/raid1/www/Hosts/bankrupt/TCRAP_Public/200207.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, February 7, 2020, Vol. 23, No. 28
Headlines
A U S T R A L I A
CITY OF WOLLONGONG AERIAL: 1st Creditors' Meeting Set for Feb. 17
COCONUT POST: First Creditors' Meeting Set for Feb. 13
GLOBAL MERCES: ASIC Obtains Order to Wind Up Firm
INSURANCE HOUSE: First Creditors' Meeting Set for Feb. 18
S. M. COMMERCIAL: First Creditors' Meeting Set for Feb. 13
SPEEDCAST INTL: Moody's Cuts CFR & Sr. Sec. Term Loan Rating to B3
C H I N A
CHINA: US$1.5-Tril. Pile of Bad Debt Attracts Foreign Funds
TIANQI LITHIUM: Moody's Cuts CFR & Sr. Unsec. Bond Rating to 'B2'
H O N G K O N G
CATHAY PACIFIC: Asks 27,000 Employees to Take Unpaid Leave
NORD ANGLIA: S&P Lowers Debt Ratings to 'B-'
I N D I A
A.K.G. MEMORIAL: CRISIL Withdraws 'B' Rating on INR7cr Term Loan
ABHISHEK PROPBUILD: CARE Lowers Rating on INR129.30cr Loan to D
AGGARSAIN SPINNERS: Ind-Ra Migrates B- Rating to Non-Cooperating
ATUL VATIKA: Insolvency Resolution Process Case Summary
BMI WHOLESALE: CARE Reaffirms B+ Rating on INR18.31cr LT Loan
C-TEL INFOSYSTEMS: Insolvency Resolution Process Case Summary
DEMBLA TIMBER: Ind-Ra Lowers Long Term Issuer Rating to 'D'
ESSEM18 CONSTRUCTION: CARE Assigns B+ Rating to INR10cr LT Loan
FIVE CORE: Insolvency Resolution Process Case Summary
GEETASHREE PULSES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
GUJARAT METALLIC: Insolvency Resolution Process Case Summary
HAIL TEA: Insolvency Resolution Process Case Summary
HOSPITECH MANAGEMENT: Insolvency Resolution Process Case Summary
JAGANNATH POLYPACKS: CRISIL Maintains C Rating in Not Cooperating
JBS ENGINEERING: CRISIL Maintains 'D' Rating in Not Cooperating
K BHUPAL: Ind-Ra Affirms BB+ Issuer Rating, Alters Outlook to Pos.
KAYO ENTERPRISES: Insolvency Resolution Process Case Summary
KEDARESHWAR FIBRES: CARE Withdraws B+, Stable Rating on Bank Loans
KRISHNA KNITWEAR: Insolvency Resolution Process Case Summary
LAKSHMI STEEL: CRISIL Lowers Rating on INR7.5cr Loan to B+
LONDON STAR: CRISIL Maintains 'D' Rating in Not Cooperating
LOTUS LANDMARKS: CRISIL Maintains 'B' Rating in Not Cooperating
M R DIAMOND: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
M. P. K. ISPAT: CRISIL Maintains 'D' Rating in Not Cooperating
M. P. K. METALS: CRISIL Maintains D Rating in Not Cooperating
M.R. OVERSEAS: CRISIL Maintains B+ Rating in Not Cooperating
MAA AMBA: CRISIL Lowers Rating on INR19cr Loans to B+
MANIDHARI OILS: CRISIL Maintains 'D' Rating in Not Cooperating
MARIGOLD CONSTRUCTIONS: CRISIL Keeps D Rating in Not Cooperating
MASCONS ENGINEERING: CRISIL Keeps D Rating in Not Cooperating
MATHURA FIBERS: Ind-Ra Cuts LT Issuer Rating to B+, Outlook Stable
MAYA SAHA: CRISIL Maintains 'B-' Rating in Not Cooperating
MAYURI ELECTRONICS: CRISIL Cuts Rating on INR7.4cr Loan to B+
N.S.P. TEX: CRISIL Maintains 'B' Rating in Not Cooperating
NARAYANADRI HOSPITALS: Ind-Ra Migrates D Rating to Non-Cooperating
NATIONAL HOTELS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
NEW SRI BALAJI: CRISIL Maintains B- Rating in Not Cooperating
NUTRI AGROVET: CRISIL Maintains 'B' Rating in Not Cooperating
OM SHAKTHI: CRISIL Maintains 'D' Rating in Not Cooperating
P. B. ALLOYS: CRISIL Maintains 'B' Rating in Not Cooperating
PARAMOUNT CONDUCTORS: CRISIL Keeps 'D' Rating in Not Cooperating
PITTI CASTINGS: Ind-Ra Raises Issuer Rating to B-, Outlook Stable
POOJA SPONGE: CRISIL Maintains 'D' Rating in Not Cooperating
QUICKDEL LOGISTICS: Insolvency Resolution Process Case Summary
RAJ RAYON: Insolvency Resolution Process Case Summary
RAMNATH DEVELOPERS: Insolvency Resolution Process Case Summary
RBR GARMENTS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
RELIANCE INFRASTRUCTURE: CARE Reaffirms 'D' INR1654.3cr Loan Rating
RUKMANI RETAILS: CARE Lowers Rating on INR4.50cr Loan to 'B'
S.R.K. CHEMICALS: Insolvency Resolution Process Case Summary
SAFETEC HEALTHCARE: Insolvency Resolution Process Case Summary
SAKTHI CONSTRUCTIONS: CARE Assigns B+ Rating to INR4cr Loan
SANTOSH W/O: CRISIL Lowers Rating on INR7.85cr Term Loan to D
SGR EXIM: Ind-Ra Corrects July 22, 2019 Ratings Release
SHETTY-PATIL DEVELOPERS: Insolvency Resolution Case Summary
SILON GRANITO: CARE Lowers Rating on INR28.70cr Loan to 'D'
TAURUS HIDES: Insolvency Resolution Process Case Summary
TRIKAAL LEASING: CARE Maintains B+(FD) Rating in Not Cooperating
VRUNDAVAN CERAMIC: Insolvency Resolution Process Case Summary
WIN-HOLT INDIA: Insolvency Resolution Process Case Summary
YASHDEEP TRADEMART: CARE Withdraws B-, Stable Rating on Bank Loans
S I N G A P O R E
LIBRA GROUP: Replies to SGX Queries on Board Reconstitution
T H A I L A N D
THAILAND: Cuts Interest Rate as Virus Outbreak Hurts Economy
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A U S T R A L I A
=================
CITY OF WOLLONGONG AERIAL: 1st Creditors' Meeting Set for Feb. 17
-----------------------------------------------------------------
A first meeting of the creditors in the proceedings of City of
Wollongong Aerial Patrol Inc, trading as NSW Incorporated
Association Number Y1535038, will be held on Feb. 17, 2020, at
10:30 a.m. at the offices of Worrells Solvency & Forensic
Accountants, Suite 1, at 151 Tongarra Road, in Albion Park, NSW.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency
& Forensic Accountants were appointed as administrators of City of
Wollongong Aerial on Feb. 5, 2020.
COCONUT POST: First Creditors' Meeting Set for Feb. 13
------------------------------------------------------
A first meeting of the creditors in the proceedings of Coconut Post
Tensioning Pty Ltd, trading as Coconut Group PT, will be held on
Feb. 13, 2020, at 4:00 p.m. at the offices of BDO, Collins Square,
Tower Four, Level 18, at 727 Collins Street, in Docklands,
Melbourne, Victoria.
Nicholas John Martin and Andrew Peter Martin of BDO were appointed
as administrators of Coconut Post on Feb. 3, 2020.
GLOBAL MERCES: ASIC Obtains Order to Wind Up Firm
-------------------------------------------------
The Federal Court of Australia in Melbourne has ordered that Global
Merces Funds Management Ltd be wound up on just and equitable
grounds and appointed Anthony Connelly and Michael Hill of
McGrathNicol, as joint and several liquidators of the company.
On Jan. 24, 2020, ASIC applied to have Global Merces wound up.
ASIC commenced the proceedings to protect the public in
circumstances where it holds concerns about the conduct of the
affairs of the company and its insolvency.
ASIC's investigation in relation to Global Merces is ongoing.
Global Merces is the responsible entity of Global Merces Access
Fund ARSN 604 201 952, Global Merces Equities Fund ARSN 604 220 662
and Covesta ARSN 625 625 803 (collectively referred to as 'the
Schemes').
A voluntary administrator was appointed to Global Merces on Jan.
13, 2020.
On Jan. 21, 2020, ASIC suspended the Australian financial service
(AFS) licence of Global Merces for a period of six months.
INSURANCE HOUSE: First Creditors' Meeting Set for Feb. 18
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Insurance
House of Australia Pty Ltd will be held on Feb. 18, 2020, at 10:00
a.m.
Matthew John Bookless and Anne Meagher of SV Partners were
appointed as administrators of Insurance House on Feb. 6, 2020.
S. M. COMMERCIAL: First Creditors' Meeting Set for Feb. 13
----------------------------------------------------------
A first meeting of the creditors in the proceedings of S. M.
Commercial Interiors Pty Limited will be held on Feb. 13, 2020, at
11:00 a.m. at the offices of Deloitte, Level 10, at 550 Bourke
Street, in Melbourne, Victoria.
Robert Woods of Deloitte was appointed as administrator of S. M.
Commercial on Jan. 23, 2020.
SPEEDCAST INTL: Moody's Cuts CFR & Sr. Sec. Term Loan Rating to B3
-------------------------------------------------------------------
Moody's Investors Service has downgraded to B3 from B2 Speedcast
International Limited's corporate family and senior secured term
loan ratings.
The rating outlook remains negative.
RATINGS RATIONALE
"The downgrade of Speedcast's ratings mainly reflects the continued
weakening in the company's operating performance, as highlighted by
its repeated earnings guidance misses," says Sean Hwang, a Moody's
Analyst.
"Such persistently sluggish performance increases concern over the
company's liquidity, which narrowed significantly during 2019,"
adds Hwang.
On February 3, 2020, Speedcast announced that its EBITDA for 2019
would be around 10% below its previous guidance of $140-$150
million. This EBITDA measure excludes the impact of the change in
lease accounting, but includes one-off gains, such as procurement
savings.
Moody's estimates that this result would represent a like-for-like
decline of around 10%-15% from a year earlier, after adjusting for
the acquisition in December 2018 of Globecomm Systems Inc.
In this regard, and given the reduced availability of cash and
revolving credit facilities, Speedcast's liquidity risk is high,
despite the absence of bullet maturities before 2023.
There is also an increasing risk of the company breaching the
covenants associated with its revolving credit facilities, despite
the temporary relaxation of the pro forma net debt/EBITDA trigger
to 4.5x until fiscal 2020 from the original 4.0x.
Speedcast is considering the potential sale of certain assets to
reduce debt and improve liquidity. However, the timeline and size
of such asset sales remain uncertain at this point, and are
therefore not factored into the ratings or outlook.
Moody's estimates that Speedcast's Moody's-adjusted gross
debt/EBITDA increased to about 5.5x in 2019 from 4.3x in 2018 (pro
forma), because of weakened earnings and increased debt. Without
sizeable asset sales, the ratio will likely stay elevated over the
next 12-18 months, given its significant operating challenges.
In terms of environmental, social and governance considerations,
the continued changes in its leadership team, including the
just-announced resignation of its long-time CEO, further highlight
the company's heightened operational challenges and could
potentially impact the initiatives the company is taking to address
such challenges. The ratings also factor in the company's history
of aggressive acquisitions, although such inorganic growth is no
longer the company's strategic priority.
The negative outlook on Speedcast's ratings continues to reflect
uncertainties over the company's ability to improve earnings and
Moody's heightened concern over its liquidity profile.
The outlook could return to stable if the company improves its
liquidity buffers through better earnings, cash flow, or asset
sales, or a combination.
Moody's could downgrade the ratings further, if Speedcast's
liquidity or earnings continue to weaken.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Speedcast International Limited is a leading provider of satellite
communications and network services in remote locations globally,
mainly serving customers in the maritime, energy, enterprise and
government segments. Speedcast listed on the Australian Stock
Exchange in 2014.
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C H I N A
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CHINA: US$1.5-Tril. Pile of Bad Debt Attracts Foreign Funds
-----------------------------------------------------------
Bloomberg News reports that China's massive pile of soured debt is
set to get even bigger, giving foreign investors more opportunities
to try to profit from the cleanup.
Nonperforming loans and stressed assets are likely to keep growing
after reaching $1.5 trillion in 2019, Bloomberg relates citing a
new study from PricewaterhouseCoopers.
According to Bloomberg, the mountain of soured borrowings is rising
as the world's second-largest economy opens further to foreign
capital. As part of a recent trade deal, China is now allowing U.S.
firms to apply for licenses to buy non-performing loans directly
from banks, the report says.
While the PwC report didn't discuss the new coronavirus, other
observers say the epidemic may add to credit strains, Bloomberg
states.
That could further increase the need for distressed debt
specialists to expand operations in China.
The contagion could "wreck havoc" in certain areas of the economy
and there will probably be a substantial increase in distressed
debt unless the central bank injects liquidity, according to
Oaktree Capital Group LLC's co-chairman, Bloomberg relays. China's
beleaguered banks could take a $800 billion hit as the sickness
threatens large swaths of the economy, S&P Global Ratings said.
Bloomberg says borrowing costs for Chinese firms have increased
recently due in part to the virus concerns, and that could make it
more expensive for weaker companies to refinance obligations coming
due soon.
According to Bloomberg, China's actual amount of bad loans has
often been a source of debate. PwC's measure is a broader one that
includes NPLs, as well as loans on bank watch lists and NPLs held
by asset management firms.
Official Chinese figures show that Chinese banks had CNY2.2
trillion ($314 billion) of nonperforming loans reported as of the
end of June.
However you slice it, the nation's growing pool of soured debt is
becoming harder to ignore, Bloomberg says.
"The size of the distressed market is huge," Bloomberg quotes James
Dilley, partner at PwC, as saying in an interview. "If you're a
distressed debt fund sitting in Boston, sitting in New York,
sitting in London, the market is just so big it's difficult to
justify to LPs why you're not looking at China."
PwC estimates that international investors made $1.1 billion of
investments into NPLs in 2019, and a number of high-profile
investors have been "screening deals and will be looking to close
their first transaction in 2020." Most of the transactions done by
foreign investors in the current cycle have been in China's richest
regions including Jiangsu, Zhejiang and Guangdong, PwC, as cited by
Bloomberg, said.
Investors are targeting annualized returns of around 13% to 15%,
and adding leverage to boost this, PwC said, Bloomberg relays.
Anecdotally, there have been concerns about returns, and this is
likely due to disappointing results on a handful of deals closed by
foreign investors between 2015 and 2017, according to PwC.
Some investors were "naive" when it came to the time needed to
recover individual loans, which affected returns, while the
reduction in domestic liquidity since mid-2018 has made it tougher
for some to on-sell their loans to local investors, the consultancy
firm added, Bloomberg reports.
TIANQI LITHIUM: Moody's Cuts CFR & Sr. Unsec. Bond Rating to 'B2'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to B2 from B1 Tianqi
Lithium Corporation's corporate family rating and the senior
unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and
guaranteed by Tianqi Lithium.
The ratings outlook remains negative.
