/raid1/www/Hosts/bankrupt/TCRAP_Public/200702.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
Thursday, July 2, 2020, Vol. 23, No. 132
Headlines
A U S T R A L I A
AFFINITY ENERGY: First Creditors' Meeting Set for July 13
FINDON PHARMACY: First Creditors' Meeting Set for July 9
JONES 97: First Creditors' Meeting Set for July 13
PACE LOGISTICS: First Creditors' Meeting Set for July 9
SYDNEY THEATRE: Auditor Casts Going Concern Doubt Over Future
TIGERLILY AUST: Joins Forces With Crumpler Following Collapse
VILLAGE PHARMACY: First Creditors' Meeting Set for July 9
C H I N A
PEKING UNIV: Restructuring Shows Limitations of Keepwell Deeds
I N D I A
A K LUMBERS: Ind-Ra Cuts LT Issuer Rating to B+, Outlook Stable
AIRCEL LTD: Lenders Likely to get INR6,630cr against INR58,670cr
BABA CONSTRUCTION: ICRA Lowers Rating on INR113cr Loan to B+
BANSAL FINE: ICRA Withdraws B+ Rating on INR30cr Cash Debt
CENTURY JOINT: ICRA Lowers Rating on INR420cr NCD to B+
CHIDAMBARAM SHIPCARE: ICRA Cuts Rating on INR2.50cr Loan to B+
COASTAL ENERGY: ICRA Keeps D Debt Ratings in Not Cooperating
CONCAST STEEL: SMC Power Acquires Unit via IBC
GANPATI ADVISORY: ICRA Keeps B+ INR5cr Debt Rating in Not Coop.
GREENDIAMZ BIOTECH: Insolvency Resolution Process Case Summary
GWASF QUALITY: ICRA Reaffirms B+ Rating on INR6.40cr Loan
JUNGLE HOMES: ICRA Cuts INR10cr LT Loan Rating to B+, Not Coop.
JYOTI GENERAL: ICRA Keeps B+ INR7.20cr Debt Rating in Not Coop.
K-PACK SYSTEMS: ICRA Keeps B+ INR1.25cr Debt Rating in Not Coop.
KALINGA BHARATI: Ind-Ra Keeps B Loan Rating in Non-Cooperating
KARPAGA VINAYAGAR: ICRA Cuts Rating on INR4.75cr Loan to B+
KGS SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating
KINETA GLOBAL: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
KNK NEXGEN: ICRA Lowers Rating on INR40cr ST Loan to D
KOHINOOR HOSPITALS: ICRA Cuts INR35.61cr Loan Rating to D, Not Coop
KRANTI COTTON: ICRA Lowers Rating on INR6.25cr Loan to B+
MBR FLEXIBLES: ICRA Cuts INR9.02cr Debt Rating to B+, Not Coop.
NIHAR COTSPIN: Insolvency Resolution Process Case Summary
PADMA POLYMERS: ICRA Keeps B+ INR8cr Debt Rating in Not Cooperating
PAXAL CORPORATION: ICRA Withdraws B Rating on INR8cr LT Loan
POPULAR FOUNDATIONS: ICRA Cuts Rating on INR5.50cr LT Loan to B+
PRAFFUL OVERSEAS: ICRA Withdraws D Rating on INR77.85cr Loan
PREMIER SEAFOODS: Ind-Ra Ups Issuer Rating to BB-, Outlook Stable
PS TOLL: ICRA Cuts INR790cr Term Loan Rating to B-, On Watch Neg.
PUNJAB METAL: Ind-Ra Cuts LT Issuer Rating to B-, Outlook Stable
RAJPAL AUTOLINK: Insolvency Resolution Process Case Summary
RELISHAH EXPORT: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
S D RICE: ICRA Keeps B INR16.50cr Debt Rating in Not Cooperating
SAYAJI INDUSTRIES: ICRA Withdraws MB+ Rating on INR20cr Loan
SIMHAPURI ENERGY: Insolvency Resolution Process Case Summary
SKL EXPORTS: ICRA Cuts Rating on INR7.0cr LT Loan to B+
UNIQUE GEMS: ICRA Lowers Rating on INR30cr LT Loan to B+
UP ASBESTOS: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
YEDESHWARI AGRO: ICRA Keeps B- Debt Ratings in Not Cooperating
J A P A N
JAPAN: Factory Output Slumps as Economy Sinks Deeper in Recession
SANDEN HOLDINGS: Files for Debt Restructuring Due to Falling Sales
S I N G A P O R E
KRISENERGY: DBS Revolving Credit Facility Maturity Moved to Dec. 31
- - - - -
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A U S T R A L I A
=================
AFFINITY ENERGY: First Creditors' Meeting Set for July 13
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Affinity
Energy and Health Ltd will be held on July 13, 2020, at 11:00 a.m.
at Level 11, 12-14 The Esplanade, in Perth, WA.
Bryan Kevin Hughes and Daniel Bredenkamp of Pitcher Partners were
appointed as administrators of Affinity Energy on July 1, 2020.
FINDON PHARMACY: First Creditors' Meeting Set for July 9
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Findon
Pharmacy Pty Ltd, trading as Priceline Pharmacy Findon, will be
held on July 9, 2020, at 4:00 p.m. at Level 4, 12 Pirie Street, in
Adelaide, SA.
Thomas Stuart Otway and Alan Geoffrey Scott of SV Partners were
appointed as administrators of Findon Pharmacy on June 29, 2020.
JONES 97: First Creditors' Meeting Set for July 13
--------------------------------------------------
A first meeting of the creditors in the proceedings of Jones 97
Dairy Contracting Pty. Ltd. will be held on July 13, 2020, at 11:00
a.m. via teleconference.
Shelley-Maree Brooks of Rodgers Reidy was appointed as
administrators of Jones 97 on June 5, 2020.
PACE LOGISTICS: First Creditors' Meeting Set for July 9
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Pace
Logistics Pty Ltd will be held on July 9, 2020, at 10:00 a.m. at
the offices of Slaven Torline, Ground Floor, at 243 Northbourne
Avenue, in Lyneham, ACT.
Michael Slaven of Slaven Torline was appointed as administrator of
Pace Logistics on June 30, 2020.
