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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, January 29, 2020, Vol. 23, No. 21
Headlines
A U S T R A L I A
DEVELOPMENT STELLER: Second Creditors' Meeting Set for Feb. 4
DRILLING SERVICES: Second Creditors' Meeting Set for Feb. 6
GRANNYFLAT LEADERS: Second Creditors' Meeting Set for Feb. 5
HYBRID AGENCY: Closing Doors Following Liquidation
JOBSJOBSJOBS PROPRIETARY: Second Creditors' Meeting Set for Feb. 6
JXT GLOBAL: Second Creditors' Meeting Set for Feb. 6
NOBLE METALS: First Creditors' Meeting Set for Feb. 6
STELLER LIFESTYLE: Second Creditors' Meeting Set for Feb. 4
I N D I A
AKAL PIPE: ICRA Maintains 'D' Rating in Not Cooperating
AMILIONN TECHNOLOGIES: Insolvency Resolution Process Case Summary
BHADOHI CARPETS: ICRA Lowers Rating on INR11.50cr LT Loan to B+
DEWAN HOUSING: Indiabulls Move NCLT to Secure Assigned Loans
DURGA POLYSTERS: ICRA Cuts Rating on INR50.21cr LT Loan to B+
ECOVINAL INT'L: ICRA Withdraws 'B+' Rating on INR10.5cr Loan
EDWARD FOOD: ICRA Lowers Rating on INR36cr NCD to C+
FUTURE EDUCATION: ICRA Lowers Rating on INR112.57cr Loan to D
GENRX PHARMACEUTICALS: Insolvency Resolution Process Case Summary
GIRIJASHANKAR COTTON: ICRA Keeps B+ Rating in Not Cooperating
JAI MAAKALI: ICRA Maintains 'D' Rating in Not Cooperating
KOTHARI PRIMA: Ind-Ra Withdraws 'B' Long Term Issuer Rating
KRISHNA CONSTRUCTION: ICRA Cuts Rating on INR3cr Loan to B+
LANCO SOLAR ENERGY: ICRA Keeps 'D' Rating in Not Cooperating
LANCO SOLAR: ICRA Maintains 'D' Rating in Not Cooperating
MARUTI PRODUCTS: ICRA Maintains B+ Rating in Not Cooperating
MBM ENGINEERING: ICRA Maintains 'B' Rating in Not Cooperating
MEGHA MARKETING: ICRA Lowers Rating on INR15cr Loan to B+
MILSHA AGRO: ICRA Reaffirms B+ Rating on INR2cr Term Loan
MUMS MEGA: ICRA Maintains 'B' Rating in Not Cooperating
N.R. CONSTRUCTIONS: ICRA Cuts Rating on INR8.50cr LT Loan to B+
NS MINT: Ind-Ra Cuts LT Issuer Rating to BB Then Withdraws Rating
PERUMAL SPINNING: ICRA Keeps 'B+' LT Rating in Not Cooperating
R.V. PLASTIC: ICRA Lowers Rating on INR10cr LT Loan to B+
RAJRAJESHWAR COTTON: ICRA Maintains B+ Rating in Not Cooperating
RR COTTONS: Ind-Ra Reassigns 'B+' LongTerm Issuer Rating
SAMKIT DIAMOND: ICRA Maintains B/A4 Rating in Not Cooperating
SHEKAR LOGISTICS: ICRA Lowers Rating on INR14cr LT Loan to D
SHREENATHJI COTGIN: ICRA Maintains B- Rating in Not Cooperating
SHRI RAM RICE: ICRA Maintains 'B+' Rating in Not Cooperating
SPECIALITY POLYMERS: ICRA Keeps 'D' Rating in Not Cooperating
SREE ANANTHALAKSHMI: ICRA Cuts Rating on INR3.0cr Loan to B-
SRI LAKSHMI: ICRA Assigns B- Rating to INR6.91cr Loan
SVS MOOKAMBIKA: ICRA Lowers Rating on INR13.80cr Loan to B+
TAURUS THERMOPLASTICS: ICRA Cuts Rating on INR5.75cr Loan to B+
VEENDEEP OILTEK: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
WINWIND POWER: ICRA Maintains 'D' Rating in Not Cooperating
ZETA INDUSTRIAL: ICRA Maintains B- Rating in Not Cooperating
I N D O N E S I A
ASURANSI JIWASRAYA: Indonesia Readies Rescue Plan for Insurer
J A P A N
NISSAN MOTOR: Will Go Bankrupt by 2020, Ghosn told Lawyer
N E W Z E A L A N D
CHALLENGE STATION: In Liquidation; Asset Sale Set Feb. 1
S I N G A P O R E
HYFLUX LTD: Utico Proposes Changes to Adviser Fees' Pot
- - - - -
=================
A U S T R A L I A
=================
DEVELOPMENT STELLER: Second Creditors' Meeting Set for Feb. 4
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Development
Steller Pty Ltd has been set for Feb. 4, 2020, at 12:00 p.m. at the
offices of Jirsch Sutherland, Level 30, at 140 William Street, in
Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 3, 2020, at 5:00 p.m.
Malcolm Kimbal Howell of Jirsch Sutherland was appointed as
administrator of Development Steller on Dec. 20, 2019.
DRILLING SERVICES: Second Creditors' Meeting Set for Feb. 6
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Drilling
Services Australia Pty Ltd has been set for Feb. 6, 2020, at 10:00
a.m. at the offices of Vincents Chartered Accountants, Level 34, at
32 Turbot Street, in Brisbane.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 5, 2020, at 5:00 p.m.
Nick Combis of Vincents Chartered Accountants was appointed as
administrator of Drilling Services on Jan. 2, 2020.
GRANNYFLAT LEADERS: Second Creditors' Meeting Set for Feb. 5
------------------------------------------------------------
A second meeting of creditors in the proceedings of Grannyflat
Leaders Pty Ltd has been set for Feb. 5, 2020, at 11:00 a.m. at the
offices of O'Brien Palmer, Level 9, at 66 Clarence Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 4, 2020, at 4:00 p.m.
Daniel Frisken of O'Brien Palmer was appointed as administrator of
Grannyflat Leaders on Jan. 6, 2020.
HYBRID AGENCY: Closing Doors Following Liquidation
--------------------------------------------------
Zoe Wilkinson at Mumbrella reports that Hybrid Agency is closing
its doors after going into liquidation. At the time of closing, the
agency had 14 staff members.
According to the report, the agency is noteworthy for its
short-lived merger with the Adelaide operations of Cummins &
Partners.
Mumbrella relates that the two agencies entered a joint venture in
2017, after Cummins & Partners closed their Adelaide branch and
moved their staff across to the Hybrid office. At the time the
agency rebranded to Cummins Hybrid. Just one year later Cummins &
Partners sold their stake in the agency and it rebranded again,
reverting back to Hybrid.
Hybrid has appointed Timothy Clifton of Clifton Hall as liquidator
of the business, ceasing the businesses operations immediately, the
report discloses.
According to Mumbrella, a statement from Clifton Hall said that the
agency was "unlikely to be in a position to complete outstanding
works" for its current contracts.
The statement also read: "The Liquidator stated that it was
disappointing to see a well-known agency unable to continue in the
marketplace. The Liquidator added that the he is considering the
full financial position of the Company and will report to creditors
in due course."
Most recently, Hybrid created a campaign for Drug & Alcohol
Services SA encouraging people to quit smoking, adds Mumbrella.
JOBSJOBSJOBS PROPRIETARY: Second Creditors' Meeting Set for Feb. 6
------------------------------------------------------------------
A second meeting of creditors in the proceedings of Jobsjobsjobs
Proprietary Limited has been set for Feb. 6, 2020, at 11:00 a.m. at
the offices of Romanis Cant, 2nd Floor, at 106 Hardware Street, in
Melbourne, Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 5, 2020, at 5:00 p.m.
Anthony Robert Cant and Renee Di Carlo of Romanis Cant were
appointed as administrators of Jobsjobsjobs Proprietary on Dec. 23,
2019.
JXT GLOBAL: Second Creditors' Meeting Set for Feb. 6
----------------------------------------------------
A second meeting of creditors in the proceedings of JXT Global Pty
Ltd has been set for Feb. 6, 2020, at 12:00 p.m. at the offices of
Romanis Cant, 2nd Floor, at 106 Hardware Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 5, 2020, at 5:00 p.m.
Anthony Robert Cant and Renee Di Carlo of Romanis Cant were
appointed as administrators of JXT Global on Dec. 29, 2019.
NOBLE METALS: First Creditors' Meeting Set for Feb. 6
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Noble Metals
Limited will be held on Feb. 6, 2020, at 10:30 a.m. at the offices
of BRI Ferrier Western Australia, Unit 3, at 99-101 Francis Street,
in Northbridge, WA.
Giovanni Maurizio Carrello and Shaun William Boyle of BRI Ferrier
Western Australia were appointed as administrators of Noble Metals
on Jan. 24, 2020.
STELLER LIFESTYLE: Second Creditors' Meeting Set for Feb. 4
-----------------------------------------------------------
A second meeting of creditors in the proceedings of:
- Steller Lifestyle Pty Ltd;
- Steller GA JV Pty Ltd;
- Steller Restaurants Pty Ltd; and
- Steller Projects Pty Ltd
has been set for Feb. 4, 2020, at 9:30 a.m., 10:00 a.m., 11:30
a.m., and 2:30 p.m., respectively, at the offices of Jirsch
Sutherland, Level 30, at 140 William Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 3, 2020, at 5:00 p.m.
Malcolm Kimbal Howell of Jirsch Sutherland was appointed as
administrator of Steller Lifestyle, et. al on Dec. 20, 2019.
=========
I N D I A
=========
AKAL PIPE: ICRA Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------
ICRA said the ratings for the INR9.40 crore bank facilities of Akal
Pipe Industries (API) to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]D ISSUER NOT
COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.50 [ICRA]D ISSUER NOT COOPERATING;
Fund Based/CC Rating Continues to remain under
the 'Issuer Not Cooperating'
category
Long Term- 6.90 [ICRA]D ISSUER NOT COOPERATING;
Fund Based TL Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
API was established in March 2012 as a partnership firm of Mr.
Harbant Singh, Mr. Gurnam Singh, Mr. Harpreet Singh, Mr. Yadvinder
Singh and Mr. Nazam Singh sharing profits and losses in the ratio
of 51%, 14%, 13%, 13% and 9%, respectively. The entity is engaged
in the manufacturing of RCC (Reinforced cement concrete) pipes and
manholes.