RATINGS RATIONALE
"The ratings downgrade reflects Tianqi Lithium's reduced financial
flexibility as a result of its weakened capital structure, which in
turn will raise refinancing risk, in particular with regard to the
November 2020 maturity of part of the loan associated with its
acquisition of a stake in Sociedad Quimica y Minera de Chile S.A.
(SQM, Baa1 stable)," says Gerwin Ho, a Moody's Vice President and
Senior Credit Officer.
In an announcement dated February 3, 2020, the company announced it
expects a RMB2.6-RMB3.8 billion net loss for 2019, revised
significantly from the RMB80-RMB120 million net profit it guided in
late October 2019.
The updated guidance includes an estimated RMB2.2 billion
impairment charge related to its 25.9% stake in SQM, which Tianqi
Lithium reports as long-term investment on an equity method basis.
This impairment charge could materially reduce Tianqi Lithium's
equity base.
Tianqi Lithium's leverage increased significantly following its
acquisition of a 23.8% stake in SQM in December 2018, which brought
its total stake in the company to 25.9%.
Moody's expects Tianqi Lithium's financial leverage — as measured
by total debt to EBITDA — will remain elevated at about 8.5x over
the next 12 months, with SQM accounted for on an equity method
basis.
At the same time, volatility in lithium chemical prices and a
slower than expected ramp up at its lithium chemical production
operations in Australia could weaken the company's cash flow
generation and delay deleveraging.
Tianqi Lithium's liquidity is weak. At 30 September 2019, the
company's cash reserves — including restricted cash — of RMB1.7
billion were insufficient to cover its short-term debt of RMB3.1
billion.
Moody's expects that the company will be able to roll over its debt
with banks, given its strong market position.
The company also has a track record of access to diversified
funding channels, including onshore debt instruments such as
medium-term notes, and equity fund raising from its listing in
Shenzhen.
Moody's notes that Tianqi Lithium has plans to improve its capital
structure, including the repayment of the portion of its
acquisition loan due in November 2020, through other financing
plans. Moody's will monitor the progress of such plans; and any
failure to execute on such plans could further pressure its
ratings.
Tianqi Lithium's B2 CFR reflects the positive demand outlook for
lithium chemical products, the company's strong position in the
lithium chemical industry, and good profitability, driven by its
supply of low-cost lithium minerals.
On the other hand, the rating is constrained by Tianqi Lithium's
product concentration in lithium minerals and lithium chemicals,
with limited revenue scale, and exposure to regulatory risks.
The negative ratings outlook reflects the uncertainty related to
Tianqi Lithium's refinancing plans, weak liquidity position and
weakened operations.
Environmental, social and governance (ESG) issues are material to
the ratings and were assessed as follows.
First, the company benefits from global trends to reduce carbon
emissions, because lithium is a core input into the manufacture of
electric vehicles.
Second, its mining and chemical production operations are exposed
to environmental and safety risks.
Third, Tianqi Lithium's ownership is concentrated and only a
minority of its board consists of independent directors. Moreover,
the company's debt-funded acquisition of a 23.8% stake in SQM hints
at an aggressive financial policy.
The outlook on Tianqi Lithium's ratings could return to stable if
the company executes its refinancing plan, and improves its
liquidity position and capital structure significantly.
Conversely, the ratings could be downgraded if the company fails to
execute its refinancing plan or fails to significantly strengthen
its liquidity position and capital structure.
The senior unsecured rating is exposed to legal and structural
subordination, because a substantial portion of the liabilities are
at the operating company level, and there is secured lending
related to the acquisition financing. The rating could be
downgraded if the company does not succeed in refinancing all or
part of the acquisition loan through non-debt financing.
The principal methodology used in these ratings was Chemical
Industry published in March 2019.
Headquartered in Chengdu, Sichuan Province, Tianqi Lithium
Corporation is a leading lithium chemical producer that mines make
and sell lithium minerals and lithium chemicals.
The company owns a 51% stake in the Greenbushes lithium mine in
Western Australia. It also owns a 25.9% stake in Chilean chemical
producer, Sociedad Quimica y Minera de Chile S.A.
=================
H O N G K O N G
=================
CATHAY PACIFIC: Asks 27,000 Employees to Take Unpaid Leave
----------------------------------------------------------
Reuters reports that Hong Kong's Cathay Pacific Airways asked its
27,000 employees to take three weeks of unpaid leave, saying
preserving cash was key for the carrier and that conditions were as
grave as during the 2009 financial crisis due to the virus
outbreak.
Cathay is also asking suppliers for price reductions, putting in
place hiring freezes, postponing major projects and stopping all
non-critical spending, Chief Executive Augustus Tang said in a
video message to staff seen by Reuters.
On Feb. 4, the carrier said it planned to cut about 30% of capacity
over the next two months, including about 90% of flights to
mainland China, Reuters relays.
According to Reuters, Cathay had already experienced a sharp fall
in demand since the middle of last year due to widespread,
sometimes violent anti-government protests in Hong Kong.
Reuters says the virus, which has led to a death toll of nearly
500, has led to a further drop in visitors and passengers
transiting through Hong Kong's airport.
"This has been one of the most difficult Chinese New Year holidays
we have ever had," Reuters quotes Tang as saying in the video. "We
don't know how long this will last. With such an uncertain outlook
preserving our cash is now the key to protecting our business."
A few hours after the video was released, Hong Kong leader Carrie
Lam announced any visitors from mainland China would need to
undergo a compulsory quarantine for 14 days, the report says.
Reuters adds that Cathay said in a statement it was appealing to
all employees to participate in the unpaid leave scheme that will
run from March 1 until June 30.
Tang said it was the first time the company had offered an unpaid
leave scheme since 2009, when demand plummeted due to a global
financial crisis, Reuters relays.
"We had the overwhelming support of our employees," he said, about
the 2009 scheme. "It made an enormous difference. The situation now
is just as grave and I ask for the same commitment to the future
from you."
The leave scheme, first reported by the South China Morning Post,
is not mandatory but employees are encouraged to take it, a
spokeswoman said, Reuters relays.
Cathay shares closed 2.7% higher on Wednesday following the
announcement of capacity cuts which came after the market closed on
Feb. 4, the report notes.
In a note to clients, Jefferies analysts estimated the airline
would report a loss in the first half of 2020 before returning to a
profit in the second half, assuming traffic rebounds as it did with
the 2003 SARS epidemic, adds Reuters.
NORD ANGLIA: S&P Lowers Debt Ratings to 'B-'
--------------------------------------------
S&P Global Ratings lowered to 'B-' from 'B' its ratings on Bach
Finance Ltd., and its ratings on the senior secured notes issued by
Fugue Finance B.V.
Nord Anglia Education's parent company, Bach Finance Ltd., has
reported weak cash flow generation in 2019, hit by large
exceptional costs and large growth-focused capital expenditure
(capex).
In FY2019, Nord Anglia's revenue and earnings grew strongly, but
margins were hit by larger-than-expected exceptional expenses.
Nord Anglia's parent entity, Bach Finance, reported top-line growth
of 11.6%. Revenue reached $1.3 billion over FY2019. However, the
group's exceptional costs were elevated for a second year because
of the relocation of its headquarters to London from Hong Kong.
Adjusted EBITDA margins fell by about 60 basis points (bps) to
29.4%, causing adjusted EBITDA interest cover to remain below 2.0x
at 1.9x for the year.
Despite sound earnings growth and equity-funded acquisitions, the
group failed to materially reduce its financial leverage, closing
FY2019 with adjusted debt to EBITDA of 11.8x.
Given that it mostly operates from leased premises, Nord Anglia's
rapid expansion has boosted its operating lease liabilities by
almost 50% over the past two years. As a result, its earnings
growth has had scant impact on our adjusted leverage metrics. Bach
Finance ended FY2019 with adjusted debt of over $4.5
billion--comprising $2.4 billion bank debt and loan facilities,
$1.5 billion of operating and finance lease liabilities, and about
$700 million of preference share liabilities. Its adjusted debt to
EBITDA declined marginally, to 11.8x from 12.1x in FY2018. In
addition, sustained high exceptional costs, increased investments
in greenfield projects, and growing maintenance capex requirements
prevented the group from reporting positive FOCF over the year.
The group's liquidity position has remained sound, although its
expansionary capex plans could weaken its liquidity profile in the
medium term.
Nord Anglia receives a large portion of its yearly tuition fees
upfront. Given this working capital profile, the group's liquidity
sources at the beginning of each financial year tend to be
considerable. In August 2019, the group had $574 million of cash
and cash equivalents on balance sheet, and full availability under
the $250 million revolving credit facility (RCF). S&P considers
this to be beneficial for the group's short-term liquidity risk,
although it takes into account that intrayear working capital
requirements can be significant, at up to $300 million.
Although S&P expects the group to maintain comfortable headroom in
its liquidity position over the next 12-24 months, continued high
levels of capex and material negative free cash flow generation
could weaken its liquidity profile in the longer run.
Although Nord Anglia has a significant presence in China, S&P's
base case does not incorporate a severe shortfall in full-year
results or long-term prospects as a result of the recent
coronavirus outbreak.
In FY2019, China accounted for roughly 20% of group revenue. Of
Nord Anglia's 66 international schools, 14 are in China, although
none are in or near Wuhan. Nevertheless, the virus has quickly
spread and some of the students in these schools could be relocated
if expatriate communities in China start a generalized evacuation.
However, this process has not materialized so far, and is not part
of S&P's base-case scenario.
Students in China were not due to resume their studies until
mid-February, due to the Chinese New Year celebrations. This will
mitigate the initial impact of the virus on normal school
operations. At this stage, it is too early to say how the virus
will evolve over the next few weeks. S&P will continue to monitor
the situation.
S&P said, "The stable outlook indicates that we expect Nord Anglia
to achieve further strong year-on-year growth of 13% in 2020, aided
by acquisitions and new school openings. Meanwhile, adjusted EBITDA
margins should improve to above 30% as the amount of exceptional
charges falls over FY2020. We also forecast that adjusted debt to
EBITDA will fall below 10.0x, including shareholder instruments, by
the end of FY2020 (8.0x-8.5x, excluding shareholder instruments).
However, FOCF could remain negative in FY2020 for a third
consecutive year, given the group's high expansionary capex
commitments.
"We could lower the ratings on Bach Finance if the group were to
underperform our base case, reporting lower-than-expected revenue
growth or profitability, or no reduction in adjusted leverage below
8.5x (excluding shareholder loans). This could happen if the
group's recent acquisitions and greenfield investments do not
perform to our expectations, or if global macroeconomic conditions
cause the group's growth outlook to deteriorate.
"We could also revise our ratings downward if the group or its
financial sponsor were to consider buying back a proportion of its
outstanding loans at a discount to its par value. We would consider
such a transaction akin to a distressed exchange and therefore
tantamount to a default.
"Although a positive rating action is unlikely over the next 12
months, we could raise our ratings on Bach Finance if its
performance materially exceeded our base case. For example, we
could consider an upgrade if leverage were reduced sustainably so
that the adjusted debt-to-EBITDA ratio was below 7.5x, excluding
shareholder instruments, and we saw sizable FOCF generation on a
sustainable basis. An upgrade would also require EBITDA cash
interest coverage well above 2.0x at all times, and that the
owners' financial policy supported these ratios."
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I N D I A
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A.K.G. MEMORIAL: CRISIL Withdraws 'B' Rating on INR7cr Term Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of A.K.G.
Memorial Printing and Publishing Company Private Limited (AKG) on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 0.5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating
Withdrawn)
Term Loan 7.0 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating
Withdrawn)
CRISIL has been consistently following up with AKG for obtaining
information through letters and emails dated April 30, 2019 and May
24, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AKG. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for AKG is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information, CRISIL
has Continues the ratings on the bank facilities of AKG to 'CRISIL
B/Stable Issuer not cooperating'.
CRISIL has withdrawn its rating on the bank facilities of AKG on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.
AKG operates a printing press in Kannur (Kerala) for publication of
'Deshabhimani' newspaper, the third most widely read newspaper
daily in Kerala and the official mouthpiece of the CPI(M) party.
ABHISHEK PROPBUILD: CARE Lowers Rating on INR129.30cr Loan to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Abhishek Propbuild Private Limited (APPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 129.30 CARE D Revised from
Facilities CARE BBB-(CE); Stable
Detailed Rationale, Key Rating Drivers and detailed description of
the key rating drivers
The revision in rating of bank facilities of APPL is on account
continuous delays reported in servicing of rated facility as per
term loan account statements submitted by company for the months of
April 2019 to Sep 2019. The delay is due to the cash flow
mismatches on account of delay in receipt of power payments from
mall's tenants.
Rating Sensitivities
Positive Factors
* Continuous timely servicing of the term loan with no delays for
period of more than 3 months.
Liquidity: Poor
Liquidity position of the company is poor considering delay in
receivables from mall's tenants pertaining to sale of power with
company not maintaining DSRA for past 6 months.
Analytical approach: Standalone financials of the company along
with transaction structure based upon escrowing of receivables from
underlying windmill assets of Abhishek Propbuild Private Ltd,
Mantri Developers Private Ltd and Mantri Homes is considered.
Abhishek Propbuild Pvt Ltd, part of Mantri group, is operating a
retail mall viz. 'Mantri Square Mall (MSM)' in Malleswaram,
Bengaluru with leasable area of 867, 636 sft and 12 MW of wind mill
assets in Davangere district of Karnataka. The power generated from
wind mills is largely utilized for captive consumption with balance
power sold out to 3rd parties in open market. The wind mill
receivables of the firm along with receivables from group windmill
assets aggregating to 23 MW are separately securitized.
AGGARSAIN SPINNERS: Ind-Ra Migrates B- Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Aggarsain Spinners
Limited's (ASL) Long-Term Issuer Rating to 'IND B- (ISSUER NOT
COOPERATING)' in the non-cooperating category and simultaneously
withdrawn it.
The instrument-wise rating actions are:
-- INR19.00 mil. Fund-based working capital limit* migrated in
the non-cooperating category and withdrawn.
*Migrated to 'IND B- (ISSUER NOT COOPERATING)'/'IND A4 (ISSUER NOT
COOPERATING)' before being withdrawn.
KEY RATING DRIVERS
ASL did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Ind-Ra is no longer required
to maintain the ratings, as it has received a no-objection
certificate from the rated facilities' lender. 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 1998, ASL is engaged in trading of cotton yarn and
fabrics in Himachal Pradesh, Haryana, Punjab, Delhi, Rajasthan, and
Uttar Pradesh. The day-to-day operations are managed by Ramesh
Kumar Garg; Sunny Garg and Ajay Kumar Garg, who are also the
directors of the company.
ATUL VATIKA: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Atul Vatika Developers Pvt. Ltd.