SYDNEY THEATRE: Auditor Casts Going Concern Doubt Over Future
-------------------------------------------------------------
Nick Galvin at The Sydney Morning Herald reports that Sydney
Theatre Company executive director Patrick McIntyre is "cautiously
optimistic" the theatre will reopen in September despite
significant cash flow issues and fresh challenges with coronavirus
cases in Australia.
According to SMH, Mr. McIntyre's comments come as auditors tagged
the STC's latest financial report with a warning casting
"significant doubt" over its ability to stay afloat.
Like every other performing arts company, STC is reeling after
being forced in March to close its doors amid the COVID-19 crisis,
the report says. But it was already facing financial stress with
the closure for refurbishment of its Walsh Bay theatres at the
beginning of 2019.
SMH relates that the double whammy has left Sydney's premier
theatre company in the most precarious situation it has faced in
its more than 40-year history.
"Any industry that has its revenue switched off for six or nine
months is in a critical condition," the report quotes Mr. McIntyre
as saying. "We are all as a rule pretty reliant on earned revenue
in Australia, particularly performing arts companies. It's a very
tight situation."
SMH says the company's cash flow forecasts for the rest of this
year are based on several upbeat assumptions, particularly that
audiences will be allowed to return to theatres by September.
Mr. McIntyre said he was "cautiously optimistic" about reopening
then. The earliest theatre would return to Walsh Bay, following the
rebuild, would be late February 2021.
"But obviously the situation in Victoria is concerning and we're
all watching that very closely," he said.
A decision would have to be made in about a month on whether STC
can open in September, to allow for preparations such as set
building and rehearsals, according to SMH.
"We have four or five shows that are meant to take place before the
end of this year, so if we can get back on stage we can draw down
on that cash," Mr. McIntyre, as cited by SMH, said. "If for
whatever reason theatres don't open before the end of the year,
then we will have a whole new series of conversations to have with
all our stakeholders."
The KPMG auditor's warning noted: "The conditions disclosed . . .
indicate a material uncertainty exists that may cast significant
doubt on the group's ability to continue as a going concern," SMH
relays.
To make it through the financial storm, the STC board is also
counting on extra assistance from federal and state governments,
the report states. In particular they are looking for rent relief
on the premises at Pier 4/5 from the NSW government and to benefit
from a substantial slice of the federal government's AUD250 million
rescue package announced last week.
SMH adds that the board continues to meet fortnightly and has
adopted "safe harbour" protection under the Corporations Act that
can shield directors from liability over potential insolvency.
"We believe strongly in the future of the company so the risks are
well worth taking," chairman Ian Narev in his introduction to the
report, which is for the year to December 2019, SMH relays.
According to SMH, Mr. McIntyre said STC was a "fair way" from
receivership and, while cash reserves had been significantly
depleted, there was still money on hand, including some earmarked
for the building project.
"[But] it's not only a matter of being able to get through this
year, it's being able to launch next year as well," he said. "We
just need to feel confident that we can put the 2021 subscription
series in the market."
TIGERLILY AUST: Joins Forces With Crumpler Following Collapse
-------------------------------------------------------------
Inside Retail reports that embattled swimwear brand Tigerlily is
making a comeback and joining forces with iconic Aussie bag brand,
Crumpler, just a few months after entering voluntary
administration.
Both brands will now be led by Crumpler CEO Adam Wilkinson and
share IT systems, warehousing and head office space in Melbourne,
the report says.
"Crumpler and Tigerlily remain separate businesses with independent
identity and aesthetic as well as individual design marketing and
customer support teams," Inside Retail quotes Mr. Wilkinson as
saying in a statement. "This shared approach will allow both brands
to streamline costs and create more robust financial efficiencies
particularly in light of the unfolding COVID-19 impact on the
retail sector."
Tigerlily went into voluntary administration in March, just a few
months after launching a rebrand to celebrate its 20th
anniversary.
"Tigerlily was impacted negatively by the downturn in the retail
sector but more particularly, coronavirus," Korda Mentha partner
Scott Langdon told Inside Retail. "There was limited foot traffic
through shopping centres and therefore sales."
"Without a doubt, the sales data is overwhelming that it's
definitely significantly slowed since coronavirus has come through.
It's incredibly telling."
This year, Crumpler celebrates its 25th anniversary. In 2018, it
began work towards revitalising the brand and entering the South
East Asian market.
Scott David Harry Langdon and Jennifer Anne Nettleton of
KordaMentha were appointed as administrators of Tigerlily Aust on
March 22, 2020.
VILLAGE PHARMACY: First Creditors' Meeting Set for July 9
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Village
Pharmacy Burnside Pty Ltd, trading as The Village Pharmacy, will be
held on July 9, 2020, at 3:00 p.m. at Level 4, 12 Pirie Street, in
Adelaide, SA.
Thomas Stuart Otway and Alan Geoffrey Scott of SV Partners were
appointed as administrators of Village Pharmacy on June 29, 2020.
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C H I N A
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PEKING UNIV: Restructuring Shows Limitations of Keepwell Deeds
--------------------------------------------------------------
Moody's Investors Service says that the current restructuring of
Peking University Founder Group Corp. (PUFG) is the latest example
highlighting the limitations of keepwell deeds, a structure used by
some Chinese companies to support and facilitate financing of their
subsidiaries, such as their issuance of offshore bonds.
"There are significant constraints to the credit support available
under keepwell deeds, because the deeds do not ensure that support
from their providers will be forthcoming when issuers are in
distress," says Jessie Tung, a Moody's Vice President and Senior
Credit Officer.
Reflecting these uncertainties, Moody's rates bonds supported by
keepwell deeds at least one notch lower than the keepwell
provider.
"The case of PUFG highlights issues regarding legal enforceability
and priority of claims and contrasts with a debt guarantee under
which guaranteed bondholders have direct recourse to parent
companies providing such guarantees," adds Tung.
As of June 17, Moody's rated bonds with keepwell deeds issued by 38
offshore subsidiaries of Chinese companies. The providers of these
deeds are generally issuers' parent companies.
The difference between the ratings of the bond and the keepwell
provider takes into account the legal and regulatory uncertainties
that limit keepwell providers' ability and willingness to provide
sufficient and timely financial support, and the risk that these
bonds may rank lower in the priority of claims in cases of default
or debt restructuring. The strategic importance of the bonds'
issuer to the keepwell provider is a key consideration in Moody's
assessment of willingness to support.