AMILIONN TECHNOLOGIES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Amilionn Technologies Private Limited
B1, Manjeera Residency
Huda Heights Ashwini Layout
Jubilee Hills
Hyderabad TG 500033
IN
Insolvency Commencement Date: January 9, 2020
Court: National Company Law Tribunal, Lucknow (UP) Bench
Estimated date of closure of
insolvency resolution process: July 6, 2020
(180 days from commencement)
Insolvency professional: Swami Deen Gupta
Interim Resolution
Professional: Swami Deen Gupta
2/64, VisheshKhand
Gomti Nagar
Lucknow 226010 UP
E-mail: sdguptacmaip@gmail.com
amilionn19@gmail.com
Last date for
submission of claims: January 28, 2020
BHADOHI CARPETS: ICRA Lowers Rating on INR11.50cr LT Loan to B+
---------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Bhadohi Carpets, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating downgraded
from [ICRA]BB(Stable) and
continues to remain under the
'Issuer Not Cooperating'
Category
Rationale
The Long-Term rating downgrade is because of lack of adequate
information Bhadohi Carpets's performance and hence the uncertainty
around its credit risk. ICRA assesses whether the information
available about the entity is commensurate with its rating and
reviews the same as per its "Policy in respect of non-cooperation
by the rated entity". The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Bhadohi Carpets, ICRA has been trying to seek information from
the entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Bhadohi Carpets, a partnership firm promoted by Mr. Pankaj Kumar
Baranwal, Ms. Madhu Baranwal and Mr. Priyam Baranwal, was
established in March 2012 after the partition of Rupesh Kumar &
Brothers into the firms Bhadohi Carpets and Rupesh Kumar & Sons.
The firm is engaged in the manufacturing and export of carpets and
druggets. It has a production capacity of around 90,000 square
meters across several production centers in the Bhadohi-Mirzapur
belt in Uttar Pradesh. The firm sells its products to retail stores
or chains in the international markets.
DEWAN HOUSING: Indiabulls Move NCLT to Secure Assigned Loans
------------------------------------------------------------
BloombergQuint reports that two Indiabulls Group entities have
moved the NCLT against IDBI Trusteeship Ltd. to recover dues
against loans assigned to them by Dewan Housing Finance Ltd.
DHFL, a non-banking finance company, had entered into an
arrangement for assignment of loans with Indiabulls Commercial
Credit Ltd. and Indiabulls Housing Finance Ltd. for a
consideration, BloombergQuint relates.
As per the arrangement, the Indiabulls entities became assignee of
the loans and DHFL ceased to hold any rights in such loans after
the assignment. The non-bank lender continued to act as a
collecting agent for the two Indiabulls entities, the report says.
It deposited the collections with IDBI Trusteeship. As per the
arrangement, IDBI Trusteeship was entitled to 20 percent of the
collections deposited with it against certain loans.
The Insolvency and Bankruptcy Code was amended last year to bring
financial service providers within its purview, BloombergQuint
notes.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
5, 2019, Deccan Herald said the Mumbai bench of the National
Company Law Tribunal (NCLT) on Dec. 2 admitted an RBI petition
seeking bankruptcy proceedings to resolve the mortgage player Dewan
Housing Finance (DHFL). The move came in after the Reserve Bank on
Nov. 29 made an application for bankruptcy proceedings to resolve
the credit and liquidity crisis at the company, which became the
first financial sector player being sent for bankruptcy.
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.
DURGA POLYSTERS: ICRA Cuts Rating on INR50.21cr LT Loan to B+
-------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of Durga
Polysters Pvt. Ltd. (DSPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.21 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
Limits from [ICRA]BB+ (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Short-term 2.00 [ICRA]A4 ISSUER NOT
Non fund-based COOPERATING; Rating downgraded
limits-Bank from [ICRA]A4+ and continues
Guarantee to remain under 'Issuer Not
Cooperating' category
Short-term (2.00)^ [ICRA]A4 ISSUER NOT
Non fund-based COOPERATING; Rating downgraded
limits-Letter from [ICRA]A4+ and continues
of Credit to remain under 'Issuer Not
Cooperating' category
Unallocated 0.03 [ICRA]B+ (Stable)/[ICRA]A4
limits ISSUER NOT COOPERATING;
Rating downgraded from
[ICRA]BB+ (Stable)/
[ICRA]A4+ and continues to
remain under 'Issuer Not
Cooperating' category
^Interchangeable with Bank Guarantee of INR2.00 crore
Rationale
The rating downgrade is because of lack of adequate information
regarding DSPPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Durga Polysters Pvt. Ltd., ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Promoted by Mr. Kunj Bihari Sultania and Mr. Vipul Desai, Durga
Polyesters Private Limited (DPPL) is engaged in dyeing and printing
of polyester grey fabric on job work basis. The company was
incorporated in 2001 and was dormant till the present promoters
acquired it and subsequently setup a dye processing unit at Surat,
Gujarat. The unit started commercial production from February 2010
and currently has installed printing capacity of 691 lakh metres
per annum and dyeing capacity of 1030 lakh metres per annum.
ECOVINAL INT'L: ICRA Withdraws 'B+' Rating on INR10.5cr Loan
------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Ecovinal International Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 10.50 [ICRA]B+ (Stable); ISSUER NOT
Fund-based– COOPERATING; Withdrawn
Cash Credit
Short Term- 2.75 [ICRA]A4 ISSUER NOT
Non-Fund Based COOPERATING; Withdrawn
Long Term/ 2.58 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Withdrawn
Rationale
The rating assigned to Ecovinal International Private Limited has
been withdrawn at the request of the company, and in accordance
with ICRA's policy on withdrawal and suspension. ICRA does not have
requisite information to suggest any change in the company's credit
risk since the time the rating was last reviewed.
Key rating drivers
Key rating drivers has not been captured as the rated instruments
are being withdrawn
Rating sensitivities
Rating sensitivities have not been captured as the rated instrument
is being withdrawn.
Liquidity position
Liquidity position has not been captured as the rated instrument is
being withdrawn.
Ecovinal International Private Limited (EIPL) was established in
1999 by Mr. Felix Justa Maranon, Mr. N. K. Pandey and Mr. B. L.
Agarwal. Each of the three promoters has more than two decades of
experience in the food-processing industry. EIPL was initially into
manufacturing of natural white vinegar which finds application as a
preservation medium in the Indian gherkin industry. The
manufacturing facility for the same is located at Kunigal,
Karnataka, with an installed capacity of 24 million litres per
annum. EIPL also established another business segment, Specialised
Food Division (SFD), in FY2012. Under SFD, the company exports.
EDWARD FOOD: ICRA Lowers Rating on INR36cr NCD to C+
----------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Edward Food Research and Analysis Centre Limited (EFRAC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 36.00 [ICRA]C+; Rating downgraded
Debenture from [ICRA]B+ (Stable)
Programme
Rationale
The downward revision in the rating of EFRAC primarily considers
the weakening of its liquidity position on the back of elongated
receivables, which led to a deferment in the interest payment on
the non-convertible debentures (NCD) for the quarter ending
December 2019 to March 2020. ICRA also notes that the high coupon
rate on NCDs results in high interest outgo of the company. The
rating further considers the company's relatively small scale of
current operations and a weak financial profile, characterised by
significant cash losses, an adverse capital structure and depressed
coverage indictors, witnessed during the past few years.
The rating, however, derives comfort from the established track
record of the Keventer Group, which supports EFRAC's market
position to an extent, and a reputed client base, which mitigates
the counterparty credit risk to a large extent. The rating
positively considers the receipt of accreditation/certification
from most of the approving agencies in the food, drug and
environment division, which is likely to support the operations,
going ahead.
Key rating drivers and their description
Credit strengths
Established track record of the Keventer Group - EFRAC is a part of
the Keventer Group, which comprises various entities involved in
diversified businesses like fast moving consumer goods (FMCG), real
estate, food products and agro-related businesses. The Group has
supported the business of the company in operational aspect as well
as by extending financial assistance through infusing equity/
unsecured loans, as and when required.
Accreditation/ certification in place from most of the approving
agencies - The company operates a testing and research laboratory
for food and food products, drugs and cosmetics, and environment.
It has received accreditation/ certification from most of the
approving agencies for all the divisions that the company caters
to, which is likely to support the operations, going ahead.
Reputed customer profile reduces counterparty risk to an extent -
The company has established relationships with reputed clients and
has availed repeat orders from them. The reputed client base
reduces the counterparty risk to a large extent.
Credit challenges
Weakening of liquidity position on the back of elongated
receivables – Stretched receivables led to high working capital
requirements of the company, which exerted pressure on the
company's liquidity position, and restricted its financial
flexibility. This, in turn, resulted in deferment of the interest
payment on the non-convertible debentures for the quarter ending
December 2019 to March 2020.
Relatively small scale of operations - The company's scale of
operations continues to remain small. The operating income (OI)
stood at INR16.31 crore in FY2019, depicting a growth of around 10%
over FY2018. It registered an OI of INR8.11 crore in H1 FY2020
(unaudited), registering a Y-o-Y growth of ~ 32% over the
corresponding period of the previous fiscal.
Weak financial profile characterised by significant cash losses, an
adverse capital structure and depressed coverage indicators - The
company posted cash losses of INR4.70 crore and INR3.05 crore in
FY2019 and H1 FY2020 (unaudited), respectively because of small
scale of operations, coupled with high interest and finance cost.
The capital structure stood at an adverse level as on March 31,
2019 and September 30, 2019 (unaudited) on account of an erosion of
net worth due to losses witnessed by the company. High debt levels
and low profits kept the debt coverage indicators depressed.
High coupon rate on NCDs - The coupon rate on the NCDs is high at
18%, which results in high interest outgo. However, scheduled
principal repayment at the end of five years eases liquidity
pressure to some extent.
Liquidity position: Poor
EFRAC's fund flow from operations (FFO) continues to remain
negative primarily because of cash losses registered by the
company. Moreover, high receivables of the company increased the
working capital requirements and exerted pressure on the company's
liquidity position. With sizeable debt servicing obligation in the
near term along with absence of adequate cash flows from
operations, the liquidity position of the company is likely to
remain poor in the near term at least.
Rating Sensitivities
Positive triggers - ICRA may upgrade EFRAC's rating if the
company's liquidity position improves significantly on a sustained
basis.
Negative triggers - Pressure on EFRAC's rating may arise if there
is any further deterioration in the liquidity position, which may
lead to a delay in the debt servicing obligations of the company.
Edward Food Research and Analysis Centre Limited (EFRAC), a part of
the Keventer Group, was established in August 1921 by Mr. Edward
Keventer as Edward Keventer Private Limited. In 1986, the company
was acquired by Mr. M. K. Jalan, Promoter and Chairman of the
Keventer Group. Subsequently, the company's name was changed to
Edward Keventer Life Science Limited before being further changed
to Edward Food Research and Analysis Centre Limited. Mandala Food
Co-Investments II Ltd. and Mandala Litmus SPV, based out of
Mauritius, made an equity investment of INR18.42 crore in FY2017.
After the investment, Mandala Group holds an equity stake of 51% in
EFRAC. The company operates a testing and research laboratory for
food and food products, drugs and cosmetics, and environment at
Subhash Nagar in North 24 Parganas district, West Bengal.