308 (Old No. 135), Maidan Garhi
Delhi 110068
India
Insolvency Commencement Date: October 11, 2019
Court: National Company Law Tribunal, New Delhi Bench-V
Estimated date of closure of
insolvency resolution process: April 8, 2020
(180 days from commencement)
Insolvency professional: Akhilesh Kumar Gupta
Interim Resolution
Professional: Akhilesh Kumar Gupta
A-16/4, Vasant Vihar
New Delhi 110057
E-mail: akhilesh@llca.net
- and -
Luthra & Luthra Restructuring
And Insolvency Advisors LLP
A-16/9, Vasant Vihar
New Delhi 110057
E-mail: avdpl.irp@llca.net
Last date for
submission of claims: February 9, 2020
BMI WHOLESALE: CARE Reaffirms B+ Rating on INR18.31cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of BMI
Wholesale Trading Private Limited (BMI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 18.31 CARE B+; Stable Reaffirmed
Short-term Bank
Facilities 4.00 CARE A4 Reaffirmed
Detailed Rationale
The ratings assigned to the bank facilities of BMI continues to be
constrained by modest scale of operation coupled with relatively
small net worth base as on March 31, 2019, cash losses incurred in
FY19, highly working capital intensive nature of operations, highly
leveraged capital structure and weak debt coverage indicators. The
ratings further continue to be constrained by increased competition
from the domestic and global brands.
The aforesaid constraints, however, continue to be partially offset
by the strength derived from established track record of the
promoter in the marketing of premium brands in apparels though the
licensing arrangement and established brand presence with wide
geographical reach.
Rating sensitivities
Positive factors
* Growth in total operating income: Growth in the total operating
income of the company to a level of around INR80-100 crore on
sustained basis
* Improvement in profit margins: Improvement in operating margin to
remain in range of 17-20% and net profit margin to remain in range
of 3-6%
* Improvement in capital structure and debt coverage indicators:
Ability of the company to improve capital structure below unity and
interest ratio in range of 3-5x times and total debt /GCA in range
of 3-5x times.
Negative factors
Elongation in inventory holding period: Elongation in inventory
period to 60-90 days
Detailed description of the key rating drivers
Key Rating Weaknesses
Modest scale of operation coupled with small net worth base: BMI's
scale of operation grew significantly by 56.51% in FY19 to INR57.80
crore from INR36.93 crore in FY18 on account of increased revenue
earned from e-commerce sales due to increased demand coupled with
in number of distributors and MBO's added in FY19, from 8
distributors and 60 multi brand outlets (MBO's) in FY18 to 14
distributors & 84 multi brand outlets in FY19.
Further, for 9MFY20 the company have earned the sales of INR27.00
crore (vis-à-vis INR36.63 crore in 9MFY19) and have an order book
of INR30.00 crore which will be executed by March, 2020. However
despite the growth in scale of operation it continues to remain
modest. Further net worth base of the company continued to remain
small at INR0.37 crore as on March 31, 2019.
Achieved operating profit however continued to incur net loss
during FY19: Company achieved operating profit of INR8.67 crore in
FY19 vis-à-vis operating loss of INR0.80 crore in FY18 due to
change in franchisee business model and increased proportion of
revenue being generated from wholesale and ecommerce business
segment wherein realization are higher.
However company continued to incur net losses but the proportion
has reduced to INR1.38 crore in FY19 vis-à-vis INR6.94 crore in
FY18 on account of improvement in operating profitability and
reduction in depreciation expenses.
Further on excluding non-operating expenses (towards prior prepaid
expenses), company achieved net profit of INR0.29 crore in FY19.
However, it continues to post cash loss.
Leveraged capital structure and weak debt coverage indicators: The
capital structure continued to remain leveraged however improved
with increase in net worth base on account of infusion of equity
shares by promoters at premium in FY19 (company has infused
9,59,200 equity shares of INR10 each with premium of INR37.10 each
which is amounting to INR4.52 crore) coupled with reduction in debt
level due to redemption of optionally convertible preference shares
(OCPS) of INR3.52 crore in FY19.
Due to negative cash accruals total debt to gross cash accruals
stood weak and interest coverage ratio remained low at 1.06x in
FY19 on account of increase in interest cost due to interest on
OCPS in FY19.
Highly working capital intensive nature of operation: Operating
cycle of BMI improved to 83 days in FY19 (vis-à-vis 206 days in
FY18) on account of improved collection period. Though the
collection period is improved however it continued to remain
elongated to 230 days in FY19 vis-à-vis 335 days in FY18. In
absolute term, outstanding debtors have deteriorated from INR39.07
crore as on March 31, 2019 to INR34.88 crore as on March 31, 22018
due to increase in seasonal purchase by distributors from company
during end of the FY19.
However comfort can be drawn from the fact debtors outstanding as
on March 31, 2019, have been fully recovered as on date. Company in
its current business model offers credit period of 60-70 days to
its wholesale segment and 90 days to its ecommerce segment. Further
inventory continued to remain at moderate level at 45 days in FY19
(vis-à-vis 75 days in FY18) as company has to keep of inventory
readily available in its warehouse to meet the timely needs mainly
for ecommerce segment.
Further, the company avails credit period of around 90 days from
the suppliers. All these taken together leads to operating cycle of
83 days and the company has been utilizing its working capital
limits on an average of 100% for the twelve months ending December,
2019.
Weak Liquidity position: Liquidity position continued to remain
weak with weak current ratio of 1.01x and quick ratio of 0.93x as
on March 31, 2019 vis-à-vis current ratio of 1.00x and quick ratio
of 0.91x as on March 31, 2018. Further cash and bank balance of the
company also remained low at 0.15 crore as on March 31, 2019
vis-à-vis INR0.14 crore as on March 31, 2018. However the cash
flow from operating activity was positive at Rs 7.12 crore in
FY19.
Key Rating Strengths
Established track record of the promoter in the marketing of
premium brands in apparels though the licensing arrangement:
Company is promoted by Prestige Brands Limited and has a legacy of
more than 45 years in the development and marketing of designer
lifestyle products. The operations of BMI are managed by Mr. Vijay
Murjani having an experience of more than a decade in the
marketing, merchandising and retail development related to premium
brands. Further the promoters are resourceful and have been
supporting the operations by regular infusion of funds.
Established brand presence with wide geographical reach: Company
has added 6 distributors who distribute to 14 multi brand outlets
in India out of its total 14 distributors selling to 84 multi brand
outlets and added one e-commerce partner "Ajio" and one shop in
shop partner I.e. "Shoppers Stop" in addition to Myntra, Amazon and
Flipkart. However as per the old business model company still has
15 exclusive "French Connection" stores. Furthermore, the company
has increased its proportion of sales through distribution business
as well.
Incorporated in 2006, BMI Wholesale Trading Private Limited [BMI,
formerly known as MK Retail Private Limited] is promoted by
Prestige Brands Limited (a company wholly owned by New York based
Murjani Group). BMI is engaged in wholesale trading and marketing
of licensed products such as apparels and innerwear under the brand
'French Connection' in the Indian Territory wherein BMI has the
exclusive long term rights for "French Connection" [with contracts
being renewed for 10 years (renewed until 31 Dec 2027)]. The
company provides 5% of the net sales as royalty to French
Connection Group Plc. (FCUK). Furthermore, the merchandise is
sourced majorly from the domestic markets i.e. 97% and the balance
from United Kingdom.
BMI's has changed the business model through partial
discontinuation of retail segment since FY17 and engaged in
wholesale distribution of products through its 14 distributors who
distribute to more than 84 multi brand outlets in India, e-commerce
giants namely Myntra, Flipkart, Amazon and Ajio and one shop in
shop partner I.e. "Shoppers Stop". However as per the old business
Model Company still has 15 exclusive "French Connection" stores.
C-TEL INFOSYSTEMS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: C-Tel Infosystems Private Limited
Registered office:
DSM No. 361-362, Third Floor
DLF Towers, Shivaji Marg
New Delhi 110015
Corporate office:
Plot No. 63, 1st & 2nd Floor
Kavuri Hills, Phase-1
Near Jubilee Ridge Hotel
Madhapur, Hyderabad 500033
Insolvency Commencement Date: Janaury 23, 2020
Court: National Company Law Tribunal, New Delhi Bench V
Estimated date of closure of
insolvency resolution process: July 21, 2020
(180 days from commencement)
Insolvency professional: Shyam Arora
Interim Resolution
Professional: Shyam Arora
96, Aravali Apartment
Alaknanda, New Delhi
Delhi 110019
E-mail: cirpctel@gmail.com
Last date for
submission of claims: February 6, 2020
DEMBLA TIMBER: Ind-Ra Lowers Long Term Issuer Rating to 'D'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Dembla Timber
Company Private Limited's (DTCPL) Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is based on the best available information. Therefore, investors
and other users are advised to take appropriate caution while using
the rating.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based working capital limits (Long-term/Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR216.1 mil. Non-fund-based working capital limits due on
(Short-term) downgraded with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best-available information.
KEY RATING DRIVERS
The downgrade reflects DCTPL's overutilization of its cash credit
limit for over 30 consecutive days in the three months ended
January 2020.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months could
result in a rating upgrade.
COMPANY PROFILE
Incorporated in 2003, Dembla Timber Company purchases and processes
Malaysian timber wood, which is imported from Singapore and New
Zealand. The company imports logs and processes it based on
customer demand and specifications.
ESSEM18 CONSTRUCTION: CARE Assigns B+ Rating to INR10cr LT Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Essem18
Construction (E18C), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE B+; Stable Assigned
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of E18C are tempered by
small scale of operations, funding risk as the entire debt yet to
be tied up along with projection execution risk, saleability risk
with on-going projects and inherent risk associated with the real
estate industry. The rating, however, derives strength from long
track record and experience promoter for more than a decade in real
estate sector, financial risk profile marked by comfortable
profitability margins, capital structure and debt coverage
indicators and favorable project location.
Rating Sensitivities
Positive Factors
* Obtaining RERA registration for The Courtyard project
* Achieving financial closure with repayments linked with to the
construction progress
Negative Factors
* Delay in attaining envisaged sales and realizing potential
revenue may stretch the company's cash flow
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations
The scale of operations marked by the operating income has been
declined by 41.60% and stood small at INR20.07 crore as compared to
INR34.36 crore in FY18 due to limited revenue generation (advances
from customers and sales amount) from the projects executed during
the year. Further, the net worth base of the firm stood low at
INR10.80 crore as on March 31, 2019.
Funding risk as the entire debt yet to be tied up along with
project execution risk
The project cost of "The Courtyard" is INR28.93 crore, out of the
project cost INR10.00 crore is proposed to be funded by way of bank
loan. Since, the loan is not yet tied-up, funding risk related to
the same prevails.
'The Courtyard' project is residential building with construction
of 80 flats is currently under construction stage and expected to
complete by June, 2021. E18C has applied for the registration with
RERA and same is under the process. Around 18.53% of the total
project cost has incurred as on December 31, 2019. Major portion of
the project cost yet to be incurred which result in execution risk
for the project. Moreover, any significant time or cost overruns
could impact the firm's liquidity and profitability since
repayments of term loans are expected to commence from Q4FY21.
Furthermore, timely and adequate customer receipts will remain
crucial for completion of projects within envisaged timelines.
Saleability risk with on-going project
The construction of the said project is likely to get complete by
June 2021, which exposes the project to substantial saleability
risk. The project is in nascent stage of execution and yet to
register the booking or sales; any delay in attaining registration
from RERA and envisaged sales in realizing potential revenue may
stretch the company's cash flow.
Inherent risk associated with the real estate industry
The company is exposed to the inherent risk associated with the
real estate sector which has direct linkage with the general
macroeconomic scenario, interest rates and level of disposable
income available with individuals. In case of real estate
companies, the profitability is highly dependent on property
markets. A high interest rate scenario could discourage the
consumers from borrowing to finance the real estate purchases and
may depress the real estate market.
Key Rating Strengths
Long track record and experienced promoters for more than a decade
in real estate sector
Essem 18 Constructions (E18C) was incorporated as a partnership
firm in 2009 by Mr S M Venkatesh, Managing Partner, who is a
graduate in engineering from Bangalore University and by Mrs S
Vimala (Partner), graduate in arts. Mr S M Venkatesh has more than
a decade of experience in the real estate sector. He has completed
a total of 10 residential projects with developed area of 6.47 lsf,
under M/s Oasis Constructions, a firm co-founded by him. He has
also completed 3 residential projects under the firm E18C, namely
'Le Terrace', 'Ele Vana' and 'Poetree' with a total saleable area
of 2.76 lsf. Mr S M Venkatesh looks after the day-to-day operations
of the firm and is well supported by Mrs S Vimala who looks after
the administration, sales and marketing functions.
Financial risk profile marked by comfortable profitability margins,
capital structure and debt coverage indicators Profitability
margins has been increasing y-o-y for the review period due to
better margins associated with the execution of projects. On
account of same, the PBILDT margins stood comfortable at 24.82% in
FY19 as compared to 13.85% in FY18 and 13.48% in FY17. Further, the
PAT margin stood comfortable at 13.88% in FY19 as compared to 5.58%
in FY18 and 3.77% in FY17 due to decrease in finance cost on back
of repayment of term loan and coupled with absolute increase in the
amount of PBILDT.
The capital structure marked by the overall gearing ratio of 0.25x
as on March 31, 2019 as compared to 0.60x as on March 31, 2018 due
to repayment of term loan and coupled with increase in net worth on
back of accretion of profit. The debt profile of E18C consist of
vehicle loans of INR0.72 crore and unsecured loans from related
parties and other of INR1.98 crore as on March 31, 2019.
The debt coverage indicators marked by the interest coverage ratio
stood comfortable at 20.15x in FY19 as compared to 3.06x in FY18
due to decline in the finance cost on back of repayment of term
loan and coupled with absolute increase in PBILDT during the year.
Further, the total debt to GCA stood comfortable at 0.89x in FY19
as compared to 1.82x in FY18. The total debt to CFO stood
comfortable at 2.17x as on March 31, 2019 as compared to 0.84x as
on March 31, 2018 due to marginal decline in the net cash flow from
operations due to increase in inventory levels.
Favourable project site
The project is located in Sarjapur Road which is fast developing
part of Bangalore with good road connectivity to key IT clusters
areas like Whitefield, Electronic City, Outer ring road,
Marathahalli and Kormangala. The favourable project site aid the
firms to envisage the booking as projected to execute on the
project without any cost and time overrun.
Liquidity: Stretched
Liquidity profile of the company stood stretched with modest cash
and bank balances of INR1.76 crore as on March 31, 2019 and current
ratio stood above unity at 1.51x as on March 31, 2019.
Bangalore based, Essem 18 Construction (E18C) was established in
2009 as a partnership firm by Mr S M Venkatesh (Managing Partner)
and Mrs. S Vimala (Partner). The firm is engaged in real estate
development in Bangalore region. The firm is part of Essem18 group,
the group has over a decade long established track record of
operation in real estate development primarily in residential
segment. Since inception, the group has completed 3 residential
real estate projects with total saleable area of 2.76 lakh square
feet (lsf) in Bangalore under Essem18 Constructions (E18C) and 1
residential real estate project with total saleable area of 2.93
lsf in Bangalore under associated entity Essem 18 Developers
Private Limited. E18C is presently developing a residential project
by the name of The Courtyard in Junnasandra Village, Off Sarjapur
Road, Bangalore. The project consists of development of residential
3 floors apartment with 80 flats in 1.02 lakh square feet. The
project is in nascent stage of execution, under a joint
development, as the land owner share of 29 flats and balance 51
flats as developers share and the project is expected to be
completed by June 2021.
