/raid1/www/Hosts/bankrupt/TCRAP_Public/200320.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, March 20, 2020, Vol. 23, No. 58
Headlines
A U S T R A L I A
AQUAGUARD INVESTMENTS: First Creditors' Meeting Set for March 27
CGA (AUST): First Creditors' Meeting Set for March 27
LIBERTY SERIES 2019-1: Moody's Upgrades Class F Notes to Ba2
SHIRE LIND: First Creditors' Meeting Set for March 27
UNIVERSITY CO-OPERATIVE: 2nd Creditors' Meeting Set for March 27
C H I N A
CITIC RESOURCES: S&P Alters Outlook to Stable & Affirms 'BB-' ICR
HILONG HOLDING: Fitch Puts B+ LT IDR on Rating Watch Negative
I N D I A
8K MILES: CARE Lowers Rating on INR10cr Loan to 'C'
ANDHRA CEMENTS: CARE Reaffirms 'D' Rating on INR915.79cr LT Loan
ASHOK BRICKS: CRISIL Cuts Ratings on INR30.3cr Loans to 'D'
C. P. INDUSTRIES: CRISIL Keeps C in INR15cr Loan in Not Cooperating
C.A. VEGE FRUIT: CARE Reaffirms 'D' Rating on INR8.0cr LT Loan
CEASAN GLASS: CRISIL Keeps 'D' Loan Ratings in Not Cooperating
CREATIVE LOOMS: CRISIL Keeps D on INR18cr Debt in Not Cooperating
DANIA ORO: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
DHANTURI GROUP: CRISIL Cuts Ratings on INR20cr Loans to 'B+'
DWARIKAMAYEE BHANDAR: CRISIL Keeps D Ratings in Not Cooperating
DYNAMIX CHAINS: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
EARTH STONE: CRISIL Keeps B on INR12.5cr Loans in Not Cooperating
EIPL PROJECTS: CRISIL Lowers Rating on INR30cr LT Loan to B+
EM CEE CEE: CRISIL Lowers Rating on INR9cr Cash Loan to B+
ESSEM JUTE: CRISIL Maintains D Debt Ratings in Not Cooperating
EVERON CASTINGS: Ind-Ra Corrects March 12 Ratings Release
FABULOUS BUILDERS: CRISIL Keeps B+ on INR6cr Debt in NonCooperating
FERNAS CONSTRUCTION: Insolvency Resolution Process Case Summary
GAGAN RICE: CRISIL Keeps B on INR8cr Loans in Not Cooperating
GANPATI FOODS: CRISIL Keeps B on INR7cr Loans in Not Cooperating
GCRG MEMORIAL: Ind-Ra Lowers Rating on INR105MM Loan to 'D'
GODAVARI FOUNDATION: CRISIL Cuts Rating on INR10cr LT Loan to B+
HIMACHAL FLOUR: CRISIL Assigns 'B+' Ratings to INR10cr Loans
INDLAB EQUIPMENTS: Insolvency Resolution Process Case Summary
JET AIRWAYS: NCLT Allows 90-Day Extension for Bankruptcy Process
KANCHI KARPOORAM: Ind-Ra Keeps BB- Debt Rating in Non-Cooperating
KOLEY MULTIPURPOSE: CARE Withdraws D Rating on Bank Facilities
KONDUSKAR TRAVELS: CRISIL Hikes Rating on INR11.5cr Loan to B-
KRISHNA EDUCATIONAL: Ind-Ra Keeps B+ Loan Rating in Non-Cooperating
LV GLOBAL PRIVATE: Insolvency Resolution Process Case Summary
MAGPPIE INTERNATIONAL: Insolvency Resolution Process Case Summary
MAINI CONSTRUCTION: Ind-Ra Lowers LongTerm Issuer Rating to 'C'
MANTHARAGIRI TEXTILES: Ind-Ra Migrates B+ Ratings to NonCooperating
NHS INDUSTRIES: CARE Keeps D on INR12.03cr Loans in Not Cooperating
NILKANTH COTTON: CRISIL Lowers Rating on INR10cr Cash Loan to D
OXFORD FACILITIES: Insolvency Resolution Process Case Summary
PATSPIN INDIA: CARE Keeps D on INR143.8cr Loans in Not Cooperating
POWER MAX: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
REWA AGROTECH: CARE Keeps D on INR11.7cr Loans in Not Cooperating
SAHAPUR COLD: CARE Withdraws 'D' Rating on Bank Facilities
SAHARA ENGINEERING: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
SHANTOL GREEN: CARE Withdraws 'D' Rating on Bank Facilities
TARANG EXPORTS: Insolvency Resolution Process Case Summary
TAURUS EXPORTS: Insolvency Resolution Process Case Summary
TECHNO TRAK: Ind-Ra Migrates BB LT Issuer Rating to NonCooperating
VALLABH STEELS: CRISIL Lowers Rating on INR39cr Cash Loan to D
VIKRANT FORGE: Ind-Ra Migrates 'D' Issuer Rating to NonCooperating
VISHVAS POWER: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
ZAVISTA REALTORS: Insolvency Resolution Process Case Summary
J A P A N
[*] JAPAN: Firms Braced for Drawn-Out Virus Hit; Recession Looms
P H I L I P P I N E S
[*] Philippine Airlines Want Government Aid on Credit Schemes
S I N G A P O R E
BREADTALK GROUP: Seeks Noteholder OK to Waive Technical Default
HYFLUX LTD: Gets Letter of Interest From Potential Spanish Suitor
SINGAPORE: DBS Group Predicts Possible Recession Due to COVID-19
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A U S T R A L I A
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AQUAGUARD INVESTMENTS: First Creditors' Meeting Set for March 27
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of Aquaguard
Investments Pty Ltd will be held on March 27, 2020, at 10:00 a.m.
at the offices of Worrells Solvency & Forensic Accountants,
Suite 1104, Level 11, at 147 Pirie Street, in Adelaide, SA.
Nicholas David Cooper and Dominic Charles Cantone of Worrells
Solvency & Forensic Accountants were appointed as administrators of
Aquaguard Investments on March 17, 2020.
CGA (AUST): First Creditors' Meeting Set for March 27
-----------------------------------------------------
A first meeting of the creditors in the proceedings of CGA (Aust)
Pty Ltd. will be held on March 27, 2020, at 10:00 a.m. at Cor
Cordis, One Wharf Lane, Level 20, at 171 Sussex Street, in Sydney,
NSW.
Alan Walker & Andre Lakomy of Cor Cordis were appointed as
administrators of CGA (Aust) on March 17, 2020.
LIBERTY SERIES 2019-1: Moody's Upgrades Class F Notes to Ba2
------------------------------------------------------------
Moody's Investors Service has upgraded the ratings for two classes
of notes issued by Liberty Series 2019-1.
The affected ratings are as follows:
Issuer: Liberty Series 2019-1
Class E Notes, Upgraded to Ba1 (sf); previously on Mar 29, 2019
Definitive Rating Assigned Ba2 (sf)
Class F Notes, Upgraded to Ba2 (sf); previously on Mar 29, 2019
Definitive Rating Assigned B2 (sf)
RATINGS RATIONALE
The upgrades were prompted by the correction of a model input error
related to the transaction's threshold rate. The threshold rate is
the covenanted minimum portfolio yield the servicer is obliged to
charge on the variable-rate mortgage loans in order to ensure that
the pool can generate sufficient interest income to meet the
transaction's required payments plus a cushion. At closing and at
the last rating action in December 2019, Moody's had incorrectly
modelled a threshold rate with a lower level of excess spread than
was specified in the closing transaction documents.
The rating action reflects the positive impact that the correction
in the threshold rate modelling has had on the ratings of the Class
E and Class F Notes.
The transaction has been making pro-rata principal repayments among
the rated notes since closing. Following the January 2020 payment
date, note subordination available for the Class E and Class F
Notes has increased to 2.1% and 1.7%, respectively, from 1.8% and
1.4% at closing.
The Guarantee Fee Reserve Account, fully funded at AUD2.1 million,
provides additional credit support of 0.4% of the current note
balance. The account can be used to cover charge-offs against the
notes and liquidity shortfalls that remain uncovered after drawing
on the liquidity facility and principal.
As of January 2020, 0.9% of the outstanding pool was 30-plus day
delinquent, and 0.5% was 90-plus day delinquent. The deal has
incurred no losses to date.
Based on the observed performance and outlook, Moody's has
maintained its expected loss assumption at 1.4% of the original
pool balance since closing.
Moody's has also maintained its MILAN CE assumption at 8.0% since
the last rating action, based on the current portfolio
characteristics.
The MILAN CE and expected loss assumption are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into the cash flow model.
The transaction is an Australian RMBS secured by a portfolio of
residential mortgage loans, originated and serviced by Liberty
Financial Pty Ltd, an Australian non-bank lender. A portion of the
portfolio consists of loans extended to borrowers with impaired
credit histories or made on a limited documentation basis.
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2019.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in credit enhancement
available for the notes.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
SHIRE LIND: First Creditors' Meeting Set for March 27
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Shire Lind
Developments (NSW) Pty Ltd will be held on March 27, 2020, at 10:00
a.m. at Suite 508, at 147 King Street, in Sydney, NSW.
William James Hamilton of W J Hamilton & Co was appointed as
administrator of Shire Lind Developments on March 19, 2020.
UNIVERSITY CO-OPERATIVE: 2nd Creditors' Meeting Set for March 27
----------------------------------------------------------------
A second meeting of creditors in the proceedings of University
Co-Operative Bookshop Limited has been set for March 27, 2020, at
2:00 p.m. at the offices of Portside Conference Centre, at 207 Kent
St, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 26, 2020, at 5:00 p.m.
Philip Carter, Daniel Walley and Andrew Scott of
PricewaterhouseCoopers were appointed as administrators of
University Co-Operative on Nov. 24, 2019.
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C H I N A
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CITIC RESOURCES: S&P Alters Outlook to Stable & Affirms 'BB-' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on CITIC Resources Holdings
Ltd. (CRH) to stable from positive. At the same time, S&P affirmed
its 'BB-' long-term issuer credit rating on the China-based oil
producer.
S&P said, "We revised the outlook on CRH to stable from positive to
reflect our view that the company's profitability will weaken and
its financial leverage will increase amid our revised lower oil
price assumptions.
