/raid1/www/Hosts/bankrupt/TCRAP_Public/200318.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 18, 2020, Vol. 23, No. 56
Headlines
A U S T R A L I A
123INDUSTRIES PTY: First Creditors' Meeting Set for March 25
CAMBRIA MANAGEMENT: First Creditors' Meeting Set for March 25
ELECTRICITY WIZARD: First Creditors' Meeting Set for March 24
PACIFIC BIOTECHNOLOGIES: First Creditors' Meeting Set for March 25
RONDEL MEDICAL: First Creditors' Meeting Set for March 25
STELLER 203: Second Creditors' Meeting Set for March 25
TILLY FRENCH: First Creditors' Meeting Set for March 25
TRIPLE C: First Creditors' Meeting Set for March 25
VIRGIN AUSTRALIA: S&P Lowers ICR to 'B-', On Watch Negative
H O N G K O N G
PEARL HOLDING III: Moody's Lowers CFR to B3, Outlook Negative
I N D I A
4TH APPLE DEVELOPERS: CRISIL Keeps B+ Rating in Not Cooperating
AESTHETIC STONE: Insolvency Resolution Process Case Summary
AGRAWAL TECHNICAL: Ind-Ra Keeps BB- Loan Rating in Non-Cooperating
AIZANT DRUG: CRISIL Lowers Ratings on INR34cr Loans to B+
ASHOK BRICKS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
BAKEWELL BISCUITS: CRISIL Keeps INR5.5cr Loans in Not Cooperating
BASAVESHWAR ELECTRICALS: CRISIL Cuts Rating in INR6cr Loan to B+
BRAJKON ORGANICS: Insolvency Resolution Process Case Summary
BRIGHT UP TECH: CRISIL Keeps B on INR2cr Debt in Not Cooperating
BUSH TEA: CRISIL Lowers Rating on INR27.5cr Cash Loan to B+
BVSR PAM: CRISIL Lowers Rating on INR10.64cr LT Loan to B+
CEC FLAVOURS: CRISIL Keeps B+ on INR9.2cr Loans in Not Cooperating
CENTRAL GODAVARI: CRISIL Assigns D Rating to INR66.2cr LT Loan
CHEM STAR: CRISIL Keeps D on INR5cr Credit in Not Cooperating
CHIRANJI LAL: CRISIL Keeps B on INR7cr Loans in Not Cooperating
CLOUDRIC TECHNOLOGIES: Insolvency Resolution Process Case Summary
CN WATER: CRISIL Lowers Rating on INR5cr LT Loan to B+
D. C. FABRICS: CRISIL Keeps B on INR7cr Loans in Not Cooperating
DEEP JAN: CRISIL Keeps B+ on INR1cr Loan in Not Cooperating
DELSEA EXPORTS: Insolvency Resolution Process Case Summary
DHARMRAJ ALUMINIUM: CRISIL Keeps INR20cr Loan in Not Cooperating
ERAWAT PHARMA: CRISIL Lowers Rating ons INR11cr Loans to B+
EVERON CASTINGS: Ind-Ra Lowers Long Term Issuer Rating to 'C'
FAIRDEAL CONSUMER: CRISIL Lowers Rating on INR5.11cr Loan to B-
FENIX PROCESS: CRISIL Keeps D Debt Ratings in Not Cooperating
FILTERATION ENGINEERS: CRISIL Cuts Rating on INR4cr Loan to B+
FUSION GRANITO: CRISIL Keeps B+ in INR20cr Loan in Not Cooperating
HANDUM INDUSTRIES: Insolvency Resolution Process Case Summary
IL&FS LTD: Directed to Conclude Resolution in Next 3 Months
KAMACHI INDUSTRIES: Insolvency Resolution Process Case Summary
LEEL ELECTRICALS: Insolvency Resolution Process Case Summary
LIMTEX AGRI: Insolvency Resolution Process Case Summary
LNM INSTITUTE: CRISIL Lowers Rating on INR10cr Loan to B+
MACHINE HOUSE: CRISIL Lowers Rating on INR2.75cr Loan to B+
MARIYA HEALTHCARE: Insolvency Resolution Process Case Summary
MATRIX BOILERS: CRISIL Lowers Rating on INR4cr Bank Loan to D
OKAY ESTATE: Insolvency Resolution Process Case Summary
OMKAR NESTS: CRISIL Lowers Rating on INR24.5cr Term Loan to 'D'
PRAVEEN ELECTRICAL: CRISIL Cuts Rating on INR11cr Loan to 'D'
RAJAHMUNDRY GODAVARI: Insolvency Resolution Process Case Summary
RANGAR BREWERIES: CRISIL Keeps B on INR13 Loans in Not Cooperating
SENBO ENGINEERING: CRISIL Maintains D Ratings in Not Cooperating
STRAIGHT EDGE: Insolvency Resolution Process Case Summary
SUMERU PROCESSORS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
SYSCO INDUSTRIES: Insolvency Resolution Process Case Summary
TAVAS CONSTRUCTION: Insolvency Resolution Process Case Summary
TOSHNIWAL ENTERPRISES: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
UT LIMITED: Insolvency Resolution Process Case Summary
V3 ENGINEERS: Insolvency Resolution Process Case Summary
VODAFONE IDEA: JV Venture Boosted on India Payment Extension Bid
XICON INT'L: CRISIL Cuts Rating on INR3cr Loan to B+
YES BANK: Moody's Hikes Rating on Unsec. MTN Program to Caa1
M A C A U
MELCO RESORTS: Moody's Reviews Ba2 CFR for Downgrade on COVID-19
S I N G A P O R E
JEPAK HOLDINGS: Seeks Judicial Management
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A U S T R A L I A
=================
123INDUSTRIES PTY: First Creditors' Meeting Set for March 25
------------------------------------------------------------
A first meeting of the creditors in the proceedings of
123Industries Pty Ltd will be held on March 25, 2020, at 10:30 a.m.
at the offices of Veritas Advisory, Level 5, at 123 Pitt Street, in
Sydney, NSW.
Vincent Pirina of Veritas Advisory was appointed as administrator
of 123Industries Pty on March 13, 2020.
CAMBRIA MANAGEMENT: First Creditors' Meeting Set for March 25
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of The Cambria
Management Corporation Pty Ltd, ATF The Cambria Corporation Unit
Trust, will be held on March 25, 2020, at 11:00 a.m. at the offices
of Hayes Advisory, Level 16, at 55 Clarence Street, in Sydney, NSW.
Alan Hayes of Hayes Advisory was appointed as administrator of
Cambria Management on March 13, 2020.
ELECTRICITY WIZARD: First Creditors' Meeting Set for March 24
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of CEE T/AS
Electricity Wizard Pty Ltd will be held on March 24, 2020, at 11:00
a.m. at the offices of Levi Consulting Pty Ltd, Level 1, at 84 Pitt
Street, in Sydney, NSW.
David Joseph Levi of Levi Consulting Pty Ltd was appointed as
administrator of Electricity Wizard on March 12, 2020.
PACIFIC BIOTECHNOLOGIES: First Creditors' Meeting Set for March 25
------------------------------------------------------------------
A first meeting of the creditors in the proceedings of Pacific
Biotechnologies Ltd will be held on March 25, 2020, at the
following locations:
- Hall Chadwick Chartered Accountants
Level 14, 44 Collins Street
Melbourne, VIC
Time: 10:00 a.m. (AEDT);
- Quest Townsville on Eye
19-21 Leichhart Street
North Ward QLD
Time: 9:00 a.m. (AEST); and
- Hall Chadwick Chartered Accountants
Level 40, 2 Park Street
Sydney, NSW
Time: 10:00 a.m. (AEDT).
Steven Arthur Gladman, Richard Albarran and David Ross of Hall
Chadwick were appointed as administrators of Pacific
Biotechnologies on March 13, 2020.
RONDEL MEDICAL: First Creditors' Meeting Set for March 25
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Rondel
Medical Group Pty Ltd will be held on March 25, 2020, at 11:30 a.m.
at the offices of SM Solvency Accountants, Level 10/144, at Edward
Street, in Brisbane, Queensland.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Rondel Medical on March 16, 2020.
STELLER 203: Second Creditors' Meeting Set for March 25
-------------------------------------------------------
A second meeting of creditors in the proceedings of Steller 203 Pty
Ltd has been set for March 25, 2020, at 10:00 a.m. at the offices
of SV Partners, Level 17, at 200 Queen Street, in Melbourne,
Victoria.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 24, 2020, at 5:00 p.m.
Timothy James Brace, Michael Carrafa and Peter Gountzos of SV
Partners were appointed as administrators of Steller 203 on Sept.
20, 2019.
TILLY FRENCH: First Creditors' Meeting Set for March 25
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Tilly French
Pty Ltd (Formerly Trading As "Tilly Murray Pty Ltd") (As Trustee
For "Tilly French Trust") will be held on March 25, 2020, at 10:00
a.m. at the offices of SV Partners, Level 17, at 200 Queen Street,
in Melbourne, Victoria.
Michael Carrafa and Fabian Kane Micheletto of SV Partners were
appointed as administrators of Tilly French on March 16, 2020.
TRIPLE C: First Creditors' Meeting Set for March 25
---------------------------------------------------
A first meeting of the creditors in the proceedings of Triple C
Bricklaying Pty Ltd will be held on March 25, 2020, at 10:30 a.m.
at Suite 203, at 517 Flinders Lane, in Melbourne, Victoria.
Liam William Paul Bellamy of Chan Naylor was appointed as
administrator of Triple C Bricklaying on March 13, 2020.
VIRGIN AUSTRALIA: S&P Lowers ICR to 'B-', On Watch Negative
-----------------------------------------------------------
S&P Global Ratings, on March 16, 2020, lowered its issuer credit
rating on Virgin Australia to 'B-' from 'B+', and lowered its
related issue ratings on the airline's debt to 'CCC+' from 'B'. At
the same time, S&P placed all ratings on CreditWatch with negative
implications. Recovery ratings on the debt remain unchanged at
'5'.
