/raid1/www/Hosts/bankrupt/TCRAP_Public/191127.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, November 27, 2019, Vol. 22, No. 237
Headlines
A U S T R A L I A
ENDEAVOUR SECURITIES: ASIC Bans Former Director for 5 Years
LOFTUS COMPUTING: First Creditors' Meeting Set for Dec. 4
METALS X: Suspends Operations at Nifty Mine; To Axe 290 Jobs
MILLENNIUM MINERALS: First Creditors' Meeting Set for Dec. 4
NICOLAS CRINITI: First Creditors' Meeting Set for Dec. 4
OZIFIN TECH: Earned AUD11 Million From Client Losses
REFRIGERATION SOLUTIONS: First Creditors' Meeting Set for Dec. 4
SALT DESIGN: First Creditors' Meeting Set for Dec. 4
UNIVERSITY CO-OPERATIVE: Enters Voluntary Administration
UNIVERSITY CO-OPERATIVE: First Creditors' Meeting Set for Dec. 4
C H I N A
TEWOO GROUP: ICBC to Cover Almost $8MM of Interest on Dollar Bond
ZHONGHUA CERTIFIED: Gets 2 Mos. Suspension Over Clients' Misconduct
I N D I A
A SCHOOL INDIA: Insolvency Resolution Process Case Summary
ADAAB HOTELS: Insolvency Resolution Process Case Summary
ADITI OIL: Insolvency Resolution Process Case Summary
ANGLE INFRASTRUCTURE: CARE Maintains 'D' Rating in Not Cooperating
AQUA MARINE: Insolvency Resolution Process Case Summary
BLACK DIAMOND: Insolvency Resolution Process Case Summary
CANADIAN CRYSTALLINE: Insolvency Resolution Process Case Summary
COSTRA ADVERTISING: Insolvency Resolution Process Case Summary
DATAWIND INNOVATIONS: Insolvency Resolution Process Case Summary
DECCAN HYDERABAD: CARE Maintains 'D' Rating in Not Cooperating
DEWAN HOUSING: Lenders to Make Provisions for Exposure
DOLPHIN TERRA: CARE Maintains 'B' Rating in Not Cooperating
EMCO ELECTRODYNE: CARE Maintains 'D' Rating in Not Cooperating
GOYALA INFRAS.: Insolvency Resolution Process Case Summary
HORIZON BUILDCON: Insolvency Resolution Process Case Summary
INDIAN GEM: Insolvency Resolution Process Case Summary
KAMRAN EXPORTS: CARE Reaffirms 'D' Rating on INR30cr LT Loan
KANJI KALYANJI: CARE Maintains 'B' Rating in Not Cooperating
KUNAL FOUNDERS: CARE Maintains 'B' Rating in Not Cooperating
LUSTERLEAF INFOTECH: Insolvency Resolution Process Case Summary
MBS IMPEX PRIVATE: Insolvency Resolution Process Case Summary
MOON DIAMONDS: CARE Lowers Rating on INR17cr LT Loan to 'B+'
NIRVIN COLD: CARE Maintains 'B' Rating in Not Cooperating
NUI PULP: Insolvency Resolution Process Case Summary
OZONE GSP: CARE Maintains 'D' Rating in Not Cooperating
P.G. MICRO SYSTEMS: Insolvency Resolution Process Case Summary
PARASMAL KHASGIWALA: CARE Reaffirms B Rating on INR6.6cr Loan
PREMIER AGENCIES: CARE Cuts Rating on INR7cr LT Loan to 'B+'
PURE LIFE: Insolvency Resolution Process Case Summary
RADIANT BIZCOM: Insolvency Resolution Process Case Summary
RATNAWALI DAIRY: CARE Reaffirms B Rating on INR5.62cr Loan
ROMA SHIPPING: Insolvency Resolution Process Case Summary
S.P.M. LTD (INDIA): Insolvency Resolution Process Case Summary
SAI KRISHNODAYA: Insolvency Resolution Process Case Summary
SALASAR BALAJI: CARE Lowers Rating on INR15cr LT Loan to B+
SAM INDUSTRIAL: CARE Lowers Rating on INR7.50cr Loan to 'C'
SBS TRANSPOLE: CARE Reaffirms D Rating on INR100cr LT Loan
SHUBHAM INDUSTRIES: Insolvency Resolution Process Case Summary
SIDDHI VINAYAK: CARE Lowers Rating on INR6cr LT Loan to 'D'
SRI RAMACHANDRA: CARE Reaffirms B+ Rating on INR7.0cr LT Loan
V.A.M. RESORTS: Insolvency Resolution Process Case Summary
VASAVI POWER: CARE Maintains 'D' Rating in Not Cooperating
VASUDEV KHANDSARI: CARE Assigns 'B' Rating to INR4.0cr LT Loan
VICTRONICS COMMUNICTATIONS: Insolvency Resolution Case Summary
WADHAWAN GLOBAL: Insolvency Resolution Process Case Summary
WINDCASTLE EXPORTS: Insolvency Resolution Process Case Summary
N E W Z E A L A N D
HALIFAX NZ: Liquidator Urges Investors to Come Forward
P H I L I P P I N E S
BMS RURAL: Ex-President, Officers Charged for Fictitious Loans
S I N G A P O R E
HYFLUX LTD: Inks SGD400 Million Rescue Deal with Utico
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A U S T R A L I A
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ENDEAVOUR SECURITIES: ASIC Bans Former Director for 5 Years
-----------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
banned Paul Nielsen, a former director of Endeavour Securities
(Australia) Ltd and Linchpin Capital Group Ltd, from providing any
financial services for a period of five years.
In March 2019, ASIC obtained orders in the Federal Court against
Linchpin and Endeavour for contravening multiple provisions of the
Corporations Act while operating two managed investment schemes,
both called 'Investport Income Opportunity Fund'.
ASIC has banned Mr. Nielsen for his role in the operation of the
managed investment schemes by Linchpin and Endeavour.
ASIC found Mr. Nielsen's conduct in approving the investment of
funds of the Investport Income Opportunity Fund in related entities
constituted multiple contraventions of the Corporations Act.
In particular, Mr. Nielsen:
-- failed to act in the best interests of the members of the
Investport Income
Opportunity Fund; and
-- used his position as an officer of the companies to gain an
advantage for
other persons and cause detriment to members of the
Investport Income
Opportunity Fund.
ASIC found Mr. Nielsen did not understand the importance of the
duties of a director to protect members of registered schemes and,
as a result, his conduct put significant amounts of other people's
money at risk.
The banning order for Mr. Nielsen has been recorded on ASIC's
publicly available Banned and Disqualified Register.
On March 15, 2019, the Federal Court of Australia made orders that
Endeavour and Linchpin contravened multiple provisions of the
Corporations Act. As a result, the court ordered the winding up of
Endeavour, Linchpin and the two Investport Income Opportunity
Funds.
Jason Tracy and David Orr from Deloitte have been appointed as
liquidators of the entities. Investors and creditors should direct
their enquiries to: linchpin@deloitte.com.au.
LOFTUS COMPUTING: First Creditors' Meeting Set for Dec. 4
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Loftus
Computing Services Pty Ltd will be held on Dec. 4, 2019, at 10:00
a.m. at the offices of Hall Chadwick Chartered Accountants, Level
21, at 25 Grenfell Street, in Adelaide, South Australia.
Brent Kijurina and Joanne Keating of Hall Chadwick were appointed
as administrators of Loftus Computing on Nov. 22, 2019.
METALS X: Suspends Operations at Nifty Mine; To Axe 290 Jobs
------------------------------------------------------------
Shriya Ramakrishnan at The Sydney Morning Herald reports that
Australian copper miner Metals X announced on Nov. 26 it will
immediately suspend operations at its Nifty copper mine in Western
Australia following an operational review.
SMH relates that Metals X, which acquired Nifty in 2016 through the
takeover of Aditya Birla Minerals, said the suspension would lead
to about 290 job losses and that it was in discussions with those
affected by the changes.
According to the report, the miner said production at Nifty had
"plateaued" in recent weeks, and the review identified that it was
unlikely to achieve planned production at an acceptable cost and
within its previously expected timeframe.
The suspension comes nearly two weeks after the company initiated a
review and flagged weakness in production at the mine for the
December quarter, the report says.
"The operation is not where it was expected to be at this stage of
the Reset Plan and following the operational review, the increased
uncertainty in the plan leaves us with no viable alternative," SMH
quotes Managing Director Damien Marantelli as saying.
SMH adds that the company said the decision to shut Nifty would
allow it to focus on its Renison Tin Operations in Tasmania, in
which it has a 50% stake through the Bluestone Mines Tasmania joint
venture.
Shares of Metals X slumped 13% to a record low in early trading,
while the broader market was nearly 1% higher, the report notes.
Metals X Limited engages in exploring and developing metal and
mineral properties in Australia.
MILLENNIUM MINERALS: First Creditors' Meeting Set for Dec. 4
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Millennium
Minerals Limited will be held on Dec. 4, 2019, at 1:00 p.m. at
Perth Convention and Exhibition Centre, Level 2, River View Room 4,
at 21 Mounts Bay Rd, in Perth, WA.
Matthew Donnelly and Richard Hughes of Deloitte were appointed as
administrators of Millennium Minerals on Nov. 24, 2019.
NICOLAS CRINITI: First Creditors' Meeting Set for Dec. 4
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Nicolas
Criniti Pty Ltd will be held on Dec. 4, 2019, at 11:00 a.m. at the
offices of Condon Associates, Level 6, at 87 Marsden Street, in
Parramatta, NSW.
Schon Gregory Condon of Condon Associates was appointed as
administrator of Nicolas Criniti on Nov. 22, 2019.
OZIFIN TECH: Earned AUD11 Million From Client Losses
----------------------------------------------------
Colin Kruger at The Sydney Morning Herald reports that customers of
Ozifin Tech, the iSignthis client wound up by the corporate
regulator last month, collectively lost more than AUD11 million in
the seven months to April last year when it was then effectively
shut down.
The Australian Securities and Investments Corporation (ASIC) has
accused Ozifin of running a scheme whereby it only made money when
its 5,300 customers made a loss from trading contracts for
difference (CFD) and foreign exchange on its platform, SMH relates
that court submission filed last month by liquidators appointed to
Ozifin.
"It was necessary for the client's position to move adversely to
the client in order for Ozifin to generate revenue," said the court
document citing ASIC's allegations of the "unconscionable system"
employed by Ozifin, SMH relays.
"Ozifin's purpose or alternatively a significant purpose of Ozifin
was to increase the amount of money that clients deposited to
trading accounts and maximise the amount that the clients lost and
Ozifin gained," it said.
According to the report, the court action related to ASIC's
successful attempt to wind up the company - along with another
iSignthis customer OT Markets. The regulator accused the two
companies, and AGM Markets, of engaging in conduct that was
"misleading or deceptive, and/or unconscionable".
Queries by the ASX revealed that Ozifin and OT Markets accounted
for more than one-quarter of the revenue iSignthis generated during
the June 2018 half year which triggered the release of hundreds of
millions of dollars worth of shares to iSignthis insiders, SMH
discloses.
The controversial billion-dollar tech stock remains suspended from
trading while the market operator's enquiries continue, the report
notes.
iSignthis markets itself as a provider of automated payment
verification services to clients such as contracts for difference
providers and forex dealers so they can meet "know your client"
requirements under anti-money laundering regulations.
iSignthis has not been implicated in ASIC's attempt to wind up its
two former clients.
In its submission to the court, Ozifin's liquidators - lead by
Richard Albarran - conceded to "many of the allegations" of
misleading or deceptive and unconscionable conduct by ASIC, SMH
says.
SMH relates that the liquidators also stated they believe Ozifin,
which traded under the name Trader Q, is insolvent.
According to SMH, the document reveals the tight links between
Ozifin, OT Markets and AGM Markets with ASIC alleging that "Ozifin
dealt in derivatives and provided financial product advice to
retail customers in Australia on behalf of AGM".
It was necessary for the client's position to move adversely to the
client in order for Ozifin to generate revenue.
It also reports that money paid to Ozifin was then "paid to
accounts maintained by AGM" which provided Ozifin's training and
compliance.
ASIC claimed the account managers, who used "stage names" in their
dealings with clients, "were in direct conflict with clients," and
said Ozifin clients lost more than AUD11 million from October 2017
onwards.
ASIC commenced legal action to wind up Ozifin, AGM Markets and OT
Markets in February 2018, the report notes.
In April that year, AGM Markets - which owned the Australian
Financial Services Licence (AFSL) under which Ozifin and OT Markets
traded - terminated its agreement with the two companies. It
effectively put them out of business, SMH discloses.
SMH says two Israelis who were found to be the "controlling minds"
behind AGM Markets, Yakov Cohen, 27 and Yosef Herzog, 54 have each
been charged with one count of conspiracy to commit fraud and three
counts of wire fraud by the US Justice Department in relation to
online trading scams allegedly run by Israeli-based company Yukom.
According to ASIC submissions to the court to shut down AGM, OziFin
and OT Markets, the three companies "transferred large sums of
money from bank accounts in Australia to companies and people
overseas," SMH relays.
This included companies associated with Mr. Cohen and Mr. Herzog.
REFRIGERATION SOLUTIONS: First Creditors' Meeting Set for Dec. 4
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Refrigeration Solutions Pty Ltd will be held on Dec. 4, 2019, at
11:00 a.m. at Suite 19.03, Level 19, at 31 Market Street, in
Sydney, NSW.
Desmond Teng and Gavin Moss of Chifley Advisory were appointed as
administrators of Refrigeration Solutions on Nov. 22, 2019.
SALT DESIGN: First Creditors' Meeting Set for Dec. 4
----------------------------------------------------
A first meeting of the creditors in the proceedings of Salt Design
And Construction Pty Ltd will be held on Dec. 4, 2019, at 10:30
a.m. at the offices of Menzies Advisory, 68-72 York Street, in
South Melbourne, Victoria.
Michael Caspaney of Menzies Advisory was appointed as administrator
of Salt Design on Nov. 22, 2019.
UNIVERSITY CO-OPERATIVE: Enters Voluntary Administration
--------------------------------------------------------
Max Koslowski and Nick Bonyhady at The Sydney Morning Herald report
that the company behind famous retail brands Australian Geographic
and the Co-op bookshop has entered voluntary administration owing
more than AUD15 million to toy sellers and publishers.
According to SMH, the administrators, PwC's Phil Carter, Andrew
Scott and Daniel Walley, confirmed they were investigating payments
made to a major supplier, controlled by Co-op chief executive
Thorsten Wichtendahl, which received more than AUD500,000 in
advance for goods not yet supplied.
Discussions with administrators ramped up after The Sydney Morning
Herald and The Age last week revealed suppliers to the Co-op
bookshop - which owns both the staple university bookstore and
Curious Planet, formerly known as Australian Geographic - were owed
more than AUD12 million and "nervous" that six-figures debts
overdue by more than 90 days would go unpaid, SMH relates.
