock Exchange and feedback received from lenders):
Key Rating Weaknesses
Overdrawing in cash credit limit exceeding 30 days: As informed by
one of AIL's lender, there has been continuous overdrawal in AIL's
fund based working capital limits for more than 30 days. This was
due to AIL's tight liquidity following cash loss reported by AIL in
FY19 as well as Q1FY20.
Incorporated in 1976, AIL is engaged in commodity trading and
real-estate development, after sale of its dairy business in
September 2016. AIL trades in agro commodities such as edible oils,
soya bean and wheat. It also engages in trading of other
commodities such as coal and also imports crude palm oil and sells
the same in bulk after getting it refined through third party
refineries. In the real estate segment, AIL is developing a
commercial cum residential real estate project in Kolkata, which is
scheduled to be completed by December 2020.
ASHIRWAD CORP: CARE Cuts Rating on INR20cr Loan to B+
-----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ashirwad Corporation (AC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 20.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING Revised from
CARE BB-; Stable; Based on
best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from AC to monitor the ratings
vide e-mail communications/letters dated April 17, 2019, May 9,
2019, June 11, 2019, August 6, 2019 and numerous phone calls.
However, despite CARE's 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 publicly available information which however,
in CARE's opinion is not sufficient to arrive at a fair rating. The
ratings on AC'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 ratings.
The rating has been revised on account of its project
implementation risk associated with on-going residential project
along with risk related to timely receipt of booking advances.
Further, the rating remained constrained on account of its
constitution as a partnership firm, and its presence in cyclical
and highly fragmented real estate industry. The rating, however,
derives strength from experienced partners in real estate
industry.
Detailed description of the key rating drivers
At the time of last rating on June 15, 2018, the following were the
rating strengths and weaknesses.
Key Rating Weaknesses
Constitution as a partnership firm: AC being a partnership firm is
exposed to inherent risk of the partners' capital being withdrawn
at the time of contingency and also limits the ability to raise the
capital.
Moderate project implementation risk: AC started construction
activities of Dev Heritage from December, 2012 and is expected to
be completed by December, 2018. Till May 21, 2018, the firm has
incurred cost of INR40.57 crore forming 67% of envisaged project
cost and thereby 33% cost is to be incurred which will be completed
by December, 2018. This reflects moderate project implementation
risk.
Risk related to timely receipt of advances: AC has received booking
for 72% of total units for Dev Heritage and it has received booking
advance of INR10.92 crore which forms 22% of sales value of booked
units against 67% of cost incurred of Dev Heritage reflecting
moderately low receipt of advances against cost incurred and
thereby moderate risk associated with timely receipt of remaining
booking advances remains crucial.
Key Rating Strengths
Experienced partner: AC has been promoted by Mr. Kanubha Parmar,
Mr. Kishorsinh Vaghela and Mr. Kashyapbhaibhai Joshi. All the
partners hold average experience of more than two decades in the
real estate industry. Partners have executed many residential and
commercial projects in Gujarat in past. Partners are also
associated with Shivshakti Rice and Pulse Mill, Mahalaxmi Rice and
Pulse Mill and Shree Developers (real estate developer firm).
Liquidity Analysis
The liquidity position of the firm remained moderate as marked by
current ratio 2.81 times as on March 31, 2017 as against 1.12 times
as on March 31, 2016. Further, cash and bank balance remained at
INR3.59 crore as on March 31, 2018 and cash flow from operations
remained negative at INR 9.96 crore in FY18.
Nadiad (Gujarat)-based, AC was established as a partnership firm in
2011, and run by Mr. Kanubha Parmar, Mr. Kishorsinh Vaghela and Mr.
Kashyapbhaibhai Joshi. AC is currently executing a residential
project named ‘Dev Heritage’ with 171 proposed bungalows at
Nadiad consisting total area under development of 3,55,350 square
feet.
BLOOM DEKOR: Ind-Ra Lowers Long Term Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Bloom Dekor
Limited's Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR180 mil. Fund-based working capital limit (Long- term/
Short- term) downgraded with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR145 mil. Non-fund based working capital limit (Short- term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Based on the best available
information
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing for more than 30
days ended July 2019.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
Bloom Dekor manufactures and sells laminated sheets and doors. The
company caters to both domestic and international markets.
BTM EXPORTS: CARE Lowers Rating on INR40cr LT Loan to 'B'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BTM Exports Limited (BTM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Bank 40.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB+; Stable; ISSUER NOT
COOPERATING; Based on best
Available Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 28, 2018, placed the
ratings of BTM Exports Limited under the 'Issuer not cooperating'
category as BTM Exports Limited had failed to provide information
for monitoring of the ratings as agreed to in its rating agreement.
BTM Exports Limited continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated July 31, 2019. 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.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
In view of the non-availability of the information and lack of
management cooperation, CARE has revised the rating for bank
facilities of BTM Exports Limited from CARE BB+; Stable ; ISSUER
NOT COOPERATING to CARE B; Stable; ISSUER NOT COOPERATING. . Thus,
the rating revision is based on the best available information. The
ratings on BTM's bank facilities will now be denoted as CARE B;
Stable ISSUER NOT COOPERATING.
Detailed description of the key rating drivers
CARE has revised the ratings of BTM Exports Limited to CARE B;
Stable; ISSUER NOT COOPERATING. The issuer did not participate in
rating exercise despite continuous request. CARE has not received
any information. Thus, the ratings are based on the best available
information.
Liquidity Profile: CARE does not have adequate data from the
company or publically available sources to comment on the recent
liquidity position of BTM Exports Limited.
BTM was initially incorporated as BTM Exports Private Limited on
November 24, 2004 and was later converted to public limited company
on August 18, 2008. The company is promoted by Tekriwal brothers
with Mr Sanjay Tekriwal being its chairman and managing director.
Initially, the company was into trading of Vanaspati, edible oils
and fabrics etc, but the same was discontinued by the company in
2011 and it started a new line of business which involves trading
of Basmati Rice and Iron ore fines.
CELEBRITY BREWERIES: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Celebrity Breweries Private Limited
Binoshiba House, Plot No. 655
Fraser Road, Patna
Bihar 800001
Insolvency Commencement Date: August 27, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: February 23, 2020
Insolvency professional: Partha Pratim Ghosh
Interim Resolution
Professional: Partha Pratim Ghosh
CB-108 Salt Lake, Sector I
Kolkata 700064
E-mail: cappghosh@gmail.com
- and -
P-325 C.I.T. Road
Kankurgachi, Scheme-6M
Kolkata 700054
E-mail: cirp.celebrity@gmail.com
Last date for
submission of claims: September 10, 2019
CLASSIC AND CONTINENTAL: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: Classic And Continental Service Private Limited
BD 37/2, Abinandan Apartment Rabindrapally
P.O. Prafulla Kanan Kolkata 700101
Insolvency Commencement Date: August 23, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: February 19, 2020
(180 days from commencement)
Insolvency professional: Mr. Pankaj Kumar Tibrewal
Interim Resolution
Professional: Mr. Pankaj Kumar Tibrewal
Chitra 3E, Duke Residency
13 Chanditala Lane
Ashok Nagar Park
Tollygunge, Regent Park
Kolkata, West Bengal 700040
E-mail: tibrewalpankaj@yahoo.com
- and -
AAA Insolvency Professionals LP
Mousami Co.Op. Housing Society
15B, Ballygunge Circular Road
Kolkata 700019
E-mail: classicandcontinental@
aaainsolvency.com
Last date for
submission of claims: September 11, 2019
D.R. SHAH: Ind-Ra Affirms 'B+' LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed D.R. Shah
Construction Co.'s (DRS) Long-Term Issuer Rating at 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based limits affirmed with IND B+/Stable
rating; and
-- INR60 mil. (increased from INR30 mil.) Non-fund-based limits
affirmed with IND A4 rating.
KEY RATING DRIVERS
The affirmation reflects DRS's continued small scale operations,
with revenue of INR107.99 million in FY19 (FY18: INR146.72
million). The revenue declined due to delays in receipts from the
government. The figures for FY19 are provisional.
The ratings reflect DRS's weak credit metrics due to high debt
levels. The metrics improved in FY19 owing to a rise in the
operating EBITDA to INR16.71million in FY19 (FY18: INR13.26million)
due to a fall in the cost of goods sold. The net leverage
(adjusted net debt/EBITDA) was 5.27x in FY19 (FY18: 5.61x) and
EBITDA interest coverage (operating EBITDA/gross interest expense)
was 1.33x (1.1x).
The ratings also take into consideration DRS's tight liquidity
position, with average maximum utilization of fund-based facility
at 91% and non-fund based facility at 58% for the 12 months ended
June 2019. The working capital cycle elongated to 436 days in FY19
(FY18: 282 days) due to an increase in inventory days (FY19: 253
days; FY18: 130 days) and debtor days (264 days; 213 days). The
cash flow from operations turned positive at INR0.55million in FY19
(FY18: negative INR3.63million) due to the improvement in the
EBITDA. The cash balance stood at INR0.73 million in FY19 (FY17:
INR2.3million).
However, the EBITDA margins are healthy because the company
executes more than 50% of the orders through subcontractors. The
EBITDA margin rose to 15.38% in FY19 (FY18: 9.04%) because of a
decline in the overall cost of raw material. The return on capital
employed was 15.38% in FY19 (FY18: 12.38%).
The ratings are also supported by the promoter's experience of more
than three decades in the building material and construction
business.
RATING SENSITIVITIES
Negative: Deterioration in the credit metrics, on a sustained
basis, along with continued stressed liquidity may result in a
negative rating action.
Positive: A substantial improvement in the revenue while
maintaining the operating profitability, leading to improved credit
metrics, on a sustained basis, will be positive for the ratings.
COMPANY PROFILE
D. R. Shah Construction is a partnership firm engaged in civil
engineering construction. The company undertakes maintenance
services for hospitals, schools and residential buildings for
government bodies. The firm undertakes only government projects.
Its government clients are Maharashtra Housing Area Development
Authority and Municipal Corporation of Greater Mumbai.
EMCO LIMITED: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: EMCO Limited
Registered office:
N-104, MIDC Area
Jalgaon 425003
Maharashtra, India
Principal office:
Plot no. F-5, Road No. 28
Wagle Industrial Estate
Thane 400604
Maharashtra, India
Insolvency Commencement Date: August 16, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 12, 2020
Insolvency professional: Mr. Kedarram Ramratan Laddha
Interim Resolution
Professional: Mr. Kedarram Ramratan Laddha
501 Shajanand Shopping Centres
Shahibaug, Ahmadabad
Gujarat 380004
India
E-mail: ip@kpsjca.com
kladdha@kpsjca.com
- and -
B-1002 – Mondeal Square
Near Prahladnagar Garden
S.G. Highway
Ahmedabad 380015
Gujarat, India
Last date for
submission of claims: August 30, 2019
GALADA POWER: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Galada Power And Telecommunication Limited
P2/6, IDA Block III
Uppal, Hyderabad
Telangana 500039
Insolvency Commencement Date: August 14, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: February 21, 2020
Insolvency professional: Mr. Nitin Panchal
Interim Resolution
Professional: Mr. Nitin Panchal
For Communication:
1204 Maker Chamber V
Jamnalal Bajaj Road
Nariman Point
Mumbai 400021
E-mail: ip.galadapower@gmail.com
Registered address with IBBI:
A-203, Suraj Eleganza-I Chs
Pitamber Lane
Near Dena Bank
Mahim (West), Mumbai City
Maharashtra 400016
E-mail: nitin20768@gmail.com
Last date for
submission of claims: September 8, 2019
GLOBAL TOWERS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: M/s Global Towers Limited
Registered office:
Third Floor, Electronic Sadan No. 1
MIDC TTC industrial Area
Mahape, Navi Mumbai
Mumbai 400710
Maharashtra, India
Address other than R/o where all or any books of account
and papers are maintained:
Global Enclave, EL-3
TTC Industrial Area
MIDC, Mahape
Navi Mumbai 400710
Maharashtra, India
Insolvency Commencement Date: August 29, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 25, 2020
(180 days from commencement)
Insolvency professional: Ms. Rajshree Padia
Interim Resolution
Professional: Ms. Rajshree Padia
Office No. 17, 10th Floor
Pinnacle Corporate Park
G-Block, Bandra Kurla Complex
Bandra (E), Mumbai 400051
E-mail: rajshreecs@hotmail.com
globaltowercirp@gmail.com
Last date for
submission of claims: September 12, 2019
GOLDSTAR POLYMERS: CARE Moves D on INR7cr Debt to Not Cooperating
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Goldstar
Polymers Limited (GPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short- 7.00 CARE D/CARE D; Issuer not
Term Bank cooperating; Based on best
Facilities available information
Short-term Bank 0.25 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from GPL to monitor the rating(s)
vide e-mail communications dated May 21, 2019, June 14, 2019,
August 5, 2019 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The ratings on GPL's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been revised on account of classification of account
as SMA-2 by the bank.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing: As per the interaction with the banker,
the account has been classified as SMA-2 due to delay in the
debt servicing.