S&P said, "We lowered our ratings on Virgin Australia to reflect
our view that rapidly deteriorating industry conditions are
spreading from the international to the Australian domestic market.
We now believe Australia's economy will grow at just 1.2% in 2020,
which is the weakest economic outlook in 20 years. Subdued economic
conditions are exacerbated by corporate and leisure travelers
cancelling unnecessary travel and the requirement for incoming
international travelers to self-isolate on their return to
Australia. Further, the extent and duration of reduced travel
demand remain highly uncertain. We believe risks remain to the
downside with an increasing likelihood that infections will
continue to rise as Australia approaches the winter months."
An immediate cash outflow is likely despite sound fundamentals in
Australia's domestic aviation market. Virgin Australia, together
with other industry players, have signaled their intention to
reduce capacity in the face of weaker demand conditions. Virgin
Australia's fleet remains the youngest in the Australian domestic
market, which we believe provides it some scope to reduce new
aircraft deliveries. S&P said, "Further, we consider that
management is taking appropriate steps to restructure its cost base
in the face of the deteriorating operating environment. That said,
we do not believe Australia's duopoly-like domestic market
structure has the ability to fully protect against the material
exogenous shock currently underway."
S&P said, "We expect weak demand conditions, coupled with Virgin
Australia's high operating leverage, to result in a meaningful cash
outflow. We estimate that up to half of Virgin Australia's
operating costs are fixed and the timing and effectiveness of
variable cost reduction remain uncertain given the challenging and
evolving revenue outlook. That said, we note Virgin Australia's
relatively low exposure to international routes, which is bearing
the brunt of the COVID-19 fallout." Virgin Australia also has a
materially lower share of the corporate and government domestic
travel market that has initiated an immediate suspension of
non-essential travel.
Forward bookings and the Velocity Frequent Flyer business provide a
material source of working capital, some of which could unwind. The
airline's unearned revenue comprises predominantly forward
bookings. While most bookings are unlikely to be eligible for cash
refunds, changes in forward booking patterns could reduce Virgin
Australia's working capital benefit, particularly given the skew
towards near-term bookings. In addition, any decrease in the sale
of frequent-flyer points to third-parties (particularly banks) or
increased frequent-flyer redemption activity (particularly
merchandise rather than flights), could also erode Virgin
Australia's working capital buffer.
Virgin's large cash balance and limited debt maturities over the
next 18 months provide important flexibility to accommodate the
evolving operating environment. Virgin Australia's liquidity
position, which comprises primarily about A$900 million of
unrestricted cash, should provide adequate flexibility to
accommodate the group's cash requirements. However, rating
stability will increasingly rely on the company continuing to
adjust its cost base to offset potential further material revenue
erosion and limit cash outflows if the reduction in demand
continues beyond the next few months.
Global industry conditions complicate the prospect of shareholder
support should Virgin Australia experience financial stress. S&P
Global Ratings believes it now appears less likely than previously
that Virgin Australia will receive any extraordinary support from
shareholder airlines. Virgin Australia is currently 90%-owned by
Etihad Airways, Singapore Airlines, Nanshan Group, HNA Group, and
Virgin Group. To varying extents, each shareholder is experiencing
their own challenging industry conditions, impeding their
collective ability to provide timely and coordinated support if
required. This is despite owners having a variety of interests that
may extend beyond the airline's stand-alone profitability.
S&P said, "Our analysis does not incorporate any extraordinary
support from the Australian government or lenders. Given the
temporary nature of this crisis, we believe that government and
lenders may have an incentive to support Australian carriers. That
said, our analysis does not currently incorporate potential
industry support packages or indirect extraordinary support the
government may provide through Australia's lending institutions or
other channels.
"The CreditWatch negative placement reflects our view that the
company's operating environment may be deteriorating at a faster
pace than Virgin Australia can implement initiatives to protect
cash generation and balance sheet health.
"We will continue to monitor Virgin Australia's revenue, earnings,
and cash-flow outlook over the next 90 days to ascertain whether
the company's efforts to reduce costs are sufficient to offset the
challenging and evolving operating environment.
"We could lower the rating if industry conditions continue to
deteriorate such that the cash outflow threatens to erode the
carrier's currently adequate liquidity buffer.
"We could resolve the CreditWatch and affirm the 'B-' issuer credit
rating with a stable outlook if we believe that Virgin Australia's
earnings outlook and cash generation will be sufficient to prevent
a material erosion of the group's available cash balance. This
would likely depend on a recovery in the ability and willingness of
Virgin's customers to travel, and ongoing active management of the
group's cost base."
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H O N G K O N G
=================
PEARL HOLDING III: Moody's Lowers CFR to B3, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Pearl Holding III Limited's
corporate family rating and senior secured bond rating to B3 from
B2.
The outlook remains negative.
RATINGS RATIONALE
"The downgrade reflects our expectation that Pearl III's leverage
and cash flow will remain weak this year, as the coronavirus
outbreak disrupts global supply chains and hurts end-market
demand," says Gloria Tsuen, a Moody's Vice President and Senior
Credit Officer.
"This situation could further weaken Pearl III's limited liquidity
buffers and, if sustained, increase the company's probability of
financial distress," adds Tsuen.
Moody's expects Pearl III's adjusted debt/EBITDA in 2020 to remain
elevated and largely stay between 7x-8x, similar to levels recorded
in 2019, but significantly higher than 5.1x in 2018. Likewise, its
EBITA/interest will remain weak at below 1x. These credit metrics
are no longer appropriate for a B2 rating.
Moody's had previously expected that Pearl III would have a modest
earnings recovery this year, after a weak operating performance
during most of 2019, driven by soft demand in the company's major
end markets, especially the automotive segment.
However, the coronavirus outbreak is affecting both supply chains
and consumer demand in various end markets. These factors will hurt
Pearl III's earnings and cash flow this year.
Pearl III has no major debt due until 2022. However, given its
modest cash position and weak operating cash flow, its liquidity
buffer could easily be eroded over the next 12 months, despite a
moderation in its capital spending and restructuring expenses.
Pearl III's B3 ratings continue to incorporate its small scale, the
fragmented and competitive nature of tooling and molding markets,
and its customer and business concentration.
These weaknesses are mitigated by the company's diversified end
markets and long-standing customer relationships.
The ratings also consider Pearl III's full ownership by a private
equity firm, which lowers transparency and exposes it to a degree
of event risk.
The rating on the senior secured notes is not higher than the
company's CFR, because this debt constitutes the vast majority of
Pearl III's outstanding debt, implying limited junior cushions in
its liability structure.
The negative outlook reflects Moody's expectation that Pearl III's
financial leverage and cash flow will remain weak and its liquidity
buffer will be thin over the next 12-18 months.
The outlook could return to stable if the company improves its
financial profile through higher earnings, such that (1) its
adjusted gross debt/EBITDA declines to below 6x on a sustained
basis, and (2) its liquidity strengthens.
Moody's could downgrade the ratings if (1) the company's earnings
remain weak, such that its adjusted gross debt/EBITDA remains above
6x for a prolonged period, or (2) its liquidity weakens, such that
its internal sources and committed credit facilities are
insufficient to cover cash requirements over the next 12 months.
The principal methodology used in these ratings was Manufacturing
Methodology published in March 2020.
Pearl Holding III Limited is a precision engineered plastic
components producer, mainly engaged in the manufacture and sale of
plastic injection molds and related products. It is an indirectly
wholly owned subsidiary of Platinum Equity, LLC, a private equity
firm, headquartered in Los Angeles.
=========
I N D I A
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4TH APPLE DEVELOPERS: CRISIL Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of 4th Apple Developers
(4AD) continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 12 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with 4AD for obtaining
information through letters and emails dated August 31, 2019 and
February 06, 2020 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 4AD, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on 4AD 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 4AD continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
4AD was started in April 2013 as a partnership firm. It develops
real estate and is currently undertaking a residential project, 4th
Apple Oak Residency, at Ghansoli.
AESTHETIC STONE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Aesthetic Stone Arts India Private Limited
Registered office address:
Plot No. 9, 22Godown Circle
Behind Nehru Sahakar Bhawan
Jaipur 302001
Rajasthan
Insolvency Commencement Date: March 4, 2020
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: August 31, 2020
(180 days from commencement)
Insolvency professional: Mrs. Anuradha Gupta
Interim Resolution
Professional: Mrs. Anuradha Gupta
E-194, Amba Bari
Jaipur 302039
Rajasthan
E-mail: anuradhagupta70@gmail.com
asplcirp@gmail.com
Last date for
submission of claims: March 18, 2020
AGRAWAL TECHNICAL: Ind-Ra Keeps BB- Loan Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shri Agrawal
Technical & Education Society's bank loan ratings in 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
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR181.7 mil. Term loan due on January 2021 – December 2026
maintained in a non-cooperating category with IND BB- (ISSUER
NOT COOPERATING) rating; and
-- INR149 mil. Fund-based working capital facility maintained in
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 8, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Registered under the Madhya Pradesh Society Registration Act, 1973,
Shri Agrawal Technical & Education Society was set up by Mr.
Sanjeev Agarwal in June 2002.
AIZANT DRUG: CRISIL Lowers Ratings on INR34cr Loans to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Aizant Drug
Research Solutions Private Limited (Aizant) to 'CRISIL B+/Stable
Issuer not cooperating' from 'CRISIL BB+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 4 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Term Loan 20 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Aizant for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 Aizant, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Aizant 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 Aizant revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
Aizant, established by Dr. Rudraraju Varma and his family members,
commenced commercial operations in 2008. The company provides
contract research services, with a focus on new drug delivery
systems, and conducts clinical trials on behalf of its clients.
Aizant's research laboratory and clinical trials facility are in
Hyderabad, Telangana.