"In our opinion, CRH's key profit contributor--the crude oil
segment--will be hit hard by significantly lower oil prices. We
project the company's debt-to-EBITDA ratio will increase to
7.9x-13.0x over the next two years, compared with 5.2x in 2018 and
our estimate of 5.6x for 2019. We expect its oil segment to record
a lower EBITDA margin of 50% in 2020, largely comparable with the
levels during the market trough in 2015-2016. We also estimate
production volumes will decrease by 5% in 2020, due to the natural
decline of wells and likely delays in drilling activities on low
oil prices. A meaningful increase in production volume is likely to
happen after 2021 when oil prices start to recover and the company
increases well drilling. We view CRH as a relatively small oil
producer and its leverage will therefore remain sensitive to
near-term oil price volatility.
"The decrease of EBITDA in 2020 is also attributable to the subdued
financial performance of Alumina Ltd. (AWC; BBB-/Stable/--) in
2019, an associate of CRH. We expect dividends from AWC to decline
significantly in 2020 to about HK$78.7 million, based on US$3.6
cents per ordinary share that AWC declared for 2019 and accounting
for 18% of CRH's total adjusted EBITDA for the year. This is
notably lower than dividends of HK$300 million-HK$400 million in
2019 and HK$389 million in 2018, both accounting for around 30% of
CRH's total adjusted EBITDA for the the respective years.
"The substantial decline in AWC's profits in 2019 was driven by the
drop in alumina prices and significant restructuring-related
charges attributable to the Alcoa World Alumina and Chemicals joint
venture. We view the restructuring-related expenses as one-off, but
the sluggish alumina market will likely continue to constrain AWC's
profitability over the next 12 months. We estimate the dividends
from CITIC Dameng Holdings Ltd., another associate of CRH, will
remain immaterial and expect no dividends over the next two years.
"In our view, CRH's financial policy remains disciplined. The
company has reduced its debt level in the past three years by
increasing operating cash flow in a rising oil price environment.
In addition, we expect CRH to generate positive free operating cash
flow over the next one to two years on disciplined capital
expenditure, even at our reduced oil price assumptions.
"The stable outlook reflects our view that CRH's leverage will
remain high and its debt-to-EBITDA ratio could stay above 6.0x on a
sustained basis owing to low oil prices. It also reflects our view
that the company will continue to receive strong ongoing and
extraordinary support from its parent CITIC Group over the next
12-24 months.
"We may raise the rating on CRH over the next 12 months if its
debt-to-EBITDA ratio remains at close to 5x on a sustained basis.
We expect such cash flow leverage improvement to be driven by
better-than-expected oil prices and production levels.
"We could lower the rating on CRH if the company's parental support
is weaker than we currently expect. This could happen if:
CITIC Group substantially reduces its shareholding in CRH; or
CRH's strategic positioning changes within the wider group. One
indication of this is that the company loses its position as the
main oil platform for CITIC Group.
CRH is primarily engaged in crude oil production, aluminum
smelting, coal, and the import and export of commodities in China,
Indonesia, Australia, and Kazakhstan. The Hong Kong-based company
is also engaged in manganese production, bauxite mining, and
alumina refining through its associates CITIC Dameng and Alumina
Ltd. CRH was incorporated in 1997.
CITIC Group is the controlling shareholder in CRH with a stake of
about 59% via CITIC Ltd.
HILONG HOLDING: Fitch Puts B+ LT IDR on Rating Watch Negative
-------------------------------------------------------------
Fitch Ratings has placed Hilong Holding Limited's 'B+' Long-Term
Issuer Default Rating (IDR) and senior unsecured rating of 'B+'
with a Recovery Rating of 'RR4' on Rating Watch Negative (RWN).
Fitch expects the company to use its CNY1.7 billion in readily
available cash and undrawn credit facilities to redeem its USD165
million 7.25% senior unsecured notes due June 2020, depleting its
near-term liquidity. The RWN reflects its expectations of increased
pressure on Hilong's liquidity position, uncertainty on the
company's ability to replenish its liquidity and the limited
visibility of the impact that current oil prices will have on new
orders.
KEY RATING DRIVERS
Tight Liquidity Until Refinancing: Management has indicated that
the company had about CNY850 million in unrestricted cash and
CNY863 million in undrawn credit facilities at end-February 2020.
This is an improvement over readily available cash of CNY800
million and around CNY600 million of undrawn bank facilities at
end-2019. Fitch believes the onshore credit facilities remain
available due to Hilong's solid onshore banking relationships.
Hilong is in the process of drawing down its onshore credit
facilities.
The use of the company's cash balance would deplete its near-term
liquidity. Fitch understands that Hilong is in the process of
exploring financing options including syndicated loans, bank
borrowings and capital market solutions that upon completion would
improve the company's liquidity position. However, in light of
market uncertainties Fitch has placed its ratings on RWN until its
financing plans have been executed.
Oil Shock Adds Uncertainty: Oil prices declined sharply after the
collapse of OPEC+ talks on March 6 led to Saudi Arabia increasing
production and cutting prices. Sustained lower oil prices could
lead to oil producers reducing expansion plans, affecting Hilong.
However, Hilong's market position in drill-pipe manufacturing and
coating materials and services and improved capital discipline
could mitigate the potential impact.
Hilong's credit profile has improved entering 2020; Fitch estimates
Hilong's leverage reached around 3.5x in 2019. A sustained decline
in oil price could affect its new orders, sales and cash conversion
cycle. Hilong can further constrain its capex during an industry
downturn; Fitch estimates annual capex of CNY250 million in 2019.
In comparison, the company's maintenance capex is CNY100 million.
DERIVATION SUMMARY
Hilong's ratings are primarily supported by its leading market
position in drill-pipe manufacturing and coating services for oil
country tubular goods in China and reflect its expanding
international presence and improving revenue outlook. However, the
ratings are constrained by Hilong's leverage, and limited earnings
visibility. Hilong has a weaker financial profile with higher
leverage and lower coverage than 'BB' rated peers, such as Yingde
Gases Group Company Limited (BB/Stable). Hilong has a stronger
financial profile in terms of leverage, coverage and free cash flow
margin than Honghua Group Limited (B/Stable).
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Revenue growth of 14% yoy in 2019 and 6.5% yoy in 2020.
- EBITDA margin of 24.1% in 2019-2020.
- Annual capex of CNY250 million in 2019 and CNY300 million in
2020.
- No acquisition in 2019-2020.
Recovery Rating Assumptions:
Its recovery analysis is based on going-concern value, as it is
higher than the liquidation value. The going-concern value is
derived from Hilong's 2018 EBITDA of CNY769 million with 10%
discount, enterprise value-to-EBITDA multiple of 5.0x, and 10%
administrative claim.
The Recovery Rating assigned to Hilong's senior unsecured debt is
'RR4' because under Fitch's Country-Specific Treatment of Recovery
Ratings criteria, China falls into the Group D of countries in
terms of creditor friendliness. Recovery Ratings of issuers with
assets in this group are capped at 'RR4'.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- The RWN will be resolved pending an improvement in Hilong's
liquidity profile with no deterioration in order book and new
orders
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Hilong fails to repay or refinance the upcoming June maturity
- A worsening in Hilong's debt maturity profile
- A significant deterioration in cash, order book and new orders
or industry outlook.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity to Redeem Bond: Hilong had CNY1.5 billion in
readily available cash and undrawn credit facilities at end-2019 to
redeem its USD165 million senior unsecured notes due in June 2020.
The use of the company's cash balance would deplete its near-term
liquidity, until it replenishes its liquidity through fresh
borrowings.
ESG CONSIDERATIONS
ESG issues are credit neutral or have only a minimal credit impact
on the entity, either due to their nature or the way in which they
are being managed by the entity.
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I N D I A
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8K MILES: CARE Lowers Rating on INR10cr Loan to 'C'
---------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of 8K
Miles Software Services Limited (8k miles), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10.00 CARE C; Stable; Issuer not
Facilities cooperating; Revised from
CARE C, Stable on the basis
of best available information
Long-term/Short 10.00 CARE C; Stable/CARE A4;
Term Bank Issuer not cooperating;
Facilities Revised from CARE C;
Stable/CARE A4 on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from 8k Miles to monitor the
rating vide email communications/letters dated March 9, 2020, March
7, 2020, March 6, 2020, March 5, 2020, March 4, 2020,
March 3, 2020, December 3, 2019, November 4, 2019, October 15,
2019, September 30, 2019, September 23, 2019, September 16, 2019,
August 6, 2019, July 9, 2019, July 5, 2019, July 3, 2019 and
numerous phone calls. However, despite of CARE's repeated requests,
the company has not provided requisite information for monitoring
the rating. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating. The rating on 8k Miles's bank facilities will now be
denoted as CARE C; Stable/CARE A4; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings takes into account disclaimer of opinion given by
auditor on financials of FY19, weak corporate governance, presence
in the industry characterized by growing competition from IT majors
and other small and medium players, Stretched liquidity profile.
The rating considers the experience of the promoters in cloud
computing vertical.
Detailed description of the key rating drivers
At the time of last rating on March 14, 2019 following were the
rating strengths and weaknesses:
Key rating weakness
* Weak corporate governance: The corporate governance of the
company stands weak reflected by the qualification in the audit
report dated September 07 2018 regarding the likelihood of material
misstatement in the consolidated financials.
* Presence in industry characterised by growing competition from IT
Majors and other small and medium players: The growing competition
exposes the company to inherent industry risks such as ability to
bag large-sized contracts and attrition of personnel, which may
result in lower growth rates. The moderate scale of operations also
restricts financial flexibility to an extent. Furthermore, the
company remains exposed to industry specific risks of high
attrition rates, wage inflation and regulatory framework which can
also put pressure on the margins.
Stretched liquidity profile
The liquidity position of the company is stretched due to long
collection period of 2-3 months. The average working capital
utilisation for the past 12 months ending February 2019 remains
high at 89% thereby providing limited liquidity cushion.
Key Rating Strength
* Experienced Promoters: Mr. Venkatachari Suresh is the founder
and also the Managing Director and CEO of the company and has more
than 26 years of experience in the outsourcing & consulting
industry and drives the company's strategy and business development
function. The company retains the promoters and employees of the
acquired companies to benefit from their experience in the system.
Analytical approach: Consolidated view on 8K miles and its
subsidiaries is taken as they are under the common management and
have same business operations. Following Subsidiaries have been
considered for the consolidated approach:
8k Miles Software Services Inc. USA
8K Miles Software Services FZE -UAE
8K Miles Health Cloud Inc. USA
Mentor Minds Solutions and Services Inc. USA
Mentor Minds Solutions and Services Private Ltd. India
8K Miles was originally promoted by Mr Venkatachari Suresh, Mr R.