FUTURE EDUCATION: ICRA Lowers Rating on INR112.57cr Loan to D
-------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Future Education And Research Trust (FERT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 112.57 [ICRA]D; downgraded from
Limits–Term [ICRA]BB+ (Stable)
Loan
Fund-based 6.50 [ICRA]D; downgraded from
Limits–Overdraft [ICRA]BB+ (Stable)
Non-fund Based (37.00) [ICRA]D; downgraded from
Limits–FLC/LOC/LOU [ICRA]BB+ (Stable)
for buyer's credit#
Non-fund Based (37.00) [ICRA]D, downgraded from
Limits–FLC/LOC/LOU [ICRA]A4+
for buyer's credit#
Unallocated Limits 0.93 [ICRA]D; downgraded from
[ICRA]BB+ (Stable)
#sub-limit of term loan
Rationale
The downward revision of the ratings primarily considers
unfavourable debt-servicing track record of FERT in the recent
past, as confirmed by the lender. The ratings are also impacted by
trust's foray into the unrelated healthcare industry, entailing a
large capex of around INR148 crore to set up an oncology hospital
in Kolkata. The project cost is larger than FERT's current balance
sheet size, thus magnifying the project risk. The capex is proposed
to be funded by term loans of INR98 crore and the balance through
internal accruals and promoters' contribution. While the financial
closure for this project has been achieved, ICRA notes that in
addition to internal cash accruals from existing operations,
financial support from promoters will remain critical to meet the
funding requirement. The ratings also note that the trust remains
exposed to project execution risk which along with stabilisation of
operations post commencement, recruitment and retention of reputed
doctors would remain a key challenge. ICRA notes that FERT has made
significant donations to its Group entity in the past and adjusted
its own capital base to account for the same. Any further cash
outflow towards the same is likely to impact the trust's liquidity
position. The ratings also take into consideration limited
flexibility in fee fixation for B. Tech courses as the fee
structure is decided by the state government.
The ratings however consider the established track record of FERT
in successfully running educational institutes for over a decade,
which is supported by the experience of the trustees in the field
of education, and steady growth in the top line and cash accruals
from business over the past few years. The ratings also derive
comfort from the long-term demand outlook of the healthcare
industry in view of significant demand-supply gap in the country's
healthcare service sector and an increasing trend of medical
tourism in India.
Key rating drivers
Credit strengths
Established track record of successfully running educational
institutions for over a decade - FERT had set up its first college
- Future Institute of Engineering and Management (FIEM) in 2002,
which offers various undergraduate and postgraduate courses across
streams including engineering and management. The trust, at
present, runs two colleges and two schools viz. FIEM, Future
Institute of Technology (FIT), Future Campus School and Future
Think School (FTS) under it. Thus, the trust has an established
track record of over a decade in running educational institutions.
Steady growth in top line and cash accruals over the past few years
- The operating income of the trust has gradually increased over
the past few years primarily on the back of an increase in the
number of students. The operating margin has remained healthy over
the years and the same improved from 28% in FY2016 to 33% in FY2019
(provisional). ICRA notes that the overall cash accruals from the
business have witnessed a steady improvement over the past few
years.
Favourable demand outlook of the healthcare industry in the long
term - The long-term demand outlook of the healthcare industry
remains favourable on the back of a significant demand-supply gap
in the country's healthcare service sector and an increasing trend
of medical tourism in India.
Credit challenges
Delays in Servicing of debt obligations - The trust has delayed in
timely servicing of debt obligations in the recent past due to
cashflow mismatch. FERT primarily collects fees on a half-yearly
basis, whereas the servicing of debt obligations takes place
monthly.
Large capex plans relative to its current balance sheet size;
proposed debt would impact the capital structure and coverage
indicators over the medium term - The trust is foraying in the
healthcare industry with an oncology hospital in Kolkata. The
proposed capex for this project is estimated to be around INR148
crore, to be funded by term loans of INR98 crore and the balance
through internal accruals and promoters' contribution. While the
financial closure for this project has been achieved, ICRA notes
that financial support from promoters will remain critical to meet
the funding requirement in addition to internal cash accruals from
existing operations. The project cost is significant compared to
FERT's current balance sheet size, thus magnifying the project
risk. The funding pattern of the capex is also aggressive, with a
project gearing of 1.96 times, which, in turn, is likely to have an
adverse impact on FERT's overall capital structure and coverage
indicators over the medium term.
Exposure to project execution and stabilisation risks; recruitment
and retention of reputed doctors remain key challenges in the
healthcare industry - FERT remains exposed to project execution
risk, which along with stabilisation of operations post
commencement, and recruitment and retention of reputed doctors
would remain key challenges. The proposed hospital is scheduled to
become operational during the second half of the current financial
year. However, ICRA expects there may be some delay in
operationalising the same. Till March 2019, the trust has incurred
approximately INR91 crore for the hospital project.
Significant donation to Group entity impacts the liquidity position
of the trust - The trust has donated INR4.37 crore in FY2019 (Rs.
8.99 crore in previous years) to its group entity - Future Medical
and Research Trust and adjusted its own capital base for the above
amount. ICRA notes that any incremental cash outflow towards the
same, going forward, may impact the trust's liquidity position.
Limited flexibility in fee fixation for B. Tech courses - The trust
has limited flexibility in fee fixation for the B. Tech courses as
the fee structure is decided by the state government. Nonetheless,
fees for all the other courses are decided by the trust.
Liquidity position: Poor
FERT's liquidity position remains poor as reflected by delays in
the debt-servicing by the entity.
Rating sensitivities
Positive trigger - Regularisation of debt servicing on a sustained
basis (more than three months)
Negative trigger - Not Applicable
Incorporated in 2001, Future Education And Research Trust (FERT)
had set up its first college in 2002 under the name, Future
Institute of Engineering and Management (FIEM), in Sonarpur, near
Kolkata, catering to undergraduate and postgraduate courses across
streams including engineering and management. In 2005, the trust
had set up a school under the name Future Campus School, affiliated
to the Central Board of Secondary Education (C.B.S.E.). In 2015,
the trust had set up another college in Garia, Kolkata named Future
Institute of Technology (FIT), which offers B. Tech courses across
various streams. Both FIEM and FIT are approved by the AICTE and
are affiliated to the Maulana Abul Kalam Azad University of
Technology, West Bengal, formerly West Bengal University of
Technology (WBUT). In 2019, the trust has set up another school in
Garia, Kolkata named Future Think School (FTS), providing education
up to class VI. In addition, FERT is in the process of setting up
an oncology hospital in Sonarpur, near Kolkata.
GENRX PHARMACEUTICALS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: GENRX Pharmaceuticals Private Limited
Hill Palace, LG 1
Opp. Raunak Tower B
Kokani Pada, Pokharan Road No. 2
Thane 400610, Maharashtra
Insolvency Commencement Date: January 22, 2020
Court: National Company Law Tribunal, Kalyan Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
(180 days from commencement)
Insolvency professional: Rajesh Kumar Mittal
Interim Resolution
Professional: Rajesh Kumar Mittal
204/A, Navjyoti Darshan CHS
Near Purnima Talkies
Murbad Road
Kalyan (W) 421301
Maharashtra
E-mail: csrajeshmittal@gmail.com
rpgenrx@gmail.com
Last date for
submission of claims: February 6, 2020
GIRIJASHANKAR COTTON: ICRA Keeps B+ Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR8.00-crore bank facility of
Girijashankar Cotton Private Limited continues to remain under
'Issuer Not Cooperating' category. The Long-term rating is denoted
as "[ICRA] B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term 7.00 [ICRA]B+(Stable) ISSUER NOT
Fund based COOPERATING; Rating continues
(CC Limit) to remain in the 'Issuer Not
Cooperating' category
Long term 1.00 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in October 2005, GCPL is engaged in cotton ginning and
pressing. GCPL procures raw seed cotton (Kapas) from
farmers/mandis, which is processed in ginning mills for removing
seeds and other impurities. The raw cotton seed sourced by the firm
is of various kinds such as desi, Shankar 6, BB, MCU-5 and H4
cotton variety which is of high quality with staple length of 28
–32 mm. The manufacturing facility is located in Sendhwa, Madhya
Pradesh.
JAI MAAKALI: ICRA Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR45.00-crore bank facilities of Jai
Maakali Fish Farms Private Limited continues to remain in the
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 45.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Jai Maakali Fish Farms Private Limited (JMFFPL) is part of the Jai
Maakali Group of companies based at Tanuku, West Godavari district.
JMFFPL was incorporated in2003 and is engaged in fish farming. The
company is engaged in cultivation of fish such as Rohu and Katla in
2380 acres at Pothunuru and Dosapadu villages in West Godavari
District (Andhra Pradesh). The annual production capacity is around
10000 tonnes.
KOTHARI PRIMA: Ind-Ra Withdraws 'B' Long Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Kothari Prima
Private Limited' (KPPL)'s Long-Term Issuer Rating of 'IND B (ISSUER
NOT COOPERATING)'.
The instrument-wise rating actions are:
-- The 'IND B' rating on the INR90 mil. Fund-based limits are
withdrawn; and
-- The 'IND B' rating on the INR110 mil. Long-term loan due on
June 2022 is withdrawn.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as KPPL is no
longer in existence post its merger with its parent company,
Kothari Agritech Private Limited, as per the National Company Law
Tribunal order dated October 16, 2019. This is consistent with the
Securities and Exchange Board of India's circular dated March 31,
2017, for credit rating agencies.
COMPANY PROFILE
Incorporated in 2012, KPPL manufactures polyvinyl chloride pipes
and irrigation systems.
KRISHNA CONSTRUCTION: ICRA Cuts Rating on INR3cr Loan to B+
-----------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Krishna Construction Co (KCC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 3.00 [ICRA]B+(Stable) ISSUER NOT
limits COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
moved to 'Issuer Not
Cooperating' category
Non-fund- 20.00 [ICRA]A4 ISSUER NOT
based limits COOPERATING; Rating downgraded
from [ICRA]A4+ and moved to
'Issuer Not Cooperating'
Category
Unallocated 0.10 [ICRA]B+ (Stable)/A4 ISSUER NOT
limits COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable)/
[ICRA]A4+ and moved to 'Issuer
Not Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding KCC performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Krishna Construction Co, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information
Krishna Constructions Co. (KCC) was set up in 1983 as a partnership
firm by Mr. Sumabhai Patel and Mr. Purshotam Patel. Subsequently,
in 1988, it was taken over by the current partners, Mr. Bharat
Patel, Mr. Jeetendra Patel and Mrs. Shantaben Patel. KCC is engaged
in executing Government tendered civil construction contracts for
water supply schemes. The firm is a registered "AA" contractor with
the State Government of Gujarat and has been operating in the state
since its inception.
The firm recorded a net profit of INR9.1 crore on an operating
income of INR138.9 crore in FY2018, on a provisional basis, as
against a net profit of INR4.4 crore on an operating income of
INR62.2 crore in FY2017.
LANCO SOLAR ENERGY: ICRA Keeps 'D' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR575.00-crore bank facilities of
Lanco Solar Energy Private Limited (LSEPL) continues to remain
under 'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 150.00 [ICRA]D; ISSUER NOT COOPERATING;
Limits Rating Continues to remain under
the 'Issuer Not Cooperating'
category
Non-Fund 425.00 [ICRA]D; ISSUER NOT COOPERATING;
Based facility Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Lanco Solar Energy Private Limited (LSEPL) is a 100% subsidiary of
Lanco Infratech Limited. LSEPL was established in June 2009 and is
engaged in providing design & engineering, procurement of
equipments and complete construction of solar power projects. The
company has so far executed turnkey EPC contracts for ~250.0 MW
solar power projects located majorly in Rajasthan, Gujarat and
Maharashtra.