ASHOK BRICKS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ashok Bricks
Industries Private Limited's Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. 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 instrument-wise rating actions are:
-- INR140 mil. Fund-based limits (Long-term) downgraded with IND
D (ISSUER NOT COOPERATING) rating;
-- INR100 mil. Term loan (Long-term) downgraded with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Non-fund-based limits (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 Ashok Bricks Industries' delays in debt
servicing, the details of which are not available.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
COMPANY PROFILE
Ashok Bricks Industries, established in 1992 as a partnership firm,
operates in the construction industry.
BAKEWELL BISCUITS: CRISIL Keeps INR5.5cr Loans in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Bakewell Biscuits
Private Limited (BBPL) continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 5.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Packing Credit 11.4 CRISIL A4 (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BBPL for obtaining
information through letters and emails dated November 30, 2019 and
February 6, 2020 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 BBPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BBPL 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 BBPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in 2004, BBPL is promoted by the Modasa
(Gujarat)-based Mr. Mohammadraish Suthar and Mr. Hitesh Patel. The
firm manufactures biscuits from wheat flour.
BASAVESHWAR ELECTRICALS: CRISIL Cuts Rating in INR6cr Loan to B+
----------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Basaveshwar
Electricals Private Limited (BEPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Bank
Guarantee 11 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with BEPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 BEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BEPL 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 BEPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer not
cooperating'.
BEPL, incorporated in April 2013 by Mr. M V Gachinmath, is an
engineering, procurement, and construction (EPC) contractor. It
sets up substations and transmission lines for state power
transmission and distribution utilities in Karnataka. Mr.
Gachinmath has been engaged in this industry for over two decades
and earlier conducted the business through his proprietorship
concern Basaveshwar Electricals and Engineers. However, with the
formation of BEPL, all business will be undertaken by this company.
BEPL's registered office is in Bijapur (Karnataka).
BRAJKON ORGANICS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: M/s Brajkon Organics Private Limited
C/o W. Brajabidhu Singh
11-B-2/17, KID World Complex
Airport Road, Ghari Imphal
West Imphal, MN 795001
IN
Insolvency Commencement Date: January 30, 2020
Court: National Company Law Tribunal, Guwahati Bench
Estimated date of closure of
insolvency resolution process: July 27, 2020
(180 days from commencement)
Insolvency professional: Amit Pareek
Interim Resolution
Professional: Amit Pareek
4th Floor, Ram Prasad Complex
Chatribari, Guwahati 781001
E-mail: amitpareek99@yahoo.com
brajkonorganicsirp@gmail.com
Last date for
submission of claims: February 13, 2020
BRIGHT UP TECH: CRISIL Keeps B on INR2cr Debt in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Bright Up Technology
Private Limited (BUTPL) continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 2 CRISIL A4 (ISSUER NOT
under Letter COOPERATING)
of Credit
Proposed Cash 2 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING)
Proposed Letter 6 CRISIL A4 (ISSUER NOT
of Credit & Bank COOPERATING)
Guarantee
CRISIL has been consistently following up with BUTPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 BUTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BUTPL 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 BUTPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in July 2008, BUTPL, promoted by Mr Shankar Sarkar Mr
Bhanumathi Neelakantan, Mr/Ms Ruam Biswas and Mr Pramod Sarkar,
provides technological upgrade and consultancy to various corporate
clients to ensure their operational efficiency. They have tie-ups
with various global companies and source their technology in India
to various companies.
BUSH TEA: CRISIL Lowers Rating on INR27.5cr Cash Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Bush Tea
Company Private Limited (Bush) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 27.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Bush for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 Bush, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Bush 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 Bush revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Bush Tea was acquired by the current promoter, Mr Sanjay Prakash
Bansal, in 2009. Prior to the acquisition, the company exported
conventional tea to the US, the UK, and Gulf countries, but now
mostly trades in conventional tea in the domestic market. It also
trades in a small proportion of organic tea. Bush Tea procures
equal amounts of tea from both auction houses and private players
and blends it at its warehouse. The company sells tea mostly to
players such as Tata Global Beverages Pvt Ltd, Jalpaiguri Tea
Company and local players.
BVSR PAM: CRISIL Lowers Rating on INR10.64cr LT Loan to B+
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of BVSR PAM Road
Projects Private Limited (BVSR PAM) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Long Term Loan 10.64 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 13.86 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with BVSR PAM for
obtaining information through letters and emails dated August 31,
2019 and February 6, 2020 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 BVSR PAM, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on BVSR PAM
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 BVSR PAM revised to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer
not cooperating'.
BVSR PAM is a special purpose vehicle promoted by BVSR Construction
Pvt Ltd. BVSR PAM has designed and rehabilitated the 10.8 kms
Pulivendula-Ambakapalli- Murarichintala road in Kadapa district
(Andhra Pradesh), by upgrading the road to a two-lane carriageway.
CEC FLAVOURS: CRISIL Keeps B+ on INR9.2cr Loans in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of CEC Flavours And
Fragrances Private Limited (CEC) continues to be 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Cash
Credit Limit 2.59 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 1.7 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CEC for obtaining
information through letters and emails dated August 31, 2019 and
February 2020 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 CEC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CEC 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 CEC continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
CEC, incorporated in 1946 and based in Thiruvallur, Tamil Nadu,
manufactures flavours and fragrances. Its operations are managed by
its managing directors, Mr. A Prabhakar and Mr. A Purushotham.
CENTRAL GODAVARI: CRISIL Assigns D Rating to INR66.2cr LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
loan facilities of Central Godavari Krushak Seva Sahakari Sanstha
Limited (CGKSSSL)
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 66.2 CRISIL D (Assigned)
The rating reflects the recent delays in debt servicing due to poor
liquidity. CGKSSSL also has a weak capital structure and is exposed
to risks inherent in the microfinance sector. However, the trust
has an established and longstanding presence in the region in which
it operates.
Key Rating Drivers & Detailed Description
Weaknesses
* Recent delays in debt servicing: The trust extends crop loans to
farmers and its collections remain exposed to farm outputs, which
are driven by adequacy of rainfall, crop diseases, and other
critical factors such as loan waivers. In recent months, the
trust's collections had been impacted adversely because of ongoing
farm loan waiver process in the state, which strained its liquidity
and resulted in delays in debt servicing.
* Weak capital structure: Adjusted networth was small at INR9
crore and gearing high at 6.6 times, as on March 31, 2019. Hence,
capitalisation remained modest.
* Exposure to risk inherent in the microfinance sector: The
microfinance sector has witnessed high level of delinquencies
post-demonetisation and subsequent socio-political events. This
indicates the fragility of the business model vis-a-vis external
risks. Since business involves lending to the poor and downtrodden
sections of the society, microfinance institutions will remain
exposed to socially sensitive factors, including charging high
interest rates, and, consequently, to tighter regulations and
legislation.
Strength:
* Established and longstanding regional presence: CGKSSSL started
its operations in 1975 to provide financial assistance to farmers.
These borrowers generally have a modest credit risk profile, with
no access to formal banking channels. The society also sells
fertilisers to farmers. The loan portfolio is moderate, with assets
under management of INR72 crore as on March 31, 2019, and a base of
4,644 members, in Nashik (Maharashtra).
Liquidity Poor
Liquidity is affected by cash flow mismatch in collection from loan
portfolio and maturing debt. Hence, there are delays in repayment
of term loan. Because of ongoing farm loan waiver process in the
state, the collections had been adversely impacted leading to
strain in liquidity and delays in debt servicing.
Rating Sensitivity factors
Upward Factors
* Track record of timely debt repayment for at least
consecutive 90 days
* Significant improvement in operating performance and timely
collection of advances
CGKSSSL was set up in Nashik in 1975. Chaired by Mr Lahu Ramchandra
Dafale, the trust provides microfinance to farmers. It has 4,644
members spread across 21 villages.
CHEM STAR: CRISIL Keeps D on INR5cr Credit in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Chem Star
International Private Limited (CIPL) continues to be 'CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CIPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 CIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CIPL 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 CIPL continues to be 'CRISIL D Issuer not
cooperating'.
CIPL, set up in 2011, trades in shrimp. The Nellore (Andhra
Pradesh)-based company has been promoted by Mr Shaik Mahaboob and
his family members.
CHIRANJI LAL: CRISIL Keeps B on INR7cr Loans in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Chiranji Lal Atma Ram
(CLAR) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Warehouse Financing 4 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CLAR for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 CLAR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CLAR 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 CLAR continues to be 'CRISIL B/Stable Issuer not
cooperating'.
CLAR, based in Dabwali, Haryana, is a proprietorship firm promoted
by Mr. Yogesh Kumar in 2012. The firm trades in agricultural
commodities such as mustard, cotton seed, cotton, guar, gram,
barley, and cotton seed de-oiled cakes.
CLOUDRIC TECHNOLOGIES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Cloudric Technologies Private Limited
Registered office address:
A-10/28, Kalkaji Extension
New Delhi 110019
Corporate office address as per website of the
Corporate debtor:
A-97 2nd floor DDA Shed Phase-2
Block A, Okhla Phase II
New Delhi 110020
Insolvency Commencement Date: March 3, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: August 31, 2020
Insolvency professional: Anil Kumar Jain
Interim Resolution
Professional: Anil Kumar Jain
255-B, IInd Floor, Block A 1
Near Central School
Lawrence Road, Keshav Puram
New Delhi 110035
E-mail: aniljn@yahoo.com
rp.ctpldelhi@gmail.com
Tel: +9111-27391762/9599916609
Last date for
submission of claims: March 19, 2020
CN WATER: CRISIL Lowers Rating on INR5cr LT Loan to B+
------------------------------------------------------
CRISIL has revised the ratings on bank facilities of CN Water
Systems Private Limited (Christ) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Fund-Based 5 CRISIL B+/Stable (ISSUER NOT
Facilities COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Non-Fund 12 CRISIL A4 (ISSUER NOT
Based Limit COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Christ for obtaining
information through letters and emails dated August 31, 2019 and
February 06, 2020 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 Christ, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Christ 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 Christ revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer not
cooperating'.