FIVE CORE: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Five Core Electronics Limited
Registered office address of Corporate Debtor:
WZ-15B Ground Floor
Uggarsain Market
Ashok Nagar
Delhi 110018
India
Insolvency Commencement Date: January 23, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
(180 days from commencement)
Insolvency professional: Ms. Veena Sharma
Interim Resolution
Professional: Ms. Veena Sharma
Balaji Tower
Flat No. C-503
Sector 30, Vashi
Navi Mumbai 400705
E-mail: vennayash@outlook.com
- and -
Legasis Partners
B9, Lower Ground Floor
Green Park Main
New Delhi 110016
E-mail: cirp.fivecoreelectronics@
gmail.com
Last date for
submission of claims: February 6, 2020
GEETASHREE PULSES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Geetashree Pulses'
(GP) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR100 mil. Fund-based working capital limits affirmed with
IND B+/Stable rating.
KEY RATING DRIVERS
The affirmation reflects GP's continued small scale of operations,
as reflected by the revenue of INR522.80 million in FY19 (FY18:
INR637.19 million). The revenue declined on volatility in demand
and poor market conditions.
The rating factors in GP's weak credit metrics. Despite an
improvement in absolute EBITDA, FY19's interest coverage (operating
EBITDA/gross interest expense) deteriorated slightly to 1.26x
(FY18: 1.35x) owing to higher interest costs, as a result of the
increase in debt. The firm's debt increased to INR181.80 million in
FY19 (FY18:149.19 million) to procure additional coriander seeds to
maintain the stock level. Net leverage (adjusted net debt/operating
EBITDAR) improved to 1.26x in FY19 (FY18: 1.35x) due to the
increase in debt and absolute EBITDA.
Liquidity Indicator – Poor: GP's average use of its fund-based
limits was 79.1% for the six months ended December 2019. The
working capital cycle elongated to 33 days in FY19 (FY18: 13 days)
due to an increase in inventory days to 209 days due to a lack of
coriander seeds demand. The creditor days also increased to 276
days in FY19 (FY18: 203 days). Cash flow from operations also
remained negative to INR30.93 million in FY19 (FY18: negative
INR50.49 million). As of March 2019, the company had a cash balance
of INR6.28 million (FYE18: INR9.43 million).
The rating, however, is supported by GP's healthy EBITDA margin,
which expanded to 10.46% in FY19 (FY18: 4.5%). The EBITDA expansion
was owing to improvement of absolute EBITDA, which increased to
INR48.32 million in FY19 (FY18: INR23.87 million). Its return on
capital employed stood at 19% in FY19 (FY18: 14%).
The rating also derives comfort from the proprietor's over 25 years
of experience in spice trading.
RATING SENSITIVITIES
Negative: Any deterioration in the revenue and operating
profitability, leading to deterioration in the liquidity position
and credit metrics, will be negative for the ratings.
Positive: A substantial improvement in the scale of operations and
profitability, along with an improvement in the liquidity and with
interest coverage increasing above 1.5x on a sustained basis will
be positive for the ratings.
COMPANY PROFILE
Incorporated in 2013, GP is a partnership firm primarily engaged in
the trading of coriander seeds. The firm's registered office is in
Kumbhraj, Madhya Pradesh. It is managed by Ram Kasat and his
family.
GUJARAT METALLIC: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Gujarat Metallic Coal & Coke Limited
Registered office address as per the MCA Records:
155, Lenin Sarani
4th Floor, Room No. 402
Kolkata West Bengal 700013
India
Insolvency Commencement Date: January 23, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
Insolvency professional: Kanchan Dutta
Interim Resolution
Professional: Kanchan Dutta
Chatterjee International Centre
14th Floor, Flat No. 13A
33A J.L. Nehru Road
Kolkata 700071
E-mail: kanchan@kgrs.in
kdutta.ip@gmail.com
Last date for
submission of claims: February 7, 2020
HAIL TEA: Insolvency Resolution Process Case Summary
----------------------------------------------------
Debtor: M/s Hail Tea Limited
Registered office:
160 Bangur Avenue
Block-B, 2nd Floor
Northern Side, Kolkata
West Bengal, Pin 700055
Insolvency Commencement Date: January 21, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: July 19, 2020
(180 days from commencement)
Insolvency professional: Sri Madhur Agarwal
Interim Resolution
Professional: Sri Madhur Agarwal
Flat 24, 8A Alipore Road
Kolkata 700027
E-mail: madhuragarwal75@gmail.com
- and -
C/o M.N. Mitra & Co.
Chartered Accountants
12/1/5, Monoharpukur Road
Kolkata 700026
E-mail: cirp.hailtea@gmail.com
Last date for
submission of claims: February 5, 2020
HOSPITECH MANAGEMENT: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Hospitech Management Consultants Private Limited
UG—6, World Trade Centre
Barakhamba Road
New Delhi 110001
Insolvency Commencement Date: January 27, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 25, 2020
Insolvency professional: Kumund Shekhar
Interim Resolution
Professional: Kumund Shekhar
D-54, Road No. 6 Street no. 4
Shyam Vihar Phase 1
Najafgarh, New Delhi 110043
E-mail: kumud.shekhar@gmail.com
- and -
1203, Vijaya Building
17, Barakhamba Road
Connaught Place
New Delhi 110001
E-mail: ip.hospitech@gmail.com
Last date for
submission of claims: February 10, 2020
JAGANNATH POLYPACKS: CRISIL Maintains C Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Jagannath Polypacks
Limited (Jagannath Polypacks) continues to be 'CRISIL C/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 4.5 CRISIL C (ISSUER NOT
COOPERATING)
Proposed Long Term 2.0 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with Jagannath Polypacks
for obtaining information through letters and emails dated June 29,
2019 and December 9, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Jagannath Polypacks, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Jagannath Polypacks is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL BB'
category or lower'.
Based on the last available information, the ratings on bank
facilities of Jagannath Polypacks continues to be 'CRISIL C/CRISIL
A4 Issuer not cooperating'.
Jagannath Polypacks, incorporated in in 2007, manufactures PP woven
sacks for the cement and fertilizer industries. Its promoters, the
Cuttack-based Mr. M K Subudhi and his family, have industry
experience of three decades. The company's manufacturing facility
at Jagatpur in Cuttack began commercial operations in March 2012.
JBS ENGINEERING: CRISIL Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of JBS Engineering Works
(JEW) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.7 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 1.42 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with JEW for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JEW, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JEW is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.
Based on the last available information, the ratings on bank
facilities of JEW continues to be 'CRISIL D Issuer not
cooperating'.
JBS Engineering Works (JEW) was set up in 2010 as a partnership
firm by Sharma and Banyal family. The firm is engaged in the
manufacturing of auto components parts for the Tier I vendors of
Hero Moto Corp and Mahindra and Mahindra. The partners of the firm
are Mr. D.S. Sharma, Mrs. Laxmi Sharma, Mr. Deepak Banyal, Mrs.
Suman Banyal and M/S India Micro Private Limited.
K BHUPAL: Ind-Ra Affirms BB+ Issuer Rating, Alters Outlook to Pos.
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised K Bhupal Engineers
and Contractors Private Limited's (K Bhupal) Outlook to Positive
from Stable while affirming its Long-Term Issuer Rating at 'IND
BB+'.
The instrument-wise rating actions are:
-- INR80 mil. (reduced from INR120 mil.) Fund-based working
capital limits affirmed; Outlook revised to Positive from
Stable with IND BB+/Positive rating;
-- INR200 mil. Non-fund-based limits affirmed with IND A4+
rating;
-- INR40 mil. Proposed fund-based working capital limits*
assigned with Provisional IND BB+/Positive rating; and
-- INR180 mil. Proposed Non-fund-based working capital limits*
assigned with a Provisional IND A4+ rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by K Bhupal to the satisfaction of Ind-Ra.
The Outlook revision reflects the orders to the tune of INR1,043.12
million and L1 orders worth INR2,766 million from the government of
Karnataka under the scheme of National Rural Drinking Water
Programme (NRDWP), which provides revenue visibility for the next
four years.
KEY RATING DRIVERS
The affirmation reflects the continued small scale of operations of
K Bhupal, as reflected by the revenue of INR608 million in FY19,
declined marginally from INR592 million, since the company
participated in only a few tenders during the year. Ind-Ra, thus,
expects the company's revenue to only marginally improve in FY20.
In November 2019, the unexecuted order book was around INR1,654.68
million which translates to 2.72x of the revenue achieved in FY19.
K Bhupal booked revenue of INR480 million for 1HFY20.
Moreover, K Bhupal's order book is geographically concentrated,
with the projects executed in and around Karnataka, Andhra Pradesh,
and Telangana.
The rating factor in K Bhupal's healthy EBITDA margin, which
improved to 8.9% in FY19 from 7.2% in FY18, due to the execution of
high-margin projects. The return on capital employed was 20% in
FY19 (FY18: 17%).
The ratings continue to be supported by the company's healthy
credit metrics, because of a comfortable networking capital cycle.
The net leverage (adjusted net debt/operating EBITDAR) was negative
2.6x in FY19 (FY18: negative 1.5x) and interest coverage (operating
EBITDA/gross interest expense) was 8.0x (7x). The marginal
improvement was due to an increase in absolute EBITDA.
Liquidity Indicator - Adequate: The company's cash conversion
cycle improved to negative 42 days in FY19 from negative 49 days in
FY18, on account of an improvement in the receivables and inventory
position coupled with an extended credit period from suppliers.
The average utilization of the cash credit limit was 14% during the
12 months ended in December 2019. Also, the company had credit
balances on most of the days in the last 12 months. Moreover, it
had cash and equivalents to the tune of INR153 million at FYE19.
The repayment obligation of the company stood at INR3.3 million for
FY20 which is likely to be met through internal accruals.
Also, K Bhupal's promoter has an experience of more than two
decades as a civil contractor.
RATING SENSITIVITIES
Positive: A substantial improvement in the revenue and stable
profitability and credit metrics on a sustained basis along with
progress and revenue generation from agreed and L1 orders in hand
could lead to a rating upgrade.
Negative: A decline in the revenue or margins resulting in
deterioration in the credit metrics and static order execution
could lead to a revision in the Outlook back to Stable.
COMPANY PROFILE
Established in 1993, K Bhupal converted itself into K Bhupal
Engineers and Contractors (P) Limited in September 2013 from a sole
proprietor firm. It is a Hyderabad-based company which undertakes
contracts for laying pipelines for drinking water and sewerage,
mainly under the National Rural Drinking Water Programme, in the
state of Andhra Pradesh, Telangana, and Karnataka.
KAYO ENTERPRISES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: M/s. Kayo Enterprises Private Limited
Hotel Samrat, 50-B
Kautilya Marg, Chanakyapuri
New Delhi 110021
India
Insolvency Commencement Date: January 21, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 19, 2020
Insolvency professional: Mr. Chander Shekhar
Interim Resolution
Professional: Mr. Chander Shekhar
839, West End Mall
District Centre
Janakpuri
New Delhi 110058
E-mail: ca.cssuneja@gmail.com
cirpkayoenterprises@gmail.com
Last date for
submission of claims: February 4, 2020
KEDARESHWAR FIBRES: CARE Withdraws B+, Stable Rating on Bank Loans
------------------------------------------------------------------
CARE has revised from CARE BB-; Stable to CARE B+; Stable and
withdrawn the outstanding rating of 'CARE B+; Stable assigned to
the bank facilities of Kedareshwar Fibres (KFS) with immediate
effect.
Detailed Rationale
The revision in the rating of Kedareshwar Fibres (KFS) continues to
remain constrained on account of decline in scale of operations in
FY19 (FY refers to the period from April 1 to March 31) along with
net loss.
The rating is, further, continues to remain constrained on account
of moderate profitability margins, moderate solvency and liquidity
position and its susceptibility of profitability to cotton price
fluctuation, changes in the government policy and presence in the
highly competitive and fragmented industry with limited value
addition.
The rating, however, continue to derive strength from the
experienced promoters in the cotton ginning industry with
established relations with customers and suppliers through group
concerns and proximity of its manufacturing facility to the cotton
growing areas of Gujarat.
Hence, CARE has revised from CARE BB-; Stable to CARE B+; Stable
and withdrawn the outstanding rating of 'CARE B+; Stable assigned
to the bank facilities of with immediate effect. The above action
has been taken at the request of KFS and 'No Objection Certificate'
received from the bank that has extended the facilities rated by
CARE.
Detailed description of the key rating drivers
Key Rating Weaknesses
Decline in scale of operations in FY19 along with net loss and
moderate profitability margins
During FY19, TOI of the firm has declined 8.34% over FY18 and stood
at INR51.01 crore mainly on account of lower sales realization from
ginned cotton and cotton seed although quantity sold was increased
from 83682.84 quintals in FY18 to 86617.58 quintals in FY19.
The PBILDT margin of the firm stood moderate at 2.30% in FY19
improved by 47 bps over FY18 mainly due to lower cost of trading
goods which offset to an extent by increase in cost of raw material
consumed. However due to loss occurred by fire during FY19, the
firm has registered net loss of INR0.25 crore in FY19 as against
net profit f INR0.19 crore.
Moderate solvency and liquidity position
The capital structure of the firm stood moderate at 1.48 times as
on March 31, 2019 however improved from 1.56 times as on March 31,
2018 mainly on account of repayment of term loan and lower
utilization of bank borrowings. The debt service coverage
indicators stood weak owing to cash loss during FY19 and interest
coverage stood at 1.69 times in FY19 deteriorated marginally as
against 1.77 times in FY18 mainly due to higher increase in
interest expenses than increase in PBILDT. The current ratio stood
moderate at 1.55 times as on March 31, 2019, however, quick ratio
stood below unity at 0.39 times as on March 31, 2019 mainly due to
maintenance of higher inventory of finished goods to meet the
customer demands. The operating cycle of the firm has deteriorated
from 60 days to 70 days in FY19.
Operating margins susceptible to cotton price fluctuation and
seasonality associated with the cotton industry
Prices of raw material i.e. raw cotton are highly volatile in
nature and depend upon various factors. Ginners usually have to
procure raw materials at significantly higher volume to bargain
bulk discount from suppliers. Furthermore, cotton being a seasonal
crop, the inventory levels of the entity generally remains high at
the end of the financial year. Thus, aggregate effect of both the
above factors results in exposure of ginners to price volatility
risk.
Presence in the lowest segment of the textile value chain and in a
highly fragmented cotton ginning industry
KFS operates in highly fragmented cotton ginning industry wherein
large numbers of un-organised players are also present, it has very
low bargaining power against both its customers as well as its
suppliers. This coupled with limited value addition in cotton
ginning process results in the firm operating at very thin
profitability (PAT) margins.
Key Rating Strengths
Experienced promoters in the cotton ginning industry and
established relations with customers and suppliers through group
companies Mr. Fulchand Laxmichand Goyal, partner, has around 35
years of experience in the cotton industry. He looks after overall
affairs of the firm. He is equally supported by other partners.
Being present in the industry since long period of time through
group companies, the management has established relationship with
the customers and suppliers.
Strategically located in the cotton growing region
Gujarat, Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh and
Tamil Nadu are the major cotton producer's states in India. The
plant of KFS is located in one of the cotton producing belt of
Nimbhora (Gujarat) in India. The presence of KFS in cotton
producing region results in benefit derived from lower logistics
expenditure (both on transportation and storage), easy availability
and procurement of raw materials at effective price.