Co-op bookshop chairman Joe Merhi said weak sales left the board
with no choice but to appoint an administrator late on Sunday night
[Nov. 24], SMH relays.
"The combination of weak retail trading figures coming up to
Christmas and the collapse of 'over the counter text book' sales by
over 40%from last year, has left the board with no alternative but
to appoint a voluntary administrator to help this proud
organisation through this period of time," the report quotes Mr.
Merhi as saying.
Former Macquarie University vice-chancellor Dianne Yerbury, another
director, described administration as a "difficult but necessary
decision," SMH says.
According to SMH, administrator Phil Carter said there were still
hopes the company, which has more than 180 staff, over 300
suppliers and doubles as Australia's largest co-operative with a
self-reported 2 million active members, could be sold.
"We intend to keep all Co-op bookshop and Curious Planet stores
operating on a business as usual basis while we seek interested
parties for the sale of the business on a going concern basis," he
said, adding that several buyers had been in contact since the
company entered voluntary administration, SMH relays.
SMH says Curious Planet was described as an "iconic" Australian
business with a strong subscriber base and omni channel retail
strategy in flyers sent to prospective buyers two weeks ago.
But internal documents painted a weaker picture, with suppliers
owed AUD12.6 million at the beginning of November, of which AUD8.8
million was owed for stock delivered and services rendered at least
90 days prior.
One supplier, textbook publisher John Wiley & Sons, was owed more
than AUD1 million, and 26 suppliers were owed more than AUD100,000
each, SMH discloses.
The University of Western Australia and the Sydney University Sport
and Fitness Centre were owed six figures, as were Australia Post
and wholesale toys giant Independence Studios, SMH adds.
The University Co-operative Bookshop Limited trading as The Co-op
is Australia's largest member-owned retailer. It provides tertiary
and professional educational resources which students can access
online and at university campuses around Australia.
UNIVERSITY CO-OPERATIVE: First Creditors' Meeting Set for Dec. 4
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of University
Co-operative Bookshop Limited, also trading as Curious Planet,
and Co Info Pty Ltd will be held on Dec. 4, 2019, at 11:00 a.m. at
Portside Conference Centre, 207 Kent St, in Sydney, NSW.
Andrew Scott, Philip Patrick Carter and Daniel Austin Walley of
PricewaterhouseCoopers were appointed as administrators of
University Co-operative on Nov. 24, 2019.
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C H I N A
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TEWOO GROUP: ICBC to Cover Almost $8MM of Interest on Dollar Bond
-----------------------------------------------------------------
Wu Hongyuran and Denise Jia at Caixin Global report that a Chinese
state-owned bank will pay nearly $8 million of interest on behalf
of a distressed state-owned enterprise that it backed in an
offshore dollar bond issuance.
Industrial and Commercial Bank of China Ltd. (ICBC), one of the
China's "big four" state-owned commercial banks, transferred $7.875
million to pay interest due Dec. 1 on Tewoo Group Co.'s $500
million, dollar-denominated bond issued in 2017 in Singapore, after
the Tianjin-based commodities trader said it couldn't guarantee
repayment itself, the company said in a filing with the Singapore
stock exchange on Nov. 19, Caixin relays.
Caixin relates that ICBC, as the company's biggest lender with
nearly CNY20 billion ($2.85 billion) of loan exposure, provided a
standby letter of credit for the bond, ensuring payment will be
made if the issuer can't do so. Usually such a letter is a payment
of last resort from the bank and ideally is never meant to be
used.
Tewoo Group, wholly owned by the Tianjin government, is one of
China's top commodity traders and has been a Fortune Global 500
company since 2012. Like many government-backed commodities
traders, Tewoo has been taking advantage of easy access to bank
loans to provide financing for steel buyers or steelmakers, earning
commissions on such deals, the report says.
This business model plunged Tewoo into debt trouble after Bohai
Steel Group Co. Ltd., one of the steelmakers with which it had
close business ties, fell into a debt crisis and collapsed,
according to Caixin. The company accumulated CNY221 billion of
total liabilities by the end of 2018, accounting for more than 80%
of total assets, Caixin learned.
In April, Fitch Ratings downgraded Tewoo's foreign debt to B-, a
junk level, and cut the company's credit rating to CCC+, citing
liquidity concerns, Caixin discloses. Fitch also lowered its rating
of the Tianjin government's guarantee to Tewoo by one notch to
moderate.
Earlier this year, the Tianjin government to stabilize the
company's liquidity asked banks not to withdraw or restrict their
loans to Tewoo, Caixin recalls. However, because there hasn't been
any formal solution to the company's debt woes, banks have been
reluctant to increase their loan exposure. Several of Tewoo's
subsidiaries have defaulted on some debts, Caixin notes.
According to Caixin, Tewoo also faces a lawsuit related to its debt
dispute with a steelmaker. In September, a subsidiary of Taiyuan
Iron and Steel Group sued a financial subsidiary of Tewoo,
requesting repayment of a CNY100 million debt.
Tewoo is also trying to sell assets to raise cash, the report adds.
It has listed four properties for sale since August, including a
minority stake in a luxury hotel in Tianjin.
Although Tewoo doesn't have sufficient effective assets to cover
its debts, it's unlikely to enter liquidation due to regional
risks, Caixin learned from exclusive sources. The Tianjin
government and multiple creditors have not reached an agreement on
an initial debt restructuring plan, Caixin relates citing the
sources.
ZHONGHUA CERTIFIED: Gets 2 Mos. Suspension Over Clients' Misconduct
-------------------------------------------------------------------
Wang Juanjuan and Timmy Shen at Caixin Global report that a midsize
accounting firm is in trouble for allegedly failing to perform
proper due diligence on some of its past audits, as regulators
continue to deepen supervision over financial gatekeepers of listed
companies.
Regulators have ordered Shanghai-based Zhonghua Certified Public
Accountants LLP to suspend taking on any new securities business
for two months starting from Oct. 28, as it has been penalized
twice this year for failing to properly perform its auditing duties
for two listed companies, both of which inflated financial figures
in their regular reports, Caixin relates citing a joint notice
released on Nov. 25 by the Ministry of Finance and the China
Securities Regulatory Commission (CSRC). The regulators also
ordered the auditor to take step to make sure the same problems
don't happen again, which is called "rectification" in
official-speak.
A person in the auditing industry told Caixin that this is the time
of year in which that many listed companies hire auditors, so the
suspension is a significant punishment for Zhonghua.
After Zhonghua completes its rectification, the regulators will
conduct an inspection and decide whether it can resume taking on
new business, they said in the notice, the report says. Meanwhile,
during the rectification and inspection, the accounting firm's
major partners, including the chief partner and those in charge in
auditing and quality control, as well as the major accountants
involved in auditing the two listed companies' financial reports,
are not allowed to resign or switch to another accounting firm, the
notice, as cited by Caixin, said.
The regulatory move came after Zhonghua failed to properly perform
due diligence for two of its clients, according to the regulators,
Caixin relays. One client, Shenzhen-listed Jiangsu Yabaite
Technology Co. Ltd., was found to have inflated revenue and profit
by CNY580 million ($82.53 million) and CNY260 million,
respectively, from the beginning of 2015 to September 2016,
according to a CSRC statement cited by Caixin. For 2015, the
company overstated its profit by about CNY230 million, which was
about 73% of its reported profit for the year, the statement said.
Zhonghua, in this case, did not perform its due diligence properly,
the CSRC said in its May decision. It fined the firm a total of
CNY1.74 million and confiscated an auditing fee of CNY540,000, as
well as illegal earnings of CNY120,000, according to Caixin.
Another Zhonghua client was also caught inflating financial
figures, the report says. In May 2018, the securities regulator
fined Shenzhen-listed Ningbo Sunlight Electrical Appliance Co. Ltd.
CNY600,000 for inflating its 2015 pre-tax profit by CNY20 million,
Caixin discloses citing a stock exchange filing.
Sunlight Electrical's 2015 report was audited by Zhonghua, but the
auditor failed to identify the misconduct and was fined by the
CSRC, Caixin states.
In 2018, Zhonghua pocketed CNY142 million from its securities
businesses, ranking 20th among 40 accounting firms that have a
license to conduct securities business on the Chinese mainland,
according to a CSRC document released earlier this month, add
Caixin.
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I N D I A
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A SCHOOL INDIA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: A School India Private Ltd
Rani Seethai Hall
7th Floor No. 603
Anna Salai Chennai 600006
Insolvency Commencement Date: November 8, 2019
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: May 6, 2020
Insolvency professional: Mr. S.R. Krishnan
Interim Resolution
Professional: Mr. S.R. Krishnan
6, Khabag Castle
3B, Circular Road
Kodambakkam
Chennai 600024
E-mail: krishnansroman@gmail.com
Last date for
submission of claims: November 22, 2019
ADAAB HOTELS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: ADAAB Hotels Limited
81, Sri Aurobindo Marg
Adchini, New Delhi 110017
Insolvency Commencement Date: November 6, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 3, 2020
Insolvency professional: Atul Kumar
Interim Resolution
Professional: Atul Kumar
B-17 4th Floor
Jangpura Extn
New Delhi 110014
Mobile: 981431518
E-mail: atuladv@gmail.com
Last date for
submission of claims: November 20, 2019
ADITI OIL: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Aditi Oil Extraction Private Limited
Diamond Chambers, Block III
Suite No. 6E
4C Chowringhee Lane Kolkata
West Bengal
Insolvency Commencement Date: October 24, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: April 21, 2020
(180 days from commencement)
Insolvency professional: Debashis Nanda
Interim Resolution
Professional: Debashis Nanda
CS-14, C-Floor, Ansal Plaza
Vaishali Ghaziabad
Uttar Pradesh 201010
E-mail: dnanda.cma@gmail.com
ip.aoepl@gmail.com
Last date for
submission of claims: November 25, 2019
ANGLE INFRASTRUCTURE: CARE Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Angle
Infrastructure Private Limited (AIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 90.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 14, 2017, placed the
rating of AIPL under the 'issuer non-cooperating' category as AIPL
had failed to provide information for monitoring of the rating.
AIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated October 22, 2019, October 24, 2019, October 31, 2019,
November 4, 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.
Detailed description of the key rating drivers
At the time of last rating on June 8, 2018 the following were the
rating strengths and weaknesses (updated for the information
available from Registrar of Companies)
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing: There have been on-going delays by AIPL
in servicing of its debt obligations. This could be attributed to
the tight liquidity position of the company owning to slowdown in
real estate market leading to slow sales and collection from
customers.
Limited experience of Promoters in the industry: AIPL is promoted
by Mr Amit Katyal and his family members. The group is present in
liquor business for over three decades and it entered the real
estate business in 2011 by launching its first ultra-luxury project
in Gurgaon. Though, the promoter group has been involved in the
development of more than 5 residential/commercial projects in and
around Delhi/NCR. However, the experience of the promoters in real
estate development has been limited with the absence of any real
estate project completed so far.
Subdued Real estate scenario: The sector continues to remain
troubled with issues of high unsold inventory, delayed delivery of
projects and financial stress on developers, the only segment that
showed some signs of a rebound was the affordable housing category
in the peripheries of the major markets. The broader market opinion
is that while the long-term story for residential market remains
strong; the short term is expected to be sluggish.
Key Rating Strengths
Locational Advantage: The project under AIPL enjoys location
advantage on account of being situated in prominent location of
Gurgaon having easy accessibility and good connectivity. Florence
Estate project is situated on Sohna road with vicinity to the
proposed Metro Rail at Sector 70, Gurgaon. However, single project
within the company and most of the other projects within the group
lying in the Delhi NCR region, the group is exposed to geographical
concentration risk.
Incorporated in April 30, 2010, Angle Infrastructure Private
Limited (AIPL) is engaged in the development of residential/group
housing project in Gurgaon (Haryana). AIPL is a part of Delhi based
Krrish Group, which has interests in liquor business in Delhi,
Haryana, Bihar, Jharkhand, U.P. and real estate business in
Gurgaon, Faridabad and Delhi in India and Colombo in Sri
Lanka.
The group is present in liquor business for over three decades
through Frost Falcon Distilleries Limited. The group entered the
real estate business in 2011 by launching its first ultra -luxury
project Provence Estate (under Jasmine Buildmart Pvt. Ltd. (JBPL),
a 10 lsf residential project in Gurgaon.
AIPL is currently engaged in the construction and development of
the project viz. Florence Estate project. The project is a
residential group housing project on a land area measuring
approximately 13.46 acres situated at Village Fazilpur Jharsa,
Sector-70, Gurgaon, Haryana and comprises of 510 residential units
for central government employees. The Company has obtained
requisite approvals for development and construction of the
project.
AQUA MARINE: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Aqua Marine Water Tech LLP
GAT No. 466
Nr Jejuri Mangalkar
Talawade, Pune
MH 412114
IN
Insolvency Commencement Date: November 4, 2019
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: May 2, 2020
Insolvency professional: Dinesh Gopal Mundada
Interim Resolution
Professional: Dinesh Gopal Mundada
403, Fortune House
Baner Pashan Link Road
Baner, Pune
Maharashtra 411045
Mobile: 9833866332
E-mail: mundada2007@gmail.com
Last date for
submission of claims: November 25, 2019
BLACK DIAMOND: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Black Diamond Pulses Private Ltd.
2131/1, Nai Basti
Narela, Delhi 110040
Insolvency Commencement Date: November 7, 2019
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: May 5, 2020
Insolvency professional: Mahesh Taneja
Interim Resolution
Professional: Mahesh Taneja
AE-173, Shalimar Bagh
Delhi 110088
E-mail: maheshtaneja111@yahoo.in
cirpblackdiamondpulses@gmail.com
Last date for
submission of claims: November 21, 2019
CANADIAN CRYSTALLINE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Canadian Crystalline Water India Limited
No. 7, Parivakkam Road
Leelavathy Nagar
Senneerkuppam, Poonamallee
Chennai TN 600056
Insolvency Commencement Date: November 7, 2019
Court: National Company Law Tribunal, Coimbatore Bench
Estimated date of closure of
insolvency resolution process: May 5, 2020
Insolvency professional: B. Sathrukkanan
Interim Resolution
Professional: B. Sathrukkanan
9A/1 Ramraj Mansion, First Floor
N.R.G. Street, K.K. Pudur Post
Coimbatore 641038
Tamil Nadu
E-mail: prathyumnan2002@yahoo.com
Last date for
submission of claims: November 30, 2019
COSTRA ADVERTISING: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Costra Advertising India Pvt. Ltd.