Christ Nishotech, incorporated in 2003 is promoted by Mr. Shoeb
Kurwadwala, his wife Ms. Sakina Kurwadwala, and BWT. Christ
Nishotech assembles and installs water treatment plants, primarily
for pharmaceutical companies.
D. C. FABRICS: CRISIL Keeps B on INR7cr Loans in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of D. C. Fabrics
(Ludhiana) (DCF) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with DCF for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 DCF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DCF 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 DCF continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Established in 1994 as a partnership firm by Mr Sanjeev Kumar Jain,
Mr Saket Jain, and Ms Sangeeta Jain, DCF manufactures fabrics from
yarn at its facilities in Ludhiana.
DEEP JAN: CRISIL Keeps B+ on INR1cr Loan in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Deep Jan Kalyan
Samiti (DJKS) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund- 1 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING)
CRISIL has been consistently following up with DJKS for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 DJKS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DJKS 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 DJKS continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Setup in 1997, DJKS is organised as a not-for-profit society and is
located in Bareilly, Uttar Pradesh. It is engaged in various
schemes operated by the state and central governments in Bareilly
and its surrounding areas. Some of the schemes include, operating
creches under the Rajiv Gandhi National Creche Scheme, short stay
home under the Ministry of Woman & Child Development, old age homes
under Social Welfare & Women Welfare Scheme and other government
mandated schemes.
DELSEA EXPORTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Delsea Exports Private Limited
19/2055A, Nambiapuram Road
Palluruthy, Kochi 682006
Insolvency Commencement Date: March 9, 2020
Court: National Company Law Tribunal, Kochi Bench
Estimated date of closure of
insolvency resolution process: September 4, 2020
(180 days from commencement)
Insolvency professional: Vinod Padinhare Veettil
Interim Resolution
Professional: Vinod Padinhare Veettil
66-1058, First Floor
Veekshanam Road
Ernakulam North 682108
Ernakulam-Kerala
E-mail: vinodpv@gmail.com
Tel: 0484-2367167
7025528888
Last date for
submission of claims: March 26, 2020
DHARMRAJ ALUMINIUM: CRISIL Keeps INR20cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dharmraj Aluminium
Industries Private Limited (DAIPL) continues to be 'CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with DAIPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 DAIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DAIPL 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 DAIPL continues to be 'CRISIL D Issuer not
cooperating'.
DAIPL, incorporated in 2011, manufactures aluminium ingots. The
company is currently promoted and managed by Mr. Vijay C Gujar and
Mr. Bharat B Gujar. DAIPL has a manufacturing facility in
Aurangabad (Maharashtra) with a capacity of 18,000 tonne per
annum.
ERAWAT PHARMA: CRISIL Lowers Rating ons INR11cr Loans to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Erawat Pharma
Limited (EPL) to 'CRISIL B+/Stable Issuer not cooperating' from
'CRISIL BB/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.41 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 4.59 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with EPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 EPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EPL 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 EPL revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB/Stable Issuer not cooperating'.
Established in 1997, Erawat Pharma Limited (EPL) is involved in
manufacturing and exports of empty hard gelatin (EHG) capsules. EPL
manufactures different size of capsules with different possible
combinations of colour. The company has current manufacturing
capacity of 3.6 billion capsules annually; and is owned & managed
by the Jain family, who has been in the business for nearly three
decades.
EVERON CASTINGS: Ind-Ra Lowers Long Term Issuer Rating to 'C'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Everon Castings
Private Limited's (ECPL) Long-Term Issuer Rating to 'IND C (ISSUER
NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING)' The
issuer did not participate in the rating exercise, despite
continuous requests and follow-ups by the agency. 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 instrument-wise rating actions are:
-- INR196.7 mil. Term loan (long-term) due on March 2025
downgraded with IND C (ISSUER NOT COOPERATING) rating;
-- INR210 mil. Fund-based limits (long-term/ short-term)
downgraded with IND C (ISSUER NOT COOPERATING) / IND A4
(ISSUER NOT COOPERATING) rating; and
-- INR30 mil. Non-fund-based limits (short-term) downgraded 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 the National Company Law Tribunal's order to
commence the liquidation of ECPL.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months could
result in an upgrade.
COMPANY PROFILE
Incorporated in 2007, Everon Castings is engaged in the
manufacturing of carbon steel, alloy steel, and stainless steel
castings.
FAIRDEAL CONSUMER: CRISIL Lowers Rating on INR5.11cr Loan to B-
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
Fairdeal Consumer Durables Private Limited (Fairdeal) to 'CRISIL
B-/Stable' from 'CRISIL B/Stable' while short term rating has been
reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Reaffirmed)
Cash Credit 4.1 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Proposed Working 5.11 CRISIL B-/Stable (Downgraded
Capital Facility from 'CRISIL B/Stable')
The downgrade reflects deterioration in the company's business risk
profile and weak debt protection metrics. Revenue was INR13.86
crore in FY 2019 against INR24.66 crore a year earlier and is
expected to be INR12 - 15 crore in fiscal 2020 due to lower offtake
of products. Furthermore, there were operating losses of 13.96% in
FY 19 against operating profit of 1% a year ago due to poor fixed
cost absorption and writeoff of dealer incentives. Going forward,
with the decreasing scale of operations, the financial risk profile
is expected to deteriorate with subdued debt protection metrics and
weakened net worth.
CRISIL's ratings on the bank facility of Fairdeal continues to
reflect on the below-average financial risk profile and the
geographical concentration in revenue of the company. These
weaknesses are partially offset by the established relationships of
the company with principals.
Key Rating Drivers & Detailed Description
Weaknesses:
* Below-average financial risk profile: Fairdeal has a below
average financial risk profile marked by negligible net worth as on
March 31, 2019 and high gearing for the same period. Debt
protection metrics are also subdued as on March 31, 2019 due to
operating losses and weak capital structure. Financial risk profile
is likely to remain weak over the medium term.
* Geographical concentration in revenue: Fairdeal is an authorized
distributor of mobile handsets of Micromax. It is also an
authorized distributor for Morphy Richards and Oster range of home
appliances. These products are sold to local dealers and retailers
in Bengaluru. As the company derives more than 80 per cent of its
revenue from distribution of these products in Bengaluru, it
remains exposed to high geographical concentration risk. CRISIL
believes that though Fairdeal's scale of operations will improve
over the medium term, the same will remain exposed to geographical
concentration risk
Strength:
* Established relationships with principals: Fairdeal's
longstanding presence and established distribution network of 300
retailers/dealers in Bengaluru have led to strong relationships
with principals. It has been associated with Murphy Richards India
for over 10 years, and was awarded dealerships of Micromax mobile
handsets, Apple India's iPods and iPads, Dell India's mobile
handsets (distribution of Apple's and Dell's products has been
discontinued) and home appliances of local brands. CRISIL believes
that the proprietor's extensive experience will help the firm
sustain its business risk profile over the medium term.
Liquidity Stretched
Bank limit utilization is high at around 87 percent for the past 12
months ended November, 2019. Cash accrual are expected to be over
low though there are no repayment obligations for the company.
Current ratio was average at 1.2 times on March 31, 2019. The
promoters are likely to extend support in the form unsecured loans
in case of any exigency.
Outlook: Stable
CRISIL believes Fairdeal will benefit over the medium term from
established relationships with its principals.
Rating Sensitivity factors:
Upward Factors:
* Increase in revenue to more than INR20 Crore, and operating
margin turnaround at 2%, resulting in more-than-expected
accrual.
* Improvement in gross current assets days due to better debtor
realization.
Downward Factors:
* Weak demand, stretch in receivables, or pile-up of inventory
adversely affecting liquidity
* Substantial decline in revenue, and operating loss of beyond
10%, resulting in less-than-expected accrual.
Promoted by Mr. Devi Dasan and his wife, Ms. R Saraswathy, in 1999,
Fairdeal was an authorized distributor of Micromax mobile handsets.
It is also an authorized distributor of Morphy Richards and Oster
range of home appliances in Bengaluru.
FENIX PROCESS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Fenix Process
Technologies Private Limited (FPTPL) continues to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 8 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 6.5 CRISIL D (ISSUER NOT
COOPERATING)
Export Packing 8 CRISIL D (ISSUER NOT
Credit COOPERATING)
Proposed Long Term 1.02 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 6.48 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with FPTPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 FPTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FPTPL 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 FPTPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2006 and based in Pune, FPTPL is promoted by Mr. M
V Rao. The company undertakes process engineering and
manufacturing, involving the provision of complete design,
engineering, and equipment solutions for distillation and other
mass-transfer operations.
FILTERATION ENGINEERS: CRISIL Cuts Rating on INR4cr Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Filteration
Engineers India Private Limited (FEIPL) to 'CRISIL B+/Stable/CRISIL
A4 Issuer not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5.5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 4.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with FEIPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 FEIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FEIPL 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 FEIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer not
cooperating'.
Incorporated in 1994, FEIPL promoted by Mumbai-based Agarwal
family. The company manufactures industrial filters and strainers.
The company's manufacturing facilities is in Rabale (Maharashtra).
FUSION GRANITO: CRISIL Keeps B+ in INR20cr Loan in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Fusion Granito
Private Limited (FGPL) continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.4 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 7 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 20 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with FGPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 FGPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FGPL 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 FGPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in April 2017, FGPL is promoted by Mr Vijay Fefar, Mr
Bhavin Fefar, Mr Bharat Loriya, Mr Mahesh Loriya, Mr Jagdish
Loriya, and Mr Prakash Kalola. The company is establishing a
greenfield project for manufacturing of glazed (digitally printed)
vitrified tiles. Its manufacturing facility will be in Morbi,
Gujarat with an installed capacity of 60,800 tonne per annum (7000
boxes per day). Commercial operations are expected to commence from
January 2018.