S. Ramani and Mr M. V Bhaskar in the year 2008 with a view to
provide cloud computing and related services to companies in United
States of America (USA). The company also provides software design
and development, web services, consulting and other services
through its various subsidiaries. Over the years 8K Miles has
developed various proprietary platforms such as Cloud Ez Solution,
Federal Identity Management systems on Multi-Domain Identity
Service (MISP) and Cloud ID Exchange (CIE) platform among others
which helps the company provide cloud based solution to its
clients. The company has technological partnerships with Amazon Web
Services, Microsoft Azure, IBM, Google Cloud Platform and CA
Technologies. They are one of the preferred managed service
partners for Amazon Web Services.
ANDHRA CEMENTS: CARE Reaffirms 'D' Rating on INR915.79cr LT Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Andhra Cements Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 915.79 CARE D Reaffirmed
Short term Bank
Facilities 43.00 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of Andhra Cements Ltd
continues to factor in delays in debt servicing by the company.
Rating Sensitivities:
Positive Factors:
* Timely track record of debt servicing by the
company for continuous 3 months
* Sustainable improvement in the operations of the
company
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delay in Debt servicing obligation: The liquidity position of
the company continues to remain weak on account of weak financial
performance leading to delay in debt servicing.
Liquidity: Poor
The liquidity of the company is poor, owing to delays in debt
servicing. The company had cash and bank balance of INR3.47 crore
as on March 31, 2019.
ACL has cement manufacturing facilities at Dachepalli, Guntur
District (Durga Cement Works) with a split grinding unit at
Visakhapatnam, Andhra Pradesh (Visakha Cement Works). Jaypee Group,
through Jaypee Development Corporation Ltd (JDCL, a wholly-owned
subsidiary of Jaypee Infra Ventures) acquired controlling stake in
ACL in February 2012 from its earlier promoters, Duncan Goenka
Group. ACL, under its erstwhile management, began a process of
expanding its cement capacity from 1.42 mtpa (DCW – 0.8 mtpa and
VCW – 0.62 mtpa) to 3.0 mtpa in July 2007 but it witnessed
significant cost and time over runs. The Jaypee group, post
acquisition of the company, has undertaken renovation and
augmentation of the existing capacity of 1.42 mtpa to 2.61 mtpa,
which was commissioned on December 01, 2014. The company has also
set up a captive power plant with 30 MW capacity, which was
commissioned in FY16.
ASHOK BRICKS: CRISIL Cuts Ratings on INR30.3cr Loans to 'D'
-----------------------------------------------------------
CRISIL has downgraded the ratings of Ashok Bricks Industries
Private Limited (ABIL) to 'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 20 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Cash .03 CRISIL D (ISSUER NOT
Credit Limit COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Standby Letter 1.5 CRISIL D (ISSUER NOT
of Credit COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Term Loan .47 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ABIL for obtaining
information through letters and emails dated April 23, 2019, and
October 11, 2019, among others, apart from telephonic
communication. However, the issuer has remained non-cooperative.
The investors, lenders, and all other market participants should
exercise due caution while using the ratings 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 the company, which restricts
CRISIL's ability to take a forward-looking view on the company's
credit quality. CRISIL believes that the information available is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with 'CRISIL BB' category or
lower'.
Therefore, on account of inadequate information and lack of
management cooperation coupled with adverse information in the
public domain, CRISIL has downgraded the ratings to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
The downgrade reflects delay in debt servicing and classification
of the account as a non-performing asset by the banker.
ABIPL was formed as a partnership firm in 1992, between Mr Pramod
Agarwal and his brother Mr Ashok Agarwal, to manufacture red bricks
used in the construction industry. The firm was reconstituted as a
private limited company in 2000 and entered the business of road
construction.
C. P. INDUSTRIES: CRISIL Keeps C in INR15cr Loan in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of C. P. Industries
(CPI) continues to be 'CRISIL C Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL C (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with CPI 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 CPI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CPI 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 CPI continues to be 'CRISIL C Issuer not
cooperating'.
CPI, established in 1992 by Mr. Chironjilal Shivhare, manufactures
and trades in mustard seeds, mustard oil, and mustard oil cake. The
firm is based in Gwalior, Madhya Pradesh.
C.A. VEGE FRUIT: CARE Reaffirms 'D' Rating on INR8.0cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of C.A.
Vege Fruit Stores (CAVFS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE D Reaffirmed
Facilities Cash
Credit Limit
Detailed Rationale & Key Rating drivers
The rating assigned to the bank facilities of CAVFS is constrained
by on-going delays in the servicing of term debt obligation. The
rating is further constrained by declining profitability margins,
elongated operating cycle, constitution of the entity being
proprietorship firm, susceptibility to raw material prices
volatility and highly competitive & regulated nature of industry.
The rating, however, derives strength from experienced proprietor,
increasing scale of operations and moderate overall solvency
position.
Key Rating Weaknesses
* On-going delays in the debt obligation: There have been
instances of overutilization in the cash credit limit for more than
30 days in the past.
* Declining profitability margins: The PBILDT margin of the firm
declined from 15.72% in FY18 to 10.08% in FY19 owing to increase in
raw material expenses (as percentage of total operating income).
Subsequently, PAT margin declined from 4.89% in FY18 to 2.99% in
FY19.
* Constitution of the entity being a proprietorship firm: CAVS's
constitution as a proprietorship firm has the inherent risk of
possibility of withdrawal of the proprietor's capital at the time
of personal contingency and firm being dissolved upon the
death/retirement/insolvency of the proprietor.
* Susceptibility of margins to volatile raw material prices:
CAVS's operations are seasonal in nature as the firm is in
agro-based business which is further dependent on the vagaries of
nature. Lower agricultural output may have an adverse impact on the
available raw material and leads to volatility in prices that may
have adverse impact on the firm's profitability margins.
* Presence in fragmented & competitive agriculture industry: CAVFS
operates in a highly competitive market environment wherein a large
number of organized & unorganized players are engaged in the cold
storage activities. However, with times changing, many of them have
graduated to the medium size category, thereby expanding the
organized players' base thereby facing competition. Moreover, the
lower & middle class Indian families prefer to store Green peas by
themselves, thereby creating a competitive environment for the
firm. This may be evidently reflected in the low profit margins
garnered by the firm, in addition to the trading & processing
nature of operations fetching lower margins.
Key Rating Strengths
* Improvement in scale of operations: The total operating income
of CAFS increased at a healthy growth rate of 46.01% from FY18 to
FY19 mainly due to better sales realization. Furthermore, the
company reported total operating income of INR18.00 crore in 9MFY20
(Provisional).
* Moderate overall solvency position: The overall gearing ratio of
the company stood comfortable at 0.47x as on March 31, 2019.
However, the same marginally deteriorated from 0.44x as on March
31, 2018 due to withdrawal of capital by the proprietor.
Furthermore, the debt coverage indicators have also stood moderate
marked by interest coverage ratio and total debt to GCA ratio of
2.22x and 6.29x respectively, for FY19 (PY: 2.28x and 6.08x,
respectively).
* Experienced proprietor: Mr. Rajiv Malhotra has more than two
decades of industry experience through his association with group
concern namely NAFCO (National Agri Food Consultants). NAFCO is a
partnership firm established in 1994 and is engaged in providing
consultancy services mainly pertaining to setting up of different
types of cold chains. Besides NAFCO, Mr Rajiv Malhotra is also one
of the promoters in Him Infratech Private Limited which got
established in 2015.
Liquidity position: Stretched
The operating cycle of the firm stood elongated though improved on
a year-on-year basis to 245 days for FY19 (PY: 301 days). The
liquidity position of the firm stood weak marked by current ratio
of 1.72x and quick ratio of 0.18x as on March 31, 2019 (PY: 1.81x
and 0.54x, respectively). The company also had low level of cash
and bank balance of INR0.22 crore as on March 31, 2019.
Rating Sensitivities
Positive Factor:
* Increase in scale of operations with total operating income
of more than INR50.00 crore on a sustainable basis
* Improvement in PBILDT and PAT margins above 15.00% and 5.00%,
respectively, on sustained basis
* Improvement in the liquidity position
Negative Factor:
* Decline in scale of operations by more than 20% on sustained
basis
* Decline in PBILDT and PAT margins below 8.00% and 1.50%,
respectively, on sustained basis
* Withdrawal of capital by the proprietor resulting in
deterioration of capital structure with overall gearing
deteriorating beyond 1.00x.
Mohali-based (Punjab), C.A. Vege Fruit Stores (CAVFS), is a
proprietorship concern established in June, 2010 by Mr Rajiv
Malhotra. However, the firm commenced its commercial operations in
January, 2015 by letting the cold storage unit on rental basis.
Currently, the firm is running an integrated cold chain storage
facility by engaging in procurement, cold storage and distribution
of fruits and vegetables at its warehouse located in Mohali,
Punjab. The warehouse of the firm consists of 31 rooms of which 28
are controlled automated rooms having installed storage capacity of
5,300 metric tonnes per annum as on December 31, 2019. The firm
caters to various traders of fruits and vegetables located in
nearby region of Mohali, Punjab. CAVS provides cold storage
facility for agricultural products like cabbage, lemon,
pomegranate, apples etc. For this, the firm purchases the fruits
and vegetables directly from the farmers wherein apples are
procured from Himachal Pradesh & Jammu & Kashmir, pomegranate from
Maharashtra, lemon, carrot and ginger from Andhra Pradesh, Uttar
Pradesh and Karnataka respectively.
CEASAN GLASS: CRISIL Keeps 'D' Loan Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Ceasan Glass Private
Limited (CGPL) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING)
Funded Interest 1.94 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
Long Term Loan 12.1 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2.46 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Working Capital 2.5 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
CRISIL has been consistently following up with CGPL 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 CGPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CGPL 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 CGPL continues to be 'CRISIL D Issuer not
cooperating'.
CGPL was set up in 2007 by Mr. C H V N Raghurama Gupta. Based in
Ongole, Andhra Pradesh, the company manufactures figured,
patterned, or wired glass.
CREATIVE LOOMS: CRISIL Keeps D on INR18cr Debt in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Creative Looms and
Crafts Private Limited (CLCPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 18 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CLCPL 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 CLCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CLCPL 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 CLCPL continues to be 'CRISIL D Issuer not
cooperating'.
Creative Looms and Craft Private Limited (CLCPL) was incorporated
in 1983 by Mr. Rishabh Singh and Mrs. Gaeta Singh. The company is
engaged in trading of handicrafts products and furniture. Company
operates through two retail outlets in New Delhi (one each at
Dwarka and Connaught Place).