LANCO SOLAR: ICRA Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR940.00-crore bank facilities of
Lanco Solar Private Limited (LSPL) continues to remain under
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 940.00 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating Continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Lanco Solar Private Limited (LSPL) established in July 2008 is a
100% subsidiary of Lanco Solar Energy Private Limited (LSEPL),
which in turn is a subsidiary of Lanco Infratech Limited (LITL).
LSPL is setting up 1800 Metric Tonne per annum (MTPA) (increased
from initially envisaged capacity of 1250 MTPA) Polysilicon
manufacturing capacity and 100 MW (increased from initially
envisaged capacity of 80 MW) solar wafer manufacturing capacity.
LSPL has been allotted 250 acres of land in District Rajnandgaon of
Chhattisgarh for the implementation of the project. The said land
has been notified a Special Economic Zone (SEZ). LSPL also set up a
75 MW of crystalline silicon module manufacturing facility at the
same project site in FY 2012. The capex on the module manufacturing
facility was funded through fresh equity infusion and no additional
external debt was raised for the same. The company has been
sourcing solar cells from India and the modules manufactured have
so far been largely supplied to Lanco Solar Energy Private Limited
which is the parent company of LSPL and a solar EPC contractor.
MARUTI PRODUCTS: ICRA Maintains B+ Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR21.78-crore bank facilities of
Maruti Products Private Limited continues to remain under 'Issuer
Not Cooperating' category. The Long-term rating is denoted as
"[ICRA] B+(Stable) ISSUER NOT COOPERATING". The Short-term rating
is denoted as "[ICRA] A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term 4.28 [ICRA]B+ (Stable) ISSUER NOT
Fund based COOPERATING; Continues to
(Term Loan) remain Issuer Not Cooperating
category
Long-term/ 17.50 [ICRA]B+(Stable)/A4 ISSUER NOT
Short-term COOPERATING; Continues to
Fund-based/ remain Issuer Not Cooperating
Non fund-based category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in April 2010, MPPL manufactures steel billets in its
manufacturing facility located in Jaipur with a total installed
capacity of 27,000 Metric Tonne Per Annum (MTPA). The company
procures its key raw material such as sponge iron and steel scrap
from domestic as well as international market and supplies its
product to the rolling mills located in Rajasthan.
MBM ENGINEERING: ICRA Maintains 'B' Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR10.00-crore bank facilities of MBM
ENGINEERING INFOTECH LIMITED (MEIL) Continues to remain under
'Issuer Not Cooperating' category'. The Long term ratings are
denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING" and short term
denoted as "[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term- 6.50 [ICRA]B (Stable); ISSUER NOT
Fund Based– COOPERATING; Rating Continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long term– 0.80 [ICRA]B (Stable); ISSUER NOT
Fund Based COOPERATING; Rating Continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short term– 0.25 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; Rating Continues
Facility to remain under 'Issuer Not
Cooperating' category
Long term/Short 2.45 [ICRA]B (Stable)/[ICRA]A4
term–Unallocated ISSUER NOT COOPERATING;
Rating Continues to remain
under 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
MBM Engineering Infotech Limited was started as a proprietorship
entity in 1974 and later converted to a public limited company in
2000. The company is primarily engaged in the manufacturing of
bearing components such as bearing sleeves, locknuts, washers,
plummer blocks, locking assemblies, drawing items etc.
MEGHA MARKETING: ICRA Lowers Rating on INR15cr Loan to B+
---------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of Megha
Marketing, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 15.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB+ (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Rationale
The ratings are downgrade because of lack of adequate information
regarding Megha Marketing performance and hence the uncertainty
around its credit risk. ICRA assesses whether the information
available about the entity is commensurate with its rating and
reviews the same as per its "Policy in respect of non-cooperation
by the rated entity". The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Megha Marketing, ICRA has been trying to seek information from
the entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
The firm is engaged in the promotion and marketing of products
manufactured by Megha Springs Pvt. Ltd, Megha Bottling, Megha Fruit
Processing Pvt. Ltd and Mahima Shankar Processed Food Pvt. Ltd.,
together referred as 'Shankar group' which has more than 30 years
of experience in packaged food and beverages industry. The firm has
a diversified product mix comprising of bottled fruit juices under
the brand 'Sip On', aerated beverages like club soda, soft drinks
and packaged drinking water under the brand 'Bindu' and processed
food items (mostly potato chips, namkeen, extruded snacks) under
the brand 'Snak up'. The firm markets its products in the states of
Karnataka, Andhra Pradesh, Kerala, Tamil Nadu, South Maharashtra
and some parts of Orissa and Goa.
The products are marketed through a widespread distribution network
of owned depots and through super stockiest. The firm's financial
profile remained moderate in FY2016 with weak margins
and stretched coverage indicators. The operating profitability of
the firm declined on account of increase in price of traded goods
driven by increase in prices of key raw materials.
MILSHA AGRO: ICRA Reaffirms B+ Rating on INR2cr Term Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Milsha
Agro Exports Pvt. Ltd. (MAEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based–
Term Loan 2.00 [ICRA]B+ (Stable); reaffirmed
Fund Based–
Packing Credit 12.00 [ICRA]A4; reaffirmed
Fund Based–
Foreign Bills
Discount Against
Letter of Credit 5.00 [ICRA]A4; reaffirmed
Non-fund Based–
Forward Contract 1.00 [ICRA]A4; reaffirmed
Non-fund Based–
Bank Guarantee^ (0.50) [ICRA]A4; reaffirmed
^ Sub-limit of packing credit
Rationale
The reaffirmation of the ratings considers the relatively small
scale of operations of MAEPL and a highly fragmented and low value
additive shrimp processing industry with intense competition from
domestic as well as international players, limiting the margins.
The ratings also consider the inherent risks in the industry
including susceptibility to disease outbreak, climatic risk, and
changes in government policies, which could impact the demand and
supply of the industry. The ratings are also impacted by the weak
financial profile of MAEPL with low profitability, a leveraged
capital structure and tight liquidity position. The ratings further
consider MAEPL's exposure to forex risk in the absence of any
formal hedging mechanism.
The ratings, however, favorably consider more than four decades of
experience of the promoter in the seafoods industry. The ratings
also factor in the location-specific advantage of the company as it
is located in proximity to the major aquaculture regions of West
Bengal.
The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that MAEPL will continue to benefit from the long experience of the
promoter in the seafood industry.
Key rating drivers and their description
Credit strengths
Long experience of the promoter in the seafoods industry - MAEPL's
promoter, Mr. Ram Milan Singh, has an experience of more than 40
years in the seafoods industry. The promoter's long experience
mitigates operational risk to an extent.
Proximity to major aquaculture region of West Bengal - The
company's processing plant is located in proximity to the major
aquaculture regions of West Bengal, resulting in regular and easy
availability of raw materials at a lower transportation cost.
Credit challenges
Relatively small scale of operations - The company has a relatively
small scale of operations, notwithstanding the growth in operating
income in FY2019 to INR80.98 crore from INR73.42 crore in FY2018.
However, the operating income is likely to decline in FY2020
following a fall in sales to Vietnam.
Fragmented industry structure with intense competition - The
company faces stiff competition from other organised and
unorganised domestic and international players in the absence of
entry barriers, which limits its pricing flexibility and bargaining
power with customers, thereby putting pressure on its revenues and
margins.
Weak financial profile characterised by a highly leveraged capital
structure and depressed coverage indicators - The capital structure
of the company continued to remain highly leveraged, as depicted by
a gearing of 2.82 times as on March 31, 2019 (2.10 as on March 31,
2018). High debt levels and low profitability kept the coverage
indicators depressed, as reflected by an interest coverage of 1.67
times, NCA/total debt of 10.1% and TD/OPBDITA of 5.92 in FY2019.
Inherent risks in the seafood industry - The company remains
exposed to agro-climatic risks, wherein, natural calamities like
flood, cyclone etc during the culture season, can have a serious
impact on the prospects of successful culture. Despite technical
advancement, shrimps getting affected by virus cannot be ruled out.
Moreover, the seafood industry is impacted by the volatility in
international prices of seafood. Any such situation would affect
the availability of raw materials.
Foreign exchange rate fluctuation risk - The company generates its
entire revenue from export sales. This exposes MAEPL to foreign
exchange rate fluctuation risk in the absence of a formal hedging
mechanism.
Liquidity position: Poor
The working capital limits of the company remain almost fully
utilised. ICRA notes that the company has long-term debt-servicing
obligations in the near to medium term, which would continue to
exert pressure on its liquidity position.
Rating sensitivities
Positive triggers - ICRA may upgrade MAEPL's ratings if the company
is able to substantially scale up its operations while improving
profitability, coverage indicators and capital structure.
Negative triggers - Negative pressure on MAEPL's rating may arise
if there is an increase in working capital intensity or a decline
in profit margins as well as cash accruals from the business.
Incorporated in 2009, Milsha Agro Exports Pvt. Ltd. (MAEPL) is
involved in processing and export of shrimps. The processing unit
of the company is in Kolkata with an installed processing capacity
of 30 tonnes per day and a storage capacity of 180 tonnes. The
business was started by Mr. Ram Milan Singh in the 1970s through a
partnership firm, Veejay Impex.
MUMS MEGA: ICRA Maintains 'B' Rating in Not Cooperating
-------------------------------------------------------
ICRA said the ratings for the INR95.00-crore bank facility of Mums
Mega Food Park Private Limited continues to remain under 'Issuer
Not Cooperating' category. The Long-term rating is denoted as
"[ICRA] B(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term 95.00 [ICRA]B (Stable) ISSUER NOT
Fund based COOPERATING; Continues to
remain Issuer Not Cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
MMFP is a special purpose vehicle (SPV) which was incorporated in
January 2012, to undertake a Mega Food Park project in the Buxar
district of Bihar under the MoFPI's Mega Food Parks Scheme. The
cost of the project estimated at INR154.48 crore, is proposed to be
funded by INR32.32 crore of equity, INR50 crore of grant from
MoFPI, INR15 crore of grant from Government of Bihar and INR57.16
crore of term loans. The company is promoted by Ultra Home
Construction Pvt Ltd and ABIP, entities belonging to the Amrapali
group. The Amrapali group is a well-established real estate player
in Delhi with execution track record of residential and commercial
projects across the National Capital Region. ABIP manufactures
products such as corn flakes, jams, pickles, sauce and vinegar,
under the brand name 'Mums'. The company has started a new unit in
Buxar for manufacturing of corn flakes and grits.
N.R. CONSTRUCTIONS: ICRA Cuts Rating on INR8.50cr LT Loan to B+
---------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of N.R.