HANDUM INDUSTRIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Handum Industries Limited
Registered office:
Survey No. 296/7/7, 8 & 11
Sheri-bollarum, Jinnaram Mandal
Medak District, Telangana 502319
Corporate office:
18, Nagarjuna Hills
Punjagutta
Hyderabad 500082
Insolvency Commencement Date: March 4, 2020
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: August 30, 2020
Insolvency professional: Ramachander Rao Bikumalla
Interim Resolution
Professional: Ramachander Rao Bikumalla
8-2-401/S/2, Sheetal Enclave
Road No. 5, Banjara Hills
Hyerabad 500034
E-mail: brremailid@gmail.com
- and -
503, SS Residency
Shanti Nagar, Masab Tank
Hyderabad 500028
E-mail: cirp.handum@gmail.com
Last date for
submission of claims: March 24, 2020
IL&FS LTD: Directed to Conclude Resolution in Next 3 Months
-----------------------------------------------------------
Financial Express reports that the National Company Law Appellate
Tribunal (NCLAT) on March 12 directed the government-appointed
board of the debt-laden IL&FS to conclude resolution of all its
entities, preferably, within the next three months and distribute
receivables on a pro-rata basis, as was suggested by the Uday
Kotak-led IL&FS Board.
According to the FT, the appellate tribunal also said the National
Company Law Tribunal (NCLT) or the appellate tribunal has ample
power to pass interim order in terms of Section 242(4) of the
Companies Act and there was no need to modify or recall such orders
issued earlier. "In India, there is no provision for group
insolvency. IL&FS and its entities, being financial service
providers, no application under Section 7, or 9 or 10 of the
Insolvency and Bankruptcy Code (IBC) can be filed against them.
Parties have to move before the tribunal by filing petition for
winding-up," the NCLAT said in its March 12 order.
In an affidavit submitted to the appellate tribunal on January 9,
2020, the IL&FS Board had submitted a revised distribution
framework for distribution of the financial bid amounts/termination
amount and settlement amounts for all set of creditors, FE says.
It wanted to recover the resolution process costs first and then,
up to the liquidation value to the creditors in accordance with the
waterfall mechanism under section 53 of the IBC and the excess
amount was proposed to be distributed on a pro-rata basis to each
class of creditors of the relevant group company.
"The maximisation of the asset and distribution of it to all the
stakeholders are the object to be kept in mind while following any
resolution framework for the IL&FS group companies," the NCLAT
said, adding that October 15, 2018, would be treated as the cut-off
date for initiation of the resolution process of the IL&FS and
group companies, FE relays.
Of the 302 IL&FS group companies, with a combined debt of around
INR91,000 crore, as on March, 2018, 133 were incorporated outside
India and as such are outside the territorial jurisdiction, FE
discloses.
FE relates that the remaining 169 companies, incorporated
domestically, have been divided into three categories on the basis
of their debt servicing ability. 'Green' entities are those which
can pay all their obligations while 'ambers' are those that can
meet their obligations only partially. 'Reds' are those which
cannot meet any of their obligations.
In order to not have any contagion effect on the financial markets
and the NBFC sector, the government too stepped in and got the NCLT
permission on October 1, 2018, to supersede the Board and appointed
a six-member board with Uday Kotak as the non-executive chairman,
FE says. Though the NCLT Mumbai had allowed a change of management
of IL&FS, it rejected, on October 12, 2018, its plea for a
moratorium on payments.
FE adds that the NCLAT also allowed applications for renewal of the
fixed deposits and allowed them to be renewed for another period of
three months. Other Interlocutory Application in which other prayer
has been made will be taken up on the subsequent dates as may be
fixed. The appellate tribunal has scheduled on April 14 the matter
for 'orders'.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
3, 2018, the Indian Express said that the Indian government on Oct.
1, 2018, stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a series
of its debt payments. This was said to be an attempt to restore the
confidence of financial markets in the credibility and solvency of
the infrastructure financing and development group.
KAMACHI INDUSTRIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Kamachi Industries Limited
(Formerly Kamachi Sponge & Power Corporate Limited)
ABC Trade Centre, Old No. 50, (New No. 39)
3rd Floor, Anna Salai, Chennai
Tamil Nadu 600002
Insolvency Commencement Date: February 19, 2020
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: August 17, 2020
Insolvency professional: Mr. Vikas Prakash Gupta
Interim Resolution
Professional: Mr. Vikas Prakash Gupta
C/o Dipti Enterprises
55, Nehru Putla
Itwari, Nagpur
Maharashtra 440002
E-mail: vikas.gipta@bngca.com
- and -
New No. 37/4, Vasantham II
Main Road, Alwarthiru Nagar Annexe
Chennai, Tamil Nadu 600087
E-mail: ip.kamachi@gmail.com
Last date for
submission of claims: March 10, 2020
LEEL ELECTRICALS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Leel Electricals Limited
Registered office:
Unit No. 8 Block-A
Kakrala Main Road
Sector 80 Industrial Area
Phase-II Noida
Gautam Budha Nagar
Uttar Pradesh 201305
Corporate office:
159, Okhla Industrial Estate
Phase-III, New Delhi 110020
Manufacturing Plants:
A-146, (B&C) RIICO Industrial Area
Bhiwadai Distt. Alwar
Rajasthan 301019
Plot No. 16-17 Industrial Area
Kala-Amb, Trilokpur Road
Sirmour, Nahan
Himachal Pradesh
Plot No. 24, Sector 2
IIE, SIDCUL Pantnagar
Uttarakhand
Plot No. S21 & 22, Non SEZ
Phase III, Sipcot Road
Mugundarayapuram, Ranipet
Vellore Distt, Tamilnadu
Bahadarabad Mehdood
Industrial Park
2 Salempur
SIDCUL, Haridwar
Uttarakhand
Village Nizampur
Tauru-Rewari Tehsil Tauru
Dist. Mewat, Haryana
Insolvency Commencement Date: March 4, 2020
Court: National Company Law Tribunal, Allahabad Bench
Estimated date of closure of
insolvency resolution process: August 30, 2020
(180 days from commencement)
Insolvency professional: Arvind Mittal
Interim Resolution
Professional: Arvind Mittal
264, Sector 55
Faridabad
Haryana 121004
E-mail: arvindmittal81@yahoo.in
- and -
F-1, Milap Nagar
Uttam Nagar
New Delhi 110059
E-mail: leelelectricals.rp@gmail.com
Last date for
submission of claims: March 18, 2020
LIMTEX AGRI: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Limtex Agri Udyog Limited
Mouza, P.O. Chital Ghata (Bidhannagar)
Darjeeling WB 734426
Insolvency Commencement Date: February 26, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: August 23, 2020
Insolvency professional: Mr. Jitendra Lohia
Interim Resolution
Professional: Mr. Jitendra Lohia
Klass Insolvency Resolution Professionals
Pvt. Ltd.
Todi Chambers
2 Lal Bazar Street
2nd Floor, Room No. 204 & 205
Kolkata 700001, West Bengal
E-mail: jitulhoia@knjainco.com
cirp.limtex@gmail.com
Last date for
submission of claims: March 19, 2020
LNM INSTITUTE: CRISIL Lowers Rating on INR10cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of The LNM
Institute of Information Technology (LNM) to 'CRISIL B+/Stable
Issuer not cooperating' from 'CRISIL BB+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 10 CRISIL B+/Stable (ISSUER
Bank Loan Facility NOT COOPERATING; Revised
from 'CRISIL BB+/Stable
ISSUER NOT COOPERATING')
CRISIL has been consistently following up with LNM for obtaining
information through letters and emails dated November 30, 2019 and
February 6, 2020 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 LNM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on LNM 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 LNM revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
Founded in 2002 in Jaipur by the Government of Rajasthan and the
Lakshmi and Usha Mittal Foundation, LNM provides higher education
in the fields of science, technology, engineering, arts, and
management. It offers courses in computer science and engineering,
electronics and communication engineering, communication and
computer engineering, and mechanical-mechatronics engineering. The
institute has a 100-acre campus in Jaipur. First academic session
was in July 2003 and LNM was granted deemed-to-be university status
by the University Grants Commission in 2006.
MACHINE HOUSE: CRISIL Lowers Rating on INR2.75cr Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Machine House
India Private Limited (MHIPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Long Term Loan 2.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Packing Credit 1.5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
CRISIL A4+ ISSUER NOT
COOPERATING)
Proposed Long Term 5.25 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MHIPL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 MHIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MHIPL 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 MHIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer not
cooperating'.
Established in 1986, MHIPL is an ISO-certified manufacturer and
exporter of vibration isolation systems. Its products include
anti-vibration mounts, plates, and pads. The company has technical
collaboration and a buy back arrangement with BVT.
MARIYA HEALTHCARE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Mariya Healthcare Private Limited
No. 8/513, Jose Mangaly Apartment
Near Anakkallu Quarry
Munekkar P.O., Karimba
Palakkad, Pin 678597
Kerala, India
Insolvency Commencement Date: March 4, 2020
Court: National Company Law Tribunal, Calicut Bench
Estimated date of closure of
insolvency resolution process: August 31, 2020
Insolvency professional: Ms. Baiju Parambil
Interim Resolution
Professional: Ms. Baiju Parambil
Room No. 7/845D-6, IIIrd Floor
Koyenco Bazar, S.M. Street
Calicut 673001, Kerala
E-mail: cabaiju@yahoo.in
mariyahealthcarecirp@yahoo.com
Last date for
submission of claims: March 20, 2020
MATRIX BOILERS: CRISIL Lowers Rating on INR4cr Bank Loan to D
-------------------------------------------------------------
CRISIL has downgraded the ratings on the bank facilities of Matrix
Boilers Private Limited (MBPL) to 'CRISIL D/CRISIL D/Issuer Not
Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' since the account has been classified as
Non-Performing Assets (NPA) due to weak liquidity.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 4 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Foreign Bill 0.5 CRISIL D (ISSUER NOT
Discounting COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Letter of Credit 0.5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Packing Credit 1 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 4 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MBPL for obtaining
information through letters and emails dated June 28, 2018 and
December 10, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as 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 MBPL, which restricts CRISIL's
ability to take a forward-looking view on the entity's credit
quality. CRISIL believes information available on MBPL 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 downgraded the
ratings on the bank facilities of MBPL to 'CRISIL D/CRISIL D/Issuer
Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' since the account has been classified as
Non-Performing Assets (NPA) due to weak liquidity.