Moody's rates bonds more than one notch below the keepwell
providers if it assesses that the latter does not have a strong
incentive to provide support, for example because the issuer is of
less strategic importance to the keepwell provider. A rating gap
wider than one notch can also be driven by a large gap between the
underlying credit quality of the keepwell provide and the issuer.
About Peking Founder
Chinese state-owned Peking University Founder Group Corp. provides
information technology services. The Company offers software
development, electronic publishing system development, smart city
solution development, data operation, and other services. Peking
University Founder Group also operates financing, medical
technology development, and other businesses.
On Feb. 19, 2020, Founder Holdings Limited received a notification
letter from Peking Founder, regarding a civil order and decision
letter received by Peking Founder from The First Intermediate
People's Court of Beijing. Pursuant to the civil order and decision
letter, the Court decided to accept the application made by Bank of
Beijing Co., Ltd. for the initiation of restructuring procedure
against Peking Founder, and appointed Peking Founder liquidation
team as the administrator of Peking Founder. The Peking Founder
liquidation team consists of, among others, the People's Bank of
China, the Ministry of Education of the People's Republic of China,
relevant financial regulators and relevant departments of Beijing
Municipal Government.
Bank of Beijing Co. Ltd., one of the creditors of Peking University
Founder Group Corp., asked a court to restructure the indebted
state-owned conglomerate in February 2020, according to Caixin
Global.
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I N D I A
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A K LUMBERS: Ind-Ra Cuts LT Issuer Rating to B+, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded A K Lumbers
Limited's (AKLL) Long-Term Issuer Rating to 'IND B+' from 'IND
BB-(ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR45 mil. Fund-based limits downgraded with IND B+/Stable/IND
A4 rating; and
-- INR90 mil. (Reduced from INR 90.5 mil.) Non-fund-based limits
downgraded with IND A4 rating.
Analytical Approach: Ind-Ra has changed its rating approach to
standalone from a consolidated view to arrive at the ratings but
continues to consider the strong operational and strategic linkages
among the group companies namely, AKLL, Punjab Metal Works Private
Limited ('IND B-'/Stable) and Jindal Wood Products Private Limited
('IND D') while arriving at the ratings. All the three entities
share common promoters and operate in a similar line of business.
KEY RATING DRIVERS
Liquidity Indicator - Poor: AKLL's working capital utilisation was
98.43% for the 12 months ended May 2020. Its cash flow from
operations deteriorated to negative INR7.66 million in FY19 (FY18:
negative INR0.90 million) due to unfavourable changes in the
working capital. The cash and cash equivalents amounted to INR3.49
million at FYE19 (FYE18: INR2.40 million) against total debt
INR106.29 million. The working capital cycle improve to 128 days
in FY19 (FY18:157 days), owing to a shorter receivables period as
well as inventory period.
The rating reflects to AKLL's continued small scale of operations
as indicated by revenue of INR449.37 million in FY19 (FY18:
INR350.16 million). The revenue increased in FY19 due to a rise in
the demand of timber and the company's end-products. In FY20,
Ind-Ra expects the revenue to have been INR454.76 million. The
EBIDTA margin deteriorated to a modest 3.8% in FY19 (FY18: 6.06%)
due to intense competition in the industry and increased raw
material price. The company's return on capital employed was 9.0%
in FY19 (FY18: 12.0%). In FY20, Ind-Ra expects the EBITDA margin to
have remained at FY19 levels due to continued market pressure.
The ratings continue to be constrained by AKLL's modest credit
metrics. The gross interest coverage (operating EBITDA/gross
interest expenses) marginally improved to 1.34x in FY19 (FY18:
1.32x) due to a decline in the interest expense to INR12.76 million
in FY19 (FY18: INR16.09 million); the net financial leverage
(adjusted net debt/operating EBITDA) deteriorated to 6.02x (4.48x)
due to an increase in debt.
The ratings are supported by the group's promoter's experience of
more than two decades in the timber business. Furthermore, AKLL
also receives group support from its group companies Punjab Metal
Works and Jindal Wood Products in the form of common treasuries and
cash infusion as unsecured debt from promoters, when required.
RATING SENSITIVITIES
Positive: Substantial growth in the scale of operations leading to
an improvement in the credit metrics with interest coverage rising
above 1.8x and an improvement in the liquidity will be positive for
the ratings.
Negative: Deterioration in the scale of operations leading to a
decline in the credit metrics or deterioration in the liquidity
will be negative for the ratings.
COMPANY PROFILE
Incorporated in 2000, AKLL is promoted by Atul Jindal and trades in
and processes timber logs, mainly teak and hard wood.
AIRCEL LTD: Lenders Likely to get INR6,630cr against INR58,670cr
----------------------------------------------------------------
Ankur Mishra at Financial Express reports that the resolution plan
for Aircel Ltd is likely to fetch financial creditors INR6,630
crore from UV Asset Reconstruction Company (UVARC), as per approval
granted by the Mumbai bench of the National Company Law Tribunal
(NCLT). The total debt of Aircel stands at INR58,670 crore.
FE says the resolution plan implies an around 89% haircut for
lenders, without any substantial amount to be paid upfront.
According to the report, the lenders will receive payments over
five years through monetisation of assets, realisation of pending
claims and issuance of zero-coupon optionally convertible
debentures (ZOCD) worth INR3,750 crore. UVARC will invest INR11
crore, in which INR4 crore will be incurred towards initial
expenditure for restarting the identified business operations.
Initially, lenders will hold 24% and UVARC will hold 76% in the
reconstructed company as per resolution plan. There is also a
provision of increasing financial creditor's stake to 74%, in case
the plan does not materialise.
FE relates that the two-member bench of the NCLT, Mumbai comprising
Rajasekhar VK and Ravikumar Duraiswamy observed, "UV ARC's plan
appeared to be for 'winding up or liquidation' instead of being a
resolution plan." However, the tribunal granted its approval
stating that it was bound by the Supreme Court's decision that
prevents it from interfering into the merits of the commercial
decision taken by the committee of creditors (CoC). The CoC had
earlier approved UVARC's resolution by a margin of 73.88% vote,
which was more than the statutory minimum requirement of 66% vote
as per the Insolvency and Bankruptcy Code (IBC).