DANIA ORO: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dania Oro Jewellery
Private Limited (Dania Oro) continues to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 12.5 CRISIL D (ISSUER NOT
COOPERATING)
Post Shipment 12.5 CRISIL D (ISSUER NOT
Credit COOPERATING)
Proposed Long Term 17.31 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with Dania Oro 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 Dania Oro, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Dania Oro
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 Dania Oro continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Dania Oro was incorporated in 2006, promoted by Mr. Pramod Goenka
of Mumbai. The company exports diamondstudded gold jewellery to the
US and UK.
DHANTURI GROUP: CRISIL Cuts Ratings on INR20cr Loans to 'B+'
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Dhanturi Group
of Hotels Private Limited (DGHPL; part of the Dhanturi group) to
'CRISIL B+/Stable Issuer not cooperating' from 'CRISIL BB+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 11.7 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER
NOT COOPERATING')
Term Loan 8.3 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER
NOT COOPERATING')
CRISIL has been consistently following up with DGHPL 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 DGHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DGHPL 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 DGHPL revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of DGHPL, and Swagath Marriage and Function
Hall (SMFH). This is because both the entities, together referred
to as the Dhanturi group, have common promoters, are in the same
line of business, and have significant operational linkages and
fungible cash flow.
The Dhanturi group operates a chain of hotels and restaurants in
Hyderabad and Secunderabad in Telangana. The group is promoted by
Mr. D Ravinder, Mr. D Hari Shankar, and their family members. DGHPL
operates six hotels and two restaurants, and SMFH operates eight
hotels in Hyderabad and Secunderabad.
DWARIKAMAYEE BHANDAR: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dwarikamayee Bhandar
(DB; part of Maa Kalika group) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.7 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Cash 5.8 CRISIL D (ISSUER NOT
Credit Limit COOPERATING)
CRISIL has been consistently following up with DB 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 DB, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DB 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 DB continues to be 'CRISIL D Issuer not
cooperating'.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of DB, Kohenoor Industries (KI), Shree
Krushna Enterprises (SKE) and Maa Kalika Bhandar (MKB). The firms,
together referred to as the Maa Kalika group, are under a common
management with common customer and supplier base. Moreover, the
promoters treat the four entities as one single group for funding
and support.
The Maa Kalika group, promoted by the Odisha-based Jajodia family
is primarily engaged in wholesale trading in of agro items such as
sugar, pulses, and edible oil. Operations are primarily managed by
Mr Pawan Kumar Jajodia and his son, Mr Jay Jajodia.
DYNAMIX CHAINS: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dynamix Chains
Manufacturing Private Limited (Dynamix) continues to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Funded Interest 4.97 CRISIL D (ISSUER NOT
Term Loan COOPERATING)
Packing Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Post Shipment 9 CRISIL D (ISSUER NOT
Credit COOPERATING)
Proposed Long Term 35.15 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 2.84 CRISIL D (ISSUER NOT
COOPERATING)
Working Capital 15.89 CRISIL D (ISSUER NOT
Demand Loan COOPERATING)
CRISIL has been consistently following up with Dynamix 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 Dynamix, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Dynamix 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 Dynamix continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Dynamix, established in October 2007, is promoted by Mr. Pramod
Goenka of Mumbai. It manufactures specialised chains and pendants,
which are exported to the US.
EARTH STONE: CRISIL Keeps B on INR12.5cr Loans in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Earth Stone Global
(ESG) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.25 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Export Packing 10.25 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING)
Standby Letter 1.00 CRISIL B/Stable (ISSUER NOT
of Credit COOPERATING)
CRISIL has been consistently following up with ESG 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 ESG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ESG 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 ESG continues to be 'CRISIL B/Stable Issuer not
cooperating'.
ESG is a proprietorship firm set up by Mr. Vikas Kanchal. The firm
is engaged in processing and sale of slate, sand stone, marble and
tiles and commenced operations from July 2010.
EIPL PROJECTS: CRISIL Lowers Rating on INR30cr LT Loan to B+
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of EIPL Projects
(EIPL) to 'CRISIL B+/Stable Issuer not cooperating' from 'CRISIL
BB/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 30 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with EIPL 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 EIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EIPL 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 EIPL revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB/Stable Issuer not cooperating'.
Set up in 2011, EIPL is a partnership firm engaged in residential
real estate in and around Hyderabad. The firm is partnered by Mr.
Shekar Reddy, Mr. Kishore Reddy, Mr. Sridhar Reddy, Mr. Nagesh
Reddy and Mr. Ramesh Reddy.
EM CEE CEE: CRISIL Lowers Rating on INR9cr Cash Loan to B+
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of EM Cee Cee
Sports Agencies Private Limited (ECC) to 'CRISIL B+/Stable Issuer
not cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ECC 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 ECC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ECC 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 ECC revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
ECC, incorporated in 1968, is promoted by Mr. J R Mahajan and his
family based in Jalandhar (Punjab). The company manufactures sports
accessories under its brand JJ Jonex.
ESSEM JUTE: CRISIL Maintains D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Essem Jute Industries
Limited (Essem) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .4 CRISIL D (ISSUER NOT COOPERATING)
Cash Credit 5.5 CRISIL D (ISSUER NOT COOPERATING)
Letter of Credit 2 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 1.9 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with Essem 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 Essem, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Essem 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 Essem continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Essem was set up in Kolkata by Mr. Tarun Mall and Mr. Kailash Kumar
Jhawar in December 2002. The company manufactures jute products
such as jute yarn, hessian cloth, and bags. The company's
facilities are in Cooch Behar (West Bengal).
EVERON CASTINGS: Ind-Ra Corrects March 12 Ratings Release
---------------------------------------------------------
India Ratings and Research (Ind-Ra) rectified a rating release on
Everon Castings published on March 12, 2019, to correctly state the
rating in the headline.
The amended release is as follows:
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: Sustainable operations and improvement in the liquidity
position could be positive for the rating.
COMPANY PROFILE
Incorporated in 2007, Everon Castings is engaged in the
manufacturing of carbon steel, alloy steel, and stainless steel
castings.
FABULOUS BUILDERS: CRISIL Keeps B+ on INR6cr Debt in NonCooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Fabulous Builders
(FB) continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with FB 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 FB, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FB 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 FB continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
FB was set up in 2012 by Siliguri-based Mr. Sandeep Goyal, Mr. Anuj
Poddar, Mr. Pradip Khemka, and Mr. Arun Goyal. It develops real
estate in Siliguri and has an ongoing commercial-cum-residential
project, Mayfair Paradise.
FERNAS CONSTRUCTION: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Fernas Construction India Private Limited
Space No. S-19, Second Floor
Malhan Falcon Plaza
Plot No. 4 Pocket 7
Sector 12, Dwarka
New Delhi 110075
Insolvency Commencement Date: December 6, 2019
Court: National Company Law Tribunal, Bench IV New Delhi
Estimated date of closure of
insolvency resolution process: June 3, 2020
Insolvency professional: Vikas Chandra Misra
Interim Resolution
Professional: Vikas Chandra Misra
91, Siddhartha Enclave
Near Ashram Chowk
New Delhi 110014
E-mail: cavcmisra@gmail.com
irpfcipl@gmail.com
Last date for
submission of claims: March 23, 2020
GAGAN RICE: CRISIL Keeps B on INR8cr Loans in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Gagan Rice Mills
(GRM) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Term Loan 1 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GRM 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 GRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GRM 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 GRM continues to be 'CRISIL B/Stable Issuer not
cooperating'.
GRM is a Haryana-based partnership firm established in 2006 by Mr
Joginder Pal Gupta, Mr Gagan Goel, and Mr Abhishek Goel. The firm
mills and processes basmati and non-basmati rice for supply in the
domestic market.
GANPATI FOODS: CRISIL Keeps B on INR7cr Loans in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Ganpati Foods -
Fazilka (GFF) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Warehouse Receipts 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GFF 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 GFF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GFF 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 GFF continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Established in 2012, by Mr. Vijay Chabra and Mr. Raj Kumar Periwal,
GFF is a partnership firm that processes and sells basmati rice.
Its facility is at Fazilka, Punjab.
GCRG MEMORIAL: Ind-Ra Lowers Rating on INR105MM Loan to 'D'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded GCRG Memorial
Trust's bank loans to 'IND D (ISSUER NOT COOPERATING)' from 'IND
BB+ (ISSUER NOT COOPERATING)'. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings.
The instrument-wise rating actions are:
-- INR105.8 mil. Term loan due on March 2020 downgraded with IND
D (ISSUER NOT COOPERATING) rating;
-- INR19.5 mil. Fund-based limit downgraded with IND D (ISSUER
NOT COOPERATING) rating;
-- INR115 mil. Non-fund-based limit downgraded with IND D (ISSUER
NOT COOPERATING) rating;
-- INR240 mil. *Proposed term loan is withdrawn; rating; and
-- INR19.7 mil. *Proposed fund-based limit is withdrawn.
* The provisional rating has been withdrawn as it has been
outstanding for more than 90 days and the agency no longer expects
it to be converted to the final 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 GCRG Memorial
Trust during the 12 months ended February 2020, 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
GCRG Memorial Trust was founded by Chairman Abhishek Yadav and his
brother Mohit Yadav (secretary) in May 2008 and is incorporated
under the Indian Trust Act, 1882. The trust runs GMT Group of
Institutions at Chandrika Devi Road, Bakshi Ka Talab, Lucknow, that
offers undergraduate and postgraduate courses in engineering,
management, and teaching, along with diplomas and polytechnic
courses. It also runs a hospital (GCRG Memorial Hospital) and a
medical college on the campus.
GODAVARI FOUNDATION: CRISIL Cuts Rating on INR10cr LT Loan to B+
----------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Godavari
Foundation (GF) 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 NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER
NOT COOPERATING')
CRISIL has been consistently following up with GF 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 GF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GF 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 GF revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB+/Stable Issuer not cooperating'.
Set up 1973 GF started operations in 1998. The trust runs 30
institutes that impart education in fields such as schools,
medical, engineering, and management.
HIMACHAL FLOUR: CRISIL Assigns 'B+' Ratings to INR10cr Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Himachal Flour Mills Private Limited (HFMPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.9 CRISIL B+/Stable (Assigned)
Proposed Cash
Credit Limit .1 CRISIL B+/Stable (Assigned)
The rating reflects a modest scale of operations in the highly
fragmented flour milling industry, and a weak financial risk
profile. These weaknesses are partially offset by the extensive
industry experience of the promoters and their funding support.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: Revenue is expected at INR28-30 crore
in fiscal 2020, and should remain modest, thereby constraining cost
efficiency. This is driven by the fragmented nature of industry
with various small and mid-sized players, many of them
unorganised.