402A, Atlas Skywalker
4th Line Road, Andheri (West)
Mumbai 400053
Insolvency Commencement Date: November 7, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 4, 2020
(180 days from commencement)
Insolvency professional: Mr. Hitesh Kothari
Interim Resolution
Professional: Mr. Hitesh Kothari
208 BSE Bldg.
Dalal Street
Fort, Mumbai 400001
E-mail: hiteshkotharics@gmail.com
Tel.: 9702246060
- and -
Risolto Associates Pvt. Ltd.
240 Ajay Deep
53 Perin Nariman Street
Fort, Mumbai 400001
Last date for
submission of claims: November 20, 2019
DATAWIND INNOVATIONS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Datawind Innovations Pvt. Ltd.
94, City Center
Opposite Guru Nanak
Bhawan Amritsar
PB 143001
IN
Insolvency Commencement Date: November 13, 2019
Court: National Company Law Tribunal, SAS Nagar Mohali Bench
Estimated date of closure of
insolvency resolution process: May 11, 2020
Insolvency professional: Arvind Kumar
Interim Resolution
Professional: Arvind Kumar
#303, 3rd Floor, Plot No. D-190
Phase 8B, Sector 74 Industrial Area
SAS Nagar Mohali
Punjab 160071
E-mail: sankhyain@gmail.com
irpdatawind@gmail.com
Mobile: 9816200033
Tel.: 0172-4089990
Last date for
submission of claims: November 27, 2019
DECCAN HYDERABAD: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Deccan
Hyderabad Trade Impex Private Limited (DHTPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term Bank 10.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale
CARE had, vide its press release dated July 3, 2018 placed the
ratings of DHTPL under the 'issuer non-cooperating' category as
DHTPL had failed to provide information for monitoring of the
rating. DHTPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
from June 3, 2019 to November 7, 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 ratings.
The ratings take into account delays in debt servicing on account
of stretched liquidity position of the company.
Detailed description of the key rating drivers
At the time of last rating on July 3, 2018 the following were the
rating weaknesses and strengths:
Key Rating Weaknesses
Continued delays in debt servicing obligations on account of
Stretched Liquidity: Due to delay in recovery of sales receivable,
DHTPL's liquidity position was stretched which resulted in
instances of devolvement of Letter of Credit.
Deccan Hyderabad Trade Impex Private Limited (DHTPL), incorporated
in 2013, is promoted by Mr Kristam Srinivasa Rani Rama Charan and
Mr Vanga Seshi Reddy. The company belongs to the Nandi group of
Kurnool, Andhra Pradesh (A.P.). DHTPL commenced operation in May,
2013 and is into trading business of Poly vinly chloride (PVC)
Resin. The company imports the PVC resins mainly from Taiwan and
Korea and sells it to indigenous customers.
DEWAN HOUSING: Lenders to Make Provisions for Exposure
------------------------------------------------------
Business Standard reports that lenders to Dewan Housing Finance
Corporation Ltd. (DHFL) will make provisions worth INR6,300 crore
for their exposure to the embattled housing finance company from
the December quarter, said sources in the banking industry.
Banks have an exposure of INR38,000 crore in DHFL, which owes
INR84,000 crore to mutual funds, retail depositors, and others, the
report notes.
Business Standard relates that a source in the banking industry
said audit firm KPMG's final forensic report is expected any time,
and banks will make 100% provisioning for DHFL -- if the account is
termed as a "fraud" account by the Reserve Bank of India.
"If the account is termed as a fraud account following the KPMG
report, then the banks will make entire provision of its exposure
over the next four quarters," the source, as cited by Business
Standard, said. State-owned Union Bank of India, the lead bank of
DHFL, has said its audit had indicated the company had diverted
INR20,000 crore to shell companies.
State Bank of India and Union Bank of India have made provisions
for their DHFL accounts in the second quarter, the report says.
Business Standard, citing an earlier resolution plan for DHFL, says
Indian lenders was estimated to take a 40%haircut --thus the
provisioning for the entire account was expected to between
INR16,000-Rs 17,000 crore. This was before the Reserve Bank of
India (RBI) sent the company to the NCLT for debt resolution. The
haircut is the amount a bank foregoes to make the account as a
"standard" account.
According to the report, lenders are also playing safe as the
matter has reached the courts with Bombay High Court hearing the
matter following an appeal made by Reliance Nippon Life AMC seeking
its dues.
One of the fixed deposit holder has also moved the Supreme Court
asking for his dues. DHFL owes close to INR15,000 crore to retail
investors who invested in the fixed deposits and non-convertible
debentures (NCDs), Business Standard discloses.
Meanwhile, the Uttar Pradesh government has decided to step in the
DHFL crisis after the company defaulted on paying the dues of Uttar
Pradesh Power Corporation Ltd (UPCCL), Business Standard reports.
In an order on Nov. 23, the UP government said it would ensure the
return of funds from DHFL by giving interest free loans to UPCCL to
pay their employees. Over 45,000 employees of the corporation were
agitating after DHFL defaulted to the PF trusts.
Business Standard adds that the UP government had earlier announced
a Central Bureau of Investigation (CBI) into the investment worth
INR4,100 crore made by UPCCL in DHFL. But there has been no action
post the announcement, the report states. The Serious Fraud
Investigation Office (SFIO) is also investigating the company.
About Dewan Housing
Dewan Housing Finance Corporation Limited (DHFL) operates as a
housing finance company in India. The company's deposit products
include fixed deposit products for individuals, and trusts and
institutions; and corporate, recurring, and Wealth2Health deposits
products. It also offers home loans, which include home improvement
loans, home construction loans, home extension loans, plot
loans/land loans, plot and construction loans, and balance transfer
of home loans, as well as home loans for the self-employed; small
and medium enterprise loans, including property term, plant and
machinery, medical equipment, and business loans; mortgage loans,
such as loans against property, loan for purchase of commercial
premises, and loan through lease rental discounting; and NRI home
loans.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
19, 2019, The Hindu BusinessLine said Dewan Housing Finance
Corporation Ltd (DHFL) has defaulted on principal and interest
payments on NCDs aggregating INR104.54 crore. These NCDs were
issued to a single investor. DHFL, in a stock exchange notice, said
the gross principal amount on which the above-mentioned default
occurred is INR100 crore. These 10-year secured NCDs carry a coupon
of 10.05 per cent. Also, the housing finance company defaulted on
interest amount of INR9.43 crore on another NCD series issued to a
single investor, BusinessLine related. The gross principal amount
on which this default occurred is INR100 crore. These 10-year
secured NCDs carry a coupon of 9.40 per cent. Further, DHFL
defaulted on interest payments aggregating INR43 lakh on NCDs
carrying four unique international securities identification
numbers (ISINs), which were issued to 3,404 investors via a public
issue.
DOLPHIN TERRA: CARE Maintains 'B' Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dolphin
Terra Firma Private Limited (DTF) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.90 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from DTF to monitor the rating
vide its letter dated October 31, 2019 and e-mail communications
dated October 30, 2019, October 14, 2019, September 23, 2019,
September 10, 2019, August 28, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requiste 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. In line with the
extant SEBI guidelines CARE's rating on Dolphin Terra Firma Private
Limited's bank facilities will now be denoted as CARE B; Stable;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating in October 2018, the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Execution risk associated with debt funded green field project
Execution risk is associated with green-field project which
involves setting up a holiday resort at Nahan, Himachal Pradesh.
The total project cost is INR13.32 crore, which will be financed
with promoters' capital of INR0.10 crore, unsecured loans of
INR4.32 crore and term loan of INR8.90 crore. As on August 18,
2018, the company has incurred approximately INR3.00 crore towards
the project funded through promoters' capital of INR0.10 crore,
unsecured loans of INR2.60 crore and term loan of INR0.30 crore.
The project is expected to be fully completed by February 2021. And
the commercial operations of the unit are expected to commence from
April 2021. Thus, the company is exposed to execution risk for
project under development. Further, during the initial phases of
operations, the capital structure of the company is expected to
remain leveraged. Also, the solvency position of the company is
projected to remain weak due to high level of debt and low capital
base.
Revenue concentration due to single property
DTF will operate only one resort in Nahan, Himachal Pradesh which
restricts the operations to a single site leading to revenue
concentration risk. The single-site operations expose the company's
revenue and profitability margins to seasonality in business and
happening of unfavorable event in rel ation to property or Nahan
town.
Competitive nature of hospitality industry
The Indian hospitality industry is highly fragmented in nature with
presence of large number of organized and unorganized players
spread across various regions. Further, the industry is
region-based and is highly sensitive to the untoward events such as
slowdown in the economy and any unfortunate event which may have an
adverse impact on the whole industry.
Key Rating Strengths
Experienced promoters
DTF is currently being managed by Mr. Neeraj Soni and Mr. Nitigya
Soni. Mr. Neeraj Soni has an industry experience of one and a half
decade in event management & hotel consultancy services through his
association with other regional entities. Mr. Nitigya Soni has an
experience of one year through his other businesses. Furthermore,
the promoters are supported by experienced team having varied
experience in the field of marketing and finance aspects of
business.
Relevant approvals in place
The entire cost of the land acquisition for the ongoing project has
been fully paid amounting to INR0.37 crore and construction has
already started. The company has taken all requisite approvals and
clearances for the project namely construction approval, etc.
Strategic location of the resort
DTF is located at Nahan, Himachal Pradesh (NH-07). The project site
is located nearby to cities like Trilokpur, Kala Amb, Shimla, and
Paonta Sahib. The location is well connected to various religious
destinations and tourist places in the town. The company also plans
to leave ample space for vehicle parking (which is a major problem
for the palaces and the hotel in the town due to space
constraints). The resort will be able to accommodate more than 100
cars and 5 buses after complete construction.
Dolphin Terra Firma Private Limited (DTF) was incorporated as a
private limited company in February 2011 and is currently being
managed by Mr. Neeraj Soni and Mr. Nitigya Soni. DTF is
incorporated with an aim to set up a holiday resort located at
Nahan, Himachal Pradesh. The project is being constructed on a land
parcel of approximately 37 bighas. The resort consists of 20
cottages, 25 hotel rooms and one restaurant. The project is
expected to be fully completed by February 2021. And the commercial
operations of the unit are expected to commence from April 2021.
EMCO ELECTRODYNE: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of EMCO
Electrodyne Private Limited (EEP) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from EEP to monitor the rating
vide letter dated November 4, 2019 and e mail communications dated
November 1, 2019, October 31, 2019, August 13, 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 EMCO Electrodyne 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
At the time of rating on September 7, 2018 following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Small scale of operations
The total operating income of the company stood at INR15.81 crore
in FY19. The small scale limits the company's financial flexibility
in times of stress and deprives it from scale benefits.
Weak solvency position
The overall solvency position of the company stood leveraged marked
by the overall gearing ratio of 2.05x as on March 31, 2019.
Susceptibility of its margins to fluctuations in raw material
prices
The main raw materials of the company are copper strips, tapes,
insulating materials, hardware, etc. Raw material cost has always
been a major contributor to total operating cost in the past three
years, thereby making profitability sensitive to raw material
prices mainly due to the reason that the major raw material is
commodity in nature and witness frequent price fluctuations. Thus,
any adverse change in the prices of the raw material may affect the
profitability margins of the company.
Foreign exchange fluctuations
The company is dependent upon exports and its export contribution
to total sales stood at around 80% in FY18. The raw materials are
completely procured from domestic markets. With initial cash outlay
for procurement in domestic currency and major part of sales
realization in foreign currency, the company is exposed to the
fluctuation in exchange rates as EEP does not undertake any foreign
exchange fluctuation risk hedging.
Presence in a highly competitive industry
The company operates in highly fragmented and competitive market
marked by the presence of numerous organized and unorganized
players in India. As such, good customer relations and quality
maintenance are significantly important for business growth.
Presence of large number of entities in both organized and
unorganized sector with low entry barriers results in intense
competition. The same in turn limits the pricing flexibility.
Key Rating Strengths
Experienced promoters and long track record of operations
The company is managed by Mr. Piara Singh Matharoo, Mrs. Surinder
Matharoo, Mr. J.S. Matharoo collectively having an industry
experience of 24 years, 20 years and 18 years through their
association with EEP and other group concerns. The promoters have
adequate acumen about various aspects of business which is likely
to benefit EEP in the long run. The long track record has aided the
company in establishment of strong relationships with suppliers as
well as customers.
Moderate profitability margins
The profitability margins of the company have stood moderate marked
by PBILDT margin of 10.90% and PAT margin of 4.03% in FY19.
The entity was incorporated as a private limit ed company by the
name of Emco Danubius Alternators India Private Limited in April
1994. However, in June 1995, the company was renamed to Emco
Electrodyne Private Limited (EEP) and is currently being managed by
Mr. Piara Singh Matharoo, Mrs. Surinder Matharoo, Mr. J.S.
Matharoo. The company is engaged in the manufacturing of motor
coils, roebel stator bars, wound stator capsules, cast iron stator
frame, generator, three phase induction motor and repairing/
rewinding & overhauling of generators and motors at its
manufacturing facility locat ed in Mohali, Punjab. Besides EEP, the
directors are also engaged in managing another group concerns
namely Emco Swit ch Gears Private Limited and Emco Dynamics India.
GOYALA INFRAS.: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Goyala Infras. Projects Pvt. Ltd.
Registered address:
154 SFS (1st Floor)
Rajouri Apartment
Rajouri Garden
New Delhi DL 110064
IN
Insolvency Commencement Date: October 30, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: April 27, 2020
(180 days from commencement)
Insolvency professional: Bharat Chaufla
Interim Resolution
Professional: Bharat Chaufla
Not for Communication purpose:
J5/126 3rd floor Rajouri Garden
New Delhi 110027
E-mail: bharat.chaufla@gmail.com
For Correspondence purpose:
Go Work Building
Plot no. 108, Ground floor
Udyog Vihar Phase 1
Gurugram Haryana 122016
E-mail: ibbigoyala@gmail.com
Last date for
submission of claims: November 29, 2019
HORIZON BUILDCON: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Horizon Buildcon Private Limited
Registered office:
C-36, Gulmohur Park
New Delhi 110049
Insolvency Commencement Date: November 8, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 6, 2020
Insolvency professional: Mr. Sanjay Gupta
Interim Resolution
Professional: Mr. Sanjay Gupta
E-10A, Kailash Colony
Greater Kailash-1
New Delhi 110048
E-mail: sanjaygupta@aaainsolvency.com
horizon.buildcon@
aaainsolvency.com
Classes of creditors: Home Buyers (Real Estate Investors)
Insolvency
Professionals
Representative of
Creditors in a class: Pawan Kumar Garg
CA Arvind Mittal
Atul Kumar
Last date for
submission of claims: November 22, 2019
INDIAN GEM: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Indian Gem & Jewellery Imperial Private Limited
25A, Camac Street
Kolkata 700016
Insolvency Commencement Date: November 13, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 11, 2020
Insolvency professional: Ashok Kumar Agarwal
Interim Resolution
Professional: Ashok Kumar Agarwal
Ashwini - D/4
Neelachal Abasan Co-operative Society
Limited
98 Rajdanga Gold Park
Kasba, E.K.T., Kolkata
West Bengal 700107
E-mail: ashokkragarwal@hotmail.com
Mobile: +91 9831060452
- and -
C/o Singhi IP Solutions Private Limited
Raja Chambers, 1st Floor
4, Kiran Shankar Roy Road
Kolkata 700001
E-mail: irp.indiangem@
singhiipsolutions.com
Tel.: +91 33 22318652
Last date for
submission of claims: November 27, 2019
KAMRAN EXPORTS: CARE Reaffirms 'D' Rating on INR30cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Kamran Exports Private Limited (KEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 30.00 CARE D; ISSUER NOT COOPERATING
Facilities Reaffirmed
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from KEPL to monitor the
rating(s) vide e-mail communications/letters dated November 7,
2019, November 8, 2019 and November 11, 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 Kamran Exports Private Limited'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 ratings.