Nimbhora (Gujarat) based Kedareshwar Fibers (KFS) was established
in 2008 by Sendhwa (Madhya Pradesh) based Goyal Family. KFS is
engaged in the business of cotton ginning & pressing along with
trading of agro-commodities (wheat, soyabeen and sugar). The
manufacturing facility of GCFPL is located at Nimbhora (Gujarat)
having installed capacity of 300 Bales Per Day (BPD). It procures
raw cotton directly from local mandis.
KRISHNA KNITWEAR: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Krishna Knitwear Technology Limited
Village Samarvani
Krishna Nagar, Silvassa
Dadra & Nagar Haveli 396230
India
Insolvency Commencement Date: January 13, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: 180 days from commencement
Insolvency professional: Mr. Brijendra Kumar Mishra
Interim Resolution
Professional: Mr. Brijendra Kumar Mishra
Flat No. 202, 2nd floor, Bhoj Bhavan
Plot No. 18-D, Shivuri
Sion-Trombay Road
Chembur (East), Mumbai City
Maharashtra 400071
Mobile: 9565444555
E-mail: mishrabk1959@gmail.com
- and -
LSI Financial Services Private Limited
710, 7th floor, Madhava
E Block, Bandra Kurla Complex
Bandra (E) Mumbai 400051
Mobile: 8017985805
E-mail: cirp.kktl@gmail.com
Last date for
submission of claims: February 13, 2020
LAKSHMI STEEL: CRISIL Lowers Rating on INR7.5cr Loan to B+
----------------------------------------------------------
CRISIL said the ratings on bank facilities of Lakshmi Steel Rolling
Mills - Mandi Gobindgarh (LSRM; part of the Kalsi group) was
revised to 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with LSRM for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LSRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LSRM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of LSRM Revised to 'CRISIL B+/Stable Issuer not
cooperating'.
KA, established in 2010, is a partnership firm based in Doraha,
Punjab. The firm manufactures mild steel ingots and its operations
are managed by Mr Gurmukh Singh and his family.
LSRM, set up in 1978, is a partnership firm based in Mandi
Gobindgarh, Punjab. The firm manufactures steel rounds. Its
operations are managed by Mr. Gurmukh Singh and his family.
LONDON STAR: CRISIL Maintains 'D' Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of London Star Diamond
Company India Private Limited (London Star) continues to be 'CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Post Shipment
Credit 23.65 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 14.35 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with London Star for
obtaining information through letters and emails dated June 29,
2019 and December 9, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of London Star, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on London
Star is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of London Star continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Set up in 1964 in Mumbai by the late Mr. S G Jhaveri, London Star
trades in polished diamonds. It is currently managed by Mr. Kamlesh
Jhaveri and his son, Mr. Rishabh Jhaveri.
LOTUS LANDMARKS: CRISIL Maintains 'B' Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Lotus Landmarks
(India) Private Limited (LLPL) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 8 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with LLPL for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LLPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LLPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of LLPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2007, LLPL undertakes residential real estate
development. The company is promoted by Mr. Satish Giri who is
based out of Amravati, Mumbai (Maharashtra). The company has
completed 19 projects in Pune and Amravati and its suburbs with
construction area of over 3 lakh square feet.
M R DIAMOND: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated M R Diamond's
(MRD) Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR140.0 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR40.0 mil. Long-term loans due on November 2023 migrated to
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 5, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2015 as a partnership firm in Surat, M R Diamond
manufactures cut and polished diamonds.
M. P. K. ISPAT: CRISIL Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of M. P. K. Ispat India
Private Limited (MPKI) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Standby Line of
Credit 1.5 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 6.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MPKI for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MPKI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MPKI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MPKI continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MPKI, MPK Metals Pvt Ltd (MPKM), and MPK
Steels India Pvt Ltd (MPKS). This is because the three companies,
together referred to as the MPK group, have common ownership and
management, and MPKM and MPKS have the same product profile and
sell under a common brand. MPKI has been set up in order to
backward integrate into billet manufacturing for supporting the
operations of the other two companies and has also received
corporate guarantees from them for its bank funding.
MPKS was set up as a private limited concern in 2005. It
manufactures structural products, including thermo-mechanically
treated (TMT) bars, channels, angles, and joints, at its
manufacturing facility in Jaipur. The company markets the products
under its own brand, MPK. The operations of the company are managed
by Mr. Santosh Kumar Upadhyay and his son, Mr. Manoj Upadhyay.
MPKM was set up as a private limited concern in 2009 and
manufactures structural products including TMT bars, channels,
angles, and joints at its manufacturing facility in Jaipur and
markets the same under its MPK brand. The operations of the company
are managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
MPKI was set up as a private limited concern in 2010 and started
operations in 2012-13 (refers to financial year, April 1 to March
31) with 2013-14 being its first full year of operations. The
company has been set up as a backward integration unit of the group
to manufacture steel billets and ingots for captive consumption in
MPKS and MPKM. The company has its plant in Bagru (Jaipur) and is
managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
M. P. K. METALS: CRISIL Maintains D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of M. P. K. Metals
Private Limited (MPKM) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.8 CRISIL D (ISSUER NOT
COOPERATING)
Standby Line 0.22 CRISIL D (ISSUER NOT
of Credit COOPERATING)
Term Loan .98 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MPKM for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MPKM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MPKM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MPKM continues to be 'CRISIL D Issuer not
cooperating'.
MPKS was set up as a private limited concern in 2005. It
manufactures structural products, including thermo-mechanically
treated (TMT) bars, channels, angles, and joints, at its
manufacturing facility in Jaipur. The company markets the products
under its own brand, MPK. The operations of the company are managed
by Mr. Santosh Kumar Upadhyay and his son, Mr. Manoj Upadhyay.
MPKM was set up as a private limited concern in 2009 and
manufactures structural products including TMT bars, channels,
angles, and joints at its manufacturing facility in Jaipur and
markets the same under its MPK brand. The operations of the company
are managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
MPKI was set up as a private limited concern in 2010 and started
operations in 2012-13 (refers to financial year, April 1 to March
31) with 2013-14 being its first full year of operations. The
company has been set up as a backward integration unit of the group
to manufacture steel billets and ingots for captive consumption in
MPKS and MPKM. The company has its plant in Bagru (Jaipur) and is
managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj Upadhyay.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MPKI, MPK Metals Pvt Ltd (MPKM), and MPK
Steels India Pvt Ltd (MPKM). This is because the three companies,
together referred to as the MPK group, have common ownership and
management, and MPKM and MPKM have the same product profile and
sell under a common brand. MPKI has been set up in order to
backward integrate into billet manufacturing for supporting the
operations of the other two companies and has also received
corporate guarantees from them for its bank funding.
M.R. OVERSEAS: CRISIL Maintains B+ Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of M.R. Overseas Private
Limited (MROPL) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 47 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MROPL for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MROPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MROPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MROPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
MROPL was originally set up as a partnership firm in 1996 by Mr
Nand Kumar Arora, Mr Rajesh Kumar Arora, Mr Sanjiv Kumar Arora, and
Mr Rohit Arora, and was reconstituted as a private limited company
in 1998. It processes basmati rice varieties (PUSA 1121, PUSA 1509,
traditional basmati, and blended rice) in the domestic and overseas
markets, and has milling and sorting capacity of 8 tonne per hour
(tph) and 6 tph, respectively. Its plant is in Delhi and has Hazard
Analysis and Critical Control Points (HACCP), ISO 9001:2001, and US
Food and Drug Administration (USFDA) certifications.
MAA AMBA: CRISIL Lowers Rating on INR19cr Loans to B+
-----------------------------------------------------
CRISIL has revised the ratings on bank facilities of Maa Amba
Towers Limited (MATL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.82 CRISIL B+/Stable (ISSUER
Bank Loan Facility NOT COOPERATING; Revised
from 'CRISIL BB+/Stable
ISSUER NOT COOPERATING')
Term Loan 16.18 CRISIL B+/Stable (ISSUER
NOT COOPERATING; Revised
from 'CRISIL BB+/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with MATL for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MATL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MATL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MATL Revised to 'CRISIL B+/Stable Issuer not
cooperating'.
MATL, incorporated in 2007, is promoted by Mr Rakesh Agarwal. The
company leases warehouses currently owning seven of them in
Dankuni.
MANIDHARI OILS: CRISIL Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Manidhari Oils
Private Limited (MOPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 4 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MOPL for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MOPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MOPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MOPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2012 by Mr. Ramit Jain is engaged in trading of
edible oils and has the same set of customers and suppliers as of
its group company Ritisha Oils Private Limited (ROPL).
MARIGOLD CONSTRUCTIONS: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Marigold
Constructions (MC) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 9.84 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term .16 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MC for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MC is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of MC continues to be 'CRISIL D Issuer not
cooperating'.
MC, set up by Mr. Bharat Prajapati and Mr. Bhavin Sheth in Mumbai,
is a real estate developer. It is developing Marigold Exotic, a
residential project with 30 units at Mulund in Mumbai.
MASCONS ENGINEERING: CRISIL Keeps D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Mascons Engineering &
Contracting Company Private Limited (MASCONS) continues to be
'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MASCONS for
obtaining information through letters and emails dated June 29,
2019 and December 9, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MASCONS, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on MASCONS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MASCONS continues to be 'CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Incorporated in 2004, in Chennai and promoted by Mr. Said Mohammed,
Mascons undertakes civil construction and real estate development.
MATHURA FIBERS: Ind-Ra Cuts LT Issuer Rating to B+, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Mathura Fibers &
Cotton Industries' (MFCI) Long-Term Issuer Rating to 'IND B+' from
'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR300 mil. Fund-based working capital limits downgraded with
IND B+/Stable/IND A4 rating.
The downgrade reflects the deterioration in MFCI's liquidity
profile in FY19, due to a longer-than-expected working capital
cycle and a fall in revenue, leading to the weakening of credit
metrics.
KEY RATING DRIVERS
Liquidity indicator – Poor: The average maximum utilization of
working capital limits was 100% for the 12 months ended in December
2019. There were several instances of over-utilization for 4-10
days over the six months ended 31 December 2019 due to interest
debited towards the month-end. The working capital cycle elongated
to 166 days in FY19 (FY18: 123 days), as the stock holding period
increased to 91 days (69 days) and receivables period increased to
92 days (71 days). However, the cash and cash equivalents improved
to INR1.45 million in FY19 (FY18:0.12 million). The cash flow from
operations turned positive at INR40.32 million in FY19 (FY18:
negative INR2.35 million) due to a decrease in receivables and
inventory to INR219.17 million and INR200.44 million,
respectively.
The ratings reflect MFCI's continued medium scale of operations, as
indicated by revenue of INR873 million in FY19 (FY18: INR1,271
million). The revenue fell due to a decrease in the volumes of
cotton production. MFCI booked revenue of INR396.85 million in
9MFY20. Ind-Ra expects the revenue growth to remain stable in FY20
on the back of a better monsoon and growth in production.
The rating factor in the weak credit metrics in FY19 due to high
debt levels. The net financial leverage (total adjusted net
debt/operating EBITDA) improved marginally to 9x in FY19 (FY18:
11.3x) on account of an increase in the operating EBITDA to
INR41.16 million (INR33.69 million). The gross interest coverage
operating (EBITDA/gross interest expense) improved to 1.1x in FY19
(FY18: 0.9x) owing to a decrease in interest expenses and the
increase in operating EBITDA.
The ratings take into consideration the modest EBITDA margins due
to the nature of the business. The margin rose to 4.7% in FY19
(FY18: 2.7%), primarily due to an increase in cotton bales
realizations, driven by a fall in cotton production and inventory
gains. The return on capital employed was 8% in FY19 (FY18: 6%).
Ind-Ra expects the EBITDA margins to remain at similar levels in
FY20 on the back of stable revenue growth.
The ratings continue to draw strength from the partners' experience
of more than three decades in cotton ginning and pressing.
RATING SENSITIVITIES
Negative: A decline in the top-line and EBITDA margins, leading to
sustained deterioration in the interest coverage below 1x, or
further stress on the liquidity position could be negative for the
ratings.
Positive: A rise in the top-line and EBITDA margins, leading to an
improvement in the credit metrics, on a sustained basis, or an
improvement in the liquidity position will be positive for the
ratings.
COMPANY PROFILE
Incorporated in 2013, MFCI is a partnership firm engaged in cotton
ginning and pressing to produce cotton bales and cotton seeds. It
has a manufacturing facility in Adilabad, Telangana, with a ginning
capacity of 2500 quintals per day and a capacity of 500 cotton
bales per day.
MAYA SAHA: CRISIL Maintains 'B-' Rating in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of Maya Saha (MSA)
continues to be 'CRISIL B-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MSA for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MSA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MSA is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of MSA continues to be 'CRISIL B-/Stable Issuer not
cooperating'.
Established in 2004, MSA is a partnership firm of Mr Souvik Saha,
Mr Tanmoy Saha, and Ms Maya Saha; operations are primarily managed
by Mr Souvik Saha. It is an authorised distributor for the brands
and varieties of United Spirits Ltd, United Breweries Ltd, Sula
Vineyards Pvt Ltd, and Allied Blenders Distillers for West Bengal.
MAYURI ELECTRONICS: CRISIL Cuts Rating on INR7.4cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Mayuri
Electronics Private Limited (MEPL) to 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.4 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Long Term Loan 0.1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
CRISIL has been consistently following up with MEPL for obtaining
information through letters and emails dated November 30, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MEPL Revised to 'CRISIL B+/Stable Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
MEPL, incorporated in 2012 does retailing of Samsung products
through its exclusive Samsung outlet 'Samsung plaza'. The day to
day operations of the company is managed by Mr. Anandh.
N.S.P. TEX: CRISIL Maintains 'B' Rating in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of N.S.P. Tex (NSP)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 9 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Export Packing 12.5 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING)
Rupee Term Loan 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with NSP for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NSP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NSP is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of NSP continues to be 'CRISIL B/Stable Issuer not
cooperating'.
NSP, based in Tirupur, Tamil Nadu, was established in 1989 and is
managed by Mr. P Kanagaraj. The firm manufactures and exports
readymade garments.
NARAYANADRI HOSPITALS: Ind-Ra Migrates D Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Narayanadri
Hospitals and Research Institute Private Limited's Long-Term Issuer
Rating to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR104.1 mil. Term loan (long-term) due on March 2022 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR19.5 mil. Fund-based working capital limits (long-term /
short-term) migrated to non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 21, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2010, Narayanadri Hospitals and Research Institute
is a 250-bed multi-specialty hospital, located in Tirupati, Andhra
Pradesh.
NATIONAL HOTELS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded National Hotels
Limited's (NHL) Long-Term Issuer Rating to 'IND D' from 'IND B+'.
The Outlook on the earlier rating was Stable.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based working capital facilities (Long-
term/short-term) downgraded with IND D rating; and
-- INR33.28 mil. (reduced from INR39.441 mil.) Term loan (Long-
term) due on April 2026 downgraded with an IND D rating.
KEY RATING DRIVERS
The downgrade reflects delays in interest servicing of the
overdraft (on reducing drawing power basis) by NHL during the six
months ended January 2020 owing to a tight liquidity position.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months could
be positive for the ratings.
COMPANY PROFILE
Incorporated in 2006, Gujarat-based NHL provides hospitality
services. It owns "The Ummed Hotel Jodhpur- Ummed Hotels Resorts &
Palaces" in Jodhpur. NHL is managed by Mr. Harshendra Pandya and
Mr. Ashwin Patel.