Established in 1990 as a proprietorship concern by Mr. Prem Prakash
Saraogi, Goldstar Containers (GC) was later converted into a public
limited company as Goldstar Polymers Limited (GPL) in 2006. The
company is engaged in manufacturing of plastic drums which find
application in carriage of various materials across different
industries viz. oil & petroleum, lubricants, inks, chemicals, etc.
The manufacturing facility of the company is located in Daman,
equipped with an installed capacity of 2,500 MTPA utilized at ~65%
during FY18. The products manufactured by the company are entirely
sold in the domestic market, whereas the primary raw material viz.
HDPE is sourced locally from domestic market and also import from
UAE [imports comprise 13.07% in FY18 (prov.)].
HANS RAJ: CARE Lowers Rating on INR19cr LT Loan to 'B+'
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hans Raj Agros Private Limited (HRA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 19.00 CARE B+; Stable; Issuer not
Facilities cooperating; Revised from
CARE BB-; Stable on the basis
of best available information
Short term Bank 10.00 CARE A4; Issuer not cooperating
Facilities on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HRA to monitor the rating
vide letter dated August 2, 2019 and e mail communications dated
August 1, 2019, July 9, 2019, May 16, 2019, May 8, 2019, May 2,
2019 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Hans Raj Agros
Private Limited's bank facilities will now be denoted as CARE B+;
Stable; Issuer not cooperating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
The long term rating has been revised on account of small scale of
operations with low profitability margins, weak overall solvency
position, elongated operating cycle, susceptibility to fluctuation
in raw material prices and monsoon dependent operations and highly
competitive nature of the industry.
Key Rating Weaknesses
Small scale of operations with low profitability margins: The total
operating income of the company stood small at INR37.76 crore in
FY18. The profitability margins stood low at PBILDT margin and PAT
margins of 9.65% and 0.02%, respectively, in FY18.
Weak overall solvency position: The capital structure of the
company stood leveraged marked by overall gearing ratio of 16.31x
as on March 31, 2018. The debt coverage indicators, also stood weak
marked by total debt to GCA ratio of 141.31x, as on March 31, 2018
and interest coverage ratio at 1.16x in FY18.
Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature.
Availability and prices of agro commodities are highly dependent on
the climatic conditions. Adverse climatic conditions can affect
their availability and leads to volatility in raw material prices.
The monsoon has a huge bearing on crop availability which
determines the prevailing rice prices. Any sudden spurt in the raw
material prices may not be passed on to customers completely owing
to company's presence in highly competitive industry.
Highly fragmented and competitive nature of industry: The industry
in which HRA operates is highly fragmented and competitive in
nature marked by the presence of various large and small players.
The players in the industry, especially the small players, do not
have any pricing power and are exposed to competition induced
pressures on profitability. Furthermore, the commodity nature of
the product makes the industry highly fragmented with numerous
players operating in the unorganized sector with very less product
differentiation. There are several small scale operators which are
not into end-to-end processing of rice from paddy, instead they
merely complete a small fraction of processing and dispose-off
semi-processed rice to other big rice millers for further
processing. Additionally, the raw material (paddy) prices are
regulated by government to safeguard the interest of farmers, which
in turn limits the bargaining power of the rice millers.
Stretched liquidity position: The operating cycle of the company
stood elongated at 304 days as on March 31, 2018. The liquidity
position of the firm stood weak marked by current ratio of 1.22x
and quick ratio of 0.10x as on March 31, 2018.
Hans Raj Agros Private Limited (HRA) was incorporated in April 1996
and is currently being managed by Mr. Subhash Chander Kamra, Mrs.
Kanta Kamra, Mr. Rahul Kamra and Mr. Ranjam Kamra. The company is
engaged in processing of paddy at its manufacturing facility
located in Fazilka, Punjab with an installed capacity of processing
67,000 Tonnes of paddy per annum as on March 31, 2018.
HI-CAN INDUSTRIES: CRISIL Withdraws B Ratings on INR16cr Loans
--------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Hi-Can
Industries Private Limited (HIPL) 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 15 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
Term Loan 1 CRISIL B/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with HIPL for obtaining
information through letters and emails dated July 30, 2019 and
August 5, 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 HIPL. 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 HIPL 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 HIPL to 'CRISIL
B/Stable Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of HIPL 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.
Incorporated in 2009 and promoted by Mr Shailesh Makadia and his
brother, Mr Nilesh Makadia, HIPL manufactures metal tin cans that
are used to package food products. Facility in Vadodara, Gujarat,
has capacity of about 9,200 can per hour.
IMPS EDUCATIONAL: CRISIL Lowers Ratings on INR6.46cr Loans to D
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of IMPS Educational Trust (IET) to 'CRISIL D Issuer not
cooperating' from 'CRISIL B/Stable; Issuer Not Cooperating'. The
downgrade reflects IET's delay in servicing maturing term debts and
the account being subsequently classified under 'special mention
account 1' by banker.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.01 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
Term Loan 4.45 CRISIL D (ISSUER NOT
COOPERATING; Downgraded
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with IET through letters
and emails dated October 16, 2018, and November 28, 2018, among
others, apart from telephonic communication, for obtaining
information. However, the issuer has remained non-cooperative.
Investors, lenders, and all other market participants should
exercise due caution while using ratings 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 has
not received any information on either the financial performance or
strategic intent of IMPS, which restricts CRISIL's ability to take
a forward looking view on the entity's credit quality. CRISIL
believes information available on the company is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with 'CRISIL BB' rating category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has downgraded its rating on the
long-term bank facilities of IET to 'CRISIL D Issuer not
cooperating' from ''CRISIL B/Stable; Issuer Not Cooperating''.
The downgrade reflects IET's delay in servicing maturing term debts
and the account being subsequently classified under 'special
mention account 1' by banker.
IET, founded by West Bengal based Mr Bablu Bhattacharjee in 2000,
currently operates three college viz. IMPS Polytechnic College in
Jalpaiguri, IMPS College of Engineering and Technology in Malda and
Trinity B. Ed College in Siliguri. The trust also operates Delhi
Public World School in Malda.
ITM INFRA: Ind-Ra Lowers LT Issuer Rating to 'BB-', Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded ITM Infra's
(ITM) Long-Term Issuer Rating to 'IND BB-' from 'IND BB (ISSUER NOT
COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR1.0 bil. (reduced from INR1.2 bil.) Long-term loan due on
December 2021 downgraded with IND BB-/Stable rating.
KEY RATING DRIVERS
The downgrade reflects ITM's high offtake risk, with booking
continuing to be at 45% levels despite 60% of the construction
being completed. Also, ITM had not booked any revenue as of
end-March 2019 as no sale deeds had been executed. Furthermore, the
remaining 40% of the project is likely to be completed by December
2021, indicating slow project execution. Growth in bookings and the
timely receipt of customer advances will be critical for the timely
completion of the project.
As on March 31, 2019, the firm had incurred a total cost of
INR1,281.60 million, including finance costs. The cost of the
project has been funded by partners' capital of INR449 million,
unsecured loans of INR82.8 million, customer advances of INR71.1
million, a long-term loan of INR593 million and other loans and
advances of INR18.9 million.
The ratings are also constrained by the partnership structure of
the business.
ITM's liquidity continues to be stretched. Ind-Ra expects the cash
debt service coverage ratio to be in the range of 1.1x-1.6x over
the project life, subject to the timely realization from bookings.
The ratings are supported by the five partners' (the promoters of
Roongta Group, Arihant Group, and MIDAS group) experience of over
20 years in Surat's real estate market.
RATING SENSITIVITIES
Negative: Continued lower-than-expected sales volume or lack of
revenue booking or significant time or cost overruns in the
projects, resulting in the Debt Service Coverage Ratio reducing
below 1.3x, could result in a negative rating action.
Positive: Growth in sales volume and revenue bookings, resulting in
higher customer advances and timely project execution, without
incurring additional debt, resulting in the debt service coverage
ratio remaining above 2.5x, on a sustained basis, could result in a
positive rating action.
COMPANY PROFILE
ITM Infra was registered in July 2015 to execute a
commercial-cum-residential project - ITM Infra - in Surat, Gujarat.
Other commercial complexes and housing projects built across Surat
by the promoters include Marchello, White House, Sky View, Salasar
Residency, Midas Square, Water Hills Residency, Roongta Shopping,
and Laurels. The upcoming commercial project is located near the
city's developing textile market, with all basic amenities,
including proximity to the railway station and airport.
J AND B ENGINEERING: CRISIL Withdraws B- Rating on INR14cr Loan
---------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of J and B
Engineering and Construction Company (JBEC) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL's policy on withdrawal of
its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.5 CRISIL A4 Short Term Rating
CRISIL A4 (ISSUER NOT
COOPERATING; Migrated from
'CRISIL A4'; Rating
Withdrawn)
Cash Credit 14 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B-/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with JBEC for obtaining
information through letters and emails dated July 30, 2019 and
August 05, 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 JBEC. 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 JBEC 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 JBEC to 'CRISIL
B-/Stable/CRISIL A4 Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of JBEC on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Established in 1995 by Mr K A Abraham and his family, JBEC
undertakes civil contracts for government departments (such as
Public Works Department and Kerala Water Authority) of Kerala.
JAI BHARAT: CARE Lowers Rating on INR25cr LT Loan to 'B'
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Jai Bharat Rice Mills - Fazilka (JBM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 25.00 CARE B; Stable; Issuer not
Facilities cooperating; Revised from
CARE B+; Stable on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from JBM to monitor the ratings
vide letter dated August 2, 2019 and e mail communications dated
August 1, 2019, July 19, 2019, July 4, 2019, May 16, 2019, May 1,
2019 and numerous phone calls. However, despite CARE's 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 Jai Bharat Rice Mills
Fazilka'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 ratings.
The rating has been revised on account of susceptibility to
fluctuation in raw material prices and monsoon dependent
operations. The rating is further constrained by partnership nature
of constitution. The rating, however, derives strength
from experienced partners and established track record of entity
and favorable location of operations.
Key Rating Weaknesses
Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature. The
price of rice moves in tandem with the prices of paddy. Adverse
climatic conditions can affect their availability and leads to
volatility in raw material prices. Any sudden spurt in raw material
prices may not be passed on to customers completely owing to firm's
presence in highly competitive industry.
Partnership nature of constitution: JBM's constitution as a
partnership firm has the inherent risk of possibility of withdrawal
of the partners' capital at the time of personal contingency and
firm being dissolved upon the death/retirement/insolvency of
partners. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision of the lenders.
Key Rating Strengths
Experienced partners and established track record of entity: Jai
Bharat Rice Mills (JBM) was established in 1978 as a partnership
firm and is currently being managed by Mr. Satpal, Mr. Surinder Pal
and Mr. Sukhwinder Singh. The partners have work experience ranging
from 25-40 years which they have gained through JBM and other group
concerns. Further, long track record has led to management's better
understanding of the market and establishment of strong
relationships with suppliers as well as customers.
Favorable location of plant: JBM's manufacturing unit is located in
Fazilka, Punjab. The area is one of the hubs for paddy/rice,
leading to its easy availability. The unit is also in proximity to
the grain market resulting in procurement at competitive rates. The
presence of JBM in the vicinity of paddy producing regions gives it
an advantage over competitors operating elsewhere in terms of easy
availability of the raw material as well as favorable pricing
terms.
Stretched liquidity position: The operating cycle of the firm stood
elongated at 164 days for FY18(Prov.). The current ratio stood
moderate at 1.35x for FY18(Prov.) and quick ratio stood weak at
0.26x for FY18(Prov.). The firm has free cash and bank balances of
INR0.11 crore as on March 31, 2018(Prov.).