Detailed description of the key rating drivers
At the time of last rating on November 1, 2018 the following were
the rating strengths and weaknesses:
Delays in debt servicing: There have been on-going delays by Kamran
Exports Private Limited in servicing of its debt obligations.
Kamran Exports Pvt Ltd (KEPL), incorporated on July 3, 2009 by Mr
Preet Singh, Mr Kultar Singh Kapoor and Mr Manmeet Singh as a
private limited company as an exporter of fabric to foreign
countries but now the company has entered into trading of garments,
shoes and dry fruits also. Mr Kultar Singh has an experience of
more than 15 years and Mr Manmeet Singh has an experience of more
than 7 years in the business. The company procures the products
domestically and exports mainly to various countries of UAE and
South Africa.
KANJI KALYANJI: CARE Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kanji
Kalyanji And Co (KKC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.50 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking no default statement from KKC to monitor the
ratings e-mail communications dated November 12, 2019, November 7,
2019, November 5, 2019, November 1, 2019 and October 31, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not provided no default statement 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 KKC's bank facilities will now be denoted as
CARE B; 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 ratings have been revised on account of non-cooperation by US
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
Key rating Weakness
Small scale size of operations coupled with low capitalization:
Despite its long track record of operation, KKC's scale of
operation stood moderate with total operating income of INR31.00
crore in FY18. Further, the net worth base also remains small at
INR2.79 crore as on March 31, 2018. Nevertheless the moderate scale
of operations along with low net-worth base restricts the company's
financial flexibility in times of stress and deprives it from scale
benefits.
Moderate operating profitability margin and low net profit margin:
KKC's PBILDT margin has exhibited increasing trend and stood
moderate in the range of 10.77% - 12.49% during last three years
ended as on March 31, 2018 owing to movement in prices of groundnut
& cotton seed refined oil. Further PAT margin of the firm exhibited
declined trend and remained low in the ranged of 0.55% - 1.20%
during past three years ended as on March 31, 2018 owing to
increase in interest cost due to higher utilization of working
capital limit and infusion of unsecured loans to fund its business
operations.
Highly leveraged capital structure and weak debt coverage
indicators: The capital structure of the company stood highly
leveraged marked by on account of high reliance on external debt
and relatively low net worth base. The debt service coverage
indicators remained weak owing to high debt level leading to high
interest charges.
Working capital intensive nature of operations: KKC's business
operations are working capital intensive with funds blocked in
debtors. Further operating cycle of firm has elongated to 33 days
in FY18 (vis-à-vis 7 days in FY17) due extended credit period
given to the customers with a view of long term relationship.
Stretched liquidity Position: The liquidity position of the KKC
remained stretched marked by tightly matched accruals to repayment
obligations, highly utilized bank limits and modest cash balance of
INR1.20 crore as on March 31, 2018 (vis-à-vis INR1.68 crore as on
March 31, 2018). Further current ratio remains at 1.03x times and
quick ratio remains at 0.99x times during FY18.
Vulnerability of profitability margins due to presence in the
highly volatile agro-commodity business: The edible oil industry is
exposed to agro-climatic risk and the profitability margins remain
susceptible to fluctuations in the raw material prices which are
volatile in nature.
Season ability associated with availability of raw material: The
business of the entity being agro-based is highly dependent on
monsoons for its raw material availability, thereby attributing
seasonality to its nature of operations.
Constitution of the entity being a partnership concern: KKC is a
partnership firm which 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 proprietor. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision for the lenders.
Key rating Strengths
Experienced promoters with long track record of operations of the
firm: The entity was established in 1949 and currently being
managed by Mr. Rajesh Lapasia, with his son, having experience of
more than three decade and 2 years respectively in the field of
groundnut and cotton seed oil. Further the partners are assisted by
experienced management team to carry out the day to day operations
of the entity. Moreover the pa rtners are resourceful and infusing
funds to the business by way of unsecured loans which stood around
~9% of the total debt during FY18.
Established brand image in the Mumbai area and strong distribution
network: KKC sells its various products under the brand "KK Oil”
and it has a strong presence in the entire Mumbai & suburban area.
KKC derives around 70% of its sale through wholesale and around 30%
of sale through retail. The company derives 100% of sales from
entire Mumbai area and has a network of around 34 distributors.
Mumbai (Maharashtra) based Kanji Kalyanji and Co. (KKC) is a
partnership firm established in 1949 and is currently managed by
Mr. Rajesh Shantilal Lapasia and Mr. Yash Rajesh Lapasia. They
collectively look after the overall operations of the firm. The
entity is engaged in the business of extraction and supplying of
refined oils such as groundnut, cotton, sunflower etc. at its
processing facility located in Mumbai, Maharashtra with an
installed capacity to extract around 360 tonnes of groundnut oil
and around 150 tonnes of cotton seed oil per month and which is
utilized around 95% as on March 31, 2018. The key raw material
required by the firm is groundnut crop which it procures from
suppliers in an around Gujarat region where there is presence of
vast number of groundnut crop producers and crushing mills. The
firm sells groundnut and cotton seed oil to various wholesalers and
retails in Mumbai region. Moreover the entity sells its product
under its registered brand name of "KK Oil".
KUNAL FOUNDERS: CARE Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kunal
Founders and Engineers Private Limited (KFE) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.40 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking no default statement from KFE to monitor the
rating vide e-mail communications dated July 31, 2019, August 1,
2019, August 5, 2019, August 7, 2019, August 13, 2019, August 30,
2019, September 5, 2019, September 9, 2019, September 11, 2019,
September 23, 2019, September 30, 2019, October 1, 2019, October 4,
2019, October 9, 2019, October 22, 2019, October 31, 2019, November
1, 2019, November 5, 2019 and November 7, 2019 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information and surveillance fees for
monitoring the ratings. The rating on Kunal Founders and engineers
Private Limited 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 entity was established as a partnership firm in April, 1978
under the name of Kunal Founder and Engineers. In May, 1996 the
name and constitution of the firm changed to its present one i.e.
Kunal Founder and Engineers Private Limited (KFE). The company is
currently being managed and promoted by Mr. Subhash Mahajan and Mr.
Yuvraj Mahaj an. The company is engaged in the manufacturing of
automotive components like flywheel, brake housing, wet bar
steering brackets, excel brackets etc. with total installed
capacity of 1,900 metric tonnes of automotive components per annum
as on December 31, 2018 at its manufacturing facility in Sahibzada
Ajit Singh Nagar, Punjab. Besides KFE, one of the directors is also
engaged in another group concern namely, Bharat Foundry, which is a
proprietorship firm established in 2004 and is engaged in similar
line of business.
LUSTERLEAF INFOTECH: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Lusterleaf Infotech Private Limited
Shop No. 003, Ground Floor
Pooja Nagar, Building No. 2
CHS Ltd., Cabin Cross Road
Bhayander East Thane 401107
Insolvency Commencement Date: November 4, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 2, 2020
Insolvency professional: Mr. Bhavesh Rathod
Interim Resolution
Professional: Mr. Bhavesh Rathod
A/101, Shelter CHSL
CSC Road, Opp. Shakti Nagar
Dahisar (E), Mumbai 400068
E-mail: bhavesh76@gmail.com
ip.bhavesh@gmail.com
Last date for
submission of claims: November 25, 2019
MBS IMPEX PRIVATE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: MBS Impex Private Limited
Registered office:
5-9-45 Basheerbagh
Hyderabad 500063
Insolvency Commencement Date: November 13, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: May 11, 2020
Insolvency professional: Shridhar Venkatraya Sundararaja
Interim Resolution
Professional: Shridhar Venkatraya Sundararaja
Regus, 1st Floor, Phoenix Tech Tower
Plot No. 14/46, Survey No. 1(part)
IDA-Uppal Village and Mandal
Uppal Notified Industrial Area Service
Society
Hyderabad, Telangana 500039
E-mail: sridharema@gmail.com
rp.sridharvs@gmail.com
Last date for
submission of claims: November 27, 2019
MOON DIAMONDS: CARE Lowers Rating on INR17cr LT Loan to 'B+'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Moon
Diamonds, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 17.00 CARE B+; ISSUER NOT COOPERATING;
Facilities Revised from CARE BB+; Issuer Not
Cooperating on the basis of best
Available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Moon Diamonds to monitor the
ratings vide e-mail communications dated November 5, 2019, November
11, 2019 and November 15, 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 Moon
Diamonds Limited's bank facilities will now be denoted as CARE B+;
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 ratings have been revised on account of CARE not being able to
conduct appropriate due diligence due to absence of any
information.
Detailed description of the key rating drivers
At the time of the last rating on September 11, 2018 the following
were the rating strengths and weaknesses.
Key Rating Strengths
Experienced management with long track record in the diamond
processing business
MD has an established track record of more than a decade in the G&J
business with its presence in the C&P diamond segment and supplies
to one of the key international market i.e. Belgium. The firm is a
closely-held family-owned partnership firm with Mr Ummedmal Dugar
and Mrs Saroj Dugar as the key promoters who primarily look after
the sales, strategy and overall operations of the firm, while their
son Mr Anand Dugar takes care of the processing units of the firm.
Prior to Moon Diamonds, the partners were a part of their family
run C&P diamond processing business for 45 years and post division
of the family, MD was formed as a partnership entity by the
promoters.
Comfortable capital structure and debt coverage indicators
As on 31st March, 2015, MD is a debt-free firm. Hitherto, the firm
has run its operations using their internal accruals and own funds.
During the course of FY16 (refers to the period April 1 to March
31), the firm proposes to utilize its working capital limits fund
based of INR35 crore. Despite assuming full utilization of working
ca pital limits, the overall gearing of MD is likely to stay
moderate at 1.47 times at the end of FY16 and 1.17 in FY17. Also,
the interest coverage indicators are expected to remain comfortable
at 2.89 and 3.03 in FY16 and FY17 respectively.
Efficient receivables management resulting in relatively short
operating cycle (13 days)
During FY15, the operating cycle of Moon Diamonds (MD) remained
short at 13 days. Average collection period at MD improved from 33
days as on March 31, 2014 to 22 days as on March 31, 2015 mainly as
68% of the total sales were made with credit period less than 30
days and for the balance sales the firm generally extends credit
period of about 31 to 60 day s to its customers. The inventory
holding period has fallen from 85 days to 65 days in FY15 as the
firm has consciously reduced its scale of operations, on account of
the volatility in CPD markets in the past few years. With the
improvement in collection period, the average creditors' period has
also reduced from 113 days as on March 31, 2014 to 74 days as on
March 31, 2015. This has resulted in moderate operating cycle.
Key Rating Weaknesses
Partnership nature of the firm: MD is a partnership firm formed in
1999 and as on date is managed by two partners who are members of
the same family. The credit risk profile of MD is constrained by
the constitution of the entity, as there is an inherent risk of
withdrawal of the capital in a partnership firm. In FY14 and FY15,
the partners made a net withdrawal of INR0.34 crore and net capital
infusion INR0.22 crore respectively.
Supplier concentration risk and lack of long-term rough diamond
sourcing arrangement directly with diamond mining companies
MD procures rough diamonds largely from the J. Pinchasi & Sons and
Brilliant Star BVBA in Belgium. In the past two years (FY14 and
FY15), MD's top two suppliers accounted for nearly 100% of the
total purchases, thereby indicating supplier concentration risk.
High Customer concentration and geographic concentration risk
The firm's clientele base is not diversified, as two customers'
viz. J.Pinchasi & Sons (55% of total exports) and Brilliant star
BBVA (43% of total exports) account for nearly 100% of the overall
revenues in FY14 and FY15. The firm has an established presence in
only one of the key diamond market viz. Belgium, thereby indicating
high geographic and customer concentration risk.However, the high
customer concentration risk is partly mitigated due to the reputed
customer base including J.Pinchasi & Sons which has been operating
in the diamond industry in Belgium for 40 years.
Thin profitability margins due to limited value addition in C&P
diamonds
With limited value addition in C&P of diamonds coupled with being
involved in processing of the diamonds on an order basis, the
firm's PBILDT and PAT margins remain thin. The firm primarily
imports rough diamonds from J. Pinchasi & Sons and Brilliant Star
BBVA in Belgium and the imported diamond is then processed and the
final cut & polished diamonds are then exported to the same
entities in Belgium from where they import. During FY15, the firm's
PBILDT margins were at 3.29% as against 2.16% in FY14 on account of
lower raw material costs.
Susceptible to volatility in the prices of the diamonds and foreign
exchange fluctuation (albeit natural hedge exists)
Moon Diamonds is dependent on imports to meet its requirement of
diamonds. 90% of diamonds were imported to meet the requirements in
FY15, up from 83% in FY14. Thus, MD has been importing higher
proportion of its raw materials. The landed cost of imported
diamonds is subject to raw material and foreign exchange
fluctuations. As MD is an export driven firm (comprising 98% of
sales in FY15 and 99.5% in FY14), it enjoys a natural hedge in the
management of its foreign exchange exposure. Despite the natural
hedge, commodity price and foreign exchange fluctuation still
remain significant risks to the profitability of the firm.
Strong competition from large number of players in the organised
and unorganised sector in the CPD industry; and demand being linked
to discretionary customer spending in key diamond jewellery markets
such as USA, China, etc. The Cut & Polished Diamond (CPD) industry
in India is highly fragmented with presence of numerous unorganised
players apart from some very large integrated G&J manufacturers
leading to high level of competition. Although India plays a
prominent role in the G&J industry in terms of processing and
consumption, it significantly lags behind in mining of gold and
diamonds because of meager reserves. The Indian CPD industry is
working capital intensive and primarily export oriented.