* Weak financial risk profile: Low accretion to reserves has
resulted in a small networth, and consequently weak capital
structure. The total outside liabilities to tangible networth ratio
is estimated over 2.5 times for the medium term. Additionally, low
profitability led to below-average debt protection metrics, with
estimated interest coverage and net cash accrual to total debt
ratios expected at around 1.4 times and 0.1 time, respectively, for
fiscal 2020.
Strength
* Extensive industry experience of the promoters and their funding
support: The promoters have been engaged in the agricultural
industry since 1972, and have a cumulative industry experience of
close to five decades. Over these years, the healthy market
relationship forged has helped them to stabilise the business
performance. Additionally, they have aided liquidity requirement by
bringing in need- and time-based financial support through
unsecured loans.
Liquidity Poor
Liquidity is constrained on account of low cash accrual (Rs 0.4-0.5
crore per fiscal). However, debt repayment obligation is minimal
and the promoters provide financial support through unsecured
loans. Due to seasonality in the business, the bank lines remain
highly utilised during the peak season and at times the company
also seeks for ad hoc limits, which are regularised in a timely
manner. In the off season, the utilisation drops. The current ratio
is healthy, estimated at 2.8-3 times as on
March 31, 2020.
Outlook: Stable
CRISIL believe HFMPL will continue to benefit from the extensive
experience of the promoters and their established relationship with
clients.
Rating sensitivity factors
Upward factors
* Increase in revenue and profitability, leading to cash accrual
of over INR1 crore per fiscal
* Improvement in the financial risk profile, particularly debt
protection metrics
Downward factors
* Cash accrual declining to below INR0.3 crore per fiscal due to
low revenue or profitability
* A stretched working capital cycle, impacting the financial
risk profile, especially liquidity
* Discontinuation of promoter financial support
HFMPL was set up in 1972, as a partnership firm, Himachal Flour
Mills, and was reconstituted as a private limited company with the
current name in 1999. The key promoter and director, Mr Jagmohan
Lal Gupta, along with his family members, manages operations. The
company manufactures atta, suji, and maida at its facilities in
Kangra, Himachal Pradesh. Products are sold to the state government
and in the wholesale market.
INDLAB EQUIPMENTS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Indlab Equipments Private Limited
No. 561, 7th Main A Sector
Yelahanka New Town
Bengalore KA 560064
Insolvency Commencement Date: February 19, 2020
Court: National Company Law Tribunal, Bengaluru Bench
Estimated date of closure of
insolvency resolution process: August 17, 2020
Insolvency professional: Mr. Addanki Haresh
Interim Resolution
Professional: Mr. Addanki Haresh
No. 36/1, 2nd Floor
Munivenkatappa Complex
Bellary Road, Ganganagar
Bangalore 560032
E-mail: ipindlab@gmail.com
www.indlabequipment.com
Last date for
submission of claims: March 12, 2020
JET AIRWAYS: NCLT Allows 90-Day Extension for Bankruptcy Process
----------------------------------------------------------------
Firstpost reports that the National Company Law Tribunal (NCLT) on
March 18 allowed 90 days' extension for the corporate insolvency
resolution process of Jet Airways.
Jet Airways' resolution professional had last week filed an
application in NCLT seeking 90 days' extension for the insolvency
process of the grounded airline after it failed to attract any
bidder, according to Firstpost.
Firstpost says the NCLT bench, comprising Bhaskara Pantula Mohan
and Rajesh Sharma, granted the extension as the Committee of
Creditors (CoC) voted for the same, with 70 percent votes in
favor.
According to Firstpost, the CoC had on February 18 set a new
deadline of March 10 for submission of bids for the grounded
airline after South American conglomerate Synergy Group and New
Delhi-based Prudent ARC failed to meet the previous deadline.
Later, Synergy Group had backed out of the bidding process over
slot issues. The March 10 deadline was set after Russia's Far East
Asia Development Fund also evinced interest in Jet Airways, the
report says.
About Jet Airways
Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal. It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.
On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.
Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case. Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.
Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.
Creditors have filed claims worth INR30,907 crore, according to
Financial Express. The RP has so far admitted claims worth over
INR14,000 crore.
KANCHI KARPOORAM: Ind-Ra Keeps BB- Debt Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kanchi Karpooram
Limited's (KKL) Long-Term Issuer Rating 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:
-- INR70 mil. Fund-based facilities maintained in non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR100 mil. Non-fund-based facilities maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 10, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
While the company's financials are available in the public domain,
Ind-Ra does not have information regarding its liquidity
management, the utilization of its current debt facilities,
outstanding debt facilities or the projections for the next five
years. Hence, the agency has not taken a rating action.
COMPANY PROFILE
Incorporated in 1992, KKL was reconstituted as a public limited
company in 1995, with a capital of INR41.2 million. Based in
Kanchipuram, Tamil Nadu, KKL manufactures camphor and by-products
dipentene, sodium acetate trihydrate, and pine tar.
KOLEY MULTIPURPOSE: CARE Withdraws D Rating on Bank Facilities
--------------------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding rating of 'CARE
D' assigned to the bank facilities of Koley Multipurpose Himghar
Private Limitedwith immediate effect. The above action has been
taken at the request of Koley Multipurpose Himghar Private Limited
and 'No Objection Certificate' received from the bank that has
extended the facilities rated by CARE.
On-going delay in debt servicing: There are on-going delays in term
loan servicing of the company.
Koley Multipurpose Himghar Private Limited (KMHPL) was incorporated
in 2016. The company is promoted by Smt. Priyanka Koley. The
company has established a cold storage unit at Gobindapur in the
district of Midnapore with a storage capacity of 172000 quintals.
The company is providing cold storage services primarily for
potatoes to the farmers and traders on a rental basis. Besides
providing cold storage facility, the unit is also works as a
mediator between the farmers and marketers of potato, to facilitate
sale of potatoes stored and also provide interest bearing advances
to farmers for farming purpose against potatoes stored. The day to
day operations of the company are look after by Smt. Priyanka Koley
(Promoter) along with Mr. Prasenjit Koley (Director) and Smt.
Saraswati Koley (Director) who have experience around 09 years, 13
years and 11 years respectively, in similar line of business.
KONDUSKAR TRAVELS: CRISIL Hikes Rating on INR11.5cr Loan to B-
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Konduskar Travels Private Limited (KTPL) to 'CRISIL B-/Stable' from
'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Drop Line 11.5 CRISIL B-/Stable (Upgraded
Overdraft from 'CRISIL D')
Facility
Proposed Term Loan 6.5 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The upgrade reflects timely debt servicing by the company in
consecutive three months, backed by improved liquidity
The rating reflects KTPL's below-average financial risk profile and
average scale of operations. These weaknesses are mitigated by the
extensive experience of the promoters in the passenger transport
services industry.
Key Rating Drivers & Detailed Description
Weakness:
* Below-average financial risk profile: Gearing and total outside
liabilities to tangible networth ratio remained high at 3.91 times
and 4.15 times, respectively, as on March 31, 2019, because of
small networth of INR7.85 crore.
* Average scale of operations: Intense competition and
geographical concentration in revenue (operations primarily in
Maharashtra, Gujarat, and Karnataka) may continue to constrain
scalability, pricing power, and profitability. Revenue was average
at INR54 crore in fiscal 2019, restricting cost efficiency.
Strength
* Extensive experience of the promoters: The promoters' experience
of over two decades, strong understanding of local market dynamics,
and healthy relationships with customers and suppliers should
continue to support the business. Further, the tenders that are bid
for intercity/intracity transport business with state government or
municipal corporations are on a gross-cost model, where minimum
revenue per day per vehicle is guaranteed by the authority.
Liquidity Stretched
Accrual is expected at INR11-17 crore per fiscal over the medium
term against debt obligation of INR11-13 crore. Further, the
company has debt funded capital expenditure plan of around INR30-35
crores to execute orders of Uttar Pradesh State Road Transport
Corporation. The quantum of debt availed and its impact on the
financial risk profile particularly liquidity will remain key
monitorable.
Outlook: Stable
CRISIL believes KTPL will continue to benefit from its established
regional position and the experience of the promoters.
Rating Sensitivity factors
Upward factors
* Net cash accrual of over INR16 crore
* Increase in revenue and profitability
Downward factors
* Net cash accrual less than INR10 crore
* Decline in revenue and profitability.
Incorporated in 1994, KTPL is based in Kolhapur, Maharashtra, and
is promoted by the Konduskar family. The company provides passenger
transport services in Maharashtra, Goa, Karnataka, and Gujarat.
KRISHNA EDUCATIONAL: Ind-Ra Keeps B+ Loan Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shree Krishna
Educational & Charitable 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 the ratings. The ratings will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are :
-- INR66 mil. Term loan maintained in non-cooperating category
with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR10 mil. Working capital facility maintained in non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 10, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shree Krishna Educational & Charitable Society was established in
2008 under the Societies Registration Act, 1860, by Mr. Rakesh
Kumar Gupta, Mr. Rajiv Mangla, Mr. Vicky Singhal, and Mr. Anoop
Bansal.
LV GLOBAL PRIVATE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: LV Global Private Limited
Registered office:
421-A-5-Ground Floor
Govindpuri, New Delhi
South Delhi DL 110019
Insolvency Commencement Date: February 28, 2020
Court: National Company Law Tribunal, New Delhi, Bench-II
Estimated date of closure of
insolvency resolution process: August 26, 2020
(180 days from commencement)
Insolvency professional: Mr. Darshan Singh Anand
Interim Resolution
Professional: Mr. Darshan Singh Anand
EG-46, Inder Puri
New Delhi 110012
E-mail: dsanand57@gmail.com
- and -
C/o Sumedha Management Solutions Pvt Ltd
B-1/12, 2nd Floor, Safdarjung Enclave
New Delhi 110029
E-mail: cirp.lvglobal@gmail.com
Last date for
submission of claims: March 25, 2020
MAGPPIE INTERNATIONAL: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Magppie International Limited
Registered office:
206, 2nd Floor, Jacksons Crown Heights
Plot No. 381, Twin District Centre
Sector-10, Rohini Delhi
North West DL 110085
IN
Insolvency Commencement Date: February 26, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: August 24, 2020
Insolvency professional: Ashwani Kumar Gupta
Interim Resolution
Professional: Ashwani Kumar Gupta
C-402, Cauvery Secenety
10/1-1, Raghvendra Extension
Tumkur Road, Yashwanthpur
Bangalore 560022
E-mail: akguptafca@gmail.com
- and -
D-116, Pocket-D
Sarita Vihar
New Delhi 110076
E-mail: magppie.cirp@gmail.com
Last date for
submission of claims: March 27, 2020
MAINI CONSTRUCTION: Ind-Ra Lowers LongTerm Issuer Rating to 'C'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Maini
Construction Equipments Private Limited's (MCEPL) 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:
-- INR90 mil. Fund-based working capital limit downgraded with
IND C (ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT
COOPERATING) rating; and
-- INR19 mil. Non-fund-based working capital limit 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 National Company Law Tribunal's order to
commence the corporate insolvency resolution process for MCEPL.