Jai Bharat Rice Mills (JBM) was established as a partnership firm
in 1978 having Mr. Satpal, Smt Renu Bala, Mr. Surinder Pal, Smt
Suman ,Mr. Sukhwinder Singh, Smt. Rajwant Kaur as its partners. The
firm is engaged in processing of paddy at its manufacturing
facility located in Fazilka, Punjab. Besides, the firm also has two
group concerns namely Kirpa Rice Mill which is engaged in similar
line of business as JBM and Joga Singh & Sons which is commission
agent based firm; engaged in trading of paddy.
JET AIRWAYS: Creditors to Recover Only 10% in Liquidation Scenario
------------------------------------------------------------------
Reuters reports that creditors of Jet Airways are likely to recover
less than 10% of the carrier's total outstanding dues in a
liquidation scenario if no suitor succeeds in buying the airline,
two sources said.
The airline's financial and operational creditors, who are owed
nearly INR30,000 crore ($4.20 billion) are likely to recover only
$300-$400 million from the sale of Jet's assets, the sources, who
have direct knowledge of the matter, told Reuters.
"The expected recovery on owned planes and real estate is $300-400
million after repaying debt tied specifically to those assets,"
Reuters quotes one of its sources as saying.
Reuters relates that the sources, who asked not to be named as they
have not been cleared to discuss the matter with media, said Jet
currently has some four to six Boeing and Airbus aircraft, and some
real estate assets in India, on which there are some outstanding
dues.
The airline, less than a year ago, was operating a fleet of more
than 120 planes that flew to dozens of domestic destinations and
international hubs such as Singapore, London and Dubai, according
to Reuters.
Once India's biggest private carrier, Jet stopped flying in April
after running out of cash, leaving thousands without jobs and
pushing up air fares across the country. It was admitted to
bankruptcy court in June after its lenders, led by State Bank of
India, failed to agree on a revival plan.
The court-appointed resolution professional, now responsible for
the company, declined to comment and said that the focus remains on
resolution and not liquidation at this stage, adds Reuters.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/ -- was one of India's top airlines
founded by Naresh Goyal. It provided passenger and cargo air
transportation services as well aircraft leasing services. It
operated flights to 66 destinations in India and international
countries.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.
Jet Airways on April 17 halted all flight operations after its
lenders rejected its plea for emergency funds.
The total liabilities of the airline, including unpaid salaries and
vendor dues, are nearly INR15,000 crore, Livemint disclosed.
JNANA BANDHU: CARE Keeps B on INR6.5cr Loans in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Jnana
Bandhu Education Trust (JET) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.50 CARE B; Stable; Issuer not
Cooperating Based on best
Available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 19, 2018, 2018, placed
the rating(s) of JET under the 'issuer non-cooperating' category as
JET had failed to provide information for monitoring of the rating.
JET continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated July 22, 2019, July 24 2019, July 25, 2019, July 29, 2019 and
August 05, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the public available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
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
The rating assigned to the bank facilities of Jnana Bandhu
Education Trust continues to be tempered by debt-funded capital
expansion impacting capital structure, cash flow mismatches
associated with the educational institutes, presence in a highly
competitive industry, high regulation in education sector. The
rating however continues to draw its strength from the long
operational track record of the trust and the trustees,
satisfactory infrastructure facilities and resources consistent
growth in revenue driven by increasing student base, financial risk
profile characterized by healthy SBID margins and stable cash
accruals.
Key Rating Weakness
Debt-funded capital expansion impacting capital structure: JET's
overall gearing remained low in the range of 0.35-0.95x in the
past; however, due to debt-funded capex it increased to 1.77 x as
on March 31, 2015. Such debt-funded expansion has also resulted in
higher interest burden leading to moderation in Interest coverage
(at 2.36 times in FY15) and total debt/GCA remained high at 9.23
years as on March 31, 2015. Total debt comprises mainly of term
loan taken to fund the capital expansion and working capital
borrowings of INR0.50 crore. Going forward with no additional term
debt, the gearing levels is expected to improve.
Cash flow mismatches associated with the educational institutes: In
every academic year, JET collects fees for schools and PU college
twice a year while the trust incurs regular stream of
payments for meeting staff salary maintenance activities, interest
expenses, term loan payments, etc. Generally, the trust collects
60% of the fee during the period April-June in every academic year
and the remaining in January- March. The intermittent cash flow
mismatches faced by the trust throughout the year is bridged by
overdraft facility.
Presence in a highly competitive industry: The education sector
offers immense potential as there is a growing demand for the
services offered driven by increasing propensity of the middle
class to spend on education and India's increasing population. New
schools and colleges being added every year along with established
colleges results in high competition level in the state and
adjoining areas of JET. JET is likely to face intense competition
in the coming years as the Government plans to deregulate the
education sector thereby allowing private players to play a larger
role in the field of education.
High regulation in education sector: In addition to AICTE, the
educational institutions in Karnataka are regulated by the
respective State Governments with respect to matters such as
determining the number of management quota seats, amount of tuition
fee charged for government quota and management quota giving
limited flexibility to the institutions. These factors have
significant bearing on the revenue and surplus levels of the
institutions and resultantly on JET's financial risk profile.
Key Rating Strengths
Long operational track record of the trust and the trustees: Mr M K
Kumaraswamy, the Founder of JET, has been in the field of academics
for over one decade. He is the current managing trustee of JET and
his highest academic qualification is Master of Science.
Satisfactory infrastructure facilities and resources: The
Pandavapura campus which consists of Jnana Bandhu Vidhyala and one
Pre-University college, is spread over 2.16 acres of land, where
the constructed area is 73,508 sq.ft. The above area includes 24
CBSE classrooms, 24 PU college and state high English medium school
classrooms, stage auditorium, administrative buildings, staff
rooms, sports rooms, basketball and tennis court, cafeteria,
playground, student amenity centre, laboratory and a well-stocked
library.
Consistent growth in revenue driven by increasing student base: JET
has two schools and one Pre-University College under its fold.
Jnanabandhu Vidhyalaya and Jnanabandhu PreUniversity college is the
mainstay for JET with about 80% share in the JET's total revenue
for FY15 (refers to the period April 1 to March 31) as against 75%
in FY14. JET's income has witnessed a steady growth at a CAGR of
103% during the period FY12 - FY15 aided by increasing
student admission in its well-established school JV and the start
of JPC in the academic year 2014-15.
Financial risk profile characterized by healthy SBID margins and
stable cash accruals: The trust has been able to maintain
relatively high SBID margin in the last four years in the range of
23-41%, nevertheless has witnessed sharp decline in FY15 mainly
attributed to higher personnel cost for the teachers in PUC and one
–time expense incurred by the trust to set up softwares in their
existing computers.
Liquidity Analysis: The current ratio of the firm stood low at
0.75x as on March 31, 2015. The cash and bank balances stood at
0.08 crore as on March 31, 2015. The company has current
investments of INR 90.00 lakh as on March 31, 2015.
Jnana Bandhu Education Trust (JET) was founded in 2011-12 by Mr M R
Kumarswamy at a rural area between Pandavapura and Mandya in the
state of Karnataka. The trust to start with took over Adhithya
School from different trustees and also started Jnana Bandhu
Vidhyalaya in the year 2011-12. In 2014-15, the trust started Jnana
Bandhu Pre-University College in Pandavapura, Karnataka, which is
recognized by the State Government of Karnataka. Jnana Bandhu
Vidhyalaya offers state syllabus for classes starting from
8thstandard to 10th standard and it also has classes from Pre-kg to
10th standard where all the courses are accredited by statutory
body Central Board of Secondary Education (CBSE). Adhithya School
offers state syllabus for classes starting from 1st standard to 7th
standard. Overall, JET currently manages two schools and one
Pre-University college with a total student base of 3,533 as on
August 31, 2015.
In FY15, JEB had a surplus of INR0.04 crore on gross receipts of
INR3.20 crore, as against surplus and gross receipts of INR0.21
crore and INR1.29 crore, respectively, in FY14.
KANOOVI FOODS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Kanoovi Foods Private Limited
Plot No. 466/1, Sector-1 Gandhinagar
GJ 382007
India
Insolvency Commencement Date: August 8, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: February 4, 2020
Insolvency professional: Mr. Kedarram Ramratan Laddha
Interim Resolution
Professional: Mr. Kedarram Ramratan Laddha
501 Shajanand Shopping Centres
Shahibaug, Ahmadabad
Gujarat 380004
E-mail: ip@kpsjca.com
kladdha@kpsjca.com
- and -
B-1002 – Mondeal Square
Nr. Prahladnagar Garden
SG Highway
Ahmedabad 380015
Last date for
submission of claims: August 22, 2019
LAKHANI FOOTWEAR: CRISIL Hikes Rating on INR59.31cr Loan to B-
--------------------------------------------------------------
Due to inadequate information CRISIL, in line with SEBI guidelines
had migrated the ratings of Lakhani Footwear Private Limited (LFPL;
a part of the Lakhani group) to 'CRISIL D/CRISIL D Issuer Not
Cooperating on March 28, 2019'. However, the group has subsequently
started sharing requisite information required for carrying out
comprehensive review of the ratings. Consequently, CRISIL has
migrated its ratings on the bank facilities of LSAPL to 'CRISIL
B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase- 15.00 CRISIL A4 (Migrated from
Discounting 'CRISIL D ISSUER NOT
Facility COOPERATING')
Cash Credit 59.31 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 27 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Proposed Long Term 4.95 CRISIL B-/Stable (Migrated
Bank Loan Facility from 'CRISIL D ISSUER NOT
COOPERATING')
Term Loan 11.86 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
The ratings reflect the Lakhani group's large working capital
requirement, modest financial risk profile, and average operating
efficiencies. These weaknesses are partially offset by an
established position in the footwear industry.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of LFPL, Lakhani Shoes and Apparels Pvt
Ltd, Lakhani Rubber Products Pvt Ltd, and Lakhani Rubber Works.
This is because these entities, collectively referred to as the
Lakhani group, are in the same business, and have common promoters,
senior management, procurement, marketing, and finance functions.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Operations are likely to
remain working capital intensive over the medium term. Gross
current assets were sizeable at 277 days as on March 31, 2019,
driven by large inventory and substantial receivables of 116 days
and 143 days, respectively. Financial flexibility is expected to
remain constrained over the medium term following the high working
capital requirement.
* Weak Financial Risk Profile: Financial Risk profile is
constrained with interest coverage remaining below 2 times over the
years. While the capital structure is supported by gearing
remaining below 1 time at March 2019, the net cash accruals to
total debt stood at 0.13 time during fiscal 2019. The financial
risk profile further remains constrained by the extensive working
capital requirement.
* Average operating efficiencies: The operating margin declined to
8.6% in fiscal 2019 from 10.5% in fiscal 2017 due to the increase
in the price of the raw materials, along with the limited
bargaining power of the company to pass on the increasing prices to
its customers. The footwear industry is highly competitive in
nature, which limits the ability of player to increase the prices
of its products in line with increasing raw material prices.
Strength
* Established market position: The Lakhani group, which began
operations by manufacturing hawai chappals, gradually diversified
into beach slippers, sandals, sports shoes, canvas shoes, and
leather shoes. Further, the group has strong relationships with
reputed brands such as Adidas and Maruti Suzuki for which it
manufactures sports shoes and auto rubber components,
respectively.
Benefits from the promoters' experience of around four decades
along with the group's multi-location production facilities and
strong market position should continue to support the business.
Liquidity
Liquidity should remain constrained by the large working capital
requirement as is reflected by the gross current assets of 277 days
during fiscal 2019. The bank limits utilisation remains close to
100%, while the cash & its equivalents remained at INR8 crores by
the end of fiscal 2019. The net cash accruals remained moderate at
INR20 crores, and are expected to continue at a similar level going
forward. The capex for the fiscal 2020 and 2021, largely towards
maintenance of the existing plant and machinery.