Established in 1999 as a partnership firm, Moon Diamonds (MD) is
managed by Mr. Ummedmal Dugar, and Mrs. Saroj Dugar. Mr. Ummedmal
Dugar along with Mrs. Saroj Dugar primarily looks into the sales,
strategy and overall operations of the firm along with Mr. Anand
Dugar who is responsible for the processing functions. The firm is
engaged in the import of rough diamonds and export of cut and
polished diamonds of various sizes ranging from 50 cents to 3
carats. The firm has two fully owned factories situated at Dahisar
& Goregaon, Mumbai, employing around 200 skilled & semi-skilled
staff. The firm is primarily involved in processing of the diamonds
on a job work basis. They import rough diamonds from Belgium and
the imported diamond is then cut and polished at their factories
and the final cut & polished diamonds are then exported to Belgium.
While the firm also sells cut and polished diamonds in the domestic
market, the firm earns ~88% of its revenue through exports of Cut &
Polished diamonds.
NIRVIN COLD: CARE Maintains 'B' Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nirvin Cold
Storage Private Limited (NCSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.40 CARE B; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from NCSPL to monitor the rating
vide letters/e-mails communications dated July 5, 2019, July 23,
2019, November 1, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the entity has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the ratings on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at fair ratings. The rating on Nirvin Cold
Storage Private Limited's bank facilities will now be denoted as
CARE B; Stable ISSUER NOT COOPERATING. Further, the banker could
not be contacted.
Users of these rating (including investors, lend ers and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of Nirvin Cold Storage
Private Limited (NCSPL) continues to be constrained by its small
scale of operation, high gearing levels, highly regulated industry,
presence in highly fragmented industry leading to intense
competition and dependency on vagaries of nature and seasonality of
business. However, the aforesaid constraints are partially offset
by its experienced promoters, long track record of operations and
proximity to potato growing areas.
Going forward, ability to increase its scale of operation and
profitability margins and ability to manage working capital
effectively are the key rating sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses:
Small scale of operations
Total operating income (TOI) witnessed the declined of 8.62% in
FY19 vis-à-vis FY18, the same continues to remain small in
comparison to its peers. Also, the tangible net worth continues to
be low at INR1.33 crore as on March 31, 2019.
Highly regulated industry
In West Bengal, the basic rental rate for cold storage operations
is regulated by state government through West Bengal State
Marketing Board. Due to c eiling on the rentals to be charged it is
difficult for cold storage units like NCSPL to pass on sudden
increase in operating costs leading to downward pressure on
profitability.
High gearing level
The overall gearing ratio of the company deteriorated to 6.44x as
on March 31, 2019 from 3.61x as on March 31, 2018 was high.
Moreover, the total debt to GCA remained negative as on FY19.
Presence in a highly fragmented industry leading to intense
competition
Despite being capital intensive, entry barrier for setting up of
new cold storage unit is low on account of government support and
high demand for cold storages in West Bengal. The storage business
is highly competitive in the potato growing regions of the state as
it is the second largest producer of potato in India. In view of
the same, cold storage business is highly competitive in this
region forcing cold storage owners to lure farmers by offering them
lower rental and other services.
Dependence on vagaries of nature and seasonality of business
NCSPL's operations are seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of February
and lasts till March. Additionally, with potatoes having a
preservable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period between December to February.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent on
the basis of quantity stored and the production of potato and other
vegetables is highly dependent on vagaries of nature.
Key Rating Strengths
Experienced promoters
Shri Niraj Kumar Bansal possesses more than 27 years of experience
in same line of business and looks after the day -today operations
of the company. Smt. Jyoti Bansal has more than 15 years of
experience in the same line of business.
Long track record of operations
The company started its operation in 1984 and accordingly have more
than three decades of presence, reflecting long track record of the
company in the cold storage business.
Proximity to potato growing areas
The said cold storage is located in potato growing belt of Bankura
district of West Bengal, having large network of potato growers
along with potato traders, thereby making it suitable for the
farmers and traders in terms of transportation and connectivity and
ensures company's higher level of capacity utilization.
Liquidity: Adequate
The liquidity position of the company remained adequate marked by
current ratio of 1.06x and quick ratio of 1.05x as on March 31,
2019. The balance sheet shows satisfactory cash and bank balance
amounting to INR0.47 crore as on March 31, 2019.
Nirvin Cold Storage Pvt. Ltd. (NCSPL), incorporated in the year
1984, is a Kolkata (West Bengal) based company, promoted by Shri
Niraj Kumar Bansal and Smt. Jyoti Bansal (wife of Shri Niraj Kumar
Bansal). It is engaged in the business of providing cold storage
services to potato growing farmers and potato traders, having an
installed storage capacity of 19,465 MTPA in Bankura district of
West Bengal. Shri Niraj Kumar Bansal looks after the day to day
activities of the business with adequate support from co -director
and a team of experienced professionals.
NUI PULP: Insolvency Resolution Process Case Summary
----------------------------------------------------
Debtor: Nui Pulp & Paper Industries Private Limited
Registered office:
Nano Quarters
Flat No. 5, Chenakkal
Calicut University P O
Kozhikode, Kerala 673635
Principal office:
SEZ Export Processing Area
No. 180 Tulip Road
Satyavedu Mandal, Chittoor District
Andhra Pradesh 517588
Insolvency Commencement Date: November 7, 2019
Court: National Company Law Tribunal, Kochi Bench
Estimated date of closure of
insolvency resolution process: May 4, 2020
Insolvency professional: Balakrishnan Baburajan
Interim Resolution
Professional: Balakrishnan Baburajan
B.K. Baburajan & Associates
Practicing Company Secretaries
2nd Floor, Uzhinjelil Tower
Subhash Chandrabose Road
Ponnurunni Vyttila P O
Kochi Ernakulam
Kerala 682019
E-mail: baburajanfcs@gmail.com
irpnuipulp@gmail.com
Last date for
submission of claims: November 27, 2019
OZONE GSP: CARE Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ozone GSP
Infratech continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 35.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 21, 2018, placed the
rating of Ozone GSP Infratech under the 'issuer noncooperating'
category as Ozone GSP Infratech had failed to provide information
for monitoring of the rating. Ozone GSP Infratech continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated October
17, 2019, October 21, 2019, October 24, 2019, and October 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.
Detailed description of the key rating drivers
At the time of last rating on May 21, 2018 the following were the
rating strengths and weaknesses
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in debt servicing: There have been on-going delays by Ozone
GSP Infratech in servicing of its debt obligations. The delay in
interest servicing is due to the tight liquidity position of the
firm owning to slowdown in real estate market leading to slow sales
and collection from customers.
Slow progress on sale with only 40% of the area sold
OGI launched the project "Sarvome - The Presidio" in November2015
and has sold about 40% of the total area under construction as on
March 31, 2017, thereby reflecti ng the slow sales. The firm has
realized only 40% of the total sales value and has pending
receivable of INR30 crore out of the total sold area valued INR51
crore. Going forward it is imperative for the firm to sell the
remaining area at or above the current price in a time bound manner
to maintain enough liquidity and generate funds for repayment of
debt and for completion of project.
High dependence of project execution and debt repayments on
customer advances
The total project cost of INR102 crore is being funded by OGI
through a debt of INR35 crore, partners' contribution of INR30
crore and remaining by the customers' advances of INR37 crore. The
firm has received customer advances of INR21 crore as on March 31,
2017, and is having a pending receivable of INR30 crore from the
confirmed sales. However, the firm is required to expend further
INR18 crore on the construction cost and INR35 crore towards
repayment of debt, which makes it highly dependent on customer
advances.
Constitution as a partnership firm
OGI, being a partnership firm, is inherently exposed to the risk of
partner's capital withdrawal due to personal exigencies. The
constitution further restricts its financial flexibility with
limited access to capital markets to fund expansion in the future.
The constitution as a partnership thus, poses a further risk of
dissolution/reconstruction of the entity in case of withdrawal of
capital by either partner.
Inherent risks associated with real estate industry
The real estate sector is moving towards a more rational regime
with the implementation of the transformational reforms.
Residential sales were positively impacted by flexibility in
pricing and payment schedules, especially for projects with
quality construction, appropriate sizes and prime locations. The
introduction of the RERA Act, will also move the sector towards
transparent and credible measures with sustenance for organized
players. Currently, the sector continues to remain troubled with
issues of high unsold inventory, delayed delivery of projects
causing financial stress on developers. The only segment that
showed some signs of a rebound was the affordable housing category
in the peripheries of the major markets. Thus, the broader market
opinion is that while the long term story for residential market
remains strong; the short term is expected to be sluggish.
Key Rating Strengths
Experienced Promoters
Ozone GSP Infratech, a partnership venture by Jotindra Steel and
Tubes Limited and Mr. Akhil Kumar Surekha, is engaged in
development of a group housing society at sector-31, Faridabad. Mr.
Akhil Surekha, a commerce graduate from the University of Delhi has
a long standing experience of over two decades in the steel
industry. The management is well supported by an experienced and
qualified team of professionals.
The organization is a part of business conglomerate comprising of
Jotindra Steel & Tubes Limited (CARE C/CARE A4 ISSUER NOT
CO-OPERATING), Mauria Udyog Limited (rated CARE D/CARE D; ISSUER
NOT COOPERATING) and Bihariji Ispat Udyog Limited. The group
company, Bihariji Ispat Udyog Limited has experience in successful
execution of the real estate projects together with M/s Matoshree
Properties Pvt. Ltd. and M/s Jhunjhunwala Trading Pvt. Ltd. under
the name of "Rashi Developers". However, the current project is the
first independent launch of the group's real estate activities
under its own brand name.
Ozone GSP infratech constituted as a partnership firm on September
20, 2010 is currently partnered by Jotindra steel and tubes limited
and Mr. Akhil Kumar Sureka. The entity is a part of a business
conglomerate that is engaged in diverse industries viz. Steel tube
manufacturing, LPG Cylinder manufacturing, trading and finance
businesses and real estate. OGI is currently executing a
residential project, namely "Sarvome- the Presido" comprising of 78
apartments located at sector 31, Faridabad. The project comprises
of luxury housing complexes of 3 BHK, 3+1 BHK and 4+1 BHK
apartments and is expected to be completed by February, 2019.
Ozone GSP Infratech is following completion method for recognition
of revenue in the books of accounts of the firm. Since, the project
undertaken by the firm is under execution stage, no revenue
pertaining to the same has been recognized yet. The financial
statements, thus do not present a meaningful view in this regard.
P.G. MICRO SYSTEMS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: P.G. Micro Systems Private Limited
Registered office:
C-266, Gali No. 8
Majilis Park
New Delhi 110033
Insolvency Commencement Date: July 19, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 12, 2020
(180 days from commencement)
Insolvency professional: Praveen Kumar Aggrawal
Interim Resolution
Professional: Praveen Kumar Aggrawal
57, Narmada Apartments
Alaknanda, New Delhi 110019
E-mail: pkaggrawal@gmail.com
- and -
101, Nipun Plaza, Sector-1
(Near Max Hospital)
Vaishali, Ghaziabad 201010
Mobile: 9811093062
E-mail: cirp.pgmicro@gmail.com
Last date for
submission of claims: November 28, 2019
PARASMAL KHASGIWALA: CARE Reaffirms B Rating on INR6.6cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Parasmal Khasgiwala Memorial Charitable Trust (PKMCT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.60 CARE B; Stable Reaffirmed
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of PKMCT continues to
remain primarily constrained on account of project implementation
risk associated with its greenfield project for construction of
hospital. The rating, further, continues to remain constrained on
account of stretched liquidity position in the highly competitive
and regulated nature of the industry. The rating, however, continue
to favorable takes into account experienced and well qualified
promoters with group support and proposed wide range of medical
care services.
Rating Sensitivity
Positive Factors
* Successful completion of its project within envisaged time
and cost parameter
* Stabilization of its operations with achieving envisaged level
of Total Operating Income (TOI) and profitability
Negative factors
* Any cost or time overrun resulting in stretched liquidity of
the project
* Any regulation imposed by the government which adversely impact
the hospital
Detailed description of the key rating drivers
Key Rating Weakness
Project Implementation risk with time overrun: PKMCT undertook a
green-field project for setting up a 44 bed multi-specialty
hospital with the latest advance technology machine at Ajmer,
Rajasthan. It has envisaged total project cost of INR10.15 crore
towards the project envisaged to be funded through term loan of
INR6.60 crore and balance by trustee both by way of capital as well
as unsecured loans, implying debt equity mix of 1.85:1.
PKMCT has incurred INR6.70 crore towards the project till
October 31, 2019 funded through the term loan of INR4.07 crore,
INR1.38 crore through unsecured loans and balance through corpus
fund. Earlier, the expected COD for the project was August, 2019,
however, owing to delays on part of contractor due to ban of gravel
in Rajasthan, the project got delayed. Currently, the major work
remaining relates to equipment and electrical fittings
and project is expected to commence operations from December,
2019.
High competition along with the highly regulated nature of the
industry
The healthcare sector is highly fragmented with few large players
in the organized sector and numerous small players in the
unorganized sector leading to high level of competition in the
business. Thus, differentiating factors like range of services
offered, quality of service, reputation of doctors, success rate in
the treatment of complex cases will be crucial in order to attract
patients and increase occupancy. Further, the healthcare industry
in India is well regulated by the government and require strict
adherence to the norms stipulated by the concerned authorities.
Moreover, healthcare is a highly sensitive sector where any
mishandling of a case or negligence on part of any doctor and/or
staff of the unit can lead to distrust among the masses. Thus, all
the healthcare providers need to monitor each case diligently and
maintain standard of services in order to avoid the occurrence of
any unforeseen incident.
Key Rating Strength
Highly experienced and well-qualified promoters
The promoters of PKMCT are highly qualified and have vast
experience in the similar line of business. Dr Rajkumar Khasgiwala,
Urologist by qualification and Dr Minal Khasgiwala, specialist in
intensive critical care has more than two decade of experience in
the healthcare industry and will look after the overall affairs of
PKMCT. Dr Rajkumar Khasgiwala has been practicing in Ajmer since
2005 under its clinic; namely Raj Uro Care Centre which is
specialist centre in Urology.
Further, they are assisted by other trustees, Mr Mukesh Karnawat
who will look after the accounts and finance of the hospital and Dr
L.M Bhandari will look after the general administration both have
more than a decade of experience in their respective field.
Also PKMCT will appoint a team of qualified employees including
nursing staff, resident doctors, dieticians, Pharmacists , Lab
attendants and other helpers to help in smooth functioning of the
hospital.
Wide range of medical care services proposed with group support
The hospital being set up under PKMCT proposes to provide
comprehensive super-specialty services in the disciplines of
Radiography, Pharmacy, Pathology, Gastrointrology, Blood Bank,
nursing and consultancy. The wide range of service offerings and
affordability proposed will result in a fair occupancy rate.
Further, PKCMT is also supported by its group concern namely; Raj
Uro Care Centre under which the trustee is running a urologist
centre in Ajmer.
Liquidity: Stretched
Liquidity is marked by tightly matched accruals to repayment
obligations in projected years owing to nascent stage of operations
and low cash balance of INR0.17 crore as on March 31, 2019. Further
the project undertaken is tightly marked with high debt mix leading
to leveraged capital structure in projected years.