MBPL, set up in 2006, fabricates boiler and boiler components at
its facility in Pudukottai (Tamil Nadu). It is promoted by Mr N
Pandian, Mr A Sekar, Mr R Neelamegam, and Mr K Murugesan.
OKAY ESTATE: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Okay Estate Developers Private Limited
40 Harbour Crest
Tulsiwadi, Mazagaon
Mumbai 400010
Mumbai City
MH 000000
India
Insolvency Commencement Date: March 4, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: August 31, 2020
Insolvency professional: Mr. Miling Kasodekar
Interim Resolution
Professional: Mr. Miling Kasodekar
MRM Associates, Company Secretaries
77, Vijayanagar Colony
2147, Sadashiv Peth
Pune 411030
E-mail: milind.kasodekar@mrmcs.com
Last date for
submission of claims: March 20, 2020
OMKAR NESTS: CRISIL Lowers Rating on INR24.5cr Term Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Omkar Nests Private Limited (ONPL) to 'CRISIL D' from 'CRISIL
BB-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 24.5 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delays in servicing of term loan obligations
by the company.
The rating also reflects the firm's weak financial risk profile,
susceptibility to risks and cyclicality inherent in the Indian real
estate industry. These rating weaknesses are partly offset by the
promoters' extensive experience in the real estate industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Delay in debt servicing: ONPL has not been able to service its
term debt obligations on time. The instalment of INR5.50 crore
which was due in January 2020 is yet to be repaid.
* Weak financial risk profile: Capital structure is constrained by
moderately high gearing and modest networth which stood at 2.8
times and INR13.74 crore respectively in Fiscal 2019. Net cash
accrual to total debt and interest coverage ratios were at 0.10
time and 1.7 times, respectively in fiscal 2019.
* Susceptibility to risks and cyclicality inherent in the Indian
real estate industry: The real estate sector in India is cyclical
and marked by volatile prices, and a highly fragmented market
structure because of the presence of a large number of regional
players.
Strength
* Promoters' extensive experience: The promoters have been in the
real estate business for over 15 years, and have completed
residential projects like Royal Nest (Jammu), Royal Nest Apartments
(Jammu), and Galaxy Vega (Greater Noida). Moreover, healthy
relationships with key stakeholders such as Greater Noida
Industrial Development Authority (GNIDA) and Jammu Development
Authority should continue to help in land acquisition and support
business risk profile.
Liquidity Poor
Liquidity is poor, as indicated by instances of delay in repayment
of term debt.
Rating Sensitivity factors
Upward Factors
* Track record of timely debt servicing for at least 90 days,
* Significant improvement in operating performance, with adequate
cash accrual and a stronger financial risk profile.
Incorporated in 2000, ONPL is a Delhi-based developer of real
estate. The promoters, Mr Omkar Nath, Mr Kamal Krishan and Mr Vimal
Kumar, have experience of more than a decade in constructing
highrises in National Capital Region and Jammu. ONPL has taken, two
residential township projects, both named Royal Nest, are on the
market in Greater Noida and Jammu.
PRAVEEN ELECTRICAL: CRISIL Cuts Rating on INR11cr Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded the rating on the bank facilities of Praveen
Electrical Works (PEW) to 'CRISIL D/CRISIL D/Issuer Not
Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' since the account has been classified as Special
Mention Accounts (SMA) due to overdrawal in working capital limit
for more than 30 days.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 11 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Overdraft 6 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term
Bank Loan Facility 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with PEW for obtaining
information through letters and emails dated September 30, 2019,
October 29, 2018 and November 28, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as 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 PEW. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PEW 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 downgraded the
rating on the bank facilities of PEW to 'CRISIL D/CRISIL D/Issuer
Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' since the account has been classified as Special
Mention Accounts (SMA) due to overdrawal in working capital limit
for more than 30 days.
PEW was set up in 1994 as a sole proprietorship firm by Mr Prakash
C Angadi. The firm undertakes turnkey projects for laying
electrical cables and poles, and electrification projects. It has a
facility in Karnataka.
RAJAHMUNDRY GODAVARI: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Rajahmundry Godavari Bridge Limited
Gammon House, Veer Savarkar Marg
Prabhadevi, Mumbai
MH 400025
IN
Insolvency Commencement Date: February 27, 2020
Court: National Company Law Tribunal, Navi Mumbai Bench
Estimated date of closure of
insolvency resolution process: August 25, 2020
(180 days from commencement)
Insolvency professional: Vishal Ghisulal Jain
Interim Resolution
Professional: Vishal Ghisulal Jain
Office No. 502
G Sqaure Business Park
Opp. Sanpada Station
Sector-30A, Vashi
Navi Mumbai
Maharashtra 400703
E-mail: vishal@cavishaljain.com
rgbl.cirp@gmail.com
Last date for
submission of claims: March 17, 2020
RANGAR BREWERIES: CRISIL Keeps B on INR13 Loans in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rangar Breweries
Limited (RBL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 2.38 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 4.41 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RBL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 RBL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RBL 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 RBL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
RBL was incorporated in 1974. Mr. Kunal Yadav is its current
promoter. It manufactures rectified spirit, extra-neutral alcohol,
country liquor, Indian-made foreign liquor, and malt spirit. Its
factory is in Mehatpur (Himachal Pradesh) and registered office in
New Delhi.
SENBO ENGINEERING: CRISIL Maintains D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Senbo Engineering
Limited (SEL) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 154.68 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 118.00 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 7.32 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SEL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 SEL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SEL 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 SEL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Started as a partnership firm in the 1960s by Mr. Kajal Sengupta in
Kolkata, the firm was reconstituted as a private limited company in
1990 and incorporated as a public limited company in 2005. SEL
undertakes designing, engineering, and consultancy work for civil,
structural, and foundation engineering with specialisation in heavy
construction, piling, and underground tunneling for metro work. Mr.
Sengupta is the chairman and managing director of SEL.
STRAIGHT EDGE: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Straight Edge Contracts Private Limited
Ground Floor, 4, Dayanand Vihar
Main Vikas Marg
DL 110092
India
Insolvency Commencement Date: February 26, 2020
Court: National Company Law Tribunal, Ghaziabad Bench
Estimated date of closure of
insolvency resolution process: August 23, 2020
Insolvency professional: Ranjeet Kumar Verma
Interim Resolution
Professional: Ranjeet Kumar Verma
CS-53, 1F, Ansal Plaza
Sector-1, Vaishali
Ghaziabad 201010
India
E-mail: ranjeet@ranjeetcs.com
- and -
G 129, 1st Floor, Sector 63
Noida, UP 201301
E-mail: irp.ranjeetcs@gmail.com
Last date for
submission of claims: March 15, 2020
SUMERU PROCESSORS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sumeru
Processors Private Limited's (SPPL) Long-Term Issuer Rating to 'IND
D (ISSUER NOT COOPERATING)' from 'IND BB (ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. 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 instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits (long-
term/short-term) downgraded with IND D (ISSUER NOT
COOPERATING) rating;
-- INR50 mil. Proposed fund-based limit (long-term) downgraded
with Provisional IND D (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Proposed non-fund-based limit(short-term)
downgraded with Provisional 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 SPPL's delays in debt servicing, the details
of which are not available.
COMPANY PROFILE
SPPL was incorporated in 1986 by Mr. Dhiren Navlakha and Mr. Farhad
Suri and their families. The company commenced operations as a
trader for lime and other mineral products but is now engaged in
product distribution for Nestle India Ltd. and ITC Limited. In
addition, it manages Nestle India's vending work in Delhi NCR.
SYSCO INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Sysco Industries Limited
Registered office:
206, Rajhans Complex
Civil Char Rasta
Near Nirmal Children Hospital
Ring Road, Surat
Gujarat 395002
Insolvency Commencement Date: February 19, 2020
Court: National Company Law Tribunal, Surat Bench
Estimated date of closure of
insolvency resolution process: August 17, 2020
Insolvency professional: CA Kailash Thanmal Shah
Interim Resolution
Professional: CA Kailash Thanmal Shah
505, 21st Century Business Centre
Near World Trade Centre
Ring Road, Surat 395002
E-mail: ipktshah@gmail.com
sysco.cirp@gmail.com
Mobile: 9824150365
Last date for
submission of claims: March 19, 2020
TAVAS CONSTRUCTION: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Tavas Construction Private Limited
559, Anna Salai
Teynampet
Chennai 600018
Insolvency Commencement Date: March 11, 2020
Court: National Company Law Tribunal, Chennai Bench
Estimated date of closure of
insolvency resolution process: September 7, 2020
Insolvency professional: Mr. S.R. Krishnan
Interim Resolution
Professional: Mr. S.R. Krishnan
6, Khabag Castle
3B, Circular Road
Kodambakkam
Chennai 600024
E-mail: krishnansroman@gmail.com
- and -
"Sai Siva" 1st Floor
New No. 43, Old No. 21
Bazullah Road, T Nagar
Chennai 600017
E-mail: tavascirp@synergyipe.com
Last date for
submission of claims: March 25, 2020
TOSHNIWAL ENTERPRISES: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Toshniwal
Enterprises Controls Limited's Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING).'