Outlook: Stable
CRISIL believes the Lakhani group will continue to benefit from an
established market position; however, the financial risk profile
will remain constrained by the large working capital requirement
Upside scenarios:
* Efficient working capital management
* Above-average profitability
Downside scenarios:
* Stretched liquidity, resulting in over-utilisation of cash
credit limit
* Steep decline in profits owing to rise in the price of raw
materials
About the Group
The Lakhani group has established the Lakhani brand in the footwear
and rubberised automotive components businesses for the past four
decades. Between fiscals 2006 and 2008, the split between Mr K C
Lakhani and his younger brother, Mr P D Lakhani, led to
re-organisation of the business and its assets. The company has
production facilities comprising two units in Faridabad (Haryana),
one in Haridwar (Uttarakhand), and one in Dhar (Madhya Pradesh).
LAKHANI RUBBER: CRISIL Raises Ratings on INR15.98cr Loan to B-
--------------------------------------------------------------
Due to inadequate information CRISIL, in line with SEBI guidelines
had migrated the ratings of Lakhani Rubber Products Private Limited
(LRPPL; a part of the Lakhani group) to 'CRISIL D/CRISIL D Issuer
Not Cooperating on March 28, 2019'. However, the group has
subsequently started sharing requisite information required for
carrying out comprehensive review of the ratings. Consequently,
CRISIL has migrated its ratings on the bank facilities of LSAPL to
'CRISIL B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Bill Purchase- 7.5 CRISIL A4 (Migrated from
Discounting 'CRISIL D ISSUER NOT
Facility COOPERATING')
Cash Credit 8.5 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 10 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Proposed Long Term 15.98 CRISIL B-/Stable (Migrated
Bank Loan Facility from 'CRISIL D ISSUER NOT
COOPERATING')
CRISIL has withdrawn its rating on LRPPL's term loan of INR2.22
crore, following the receipt of no dues certificate from the bank.
The withdrawal is in line with CRISIL's withdrawal policy.
The ratings reflect the Lakhani group's large working capital
requirement, modest financial risk profile, and average operating
efficiencies. These weaknesses are partially offset by an
established position in the footwear industry.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Lakhani Footwear Pvt Ltd, Lakhani Shoes
and Apparels Pvt Ltd, LRPPL, and Lakhani Rubber Works. This is
because these entities, collectively referred to as the Lakhani
group, are in the same business, and have common promoters, senior
management, procurement, marketing, and finance functions.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Operations are likely to
remain working capital intensive over the medium term. Gross
current assets were sizeable at 277 days as on March 31, 2019,
driven by large inventory and substantial receivables of 116 days
and 143 days, respectively. Financial flexibility is expected to
remain constrained over the medium term following the high working
capital requirement.
* Weak Financial Risk Profile: Financial Risk profile is
constrained with interest coverage remaining below 2 times over the
years. While the capital structure is supported by gearing
remaining below 1 time at March 2019, the net cash accruals to
total debt stood at 0.13 time during fiscal 2019. The financial
risk profile further remains constrained by the extensive working
capital requirement.
* Average operating efficiencies: The operating margin declined to
8.6% in fiscal 2019 from 10.5% in fiscal 2017 due to the increase
in the price of the raw materials, along with the limited
bargaining power of the company to pass on the increasing prices to
its customers. The footwear industry is highly competitive in
nature, which limits the ability of player to increase the prices
of its products in line with increasing raw material prices.
Strength
* Established market position: The Lakhani group, which began
operations by manufacturing hawai chappals, gradually diversified
into beach slippers, sandals, sports shoes, canvas shoes, and
leather shoes. Further, the group has strong relationships with
reputed brands such as Adidas and Maruti Suzuki for which it
manufactures sports shoes and auto rubber components,
respectively.
Benefits from the promoters' experience of around four decades
along with the group's multi-location production facilities and
strong market position should continue to support the business.
Liquidity
Liquidity should remain constrained by the large working capital
requirement as is reflected by the gross current assets of 277 days
during fiscal 2019. The bank limits utilisation remains close to
100%, while the cash & its equivalents remained at INR8 crores by
the end of fiscal 2019. The net cash accruals remained moderate at
INR20 crores, and are expected to continue at a similar level going
forward. The capex for the fiscal 2020 and 2021, largely towards
maintenance of the existing plant and machinery.
Outlook: Stable
CRISIL believes the Lakhani group will continue to benefit from an
established market position; however, the financial risk profile
will remain constrained by the large working capital requirement
Upside scenarios:
* Efficient working capital management
* Above-average profitability
Downside scenarios:
* Stretched liquidity, resulting in over-utilisation of cash credit
limit
* Steep decline in profits owing to rise in the price of raw
materials
About the Group
The Lakhani group has established the Lakhani brand in the footwear
and rubberised automotive components businesses for the past four
decades. Between fiscals 2006 and 2008, the split between Mr K C
Lakhani and his younger brother, Mr P D Lakhani, led to
re-organisation of the business and its assets. The company has
production facilities comprising two units in Faridabad (Haryana),
one in Haridwar (Uttarakhand), and one in Dhar (Madhya Pradesh).
LAKHANI SHOES: CRISIL Hikes Rating on INR25cr Cash Loan to B-
-------------------------------------------------------------
Due to inadequate information CRISIL, in line with SEBI guidelines
had migrated the ratings of Lakhani Shoes and Apparels Private
Limited (LSAPL; a part of the Lakhani group) to 'CRISIL D/CRISIL D
Issuer Not Cooperating on March 28, 2019'. However, the group has
subsequently started sharing requisite information required for
carrying out comprehensive review of the ratings. Consequently,
CRISIL has migrated its ratings on the bank facilities of LSAPL to
'CRISIL B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D Issuer Not
Cooperating'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .5 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Cash Credit 25.0 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 17.95 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
The ratings reflect the Lakhani group's large working capital
requirement, modest financial risk profile, and average operating
efficiencies. These weaknesses are partially offset by an
established position in the footwear industry.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Lakhani Footwear Pvt Ltd, LSAPL, Lakhani
Rubber Products Pvt Ltd, and Lakhani Rubber Works. This is because
these entities, collectively referred to as the Lakhani group, are
in the same business, and have common promoters, senior management,
procurement, marketing, and finance functions.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Operations are likely to
remain working capital intensive over the medium term. Gross
current assets were sizeable at 277 days as on March 31, 2019,
driven by large inventory and substantial receivables of 116 days
and 143 days, respectively. Financial flexibility is expected to
remain constrained over the medium term following the high working
capital requirement.
* Weak Financial Risk Profile: Financial Risk profile is
constrained with interest coverage remaining below 2 times over the
years. While the capital structure is supported by gearing
remaining below 1 time at March 2019, the net cash accruals to
total debt stood at 0.13 time during fiscal 2019. The financial
risk profile further remains constrained by the extensive working
capital requirement.
* Average operating efficiencies: The operating margin declined to
8.6% in fiscal 2019 from 10.5% in fiscal 2017 due to the increase
in the price of the raw materials, along with the limited
bargaining power of the company to pass on the increasing prices to
its customers. The footwear industry is highly competitive in
nature, which limits the ability of player to increase the prices
of its products in line with increasing raw material prices.
Strength
* Established market position: The Lakhani group, which began
operations by manufacturing hawai chappals, gradually diversified
into beach slippers, sandals, sports shoes, canvas shoes, and
leather shoes. Further, the group has strong relationships with
reputed brands such as Adidas and Maruti Suzuki for which it
manufactures sports shoes and auto rubber components,
respectively.
Benefits from the promoters' experience of around four decades
along with the group's multi-location production facilities and
strong market position should continue to support the business.
Liquidity
Liquidity should remain constrained by the large working capital
requirement as is reflected by the gross current assets of 277 days
during fiscal 2019. The bank limits utilisation remains close to
100%, while the cash & its equivalents remained at INR8 crores by
the end of fiscal 2019. The net cash accruals remained moderate at
INR20 crores, and are expected to continue at a similar level going
forward. The capex for the fiscal 2020 and 2021, largely towards
maintenance of the existing plant and machinery.
Outlook: Stable
CRISIL believes the Lakhani group will continue to benefit from an
established market position; however, the financial risk profile
will remain constrained by the large working capital requirement
Upside scenarios:
* Efficient working capital management
* Above-average profitability
Downside scenarios:
* Stretched liquidity, resulting in over-utilisation of cash credit
limit
* Steep decline in profits owing to rise in the price of raw
materials
About the Group
The Lakhani group has established the Lakhani brand in the footwear
and rubberised automotive components businesses for the past four
decades. Between fiscals 2006 and 2008, the split between Mr K C
Lakhani and his younger brother, Mr P D Lakhani, led to
re-organisation of the business and its assets. The company has
production facilities comprising two units in Faridabad (Haryana),
one in Haridwar (Uttarakhand), and one in Dhar (Madhya Pradesh).
LEUCO MICRONS: CRISIL Withdraws 'B+' Rating on INR4.5cr Loans
-------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Leuco
Microns Private Limited (LMPL) on the request of the company and
after receiving no objection certificate from the bank. The rating
action is in-line with CRISIL's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .8 CRISIL A4 (ISSUER NOT
COOPERATING; Migrated from
'CRISIL A4'; Rating Withdrawn)
Cash Credit 3.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
Rupee Term Loan 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Migrated from
'CRISIL B+/Stable'; Rating
Withdrawn)
CRISIL has been consistently following up with LMPL for obtaining
information through letters and emails dated July 30, 2019 and
August 5, 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 LMPL. 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 LMPL 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 LMPL to 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of LMPL 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.
LMPL was incorporated in 2017, promoted by Mr Harsath Balubhai
Patel and Mr Jagdish Dhajibhai Patel. The company manufactures
fledspar powder, used in ceramic tile production, at its plant in
Morbi, Gujarat, which has a capacity of 1.2 lakh tonne per annum.
The commercial operations started in January 2018.
LOOCUST INCORP: Ind-Ra Lowers Long Term Issuer Rating to 'D'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Loocust Incorp
Apparel Export Private Limited's (Loocust) Long-Term Issuer Rating
to 'IND D' from 'IND BBB'. The Outlook on the earlier rating was
Stable.
The instrument-wise rating actions are:
-- INR150 mil. (reduced from INR238 mil.) Term loans (long-term)
due on March 2022 downgraded with IND D rating;
-- INR980 mil. (increased from INR862 mil.) Fund-based facilities
(short-term) downgraded with IND D rating; and
-- INR420 mil. Non-fund-based facilities (short-term) downgraded
with IND D rating.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing of the term loan by
Loocust during the six months ended July 2019 owing to a tight
liquidity position.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months could
be positive for the ratings.
COMPANY PROFILE
Founded in 2003, Loocust is a Tirupur-based knitted garment
manufacturer and has 4,246 sewing machines across 10 production
units in and around Tirupur. Loocust acquired Sree Ambaal
Processors Private Limited in March 2015. The latter meets around
50% of Loocust's dyeing requirements.
M J HOME: CARE Assigns 'B' Rating to INR4.05cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of M J Home
Furnishing (MJHF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 4.05 CARE B; Stable Assigned
Detailed Rationale & Key Rating drivers
The rating assigned to the bank facilities of MJHF are constrained
by small scale of operations, low profitability margins and weak
overall solvency position. The rating is further constrained by
exposure to raw material price volatility and firm's presence in a
highly fragmented and competitive nature of industry. The rating,
however, takes comfort from the experience partners.
Going forward, the ability of MJHF to increase its scale of
operations profitability and to improve its overall solvency
position while efficiently managing its working capital
requirements shall remain the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weakness
Small scale of operations with low profitability margins: The scale
of operations of the firm stood small marked by a total operating
income of 3.16 crore in FY19 (Prov.). The profitability margins of
the firm stood low marked by PBILDT and PAT margin of 4.08% and
0.68%, respectively, in FY19 (Prov.) owing to trading nature of
operations.
Weak overall solvency position: The capital structure of the firm
stood weak with overall gearing ratio of 1.88x, as on March 31,
2019. The debt coverage indicators of the firm also stood weak with
the interest coverage ratio of 1.18x in FY19 (Prov.) and total debt
to GCA ratio of 133.26, as on March 31, 2019.
Exposure to raw material price volatility: The entities in textile
industry are susceptible to fluctuations in raw material prices.
The main raw material required for production is polyester yarn.
Polyester yarn is a derivative of crude oil, and hence its price is
directly correlated to the variations in global crude oil prices
which are inherently highly volatile. Therefore, the firm is
exposed to any fluctuation in the prices of polyester yarn. Any
sudden spurt in the raw material prices may not be passed on to
customers completely owing to firm's presence in highly competitive
industry.