Ajmer (Rajasthan) based Parasmal Khasgiwala Memorial Charitable
Trust (PKMCT) was formed in the year July, 2010, by Khasgiwala
family with an objective to set up a multi and super-specialty
hospital. The hospital will provide various medical specialties
viz. Radiography, Pharmacy, Pathology, Gastrointrology, Blood Bank,
nursing and consultancy. PKMCT will consist of 44 beds which
include 20 beds in general ward, 16 beds in deluxe room, 8 beds in
Intensive-Care Units (ICU). It is proposed to have four floors and
basement having a total built-up area of 32,000 sq feet.
PREMIER AGENCIES: CARE Cuts Rating on INR7cr LT Loan to 'B+'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Premier Agencies (PRA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.00 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 PRA to monitor the rating
vide letter dated November 4, 2019 and email communications dated
October 31, 2019, August 13, 2019, July 9, 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 Premier Agencies'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 of the firm has been revised on account of
partnership nature of constitution and highly competitive nature of
the industry.
Key Rating Weaknesses
Partnership nature of constitution: PRA'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.
Highly fragmented and competitive nature of industry: PRA faces
tough competition from other organized and unorganized players who
have significant market share in Indian industry. Thus, competition
might restrict the scale of operations as well as profitability
margins of Hamilton Housewares Private Limited and consequently PRA
in short/medium term.
Premier Agencies (PRA) was established in April, 1979 as a
partnership firm and is currently being managed by Mr. Harish
Chander, Mr. Tarun Puniani and Mr. Bharat Puniani sharing profit
and losses in the ratio of 4:3:3. PRA is the sole authorized
distributor of Hamilton Housewares Private Limited (CRISIL AA-;
Stable/ CRISIL A1+) for providing Milton, Treo and SpotZero brand
products in Haryana. The product line consists of plasticware,
thermoware, glassware, and melamineware. The firm is having network
of 1000 dealers located in different parts of Haryana.
PURE LIFE: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Pure Life Science Private Limited
730, Ecstasy Building
8th Floor, City of Joy
J.S.D. Road, Mulund (West)
Mumbai 400080
Insolvency Commencement Date: October 22, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: April 21, 2020
Insolvency professional: Lakshminarayan Krishnamoorthy
Interim Resolution
Professional: Lakshminarayan Krishnamoorthy
11, Ellora Building
Plot 51/54/56
Chhedanagar, Mumbai
Maharashtra 400089
E-mail: murti_1945@rediffmail.com
Last date for
submission of claims: November 24, 2019
RADIANT BIZCOM: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Radiant Bizcom Private Limited
Shop No. 160, 1st Floor
Evershine Mall Jn.
Off Link Road, Malad-West
Mumbai 400064
Insolvency Commencement Date: November 4, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 2, 2020
(180 days from commencement)
Insolvency professional: Mr. Arun Bagaria
Interim Resolution
Professional: Mr. Arun Bagaria
701, Stanford Building
Junction of S.V. Road and
C D Burfiwala Marg
Andheri (W), Mumbai 400058
E-mail: arun@bagariaco.com
bagaria.arun@gmail.com
Last date for
submission of claims: November 22, 2019
RATNAWALI DAIRY: CARE Reaffirms B Rating on INR5.62cr Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Ratnawali Dairy Products LLP (RDP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 5.62 CARE B; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of RDP is primarily
constrained on account of its nascent stage of operations with
moderate solvency position and stretched liquidity position. The
rating, further, continued to remain constrained on account of its
presence in the highly competitive and fragmented industry and
constitution as a partnership concern.
The rating, however, continue to remain favorable on account of
experienced partners with location advantage and easy availability
of raw-material and labour. The rating, further, derive strength
from moderate profitability.
Rating Sensitivities
Positive Factors
* Stabilization of operations with improvement in Total Operating
Income (TOI) at least up to INR12 crore along with maintaining of
PBILDT margin
* Improvement in solvency position with overall gearing less than
3.00 times
Negative factors
* Deterioration in liquidity profile owing to tightly matching of
accruals with repayment obligation
* Any restrictions imposed by government which adversely affects
the scale of operations of the firm
* Any debt-funded project undertaken by the firm which results in
deterioration of solvency position
Detailed description of the key rating drivers
Key Rating Weakness
Nascent stage of operations of the firm albeit healthy
profitability margin and moderate solvency position
The firm started commercial operations from September, 2018 and in
7MFY19 has registered Total Operating Income (TOI) of INR5.11 crore
with healthy PBILDT margin of 27.87%. However, owing to nascent
stage of operation, the firm registered high depreciation and
interest and finance cost resulting in thin PAT margin of 0.57%. In
7MFY19, it generated 40.87% of its TOI from sale of Ghee and
balance from sale of milk. RDP registered a turnover of INR5.63
Crore till September 30, 2019. Furthermore the capital structure of
the firm stood leveraged with overall gearing of 3.63 times as on
March 31, 2019 and debt coverage indicators stood moderate with
total debt to GCA of 4.63 times and interest coverage of 3.26 times
as on March 31, 2019.
Seasonal nature of the milk processing industry
The dairy industry is characterized by the short supply of milk
during peak of summers. The firm procures the milk during the
winter season when the milk is available in abundance and at low
price which leads to build up of inventory/finished goods mostly
ghee. Correspondingly, there is high requirement of funds during
the peak season i.e. winter months from September-May. It is
mitigate to some extent as the partners own seven Gaushala in
Rajasthan which helps the firm in its raw-material requirement.
Competition from the organized and un-organized sector and
environmental risk and constitution as a partnership concern The
firm faces competition in the dairy segment from other established
brands in the organized market. The competition gets fiercer with
presence of unorganized players leading to pricing pressures. Other
major dairy companies are also entering into the manufacturing of
value added milk products on account of increasing demand in the
domestic market. The group is exposed to environmental risk related
to epidemic, since its entire milk collection is from the milk
producers in Rajasthan.
Constitution as a partnership concern with moderate net worth base
restricts its overall financial flexibility in terms of limited
access to external fund for any future expansion plans.
Furthermore, there is an inherent risk of possibility of withdrawal
of capital and dissolution of the firm in case of death/insolvency
of partner.
Key Rating Strength
Experienced partners
Mr. Sunil Kumar Tiwari, partner, is graduate by qualification and
has two decade of experience in the industry. He looks after
overall affairs of the firm and is assisted by other partners, Mr.
Vikas Choudhary, who is also graduate by qualification and has a
decade of experience in the industry and Mr Shiv Shankar Gupta who
also has 20 years of experience in the dairy industry. Further,
they are supported by a team of sales persons and C and F agents
having an experience in the field of marketing.
Location advantage with ease of availability of raw material and
labour
RDP's processing facility of dairy products is situated in
Rajasthan which has the second largest milk producing state in
India. In India major production of milk comes from Uttar Pradesh
followed by Rajasthan, Madhya Pardesh, Gujarat and Andhra Pradesh.
Further, skilled labor is also easily available by virtue of it
being situated in the Rajasthan belt of India. Also the partners
own seven Gaushala in Rajasthan which is will help the firm in its
raw-material requirement.
Liquidity: Stretched
Liquidity is marked by tightly matched accruals to repayment
obligations, highly utilized bank limits and low cash balance of
INR0.14 crore. Further, the firm has utilized 90-95% of its fund
based during past 12 months ended October 2019. The liquidity
ratios of the firm stood moderate marked by current ratio of 1.73
times and quick ratio stood below unity at 0.83 times as on March
31, 2019.
Jaipur-based (Rajasthan), Ratnawali Dairy Products LLP (RDP) was
formed in July, 2017 as a Limited Liability Partnership. The firm
has undertaken a project for setting up a plant for manufacturing
and processing of dairy products with an installed capacity of 1
lakh litre per day and a cold storage with capacity of 50,000 litre
per day. RDP commenced its commercial operations from September 12,
2018 and currently dealing in sale of Milk and Ghee under the brand
name of "DHENURAS" in Rajasthan and Hyderabad. Further the firm
will also start manufacturing of other dairy products including
Paneer and Buttermilk etc.
ROMA SHIPPING: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Roma Shipping Private Limited
136, Sindhi Society
Chembur, Mumbai 400071
Insolvency Commencement Date: November 16, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 14, 2020
Insolvency professional: Bharat Ramakant Upadhyay
Interim Resolution
Professional: Bharat Ramakant Upadhyay
507, 5th floor, C2 Wing
Skyline Wealth Space
Skyline Oasis Complex
Premier Road
Near Vidyavihar Station
Ghatkopar-West
Mumbai 400086
E-mail: brupadhyay@hotmail.com
brupadhyay.irp@gmail.com
Last date for
submission of claims: November 30, 2019
S.P.M. LTD (INDIA): Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: S.P.M. (India) Limited
#132/52, GD House
Bendre Nagar
Subramanyapura Main Road
Subhashchandra Bose Road
BSK 2nd Stage
Bangalore 560070
Insolvency Commencement Date: November 5, 2019
Court: National Company Law Tribunal, Bengaluru Bench
Estimated date of closure of
insolvency resolution process: May 3, 2020
Insolvency professional: Sumana Rao
Interim Resolution
Professional: Sumana Rao
No. 56, 4th Cross
2nd Sector, Nobo Nagar
Bannerghatta Road
Bengaluru 560076
E-mail: csraosumana@gmail.com
Last date for
submission of claims: November 25, 2019
SAI KRISHNODAYA: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: M/s. Sai Krishnodaya Industries Private Limited
# D.No. 1-8-333 & 334
"A", Wane", Near HUDA Office
U.S. Consulate Lane
Begumpet, Secunderabad 500016
Insolvency Commencement Date: October 17, 2019
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: April 14, 2020
(180 days from commencement)
Insolvency professional: Mr. Arun Kumar Malani
Interim Resolution
Professional: Mr. Arun Kumar Malani
6-1-68/3/1, Sy No. 96
H.No. 33, Dream Valley
(Adj. Pillar No. 306 PVR Express Flyover)
Shivram Pally, Aaramghar
R.R. District, Hyderabad 500052
E-mail: arunkumarmalani29@gmail.com
Tel.: 8977055544
Last date for
submission of claims: November 27, 2019
SALASAR BALAJI: CARE Lowers Rating on INR15cr LT Loan to B+
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Salasar Balaji Industries (SBI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE B+; ISSUER NOT COOPERATING;
Facilities Revised from CARE BB-; ISSUER
NOT COOPERATING on the basis of
Best available information
Detailed Rationale
CARE had, vide its press release dated July 3, 2018 placed the
ratings of SBI under the 'issuer noncooperating' category as SBI
had failed to provide information for monitoring of the rating. SBI
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls from June 3,
2019 to November 7, 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 ratings.
The rating of bank facilities of Salasar Balaji Industries takes
into account thin profitability margins, decline in revenue,
deterioration in capital structure, susceptibility to price
fluctuation on its inventory, foreign exchange fluctuation risk and
presence in highly fragmented industry regulated by the government.
The rating, however, derives strength from promoter's experience in
the cotton textile industry, strategic location of the firm and
diversified geographical and diversified customer base.
Detailed description of the key rating drivers
At the time of last rating on July 3, 2018 the following were the
rating weaknesses and strengths:
Key Rating Weakness
Decline in the revenue in FY15 along with thin profitability
margins: During FY15 (refers to the period April 1 to March 31),
revenue from operations decreased significantly by 48.36% from
INR201.20 crore in FY14 to INR103.89 crore in FY15, due to decline
in the revenue from cotton bales. Quantity sold decreased from
102,508 quintals in FY14 to 3,042 quintals in FY15 owing to decline
in exports at the back of subdued industry. The PBILDT margin,
however, improved marginally to 2.77% in FY15 on account of lower
raw material costs during the year. Furthermore, the PAT level and
margin reduced significantly by nearly 73%to 0.13%. Furthermore,
for 9MFY16 (Provisional), the firm registered income of INR83.40
crore with PAT of INR0.04 crore.
Deterioration in capital structure and debt coverage indicators:
The capital structure of the firm deteriorated marked by overall
gearing ratio from 1.68x as on March 31, 2014, to 2.26x as on
March 31, 2015, on account of increase in unsecured loans and bank
borrowings. Interest coverage) also deteriorated during the year.
Susceptibility to price fluctuation on its inventory and forex
fluctuation risk: Cotton prices are highly volatile and given the
time lag between purchase and sales, any adverse fluctuation in the
prices can adversely affect the profitability margins of the firm,
which already remains thin due to the trading nature of operations.
This apart, the firm being an exporter is also exposed to forex
risk.
Presence in highly fragmented industry and regulated by government:
Excessive Government regulation in the textile sector starting from
Minimum Support Price (MSP) of cotton given to farmers,
quantitative export restrictions imposed on cotton ginning,
pressing spinning units for export of cotton bales and change in
the policy-related duty drawback benefits on cotton and cotton yarn
will affect the costs and realizations of cotton and cotton yarn.
Furthermore, the industry is fragmented resulting in intense
competition from other organized and unorganized players.
Key Rating Strengths
Experienced promoters extending financial support: SBI belongs to
Sri Salasar Balaji Group, which has presence in the cotton textile
industry for more than two decades. The main promoter, Mr Mahesh
Kumar Khetan has been involved in the textile industry since last
three decades. The promoters have infused the unsecured loan of
INR1.52 crore in FY15 (outstanding unsecured loan as on March 31,
2015 is INR4.00 crore.)
Strategically located within the cotton producing area: SBI is
located in Adilabad, Telangana, which is one of the major cotton
growing areas in the country. The unit is also well connected to
Khammam, Warangal, Guntur and Nagpur, which are prominent
cotton-growing belts.
Diversified geographical and customer base: The firm sells their
products across India and also exports to Turkey, China and
Bangladesh. The firm has a diversified customer base of more than
500 customers with wide geographical reach.
Satisfactory operating cycle despite deterioration: The operating
cycle of the firm increased from 19 days in FY14 to 39 days in FY15
on account of increase in average inventory period from 9 days in
FY14 to 22 days in FY15 and collection period from 14 days in FY14
to 24 days in FY15. However, despite the increase, the operating
cycle remains at satisfactory level for FY15.
Satisfactory Liquidity Position: The Company has low working
capital utilisation levels and operating cycle leading to
satisfactory liquidity position.
SBI, incorporated in 1996 by Mr Mahesh Kumar Khetan, Mr Dhiraj
Kumar Khetan, Mr Vikrant Kumar Khetan and Mrs Vidya Devi Khetan as
a partnership firm. The firm is engaged in trading, manufacturing
and processing of Kapas to produce cotton bales and processing of
cotton seeds to produce cotton seed wash oil & cotton seed oil
cake. The firm is a part of Sri Salasar Balaji group, promoted by
Mr Mahesh Kumar Khetan. The other group companies; Shree Ashta
Laxmi Spinning Mills Pvt Ltd (a spinning mill), Sri Salasar Balaji
Agro Tech Private Limited and Agrawal Ginning & Pressing Pvt Ltd,
are also engaged in the cotton textile industry with business
activity spanning across cotton ginning and pressing and trading.