Constructions, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
Limits from [ICRA]BB- (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Long-term- 8.50 [ICRA]B+ (Stable) ISSUER NOT
Non-Fund COOPERATING; Rating downgraded
Based Limits from [ICRA]BB- (Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Rationale
The ratings are downgrade because of lack of adequate information
regarding N.R. Constructions performance and hence the uncertainty
around its credit risk. ICRA assesses whether the information
available about the entity is commensurate with its rating and
reviews the same as per its "Policy in respect of non-cooperation
by the rated entity". The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with N.R. Constructions, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
N. R. Constructions (NRC) is a partnership firm which was started
in April 1998 by Mr. A. Narayana Raju and his family. The firm
undertakes civil contracts involving irrigation works, buildings
and bridges for government clients in the states of Andhra Pradesh
and Karnataka.
NS MINT: Ind-Ra Cuts LT Issuer Rating to BB Then Withdraws Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded NS Mint Products
Private Limited's (NSMPPL) Long-Term Issuer Rating to 'IND BB' from
'IND BB+' and has simultaneously withdrawn the rating. The Outlook
was Stable.
The instrument-wise rating actions are:
-- The 'IND BB' rating on the INR255 mil. Fund-based limit*
downgraded and withdrawn;
-- The 'IND A4+' rating on the INR2 mil. Non-fund-based limit^
affirmed and withdrawn; and
-- The 'IND BB' rating on the INR4.9 mil. Term loan# due on
December 2020 downgraded and withdrawn.
* Downgraded to IND BB/Stable/IND A4+ before being withdrawn
^ Affirmed at IND A4+ before being withdrawn
# Downgraded to IND BB/Stable before being withdrawn
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017, for credit rating agencies.
The downgrade reflects several instances of over-utilization of the
fund-based limits in the six months ended December 2019.
KEY RATING DRIVERS
Liquidity Indicator – Stretched: NSMPPL's average utilization of
fund-based and non-fund-based limits was 69.39% and 58%,
respectively, for the 12 months ended December 2019. The cash flow
from operations increased to INR112.63 million in FY19 (FY18:
INR76.21 million) due to an increase in absolute EBITDA. Cash and
cash equivalent increased to INR 31.97 million in FY19 (FY18: INR
0.43 million). The working capital cycle improved to 17 days in
FY19 (FY18: 32 days) due to a decline in combined debtor and
inventory days to 30 days (41 days). Ind-Ra expects the liquidity
to remain stretched over the medium term on account of elongation
in the working capital cycle due to increased raw material
requirements.
The ratings reflect NSMPPL's continued medium scale of operations,
as reflected by revenue of INR3668.70 million in FY19 (FY18:
1894.60 million). The revenue increased due to a rise in demand
from the company's China-based counterparties.
The ratings continue to be constrained by volatility in raw
material prices. Furthermore, NSMPPL faces currency fluctuation
risks, as exports account for more than 70% of the total sales.
The rating factor in NSMPPL's comfortable credit metrics due to low
debt levels. The metrics improved in FY19 due to a rise in absolute
EBITDA to INR150.48 million (FY18: INR77.24 million) and a fall in
debt to INR107.21 million (FY18: INR159.45 million). The interest
coverage (operating EBITDA/gross interest expense) was 10.28x in
FY19 (FY18: 4.82x) and net financial leverage (adjusted net
debt/operating EBITDA) was 0.50x (2.06x).
The ratings, however, are supported by the healthy EBITDA margins.
Despite an increase in input costs, the margins remained fairly
stable at 4.1% in FY19 (FY18: 4.08%) owing to a decrease in
manufacturing expenses. The RoCE stood at 49.9% in FY19 (FY18:
24.6%).
The ratings are also supported by the promoters' experience of more
than 20 years in the trading and manufacturing of mint products and
essential oils.
RATING SENSITIVITIES
Negative: Deterioration in the liquidity position, or a
substantial decline in the profitability, leading to the net
financial leverage rising above 4.0x, on a sustained basis, will be
negative for the ratings.
Positive: An improvement in the liquidity position while
maintaining the profitability and scale of operations will be
positive for the ratings.
COMPANY PROFILE
Incorporated in May 2013, NSMPPL manufactures menthol, menthol
crystals, essential oils, aromatic chemicals, mint oils, among
others. The company has a 3,600 metric tons per annum manufacturing
facility in Sambhal, Uttar Pradesh.
PERUMAL SPINNING: ICRA Keeps 'B+' LT Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR16.75-crore bank facilities of
Perumal Spinning Mills Private Limited (PSMPL) Continues to remain
under 'Issuer Not Cooperating' category'. The Long term ratings are
denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING" and short term
denoted as "[ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term- 2.85 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating Continues
to remain under 'Issuer Not
Cooperating' category
Long term– 11.75 [ICRA]B+ (Stable); ISSUER NOT
Fund Based COOPERATING; Rating Continues
Facility to remain under 'Issuer Not
Cooperating' category
Short term– 2.00 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; Rating Continues
Facility to remain under 'Issuer Not
Cooperating' category
Long term/ 0.15 [ICRA]B+ (Stable)/[ICRA]A4;
Short term– ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
PSMPL, incorporated in 1989 by Mr. S.Perumal, is primarily engaged
in manufacture of cotton yarn. The Company produces medium counts
of carded/combed yarn (in the count range of 40s to 60s) and
supplies primarily to domestic garment manufacturers. The Company
operates with an installed capacity of 14,112 spindles and its
manufacturing facility is located in Salem (Tamil Nadu). The
Company is closely held by Mr. P Ashokaraman (son of Mr. S Perumal)
and his son.
R.V. PLASTIC: ICRA Lowers Rating on INR10cr LT Loan to B+
---------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of R.V.
Plastic Limited (RVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating downgraded
from [ICRA]BB-(Stable) and
continues to remain under the
'Issuer Not Cooperating'
category;
Short Term- 6.00 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; continues to
remain under the 'Issuer Not
Cooperating' category
Rationale
The Long-Term rating downgrade is because of lack of adequate
information RVPL's performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with R.V. Plastic Limited, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
R V Plastic Limited (RVPL) was incorporated in 1995 with the object
of trading in Polyproylene. The company was engaged in the business
of import and trading of polymer products like LDPE (Low-density
polyethylene), LLDPE (Linear low-density polyethylene), HDPE
(High-density polyethylene), PP (Polypropylene) etc. Subsequently
in 2010 it became a Del Credere Agent (DCA) and consignment
stockist of Indian Oil Corporation Limited (IOCL) for distribution
of IOCL's Poly-propylene (PP)/ Polyethylene (PE) products.in
Haryana. Currently, the firm is one of the leading DCAs of IOCL and
has two warehouses in Bhiwandi (Maharashtra) and Daman for stocking
goods.
RAJRAJESHWAR COTTON: ICRA Maintains B+ Rating in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR6.00-crore bank facility of
Rajrajeshwar Cotton Industries continues to remain under 'Issuer
Not Cooperating' category. The Long-term rating is denoted as
"[ICRA] B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term 4.75 [ICRA]B+(Stable) ISSUER NOT
Fund based COOPERATING; Rating continues
(CC Limit) to remain in the 'Issuer Not
Cooperating' category
Long term 1.25 [ICRA]B+(Stable) ISSUER NOT
Fund based COOPERATING; Rating continues
(Term Loan) to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
RCI is a partnership concern of Mr. Vrandavandas Hajarilal Tayal,
Mr. Sunil Kumar Gyarsilal Mangal and Mr. Govind Kumar Gyarsilal
Mangal. It is involved in the ginning and pressing of cotton in
Sillod, Maharashtra. The company's installed capacity was 230 bales
per day (370 quintal/day) as on March 31, 2016. It procures 'kapas'
from farmers and local mandis through cash or demand draft. The
company sells the ginned cotton to traders and sometimes to
spinning companies. The company sells cotton seeds to the oil
extraction companies.
RR COTTONS: Ind-Ra Reassigns 'B+' LongTerm Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded RR Cottons'
(RRC) Long-Term Issuer Rating to 'IND D' from 'IND BB- (ISSUER NOT
COOPERATING)'. Simultaneously, Ind-Ra has reassigned RRC a
Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR15.4 mil. (reduced from INR21.7 mil.) Term loan* due on
November 2022 downgraded and reassigned with IND B+/Stable
rating; and
-- INR150 mil. Fund-based working capital limits# downgraded and
reassigned with IND B+/Stable/IND A4 rating.
* Reassigned 'IND B+'/Stable after being downgraded to 'IND D'
# Reassigned 'IND B+'/Stable/IND A4' after being downgraded to
'IND D'
KEY RATING DRIVERS
The downgrade reflects instances of delay in debt servicing by RRC
over January 2019-March 2019.
The reassignment of the Long-Term Issuer Rating of 'IND B+'
reflects RRC's timely debt servicing for the nine months ended
December 2019, due to improvement in its liquidity position.
Liquidity Indicator - Poor: RRC's average use of fund-based limits
was 98.5% for the 12 months ended December 2019. Its working
capital cycle remained elongated at 128 days in FY19 (FY18: 109
days) due to a long inventory holding period. Cash flow from
operations remained positive at INR42 million in FY19 (FY18: INR4
million) on the back of favorable working capital changes. At
FYE19, the company had a cash balance of INR2 million (FYE18: INR1
million).
The rating factor in RRC's continued small scale of operations, as
reflected by revenue of INR586 million in FY19 (FY18: INR833
million). The revenue declined due to a decrease in orders and
lower production of raw cotton, due to poor crop availability.
During 9MFY20, the company recorded revenue of INR300 million.
The ratings also factor the company's modest EBITDA margins of 4.1%
in FY19 (FY18: 3.4%) with a return on capital employed of 8% (9%).
Moreover, the company's credit metrics were moderate with interest
coverage (operating EBITDA/gross interest expense) remaining flat
at 1.1x in FY19 (FY18: 1.2x) due to a proportionate fall in
absolute EBITDA at INR24 million (INR28 million) and net leverage
(total adjusted net debt/operating EBITDAR) improving to 8.1x
(8.2x) due to a reduction in total debt.
The ratings, however, continue to be supported by RRC's partners'
three-decade-long experience in the ginning business.
RATING SENSITIVITIES
Negative: Any stretch in the liquidity position, along with a
decline in the revenue or EBITDA margin, resulting in a sustained
deterioration in the credit metrics, could lead to negative rating
action.
Positive: An improvement in the liquidity position, along with
substantial growth in the revenue and EBITDA margin, leading to an
improvement in the interest coverage above 1.7x, could lead to
positive rating action.
COMPANY PROFILE
RR Cottons were established in July 2016. It is involved in the
manufacturing of ginning and pressing cotton Adilabad, Andhra
Pradesh.