NEW SRI BALAJI: CRISIL Maintains B- Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of New Sri Balaji
Poultry Farm (NSBPF) continues to be 'CRISIL B-/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 1.78 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with NSBPF for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NSBPF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NSBPF is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NSBPF continues to be 'CRISIL B-/Stable Issuer not
cooperating'.
Established in 2008 as a proprietorship entity, Sri Balaji Poultry
Farm (SBPF) is engaged in the production of commercial eggs. The
firm is promoted by Mr.L.Kumar Goud and his family and has its
poultry farm situated at Shadnagar region of Andhra Pradesh.
Incorporated in the year 2012, New Sri Balaji Poultry Firm is
engaged in production of commercial eggs. The firm is promoted by
Ms.L.Hymavathi and is situated at Shadnagar region of Andhra
Pradesh.
NUTRI AGROVET: CRISIL Maintains 'B' Rating in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Nutri Agrovet (Nutri)
continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with Nutri for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Nutri, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Nutri is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Nutri continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Nutri, set up in 2013, manufactures poultry feed with capacity of
100 tonne per day. The firm has a manufacturing facility in Kanpur,
Uttar Pradesh. Nutri is a partnership firm with Mr. Ajay Tiwari,
Mr. Mohammad Imran, Mr. Jitendra Dixit, Mr. Mahanand Pathak and Mr.
Mohammad Naseem as partners.
OM SHAKTHI: CRISIL Maintains 'D' Rating in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of OM Shakthi Exports
(OM) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with OM for obtaining
information through letters and emails dated June 29, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of OM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on OM is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of OM continues to be 'CRISIL D Issuer not
cooperating'.
Set up in 2013, OM is a partnership firm of Mr. Gulhatty Shekhar
and Mr.Raghunath Babu. The firm is engaged in mining, processing
and exports of granite blocks, slabs and tiles.
P. B. ALLOYS: CRISIL Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of P. B. Alloys Private
Limited (PBAPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Foreign Letter 6 CRISIL B/Stable (ISSUER NOT
of Credit COOPERATING)
Proposed Long Term 0.2 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with PBAPL for obtaining
information through letters and emails dated
November 30, 2019 and December 9, 2019 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PBAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PBAPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PBAPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
PBAPL, incorporated in 2010, has its registered office in Agra. The
company started trading in metal scrap and ingots in fiscal 2017.
From May 2017, it also started trading in polyurethane (PU)
chemicals.
PARAMOUNT CONDUCTORS: CRISIL Keeps 'D' Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Paramount Conductors
Limited (PCL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 6 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 4.25 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan .75 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PCL for obtaining
information through letters and emails dated November 30, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PCL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PCL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of PCL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Furthermore, the company has not paid the fee for conducting rating
surveillance as agreed to in the rating agreement.
Incorporated in 1971 and promoted by Mr. G K Tapadia and his
family, PCL manufactures winding wires (aluminium and copper),
coils (high tension and low tension), and machines for
manufacturing coils (testing machines and motor rewinding). Units
are in Nagpur and Goa.
PITTI CASTINGS: Ind-Ra Raises Issuer Rating to B-, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has upgraded Pitti Castings Pvt
Ltd's (PCPL) Long-Term Issuer Rating to 'IND B-' from 'IND D
(ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR300 mil. Proposed fund-based working capital limits*
assigned with Provisional IND B-/ Stable/Provisional IND A4
rating;
-- INR200 mil. Fund-based working capital limit withdrawn (repaid
in full);
-- INR845.5 mil. Term loan limit due on March 2023 withdrawn
(repaid in full); and
-- INR100 mil. Non-fund-based working capital limit withdrawn
(repaid in full).
*The rating is provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above facility
by PCPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The upgrade reflects the repayment of the entire debt by the
company in September 2019 through a one-time settlement of INR550
million.
Liquidity Indicator- Poor: Post the closure of the bank limits, the
company does not have any working capital facilities, although it
plans to avail the same to meet its working capital requirements.
The company's cash flow from operation deteriorated to INR199
million in FY19 (FY18: INR253 million) due to an EBITDA loss.
The rating factor in PCPL's weak credit profile, as the company
continued making EBITDA losses in FY19 (FY19: negative INR71
million; FY18: negative INR29 million). The EBITDA loss was due to
PCPL's inability to pass on high raw material prices to
end-customers, as well as high fixed overheads such as employee
expenses and factory rent, where the company was operating at a
sub-optimal level owing to lower order inflow.
The ratings also reflect PCPL's continued small scale of
operations. Its revenue surged 65.9% YoY in FY19 to INR1,082
million, due to an increase in order inflows. Its capacity
utilization increased to 37% in FY19 (FY18: 24%). PCPL receives 60%
of its revenue from its group company Pitti Engineering Limited.
The ratings, however, derive support from an improvement in PCPL's
working capital cycle to 14 days in FY19 (FY18: 41 days), due to an
improvement in inventory holding days to 74 days (126 days). As the
company has closed all its bank facilities, it now purely depends
on internal funding as well as customer advances from the group
company (Pitti Engineering Limited) for meeting its working capital
requirements.
The ratings are further supported by the Pitti Group and the
promoters' three-decade-long experience in the line of business.
RATING SENSITIVITIES
Negative: The inability to improve the operating profitability and
further stress in the liquidity will be negative for the ratings.
Positive: Ability to improve the operating profitability, while
maintaining the revenue leading to an interest coverage ratio of
1.0x will be positive for the ratings.
COMPANY PROFILE
Established in August 2012, PCPL is a part of the Pitti group of
companies. It manufactures graded iron and steel castings, which
are used in various industries such as windmill, earth-moving
equipment, and vehicle.
POOJA SPONGE: CRISIL Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Pooja Sponge Private
Limited (PSPL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 4 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 7 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PSPL for obtaining
information through letters and emails dated November 30, 2019 and
December 9, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PSPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PSPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
PSPL was incorporated in 2002 in Rourkela and was initially
promoted by the Odisha-based Gupta family. The company was acquired
in 2006 by the Agarwal family. PSPL manufactures sponge iron at its
facility in Rourkela (kiln capacity of 200 tonne per day) and also
trades in steel flat and long products. Operations are managed by
director, Mr. Kavit Agarwal.
QUICKDEL LOGISTICS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Quickdel Logistics Private Limited
Registered office:
Shop No. 1, 1st Floor
Nambardar Market
Sukhrali Gurgaon
HR 122022
1101, 11th Floor
Spaze I Tech Park, Tower A-2
Shona Road, Sector 49
Gurgaon, HR 122103
Plot No. 31, Udyog Vihar
Sector-18, Gurgaon 122015
Haryana
Insolvency Commencement Date: January 28, 2020
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: July 26, 2020
(180 days from commencement)
Insolvency professional: Mr. Somnath Gupta
Interim Resolution
Professional: Mr. Somnath Gupta
1019, Lane No. 1
Ramsharnam Colony
Pathankot, Punjab 145001
E-mail: somgupta_62@rediffmail.com
cirpl.qlpl@gmail.com
Last date for
submission of claims: February 11, 2020
RAJ RAYON: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: M/s. Raj Rayon Industries Limited
Survey No. 177/1/3
Village Surangi Silvassa
DN 396230
India
Insolvency Commencement Date: January 23, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
(180 days from commencement)
Insolvency professional: Mr. Abhishek Nagori
Interim Resolution
Professional: Mr. Abhishek Nagori
330/348, Third Floor, Tower-A
Atlantis-K-10, Opp. Vadorada Central
Sarabhai Main Road
Vadorada 390023
Gujarat-India
E-mail: cirp.rril@ddip.in
jlnusb@gmail.com
Last date for
submission of claims: February 6, 2020
RAMNATH DEVELOPERS: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Ramnath Developers Private Limited
Aaraji No. 509, Civil Lines I/F
Jila Parishad Bhawan
Sadar Road Jhansi
UP 284001
Insolvency Commencement Date: January 23, 2020
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: July 21, 2020
(180 days from commencement)
Insolvency professional: Mr. Ganga Ram Agarwal
Interim Resolution
Professional: Mr. Ganga Ram Agarwal
14254, A T S One Hamlet
Sector 104, Noida
Gautam Buddha Nagar
Uttar Pradesh 201301
E-mail: agarwal_gra@yahoo.co.in
- and -
E-10A, Kailash Colony
GK-1, New Delhi 110048
E-ail: ramnathdevelopers@aaainsolvecy.com
Classes of creditors: Homebuyers (Real Estate Investors)
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Arvind Kumar Mittal
Mr. Pawan Kumar Garg
Mr. Brij Nandan Kalra
Last date for
submission of claims: February 6, 2020
RBR GARMENTS: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated RBR Garments
Private Limited's (RBR) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR430 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING) /
IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 20, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1987 as a partnership firm and later converted into
a private company in 2005, Tirupur-based RBR manufactures knitted
garments and exports them to the United States and Europe. The
company has in-house facilities for knitting, dyeing, printing,
embroidery, and washing.
RELIANCE INFRASTRUCTURE: CARE Reaffirms 'D' INR1654.3cr Loan Rating
-------------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Reliance Infrastructure Limited (RInfra), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 1654.38 CARE D; ISSUER NOT COOPERATING
Long Term- Reaffirmed
Term Loan
Fund-based– 600.00 CARE D; ISSUER NOT
COOPERATING
Short Term- Reaffirmed
Term Loan
Non-Convertible 295.00 CARE D; ISSUER NOT COOPERATING
Debentures Revised from CARE C
Non-Convertible 600.00 CARE D; ISSUER NOT COOPERATING
Debentures Revised from CARE C
The revision in the rating assigned to the instruments of RInfra
takes into account delay in payment of interest/redemption on the
Non-Convertible Debentures (NCDs) issue as informed by the
Debenture Trustee. Further, CARE had, vide its press release dated
January 9, 2019, placed the rating of RInfra under the 'Issuer
NonCooperating' category as RInfra had failed to provide
information for monitoring of the rating. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
User of this rating (including investors, lenders and public at
large) are hence requested to exercise caution while using the
above rating(s).
Detailed Rationale & Key Rating Drivers
Key Rating Weaknesses
Delays in debt servicing obligations
The revision in the ratings assigned to bank facilities takes in to
account ongoing delays in debt servicing. Further, there is delay
in payment of interest/redemption on the Non-Convertible Debentures
(NCDs) issue as informed by the Debenture Trustee.
Reliance Infrastructure Limited (R-Infra) is the flagship company
of the Reliance ADAG (controlled by Mr. Anil D Ambani). Reliance
Infrastructure Ltd. is into developing projects through various
Special Purpose Vehicles (SPVs) in sectors such as Power, Roads and
Metro Rail in the Infrastructure space and the Defense sector.
R-Infra through its SPV/Associates has presence in the power
businesses. Also, R-Infra Ltd through its SPVs has executed a
portfolio of infrastructure projects such as a metro rail project
in Mumbai on build, own, operate and transfer (BOOT) basis; eleven
road projects with total length of about 1,000 km on build, operate
and transfer (BOT) basis. Reliance Infrastructure Ltd. also
provides Engineering, Procurement and Construction (EPC) services
for developing power and road projects.
RUKMANI RETAILS: CARE Lowers Rating on INR4.50cr Loan to 'B'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Rukmani Retails Private Limited (RRPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE B+; Stable "on the basis
of best available information"
Long-term/Short- 5.50 CARE B; Stable/CARE A4;
term Bank ISSUER NOT COOPERATING;
Facilities Revised from CARE B+;
Stable/CARE A4 "on the basis
of best available information"
Detailed Rationale & Key rating Drivers
CARE has been seeking information from RRPL to monitor the ratings
vide e-mail communications dated October 10, 2019, November 27,
2019, December 27 2019 and January 9, 2020 and numerous phone
calls. However, despite our repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, RRPL has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on RRPL
bank facilities will now be denoted as CARE B; Stable/CARE A4
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the ratings of RRPL takes into account
deterioration of its solvency position. The ratings are, further,
continue to remain constrained on account of its modest scale of
operations with moderate profitability margins, stretched liquidity
position, raw material price fluctuation risk with intense
competition in the industry due to low entry barriers.
The ratings, however, continue to favorably take into account the
experienced promoters.
Detailed description of the key rating drivers
At the time of last rating on November 30, 2018, the following were
the rating strengths and weaknesses (Updated for the information
available of FY19 from MCA site).
Key Rating Weakness
Moderate profitability margins
The profitability margins of the company stood moderate marked by
PBILDT and PAT margin of 10.44% and 1.65% respectively in FY19 as
against 11.65% and 0.79% respectively in FY18. PBILDT margin of the
company has dipped by 120 bps over FY18 mainly on account of
increase in cost of material consumed. However, PAT margin improved
by 86 bps in FY19 over FY18 due to lower interest charges.
Furthermore, gross cash accruals of the company stood thin at
INR0.89 crore in FY19.
Stretched liquidity position
The business of the company is working capital intensive marked by
elongated operating cycle of 159 days in FY19, improved from 223
days in FY18 owing to decline in collection and inventory period.
The liquidity ratios stood moderate with current and quick ratio of
1.64 and 0.69 times as on March 31, 2019 respectively. Cash flow
from operating activities stood negative at INR3.94 crore in FY19
as against negative value of INR1.10 crore in FY18.
Raw material price fluctuation risk with intense competition in the
industry due to low entry barriers
The main raw material of the company is plastic i.e. High-density
polyethylene (HDPE). The prices of the same are dependent on crude
oil prices which are highly volatile. With the cost of raw
materials accounting for significant portion (73%) of the total
production cost, the profitability margins of the company could get
adversely affected with any sudden spurt in the material prices.
RRPL operates in a highly fragmented industry marked by the
presence of a large number of players in the organized as well as
unorganized sector. The industry is characterized by low entry
barriers due to low technological inputs and easy availability of
standardized machinery for the production. This further leads to
high competition among the various players and low bargaining power
with suppliers.
Leveraged Capital Structure
The capital structure of the company stood leveraged with an
overall gearing of 2.26 times as on March 31, 2019, deteriorated
marginally from 0.38 times as on March 31, 2018 due to disbursement
of term loan and higher utilization of working capital borrowings
as on Balance Sheet date. Further, debt service coverage indicators
of RRPL stood moderate with total debt to GCA of 11.31 times as on
March 31, 2019, deteriorated significantly from 3.75 times as on
March 31, 2018 mainly on account of higher increase total debt
level viz-a-viz GCA level. Also, the interest coverage ratio stood
moderate at 1.83 times in FY19.
Key Rating Strengths
Experienced promoters and group support
The overall affairs of RRPL are looked after by Mr. Rakesh
Khandelwal, Director, who is LLB by qualification and has more than
two decade of experience in the industry. He is, further, supported
by other director, Mr Shubham Khandelwal, MBA by qualification and
looks after the marketing department of the company. The directors
are supported by a team of qualified and experienced employees
which help in smooth functioning of the company.
Further, the promoters have also promoted Rukmani Agro
Infrastructure and Cluster Steel Private Limited which are engaged
in the business of warehousing and trading of steel respectively.
Increase in Total Operating Income (TOI) in FY19 During FY19, TOI
witnessed a significant growth of 126.35% over FY18 and remained
moderate at Rs 22.33 crore.
Indore (Madhya Pradesh) based Rukmani Retails Private Limited
(RRPL) was incorporated in the year 2006 by Khandelwal family under
the name of Rukmani Engineering Private Limited. Subsequently, the
name of the company was changed to RRPL during November, 2007.