According to the report, Ashish Pyasi, associate partner, Dhir and
Dhir Associates, said, "The timelines in the plan mostly suggest
outer limits, as this plan is more of monetisation of assets and
then repayment from such proceeds." The emphasis on resolution
rather than liquidation is visible as spectrum being one of the
most valuable assets for this company would have become zero in
case liquidation, Pyasi further said.
UVARC expects to garner INR800-1,300 crore from spectrum held by
Dishnet Wireless, subject to approval from department of telecom
(DoT), the report notes. Similarly UVARC is counting on pending
refunds of INR298 crore by DoT, as per the resolution plan, FE
states. The identified businesses which UVARC finds feasible to
generate revenue are bulk SMS, data centre and leasing of towers.
This is expected to generate a revenue of INR69 crore in the first
year, INR96 crore in the second year and INR125 crore in the third
year.
"This will set the precedent for other cases as previous similar
attempts from creditors and resolution applicants failed for some
reason or the other," the report quotes Ashish Pyasi as saying.
UVARC had submitted resolution plan for Aircel and its allied
companies Dishnet wireless, Aircel Cellular. The telecom company
had filed for voluntary insolvency in February 2018, citing
liquidity concerns and inability to service debt.
About Aircel Limited
Aircel Limited, along with its subsidiaries Aircel Cellular Limited
and Dishnet Wireless Limited, is a telecom service provider with a
pan India presence. Aircel offers GSM-based 2G services in all the
22 telecom circles and has also introduced 3G services in select
geographies.
As reported in the Troubled Company Reporter-Asia Pacific on March
2, 2018, Reuters said Aircel Ltd filed for bankruptcy on Feb. 28,
2018, pressured by a high debt pile and mounting losses following a
price war triggered by a telecom upstart. Talks between Aircel, 74%
owned by Malaysia's Maxis Communications Bhd, and Reliance
Communications Ltd (RCom) to combine their wireless business was
called off in late 2017 due to regulatory and legal uncertainties
and interventions by various parties, Reuters said.
Aircel, whose debt amounts to INR155 billion (US$2.38 billion),
then tried unsuccessfully to restructure its debt, Reuters related.
BABA CONSTRUCTION: ICRA Lowers Rating on INR113cr Loan to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Baba
Construction Private Limited (BCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based/ 12.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Non-fund Based/ 113.00 [ICRA]B+ (Stable); ISSUER NOT
Bank Guarantee COOPERATING; Rating downgraded
from [ICRA]BB (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Rationale
The rating downgrade is because of lack of adequate information
regarding BCPL's performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Baba Construction Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
BCPL was incorporated in 1988 and is involved in the business of
civil construction. It is a closely held private limited company,
which is promoted by separate individuals and their families. The
promoters have extensive experience in civil construction business.
The company undertakes contracts for construction of multi-storey
buildings, sewerage, water supply and road construction work etc.
It caters to state government entities such as the Agra Development
Authority, the Ghaziabad Development Authority and the Kanpur
Development Authority.
BANSAL FINE: ICRA Withdraws B+ Rating on INR30cr Cash Debt
----------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Bansal
Fine foods Private Limited (BFFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 30.00 [ICRA]B+(Stable) ISSUER NOT
COOPERATING; Withdrawn
Short term non 6.00 [ICRA]A4 ISSUER NOT COOPERATING;
fund based Withdrawn
facilities
Interchangeable (4.00) [ICRA]A4 ISSUER NOT COOPERATING;
limits Withdrawn
Rationale
The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, and as desired by the company on receipt
of no objection certificate provided by the bank. ICRA does not
have adequate information to suggest that the credit risk has
changed since the time the ratings were last reviewed.
Key rating drivers and their description
Key rating drivers have not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.
Liquidity position
Liquidity position has not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.
Rating sensitivities
Sensitivities have not been captured for the rating withdrawal due
to inadequacy of incremental information since the time the ratings
were last reviewed.
Bansal Fine foods Private Limited (BFFPL) was established as a
partnership firm 'Bansal Overseas' in 1998. Later in 2013, Bansal
Overseas was converted into a private limited company through
incorporation of BFFPL. The company is involved in milling and
sorting of rice to produce raw and parboiled rice. The company is
promoted by Mr. Satyapal Bansal and his family who have an
experience of more than seven decades in the rice milling industry.
The plant is located at Karnal (Haryana) with a milling capacity of
14 metric tons per hour (MTPH) and sorting capacity of 24 MTPH.
In FY2018, on a provisional basis, the company reported a profit
after tax of INR1.21 crore on operating income (OI) of INR205.07
crore compared to a profit after tax of INR0.72 crore on an OI of
INR183.26 crore in the previous year.
CENTURY JOINT: ICRA Lowers Rating on INR420cr NCD to B+
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Century
Joint Development Pvt Ltd (CJDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 420.00 [ICRA]B+ (Stable) ISSUER NOT
Debentures COOPERATING; Rating downgraded
from [ICRA]BB+ (Negative) and
continues
Rationale
The ratings are downgraded because of lack of adequate information
regarding CJDPL's performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with CJDPL, ICRA has been trying to seek information from the
entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Century Joint Developments Private Limited (CJDPL) is a part of the
Century Group that was founded in 1973 by the brothers, Dr.
Dayananda Pai and Mr. Satish Pai. The group was initially focused
on aggregation and selling of land, and subsequently moved on to
plotted developments and partnering in joint development projects,
before finally entering into construction and development of
residential projects. The group has a development portfolio of over
5.5 million sq. ft., apart from 15.0 million sq. ft. in the
pipeline, with a land bank in excess of 3,000 acres. CJDPL was
established in 2010 as a 100% subsidiary of Century Real Estate
Holdings Private Limited, the holding company of the group, to
undertake development of small scale residential projects.
CHIDAMBARAM SHIPCARE: ICRA Cuts Rating on INR2.50cr Loan to B+
--------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Chidambaram Shipcare Private Limited (CSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.50 [ICRA]B+(Stable); ISSUER NOT
Fund Based COOPERATING; Rating Downgraded
Facilities from [ICRA]BB+(Stable) and
Continues to remain under
'Issuer Not Cooperating' category
Long Term- 0.65 [ICRA]B+(Stable); ISSUER NOT
Unallocated COOPERATING; Rating Downgraded
from [ICRA]BB+(Stable) and
Continues to remain under
'Issuer Not Cooperating' category
Short Term- 2.85 [ICRA]A4; ISSUER NOT COOPERATING;
Non Fund Rating Downgraded from [ICRA]A4+
Based Facilities and Continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding CSPL performance and hence the uncertainty around its
credit risk.