SAM INDUSTRIAL: CARE Lowers Rating on INR7.50cr Loan to 'C'
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Sam
Industrial Enterprises Limited (SIEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.50 CARE C; ISSUER NOT COOPERATING;
Facilities Revised from CARE B+; Issuer
Not Cooperating based on best
available information
Short-term Bank
Facilities 2.50 CARE A4; ISSUER NOT COOPERATING;
Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 4, 2017, placed
the rating of SIEL under the 'issuer non-cooperating' category as
Sam Industrial Enterprises Limited had failed to provide
information for monitoring of the rating. Sam Industrial
Enterprises Limited continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and email dated November 23, 2018, November 16, 2018,
and November 13, 2018. 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).
The ratings have been revised on account of non-availability of
requisite information due to non-cooperation by Sam Industrial
Enterprises Limited with CARE'S efforts to undertake a review of
the rating outstanding. CARE views information availability risk as
a key factor in its assessment of credit risk. Further, the ratings
of the company continue to remain constrained by small scale of
operations, thin profitability margins, leveraged capital and weak
debt coverage indicators, working capital intensive nature of
operations and competitive nature of industry. The ratings,
however, continue to draw comfort from long track record of
operations coupled with experienced director.
Detailed description of the key rating drivers
At the time of last rating on September 4, 2017, following were the
rating weaknesses and strengths.
Key Rating Weaknesses
Small scale of operations: The scale of operations of the company
remained small as marked by total operating income and gross cash
accrual of INR47.79 crore and INR0.41 crore for FY18. The small
scale limits the company's financial flexibility in times of stress
and deprives it of scale benefits.
Thin profitability margins, leveraged capital structure and weak
coverage indicators: The profitability margins of the company
remained thin for the past three financial years, i.e., FY16–FY18
owing to tender driven nature of business. The PBILDT and PAT
margins stood at 6.65% and 0.47% for FY18. Further, the capital
structure of the company marked by overall gearing ratio stood at
1.24x as on March 31, 2018 as against 1.28x as on March 31, 2017.
The coverage indicators of the company marked by interest coverage
ratio and total debt to GCA stood weak at 1.22x and 47.19x for
FY18.
Working capital intensive nature of operations: The high working
capital requirements are largely met through bank borrowings. The
operations of the company a re-highly working capital intensive
marked by an average operating cycle of 160 days in FY18. The
company sells products to various government agencies and schools
from whom the company receives payments on delivery of the books to
its customers. Due to procedural delays at the customer end, there
is usually a delay in recovery of debtors. This resulted into an
average collection period of around 99 days for FY18. The company
normally receives credit period of around 15-30 days from its
suppliers. The company is required to maintain adequate raw
material inventory of paper, ink, lubricants, packing material etc.
for smooth running of its printing operations. This resulted into
an average inventory period of 86 days for FY18.
Competitive nature of industry: The printing and publication
industry is characterized by a high level of fragmentation and
regional concentration. Indian printing industry is characterized
as fragmented & competitive with very little differentiation in
terms of service offering. SIEL faces direct competition from
various organized and unorganized players in the market. There are
a number of small and regional players who are located in and
around area and catering to the same market which has limited the
bargaining power of the company and has exerted pressure on its
margins. The profits margins are likely to be under pressure in the
medium term.
Key rating strengths
Long track record of operations coupled with experienced director
The business is currently being managed by Mr Amit Kaka , Mr Puneet
Kumar Mittal and Mr Nitin Kumar Mittal. Mr Amit Kaka has an
experience of almost two decades in this printing and publication
business through his association with Kaka Publication Private
Limited, Kaka Sons Private Limited and SIEL. Mr Puneet Kumar Mittal
and Mr Nitin Kumar Mittal have an experience of more than two
decades each in printing and publishing industry through their
association with SIEL.
Noida (Uttar Pradesh) based, SAM Industrial Enterprises Limited
(SIEL) was incorporated in 1992 as SIRIUS Industrial Enterprises
Limited. In 1995, the name changed to the present one. SIEL is
engaged in designing, printing and binding of books.
SBS TRANSPOLE: CARE Reaffirms D Rating on INR100cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of SBS
Transpole Logistics Private Limited (STLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 100.00 CARE D; ISSUER NOT COOPERATING
Facilities Reaffirmed
Short term Bank
Facilities 116.00 CARE D; ISSUER NOT COOPERATING
Reaffirmed
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from STLPL to monitor the
rating(s) vide e-mail communications/letters dated November 7,
2019, November 8, 2019 and November 11, 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 SBS Transpole Logistics Private Limited's
bank facilities will now be denoted as CARE D/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 ratings.
Detailed description of the key rating drivers
At the time of last rating on August 1, 2018 the following were the
rating strengths and weaknesses:
Delays in debt servicing: There have been on-going delays by SBS
Transpole Logistics Pvt Ltd in servicing of its debt obligations.
The company was incorporated in August, 2004 by the name of
Transpole Logistics Private Limited and is engaged in integrated
logistics services. Subsequently, in Oct, 2014; the name was
changed to the current one, SBS Transpole Logistics Private Limited
(STLPL). STLPL is promoted by Mr Anant Chaudhary and Mr Vivek
Shukla and the company business segment offers general logistics,
including 3PL, international logistics, warehouse logistics and
various other multi-modal logistics solutions.
SHUBHAM INDUSTRIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Shubham Industries Limited
C/o Purna Ch Dasadhikari Tapundia Remu
Jasuli Baleshwar
Baleshwar OR 756081
IN
Insolvency Commencement Date: November 14, 2019
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: May 13, 2020
Insolvency professional: CA. Anil Kumar Saraf
Interim Resolution
Professional: CA. Anil Kumar Saraf
M/s Saraf & Associates
Saha Court
8 Ganesh Chandra Avenue
3rd Floor, Room No. 12
Kolkata 700013
E-mail: anilsaraf.ip@gmail.com
Last date for
submission of claims: November 28, 2019
SIDDHI VINAYAK: CARE Lowers Rating on INR6cr LT Loan to 'D'
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Siddhi Vinayak Importers (SVI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.00 CARE D; ISSUER NOT COOPERATING;
Facilities Revised from CARE B+; Stable
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SVI to monitor the rating
vide letter dated November 4, 2019 and e mail communications dated
November 1, 2019, October 31, 2019, July 9, 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 Siddhi Vinayak Importers'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 of the firm has been revised on account of
partnership nature of constitution and highly fragmented and
competitive nature of industry.
Key Rating Weaknesses
Partnership nature of constitution
SVI's constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the pa rtners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners.
Highly fragmented and competitive nature of industry
Trading industry is highly unorganized & fragmented in nature as
low entry barriers, leads to presence of many players. This leads
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 players in the industry. Availability of goods is
not an issue for the industry but procuring these
goods at competitive prices poses a challenge to maintain margins.
Siddhi Vinayak Importers (SVI) was established in October, 2013 as
a partnership firm and is currently being managed by Mr. Ravinder
Garg, Mr. Ram Jiwan Garg, Mr. Ram Avtar and Mr. Saksham Garg
sharing profit and losses equally. SVI is engaged in trading of
polyester knitted fabric at its facility in Rohtak, Haryana. SVI
directly imports 100% of the traded good from manufacturers based
in China and further directly sells the goods to manufacturers and
traders based in Punjab, Haryana, Delhi, Uttar Pradesh etc. under
the brand name of "Elegance".
SRI RAMACHANDRA: CARE Reaffirms B+ Rating on INR7.0cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Sri
Ramachandra Pooja Industries (SRPI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.00 CARE B+; Stable Removed from
Facilities INC and reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SRPI continue to be
tempered by small scale of operations, seasonal nature of
availability of paddy resulting in working capital intensive nature
of operations and partnership nature of constitution with inherent
risk of withdrawal of capital. The ratings also take in to account
marginal deterioration in capital structure, debt coverage
indicators and working capital cycle and marginal improvement in
the profitability margins.
The rating is, however, continues to be underpinned by the
established track record and experience of partner for more than
two decades in rice milling industry, stable total operating income
during FY19 (Prov.), healthy demand outlook of rice and location
advantage with presence in cluster and easy availability of paddy.
Rating Sensitivities
Positive Factors
* Increase in scale of operations marked by total operating income
* Increase in profitability or gross cash accruals on a sustained
basis
Negative Factors
* Deterioration in capital structure and debt coverage indicators
* Deterioration in cash flow from operation and elongation in
working capital cycle
* Negative change in government policy
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations and thin profitability margins
The scale of operations continued to remain small at total
operating income of INR38.50 crore in FY19 (Prov.) with a small net
worth of INR4.40 crore as on March 31, 2019 (Prov.). The net worth
has improved from INR3.96 crore in FY18 on back of accretion of
profits to the reserves. The profitability margin increased
marginally, by 16 bps, from 1.55% in FY18 to 1.71% in FY19 (Prov.)
on back of reduced cost of raw material. The PAT margin stood
stable at 0.12% in FY19 (Prov.) due to increase in the interest
cost on back of increase in the working capital utilization to fund
the day-to-day business needs.
Marginal deterioration in capital structure, weak debt coverage
indicators and operating cycle
The capital structure of the firm marked by overall gearing
deteriorated from 1.27x as on March 31, 2018 to 1.60x as on March
31, 2019 (Prov.) due to increased working capital for funding the
day-to-day business of the firm despite an increase in the net
worth of the firm and repayment of long-term loan. The debt
coverage indicators of the firm continued to remain weak, and
declined, marked by total debt/GCA, from 35.65x in FY18 to 54.52x
in FY19 (Prov.) due to increase in total debt on back of increase
in the working capital balance on the balance sheet date. The
PBILDT interest coverage ratio, declined marginally from 1.20x in
FY18 to 1.15x in FY19 (Prov.) due to increase in interest expenses.
TD/CFO declined and stood negative at 3.80x in FY19 (Prov.) due to
negative working capital changes resulting from an increase in the
receivables on as balance sheet date.
The operating cycle of the firm increased and stood at 92 days in
FY19 (Prov.) as against 78 days in FY18 on back of increase in the
average inventory period from 55 days in FY18 to 69 days in FY19
(Prov.) to meet the demand for rice. The firm receives the payment
from its customer within 45-60 days and makes the payment to its
supplier within 5-10 days. The firm holds the average inventory of
around 60-80 days to meet the requirement of customer as on need
basis. The average utilization of working capital limit stood at
~98% for the last 12 month ended October 31, 2019.
Seasonal nature of availability of paddy resulting in 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 the
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.
Majority of the firm's funds of the firm are blocked in inventory
and with customers. Moreover, the padd y is procured from the
farmers generally against cash payments or with a minimal credit
period of 5-10 days while the millers have to extend credit to the
wholesalers and distributors around 20-30 days resulting in high
working capital utilization reflecting working capital intensity of
business.
Partnership nature of constitution with inherent risk of withdrawal
of capital
SRPI, being a partnership firm, is exposed to inherent risk of the
partner's capital being withdrawn at time of personal contingency
and firm being dissolved upon the death/retirement/insolvency of
the partners. Moreover, partnership firm business has restricted
avenues to raise capital which could prove a hindrance to its
growth. However, the partners infused capital of INR0.39 crore
during FY19 (Prov.).
Key Rating Strengths
Established track record and experience of partner for more than
two decades in rice milling industry
SRPI was promoted by Mr. Krishna Rao (Managing Partner), Mr. Subba
Rao (partner) and his family members. Partners have around 25 years
of experience in rice processing business. Through his experience
in the rice processing, they have established healthy relationship
with key suppliers, customers, local farmers, dealers and also with
the brokers facilitating the rice business within the state.
Stable total operating income during FY19 (Prov.)
The total operating income remained almost stable at INR38.50 crore
in FY19 (Prov.) as against INR38.48 crore in FY18 on back of demand
from existing customers remaining almost stable.
Healthy demand outlook of rice
Rice is consumed in large quantity in India which provides
favorable 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. The
rice industry in India is broadly divided into two segments –
basmati (drier and long grained) and non-basmati (sticky and short
grained). Demand of Indian basmati rice has traditionally been
export oriented where the South India caters about one-fourth share
of India's exports. However, with a 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 acreage 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 has a stable domestic demand outlook. On
the export front, global demand and supply of rice, government
regulations on export and buffer stock to be maintained by
government will determine the outlook for rice exports.
Location advantage with presence in cluster and easy availability
of paddy
The rice milling unit of VDI is located at Koppal district which is
the top district for producing rice in Karnataka. The manufacturing
unit is located near the rice producing region, which ensures easy
raw material access and smooth supply of raw materials at
competitive prices and lower logistic expenditure.
Liquidity Analysis: Stretched
Liquidity was stretched marked by low cash accruals, low cash
balance and high utilization of fund-based limits with moderate
cash flows. Cash flow from operating activity (CFO) has declined
and stood negative at INR1.85 crore in FY19 (Prov.) as against
positive CFO of INR0.22crore in FY18. As on March 31, 2019, cash &
bank balance also remained low at INR0.07 crore as compared to
INR0.06 crore as on March 31, 2018. Average utilization of working
capital limit remained high at ~98% for the past 12 months ended
October, 2019.
Sri Ramachandra Pooja Industries (SRPI) was established in 1993 as
a partnership firm. SRPI is engaged in milling and processing of
rice. The rice milling unit of the firm is located at Bevinahal Po:
Karatagi, Gangavathi, Koppal, Karnataka. Ap art from rice
processing, the firm is also engaged in selling off bi-products
such as broken rice, hus k and bran. The main raw material, paddy,
is directly procured from local farmers located in and around
Koppal District and the firm sells rice and other by-products in
Chennai, Tamilnadu, Andhra Pradesh, Mumbai, Bangalore etc.
Presently, the firm has installed capacity of 72 tons per day.
V.A.M. RESORTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: V.A.M. Resorts And Hotels Private Limited
Opp. Appex College Ved Vyas Puri
Meerut-Dehradun By Pass Road
Meerut 250103
(UP)
Insolvency Commencement Date: October 24, 2019
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: April 20, 2020
Insolvency professional: Mr. Ashish Singh
Interim Resolution
Professional: Mr. Ashish Singh
Flat No. 515, Baghban Apartment
Pocket Gh-2 Sector-28
Rohini, New Delhi
National Capital Territory of Delhi
110042
E-mail: ashishsinghcs@gmail.com
- and -
407, 4th Floor
Indraprakash Building
Barakhamba Road
New Delhi 110001
vamresorts.ip@gmail.com
Last date for
submission of claims: November 26, 2019
VASAVI POWER: CARE Maintains 'D' Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vasavi
Power Services Private Limited (VPS) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Short-term Bank 50.00 CARE D; ISSUER NOT COOPERATING;
Facilities Based on best available
Information
Detailed Rationale
CARE had, vide its press release dated July 2, 2018 placed the
ratings of VPS under the 'issuer non-cooperating' category as VPS
had failed to provide information for monitoring of the rating. VPS
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls from August
30, 2019 to November 7, 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 ratings.