Earlier, the company was engaged in the trading of pipes and
fittings and from FY17 onwards, RRPL commenced manufacturing of
Water Storage Tanks and other PVC pipes which finds its application
in various industries for different purposes such as storing
chemicals, water, liquid etc.
S.R.K. CHEMICALS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: S.R.K. Chemicals Limited
Neelkanth B B Z S 60
Zandachowk
Gandhidham 470201
- and -
Neelkanth B B Z S 60
Zanda GJ 000000
IN
Insolvency Commencement Date: November 27, 2019
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 23, 2020
Insolvency professional: Sunit Jagdishchandra Shah
Interim Resolution
Professional: Sunit Jagdishchandra Shah
303, 3rd Floor, Abhijeet-1
Opp. Bhuj Mercantile Bank
Mithakhali Six Roads
Navrangpura, Ahmedabad 6
E-mail: sunit78@gmail.com
cirp.srkcl@gmail.com
Last date for
submission of claims: February 8, 2020
SAFETEC HEALTHCARE: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Safetec Healthcare & Hygiene Private Limited
202/203, Span Landmark
Andheri Road, East Mumbai
MH 400093
IN
Insolvency Commencement Date: January 24, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: July 22, 2020
(180 days from commencement)
Insolvency professional: Miss Nayana Premji Savala
Interim Resolution
Professional: Miss Nayana Premji Savala
1/101-A, Vishal Susheel CHS
Nariman Point, Vile Parle East
Mumbai 400057
E-mail: nalinisavala@gmail.com
Last date for
submission of claims: February 12, 2020
SAKTHI CONSTRUCTIONS: CARE Assigns B+ Rating to INR4cr Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sakthi
Constructions (SC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 4.00 CARE B+; Stable Assigned
Short-term Bank
Facilities 8.00 CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SC is primarily
tempered small scale of operations attributed by tender driven
nature of business coupled with intense competition from other
players, partnership nature of constitution with inherent risk of
withdrawal of capital, and susceptibility of profit margins due to
Volatility in input prices.
However, the rating derives comfort Long track record of operations
with extensive experience of the partners, comfortable capital
structure and satisfactory debt coverage indicators, moderate
operating cycle, healthy order book position, and satisfactory
profitability margins.
Key rating Sensitivities
Positive Factors
* Improvement in its profitability margins and capital structure
i.e. PBILDT margin, and maintaining/improvement of overall gearing
ratio.
* Increasing the cash accruals significantly and/or reducing the
debt levels to reduce Total debt to gross cash accruals on
sustained basis.
Negative Factors
* Decline in the total operating income in sustained basis
* Bidding of fresh orders and delay in execution of the same will
remain crucial for the overall financial risk profile of the firm.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations attributed by tender driven nature of
business coupled with intense competition from other players The
scale of operations of the firm remains small marked by its total
operating income, at INR19.73 crore in FY19 (prov), and is in
fluctuating trend. It has been declined by 58.95% from INR48.07
crore, due to low execution of orders. Further, the firm has low
networth base at INR6.25 crore as on March 31, 2019 (Prov). The
small scale of operations limits the firm's financial flexibility
in times of stress and deprives it from scale benefits. Further,
the firm has achieved turnover of INR15.00 Crores as on October 15,
2019. The business prospects of SC are highly dependent on the
government tenders and the business volume remains volatile
depending upon the extent of government tenders floated during the
year. Further, the civil construction industry is highly fragmented
in nature with presence of large number of unorganized players at
regional level and thereby creating intense competition within the
players.
Partnership nature of constitution with inherent risk of withdrawal
of capital
Constitution as a partnership has the inherent risk and possibility
of withdrawal of capital at a time of personal contingency which
can adversely affect the capital structure of the firm.
Furthermore, partnerships have restricted access to external
borrowings as credit worthiness of the partners would be a key
factor affecting the credit decision of lenders.
Susceptibility of profit margins due to Volatility in input prices
The major input materials for the firm are steel, sand, blue
metals, cement and bricks, the prices of which are volatile.
Further the orders executed by the firm does not contain price
escalation clause and thus the firm remains exposed to the price
volatility of the input materials. This apart, any increase in
labour prices will also impact its profitability being present in a
highly labour intensive industry.
Key Rating Strengths
Long track record of operations with extensive experience of the
partners
SC is operating since 2009 and hence, the firm has track record of
operations for about a decade. Mr. S. Thirunavukarasu and Mrs. T.
Sangeetha Priya are the partners of the firm. Mr. S.
Thirunavukarasu, aged 47 years, is the managing partner of the firm
having more than two decades of experience in this industry. Due to
long presence of the firm, the promoter is able to bag the repeated
orders from its customers and maintaining healthy relationship with
its suppliers.
Comfortable capital structure and satisfactory debt coverage
indicators
SC's capital structure, stood comfortable marked by its overall
gearing level and debt equity ratios, at 0.31x and 0.30x
respectively as on March 31, 2019 (Prov.) improved from 1.43x and
0.95x respectively as on March 31, 2018 mainly on account of lower
utilization of working capital utilization levels as on balance
sheet date, scheduled repayments of vehicle/equipment loans, and
infusion of funds of INR2.02Crore to the capital account by the
partners. With decrease in debt levels coupled with sufficient cash
accruals earned, the debt coverage indicators of the firm improved,
compared to the previous year and stood satisfactory marked by its
TD/GCA at 0.95x in FY19 (Prov.) as against 1.52x in FY18. The
interest service coverage ratio also stood comfortable at 3.36x in
FY19, and improved from previous year (9.52x) in FY18 due to
increase in interest and finance costs coupled with low PBILDT
earned.
Moderate operating cycle
The operating cycle of the firm stood satisfactory during the
review period on account of satisfactory collection and creditor's
period. The firm usually receives payment within 30 days from the
date the invoice raised. It avails credit period of 30 days from
its suppliers. The firm accounting its revenue on realization of
bills raised and it normally gets payment from the respective
department within 30 days from the date of raising the bill. The
average utilization of working capital facility stood at 70% for
the last twelve months ended September 30, 2019.
Healthy order book position
SC has an outstanding order book to sales ratio of ~ 4.30x of FY19
TOI as on October 15, 2019 which is to be executed over the period
of 6-12 months providing short term revenue visibility. The timely
execution of these projects and strengthening its order book will
remain crucial for the overall financial risk profile of the firm.
Satisfactory profitability margins
The profitability margins of the firm are fluctuating in trend,
ranging between 7.48%-14.56% as the TOI has also shown fluctuations
year on year. However, the same has been improved in FY19 (Prov.)
on account of execution of high margin orders. Also the major
operating expenses are being absorbed by material purchases, labour
charges and other overhead expenses for execution of work orders.
Notably, it is tender based business and in order to bid for the
orders, the firm has to be lenient in fixing price margins.
Furthermore, PAT margin stood satisfactory, however, fluctuated in
the range of 5.59% to 8.51% during review period. With increase in
PBILDT Margin, PAT margin has also improved by 522 bps in FY19
(Prov), and stood at 8.51%, though the interest and finance costs
increased compare to previous year.
Liquidity Analysis- Adequate
Adequate liquidity characterized by sufficient cushion in accruals
viz-a-viz repayment obligations and moderate cash balance of
INR0.20Crore. Its bank limits are utilized to the extent of 50% and
has sought enhancement in bank lines, supported by the above unity
current ratio which stood at 3.71x as on March 31, 2019 (prov).
Sakthi Constructions (SC), is a partnership firm, was established
in the year 2009 promoted by Mr. S. Thirunavukarasu and his wife,
Mrs. T Sangeetha Priya. Base in Erode, the firm is engaged into
execution of bridge and irrigation works for state Government. The
day to day operations are managed by the Mr. S. Thirunavukarasu. SC
registered as 'Class A' contractor with public work departments,
Tamil Nadu. The firm receives the work orders from state Government
by participating in the tenders. Further it purchases raw materials
like sand, cement, iron and bricks from the local suppliers, for
the execution of orders.
SANTOSH W/O: CRISIL Lowers Rating on INR7.85cr Term Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Santosh W/O Sh. Vinod Kumar Warehouse (SVKW) to 'CRISIL D' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 7.85 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delays by SVKW in serving instalments on the
term loan it availed of; the deferrals were due to poor liquidity.
The rating also factors in SVKW's modest scale of operations, and
customer concentration in revenue. These weaknesses are partially
offset by assured revenue flow, backed by long-term lease contract,
reputed lessees, and the extensive experience of the proprietor in
the agricultural industry.
Analytical Approach
Unsecured loan (Rs 107.25 lakh as on March 31, 2019) extended to
SVKW by the proprietor has been treated as neither debt nor equity.
That is because this interest free loan is expected to remain in
the business till the end of the 10-year lease agreement with
Haryana State Co-operative Supply and Marketing Federation Ltd
(HAFED).
Key Rating Drivers & Detailed Description
Weaknesses
* Delays in meeting term debt obligation
SVKW has deferred in servicing term loan instalments for the four
months through December 2019 because of poor liquidity.
* Modest scale of operations
Scale has been small, reflected in revenue of Rs 1.44 crore in
fiscal 2019, with a fixed monthly rental income. This trend may
continue over the medium term, given the current outstanding lease
contract, unless SVKW expands its capacity with addition of new
warehouses capable of generating higher rentals.
* Customer concentration in revenue
Leasing its warehouse to a sole customer, HAFED, makes SVKW's
revenue susceptible to risks such as premature termination of
contract, and the vulnerability to the socio-economic conditions
prevalent in the client's city, state, and the local government
policies. With no diversification plans over the medium term, risks
of high customer concentration may persist.
Strengths
* Assured revenue backed by long-term lease contract and reputed
lessees
SVKW, in 2015, entered into a 10-year lease agreement with HAFED
for storage of wheat, paddy, and other agricultural products. This
agreement provides the firm an assured revenue stream in the form
of monthly rental income.
* Extensive experience of the proprietor
Benefits from the proprietor's extensive experience of over 36
years, his strong understanding of local market dynamics, and
healthy relations with suppliers and customers should continue to
support the business. Thus, the firm could bag the long-term lease
contract with HAFED that assures steady revenue for the medium
term.
Liquidity Poor
Poor liquidity is evident from delays in meeting term loan
obligation. Also, current ratio was very low at 0.41 time as on
March 31, 2019.
Rating sensitivity factors
Upward Factors
*Track record of timely debt servicing for at least 90 days
*Prudent working capital management and strong liquidity.
SVKW was set up in 2014 by the proprietor, Mr Santosh Jhajhria. The
firm has constructed a 35,000-tonne warehouse in Fatehabad,
Haryana. SVKW has signed a 10-year lease agreement with HAFED to
store agricultural products in the warehouse. The firm is promoted
by Ms Santosh Jhajhria, while the day-to-day operations are managed
by their son, Mr Udayvir Jhajhria.
SGR EXIM: Ind-Ra Corrects July 22, 2019 Ratings Release
-------------------------------------------------------
India Ratings and Research (Ind-Ra) rectified a rating release on
SGR Exim Private Limited (SGR Exim) published on July 22, 2019, to
correctly state the rating in the headline.
The amended release is as follows:
India Ratings and Research (Ind-Ra) has downgraded SGR Exim Private
Limited (SGR Exim) Long-Term Issuer Rating to 'IND C (ISSUER NOT
COOPERATING)' from 'IND B- (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND C (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR32 mil. Fund-based limits downgraded with IND C (ISSUER NOT
COOPERATING) rating; and
-- INR86 mil. Non-fund-based limits affirmed with IND A4 (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade reflects SGR Exim's delays in debt servicing during
the last three months ended June 2019. The instruments on which the
company defaulted are not rated by Ind-Ra.
COMPANY PROFILE
SGR Exim, incorporated in December 2014, is engaged in trading of
agricultural products such as rice, wheat, red lentil, and green
gram.
SHETTY-PATIL DEVELOPERS: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: M/s. Shetty-Patil Developers LLP
Wanawadi SN-61/62/63
Oxford Village, Phase II
Pune 411040
Insolvency Commencement Date: January 20, 2020
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: July 18, 2020
(180 days from commencement)
Insolvency professional: Laxman Digambar Pawar
Interim Resolution
Professional: Laxman Digambar Pawar
Flat No. 16, First Floor
Bhakti Complex
Behind Dr. Ambedkar Statue
Pimpri, Pune 411018
Mobile: 9921516368
9422327957
E-mail: cmapawar1@gmail.com
Last date for
submission of claims: February 7, 2020
SILON GRANITO: CARE Lowers Rating on INR28.70cr Loan to 'D'
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CARE Ratings revised the ratings on certain bank facilities of
Silon Granito LLP (SGL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 28.70 CARE D Revised from CARE B+;
Facilities Stable
Short-term Bank
Facilities 2.50 CARE D Revised from CARE A4
Detailed rationale
The revision in the ratings assigned to the bank facilities of SGL
is primarily due to irregularity in servicing its debt obligations
owing to poor liquidity position.
Key rating sensitivity
Positive
* Establishing clear repayment track record for consecutive three
months
Detailed description of the key rating drivers
Key Rating Weaknesses
On-going delay in debt servicing
There is an irregularity in servicing of debt obligation due to
poor liquidity position of the firm.
Liquidity Analysis:
Poor Liquidity
Liquidity remained poor marked by cash loss reported in FY19 of
INR0.96 crore as against debt obligation of INR4.14 crore of FY20.
Net Cash flow from operating activities has remained negative at
INR8.54 crore during FY19 which was mainly due to blockage of funds
into inventories and receivables. Further, As on March 31, 2019,
cash and bank balance was low at INR0.25 crore. Further working
capital utilization remained at full for past twelve months ended
December 2019.
Morbi (Gujarat) based SGL was established in October 2017 as a
Limited Liability Partnership, promoted by Mr Vinod kumar Nakrani
and Mr. Vasantlal Dethariya with other thirteen partners. SGL is
operating from its sole manufacturing unit located at Morbi
(Gujarat) for manufacturing of ceramic vitrified tiles with
installed capacity of 9000 boxes per day with the size of 600 mm X
600 mm and 600 mm X 1200 mm as on March 31, 2019. SGL has commenced
commercial production from October 2018 onwards.
The promoters of the company have long experience in the ceramic
industry through their association with five associate entities.
These associate concerns are mainly engaged into manufacturing of
wall tiles, roofing tiles, and ceramic vitrified tiles.
TAURUS HIDES: Insolvency Resolution Process Case Summary
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Debtor: Taurus Hides Private Limited
No. 808/4B, Old Thiruthani Road
Vannivedu Village
Walajapet Vellore
TN 632513
IN
Insolvency Commencement Date: January 20, 2020
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: July 18, 2020
Insolvency professional: M. Raguram
Interim Resolution
Professional: M. Raguram
B-9, Abhinayam 1
Sakthi Nagar 2nd Avenue
Nolambur, Chennai 600095
E-mail: adiyensaranagathi@gmail.com
Last date for
submission of claims: February 3, 2020
TRIKAAL LEASING: CARE Maintains B+(FD) Rating in Not Cooperating
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CARE Ratings said the rating for the bank facilities of Trikaal
Leasing and Finance Limited (TLFL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Medium Term 2.87 CARE B+(FD); ISSUER NOT
Instruments– COOPERATING; Based on best
Fixed Deposit Available information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 13, 2018, placed the
rating(s) of TLFL under the 'issuer non-cooperating' category as
Trikaal Leasing and Finance Limited had failed to provide
information for monitoring of the rating. Trikaal Leasing and
Finance Limited continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated December 2, 2019. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on August 13, 2018 the following were
the rating strengths and weaknesses (updated for the FY19 audited
annual report available from MCA):
Key Rating Weaknesses
Small size of operations and high regional concentration: TLFL has
small scale of operation spread over four districts of Karnataka.