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by the rated entity". The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Chidambaram Shipcare Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Chidambaram Shipcare Private Limited (CSPL) was set up by Mr. K.
Chidambaram in 1979 to provide afloat ship repair services and
fabrication services at shipyards and ship building yards.
Currently, apart from providing these services, CSPL also has
dealership and service support agreements with:
* Volvo India Private Limited for marine propulsion and genset
engines, spare parts and accessories;
* SMAG Peiner Grabs (India) Private Limited for grabs; and
* Optimarin for ballast water treatment systems.
CSPL is a registered Ship Repair Unit (SRU) with the Directorate
General of Shipping for rendering afloat ship repair services. It
currently has a workshop at the Chennai Port and another at
Darukhana, near the Mumbai Port, which act as the base for its
southern and western operations, respectively.
COASTAL ENERGY: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR1094.50-crore bank facilities of
Coastal Energy Private Limited continues to remain under 'Issuer
Not Cooperating' category. The ratings are denoted as
[ICRA]D/[ICRA]D ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 113.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating Continues to remain under
Issuer not cooperating category
Short Term– 645.50 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating Continues to remain under
Issuer not cooperating category
Long Term/ 335.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term- COOPERATING; Rating Continues
Unallocated to remain under issuer not
cooperating category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
Coastal Energy Private Limited (CEPL) engages in non-coking coal
trading and coal handling services. The company is promoted by Mr.
Ahmed Abdul Rahman Buhari, along with Mr. Ameer Faizal. It
undertakes coal handling services for exports made by its
Dubai-based Group company, Coal & Oil Company, in India.
CONCAST STEEL: SMC Power Acquires Unit via IBC
----------------------------------------------
Livemint reports that Noida-based SMCPower Generation Ltd has
acquired the main steel mill and power plant of Concast Steel and
Power Ltd under the liquidation process with an upfront payment of
INR300 crore to lenders, said three people familiar with the
matter. This is the largest acquisition under the liquidation stage
so far in the Insolvency and Bankruptcy Code, 2016.
SMC Power, incorporated in 2000, is part of the promoter group that
also owns SMC Foods and Creamy Foods Ltd, which sells dairy
products in north India under the Madhusudan brand, Livemint
discloses. SMC Power has an installed annual production capacity of
200,000 tonnes of sponge iron, 350,000 tonnes of billets and
250,000 tonnes of TMT steel bars, besides captive power generation
capacity of 33 megawatts in Jharsuguda, Odisha.
"The SMC group will invest a further INR300-400 crore to make the
plant operational and streamline capacities," the first person
said. "The company reported an operating revenue of INR140 crore
last year, so it will be able to take on this additional
investment. Since Concast's facilities are close to its existing
plants in Odisha, the synergies will be significant," he added.
Mool Chand Aggarwal, chairman, SMC Power, confirmed the
development, but declined to elaborate, Livemint says.
According to Livemint, SMC Power offered INR300 crore for Concast's
Jharsuguda plant, which has the capacity to produce 775,000 tonnes
per annum of sponge iron and pig iron, 250,000 tonnes of TMT steel
bars, structures and ferro alloys. SMC also acquired a 70MW captive
power plant as part of the deal. SMC was advised by investment
banking firm Singhi Advisors.
Concast Steel and Power, an integrated iron and steel manufacturer
with a sintering plant and sponge iron units in Jharsuguda, went
into bankruptcy in November 2017, with outstanding dues of nearly
INR10,000 crore, Livemint discloses. State Bank of India is the
lead banker in the consortium that had lent to Concast. With no
offers during the corporate insolvency resolution process, the
Kolkata bench of the National Company Law Tribunal ordered the
company into liquidation in September 2018.
GANPATI ADVISORY: ICRA Keeps B+ INR5cr Debt Rating in Not Coop.
---------------------------------------------------------------
ICRA said the ratings for the INR5.00 crore bank facilities of
Ganpati Advisory Limited continue to remain under Issuer Not
Cooperating category. The long-term rating is denoted as [ICRA]B+
ISSUER NOT COOPERATING with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 5.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating Continues
to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Ganpati Advisory Limited was incorporated as a closely held public
limited company in 2003. It was formed to invest in group concerns,
which are involved in the manufacturing of cement. However, it has
started cement manufacturing by establishing its own facility in
2013 with an installed capacity of 600 metric tonne per day (MTPD).
The company procures clinker, gypsum and fly ash from the local
market to produce cement. GAL manufactures and sells cement under
the brand names of 'Shakti' and 'Kohinoor Gold Cement'. It sells to
wholesalers in Uttar Pradesh and Madhya Pradesh. Mr. Anil Kumar
Agrawal, Managing Director of the company, looks after the
day-to-day operations of the company and also heads the other group
companies involved in a similar line of business.
GREENDIAMZ BIOTECH: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Greendiamz Biotech Limited
Registered office:
Setu, Suite 303-4-5
Shilp Cross Road
Off C.G. Road
Navrangpura
Ahmedabad 380009
Gujarat
Insolvency Commencement Date: June 1, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: November 28, 2020
(180 days from commencement)
Insolvency professional: Mr. Chandra Prakash Jain
Interim Resolution
Professional: Mr. Chandra Prakash Jain
D-501, Ganesh Meridian
Opposite Gujarat High Court
S.G. Road
Ahmedabad 380060
E-mail: jain_cp@yahoo.com
Last date for
submission of claims: June 15, 2020
GWASF QUALITY: ICRA Reaffirms B+ Rating on INR6.40cr Loan
---------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of GWASF
Quality Castings Private Limited's (GWASF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based–
Working Capital 6.40 [ICRA]B+(Stable); reaffirmed
Fund-based-
Term Loan 2.70 [ICRA]B+(Stable); reaffirmed
Unallocated
Limits 0.40 [ICRA]B+(Stable); reaffirmed
Rationale
The rating reaffirmation continues to factor in GWASF small scale
of operations with a decline in its revenue and profitability in
FY2020 following weak domestic demand from end-user process
industries. The revenues and profitability remain exposed to raw
material price and forex fluctuations.