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. 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 instrument-wise rating action is:
-- INR270 mil. Fund-based working capital limits (long-term)
downgraded and maintained in a non-cooperating category 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 delays in debt servicing by Toshniwal
Enterprises Controls Limited, the details of which are not
available with the agency.
COMPANY PROFILE
Incorporated on October 11, 1991, Toshniwal Enterprises Controls'
promoter directors are Rajesh Toshniwal and Kamal Kishore
Toshniwal. The company generates 70% of its revenue from providing
various services such as telecom test and measurement service,
telecom and broadcasting and others, and the rest from various
in-house network product sales.
UT LIMITED: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: UT Limited
Circular Court, 8th Floor
8, Acharya Jagadish Bose Road
Kolkata WB 700017
IN
Insolvency Commencement Date: February 28, 2020
Court: National Company Law Tribunal, Howrah Bench
Estimated date of closure of
insolvency resolution process: Ausgust 26, 2020
Insolvency professional: Mr. Pranab Kumar Chakrabarty
Interim Resolution
Professional: Mr. Pranab Kumar Chakrabarty
72/9, Saikh Para Lane
Howrah 711103
E-mail: pranabchakrabartypkc@yahoo.com
anuragcirp@gmail.com
Last date for
submission of claims: March 13, 2020
V3 ENGINEERS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: V3 Engineers Private Limited
#6/1, 6/2, 6/5, 7/1 Deganahalli
Near Budhihal Village
Nelamangala
Bangalore Rural District
Bangalore 562123
Insolvency Commencement Date: March 2, 2020
Court: National Company Law Tribunal, Bengaluru Bench
Estimated date of closure of
insolvency resolution process: August 29, 2020
Insolvency professional: CS Hari Babu Thota
Interim Resolution
Professional: CS Hari Babu Thota
#41/1, 2nd Floor, A Wing
11th Cross, 8th Main
2nd Block, Jayanagar
Bangalore 560011
E-mail: csharibabuthota@gmail.com
V3engineerscirp@gmail.com
Last date for
submission of claims: March 16, 2020
VODAFONE IDEA: JV Venture Boosted on India Payment Extension Bid
----------------------------------------------------------------
The Financial Times reports that Vodafone's Indian joint venture
was thrown a potential lifeline on March 16 after the government
proposed that telecoms groups should be given a period of 20 years
to pay about $13 billion in retrospective levies and penalties.
The FT relates that the application submitted to the Supreme Court
comes after it ruled in October that telecoms companies must pay
the historic fees within months, in a judgment that threatened the
survival of Vodafone Idea and hit foreign investor confidence.
It is unclear if the Supreme Court will accept the application when
it next meets, the FT says. At a hearing in February, the court
admonished the government and mobile carriers for "violating" its
orders and failing to follow its directions to deposit the fees,
threatening to initiate contempt proceedings.
"We have to wait to see what the Supreme Court says, it's a big
unknown," the FT quotes Abhimanyu Sofat, head of research at
financial services company IIFL in Mumbai, as saying. "Going
forward there are still question marks — even if they [Vodafone
Idea] stick around, they won't have enough cash flow to invest in
5G".
Shares in Vodafone Idea were up 1.8 per cent after March 16 trading
at INR5.70 after it announced it had paid another instalment of its
dues to the department of telecommunications and following news of
the government's application, according to the FT.
Vodafone Idea, a partnership between Kumar Mangalam Birla's Aditya
Birla Group and the UK-based operator, owes a total of INR547.54
billion (US$7.4 billion) to the government, while Bharti Airtel
owes INR259.76 billion (US$3.5 billion), according to court
documents cited by the FT.
The FT notes that Reliance Jio, the upstart network founded by
Asia's richest man Mukesh Ambani, has already cleared its dues of
INR1.95 billion (US$2.6 million) - a sum that is significantly
smaller than its competitors because it has only been in operation
since 2016.
Vodafone Idea has previously warned it would have to "shut shop" if
New Delhi did not intervene on the charges, the report states.
In the application, New Delhi proposed that telecoms licensees
affected by the judgment should have the option of paying the
remaining amount of dues in annual instalments over 20 years, using
a discount rate of 8 per cent, the FT says.
"Considering the huge amount which is payable by the telecom
service providers, there would be certain inevitable consequences
which may not be in anyone's' interest," said the government in its
application, the FT relays.
"The applicant is conscious of the fact that any immediate adverse
impact on the functioning of the telecom service providers would
not only have an adverse impact on the overall economy of the
nation but would also seriously harm the interest of the consumers
across the country."
Analysts have warned that a Vodafone Idea bankruptcy would in
effect transform India's telecoms market into a duopoly between Jio
and Bharti Airtel, the FT adds. Its collapse would also hit the
stressed banking sector and government tax revenue at a time of
weak economic growth in the country.
About Vodafone Idea
Vodafone Idea Limited operates as a telecom service provider. The
Company offers 2G, 3G, and 4G mobile services, as well as mobile
payments, advanced enterprise offerings, and entertainment.
Vodafone Idea serves customers in India.
As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 24, 2020, India Ratings and Research (Ind-Ra) downgraded
Vodafone Idea Limited's (VIL) Long-Term Issuer Rating to 'IND B'
from 'IND BBB-' while maintaining it on Rating Watch Negative
(RWN). The instrument, INR35 mil. Non-convertible debentures
(NCDs) ISIN#INE713G08046 issued on June 12, 2015 with a coupon rate
8.25% due on July 10, 2020 was given a IND B/RWN rating.
XICON INT'L: CRISIL Cuts Rating on INR3cr Loan to B+
----------------------------------------------------
CRISIL has revised the ratings on bank facilities of Xicon
International Limited (XIL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 2 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with XIL for obtaining
information through letters and emails dated August 31, 2019 and
February 6, 2020 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 XIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on XIL 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 XIL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer not
cooperating'.
Established in 1986, XIL manufactures industrial heat tracers and
undertakes mechanical works. It is - managed by Mr. PP Sukthankar
and Mr. Hemant KT. It has its manufacturing facility in Murbad,
Maharashtra.
YES BANK: Moody's Hikes Rating on Unsec. MTN Program to Caa1
------------------------------------------------------------
Moody's Investors Service upgraded Yes Bank Limited's long-term
foreign currency issuer and foreign currency senior unsecured MTN
program ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3
respectively.
In addition, Moody's has confirmed the bank's long-term foreign and
local currency bank deposit ratings at Caa1. Moody's has also
confirmed the bank's long-term domestic and foreign currency
Counterparty Risk Rating and long-term Counterparty Risk Assessment
at Caa1 and Caa1(cr) respectively.
Lastly, Moody's has affirmed Yes Bank's Baseline Credit Assessment
(BCA) and adjusted BCA at ca.
The rating outlook is positive. The rating action concludes the
review with direction uncertain that was initiated on Yes Bank's
ratings on March 6, 2020.
RATINGS RATIONALE
The upgrade of Yes Bank's long-term issuer rating to Caa1 from
Caa3, placing it at the same level as its long-term deposit
ratings, takes into account the bailout of the bank's depositors
and senior creditors under the Yes Bank Reconstruction Scheme, as
approved by the Indian Government (Baa2 negative) on March 13,
2020. The rating action also takes into account the confirmation by
the Indian authorities and Yes Bank that the moratorium on its
depositors and creditors will be lifted on March 18, 2020.
Based on the reconstruction scheme, State Bank of India (SBI, Baa2
negative, ba1) and six other Indian financial institutions have
infused INR100 billion as new equity capital into Yes Bank. The
rights, along with the terms and conditions of the bank's
depositors and senior creditors, remain unaffected by the planned
reconstruction.
Separately, INR84.15 billion Additional Tier 1 (AT1) bonds have
been written down in full to provide additional loss absorbing
capital against the bank's losses.
Given the new capital raised and the AT1 securities writedown,
Moody's expects Yes Bank's solvency has improved and that the
recovery rates for the banks' depositors and senior creditors will
be very high, supporting the current credit ratings.
Moody's has also affirmed the bank's BCA at ca. Despite the
reconstruction scheme and new capital infusion, the bank's
standalone viability is in question as the bank's deposit franchise
has significantly deteriorated since quarter ended September 30,
2019. Between October 1, 2019 to March 5, 2020, Yes Bank's deposits
declined by 34% and may weaken further once the moratorium is
lifted. As a result, Moody's expects that the bank will continue to
require liquidity assistance and forbearance from RBI immediately
after the moratorium is lifted and until its operations stabilize.
Moody's has also changed the rating outlook to positive to reflect
Moody's expectation that the bank's financial fundamentals can
improve due to the extraordinary support provided by the Indian
authorities. Such extraordinary support will provide the bank
sometime to rebuild its franchise, including its deposit base.
As part of the reconstruction scheme, the Indian authorities and
SBI have appointed new board members and a new MD & CEO to Yes
Bank. Moody's expects Yes Bank's risk appetite will decrease and
the bank's management framework will remain consistent and in line
with its lower risk appetite. Nevertheless, the bank's complex
shareholding structure could complicate governance and management
structures at the bank. Corporate governance remains a key credit
consideration and requires ongoing monitoring.
WHAT COULD CHANGE THE RATING UP
Moody's could upgrade the ratings if the bank's financial
fundamentals, including its depositor franchise, stabilize such
that the risk of losses to senior creditors and depositors further
declines.
WHAT COULD CHANGE THE RATING DOWN
A worsening of the bank's fundamentals due to an increase in asset
risk or a significant outflow of deposits after the RBI's
moratorium is lifted resulting in lower recovery rates for the
bank's creditors, could lead to a further downgrade of the bank's
ratings.
The principal methodology used in these ratings was Banks
Methodology published in November 2019.
Yes Bank Limited is headquartered in Mumbai and reported total
assets of INR2.9 trillion ($40.8 billion) at December 31, 2019.