The ratings take into account delays in debt servicing on account
of stretched liquidity position of the company.
Detailed description of the key rating drivers
At the time of last rating on July 2, 2018 the following were the
rating weaknesses and strengths:
Key Rating Weaknesses
Delays in debt servicing: The Company has been facing stretched
liquidity position with cash flow mismatch resulting in delays in
servicing of debt obligations.
Key Rating Strengths
Experienced promoter and long proven track record of the company:
Mr N. Ramaiah is the founder, Chairman & Managing Director of the
company who is a first-generation entrepreneur with more than three
decades of experience in providing end to end services across the
power generation spectrum. Mr G Ramesh Babu and Mr N Kiran Kumar
are the two Executive Directors of the company with more than two
decades of experience in various industries.
Vasavi Power Services Private Limited (Vasavi) is primarily engaged
in the business of ETC (Erection, testing and commissioning) and
MRO (Maintenance, repair and overhauls) of power equipment. The
company was established as a proprietorship concern, Vasavi
Engineering Works, in 1980. In 1982, it was reconstituted as a
partnership firm. In 2001, it was reconstituted as a private
limited company, under its current name.
VASUDEV KHANDSARI: CARE Assigns 'B' Rating to INR4.0cr LT Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Vasudev
Khandsari Udyog (VKU), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facility 4.00 CARE B; Stable Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facility of VKU is primarily
constrained on account of project implementation risk and its
seasonal nature of the industry. The rating, further, continues to
be constrained on account of its vulnerability of operations to
regulatory risk and market volatility. The ratings however,
favorably take into account wide experience of partner in the sugar
industry and location advantage.
Rating Sensitivities
Positive
* Successful completion of its greenfield project within the
envisaged time and cost parameter.
* Stabilization of its operations with achieving envisaged level of
Total Operating Income (TOI) and profitability.
Negative
* Delay in implementation of the project with cost overrun.
* Delay in stabilization of operations
Detailed description of the key rating drivers
Key Rating Weakness
Project implementation risk
VKU undertook a greenfield project to processing of Jaggery and
Khandsari with total crushing capacity of 500 Tons of cane per day
(TCD). The company had envisaged total project cost of INR4.75
crore towards the project to be funded through term loan of INR2.75
crore and remaining through promoter's contribution of INR2.00
crore. Till October 31, 2019, it has incurred total cost of INR3.00
crore towards the project funded through promoter's contribution of
INR2.00 crore and INR1.00 from unsecured loans.
Seasonal nature of the industry
The sugar industry being seasonal in nature has high working
capital requirements during the peak season which is from October
to March. Sugarcane is procured from farmers and crushed during
this period and hence, the average inventory holding remains high
as on balance sheet date. Moreover, the production of sugar happens
for six months and remaining time the plant remains closes that led
to seasonality in the revenue.
Vulnerability of operations to regulatory risk and market
volatility
The entire value chain of the sugar industry i.e. sugarcane
procurement to its pricing, allocation of sugarcane area to
distribution of sugar is subject to control of the Central/State
Government. Sugarcane is the key raw material used for the
manufacture of sugar. The availability of sugar depends on factors
like demand/supply of sugarcane, area under sugarcane cultivation;
switch over to alternate crop, climatic conditions, etc. Further,
the Central Government determines the price viz. Fair Remunerative
Price (FRP)/ State Advisory Price (SAP), which is the minimum price
to be paid to the sugarcane growers/farmers. The FRP is independent
of the market determined selling price of sugar. However, sugar
companies generally buy sugarcane at a higher price than FRP. Sugar
Industry is one of the highly volatile industries with constant ups
and down.
Key Rating Strengths
Wide experience of partner in the sugar industry
VKU was formed by Mr. Vivek Mahajan, Mr. Vinod Nema and Mr. Sanjay
Gupta who has more than three decades of experience in the
industry. Prior to the formation of VKU, all the three partners
were promoting Balaji Khandsari Udhyog which was engaged in
processing of jaggery since last 12 years but now had been
dissolved last year.
Mr Vivek Mahajan is engaged in the industry since more than three
decades and will look after the procurement division in VKU.
Mr.Vinod Nema, has around three decades of experience of sugar
industry and also promoting 'Kanserilal Vijay Kumar' which is
engaged in trading of sugar as well as packing of soyabean oil
since last five decades. Mr. Sanjay Gupta also holds more than
three decades of experience in sugar industry and also promoting
Honey Trading Company whic h is engaged in processing of jaggery.
Further, all the three partners will look after the overall
management of the firm.
Location advantage
VKU's manufacturing plant is located in district Narsinghpur, which
has good irrigation facilities and enjoys adequate rainfall. The
plant facility is located within area of sugarcane farms which
makes it easy for transportation. Agriculture is the basis of
Madhya Pradesh economy, less than half of the land area is
cultivable; however its distribution is quite uneven because of
variations in topography, rainfall, and soils. Further, the
rainfall data suggest that Narsinghpur area has enjoyed normal to
good monsoons over the last five years.
Liquidity: Stretched
The firm has incurred around 63.15% of total cost of project and it
has enough funds to incur balance cost of project. Further,
commercial operation is expected to start from December 2019 and it
has proposed term loan of INR2.75 crore and working capital limit
of INR1.25 crore for meet out working capital gap.
Narsinghpur (Madhya Pradesh) based Vasudev Khandsari Udhyog (VKU)
is a partnership concern formed recently in April, 2019 by Mr. Mr.
Vivek Mahajan, Mr. Vinod Nema and Mr. Sanjay Gupta sharing profit
and loss in the ratio equally. VKU was established with an aim to
manufacture Jaggery, and Khandsari with tota l crushing capacity of
500 Tons of cane per day (TCD). The Plant facility of the firm is
located in Narsinghpur district of Madhya Pradesh. It will procure
sugarcane from th e local farmers of Narsinghpur. The project was
started in April 2019 and will be c ompleted till 1st week of
December 2019. The total cost of project is INR4.75 crore and to be
funded through term loan of INR2.75 crore and promoter's fund of
INR2.0 0 crore.
VICTRONICS COMMUNICTATIONS: Insolvency Resolution Case Summary
--------------------------------------------------------------
Debtor: Victronics Communications Private Limited
Registered office:
B-4, Ground Floor Shankar Garden
Vikas Puri, West Delhi
Delhi 110018
Insolvency Commencement Date: October 31, 2019
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 5, 2020
(180 days from commencement)
Insolvency professional: Aditya Kumar
Interim Resolution
Professional: Aditya Kumar
103, Pratap Bhawan
Bahadur Shah, Zafar Marg
New Delhi 110002
E-mail: aditya@ashwaniassociates.in
victronics@ashwaniassociates.in
Last date for
submission of claims: November 20, 2019
WADHAWAN GLOBAL: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Wadhawan Global Hotels & Resorts Private Limited
Registered office:
4th Floor, HDIL Towers
Anant Kanekar Marg
Bandra-East, Mumbai
MH 400051
IN
Insolvency Commencement Date: November 11, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 9, 2020
(180 days from commencement)
Insolvency professional: Mr. Nitin Jain
Interim Resolution
Professional: Mr. Nitin Jain
E 337 Ground Floor
Greater Kailash-I
New Delhi
National Capital Territory of Delhi
110048
E-mail: nitinjain@
ichinencapitalservices.com
- and -
E-10A, Kailash Colony
Greater Kailash-1
New Delhi, Delhi 110048
E-mail: nitinjain@aaainsolvency.com
wadhawanglobalhotels@
aaainsolvency.com
Last date for
submission of claims: November 25, 2019
WINDCASTLE EXPORTS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Windcastle Exports Private Limited
7-A, Giriraj Building, Ground Floor
73, Sant Tukaram Road, Iron Market
Masjid Station (East) Mumbai
Mumbai City Mh 400009
IN
Insolvency Commencement Date: November 8, 2019
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: May 11, 2020
Insolvency professional: Pranav Damania
Interim Resolution
Professional: Pranav Damania
407, Sanjar Enclave
Above Mahindra Showroom
Opp. PVR Cinema
S.V. Road, Kandivali West
Mumbai 400067
E-mail: pranav@winadvisors.co.in
Last date for
submission of claims: November 27, 2019
=====================
N E W Z E A L A N D
=====================
HALIFAX NZ: Liquidator Urges Investors to Come Forward
------------------------------------------------------
BusinessDesk reports that liquidators of collapsed online
derivative trader Halifax NZ are calling on investors who put money
into the business to have their say.
With around AUD200 million available to distribute, KPMG liquidator
Morgan Kelly's early estimate is that 2,100 New Zealand investors
will get back 85-to-95 cents in the dollar from trust funds and can
then join unsecured creditors in claims for the remaining money,
BusinessDesk says.
"The portfolio changes all the time and it has gone back up in
value and the investor claims against that portfolio have moved too
so it could be higher," the report quotes Mr. Kelly as saying,
indicating that it would not be lower than that range.
BusinessDesk says Mr. Kelly estimated more than 150 investors have
attended meetings held in Auckland this week or watched an online
webcast of them.
"They are angry, they are confused and they are frustrated," said
Mr. Kelly, who wants investors to come forward with their own views
about how to divide up the money.
BusinessDesk relates that KPMG's suggested proposal sets out four
different classes of investor, depending on their circumstances.
The liquidator said he cannot return Halifax funds without a judge
giving the green light.
"Whatever decision the court makes someone is going to be unhappy
and that's why we are asking investors to give us their feedback on
what options they have."
According to BusinessDesk, Mr. Kelly said while the liquidators
have a plan, it is not for the court to rubber-stamp, and he hopes
for debate over what is to happen.
"In a way, it's like we are putting a rugby ball into a scrum," Mr.
Kelly, as cited by BusinessDesk, said. "We need representative
respondents so there is a lawyer representing them and we can test
the assumptions of those people who are going to be unhappy."
Investors have until Dec. 6 to respond to the liquidator's
questionnaire and indicate whether they want separate legal
representation, the report notes. The case will be unique as it
will require Australian and New Zealand courts to jointly hear
evidence and decide what to do with the funds.
BusinessDesk adds that Mr. Kelly's second report as liquidator
showed $455,000 was paid to KPMG for his role as administrator and
about $230,000 was paid in legal fees and disbursements during the
administration.
Halifax went into administration in November 2018. Halifax NZ was
placed in liquidation in March, with initial estimates suggesting a
AUD20 million shortfall. Most New Zealanders using the platform of
the Australian-headquartered company would have used its
Interactive Brokers website.
About Halifax New Zealand
Halifax is a New Zealand-based Forex brokerage company.
Halifax New Zealand was placed into voluntary administration on
Nov. 27, 2018. Morgan Kelly, Stewart McCallum and Phil Quinlan of
Ferrier Hodgson were named administrators of the Company. They
were also appointed administrators of Halifax Investment Services
in Sydney on November 23, 2018.
=====================
P H I L I P P I N E S
=====================
BMS RURAL: Ex-President, Officers Charged for Fictitious Loans
--------------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) filed before
the Department of Justice (DOJ) Task Force on Financial Fraud a
criminal complaint against the former President and officers of the
closed BMS Rural Bank, Inc. for falsification of commercial
documents under the Revised Penal Code and violation of the PDIC
Charter.
BMS Bank was ordered closed by the Monetary Board of the Bangko
Sentral ng Pilipinas and placed under PDIC receivership on May 24,
2010. Upon PDIC's investigation, it was discovered that the
respondents created two fictitious loans totaling PHP2.06 million.
PDIC investigation further revealed that respondents falsified the
bank's promissory notes, disclosure statements and loan sheets to
make it appear that the alleged borrowers obtained loans from BMS
Bank. In their affidavits, the alleged borrowers denied obtaining
loans from the bank, citing that their signatures on the promissory
notes were forged. Two of the alleged borrowers were found to be
outside the country when the purported loans were transacted,
making it impossible for them to sign off personally on the loan
documents.
The filing of cases against erring individuals is in support of
PDIC's efforts to bring to justice parties that engage in
anomalous, fraudulent and irregular acts that pose risk to
depositors and the Deposit Insurance Fund, PDIC's main fund source
for payout of deposit insurance claims. PDIC continues to pursue
legal actions against bank officials and personnel who engage in
unsafe or unsound banking practices that threaten the stability of
the country's banking system. PDIC is mandated by its Charter to
generate, preserve, maintain faith and confidence in the country's
banking system, and protect it from illegal schemes and
machinations.
=================
S I N G A P O R E
=================
HYFLUX LTD: Inks SGD400 Million Rescue Deal with Utico
------------------------------------------------------
Fiona Lam at The Business Times reports that Hyflux Ltd on Nov. 26
entered into a restructuring agreement with white knight Utico for
a SGD400 million rescue package.
Under the deal, the Middle Eastern utility firm will subscribe for
new Hyflux shares representing 95% of the enlarged capital for a
total amount of SGD300 million, via private placements, the report
says.
Utico will also grant a working capital line of a principal amount
up to SGD100 million to Hyflux, subject to the terms and conditions
of an agreement to be entered into between the parties, BT
relates.
According to BT, the debt-laden Singapore firm will seek the
court's leave to convene the meetings of creditors to approve the
schemes of arrangement.
Under the schemes, the unsecured creditor group will be paid SGD250
million pro rata.
Meanwhile, each holder of Hyflux preference shares and perpetual
securities (PNP) can choose from two options under the schemes,
says BT.
BT notes that the first option is to receive an upfront cash
payment that is the lower of SGD1,500 or 50% of their holdings
each. The total principal amounts payable under this option will be
capped at SGD50 million.
The second option for PNP investors is to receive a cash amount
that is the lower of SGD1,500 or 50% of their holdings each, but
the latter will be paid out over two years in five equal
instalments with a yearly interest of 1.25%, BT says.
According to BT, PNP investors who choose the second option will
also receive an additional cash payout. If shares of Utico or an
affiliate are listed within two years of the transaction's
completion date, this additional payout will the higher of either
the cash equivalent of 4%of issued shares at the listing price or
SGD50 million. If such listing does not occur within the two years,
the additional payout will be SGD50 million.
A circular will be despatched to Hyflux shareholders in due course,
the report states.
BT says the embattled water treatment firm is undergoing a
court-supervised process to reorganise its liabilities and
businesses. Its debt moratorium granted by the court is in force up
to Dec. 2 this year.
Based in the United Arab Emirates, Utico develops water and power
infrastructure in the Middle East region. The firm was identified
by Hyflux through a new investor search process which began after
an earlier rescue deal by SM Investments fell through, the report
adds.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***