SAMKIT DIAMOND: ICRA Maintains B/A4 Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR10.00 crore bank facilities of
Samkit Diamond Export Private Limited continues to remain in Issuer
Not Cooperating category. The long-term rating is denoted as
[ICRA]B ISSUER NOT COOPERATING with a Stable outlook, and the
short-term rating is denoted as [ICRA]A4 ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term and 8.00 [ICRA]B(Stable)/[ICRA]A4
short-term fund- ISSUER NOT COOPERATING;
based limits Rating continues to remain
in Issuer Not Cooperating
category
Short-term non 0.98 [ICRA]A4 ISSUER NOT
Fund based limit COOPERATING; Rating
Continues to remain in
Issuer Not Cooperating
Category
Unallocated limit 1.02 [ICRA]B(Stable)/[ICRA]A4
ISSUER NOT COOPERATING;
Rating continues to remain
in Issuer Not Cooperating
category
Interchangeable (4.25) [ICRA]B(Stable)/[ICRA]A4
limit ISSUER NOT COOPERATING;
Rating continues to remain
in Issuer Not Cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Samkit Diamond Export Private Limited was incorporated in April
2013. Samkit Diamond Exporters has been in the business since 1986
when Mr. Ashvinkumar Sanghvi and Mr. Anil Shah started the business
as partnership firm. The firm manufactures and trades in cut and
polished diamonds. On April 26, 2013, the firm was converted in to
private limited company. The company has its registered office and
marketing office in Mumbai and its manufacturing facility is in
Surat.
SHEKAR LOGISTICS: ICRA Lowers Rating on INR14cr LT Loan to D
------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Shekar Logistics Pvt Ltd (SLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 14.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Downgraded from [ICRA]B+ (Stable),
continues to remain in non
cooperating category
Long Term–TL 8.00 [ICRA]D ISSUER NOT COOPERATING;
Downgraded from [ICRA]B+ (Stable),
continues to remain in non
cooperating category
Non-Fund Based 3.00 [ICRA]D ISSUER NOT COOPERATING;
Downgraded from [ICRA]B+ (Stable),
continues to remain in non
cooperating category
Rationale
The rating action reflects the recent delays in servicing the debt
obligation by Shekar Logistics Pvt Ltd (SLPL) as confirmed by its
lenders. The delays were on account of delayed receivables from its
customer Tata Steel Limited which resulted in tight liquidity
position.
Key rating drivers:
Credit Challenges
Delay in receipt of payment from Government customers - The company
derives a sizeable portion of its revenues from Tata Steel Ltd. The
delay in receipt of payments from them had resulted in stretched
liquidity position.
Liquidity position:
SLSP's liquidity position remained stretched on account of delays
in receipt of payments from its customer – Tata Steel Ltd.
Incorporated in 2001, Shekar Logistics Private Limited (SLPL) is a
logistics service provider for Tata Steel Limited (TSL) and its
services includes transportation and handling of various materials
like steel coils, rods, sheets, TMT bars etc for Tata Steel
Limited. SLPL handles TSL's materials from TSL's stock yards to
respective TSL's customer destinations as per TSL's requirement. It
handles distribution of TSL's steel products across South India
from TSL's stock yards in Vijayawada, Chennai, Bangalore, Hubli and
Hyderabad and owns transport fleet of 136 vehicles. The company is
an ISO 9001-2008 Certified company by QMS certification services.
In FY2019, on provisional basis, the company reported a net profit
of INR2.2 crore on an operating income of INR66.0 crore compared to
a net profit of INR2.3 crore on an operating income of INR79.6
crore in the previous year.
SHREENATHJI COTGIN: ICRA Maintains B- Rating in Not Cooperating
---------------------------------------------------------------
ICRA has continued the ratings for the INR9.67 crore bank
facilities of Shreenathji Cotgin Private Limited (SCPL). The rating
is now denoted as "[ICRA]B-(Stable)/A4: Ratings continues to remain
under issuer not cooperating category on information".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund 8.00 [ICRA]B-(Stable) ISSUER NOT
based limits COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 1.57 [ICRA]B-(Stable) ISSUER NOT
limits COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short-term non 0.10 [ICRA] A4 ISSUER NOT
fund-based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity to monitor
its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in December 2010, Shreenathji Private Limited (SCPL)
is into the business of ginning and pressing of raw cotton. SCPL's
manufacturing unit is located at Jasdan, Rajkot (Gujarat) and is
equipped with 24 ginning machines and one pressing machine with
total production capacity of 120 bales per day. The company is
promoted and managed by Mr. Sudhirkumar Raja, Mr. Kamlesh Thakkar
and Mr. Chandresh Jogi along with other relatives and friends.
SHRI RAM RICE: ICRA Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR8.00 crore bank facilities of Shri
Ram Rice Mill continue to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]B+ (Stable)
ISSUER NOT COOPERATING with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.75 [ICRA]B+ (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Continues to
remain under the 'Issuer Not
Cooperating' category
Long Term- 1.25 [ICRA]B+ (Stable); ISSUER NOT
Fund Based TL COOPERATING; Continues to
remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
SRRM is a partnership concern which came into existence in 1992.
Presently the company has four partners viz. Shri Govind Nuwal,
Smt. Sarita Nuwal, Smt. Madhu Nuwal and Shri Satya Narayan Nuwal.
The firm is primarily engaged in the business of milling and
processing of basmati rice and has an installed milling capacity of
3 tons per hour of paddy and sorting capacity of 3 tons per hour.
The manufacturing facility of the firm is located in Village
Daulara, Bundi, Rajasthan.
SPECIALITY POLYMERS: ICRA Keeps 'D' Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR71.60 crore bank facilities of
Speciality Polymers Private Limited (SPPL) continues to remain
under the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 55.50 [ICRA]D ISSUER NOT COOPERATING;
Limits–Cash Rating continues to remain
under
Credit & Term the 'Issuer Not Cooperating'
Loan category
Fund based (8.50) [ICRA]D ISSUER NOT COOPERATING;
Sub-limits Rating continues to remain under
Of Cash Credit- the 'Issuer Not Cooperating'
FDPN/FDBP/FDBD category
Non Fund based 16.10 [ICRA]D ISSUER NOT COOPERATING;
Limits–Letter Rating continues to remain under
of Credit & the 'Issuer Not Cooperating'
Bank Guarantee category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Incorporated in October, 1988, Speciality Polymers Private Limited
(SPPL) is engaged in the business of manufacture of various types
of emulsions, adhesives, binders, construction chemicals etc. The
company has its manufacturing unit located at Badlapur, Thane with
an installed capacity of 12,000 metric ton per annum (MTPA) and a
new manufacturing set up with an installed capacity of 63000 MTPA
in Ambernath MIDC, Thane.
SREE ANANTHALAKSHMI: ICRA Cuts Rating on INR3.0cr Loan to B-
------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of Sree
Ananthalakshmi Textiles Private Limited (SATPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based– 3.00 [ICRA]B-(Stable); downgraded
Cash Credit from [ICRA]B(Stable)
Rationale
The rating revision of SATPL considers the company's deteriorated
financial profile in FY2019 with significant decline in operating
margins owing to high raw material costs, which resulted in
deterioration in coverage indicators. SATPL's financial profile is
stretched, characterised by net losses, high gearing, weak coverage
indicators and stretched liquidity position. The extended credit
period (for cotton supply) from the parent company, NSL Textiles
Limited (NSLTL), supported its liquidity to an extent. The rating
considers SATPL's modest scale of operations in a highly fragmented
domestic cotton spinning industry characterised by intense
competition and low product differentiation, which restricts its
pricing flexibility and profitability. The rating, however, derives
comfort from the company's extensive track record spanning more
than three decades in the spinning industry and its established
relationship with a diversified customer base resulting in repeat
orders.
The Stable outlook on the [ICRA]B- rating reflects ICRA's opinion
that SATPL will continue to benefit from its extensive track record
of promoters and diversified customer base resulting in consistent
revenue growth.
Key rating drivers and their description
Credit strengths
Established presence of over 30 years in spinning industry –
SATPL is a subsidiary of NSLTL, which is part of the NSL Group. The
parent company, NSLTL, has presence across ginning, spinning,
weaving, processing and garmenting business resulting in integrated
operations for the company. It has an established presence of over
30 years in the cotton spinning industry leading to established
relationship with customers and suppliers.
Established customer base with repeat customers over the years –
SATPL sells the yarn in the domestic market to traders and weavers
with the main markets being Mumbai, Ichalkaranji, Palakol and
Kolkata. The company's client mix has changed completely since
NSLTL has taken over. The top buyers in FY2019 continue to be the
repeat customers of SATPL. Overall, the contribution from top 10
clients remained moderate at around 67% in FY2019 and 69% in 8M
FY2020.
Credit challenges
Weak financial profile characterised by net losses, high gearing,
and weak coverage indicators – SATPL's financial profile weakened
in FY2019, with high raw material costs leading to significant
decline in operating margin and deterioration of coverage
indicators. It has been incurring net losses over the past three
financial years on account of increase in raw material prices.
SATPL's gearing stood at 6.1 times and TOL/TNW at 10.4 times as on
March 31, 2019 due to erosion of net worth worsening its capital
structure. The coverage indicators were weak with interest coverage
of 0.2 times, Total Debt/OPBIDTA of 42.1 times, NCA/Total Debt of
-10.3% in FY2019.
Modest scale of operations – SATPL has modest scale of operations
with installed capacity of 32,256 spindles. The operating income
(OI) increased by 7% in FY2019 on the back of increased volumes and
higher proportion of higher count yarn (60's) sales.
Profitability exposed to fluctuations in raw material prices –
The company's profit margins are exposed to the fluctuation in raw
material prices, which depend upon factors such as seasonality,
monsoon condition, international and domestic demand and supply
situation, export policy, etc.
Intense competition in industry – The spinning industry is highly
fragmented and competitive with the presence of a large number of
organised and unorganised players. Intense competition in the
industry and commoditised nature of the product limits SATPL's
pricing flexibility and bargaining power.
Liquidity position: Stretched
The company's liquidity is stretched owing to negative retained
cash flows with significant decline in profitability. The average
utilisation of working capital limits is high at over 85%,
providing limited liquidity buffer (less than INR0.5 crore).
However, it does not have any repayment obligations or any major
capex plans.
Rating sensitivities
Positive triggers – ICRA may upgrade the ratings if the company's
liquidity position improves with an improvement in profitability
and coverage indicators.
Negative triggers – Negative pressure on rating may arise if a
further decline profitability stretches the capital structure and
coverage indicators and deteriorates liquidity position.
Incorporated in 1982, SATPL was promoted by the promoters of The
Andhra Sugars Ltd for manufacture of cotton yarn. Subsequently,
SATPL was acquired by NSL Textiles Ltd in January 2012. The company
commenced its operations in 1985 with 4,560 spindles and gradually
expanded the capacity to 32,256 spindles. The manufacturing
facility is located in Vadluru, West Godavari, Andhra Pradesh over
an area of 23.88 acre.
In FY2019, it reported a net loss of INR2.06 crore on an OI of
INR57.73 crore compared to a net loss of INR0.83 crore on an OI of
INR53.95 crore in the previous year.
SRI LAKSHMI: ICRA Assigns B- Rating to INR6.91cr Loan
-----------------------------------------------------
ICRA has assigned rating to the bank facilities of Sri Lakshmi
Srinivas Parboiled's (SLSP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based–
Working Capital 6.91 [ICRA]B- (Stable); Assigned
Term Loan 3.72 [ICRA]B- (Stable); Assigned
Non-fund Based 0.87 [ICRA]B- (Stable); Assigned
Rationale
The assigned rating considers SLSP's execution risk arising due to
delay in project commissioning which might lead to cost overrun.