Yes Bank Limited
Long-term foreign currency Issuer Rating, Upgraded to Caa1 from
Caa3, outlook changed to positive from rating under review
Long-term foreign and local currency Deposit Rating, Confirmed at
Caa1, outlook changed to positive from rating under review
Short-term foreign and local currency Deposit Rating, Affirmed NP
Foreign currency senior unsecured Medium-Term Note Program,
Upgraded to (P)Caa1 from (P)Caa3
Baseline Credit Assessment (BCA) and adjusted BCA, Affirmed ca
Long-term Counterparty Risk Assessment (CR Assessment), Confirmed
at Caa1(cr)
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term foreign and local currency Counterparty Risk Rating
(CRR), Confirmed at Caa1
Short-term foreign and local currency Counterparty Risk Rating
(CRR), Affirmed NP
Outlook: Changed to positive from rating under review
Yes Bank, IFSC Banking Unit Branch
Foreign currency senior unsecured Medium-Term Note Program,
Upgraded to (P)Caa1 from (P)Caa3
Foreign currency senior unsecured debt rating, Upgraded to Caa1
from Caa3, outlook changed to positive from rating under review
Long-term Counterparty Risk Assessment, Confirmed at Caa1(cr)
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term foreign and local currency Counterparty Risk Rating
(CRR), Confirmed at Caa1
Short-term foreign and local currency Counterparty Risk Rating
(CRR), Affirmed NP
Outlook: Changed to positive from rating under review
=========
M A C A U
=========
MELCO RESORTS: Moody's Reviews Ba2 CFR for Downgrade on COVID-19
----------------------------------------------------------------
Moody's Investors Service placed under review for downgrade the
ratings of Melco Resorts Finance Limited, Studio City Finance
Limited and Studio City Company Limited.
The affected ratings are (1) MRF's Ba2 corporate family rating and
senior unsecured rating; (2) Studio City Finance's B1 CFR and B2
senior unsecured rating; and (3) Studio City Company's Ba3 senior
secured rating.
The outlooks for the three entities have been changed to rating
under review from stable.
RATINGS RATIONALE
"The review for downgrade reflects our expectation that the Melco
group companies' very weak earnings and cash flow amid the
coronavirus outbreak will significantly stretch their financial
metrics, at least through 2020," says Sean Hwang, a Moody's
Analyst.
"In particular, protracted weakness in their core Macau businesses
will likely lead to significant negative free cash flow and erode
the companies' balance sheet strength," adds Hwang.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The gaming sector
has been one of the sectors most significantly affected by the
shock given its sensitivity to consumer demand and sentiment.
More specifically, the weaknesses in the Melco group companies'
credit profile, including its exposure to Macau have left it
vulnerable to shifts in market sentiment in these unprecedented
operating conditions and the companies remain vulnerable to the
outbreak continuing to spread.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The actions reflect the impact on the Melco group
companies of the breadth and severity of the shock, and the broad
deterioration in credit quality it has triggered.
The Melco group under Melco Resorts & Entertainment Limited (MRE)
generates most of its consolidated EBITDA from its gaming
operations in Macau, where gaming revenue dropped 88% in February
2020 from a year earlier. The steep decline was the result of
quarantine and travel restrictions put in place by both China's and
Macau's governments, along with public fear of contagion and a
15-day mandatory casino closure during the month.
Moody's expects a severe double-digit drop in the group's revenue
this year from a year earlier, and a much larger drop in EBITDA,
given significant fixed expenses. Consequently, MRE's and Studio
City Finance's adjusted debt/EBITDA will likely more than double in
2020 from the estimated 3.4x and 4.2x for 2019.
The drop in earnings coupled with the companies' planned capital
spending for the year -- including the Studio City phase two
expansion and MRE's integrated resort development in Cyprus -- also
means the companies will likely record significant negative free
cash flow this year.
In a scenario with a severe and prolonged outbreak, the companies'
large negative free cash flow would materially reduce liquidity
holdings or increase debt, or both.
While Moody's expects the companies' operating performance and
financial metrics will recover once the virus-related disruptions
ease, the timing and pace of such recovery remains highly
uncertain.
That said, MRE held consolidated cash of $1.4 billion at the
beginning of 2020, which Moody's expects to be sufficient to cover
its cash needs for the next 12 months. And while Studio City
Finance's existing cash will be insufficient to cover the planned
capital spending for this year, this concern is mitigated by the
likelihood of support from the parent in case of need and Moody's
view that spending can be delayed as needed depending on the
arrangement of necessary funding.
MRF's credit quality and ratings are driven by the consolidated
credit quality of its parent, MRE, given that MRF is 100%-owned by
MRE with limited ring-fencing mechanisms. In addition, Moody's
expects MRE will continue to rely heavily on MRF for profit
generation and funding.
Studio City Finance's ratings continue to incorporate a one-notch
uplift reflecting Moody's view that its parent MRE is likely to
extend extraordinary support to it in times of need, given the
company's strategic importance to the parent and the parent's good
liquidity holdings.
The ratings also factor in the companies' exposure to changing
demographics and consumer preferences, as well as the high
concentration of ultimate ownership in a controlling shareholder.
These risks are mitigated by the Melco group's good track record of
managing the social aspect of its operations, the positioning of
its core market of Macau as a destination gaming hub, and the board
oversight exercised through independent board directors.
Moody's review will focus on (1) developments associated with the
coronavirus-related disruptions and its effects on the companies'
operations and capital structure; (2) the severity and length of
the slump in gaming revenue; and (3) the companies' ability to
preserve liquidity during this challenging period.
The ratings could be downgraded if Moody's believes the companies'
earnings and financial metrics are unlikely to recover to
pre-coronavirus levels in a timely manner or if their liquidity
weakens significantly. This situation can result from a protracted
severe impact of the coronavirus outbreak or continuation of an
aggressive financial policy during the earnings downturn.
The principal methodology used in these ratings was Gaming Industry
published in December 2017.
Melco Resorts Finance Limited is a wholly-owned subsidiary of Melco
Resorts & Entertainment Limited, which is listed on the NASDAQ
exchange and is majority-owned by the Hong Kong-listed Melco
International Development Ltd. All of Melco Resorts Finance's
operations are currently located in Macau.
Through Melco Resorts (Macau) Limited, Melco Resorts Finance
operates two wholly-owned casinos in the territory, namely, Altira
Macau and City of Dreams. It also has non-casino based operations
at its Mocha Clubs, and provides both gaming and non-gaming
services to Studio City.
Studio City Finance Limited is a holding company incorporated in
the British Virgin Islands. Through its subsidiaries, it develops
and operates the Studio City property, an Asian-focused integrated
gaming and entertainment resort located at Cotai in Macau.
=================
S I N G A P O R E
=================
JEPAK HOLDINGS: Seeks Judicial Management
-----------------------------------------
Hafiz Yatim at theedgemarkets.com reports that Jepak Holdings Sdn
Bhd, the company that was initially awarded an RM1.25 billion solar
hybrid project involving 369 schools in rural Sarawak which is
central to Datin Seri Rosmah Mansor's graft trial, is now seeking
judicial management to fix its financial problems.
This application was filed at the High Court in January following
winding-up petitions made by two companies who are sub-contractors
of its project, the report says.
Judicial management is a method of debt restructuring where a
qualified insolvency practitioner is appointed as an independent
judicial manager to rehabilitate a financially-troubled company,
the report notes.
Once a court order for judicial management is granted, a moratorium
will be put in place to prevent legal action from being initiated
against the company, as well as from it being wound up.
According to theedgemarkets.com, in Jepak's ex-parte originating
summons, it wanted the court order to appoint one Datuk Mohd
Afrizan Husain as the judicial manager for a period of six months
and for the present winding-up petitions to be dismissed.
Jepak landed in trouble when the Ministry of Education (MoE), which
had awarded the company the solar power hybrid project in a
contract dated June 20, 2017, set up a task force in Oct 2018 to
investigate allegations that it forged the signatures and seals of
school principals to make fraudulent claims from the Ministry.
"As a result of this, the MoE had stopped paying Jepak and this led
the company to be unable to continue with the project," it said in
papers filed in the High Court which were sighted by
theedgemarkets.com.
"The Ministry issued a termination notice dated Oct 2, 2019, but in
the meantime throughout the year, it found a white knight to
continue with the project," the court documents stated.
At the same time, Jepak had commenced legal proceedings to claim
MYR7.8 billion against MoE's asset management division and the
Malaysian Government for purportedly terminating the contract
unlawfully, relays theedgemarkets.com.
theedgemarkets.com relates that MastiJaya Sdn Bhd, one of the
companies petitioning to wind up Jepak, sought to intervene in the
company's application for judicial management.
Meanwhile, Tenaga Nasional Bhd's TNB Repair and Maintenance Sdn
Bhd, which is another creditor of Jepak which is owed RM43 million,
was allowed by the High Court judicial commissioner Nadzarin Wok
Nordin to intervene in Jepak's application and bring its dispute
over the debt to arbitration, theedgemarkets.com reports.
theedgemarkets.com says Nadzarin also heard submissions from
Jepak's counsel De Zhen Shim, who opposed MastiJaya's application
to intervene in the company's application.
Meanwhile, MastiJaya was represented by Datuk Wong Rhen Yen,
theedgemarkets.com discloses.
theedgemarkets.com says the court has fixed March 24 for its
decision on MastiJaya's application to intervene and also to hear
Jepak's application to appoint a judicial manager.
Besides MastiJaya, another company named BHJ Enterprise Sdn Bhd
also has a winding-up order on Jepak Holdings.
Rosmah is facing graft charges for accepting a total of RM6.5
million and soliciting RM187.5 million from former Jepak managing
director Saidi Abang Samsudin, in exchange for allegedly helping
the company clinch the project, notes theedgemarkets.com.
*********
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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2020. All rights reserved. ISSN: 1520-9482.
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