Constitution of the entity being a partnership firm: MJHF's
constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the time
of personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factor affecting credit
decision of the lenders.
Highly competitive and fragmented nature of industry: The firm
operates in the textile manufacturing and processing industry which
is highly competitive industry with presence of numerous
independent small-scale enterprises owing to low entry barriers
leading to high level of competition in the processing segment.
Furthermore, the Indian textile industry also faces competition
from the low cost countries like China and Bangladesh. The intense
competition in the textile processing industry also restricts
ability to completely pass on volatility in input cost to its
customers, leading to lower profit margins.
Key Rating Strengths
Experienced partners: M J Home Furnishing is currently being
managed by Mr. Hemant Jain, Mr. Shubham Jain and Mrs. Asha Rani
Jain. The partners have a total work experience of 18 years, 5
years and 6 years respectively which they have gained through their
association with MDJ Taxco Fab Private Limited and Vardhman
Spinners (CARE BB-; Stable) engaged in similar line of business.
The partners have adequate acumen about various aspects of business
which is likely to benefit MJHF in the long run. Furthermore, the
partners will be supported by experienced team having varied
experience in the field of technical, marketing and finance aspects
of business.
Stretched liquidity position: The average utilization of the
working capital limits stood at 95% for the last 2 months period
ended June 2019. The liquidity position of the firm stood moderate
marked by current ratio and quick ratio stood at 2.02x and 1.85x
respectively as on March 31, 2019. The firm had free cash and bank
balance of INR0.40 crore as on March 31, 2019.
Haryana based, M J Home Furnishing was incorporated on March 28,
2015. However, the commercial operations commenced in October, 2018
and is currently being managed by Mr. Hemant Jain, Mr. Shubham Jain
and Mrs. Asha Rani Jain as its partners sharing profit and loss in
the ratio of 4:3:3. Prior to June-19, the firm was engaged in
trading of thread like polyester yarn. However, the firm has set-up
the manufacturing unit for manufacturing of grey fabric which finds
its end use in wide width bed sheets with an installed capacity of
60.26 lakh sq. meters of grey fabric per annum. The same is
operational from June-19. Besides MJHF, the partners are also
engaged in another group concern namely, MDJ Taxco Fab Private
Limited and Vardhman Spinners, based in Haryana and is engaged in
similar line of business.
MAA MUKTAKESHI: CRISIL Assigns 'B' Ratings to INR4.93cr Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Maa Muktakeshi Potato Freezing Private Limited
(MMPFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .43 CRISIL B/Stable (Assigned)
Term Loan 4.50 CRISIL B/Stable (Assigned)
The rating reflects nascent stage of operations and working capital
Intensive nature of operations. These weakness are partially offset
by extensive industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness
* Nascent stage of operations: Since the company was incorporated
in 2018, it has limited track record. Consequently, scalability is
constrained, as reflected in revenue of INR0.21 crore during fiscal
2018. Nascent stage will continue to limit scalability over the
medium term.
Strength
* Extensive industry experience of the promoters: The promoters
have an experience of over a decade in cold storage services
industry. This has given them an understanding of the dynamics of
the market, and enabled them to establish relationships with
suppliers and customers.
Liquidity
Liquidity is marked by low bank line utilization at 28% for the
past 11 months ending July 2019. The net cash accruals are expected
to be more than INR50 lakh against repayment obligation of INR40
lakh in 2019-20. The operations are supported by equity infusion
from promoters in the 2018-19 to the tune of INR1 crore.
Outlook: Stable
CRISIL believe MMPFPL will continue to benefit from the extensive
experience of its promoter, and established relationships with
clients. The outlook may be revised to 'Positive' if ramp-up in
scale of operations and stable profitability strengthen financial
risk profile. The outlook may be revised to 'Negative' if decline
in profitability or stretch in working capital cycle or large
debt-funded capital expenditure weakens capital structure.
MMPFPL was incorporated in 2018. It is Kolkata based company has
recently set up cold storage facilities for potatoes to the local
farmers as well as trading them. It is promoted by Mr. Sujit Ghosh
and Kabita Trivedi.
ONEWORLD CREATIONS: CRISIL Moves D Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Oneworld
Creations Private Limited (OCPL; part of Oneworld group) to 'CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 45 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Cash 9 CRISIL D(ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
Proposed Long Term 35 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 16 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with OCPL for obtaining
information through letters and emails dated May 20, 2019 and June
26, 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 OCPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on OCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of OCPL to 'CRISIL D Issuer not cooperating'.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
OCPL, incorporated in April 2012, trades in ready-made garments.
OIPL, ORPL, OS, UFPL, WF, TIPL, MDC, WOT, ODS, and ZF are engaged
in trading of different types of fabrics.
ONEWORLD RETAIL: CRISIL Moves D on IN52cr Loans to Not Cooperating
------------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Oneworld
Retail Private Limited (ORPL; part of the Oneworld group) to
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 28.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 15 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 8.75 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL has been consistently following up with ORPL for obtaining
information through letters and emails dated May 20, 2019 and June
26, 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 ORPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ORPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of ORPL to 'CRISIL D Issuer not cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Promoted and managed by Mr Urvil Jani and Mr Manoj Khushalani, the
Oneworld group trades in textile materials. It also sells
ready-made garments, manufacturing of which is outsourced.
Registered office is in Mumbai.
ORPL, incorporated in May 2012, trades in ladies fabric. OS, OIPL,
UFPL, WF, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of
different types of fabrics while OCPL is engaged in trading of
readymade garments.
PARAMOUNT TEXTILE: Ind-Ra Affirms Then Withdraws BB+ Issuer Rating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed and withdrawn
Paramount Textile Mills Private Limited's (PTMPL) Long-Term Issuer
Rating of 'IND BB+'. The Outlook was Stable.
The instrument-wise rating actions are:
-- The 'IND BB+' rating on the INR190 mil. Fund-based working
capital limits affirmed & withdrawn;
-- The 'IND A4+' rating on the INR75 mil. Non-fund-based working
capital limits affirmed & withdrawn;
-- The 'IND BB+' rating on the INR80.4 mil. Term loan due on
March 2023 affirmed & withdrawn; and
-- The 'Provisional IND BB+' rating on the INR20 mil. Proposed
fund-based limits affirmed & withdrawn.
Affirmed at 'IND BB+/Stable/IND A4+' before being withdrawn
Affirmed at 'IND A4+' before being withdrawn
Affirmed at 'IND BB+/Stable' before being withdrawn
Affirmed at 'Provisional IND BB+/Stable/Provisional IND A4+' being
withdrawn
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the company's lenders.
This is consistent with the Securities and Exchange Board of
India's circular dated 31 March 2017 for credit rating agencies.
Ind-Ra will no longer provide a rating and analytical coverage for
Paramount Textile Mills Private Limited.
KEY RATING DRIVERS
The affirmation reflects PTMPL's continued small scale of
operations, as indicated by revenue of INR1,365 million in FY19
(FY18: INR934 million). The revenue growth was driven by increased
contribution from made-ups and favorable currency movements. In
FY19, the made-ups segment contributed around 36.3% to the revenue;
grey fabrics accounted for the balance.
The ratings reflect PTMPL's moderate credit metrics, with net
leverage (net debt/operating EBITDA) of 1.3x (FY18: 3.3x) and
interest coverage (operating EBITDA/gross interest expense) of 3.5x
(1.9x). The metrics improved in FY19 on account of an increase in
operating EBITDA to INR148 million (FY18: INR98 million) and a
reduction in total debt to INR197 million (INR332 million).
The ratings are supported by PTMPL's adequate liquidity position.
PTMPL's working capital limits were utilized at an average of 72.1%
over the 12 months ended March 2019 and the company had unutilized
limits of INR 88.5 million as on March 2019. The cash flow from
operations turned positive at INR134 million in FY19 (FY18:
negative INR10 million), supported by the increase in operating
EBITDA and better management of the working capital cycle. PTMPL
has repayment obligations of INR30million for FY20 which would be
adequately serviced by its cash flows. The net cash conversion
cycle improved to 53 days (FY18:106 days) on account of a reduction
in debtor days (FY19: 33 days; FY18: 68 days) and inventory days
(60 days; 101 days).
The ratings continue to be supported by the healthy EBITDA margins
of the company. The margin increased to 10.8% in FY19 (FY18:
10.5%), aided by increased revenue contribution from the
high-margin made-up segment. The return on capital employed was 21%
(FY18:14%).
The ratings also take comfort from PTMPL's track record of over 30
years in the textile industry, which has resulted in strong
customer relationships.
COMPANY PROFILE
Established in 1979, PTMPL manufactures grey fabrics and made-ups
and exports them to the US and European countries. The company is
located in Madurai, Tamil Nadu.
POLYBLEND COLOURS: CARE Lowers Rating on INR5.25cr LT Loan to B+
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Polyblend Colours Concentrate (PCC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.25 CARE B+; Stable; Issuer Not
Facilities Cooperating; Revised from
CARE BB-; Stable on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from PCC to monitor the rating(s)
vide e-mail communications/letters dated June 3, 2019, July 1,
2019, August 1, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on Polyblend Colours Concentrate 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).
The rating has been revised on account of non-cooperation by PCC,
with CARE's efforts to undertake a review of the ratings
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on January 9, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Small albeit growing scale of operations: The total operating
income of the company has been growing in the range of INR9.25
crore to INR17.28 crore during FY16-FY18. However, the scale of
operations remained small with low tangible networth of INR2.65
crore as on March 31, 2018 which limits the financial flexibility
of the firm to meet any exigency.
Moderate and fluctuating profit margins with susceptibility to
volatility of the raw material prices: The profit margins of
PCC have shown fluctuating trend during past three years i.e.
FY16-FY18 on account of volatility in the prices of raw material
viz. polymers which are directly linked with crude oil prices. The
firm also offers competitive rates to the customers. The PIBLDT
margin remained in the range of 7.75%-10.70% while PAT margin stood
in the range of 1.99%-3.91% during the said period.
Leveraged capital structure and weak debt coverage indicators: The
capital structure of PCC stood leveraged with an overall gearing
stood at 2.52 times as on March 31, 2018, given the high reliance
on debt funds with small tangible networth base owing to low
capitalization during past. Given this along with moderate
profitability, the debt coverage indicators also remained
moderately weak.
Working capital intensive nature of operations: The operations of
PCC are working capital intensive in nature due to funds blocked in
inventory and debtors. However, the majority of its working capital
requirements primarily met through creditors and external debt and
hence, utilization of working capital limits stood high.
Operations in the competitive and fragmented industry: PCC is
exposed to significant competition in the domestic market from
other organized & unorganized players who are engaged in
manufacturing of masterbatches owing to low entry barriers. This is
evidently reflected in the fluctuating profit margins, since the
company is compelled to offer its products at competitive rates to
its customers.
Partnership nature of its constitution: Due to PCC being a
partnership firm, it has limited ability to raise capital as it has
restricted access to external borrowings where personal networth
and credit worthiness of partners affects decision of
prospective lenders. Further, it is susceptible to risks of
withdrawal of partners' capital at time of personal peril and poor
succession decisions may raise the risk of dissolution of the
firm.
Key Rating Strengths
Long track record of operations with highly experienced management:
PCC possesses long track record of 23 years of operations in
manufacturing of master batches, Pre- Dispersed Pigments, Mono
Concentrates, Paint & Ink Dispersion and Pre-Colored One Pack
Stabilizer. Furthermore, overall operations of the firm are looked
after by partners Mr. Suryakant B. Parmar and Dr. Mahendra B.
Parmar having more than four decades of an average experience in
the industry.
Established relationship with reputed customers and suppliers: Over
period of operations, PCC has established long-term relationships
customers and suppliers from which it receives repeated orders. The
customer and supplier base remained reputed names thereby mitigate
the counterparty risk to an extent. However, the customer profile
remained concentrated with the top 5 customers comprising 41.94% of
the net sales in FY18.
Liquidity Analysis:
The liquidity position is marked by low current ratio and quick
ratio at 1.13 times and 0.71 times respectively as on March 31,
2018 (0.99 times and 0.49 times respectively as on March 31, 2017).
Further, cash flow from operating activities stood negative at
INR2.17 crore as on March 31, 2018. The average fund based working
capital limits remained ~87% utilization during past 12 months
ended November 2018. Moreover, free cash and bank balance was
INR0.08 crore as on March 31, 2018 (vis-à-vis INR0.10 crore as on
March 31, 2017).