The rating is also constrained by the significant debt-funded
capital expenditure planned to be incurred towards setting up of
rice mill unit which might lead to leveraged capital structure and
moderate debt protection metrics for the firm in the initial years.
Moreover, intense competition in the industry and limited value
additive nature of the business might restrict its pricing
flexibility and its margins will be exposed to fluctuation in paddy
procurement prices. The ratings also consider the agro-climatic
risks that can affect the availability and price of paddy in
adverse weather conditions. Besides, risk of capital and profit
withdrawals as the entity is set up as a partnership firm is the
other rating concern.
However, the rating favorably factors in the partner's extensive
experience for almost two decades in the rice milling industry and
easy availability of paddy because of its proximity to major paddy
cultivating regions in northern Karnataka. ICRA also considers the
favourable demand prospects of the rice industry because of India's
growing population and also because India is one of the largest
producers and consumers of rice.
The Stable outlook on the [ICRA]B- rating reflects ICRA's opinion
that SLSP will benefit from the extensive experience of its
partners in the rice milling industry.
Key rating drivers and their description
Credit strengths
Extensive experience of promoters in rice milling industry - The
partners of the firm is involved in the rice milling business for
over two decades. The partners are also runs another rice mill
industry in Raichur in the name of Sri Lakshmi Srinivasa Hi-Tech
Industry ([ICRA]BB- (Stable)) since 2011 and have gained vast
experience from the company.
Presence in major paddy cultivating area - The firm's plant is
located in Raichur, which is surrounded by paddy cultivating areas
such as Manvi, Sindhnoor, Gangawati and Davangere. Mostly, paddy
prices are above the MSP from local farmers, which result in easy
procurement of paddy with low transportation cost.
Favourable demand prospects of rice - The demand prospects of the
rice industry are expected to remain favourable because of India's
growing population as rice is a staple food grain in the country
and India is the world's second largest consumer of rice.
Credit challenges
Preliminary stage indicating execution risk - SLSP is in a project
phase. The firm is facing a challenge of timely commissioning of
the project (i.e. the commercial production should have started in
January 2020 but delayed to March 2020) without any cost overrun.
Also, the ability of the firm to scale up its operation while
achieving standard operating metric (i.e. capacity utilisation and
yield) needs to be seen.
Debt funded capex – SLSP has a significant debt funded capex
planned to set up its milling unit which might lead to leveraged
capital structure and moderate debt protection metrics.
Intense competition, given the limited value additive nature of
business - The rice-milling industry remains highly fragmented and
competitive in nature owing to the presence of numerous unorganised
and organised players on account of low entry barriers in terms of
technology and investments.
Industry susceptible to agro-climatic and governance risks - The
rice-milling industry is susceptible to agro-climatic risks (which
can affect the availability of paddy in adverse weather
conditions), epidemics in paddy crop or a shift of farmers to other
cash crops and cyclicality. Moreover, it is exposed to Government
policies such as minimum support price, affecting the raw material
cost, which in turn will hit the margins.
Risk related to partnership nature of the firm - SLSHI is exposed
to the risks inherent to the partnership nature of the firm,
including the capital withdrawal risk.
Liquidity position: Adequate The firm's liquidity position is
expected to be adequate. The firm has been sanctioned a cash credit
limit of INR6.91 crore which will be disbursed once the commercial
production starts (i.e. expected in February 2020). The firm has
also sanctioned a term loan of INR3.72 crore out of which they have
drawn INR2.38 crore till December 2019.
Rating sensitivities
Positive triggers - ICRA could upgrade SLSP's rating if there is a
timely commissioning of the project without any cost overrun
followed by satisfactory ramp up of operations in FY2021. Specific
credit metrics that could lead to an upgrade of SLSP's rating
include DSCR of more than 1.1 times on a sustained basis.
Negative triggers - Negative pressure on SLSP's rating could arise
if, for reasons there is a delay in commissioning of project
leading to cost overrun. Also, lack of timely financial support
from promoters to cover the fixed expenses till the project
stabilizes can lead to a downward pressure on the rating.
Incorporated in June 2020, Sri Lakshmi Srinivas Parboiled (SLSP) is
in the process of setting up a manufacturing unit for the
production and processing of polished rice and rice products with
the processing capacity of 5MTPH in Manchalapur district of
Raichur, Karnataka. The firm's major products will include boiled
rice, raw rice, bran, broken rice and husk. The firm will sell its
product under the name and style of "Sri Lakshmi Srinivas
Parboiled".
SVS MOOKAMBIKA: ICRA Lowers Rating on INR13.80cr Loan to B+
-----------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of SVS
Mookambika Constructions Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 13.80 [ICRA]B+(Stable) ISSUER NOT
Fund Based COOPERATING; Rating downgraded
Limits/CC from [ICRA]BB-(Stable) and
Continues to remain under the
'Issuer Not Cooperating'
Category
Short Term- 11.00 [ICRA]A4 ISSUER NOT
Non Fund COOPERATING; Continues to
Based limits remain under the 'Issuer Not
Cooperating' category
Long Term/ 15.20 [ICRA]B+(Stable)/[ICRA]A4
Short Term- ISSUER NOT COOPERATING;
Unallocated Long term Rating downgraded
Limits from [ICRA]BB-(Stable) and
Continues to remain under the
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding SVS Mookambika Constructions Private Limited performance
and hence the uncertainty around its credit risk. ICRA assesses
whether the information available about the entity is commensurate
with its rating and reviews the same as per its "Policy in respect
of non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
SVS Mookambika Constructions Private Limited, ICRA has been trying
to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
SVS Mookambika Constructions Private Limited (SMCPL) was
incorporated in 2009 by Mr. MSN Raju and undertakes civil
construction projects in Andhra Pradesh, Orissa and Karnataka. The
promoters of the company have an experience of over a decade in
civil construction business.
TAURUS THERMOPLASTICS: ICRA Cuts Rating on INR5.75cr Loan to B+
---------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of
Taurus Thermoplastics Private Limited (TTPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 2.75 [ICRA]B+ (Stable) ISSUER NOT
Based (CC Limit) COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Long term fund 5.75 [ICRA]B+ (Stable) ISSUER NOT
Based (Term Loan) COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 1.50 [ICRA]B+ (Stable)/A4 ISSUER
NOT COOPERATING; Long term
rating downgraded from
[ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The ratings downgrade is because of lack of adequate information
regarding TTPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Taurus Thermoplastics Private Limited (TTPL), ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.
Taurus Thermoplastics Private Limited (TTPL) was incorporated in
December 2010 but began operations only in December 2012. Its
manufacturing facility located at Greater Noida has installed
capacity of 1200 MTPA enhanced from 3000 MTPA during FY2013.The
Taurus Group (through its companies Taurus Thermoplastics Private
Limited and Taurus Packaging Private Limited) has two manufacturing
facilities; one each in Greater Noida (Uttar Pradesh) and New
Delhi. While Taurus Packaging Private Limited manufactures
laminated printed flexible packaging material; Taurus
Thermoplastics Private Limited is engaged in the manufacturing of
PVC films and PP sheets along with flexible packaging material.
VEENDEEP OILTEK: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Veendeep Oiltek
Exports Pvt Ltd's (VOEPL) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limit affirmed with IND
BB-/Stable rating; and
-- INR40 mil. Non-fund-based limit affirmed with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects VOEPL's continued small scale of
operations, indicated by revenue of INR186 million in FY19 (FY18:
INR266 million). The revenue declined to owe to lower execution of
orders. VOEPL achieved revenue of INR172.60 million for 9MFY20.
Ind-Ra expects the revenue to show stable growth in FY20, backed by
an order book of INR484 million (2.6x of the FY19 revenues) as of
December 2019.
Liquidity indicator - Stretched: The average maximum utilization of
working capital limits was low 15% for the 12 months ended December
2019. The utilization was low due to the weak order book in FY19.
The cash and cash equivalents stood at INR6.24 million in FY19
(FY18: INR2.42 million). The cash flow from operations (CFO) has
remained positive since the FY16. However, the CFO declined to
INR29 million in FY19 (FY18: INR43 million) owing to the decline in
EBITDA. The fund flow from operations declined to INR7 million in
FY19 (FY18: INR20 million).
The ratings reflect VOEPL's modest EBITDA margins due to the nature
of the business. The margins declined to 8.2% in FY19 (FY18: 11.8%)
owing to the decline in sales. The return on capital employed was
5% in FY19 (FY18:15%).
The ratings take into consideration VOEPL's moderate credit
metrics. The metrics deteriorated in FY19 due to a substantial
decline in the absolute EBITDA to INR15.28 million (FY18: INR31.23
million) and an increase in interest costs. The net leverage (total
adjusted net debt/operating EBITDAR) was 2.4x in FY19 (FY18: 1.8x)
and interest coverage (operating EBITDA/gross interest expense) was
1.9x (6.8x).
The ratings, however, continue to be supported by the promoter's
operational experience of over three decades in the manufacturing
of oil extractor machines.
RATING SENSITIVITIES
Negative: Inability to obtain fresh orders, leading to pressure on
the liquidity position will lead to negative rating action.
Positive: Continued improvement in the order book above 3x along
with an improvement in the liquidity position, will lead to
positive rating action.
COMPANY PROFILE
Formed in 1994, VOEPL is engaged in the manufacturing and export of
solvent extraction plants, refinery plants, hydrogenation plants
and fractionation plants for the edible oil industry. These plants
are exported in dismantled status and erected, engineered and
constructed by the engineers of VOEPL at the customer's location.
The projects are taken on a turnkey basis.
WINWIND POWER: ICRA Maintains 'D' Rating in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR608.16-crore bank facility of
Winwind Power Energy Private Limited continues to remain under
'Issuer Not Cooperating' category'. The ratings are denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: 150.0 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain in
Facilities the 'Issuer Not Cooperating'
category
Long Term: 288.22 [ICRA]D; ISSUER NOT COOPERATING;
Term Loans Rating Continues to remain in
the 'Issuer Not Cooperating'
category
Short term: 169.94 [ICRA]D; ISSUER NOT COOPERATING;
Nonfund based Rating Continues to remain in
Facilities the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
Winwind Power Energy Private Limited (WPEPL) was incorporated in
India in July 2007 as a 100% subsidiary of Winwind OY (WWO) - a
Finland based wind turbine manufacturer, established in the year
2000. WWO, a relatively recent entrant in the European Wind Energy
market, offers two WTG models - WWD1 with a 1 MW capacity and WWD3
with a 3 MW capacity. It has supplied approximately 328 MW of wind
power capacity in markets such as Finland, Sweden, Estonia,
Portugal, France, and Czech Republic. WPEPL commissioned its
manufacturing and assembly plant in Vengal, Tamil Nadu in June 2009
for producing the WWD1 model and currently possesses a production
capacity of 4 WWD1 WTGs per day.
WWO was acquired by the Chennai based Siva Ventures Ltd. (SVL) in
October 2006. SVL is a wholly owned subsidiary of Siva Industries
and Holdings Ltd. (SIHL, erstwhile Sterling Infotech Limited),
which was promoted by Mr. C. Sivasankaran in 1994. SVL is the
principal investment arm of The Siva Group (SG).