RATING SENSITIVITIES
Positive: Sustainable operations and improvement in the liquidity
position could be positive for the ratings.
Negative: A winding-up or liquidation order would be negative for
the ratings.
COMPANY PROFILE
MCEPL manufactures aluminum formwork, cuplock scaffolding, and wall
formwork, as well as solar structures.
MANTHARAGIRI TEXTILES: Ind-Ra Migrates B+ Ratings to NonCooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Mantharagiri
Textiles' Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND B+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating;
-- INR41.8 mil. Term loan due on August 2026 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR8.8 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 27, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Founded in 1990, Mantharagiri Textiles is a partnership firm that
manufactures cotton yarn at its facility in Senjerimalai near
Coimbatore.
NHS INDUSTRIES: CARE Keeps D on INR12.03cr Loans in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of NHS
Industries continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 12.03 CARE D; Issuer not cooperating;
Facilities on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from NHS Industries to monitor
the rating vide e-mail communications dated July 9, 2019 to
February 13, 2020 and numerous phone calls. However, despite our
repeated requests, the firm has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of best
available information, which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on NHS
Industries' bank facilities will now be denoted as CARE D; ISSUER
NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
The rating assigned to the bank facilities of NHS Industries (NHSI)
continues to be tempered by ongoing delays in debt servicing
obligations.
Key Rating Weaknesses
* On-going delays in debt servicing: The firm has on-going delays
in term loan installment repayments along with servicing of
interest obligations due to stressed
liquidity position.
* Short track record and small scale of operations with lack of
experience of promoters in polyethylene industry: The firm has
short track record of only three years in polyethylene industry.
NHSI is promoted by Mr. Bhargav Reddy N.S, who is a qualified
graduate. The proprietor is actively involved in day to day
operations of the firm. The total operating income, although
increased, stood small at INR 9.07 crores in FY19. Furthermore, the
proprietor of the firm has lack of experience in the similar line
of business.
* Working capital intensive nature of operations: The firm's
operations are working capital intensive in nature. The operating
cycle of the firm stood at 102 days in FY19 as compared to 13 days
in FY18. This was due to the increase in inventory holding period.
* Fluctuating profitability margins and net losses during the
review period: The Profitability margins of the firm have been
fluctuation during the review period. The PBILDT margin decreased
from 26.32% in FY18 to 14.49% in FY19 due to the increase in cost
of materials consumed and power and fuel expenses. The firm
incurred net losses of INR1.88 crore in FY19 as compared to INR1.03
crores in FY18 due to decline in operating profit resulting in
under absorption of financial expenses and depreciation
provisions.
* Financial risk profile marked by leveraged capital structure and
weak debt coverage indicators: The capital structure of the firm
remained leveraged during review period. The overall gearing ratio
stood improved from 10.31x as on March 31, 2018 to 6.96x as on
March 31, 2019. The total debt to GCA stood negative as on March
31, 2019. Total debt/cash flow operation also stood negative in
FY19.
* Geographically concentrated revenue profile with customer
concentration risk along with intense competition from established
and reputed competitors: The firm has presence only in Karnataka &
Andhra Pradesh. However, NHSI generates 85% of the total revenue
from the state of Karnataka region. The firm is into manufacturing
of cement which is highly competitive in nature with the presence
of many reputed medium and large established players in the
industry. The firm has 60% of total orders from single customers
resulting in customer concentration risk.
* Constitution of the entity as proprietorship firm with inherent
risk of withdrawal of capital: Constitution as a proprietorship
firm has the inherent risk of possibility of withdrawal of the
proprietor's capital at the time of personal contingency which can
adversely affect its capital structure. Furthermore, proprietorship
firms have restricted access to external borrowings as credit
worthiness of the proprietor would be key factors affecting credit
decision for the lenders. In FY 19, the proprietor has withdrawn
capital of INR 0.37 crore.
Key Rating Strengths
* Growth in total operating income during the review period: The
firm's TOI grew at a rate of 16.95% during the review period from
INR7.75 crore in FY18 to INR 9.07 crore in FY19.
NHS Industries (NHSI) was established in 2016, by Mr. Bhargav Reddy
N.S for manufacturing of High Density Polyethylene
(HDPE)/Polypropylene (PP) Woven Bags and Fabrics. The firm majorly
manufacture bags which is used in Cement, Sugar & Rice Industry.
The manufacturing unit is located at KIADB, Kudumalakunte,
Gauribidanur, Karnataka. The Proprietor of the firm is a qualified
graduate, however does not have any experience in the business. The
firm has an installed capacity of 200 MTPM. The firm purchases
calcium carbonate and Polypropylene from Plasmix Private Ltd and
Mangalore Refinery and Petrochemicals Limited. The firm has reputed
clientele i.e., ACC Limited, JSW Cement Limited and other
customers.
NILKANTH COTTON: CRISIL Lowers Rating on INR10cr Cash Loan to D
---------------------------------------------------------------
CRISIL has downgraded its rating on Nilkanth Cotton Fibers (NCF)'s
long-term bank facility to 'CRISIL D; Issuer Not Cooperating' from
'CRISIL B+/Stable; Issuer Not Cooperating'. The downgrade reflects
the ongoing irregularities and delays in debt servicing by NCF.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 2.25 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with NCF, seeking
information via letters and emails dated February 29, 2020, and
January 31, 2020, among others, apart from telephonic
communication. However, the issuer has remained non-cooperative.
'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 they have been arrived at, without any
management interaction, and are based on best available, limited,
or dated information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL has
not received any information on NCF's financial performance or
strategic intent. This restricts the ability to take a
forward-looking view on the firm's credit quality. CRISIL believes
the information available is consistent with Scenario 1 outlined in
the 'Framework for assessing consistency of information with
'CRISIL BB' rating category or lower'.
Based on the latest information available in the public domain,
CRISIL has downgraded its rating on NCF's long-term bank facility
to 'CRISIL D; Issuer Not Cooperating' from 'CRISIL B+/Stable;
Issuer Not Cooperating'. The downgrade reflects the ongoing
irregularities and delays in debt servicing by NCF.
NCF was formed as a partnership firm by members of the Sakarvadiya
family in 2014. The firm has an operating unit at Gondal (Rajkot).
OXFORD FACILITIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Oxford Facilites Management
Registered office:
136, Jessore Road
Kolkata
West Bengal 700055
Insolvency Commencement Date: March 13, 2020
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: September 9, 2020
(180 days from commencement)
Insolvency professional: Sneh Maheswari
Interim Resolution
Professional: Sneh Maheswari
9N, Block A
New Alipore
Kolkata 700053
E-mail: sneh.maheswari@gmail.com
cirp.ofm@gmail.com
Last date for
submission of claims: March 27, 2020
PATSPIN INDIA: CARE Keeps D on INR143.8cr Loans in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Patspin
India Limited (PIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 68.36 CARE D; Issuer not cooperating;
Facilities on the basis of best available
Information
Short term Bank 143.80 CARE D; Issuer not cooperating;
Facilities on the basis of best available
information
Long/Short-term 7.00 CARE D/CARE D; Issuer not
Bank Facilities cooperating; Based on best
available information
Detailed Rationale & Key Rating Drivers
PIL has not paid the surveillance fees for the rating exercise as
agreed to in its rating agreement. In line with the extant SEBI
guidelines , CARE's rating on of PIL's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings take into account the on-going delays in repayment of
debt and instances of devolvement of letter of credit due to
liquidity constraints.
Detailed description of the key rating drivers
Key Rating Weaknesses
Ongoing delays in debt servicing: During FY19, the company reported
net loss of INR2.4 crore on total income of INR579 crore. On
account of continuous losses over the years with inadequate cash
accruals, there have been ongoing delays in servicing of term loans
and instances of devolvement of Letter of Credit.
Patspin India Limited (PIL) is part of Kerala based GTN group. GTN
group was established by Late Mr. M.L. Patodia in 1960. GTN group
has presence in spinning yarn, knitting, processing and garmenting.
Primary business activity of PIL is production and sale of cotton
yarn (counts ranging from 20s to 100s). In addition to this, PIL is
also engaged in value-adding activities like TFO (Two-For-One)
twisting and gassing of textile yarn. Incorporated in the year
1991, as on March 31, 2018, the total capacity of PIL stood at
113,856 spindles.
POWER MAX: Ind-Ra Lowers LongTerm Issuer Rating to 'D'
------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Power Max
(India) Pvt Ltd's (PMIPL) Long-Term Issuer Rating to 'IND D' from
'IND C'.
The instrument-wise rating actions are:
-- INR210 mil. Fund-based working capital limits (long-term)
downgraded with IND D rating; and
-- INR271.5 mil. Non-fund-based limits (short-term) downgraded
with IND D rating.
KEY RATING DRIVERS
The downgrade reflects PMIPL's over-utilization of cash credit
facility for more than 30 consecutive days, till end-February 2020,
due to stretched liquidity.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
result in an upgrade.
COMPANY PROFILE
Incorporated in 1977, PMIPL provides integrated engineering
services, such as design, infrastructure development, construction,
and equipment erection, installation of pipelines, tanks and
vessels, majorly to power plants apart from steel, coal, alumina,
and other core industries.
REWA AGROTECH: CARE Keeps D on INR11.7cr Loans in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rewa
Agrotech (RA) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 11.74 CARE D; Issuer not cooperating;
Facilities on the basis of best available
Information
Short term Bank 0.50 CARE D; Issuer not cooperating;
Facilities on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from RA to monitor the ratings
vide e-mail communications/letters dated September 19, 2019,
December 3, 2019 and January 6, 2020 and March 2, 2020 and numerous
phone calls. However, despite our repeated requests, RA has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, RA has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on RA's
bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Rewa Agrotech (RA)
continue to remain constrained on account of delays in debt
servicing owing to poor liquidity position.