Polyblend Colours Concentrate (PCC) was established in 1996 as
partnership firm by Parmar family and is engaged in manufacturing
of Master batches, Pre- Dispersed Pigments, Mono Concentrates,
Paint & Ink Dispersion and Pre-Colored One Pack Stabilizer. The
firm is ISO 9001: 2000 certified entity. The products include
various types of master batches like opaque, transparent,
fluorescent, glow in dark, glitter, heat stable, pearl & metallic,
granite & marble, white & black, special master batches for fiber
extrusion, film extrusion, etc. PCC supplies pan India to various
industries viz. FMCG, Household products industry, Packaging
material industry, Furniture, etc. and procures raw material viz.
polymer, pigments, etc. majorly from Mumbai and Gujarat. The
registered office is located at Goregoan, Mumbai and manufacturing
unit is located at Dabhel, Daman.
PRITHVI MULTIPURPOSE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Prithvi Mutlipurpose Cold Storage Private Limited
Bari Bas, Sujangarh 331507
Rajasthan, India
Insolvency Commencement Date: August 28, 2019
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: February 24, 2020
Insolvency professional: Mr. Kamal Kumar Jain
Interim Resolution
Professional: Mr. Kamal Kumar Jain
315-A, Road No. 2
Shanti Nagar, Gopalpura Byepass
Durgapura, Jaipur 302018
E-mail: cakamaljain07@gmail.com
cirp.pcspl@gmail.com
Last date for
submission of claims: September 11, 2019
PRO EYETECH: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Pro Eyetech Elektrotekniks Private Limited
131, Heera Panna Complex
Dr Yagnik Road
Rajkot-Gujarat 360001
Insolvency Commencement Date: August 26, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: February 22, 2020
(180 days from commencement)
Insolvency professional: Mr. Bhupendra Singh Narayan Singh Rajput
Interim Resolution
Professional: Mr. Bhupendra Singh Narayan Singh Rajput
A-309, ATMA House
Opp. Old RBI, Ashram Road
Ahmedabad 380009
E-mail: cabsrajut309@gmail.com
Last date for
submission of claims: September 10, 2019
R. M. BETGERI: CARE Assigns B+ Rating to INR6.50cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of R. M.
Betgeri And Company (RMBC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 6.50 CARE B+; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of RMBC is tempered by
modest scale of operations with downward trend in total operating
income, financial risk profile marked by low profit margins,
moderate capital structure and weak debt coverage indicators,
working capital intensive nature of operations, fragmented nature
of operations and intense competition from other players in the
region and partnership nature as constitution with inherent risk of
withdrawal of capital. However, the rating derives comfort from
long track record of the firm and experience of the partners for
more than a decade in the spices industry, diversified customer
base and moderate geographical presence.
Going forward, ability of the firm to increase scale of operations
and profitability margins amidst competition and to improve
its capital structure, while utilizing the working capital bank
borrowings efficiently are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operations with downward trend in total operating
income (TOI): Despite of being in business for more than three
decades, the scale of operations marked by the total operating
income has declined and stood modest at INR 51.46 crore in FY18 as
compared to INR 54.59 crore in FY17. The decline in the TOI in FY18
due to low yield of Namdhari variety of chilli on back of poor
monsoon during the year. Further, the firm has registered the
TOI of INR 38.57 crore in FY19 (Prov.) due decline in the order
from Akay Flavours And Aromatics Pvt Ltd.
Financial risk profile marked by thin profit margins, leveraged
capital structure and weak debt coverage indicators: The PBILDT
margin of the firm has marginally increased by 27 bps and stood at
5.14% in FY18 as compared to 4.87% in FY17 due to marginal decline
in the raw material cost and other administration overheads.
Further, the PAT margin of the firm has decreased by 6 bps and
stood at 0.58% in FY18 as compared to 0.64% in FY17 due to marginal
increase in the finance cost on back increase in total debt
levels.
The capital structure of the firm marked by the overall gearing
ratio has deteriorated and stood at 1.76x as on March 31, 2018 as
compared to 1.01x as on March 31, 2017 due to increase in the
higher utilization of working capital borrowings during the year.
The debt coverage indicators marked by interest coverage and total
debt to GCA stood at 1.16x and 51.71x respectively in FY18 as
compared to 1.18x and 30.78x respectively as compared to FY17 due
to increase debt levels. Further, total debt to CFO stood negative
due to increase in inventory levels.
Working capital intensive nature of operations: Owing to agro based
operation which is highly dependent on vagaries of nature and
trading nature of business, the firm has high working capital
requirement. Working capital cycle of RMBC stood elongated and
stood at 183 days in FY18 as compared to 165 days in FY17 due to
increase in inventory levels because of seasonal availability of
chilli the firm need to purchase and stock throughout the year. On
the account of same the average working capital utilization stood
at 95% for last 12 months ending May 31, 2019.
Fragmented nature of operations and intense competition from other
players in the region: The Indian trading industry is highly
unorganized & fragmented in nature. Due to low entry barriers, the
trading Industry in the country is flooded with many unorganized
players. This has led to high level of competition in the industry
and players work on wafer-thin margins. The cost of goods purchased
is the major cost component for the trading industry, accounting
for about 95-97% of the sales. Availability of goods is not an
issue for the industry but procuring these goods at competitive
prices poses a challenge to maintain margins.
Partnership nature of constitution: RMBC, being a partnership firm,
is exposed to inherent risk of the partners' capital being
withdrawn at time of personal contingency and firm being dissolved
upon the death of partners. In FY 18, the partners have withdrawn
the capital to the extent of INR 2.25 crore. Moreover, partnership
firm business has restricted avenues to raise capital which could
prove hindrance to its growth.
Key Rating Strengths
Long track record of the firm and experience of the partners for
more than a decade in the spices industry: The firm has long track
record of 34 years in the industry. The partners of the firm have
an experience of more than three decades in the spice industry.
Further, due to long term presence in the market; the partners have
established good relationship with their customers and suppliers.
Diversified customer base and moderate geographical reach: RMBC has
its presence across the India through wholesale trade and major
chunk of orders are received from the state of Tamil Nadu and
Kerala. The firm has a reputed customer like Aachi Masala Foods
Private Limited, Tamil Nadu, Akay Flavours and Aromatics Private
Limited, Kerala, Manjilas Food Tech Private Limited, Tamil Nadu
etc.
Liquidity Analysis: The firm has current ratio of 1.30x as on March
31, 2018 due to increase in inventory and trade receivables during
the year. Further, the firm has cash and cash equivalents of INR
0.10 crore as on March 31, 2018. RMBC has unutilized working
capital borrowings of ~5% as on May 30, 2019.
Hubili (Karnataka) based R M Betgeri and Company (RMBC), is a
partnership firm which was established in 1984 by Mr Umesh M
Betgeri, Mr Vivekanand M Betgeri and Mr Rajashekar M Betgeri. Until
FY16, RMBC was engaged in the wholesale trading of dry chilies and
cotton. However, in FY17, RMBC discontinued the cotton trading
business. The operations of the firm are spread across India. It
procures its raw materials from farmers. All the partners are
equally involved in the day-to-day operations of the firm.
RAMKRISHNA AGRO: CRISIL Assigns 'B' Rating to INR5.51cr Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Ramkrishna Agro Products Private Limited (RAPL).
The rating reflects modest scale of operation and weak financial
risk profile. These weaknesses are partially offset by extensive
experience of promoters.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Working Capital
Facility 4.50 CRISIL B/Stable (Assigned)
Term Loan 5.51 CRISIL B/Stable (Assigned)
Bank Guarantee .15 CRISIL A4 (Assigned)
Cash Credit .73 CRISIL B/Stable (Assigned)
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operation: RAPLs business profile is constrained
by its moderate scale of operations in the intensely competitive
Diversified Support Services industry. RAPLs moderate scale of
operations will continue limit its operating flexibility.
* Weak financial profile: The financial risk profile is weak marked
by low expected networth of INR31 lakhs. Further, the TOL/TNW is
expected to be high at 35 times as on 31st March 2019. RAPL's debt
protection measures have also been at weak level in past due to
high gearing and low accruals from the operations. The interest
coverage and Net cash accrual to total debt (NCATD) ratio are
expected to be at 3.2 times and 0.15 for fiscal 2019.
Strength
* Extensive experience of promoters: Promoters' experience,
resulting in strong relationships with customers and suppliers,
should continue to benefit the business risk profile over the
medium term.
Liquidity
Liquidity is marked by moderate bank limit utilisation at around
60% in the last 13 months ended June 2019. CRISIL believes that
bank limit utilization is expected to remain moderate on account of
moderate working capital requirement. The cash accruals are
expected to be around INR1 crores against INR90 lakh of repayment
obligation in 2019-20.
Outlook: Stable
CRISIL believes RAPL will continue to benefit over the medium term
from its longstanding relationships with principals and experience
of the management to mitigate the inherent risk in the business.
The outlook may be revised to Positive if there is sustained
revenue growth over the medium term while ensuring an improvement
in financial risk profile. Conversely, the outlook may be revised
to 'Negative' if its business stagnant due to weak demand or a
stretch in receivables or pile-up of inventory adversely affects
liquidity.
RAPL incorporated in 2009, is engaged in trading of potatoes and
also provides cold storage facility for potatoes. RAPL operates a
cold storage facility with capacity of 174880 quintals (i.e 3.8
lakh packages) in Birbhum (West Bengal), mainly to provide a cold
storage facility to potato farmers and traders in Birbhum.
RELIANCE NAVAL: Facing Cash Crunch Amid Debt Restructuring
----------------------------------------------------------
Bloomberg News reports that Reliance Naval and Engineering Ltd,
controlled by Anil Ambani, said that it is facing an acute
cash-flow crunch after orders dried up, amid efforts to restructure
a pile of debt.
Bloomberg says the disclosure in the company's annual report comes
just ahead of a court hearing whether to put the debt-laden company
under insolvency proceedings, potentially dealing another blow to
the former billionaire's shrinking empire.
His wireless carrier slipped into bankruptcy earlier this year,
Bloomberg relates.
"There is an acute cash-flow crunch as the expected debt resolution
is yet to be actualised," said Debashis Bir, Chief Executive
Officer, Reliance Navals, in the report, Bloomberg relays. This is
impacting the progress of the existing projects, leading to
extended timelines and eroding the confidence amongst clients.
According to Bloomberg, the revival of the shipyard is crucial for
Ambani, who's counting on potential government defence contracts to
turn the company's fortunes around, as Prime Minister Narendra Modi
steps up spending on national security.
The government has invited bids for $2.2 billion of warships and
support vessels, part of Modi's $250-billion military modernisation
plan.
"Policy changes brought in by the government has not led to
increased shipbuilding contracts for private companies," said Bir.
Reliance Naval is facing the prospect of bankruptcy after lenders
rejected its debt repayment plan, Bloomberg News reported on Sept.
3. The firm has defaulted on a debt of over INR64.6 billion as of
March 31, to lenders including the Union Bank of India, IDBI Bank
and the Central Bank of India, Bloomberg discloses citing the
company's auditors report.
Anil Ambani's wider conglomerate is planning to dispose of assets
spanning roads to radio stations, aiming to raise about $3 billion
to help pare debt that has ballooned to about INR939 billion at
four of its biggest units - excluding the telecom business Reliance
Communications Ltd, Bloomberg notes.
Reliance Naval and Engineering Limited (NSE:RDEL) designs and
constructs warships and submarines. The Company offers offshore
patrol and research vessels, frigates, corvettes, aircraft
carriers, and destroyers, as well as piping, propeller, trilshaft,
rudder, coating, and machinery repair and maintenance services.
Reliance Naval and Engineering serves oil and gas sectors
worldwide.
SAHIL POLYPLAST: Ind-Ra Lowers Long Term Issuer Rating to 'D'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sahil Polyplast
Private Limited's (SPPL) Long-Term Issuer Rating to 'IND D (ISSUER
NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is based on the best available information. Therefore, investors
and other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR90 mil. Fund-based working capital limits (long-term/short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR35 mil. Proposed fund-based working capital limit (long-
term/short-term) downgraded with Provisional IND D (ISSUER
NOT COOPERATING) rating;
-- INR10 mil. Proposed non-fund-based working capital limit
(short-term) downgraded with Provisional IND D (ISSUER NOT
COOPERATING) rating; and
-- INR15 mil. Non-fund-based working capital limit (short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best-available information.