The portfolio-outstanding as on March 31, 2019 was INR2.79 crore
(PY: INR2.81 crore). Although strong presence in a particular
region helps the company to understand the dynamics of the region,
it is exposed to geographical concentration risk with 100% of its
portfolio concentrated in Karnataka.
Concentrated resource profile:
Company's major source of funding continues to be equity capital
and fixed deposit from the public. As on March 31, 2019, fixed
deposits and equity finance are about 43% of the resource profile.
Weak asset quality
TLFL had weak asset quality with gross NPA% and Net NPA% at 32.03%
and 30.23%, respectively, as on March 31, 2019, deteriorating from
gross NPA% and Net NPA% of 8.09% and 3.80% as on March 31, 2014.
Low product diversification
TLFL is primarily engaged in financing of used Light Commercial
Vehicles (LCV). As on March 31, 2019, the outstanding loan
portfolio stood at INR2.79 crore, completely financing used LCV's.
Key Rating Strengths
Experience of the promoters in the industry
Mr Ravi Deshpande, the Managing Director of TLFL has over 23 years
of experience in managing pre-owned commercial vehicle finance
business. He is a post graduate in commerce and law, has served as
group finance manager for BEMCO Hydraulics Ltd for 10 years and
general manager finance at The Mysore Kirloskar Ltd for 5 years.
Mr. M.K. Shevade, Director, is a Chartered Accountant, and has 45
years of experience in audit and taxation. He is a director at the
Poly Hydron group of companies. Mr. Ravi Deshpande manages the
day-to-day operations of the company.
Improvement in Net Interest Margin
The NIM has improved from 7.69% in FY18 to 11.09% in FY19. The
company earned net profit of INR0.56 crore in FY19 as against loss
of INR0.71 crore in FY18 (FY17: loss of INR0.18 crore) due to
recovery of dues to the tune of INR0.50 crore. ROTA improved to
12.35% owing to the recovery of dues in FY19 as against –13.40%
on FY18.
Comfortable capital adequacy
The capitalization level of TLFL is comfortable with CAR of 70.79%
as on March 31, 2019 as against 53.2% as on March 31, 2019.
Trikaal Leasing & Finance Ltd (TLFL), is a Dharwad based Deposit
taking NBFC involved in business hire purchase of used commercial
vehicles to individuals in Karnataka. The company was incorporated
in June, 1992. TLFL has presence in four districts of Karnataka,
namely Hubli-Dharwad, Gadag, Haveri and Belgaum. Mr Ravi N
Deshpande is the Managing Director (CMD) who handles the day to day
operations of the company.
VRUNDAVAN CERAMIC: Insolvency Resolution Process Case Summary
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Debtor: Vrundavan Ceramic Private Limited
Registered office:
Survey No. 143/2
8-A National Highway
B/H Gangotri Glazed Tiles
Vill. Dhuva Tal
Wankaner 363622
Gujarat
Insolvency Commencement Date: January 21, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 18, 2020
(180 days from commencement)
Insolvency professional: Shri Arvind Gaudana
Interim Resolution
Professional: Shri Arvind Gaudana
307, Ashirwad Paras
Corporate Road
Nr. Prahladnagar Garden
Satellite, Ahmedabad 380015
Gujarat
E-mail: arvindg_cs@yahoo.com
Tel: 079-40324567/68
Last date for
submission of claims: February 12, 2020
WIN-HOLT INDIA: Insolvency Resolution Process Case Summary
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Debtor: Win-Holt India Private Limited
D-6/23, (SF) Vasant Vihar
South Delhi 110057
Insolvency Commencement Date: January 22, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: July 19, 2020
Insolvency professional: Pravin R. Navandar
Interim Resolution
Professional: Pravin R. Navandar
D-519-520, Neelkanth Business Park
Opp. Vidyavihar Railway Station (W)
Mumbai 400086
E-mail: pravin@prnco.in
ip.win-holt@prnco.in
Last date for
submission of claims: February 4, 2020
YASHDEEP TRADEMART: CARE Withdraws B-, Stable Rating on Bank Loans
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CARE has revised from 'CARE B; Stable' to 'CARE B-; Stable' and
withdrawn the outstanding rating assigned to the bank facilities of
Yashdeep Trademart Private Limited (YTPL) with immediate effect.
The revision in the rating of YTPL takes into account continuous
operating and net loss in past two financial years ended FY19 and
stretched liquidity position. The rating, further, continues to
remain constrained on account of its presence in a highly
competitive and fragmented Gems & Jewellery (G&J) industry and
susceptibility of operating profitability to volatile gold prices
along with price structure being decided by the franchiser.
The rating, however, continues to derive strength from experienced
management and established brand presence of the principal brand
name "Tribhovandas Bhimji Zaveri" (TBZ) and improvement in Total
Operating Income (TOI) in FY19 (FY refers to the period from
April 1 to March 31).
CARE has revised from 'CARE B; Stable' to 'CARE B-; Stable' and
withdrawn the outstanding rating assigned to the bank facilities of
YTPL with immediate effect. The above action has been taken at the
request of YTPL and 'No Objection Certificate' received from the
bank(s) that has extended the facilities rated by CARE.
Detailed description of the key rating drivers
Key Rating Weakness
Nascent stage of operations of the company albeit weak
profitability margin and weak solvency position
The company registered loss at operating as well as net level in
FY19 of INR0.91 Crore and INR2.09 Crore as against loss of 0.15
Crore and INR0.58 Crore in FY18. On account of this, the gross cash
accruals also stood negative at INR1.85 Crore in FY19 as against
INR0.58 Crore in FY18.
The capital structure of the firm stood leveraged with an overall
gearing of 7.21 times as on March 31, 2019 on account of high debt
viz-a-viz low net worth. Further, debt coverage indicators remained
negative at -5.17 times as on March 31, 2019.
Further-more, interest Coverage remained weak at -0.77 times as on
March 31, 2019.
Stressed liquidity position
The liquidity position of the company remained stressed marked by
elongated operating cycle of 323 days as on March 31, 2019 on
account of higher inventory period. Due to this, the current ratio
remained moderate at 1.08 times and quick ratio remained below
unity at 0.12 times respectively as on March 31, 2019. Further, the
cash and bank balance stood very low at 0.04 Crore as on
March 31, 2019.
Presence in a highly competitive and fragmented Gems & Jewellery
(G&J) industry
The G&J industry is highly unorganized with organized market
accounting for a mere 5-6% of the jewellery retail market. This is
because of the buyers' preference and trust in their neighbor-hood
goldsmith. Even the standardization of designs is not possible due
to varying local tastes. Presence of large number of small and big
players in the retail jewellery market leads to pressure on
profitability. With many regional and national jewellery retailers
as well as jewellery manufacturers and exporters lining up
aggressive expansion plans, the competition is expected to further
intensify.
Although, the risk is mitigated to a certain extent by the brand
reputation enjoyed by TBZ, which is among the largest jewellery
retailer in India with over 100 plus boutiques operating.
Susceptibility of operating profitability to volatile gold and
diamond prices along with price structure being decided by the
Franchiser.
During the last few financial years, prices of gold witnessed
significant fluctuations and this price fluctuation has an impact
on the margins of players in gems & jewellery industry. Further, as
per the franchise agreement, price structure is decided by the TBZ
according to the prevailing market rate as well as according the
industry dynamics in that particular region which has to
be followed by YTPL. However, YTPL is partially insulated from this
risk as promoters maintain inventory level depending upon
prevailing prices in the market and by purchasing gold and other
jewellery on daily basis equivalent to the quantity sold. However,
the changes in the prices could impact the profitability to the
extent of YTPL's inventory holding.
Key Rating Strengths
Experienced management
The overall affairs of the company are looked after by Mr. Abhishek
Raghuvanshi, Mr. Pradeep Raghuvanshi along with Mr. Deepesh sharma
and Mr. Nishant Raghuvanshi. Mr. Abhishek Raghuvanshi, has more
than 10 years of experience in the retail industry and Mr Pradeep
Raghuvanshi have an experience of more than 25 years in the same
industry. Also, Mr. Deepesh Raghuvanshi who has an experience of
more than 5 years looks after the overall affaires of the company.
Further, the directors are assisted by a team of experienced
professionals along with business responsibilities being defined
amongst members leading to strategic decisions taken collectively
by the partners.
Established brand presence of the principal brand name
"Tribhovandas Bhimji Zaveri"
The brand name of "TBZ" enjoys strong brand presence and
recognition in the jewellery industry in the domestic market for
over more than ten decades. TBZ is a jewellery brand of India. It
was the vision of Lt. Sh. Bhimji Zaveri and has presence in 12
states, 27 cities and 38 retail stores national wide. CRISIL has
reaffirmed the ratings for TBZ at CRISIL BBB+ with stable outlook
in August, 2018. The company being a registered dealer of the TBZ
enjoys its established brand name which may have a positive impact
on its scale of operations.
Improvement in scale of operations in FY19
During FY19, Total Operating Income (TOI) of the company has
increased significantly by 159.87% over FY18 and stood at INR12.48
crore.
Yashdeep Trademark Private Limited (YTPL) was formed in 2017 as a
private limited company by Mr. Abhishek Raghuvanshi, Mr. Pradeep
Singh Raghuvanshi, Mr. Deepesh Singh Raghuvanshi and Nishant singh
Raghuvanshi with an objective to set up a retail store of Gems &
Jewellery. YTPL is an authorized franchisee for Tribhovandas Bhimji
Zaveri Limited (TBZ) under its brand name "TBZ" with the company
engaged in retailing of wide product offered by its principal for
gold, diamond jewelry. TBZ started its operations in September,
2017 with establishing its retail showroom in Bhopal (Madhya
Pradesh) under franchisee model from TBZ for TBZ brand. The company
is solely dealing in TBZ jewelry which is being supplied by TBZ
itself under their pricing structure as per the franchise
agreement.
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S I N G A P O R E
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LIBRA GROUP: Replies to SGX Queries on Board Reconstitution
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The Business Times reports that Libra Group has shed more light on
the thinking behind its board reconstitution announced last month,
in response to queries from the Singapore Exchange (SGX).
Among other things, the SGX had asked who would lead and drive the
restructuring at Libra, given that its chairman and executive
director Chu Sau Ben had resigned after being served a bankruptcy
order, BT says.
BT relates that Libra replied on Jan. 31 that Christine Liu will
remain as Libra's chief executive officer and executive director.
She will be responsible for the day-to-day operations of the
company and Kin Xin Engineering, which is Libra's sole operating
subsidiary, it said.
It added: "Notwithstanding Mr. Chu Sau Ben's resignation, he will
remain as employee and re-designated as deputy general manager of
Kin Xin, assisting Ms Liu in the day-to-day operation of Kin Xin."
According to BT, Libra has also appointed financial and legal
advisers to assist and provide professional support in the
restructuring.
BT says the SGX also sought more details on why independent
director Joel Leong Kum Hoe, who joined the board on July 30 last
year, had resigned. Libra had earlier said that Mr. Leong resigned
due to his "differing views on the board's plans to restructure the
group".
Libra explained that Mr. Leong had felt that the company should be
put in judicial management as the best course of action, but the
majority of the board of directors felt that the company should
continue to try to find ways to turn things around via a scheme of
arrangement, the report relays.
BT adds that SGX also noted that new independent director Calvin
Tan Siok Sing holds past and present directorships in a few
troubled companies such as Qingmei Holdings, Li Heng Chemical Fibre
Technologies and Dukang Distillers.
However, Libra's board and its Catalist sponsor, RHT Capital, noted
that no regulatory actions were taken against Mr. Tan or the
companies.
RHT Capital said: "There is no reason for the sponsor to opine that
his past directorships would deem Mr. Tan unsuitable to be an
independent director," BT relays.
About Libra Group
Libra Group Limited provides integrated M&E services as a
sub-contractor. The Company's services include the contracting and
installation of ACMV systems, fire alarms and fire protection
systems, electrical systems as well as sanitary and plumbing
services. Libra also manufactures and sells ACMV related products.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
18, 2019, The Business Times said the Singapore High Court has
granted Libra Group a six-month reprieve against its creditors.
Libra's creditors include UOB, which issued a letter of demand on
Oct. 8, 2019, for US$18.8 million, and Maybank Singapore, which on
Sept. 3, 2019, issued a letter of demand to possess Libra's
property at 34 Sungei Kadut Loop.
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T H A I L A N D
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THAILAND: Cuts Interest Rate as Virus Outbreak Hurts Economy
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Suttinee Yuvejwattana at Bloomberg News reports that the Bank of
Thailand cut its benchmark interest rate to a record low as the
coronavirus outbreak, a stalled government budget and bad drought
imperil economic growth.
Bloomberg says the central bank lowered the policy rate by 25 basis
points to 1% on Feb. 5 in a unanimous decision, the third cut in
its last five meetings. Fourteen of 29 analysts in a Bloomberg
survey predicted the decision, with the rest expecting no change.
"They have come to terms with a continued slowdown this year.
That's mainly coming from the virus downing tourism," Bloomberg
qoutes Prakash Sakpal, an economist at ING Groep NV in Singapore
who expects one more rate cut this year, as saying. "There's not
much scope for fiscal stimulus, as the budget hasn't even passed
just yet. All the burden is on the Bank of Thailand."
The baht weakened by as much as 0.9% against the dollar to 31.264,
before trading 0.5% lower at 31.129 per dollar as of 2:53 p.m. in
Bangkok, Bloomberg discloses. The country's benchmark stock index
erased earlier gains to trade little changed on the day.
According to Bloomberg, the virus has delivered a severe blow to
Thailand's tourism industry, undermining the outlook for the
economy. Officials already were grappling with the worst drought in
four decades, a prolonged delay in the implementation of the
3.2-trillion-baht ($103 billion) annual budget and shrinking
exports.
"The outbreak may be temporary, but it's a huge shock to the
economy," Bloomberg quotes Naris Sathapholdeja, chief economist at
TMB Bank Pcl in Bangkok, as saying. "Cutting borrowing costs helps
to alleviate the pressure on the private sector."
Bank of Thailand Assistant Governor Titanun Mallikamas told
reporters the baht is likely to remain volatile going forward. Even
after falling 3.6% this year -- making it the worst performer among
Asian currencies -- he said the baht may still be out of line with
economic fundamentals after last year's rapid rise.
The monetary policy committee said Thailand's economy -- expected
to grow 2.8% this year -- "would expand at a much lower rate in
2020 than the previous forecast." Inflation this year and next "was
projected to be below the lower bound" of the target, set at 1%-3%.
The bank is likely to revise the economic growth forecast at its
next meeting, Titanun, as cited by Bloomberg, said.
Data earlier on Feb. 5 showed Thai consumer confidence falling for
an eleventh straight month in January -- even before the
coronavirus scare had much time to impact the economy, Bloomberg
notes.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
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