Detailed description of the key rating drivers
At the time of last rating on January 30, 2019 the following were
the rating strengths and weaknesses
Key Rating Weakness
Ongoing delays in debt servicing owing to poor liquidity position
The firm had taken term loan for funding of its project for
construction of warehouse. As per original repayment terms, the
repayment of term loan has started from April 2014 in monthly
installment. However, there are instances of delay in debt
servicing. The delay in debt servicing is due to non-receipt of
rental income from the Madhya Pradesh Warehousing and Logistics
Corporation (MPWLC) due to dispute regarding non construction of
warehouse within time permitted in terms of contract.
RA was formed in February 2011 as a partnership concern by Mr. Arun
Kumar Bansal, Ms. Sushma Shukla and Ms. Meena Bansal with an
objective to set up a warehouse. The firm has constructed warehouse
under the Private Entrepreneur Guarantee Scheme (PEG) of Food
Corporation of India (FCI). In this scheme, RA has constructed two
warehouse at Rewa and Niwas (Madhya Pradesh) with capacity of 25000
MTPA each and after construction, RA is receiving monthly rental of
INR 13 lakhs for each warehouse.
SAHAPUR COLD: CARE Withdraws 'D' Rating on Bank Facilities
----------------------------------------------------------
CARE said the ratings assigned to the bank facilities of Sahapur
Cold Storage (SCS) continue to remain constrained by its on-going
delay in debt servicing. Hence, CARE has reaffirmed and withdrawn
the outstanding rating of 'CARE D' assigned to the bank facilities
of Sahapur Cold Storage with immediate effect. The above action has
been taken at the request of Sahapur Cold Storage and 'No Objection
Certificate' received from the bank that has extended the
facilities rated by CARE.
Detailed description of the key rating drivers
Key Rating Weaknesses
On-going delay in debt servicing: There are on-going delays in term
loan and working capital debt servicing of the company.
Sahapur Cold Storage (SCS), started commercial operation from 2017,
is a Burdwan (West Bengal) based entity. It is engaged in the
business of providing cold storage services to potato growing
farmers and potato traders, having an installed storage capacity of
90,000 quintals in Vill- Sahapur, P.O-Parbatpur, P.S.-Jahalpur,
Dist- Burdwan, West Bengal.
SAHARA ENGINEERING: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sahara Engineering
Private Limited's (SEPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR120 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating; and
-- INR2.5 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 27, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2000, SEPL was founded by Manoj Kumar Jena and
provides comprehensive shipping services of clearing and
forwarding, cargo handling and transportation services to various
ports on the East Coast of India.
SHANTOL GREEN: CARE Withdraws 'D' Rating on Bank Facilities
-----------------------------------------------------------
CARE has reviewed the ratings assigned to the bank facilities of
Shantol Green (India) Private Limited (SGPL) to CARE D/CARE D and
has simultaneously withdrawn it, with immediate effect. The ratings
factor in its delay in debt servicing.
The rating withdrawal is at the request of SGPL and 'No Objection
Certificate' received from the banks that have extended the
facilities rated by CARE.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delay in debt servicing: There were delays in repayment of
principle and interest payments of term loan till December, 2019
due to poor liquidity position of the company.
Rajkot (Gujarat)-based, SGPL was incorporated in October 9, 2011 as
a private limited company by well-known 'Radhe Group' of Rajkot.
SGPL is engaged in manufacturing of fuel oil which is used in
heating furnace in substitution of diesel oil and carbon black
which finds its application in industries such as tyre, rubber
products, plastic, pipe, auto parts etc. as well in manufacturing
of conveyer belts, rubber sheet etc. SGPL has established its
manufacturing unit at Bhilwada, Rajasthan with installed capacity
of 90 tonne per day for fuel oil and 66 tonne per day for carbon
black.
TARANG EXPORTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Tarang Exports Private Limited
117, 1st floor, Jolly Bhavan 1
New Marine Lines
Vitthaldas Thackarsey Marg
Mumbai 400020
Insolvency Commencement Date: February 17, 2020
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: August 14, 2020
Insolvency professional: Mr. Jitendra Palande
Interim Resolution
Professional: Mr. Jitendra Palande
New Ajanta Avenue 5-3/D
#38 Paud Road, Kothrud
Pune 411038
E-mail: jitendra@7circles.co.in
- and -
Office No. 604, Nucleus Mall
Church Road, Camp
Pune 411001
E-mail: tarang@7circles.co.in
Last date for
submission of claims: March 24, 2020
TAURUS EXPORTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Taurus Exports Private Limted
Registered office:
A-17, Krishna Nagar-1
Gandhi Nagar Mod
Jaipur 302015
Insolvency Commencement Date: March 5, 2020
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: September 1, 2020
(180 days from commencement)
Insolvency professional: Mr. Anoop Bhatia
Interim Resolution
Professional: Mr. Anoop Bhatia
505, Sun Tower
SB-158A, Gandhi Nagar Mod
Jaipur, Rajasthan 302015
E-mail: ip.anoopbhatia@gmail.com
cirp.tepl@gmail.com
Last date for
submission of claims: March 23, 2020
TECHNO TRAK: Ind-Ra Migrates BB LT Issuer Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Techno Trak
Engineers' (TTE) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR8.3 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR5.96 mil. Term loan due on March 2023 migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 5, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
TTE is a Maharashtra-based partnership concern, established in
1986. It manufactures couplings and pup joints that are mainly used
in the petroleum industry.
VALLABH STEELS: CRISIL Lowers Rating on INR39cr Cash Loan to D
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Vallabh
Steels Limited (VSL) to 'CRISIL D/CRISIL D; Issuer Not Cooperating'
from 'CRISIL B+/Stable/CRISIL A4; Issuer Not Cooperating' because
of delay in meeting debt obligations by the company.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 39 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Letter of credit 26.5 CRISIL D (ISSUER NOT
& Bank Guarantee COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 4.8 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with VSL, through letters
and emails, dated May 31, 2019, November 15, 2019, March 9, 2020
and March 11, 2020, among others, apart from telephonic
communication, for obtaining information. However, the issuer has
remained non-cooperative.
'Investors, lenders, and all other market participants should
exercise due caution while using the ratings assigned or reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component, as they are arrived at without any
management interaction and are based on best available or limited
or dated information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the company's management,
CRISIL did not receive any information on the financial performance
or strategic intent of VSL, which restricts CRISIL's ability to
take a forward looking view on the entity's credit quality. CRISIL
believes information available on VSL is consistent with 'Scenario
1' outlined in the 'Framework for Assessing Consistency of
Information with 'CRISIL BB' rating category or lower'.
Based on the last available information, the ratings on the bank
facilities of VSL were revised to 'CRISIL B+/Stable/CRISIL A4;
Issuer Not Cooperating' from 'CRISIL BB/Negative/CRISIL A4+; Issuer
Not Cooperating' on December 12, 2019.
CRISIL has now downgraded its ratings on the bank facilities of VSL
to 'CRISIL D/CRISIL D; Issuer Not Cooperating' from 'CRISIL
B+/Stable/CRISIL A4; Issuer Not Cooperating' because of delay in
meeting debt obligations by the company.
Incorporated in 1968, VSL manufactures cold rolled (CR) coils,
automotive (auto) rims, and electric resistance welded pipes. Most
of the company's revenue and profit is derived from the sale of CR
coils to local manufacturers of bicycles and auto ancillary units.
VIKRANT FORGE: Ind-Ra Migrates 'D' Issuer Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vikrant Forge
Private Limited's (VFPL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR156.54 mil. Term loan (long-term) due on March 2020
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR400 mil. Fund-based limits (long-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR100 mil. Non-fund-based limit (short-term) migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 20, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
VFPL manufactures open die forgings, which are supplied in the
black-forged state, or further processed into rough machined and
finish machined states.
VISHVAS POWER: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vishvas Power
Engineering Services Private Limited's (VPESPL) Long-Term Issuer
Rating to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR28.89 mil. Term loan (long-term) due on March 2026 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR85 mil. Fund-based facilities (long-term/short-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR130 mil. Non-fund-based facilities (short-term) migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 27, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1995, Nagpur-based Vishvas Power Engineering
Services is engaged in the manufacturing, repairing,
remanufacturing, refurbishment and servicing of power transformers
up to 220kV at its factory.
ZAVISTA REALTORS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Zavista Realtors LLP
C-23, Greater Kailash Enclave Part 1
New Delhi 110048
Insolvency Commencement Date: March 5, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: September 1, 2020
Insolvency professional: Rajesh Kumar Goel
Interim Resolution
Professional: Rajesh Kumar Goel
H-127 Sarita Vihar
Opp Sarita Sadan
New Delhi 110076
E-mail: rajesh.goel@mrgoel.com
- and -
109, US Complex, First Floor
120, Mathura Road
Opp. Apollo Hospital
New Delhi 110076
E-mail: rajeshg1@gmail.com
Last date for
submission of claims: March 26, 2020
=========
J A P A N
=========
[*] JAPAN: Firms Braced for Drawn-Out Virus Hit; Recession Looms
----------------------------------------------------------------
Almost half of Japanese firms saw their output and sales slide last
month because of the coronavirus outbreak, with two-thirds
anticipating the impact from the pandemic to last several months or
longer, a Reuters poll showed, portending a big blow to an economy
teetering on the edge of recession.
Reuters says the spreading epidemic has hammered global stock
markets and disrupted trade, supply chains and tourism, stoking
fears of a global downturn and piling pressure on governments and
central banks to deploy stimulus.
A prolonged impact on corporate Japan could hamper Prime Minister
Shinzo Abe's Abenomics aim of generating a self-sustaining growth
cycle led by private-sector investment and spending, Reuters
relates.
The Reuters Corporate Survey found 47 percent of Japanese firms saw
their profits and output being affected by the virus outbreak, with
42 percent suffering from declines of up to 30 percent in
February.
In written comments, many companies complained about the closing of
factories in China, event cancellations, a slump in tourism and
declining trade with top partner China.
On the other hand, some managers in industries, including retail,
saw sales jump as consumers rushed to stock up on daily necessities
like toilet rolls, masks and groceries.
"China-bound demand is falling because clients' factories there are
running at utilisation of 50 percent to 70 percent," wrote a
manager at a paper and pulp maker, Reuters relays. "We are trying
to replace the production base with factories in other countries,
but output has not returned to the same level as before."
A machinery-maker manager wrote: "Our clients are trying to avoid
receiving services as much as possible, which has reduced points of
our contact with customers" worried about infections.