ZETA INDUSTRIAL: ICRA Maintains B- Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR10.00-crore bank facility of Zeta
Industrial Corporation Private Limited continues to remain under
'Issuer Not Cooperating' category. The Long-term rating is denoted
as "[ICRA] B-(Stable).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 2.50 [ICRA]B- (Stable) ISSUER NOT
Limits COOPERATING; Continues to
remain Issuer Not Cooperating
category
Non fund 4.50 [ICRA]B- (Stable) ISSUER NOT
Based limits COOPERATING; Continues to
remain Issuer Not Cooperating
category
Unallocated 3.00 [ICRA]B- (Stable) ISSUER NOT
COOPERATING; Continues to
remain Issuer Not Cooperating
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
ZICPL is involved in the business of assembling switchgears. It was
set up by Mr. Sanjay Gujral and is now managed by his two sons,
Siddharth and Karan Gujral, who have several years of experience in
the industry. The company's facility is located at Ghaziabad (Uttar
Pradesh).
=================
I N D O N E S I A
=================
ASURANSI JIWASRAYA: Indonesia Readies Rescue Plan for Insurer
-------------------------------------------------------------
Rieka Rahadiana and Tassia Sipahutar at Bloomberg News report that
Indonesian authorities are weighing the induction of a strategic
investor into a unit of the nation's oldest insurer that's on the
brink of collapse after alleged fund mismanagement left a $2
billion hole in its books.
PT Asuransi Jiwasraya has submitted a restructuring proposal to the
Financial Services Authority that includes the stake sale in unit
PT Jiwasraya Putra and securing financial assistance from a planned
holding company for state insurers, according to Riswinandi,
commissioner for non-banking financial industry at the authority,
known as OJK, Bloomberg relays.
Bloomberg says Jiwasraya is in dire need of a lifeline after audits
revealed violations of investment guidelines, leading to the
insurer reporting a negative equity of IDR27.2 trillion ($2
billion). The crisis, stemming from alleged product mispricing,
reckless investment activities, aggressive window dressing and
liquidity pressure has hurt its more than 7 million clients, the
report says.
The insurer's revamp plan has been approved by Finance Minister Sri
Mulyani Indrawati, Riswinandi said, Bloomberg relays. The
State-Owned Enterprises Minister Erick Thohir has said the
government was formulating a plan to rescue the insurer and OJK
Chairman Wimboh Santoso has hinted a stake sale in the unit
handling life insurance may ease the cash crunch at the company.
"Our requirement is that the investor must also be an insurance
company, or is part of a business group that runs an insurance
business," Bloomberg quotes Riswinandi as saying in an interview.
"We want the investor to have competence in this industry. Foreign
entities are also welcome to invest."
According to Bloomberg, authorities plan to make Jiwasraya's life
insurance unit more attractive to prospective investors by
partnering it with state-owned lender PT Bank Tabungan Negara, pawn
shop PT Pegadaian, railway operator PT Kereta Api Indonesia and
mobile services provider PT Telekomunikasi Selular. Jiwasraya Putra
will meet the insurance needs of tens of thousands of employees of
these companies and a captive market of that size will attract
investors, Riswinandi, as cited by Bloomberg, said.
Bloomberg relates that the insurer may also get funding from the
insurance holding company the government will soon establish
through a regulation, Riswinandi said, adding income from new
premiums may help ease the cash crunch at the firm.
Jiwasraya may raise about IDR5 trillion from the stake sale and
through the holding firm and improve its negative capital,
Riswinandi said.
Jiwasraya will be allowed to partner with an insurance company to
reinsure its products in due course and subject to it meeting all
requirements, Riswinandi said.
Bloomberg says the crisis at Jiwasraya has exposed the inadequacy
in existing regulations and lax supervision of the insurance
industry, with the government pledging to set up a rescue agency
and tighter surveillance. Regulators have also cracked down on
volatile penny stocks at the center of the Jiwasraya scandal
besides arresting some former executives for their alleged role in
causing financial losses.
OJK is partnering with the stock exchange and the market custodian
to obtain investment data for verification of those filed by the
insurance companies to prevent future defaults, Riswinandi said.
"One thing that we have started changing is our approach to
supervision. It is now based on risks, not on compliance,"
Riswinandi said. OJK is also working with Bank Indonesia to raise
supervision standards of the non-banking financial industry to the
same level as the banking industry, he said, relays Bloomberg.
=========
J A P A N
=========
NISSAN MOTOR: Will Go Bankrupt by 2020, Ghosn told Lawyer
---------------------------------------------------------
Lisa Du and Tsuyoshi Inajima at Bloomberg News report that Nissan
Motor Co. will go bankrupt within two to three years, Carlos Ghosn
told a defense attorney during more than 10 hours of interviews
before the auto executive skipped bail and left Japan.
The former chairman and chief executive officer of Nissan Motor Co.
and Renault SA made the prediction last year in a series of
conversations about his arrest and prosecution, said Nobuo Gohara,
a former prosecutor who also is a vocal critic of Japan's justice
system, Bloomberg relays.
"He told me that Nissan will probably go bankrupt within two to
three years," said Gohara, who held a news conference in Tokyo on
Jan. 22 to discuss his conversations with the fugitive former auto
titan. Mr. Ghosn didn't offer detailed reasons for why Nissan would
run into difficulties, according to the lawyer.
According to Bloomberg, the Yokohama-based company is suffering
from declining car sales in China and Europe, prompting it to slash
profit and sales forecasts for the fiscal year ending March 31 and
say it would eliminate 12,500 jobs globally.
Mr. Gohara said he met with and interviewed Mr. Ghosn five times
during a two-month period, just before the former auto executive
fled, for a book he planned to publish before the start of Mr.
Ghosn's trial -- no longer likely to take place. Mr. Gohara last
met with Mr. Ghosn two days before his December escape to Beirut,
Bloomberg says.
Bloomberg relates that the attorney said he had permission from Mr.
Ghosn to disclose the details of their conversations.
Bloomberg says Mr. Gohara regularly comments on issues surrounding
the Japanese justice system in his blog and TV appearances. Since
Mr. Ghosn's arrest, he's also criticized what he calls Japan's
"hostage justice" system and the country's recent introduction of
plea bargaining.
According to Bloomberg, the 65-year-old Ghosn, speaking earlier
this month from Beirut, said he fled Japan because he no longer
thought he would have a fair and speedy trial. Bloomberg relates
that the former executive was facing several charges of financial
misconduct, including underreporting his income and breach of
trust. In the latter charges, Japanese prosecutors accused him of
transferring personal trading losses to Nissan and using company
funds for his own and his family's gains.
Mr. Ghosn insisted he was the victim of a conspiracy to take him
out because he was working on a merger of Nissan and alliance
partner Renault, Bloomberg relays. Mitsubishi Motors Corp. is the
third member.
"Nissan and prosecutors worked together to bring a criminal case
against Mr. Ghosn," the report quotes Mr. Gohara as saying in
Tokyo.
Bloomberg notes that Greg Kelly, a former executive in the Nissan
CEO's office, was arrested the same day as Mr. Ghosn and is now
likely to face charges of financial misconduct alone. Mr. Kelly's
chances of proving his innocence are good, Mr. Gohara said,
"because the same issues are at stake for both Kelly and Ghosn. Mr.
Kelly's exoneration will mean Mr. Ghosn is also innocent,"
Bloomberg relays.
Mr. Ghosn spent a total of almost 130 days in a Tokyo jail and was
facing trial in a country where prosecutors virtually never lose,
the report says. He was freed on bail last year under strict
conditions, such as not being able to communicate with his wife and
only being allowed to use a computer in his lawyer's office, adds
Bloomberg.
Nissan Motor Company Ltd, usually shortened to Nissan, is a
Japanese multinational automobile manufacturer headquartered in
Nishi-ku, Yokohama, Japan.
=====================
N E W Z E A L A N D
=====================
CHALLENGE STATION: In Liquidation; Asset Sale Set Feb. 1
--------------------------------------------------------
The Marlborough Express reports that an assets sale following the
closure of a service station in central Blenheim could give new
meaning to the term "lolly scramble".
The Challenge Station, on Queen St, was put into liquidation on
December 28, after owing close to NZD350,000 to creditors,
including NZD9,000 to employees, the Marlborough Express says.
According to the Marlborough Express, the liquidator's first report
estimated the sale of assets -- everything from lollies and ice
blocks to tyres and oils -- could bring the amount owed down to
NZD172,309.
The Marlborough Express relates that the report had not carried out
an audit, but was a "summarisation of financial information
supplied by the company", it said. Liquidation was expected to be
completed within three months, the Marlborough Express notes.
An auction would take place at the Queen St site on Feb. 1 at 11:00
a.m., with viewing open from 9:00 a.m., the report discloses.
=================
S I N G A P O R E
=================
HYFLUX LTD: Utico Proposes Changes to Adviser Fees' Pot
-------------------------------------------------------
The Business Times reports that Hyflux Ltd white knight Utico will
raise the pot for adviser fees to SGD50 million if it receives the
support from all advisers for the Hyflux scheme and restructuring
agreement (RA) at a court hearing set to take place today, Jan. 29,
it said in a letter dated Jan. 28 to the water treatment firm.
On the other hand, the pot would decline from SGD40 million (as per
the RA inked on Nov 26, 2019 with Hyflux) to SGD30 million if the
advisers fail to support the scheme at the hearing. Utico's own
adviser fees are separate and do not come from the SGD50 million
pot, it clarified, BT relays.
According to BT, Middle Eastern utility provider Utico is offering
a SGD400 million rescue package to the beleaguered firm.
It added: "Securities Investors Association (Singapore) advisers
will be treated in a special manner if their work and effort result
in P&P (perpetual securities and preference shares) votes as and
when necessary, considering they are a Junior Group and has Utico's
special separate efforts."
The proposition around the adviser pot hinges on completing the
scheme by April this year with the support of all advisers, Utico
said in the letter, BT relates.
BT adds that Utico also said that it will not consider exercising
its right to exit the RA as long as the scheme is supported by all
advisers at the court hearing.
This comes as Hyflux's board of directors is understood to have
already sent letters to all advisers with a minimum haircut of 25
per cent on all adviser fees, the report states. Some advisers are
said to have rejected Hyflux's proposal and have stated that they
will not support the scheme and the RA.
Under the RA, all adviser fees were due to be capped at SGD40
million. That pot would have to cover a success fee of up to SGD25
million payable to Hyflux adviser nTan Corporate Advisory if the
restructuring is successful, BT relates citing Debtwire.
If an approved scheme with the support of all advisers is not
received, "Utico cannot continue to commit to a process of a moving
goalpost or a moving date for a company under moratorium with
losing value and maintain the same valuation, payment terms and
conditions, or the overall recovery to all stakeholders", Utico
warned, according to BT.
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.
In November 2019, Hyflux entered into a restructuring deal with
United Arab Emirates-based utility Utico FZC, according to Reuters.
*********
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.
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