The rating remains constrained by the high working capital
intensive nature of operation due to elongated debtor levels.
Further, in FY2020 with increase in working capital intensity and
lower than expected cash accruals, the company's liquidity position
has remained stretched rendering it highly dependent on working
capital limits.
The rating continues to factor in the company's high customer
concentration and intensely competitive nature of the industry,
which limit bargaining power as well as its pricing flexibility
though partly mitigated by long standing customer relationships.
Notwithstanding the above risk, the rating continues to derive
comfort from the extensive experience of the company's promoters
and the established track record of the company in the
steel-casting industry.
Further, established relationship with reputed customers and the
preferred supplier agreement with Flowserve Corporation with annual
off-take arrangement, which support its business prospects. The
rating also takes into account the comfortable debt profile of the
company with low gearing and moderate coverage indicators.
Key rating drivers and their description
Credit strengths
* Extensive experience of the promoters in the casting industry:
Established in 1988, GWASF's promoters have over three decades of
experience in the steel-casting industry. Over the years, the
company has received various certifications has developed
capabilities mainly to cater to the requirements of valve and pump
manufacturers.
* Preferred vendor status and yearly off-take arrangement with
Flowserve Corporation: GWASF is the preferred vendor for Flowserve
Corporation, one of the leading manufacturers and suppliers of
pumps, valves and components to process industries (power, oil,
gas, chemical etc.) all over the world. GWASF has a three-year
preferred supplier agreement with this client and has been
receiving steady business over the last decade. However, the
company's ability to receive healthy business in FY2021 in the
backdrop of the Covid-19 outbreak remains to be seen.
* Comfortable capital structure and coverage indicators: With a
revenue decline in FY2020, the company's funding requirements were
lower resulting in low debt. Consequently, GWASF's gearing
continued to improve as reflected by 0.54 times as on January 31,
2020 (10M FY2020 provisional results shared by the company), better
than 0.78 times as on March 31, 2019. In absence of any long term
repayment obligations, the company's debt coverage indicators
remained healthy with interest coverage of 6.63 times, DSCR of
3.74 times and Total Debt/OPBITDA of 1.76 times in 10M FY2020,
though impacted by lower profitability when compared to 7.97 times,
4.16 times and 1.55 times, respectively in FY2019.
Credit challenges
* Small scale of operations: GWASF's scale of operation is small
with the revenue of INR19.51 crore in FY2020 declined from INR22.10
crore in FY2019. Reduced order inflow following weak demand from
the end-user industries in FY2020 and further expected in FY2021 in
backdrop of Covid-19 remains a concern. The small scale of
operations and low net worth (Rs 10.07 in 10MFY2020) restricts its
operational and financial flexibility.
* High customer concentration risk: GWASF derived more than 70% of
the revenue from Flowserve Corporation, thereby, exposing the
company to customer concentration risk. ICRA notes that the company
has established healthy relationships with other customers which
lends some comfort.
* Margins exposed to raw-material price fluctuations and forex
risks: The company's revenues and margins are vulnerable to price
fluctuations as well as product mix. With high inventory holding
requirements due to long execution period, the company's
profitability can fluctuate in line with raw-material prices,
however it makes efforts to carry out procurement based on existing
orders. With around 60% of its revenues derived from exports, the
profitability is also exposed to foreign exchange fluctuation
risks. Given that the bank borrowings are foreign currency
denominated, there is partial natural hedge available for the
receivables.
Liquidity position: Stretched
* GWASF's working capital intensity remained high in 10MFY2020
owing to elongated debtor levels. Even though the company's
cashflow from operations remained positive, it remained dependent
on its working capital limits. GWASF's utilisation remained high at
90% against the drawing power leading to limited cushion. ICRA also
notes that the company has reported INR0.86-crore outstanding term
loan as on March 31, 2020 which is scheduled to be fully repaid in
next two fiscals. The company has also availed moratorium under
RBI's Covid-19 scheme. In this backdrop, the liquidity position is
likely to remain stretched.
Rating sensitivities
Positive triggers - ICRA may upgrade GWASF's ratings if there is a
significant improvement in the scale of operations while sustaining
profitability and debt coverage. Additionally, an improvement in
working capital intensity leading to improved liquidity position on
a sustained basis could lead to a positive trigger.
Negative triggers - Pressure on GWASF's ratings may arise if there
is a decline in scale due to a delay in the project execution.
Also, negative triggers can be due to increase in working capital
intensity which would impact the liquidity position of the company.
Specific credit metrics that could lead to a downgrade of GWASF's
rating could be If the TOL/TNW increases beyond 3.0 times on a
sustained basis.
Established in 1988, GWASF Quality Castings Private Limited
manufactures steel and ferrous alloy castings for valves, pumps
etc. It was started by Mr. Gautham Krishnan, who has over three
decades of experience in the castings industry. The company's
manufacturing facility is in Mangalore with an installed capacity
of 720 MT per annum. The company started exporting its products to
the US and Europe in 1995. In 10M FY2020, on a provisional basis,
the company reported a net profit of INR2.3 crore (excluding
depreciation and tax) on an operating income (OI) of INR18.2 crore
compared to a net profit of INR2.2 crore on an OI of INR22.1 crore
in FY2019.
JUNGLE HOMES: ICRA Cuts INR10cr LT Loan Rating to B+, Not Coop.
---------------------------------------------------------------
ICRA has revised rating for INR10.00-crore of Jungle Homes Holidays
Private Limited (JHHPL) from [ICRA]BB- (Stable) and moved to the
'Issuer Not Cooperating' category. The rating is now denoted as
[ICRA]B+ (Stable) ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 10.00 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING; Rating revised
from [ICRA]BB-(Stable) and
moved to 'Issuer Not
Cooperating' category
ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.
JHHPL was incorporated in 2008 and started its operation of a
five-star resort named The Tigress Ranthambore from April 2015. It
is promoted by Mr. Saumitra Singh and his wife Mrs. Himanshi Singh.
It is located in Sawai Madhopur, Rajasthan. The heritage property
is located near the Ranthambore National Park and offers two types
of rooms – Royal Luxury Suites and Royal Luxury Villas. Built on
300,000 square feet, the resort has a build-up area of 100,000
square feet with amenities like spa, swimming pool, gymnasium,
banquet hall, garden area, parking space, two restaurant-cum-bar
and a roof-top barbecue.