KEY RATING DRIVERS
The downgrade reflects delays in debt servicing by SPPL, the
details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
Established in 1997 in Delhi, Sahil Polyplast is a plastic granules
dealer in north India.
SARDA AGRO: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: M/s. Sarda Agro Oils Limited
655, Satamrai Gaganpahad Hyderabad
Telangana, India
Insolvency Commencement Date: August 27, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: February 22, 2020
Insolvency professional: Madhusudhan Rao Gonugunta
Interim Resolution
Professional: Madhusudhan Rao Gonugunta
7-1-285, Flat No. 103
Sri Sai Swapnasampada Apartments
Balkampet, Sanjeev Reddy Nagar
Hyderabad, Telangana 500038
E-mail: madhucs1@gmail.com
sardairp@gmail.com
Last date for
submission of claims: September 10, 2019
SECL INDUSTRIES: Ind-Ra Affirms 'D' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed SECL Industries
Private Limited's (SECL) Long-Term Issuer Rating at 'IND D (ISSUER
NOT COOPERATING)'. The issuer did not participate in the rating
exercise despite continuous requests and follow-ups by the agency.
Thus, the rating is based on the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR149.9 mil. Fund-based working capital limit (long-term)
affirmed with IND D (ISSUER NOT COOPERATING) rating;
-- INR190 mil. Fund-based working capital limit (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR317 mil. Non-fund-based working capital limit (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR663.8 mil. Term loan (long-term) due on March 2022
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The affirmation reflects continued delays in debt servicing by
SECL, the details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would be positive for the ratings.
COMPANY PROFILE
SECL Industries is engaged in the civil construction business as a
government contractor.
SHREE KEDARNATH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Shree Kedarnath Sugar and Agro Products Limited
Plot No. 14 A
Rachnakar Housing Society
Near Tapowan Kalamba
Kolhapur, Maharashtra 416012
Insolvency Commencement Date: August 26, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 22, 2020
Insolvency professional: Mr. Bhuvnesh Maheshwari
Interim Resolution
Professional: Mr. Bhuvnesh Maheshwari
K.G. Somani & Co., Chartered Accountants
Delite Cinema Building
Gate No. 2, 3rd Floor
Asaf Ali Road, New Delhi
Delhi 110002
E-mail: bkmrenu@yahoo.com
kgs.shreekedarnath@gmail.com
Last date for
submission of claims: September 9, 2019
SOVEREIGN INDUSTRIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: M/s. Sovereign Industries Limited
2nd Floor, Triveni Complex
Yadwad Road, Mudhol
Bagalkot, Karnataka 587313
Insolvency Commencement Date: August 23, 2019
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: February 19, 2020
(180 days from commencement)
Insolvency professional: Laxman Digambar Pawar
Interim Resolution
Professional: Laxman Digambar Pawar
Flat No. 16, First Floor
Bhakti Complex
Behind Dr. Ambedkar Statue
Pimpri, Pune 411018
Mobile: 9921516368
9422327957
E-mail: cmapawar1@gmail.com
Last date for
submission of claims: September 12, 2019
SRI RAM SPINNING: CRISIL Hikes Ratings on INR25cr Loans to B-
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Sri Ram Spinning Mills Limited (SRSM) to 'CRISIL B-/Stable' from
'CRISIL C'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.8 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
Long Term Loan 10.0 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
Proposed Cash 0.45 CRISIL B-/Stable (Upgraded
Credit Limit from 'CRISIL C')
Standby Line 1.75 CRISIL B-/Stable (Upgraded
of Credit from 'CRISIL C')
The upgrade factors in timely debt servicing by SRSM over the last
one year. The company should continue to service its debt in a
timely fashion, with cash accrual expected to remain adequate to
cover the debt obligation over the medium term.
The rating reflects the company's modest scale, susceptibility to
volatile cotton prices and adverse government regulations, and
below-average financial risk profile. These weaknesses are
partially offset by the extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Scale of operations is modest in the
highly fragmented industry: revenue is estimated at INR49 crore in
fiscal 2019 and is expected to grow marginally in the current
fiscal. Intense competition continues to constrain scalability.
* Susceptibility to availability and prices of cotton and adverse
government regulations: Operations should remain susceptible to any
sharp fluctuations in the prices of cotton, its availability, or
any adverse change in government regulations pertaining to the
industry.
* Below-average financial risk profile: Financial risk profile is
below average: networth was INR10.02 crore and gearing was 1.84
times as on March 31, 2019. Debt protection metrics are average,
with interest coverage and net cash accrual to total debt ratios of
1.55 times and 0.06 time, respectively, in fiscal 2019.
* Large working capital requirement: Operations should remain
working capital-intensive: gross current assets were above 149 days
as on March 31, 2019, driven by high inventory of 102 days.
Strength:
* Promoters' extensive experience and need-based funding support:
Benefits from the decade-long experience of the promoters in the
cotton yarn industry and healthy relationships with customers and
suppliers - resulting in uninterrupted supply of raw material and
repeat orders - should continue to support operations. The business
risk profile is further aided by need-based funds from the
promoters.
Liquidity
Liquidity is adequate: cash accrual, expected at INR1.1 crores over
the medium term, should sufficiently cover yearly debt obligation
of INR0.75 crores. Bank lines were utilised 97% over the 12 months
through July 2019, and should remain high on account of large
working capital requirement. Liquidity is further supported by
need-based equity and unsecured loans extended by the partners.
Outlook: Stable
CRISIL believes SRSM will continue to benefit from its promoters'
industry experience and established relationships with customers
and suppliers. The outlook may be revised to 'Positive' if steady
sales growth and better profitability lead to higher cash accrual.
The outlook may be revised to 'Negative' if decline in accrual;
large, debt-funded capital expenditure; or increase in working
capital requirement weakens the financial risk profile, especially
liquidity.
Incorporated in 1995, SRSM manufactures cotton yarn with counts of
30-40, with a capacity of 23,184 spindles in Hyderabad, Telangana.
SRI SRINIVASA: CARE Reaffirms B+ Rating on INR12cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sri Srinivasa Agro Rice Industries (SSARI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank (12.00) CARE B+; Stable Reaffirmed and
Facilities Removed from Issuer not
Cooperation
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SSARI continues to be
tempered by the modest scale of operations, financial risk profile
marked by thin profitability margins, leveraged capital structure
and weak debt coverage indicators, working capital intensive nature
of operations, monsoon dependent nature of operations and high
level of Government regulation, partnership nature of entity with
inherent risk of withdrawal of capital and fragmented nature of
industry. The rating also factors increase in total operating
income, improvement in capital structure along with debt coverage
indicators in FY19 (CA Certified Provisional; refers to period
April 1 to March 31).
The rating is, however, continues to derive strength from the
experienced partners in rice industry, location advantage and
healthy outlook for rice.
Going forward, the ability of the firm to improve its scale of
operations along with profitability margins, to improve its capital
structure and debt coverage indicators, efficient management of
working capital requirements are the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operations: The scale of the firm has been
fluctuating for the period due to monsoon base availability of raw
material (i.e., paddy). The total operational operations income has
grown by 84.39% to INR 62.33 crore in FY19 (CA. Certified Prov.) as
compared to INR 33.80 crore in FY18 and INR 43.34 crore in FY17 due
to increase in orders from customers.
Financial risk profile marked by thin profitability margins,
leveraged capital structure and weak debt coverage indicators
The profitability margins are fluctuating in the range of 3% to 6%
during the review period due to seasonal availability of raw
materials. The PBILDT margin has declined by 218 bps and stood at
3.67% in FY19 (CA. Certified Prov.) as compared to 5.85% in FY18
due to increase in the raw material cost on back of poor monsoon.
However, the PAT margin stood almost stable at 0.80% in FY19 (CA.
Certified Prov.) as compared to 0.81% in FY18 due to increase in
depreciation cost on back of increase in the fixed assets (i.e.,
Vehicles) during FY19(CA. Certified Prov.).
The overall gearing of the firm has improved and stood leveraged at
2.32x as on March 31, 2019 (CA. Certified Prov.) as compared to
2.41x and 3.11x respectively as on March 31, 2018 and March 31,
2017. due to increase in the net worth of the firm on back of
accretion of profits and coupled with capital infusion by the
partners.
The debt coverage indicators marked by the interest coverage ratio
and TD/GCA has improved, however, stood week at 1.96x and 12.09x
respectively in FY19 (CA Certified Prov.) as compared to 1.50x and
19.64x respectively in FY18 due to increase in cash flow on back of
revenue realization.
Working capital intensive nature of operations: Paddy in India is
harvested mainly at the end of two major agricultural seasons
Kharif (June to September) and Rabi (November to April). The
millers have to stock enough paddy by the end of each season as the
price and quality of paddy is better during the harvesting season.
During this time, the working capital requirements of the rice
millers are generally on the higher side. On account of the same,
working capital limits have been utilized up to 90% over the last
12 months ended July 31, 2019.
Monsoon dependent nature of operations and high level of Government
regulation: SSARI's operations are dependent on agro-climatic
conditions and may get adversely impacted in case of weak monsoon
or poor crop quality. The rice industry is highly regulated by the
government as it is seen as an important sector which could affect
the food security of the country. The sale of rice in the open
market is also regulated by the government through levy quota and
fixed prices. Hence, the firm is exposed to the risk associated
with fluctuation in price of rice. Furthermore, depending on the
production capacity of the firm, it has to make sales to FCI (Food
Corporation of India) at a fixed levy price. Therefore firm's
bargaining position weakens further.
Fragmented nature of industry and low entry barriers: The rice
milling business requires limited quantum of investment in
machinery, however, has high working capital needs. Further, rice
milling is not very technology intensive and as a consequence the
industry is highly fragmented with large number of players
operating in the organized and unorganized segments. The high level
of competition has ensured limiting bargaining power, as a
consequence of which rice mills are operating at low to moderate
profitability margins.
Partnership nature of entity: Partnership nature of business has an
inherent risk of withdrawal of capital by the partners at the time
of their personal contingencies. It also has the inherent risk of
business being discontinued upon the death/insolvency of a partner.
The ability to raise funds is also very low as partnership concerns
have restricted access to external borrowings. However, the
partners INR 0.61 crore during the review period.
Key Rating Strengths
Experienced partners in rice industry: Mr N Srinivas is the
Managing Partner of the firm. He along with other partners, Mr
K.Venkatesh and Mr Prabakar Gupta, has about a decade of experience
in rice mill industry.
Healthy demand outlook for rice: Rice is consumed in large quantity
in India which provides favourable opportunity for the rice millers
and thus the demand is expected to remain healthy over medium to
long term. India is the second largest producer of rice in the
world after China and the largest producer and exporter of basmati
rice in the world. With growing consumer class and increasing
disposable incomes, demand for premium rice products is on the rise
in the domestic market. Demand for non-basmati segment is primarily
domestic market driven in India. Initiatives taken by government to
increase paddy and better monsoon conditions will be the key
factors which will boost the supply of rice to the rice processing
units. Rice being the staple food for almost 65% of the population
in India, it has a stable domestic demand outlook.
Location Advantage with presence in cluster and easy availability
of paddy: The mill is located in Gangavati in Koppal District of
Karnataka. Koppal is an agriculture based economy with 2nd largest
agriculture produce in the state. Its major food crops are Paddy,
Maize, Jowar, and Bajra. Asia's first Rice Technology Park is to be
set up at Gangavati which will help the rice growers of the region
to add values to their produce and get better returns and also
enhance quality of the produce.
Liquidity Analysis: The firm has current ratio almost stable at
1.15x as on March 31, 2019 (CA Certified Prov.) as compared to
1.15x as on March 31, 2018. SSARI's quick liquid assets are in the
form of cash and cash equivalents of INR 0.68 crore as on March 31,
2019(CA Certified Prov.). Adding, the firm has liquidity cushion
with nearly 10% of working capital limits unutilized as on July
2019.
Sri Srinivasa Agro Rice Industries (SSARI), a partnership firm, was
established in 2011 by Mr N. Srinivas. The mill is located in
Gangavati in Koppal district of Karnataka. The firm is involved in
hulling of paddy, converting of paddy into rice, broken rice
and bran with a total installed capacity of 8 tons per hour. SSARI
sells its products (rice, broken rice and bran) to the end
customers through brokers as well as direct channels in the states
of Tamil Nadu and Karnataka.