The Reuters Corporate Survey, conducted from March 2 to 12 for
Reuters by Nikkei Research, canvassed 501 big and midsize
nonfinancial companies. Roughly half answered questions on the new
virus impact on condition of anonymity to express opinions freely.
About half of the companies said their supply chains have been
affected by the fallout from the SARS-CoV-2 outbreak and that they
have reviewed or are considering reviewing their supply chain,
Reuters notes.
Some are eyeing alternative production bases in countries such as
Vietnam and Thailand. Many faced a shortage because of supply chain
disruptions, with about 70 percent facing a shortfall of up to 10
percent.
"We will wait until things return to normal because it's difficult
to shift away from China considering costs and distribution
networks," a retail manager wrote, Reuters relays.
About 43 percent of firms said it would take several months for the
virus impact on their business to be resolved, and another 22
percent saw no end to it for the foreseeable future, the poll
showed, in a sign corporate Japan is bracing for a long battle with
the virus, Reuters discloses.
Reuters adds that one wholesaler manager expected the virus impact
to last for several months, saying "it's wishful thinking. Without
prospects for early resolution, it would be a serious blow to all
industries." An industrial rubber-maker manager wrote: "As long as
there's no cure, we have no choice but say there's no hope for
resolution."
Japan's economy, the world's third-largest, shrank at its fastest
pace in six years in the December quarter, and risks from the
coronavirus pandemic could push the economy into recession this
quarter, according to Reuters.
Asked about the need for government support, strengthening of
medical facilities and prevention of infections are the top choice,
picked by about 60 percent of firms, followed by an economic
package, chosen by 18 percent, Reuters says.
"We must ban entry of Chinese and South Koreans into Japan. It's
insane to focus economic impact at a time of life-and-death
crisis," a wholesaler manager wrote in response to the survey.
"We must refer to Taiwan to adopt swift, concrete and effective
steps," a transport equipment-maker manager wrote. An industrial
rubber-maker manager said: "It's too late."
=====================
P H I L I P P I N E S
=====================
[*] Philippine Airlines Want Government Aid on Credit Schemes
-------------------------------------------------------------
Richmond Mercurio at The Philippine Star reports that the local
airline industry in the Philippines, which has been taking a heavy
beating due to travel restrictions brought about by the coronavirus
disease 2019 or COVID-19 outbreak, is seeking urgent assistance
from the government in the form of credit lines as well as
assurance of support for loans with private banks.
The STAR relates that Roberto Lim, executive director and vice
chairman of the Air Carriers Association of the Philippines Inc.
(ACAP), said local carriers are facing identical challenges as
other airlines in the world and, as such, they are also in need of
government support to help them survive the coronavirus crisis.
In the US, Reuters reported that major US airlines have sought a
government bailout of more than $50 billion as travel demand takes
a hit from the COVID-19 pandemic, the STAR notes.
"The nature of the problem is really identical. There was no
demand. People are not flying and more than that, because of the
shutdown, there is really no revenue," Mr. Lim told The STAR.
"So if there's no revenue, there is no cash. And whatever cash
there is obviously being depleted because you have to pay for
operating expenses which you cannot avoid like leases, salaries,
and the remaining operations within the next few days," he said.
According to The STAR, local carriers Philippine Airlines (PAL),
Cebu Pacific and AirAsia Philippines have all been severely
affected by the COVID-19, cancelling numerous flights, both local
and international.
PAL and Cebu Pacific, for their part, have taken more drastic
measures to cut costs, including laying off 300 ground-based
administrative and management personnel and over 150 cabin crew
members, respectively, relates the STAR.
"What we are asking is credit line. For GOCCs (government-owned and
controlled corporations) to extend credit lines because cash is the
important thing just so that business can continue," the report
quotes Mr. Lim as saying. "The credit lines are important because
we can draw on them and we can have the cash to pay," he said.
Mr. Lim said the ability of an airline to continue is dependent on
its day-to-day operations, the STAR relates.
"If you stop operations, there is no revenue. The margins are very
thin," he said.
Aside from GOCC lending, Mr. Lim said ACAP also wants the
government "to assure the private banks that they are supporting
the airline industry."
The STAR adds that Mr. Lim said local carriers want the government
to assure private banks so that they continue to extend new credit
lines to the airline industry, renew expiring ones, and grant
forbearance in payment deadlines.
He said private banks are afraid of lending to airline companies
given the current situation.
Banks provide commercial loans and they have their own terms. If
government can assure them that the government is supporting the
industry, then it will encourage the private banks to continue
lending," Mr. Lim said, The STAR relays.
Early this month, the government decided to defer payment among
local carriers of their landing, takeoff and parking charges across
all airports nationwide for one year to cushion the impact of the
COVID-19, according to The STAR.
"This (the deferment of payment) was done before the quarantine
that's why we wrote again saying there is now a changed
circumstance and we will really need your support now," Mr. Lim, as
cited by The STAR, said.
Mr. Lim told The STAR earlier this month that the magnitude of
losses among local carriers have already reached billions., and
they are expected to burn cash further as they continue to fly with
empty seats.
Aviation industry officials have said that local carriers are also
expected to undertake more cost-cutting measures that may include
workforce reduction should the travel ban on major markets due to
the coronavirus outbreak persists and further expands to more
territories in the coming months, The STAR adds.
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S I N G A P O R E
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BREADTALK GROUP: Seeks Noteholder OK to Waive Technical Default
---------------------------------------------------------------
Ng Ren Jye at The Business Times reports that Breadtalk Group has
launched a consent solicitation exercise (CSE) to get noteholders'
approval to waive a technical default for SGD100 million 4 per cent
fixed-rate notes due 2023, the company said on March 18.
According to the report, the food and beverage player is seeking to
waive breaches of the consolidated tangible net worth covenant and
the consolidated total borrowings to consolidated tangible net
worth covenant.
Additionally, the exercise seeks to lower the thresholds of the
covenants - consolidated tangible net worth will not be less than
SGD50 million while the consolidated total borrowings to
consolidated tangible net worth will not exceed a 3.5:1 ratio from
the quarter ending June 30, 2021, BT relates .
Meanwhile, another CSE proposal to be voted on would suspend
compliance from these two covenants for the period of Jan. 1, 2020
to March 31, 2021, BT reports.
The amendments and financial covenant holiday would give BreadTalk
more financial flexibility amid challenging conditions, it said.
These conditions include the widening losses of the group's bakery
business in China and Thailand, and significant deterioration of
financial performance of the group's bakery and food atrium
businesses in Hong Kong due to social unrest, BT relays.
The ongoing novel coronavirus pandemic also adds more uncertainty
to the company's operations, BreadTalk said.
BT adds that the CSE also proposes a call option for the notes,
with a call price, set at 100.5 per cent of par, exercisable during
the period commencing on, but excluding, April 24, 2020 and ending
March 31, 2021.
The voting deadline for the CSE is April 13, 2:30 p.m. A
noteholders meeting will be held on April 15, with results of the
CSE to be announced after the meeting ends, BT discloses.
United Overseas Bank has been appointed solicitation agent for the
CSE, the report notes.
Last month, BreadTalk said the trustee of the notes had not given
it notice to immediately repay noteholders following the technical
default.
The company's founder had in February made a voluntary conditional
cash offer of SGD0.77 per share to take BreadTalk private, adds
BT.
Headquartered in Singapore, BreadTalk Group Limited, an investment
holding company, engages in bakery, food court, restaurant, and
food and beverage businesses in Singapore, Mainland China, Hong
Kong, Taiwan, Southeast Asia, and internationally. The company
manufactures and retails various food, bakery, and confectionary
products, as well as engages in franchising activities. It also
manages and operates food courts, food and drinks outlets, eating
houses, and restaurants. In addition, the company bakes,
manufactures, and deals in bread, flour, and biscuits; acquires and
holds intellectual property rights; processes, distributes, and
sells premium coffee beans and tea dust; and distributes related
processing equipment. Further, it is involved in the wholesale of
confectionery and bakery products; and food and beverage management
activities. The company operates approximately 1,000 outlets in 16
countries under the BreadTalk, Toast Box, Bread Society, Food
Republic, Thye Moh Chan, The Icing Room, So Ramen, Song Fa Bak Kut
The, Din Tai Fung, Wu Pao Chun Bakery, Nayuki, and TaiGai brands.
HYFLUX LTD: Gets Letter of Interest From Potential Spanish Suitor
-----------------------------------------------------------------
The Business Times reports that Hyflux Ltd on March 19 said it has
received a letter of interest (LOI) from Spain-based FCC Aqualia.
The LOI is for a potential transaction involving Hyflux or its
assets, the troubled water treatment firm said in a bourse filing,
without disclosing further information, BT relays.
The company added that it will make the appropriate announcements
as and when there are material developments in this matter, relates
BT.
Aqualia is a water management company owned by Spain-listed
construction group FCC and Australian ethical fund IFM Investors,
BT discloses.
Last October, before Hyflux signed the restructuring agreement with
potential white knight Utico, the Middle Eastern utility firm had
claimed that Aqualia, as well as Europe's Suez Group, were eyeing
Hyflux's Algeria project, the report recalls.
In Algeria, Hyflux has desalination plants in Magtaa and in Souk
Tleta.
BT relates that the water treatment firm in March 2019 received a
request for arbitration from state-owned Algerian Energy Company
relating to the Souk Tleta plant. It concerned disputes surrounding
agreements related to the plant dating back to 2007.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company engaged WongPartnership LLP as legal advisors and Ernst
& Young Solutions LLP as financial advisors in this process. On
Jan. 29, WongPartnership applied to discharge themselves due to
difficulties relating to "loss of confidence and good cause" in
working with the client. The Company subsequently appointed
Clifford Chance and Cavenagh Law as its legal advisers in WongP's
place.
In November 2019, Hyflux entered into a restructuring deal with
United Arab Emirates-based utility Utico FZC, according to
Reuters.
SINGAPORE: DBS Group Predicts Possible Recession Due to COVID-19
----------------------------------------------------------------
CNBC reports that DBS Group, one of Asia's largest lenders, said
the Singapore economy is likely to sink into a recession following
the impact of the COVID-19 outbreak.
CNBC relates that economist Irvin Seah said in a note that the
services sector - particularly tourism, aviation, retail and
trade-related industries, will bear the brunt - but manufacturing
will not be spared either.
"A recession in Singapore appears inevitable, and we have revised
our full year GDP growth forecast for 2020 to -0.5% to reflect the
recession scenario," Mr. Seah wrote, CNBC relays.
The city-state has more than 300 confirmed cases, but 117 people
have been cured and discharged to-date, the report notes.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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thereof are US$25 each. For subscription information, contact
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