JYOTI GENERAL: ICRA Keeps B+ INR7.20cr Debt Rating in Not Coop.
---------------------------------------------------------------
ICRA said the ratings for the INR7.20 crore bank facilities of
Jyoti General Industries continue to remain under Issuer Not
Cooperating category. The rating is denoted as [ICRA]B+ ISSUER NOT
COOPERATING with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.20 [ICRA]B+ (Stable); ISSUER NOT
COOPERATING; Rating Continues
to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
Jyoti General Industries was established in 1981 by Mr. Than Mal
Totla and Mr. Prabhulal Totla as a partnership firm. In 2004 the
partnership was reconstituted with Mr Than Mal Totla, Mr. Vinod
Kumar Totla, Ashok Kumar Totla, Shiv Kumar Totla as partners in an
equal ratio. JGI is engaged in the processing and trading of rice.
The manufacturing facility of the company is located on Chittor
road, Bundi Rajasthan.
K-PACK SYSTEMS: ICRA Keeps B+ INR1.25cr Debt Rating in Not Coop.
----------------------------------------------------------------
ICRA said the ratings for the INR5.00-crore bank facilities of
K-Pack Systems Private Limited Continues to remain under 'Issuer
Not Cooperating' category'. The ratings are denoted as "[ICRA]B+
(stable)/A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1.25 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING Rating continue to
Remain in the 'Issuer Not
Cooperating' category
Short-term– 2.00 [ICRA]A4 ISSUER NOT COOPERATING;
Non-fund Based Rating continues to remain in the
'Issuer Not Cooperating' category
Short-term– 1.75 [ICRA]A4 ISSUER NOT COOPERATING;
Unallocated Rating continues to remain in the
'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
K-Pack System Private Limited (KPSL) was incorporated as a private
limited company in 1992 with Mr. Ritwik Shah and Ms. Pratima
Chipalkatt as the Managing Director and the Director of the company
respectively. Besides an office each in Bangalore, Baroda and
Mumbai, it also has a manufacturing facility in Bangalore that
manufactures water treatment plants, generalised plants for water
treatment projects, tailor made machines for specific projects and
equipment. The company has been in the field of oil water
separation and waste-water treatment with Dutch technology for the
last 17 years and has been certified an ISO 9001-2008 by TÜV
Rhineland India Private Limited.
KALINGA BHARATI: Ind-Ra Keeps B Loan Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kalinga Bharati
Foundation'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 rating. The rating will continue to appear as 'IND
B (ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR55.00 mil. Bank loans maintained in non-cooperating
category with IND B (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on June
28, 2018. Ind-Ra is unable to provide an update as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1995 in Bhubaneswar, Kalinga Bharati Foundation is a
charitable society which manages four institutes- a nursing
college, nursing school, a college and a school.
KARPAGA VINAYAGAR: ICRA Cuts Rating on INR4.75cr Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Sri
Karpaga Vinayagar Textiles, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.50 [ICRA]B+(Stable); ISSUER NOT
Fund Based COOPERATING; Rating Downgraded
Facilities- from [ICRA]BB-(Stable) and
Cash Credit Continues to remain under
'Issuer Not Cooperating'
category
Long Term- 4.75 [ICRA]B+(Stable); ISSUER NOT
Fund Based– COOPERATING; Rating Downgraded
Term Loan from [ICRA]BB-(Stable) and
Continues to remain under
'Issuer Not Cooperating'
category
Rationale
The rating is downgraded because of lack of adequate information
regarding Sri Karpaga Vinayagar Textiles performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Sri Karpaga Vinayagar Textiles, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Sri Karpaga Vinayagar Textiles was started in 1990 as a partnership
firm by Mr. Muthumaran, Mr. Sathya Kumar, and Ms. Velumani. Mr.
Muthumaran retired in 2006 and Ms. Suganya (wife of Mr. Sathya
Kumar) joined the firm as partner. Located in Pollachi, Tamil
Nadu, the firm has a capacity of 27,616 spindles and is into
blended yarn manufacturing (75% polyester and 25% cotton) in the
count range of 50s-70s.
KGS SUGAR: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------
ICRA has continued the long-term and Short-term ratings for the
bank facilities of KGS Sugar & Infra Corporation Limited to the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term, 117.33 [ICRA]D; ISSUER NOT COOPERATING;
Fund based- Rating continues to remain under
Cash credit 'Issuer Not Cooperating' category
Long Term, 210.81 [ICRA]D; ISSUER NOT COOPERATING;
Fund based- Rating continues to remain under
Term loan 'Issuer Not Cooperating' category
Short term, 52.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating continues to remain under
'Issuer Not Cooperating' category
Long term/ 69.86 [ICRA]D; ISSUER NOT COOPERATING;
Short term- Rating continues to remain under
Unallocated 'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
KGS is involved in the manufacturing of sugar and its allied
products. The company has a sugar plant with a capacity of 4,500
tonnes of crush per day (TCD), which is forward integrated with a
power co-generation unit of 14 MW. KGS is also setting up a sugar
refinery unit of 400 tonnes per day (TPD) capacity. Its
manufacturing facilities are located at Niphad in Nashik district
of Maharashtra. KGS began its sugar mill and co-generation
operations in January 2015, while the sugar refinery was expected
to commence operations from October 2016.
KINETA GLOBAL: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Kineta Global
Limited's (KGL) Long-Term Issuer Rating at 'IND BB-'. The Outlook
is Stable.
The instrument-wise rating action is:
-- INR420 mil. (reduced from INR500 mil.) Fund-based working
capital limits affirmed with IND BB-/Stable/IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects KGL's continued medium scale of
operations, as indicated by revenue of INR770 million in FY19
(FY18: INR1,018 million; FY17: INR1,883 million). The revenue
declined steadily since FY18 due to the shift in company's focus
towards contract works from the trading business. The share of
contract works in the total revenue increased sharply to around 70%
in FY19 (FY18: 25%). In 10MFY20, the company achieved revenue of
INR445.30 million. Ind-Ra expects KGL to have recorded revenue of
around INR750 million for FY20. The company had an outstanding
order book of only INR52.26 million as of May 2020, reflecting lack
of revenue visibility over the medium term.