SUSTAINABLE AGRO-COMMERCIAL: Ind-Ra Lowers Bank Loan Rating to BB
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has undertaken the following
rating actions on Sustainable Agro-commercial Finance Ltd's (SAFL)
debt facilities:
-- INR700 mil. Subordinated debt due on June 30, 2021, ISIN
INE511S08015 coupon rate 9% issued on March 31, 2015
downgraded; rating is downgraded to BB, maintained on
Ratings Watch Negative; and
-- INR3.265 bil. (reduced from INR3.330 bil.) Bank loans,
rating downgraded to BB, maintained on Rating Watch
Negative
Analytical Approach: Ind-Ra has taken a standalone view on SAFL to
arrive at the ratings as opposed to the support-driver view it used
to take earlier based on SAFL's linkage to its parent Jain
Irrigation Systems Limited (JISL; 'IND BB'/RWN) and SAFL's credit
strength. This change in the rating approach was due to JISL's
rating downgrade reflecting its weakening credit profile. In
Ind-Ra's view, SAFL no longer relies on the support from its
parent.
KEY RATING DRIVERS
SAFL stands exposed to contagion risk post its parent's downgrade
due to its operational linkages with the parent and its marginal
strategic importance to the parent. Ind-Ra believes due to its
modest funding diversification and contagion risk, SAFL could face
challenges while raising fresh funding and refinancing its existing
loans.
The parent directly holds 49% in SAFL and an additional 21% through
promoters and possesses a right to appoint the latter's senior
management. SAFL's board constitutes nine members, of which three
are promoter directors, who are also directors in JISL. The
chairperson of JISL's board is also the chairperson of SAFL's
board. JISL had guaranteed 33% of the sanctioned (24% of
outstanding) bank borrowing at end-July 2019.
The company was formed with a primary objective to support JISL's
sales by financing JISL's customers and gradually increasing its
share in JISL's sales. SAFL's plan to reduce its financing towards
JISL's products has weakened its strategic importance to the
parent. In terms of JISL's sales, SAFL financed around 2.3% of
JISL's customers in FY19 (primarily in micro-irrigation segment;
FY18: 4.3%). In 1QFY20, JISL'\s customers funded by SAFL formed 31%
(FY19: 33%, FY18: 59%) of its total assets under management (AUM);
the company is planning to reduce it further.
SAFL has INR1,613.5 million of equity with low leverage
(debt/equity; FY19: 1.44x, FY18: 1.42x). It increased its
borrowings to eight banks (mostly public sector banks) in FY19 from
six banks in FY18; however, the funding diversification remains
modest. SAFL's asset-liability management (ALM) statement at FYE19
did not have any mismatch in the short-term maturity buckets (up to
one year). Any significant deterioration in its asset quality,
especially as its newer products of loan against property (LAP) and
small and medium enterprise (SME) financing loan book season, could
impair its ALM.
In terms of asset quality, the gross non-performing assets' (GNPAs;
180+ days past due (dpd) ratio was slightly higher at 3.33% at
end-1QFY20 (FYE19: 2.96%, FYE18: 2.55%). However, 0+dpd stood at
16.66% at end-1QFY20 (FYE19: 14.32%, FYE18: 8.15%) impacted by
drought conditions in parts of Maharashtra, its primary operating
geography. Given that 76% of its AUM is agriculture-related,
divergences in environmental conditions including rains or severe
droughts can significantly increase its credit costs. Additionally,
SAFL has also taken on large ticket LAP (a new strategy to grow in
the non-agri space) inducing concentration risk (1QFY20: 24% of the
total AUM) in its fledgling non-agri portfolio. Despite its
presence in Maharashtra, Madhya Pradesh and Karnataka, SAFL's
portfolio remain concentrated in Maharashtra (1QFY20: 82% of the
total AUM, FY19: 90%, FY18: 90%), exposing it to geographical
concentration risk. Thus, Ind-Ra expects the company to maintain
moderate leverage.
SAFL's return on average assets (FY19: 1.4%, FY18: 2.1%, FY17:
2.1%) and return on average equity (3.4%, 4.9%, 4.1%) are modest.
The decrease in profitability in FY19 was mainly due to an increase
in operating costs (FY19 cost to income ratio: 72.4%, FY18: 66.7%),
which may reduce with growth in the company's scale of operations
and an improvement in the operating leverage, thus increasing its
profitability.
RATING SENSITIVITIES
The RWN indicates that the ratings would either be downgraded or
affirmed. The agency will monitor the developments on the parent's
rating that could help resolve the RWN. Any material manifestation
of the contagion risk on account of further rating actions on the
parent could have a bearing on SAFL's ratings. A negative rating
action could also result from stretched liquidity, inability to
raise funds and diversify funding lines, increase in delinquencies
along with the weakening of profitability and reducing capital
buffers.
COMPANY PROFILE
SAFL is a Mumbai-based non-banking finance company providing
agriculture and allied financial services. International Finance
Corporation Washington and Mandala Capital AG Limited hold 10% and
20% stake in SAFL, respectively.
VIDEOCON TELECOM: CARE Moves 'D' Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Videocon
Telecommunication Limited (VTL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2,562.50 CARE D; Issuer not cooperating;
Facilities- Based on best available
Term Loan Information
Long Term Bank 644.92 CARE D; Issuer not cooperating;
Facilities-BG Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 7, 2018, placed the
ratings of VTL under the 'Issuer not cooperating' category as
Videocon Telecommunication Limited had failed to provide
information for monitoring of the ratings as agreed to in its
rating agreement. Videocon Telecommunication Limited continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
July 31, 2019. 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 of Videocon Telecommunication Limited bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
There are ongoing delays by Videocon Telecommunication Limited in
servicing debt obligation as per publically available information.
Videocon Telecommunication Limited (VTL) was incorporated as
Datacom Solutions Private Limited on June 07, 2007 and in 2009 was
renamed as Videocon Telecommunications Limited. VTL is a Videocon
Group company; the flagship company of the group is Videocon
Industries Limited. During H1FY17, VTL has closed its GSM business.
VTL had entered into agreement to transfer right to use of its
spectrum to Bharti Airtel Limited in all the six circles in FY16.
The transaction was completed in May-2016. VTL also has National
Long Distance (NLD)/International Long Distance (ILD) license which
allows the company to offer long distance domestic as well as
international calls across India.
===============
M A L A Y S I A
===============
SCOMI GROUP: Submits PN17 Waiver Application to Bursa Malaysia
--------------------------------------------------------------
Emir Zainul at theedgemarkets.com reports that Scomi Group Bhd has
submitted a Practice Note 17 (PN17) waiver application to Bursa
Malaysia on Sept. 3.
According to the report, Scomi said the company had triggered the
PN17 criteria as its shareholders' equity spread was less than 25%
of its issued share capital and the equity dropped below MYR40
million, based on its financial results for the quarter ended June
30, 2019.
Scomi incurred a loss of MYR250.5 million for the quarter, with its
losses in the oilfield services segment rising by MYR20.7 million
compared with a year ago, mainly due to a lower gross profit and
higher operating expenses, theedgemarkets.com discloses.
Its corporate segment included loss on net effect of
deconsolidation of subsidiaries of MYR184.4 million and related
adjustments of MYR38 million as a result of the deconsolidation.
Additionally, there was also an MYR8.7 million impairment of
investment in jointly-controlled entities during the period,
according to the report.
Scomi recently changed its financial year end to June 30, from
March 31 previously, theedgemarkets.com notes.
theedgemarkets.com adds that following the results announcement on
Aug. 30, Scomi's external auditors Messrs KPMG PLT had expressed
material uncertainty relating to the going concern of the company.
For the financial year ended March 31, 2019 (FY19), Scomi managed
to narrow its losses by 72.4% to MYR43.95 million from MYR159.39
million in the previous year, while revenue stayed flat at
MYR132.07 million against MYR132.32 million, theedgemarkets.com
discloses.
Headquartered in Kuala Lumpur, Malaysia, Scomi Group Bhd --
http://www.scomigroup.com.my/publish/home.shtml-- provides
drilling fluids and mud engineering services and the supply of
industrial and production chemicals to the upstream and downstream
oil and gas industry.
=====================
N E W Z E A L A N D
=====================
STANLEY GROUP: Shareholders Put Building Company Into Liquidation
-----------------------------------------------------------------
Stuff.co.nz reports that Auckland and Waikato building company
Stanley Group and related company Tallwood have been liquidated.
The companies were placed into liquidation on Aug. 29 after a vote
by shareholders, the Companies Office showed, Stuff relates.
The business has about 100 staff and is headquartered in Takapuna
with a factory and office in Matamata. It had three projects
underway for Housing New Zealand in Mangere, Hamilton and
Whakātane.
It is understood Stanley Group got into financial trouble after it
under-quoted for work with Housing New Zealand, according to
Stuff.
It was building The Grounds apartments in Hobsonville, a
42-apartment development in the Auckland region, and the Richmond
Villas in Thames.
Its completed projects included the Showcase moveable buildings in
the Britomart precinct, University Hall at Auckland University, the
Albany Senior High School and it built a new wing at the Chateau
Tongariro.
A creditor, who Stuff has agreed not to name, said he expected the
company would owe millions. The creditor's business would likely be
owed about $150,000 for staff it had supplied to the group's sites,
Stuff relays.
It is understood meetings were being held at the Auckland
headquarters and Matamata sites with liquidator Waterstone
Insolvency on Aug. 29.
Stanley Group's website has now been taken offline, Stuff notes.
TOWER CRANES: Crane Hire Company Placed in Receivership
-------------------------------------------------------
NZ Herald reports that Auckland crane hire company Tower Cranes NZ
has been placed in receivership.
Lara Bennett, a receiver at PwC, told the Herald she had been
appointed at the request of the company's director.
The Herald relates that Ms. Bennett said she was focused on the
welfare of the company's approximately 90 staff and securing
equipment.
According to the Herald, Ms. Bennett said she could not comment on
the next step for the company as it was too early in the
receivership.
The company has cranes at more than 10 sites, but fewer than 20,
Ms. Bennett said.
Tower Cranes NZ has offices in Auckland and Wellington. Their
services include tower, mobile and crawler crane hire and tower
crane rigging, electrical repairs and servicing.
=================
S I N G A P O R E
=================
INTER-PACIFIC GROUP: Deloitte Named as Interim Judicial Manager
---------------------------------------------------------------
Reuters reports that accountancy firm Deloitte & Touche said on
Sept. 5 it has been appointed by Singapore's high court to act as
interim judicial manager for marine fuel supplier Inter-Pacific
Group Pte (IPG) in an application for a court-led debt
restructuring process.
Reuters relates that the appointment, following a nomination by
IPG, comes more than two months after IPG unit Inter-Pacific
Petroleum Pte (IPP) had a licence to operate bunker fuel tankers
suspended by Singapore's Maritime Port Authority (MPA). The MPA
detected operational irregularities during an inspection, the
report says.
Following the suspension, "There was a significant cash flow
crunch, such that there is insufficient cash to sustain (IPP)
operations," according to an affidavit reviewed by Reuters, filed
to the court on Aug. 20 on behalf of the company's director and
majority shareholder, Hong Kong-based Cheung Lai Na.
IPP's outstanding liabilities totalled more than $168.5 million,
according to the affidavit cited by Reuters.
Deloitte didn't confirm the scale of IPP's liabilities, Reuters
states.
IPP's directors were hopeful that placing the company under
judicial management would, among others, give it time to negotiate
with the MPA to lift the suspension of the bunker licence and
resume cash flows, the document, as cited by Reuters, said.
Responding to a Reuters' request for comment, the MPA said it is
not in negotiation with IPP and is still investigating the case.
"While Inter-Pacific's bunker craft operator licence has been
temporarily suspended by MPA, the company can continue to operate
their bunker supplier business by engaging other licensed bunker
craft operators to supply bunker to buyers," the MPA said, Reuters
relays.
Inter-Pacific also holds a bunker fuel supplier licence in
Singapore, the world's largest bunkering hub. In 2018, the company
was the 26th-largest supplier by volumes delivered out of 51 other
operators, according to the MPA.
*********
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
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*** End of Transmission ***