The ratings reflect the weak credit metrics due to the modest
EBITDA margins. The net leverage improved to 5.1x in FY19 (FY18:
6.2x) because of an increase in the absolute EBITDA to INR87.8
million in FY19 (FY18: INR81.4 million) and reduction in the
company's working capital limits. The interest coverage remained
stable at 1.2x in FY19 (FY18: 1.2x), as the company’s finance
costs increased in line with the EBITDA margins. Ind-Ra expects the
metrics to have improved slightly in FY20 on account of the
reduction in the working capital limits and the consequent fall in
interest costs.
The ratings are constrained by KGL's modest EBITDA margins. The
EBITDA margin increased sharply for the second consecutive year to
around 11.4% in FY19 (FY18: 8.0%; FY17: 4.5%), mainly on account of
higher contribution from the high-margin contract segment and the
falling share of the thin-margin trading segment. Furthermore, a
premium has been loaded into the pricing for the extended credit
period offered to the customers. Ind-Ra expects the margins to have
remained at FY19 levels in FY20. The ROCE improved slightly to 5.2%
in FY19 (FY18: 4.7%).
Liquidity Indicator- Poor: KGL's average maximum utilisation of the
fund-based limits was around 97.6% for the 12 months ended May
2020. Also, there have been instances of overutilisation up to 21
days in Andhra Bank and up to three days in State Bank of India
('IND AAA'/Stable) on account of interest debit at the end of the
month. The company has been continuously reducing its working
capital limits on account of the decline in trading income. The
company's limits reduced to INR250 million and further to INR220
million from October 2019 from INR300 million in FY18. The
company's working capital cycle elongated to 402 days in FY19
(FY18: 334 days) on account of an increase in the inventory days to
292 days in FY19 (FY18: 242 days) on account of an increase in
inventory holding towards the year-end. The company has availed the
Reserve Bank of India-moratorium for the interest on working
capital facilities during March-August 2020.
The ratings, however, are supported by the promoters' experience of
around two decades in the manufacturing of burnt lime, imports of
metallurgical coal and coke, and exports of iron ore, and trading
of building materials, which has enabled the company to establish
strong relationships with customers and suppliers.
RATING SENSITIVITIES
Negative: A decline in the revenue and profitability and/or further
tightening of liquidity, leading to deterioration in the credit
metrics, all on a sustained basis, could be negative for the
ratings.
Positive: A substantial and sustained improvement in the revenue,
profitability, liquidity and credit metrics could be positive for
the ratings.
COMPANY PROFILE
Established in 2006, KGL primarily undertakes engineering,
procurement and construction irrigation projects on sub-contract
basis. It is also engaged in the business of trading of iron ore,
building materials such as TMT bars, cement and granite.
KNK NEXGEN: ICRA Lowers Rating on INR40cr ST Loan to D
------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of KNK
Nexgen Construction Pvt Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 15.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based/CC Rating downgraded from [ICRA]BB
(Stable) ISSUER NOT COOPERATING
and continues to remain under
'Issuer Not Cooperating' category
Short Term- 40.00 [ICRA]D ISSUER NOT COOPERATING;
Non Fund Based Rating downgraded from [ICRA]A4
ISSUER NOT COOPERATING and
continues to remain under
'Issuer Not Cooperating' category
Long Term/ 5.00 [ICRA]D/[ICRA]D ISSUER NOT
Short Term- COOPERATING; Rating downgraded
Unallocated from [ICRA]BB (Stable)/[ICRA]A4
ISSUER NOT COOPERATING and
continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating downgrade reflects delays in Debt Servicing. The rating
is based on limited information on the entity's performance since
the time it was last rated in October 2019.
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with KNK Nexgen Construction Pvt Ltd, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Key rating drivers and their description
Credit strengths: NA
Credit challenges
There have been delays in debt servicing as mentioned in publicly
available sources. The client account is NPA since last
November 2019.
Liquidity position: Poor
KNK Nexgen Construction Pvt Ltd liquidity profile is poor as
reflected by irregularities in debt servicing by entity.
KOHINOOR HOSPITALS: ICRA Cuts INR35.61cr Loan Rating to D, Not Coop
-------------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kohinoor
Hospitals Private Limited (KHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 35.61 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating downgraded from [ICRA]B-
(Stable) and moved to 'Issuer Not
Cooperating' category
Unallocated 21.80 [ICRA]D ISSUER NOT COOPERATING;
amount Rating downgraded from [ICRA]B-
(Stable) and moved to 'Issuer Not
Cooperating' category
Rationale
The rating downgrade reflects the delays in debt servicing over the
past 6 months by KHPL to the lender, as confirmed by them to ICRA.
The company has been submitting monthly "No Default Statement" till
April 2020 confirming the regular debt repayment. The rating is
based on limited information on the entity's performance since the
time it was last rated in December 2018. The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Kohinoor Hospitals Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Key rating drivers and their description
Credit strengths
Not applicable
Credit challenges
Recent delays in debt servicing - There has been delays in debt
repayment as mentioned by the lender.
Liquidity position: Poor
KHPL's liquidity profile is poor as reflected by recent
irregularities in debt servicing by the company.
Incorporated in May 2007, Kohinoor Hospitals Private Limited
('KHPL') was promoted by the Mumbaibased Kohinoor Group, as part of
the Group's endeavour to venture into the healthcare sector. KHPL
has set up a 147- bed, multi-speciality hospital at the Kurla
suburb of Mumbai, which became operation in FY2011. The project is
a part of an integrated township project undertaken by the Group.
The hospital commenced operations with 71 paid beds that were fully
operational in July 2010. At present, ~123 beds are operational.
KHPL's board of members comprise Mr. Unmesh Manohar Joshi, Ms.
Anagha Manohar Joshi and Ms. Madhavi Unmesh Joshi.
KRANTI COTTON: ICRA Lowers Rating on INR6.25cr Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kranti
Cotton and Oil Industries (KCI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 6.25 [ICRA]B+ (Stable) ISSUER NOT
Limits COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 0.77 [ICRA]B+ (Stable) ISSUER NOT
limits COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The downgrade is because of lack of adequate information regarding
KCI performance and hence the uncertainty around its credit risk.
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by the rated entity".
The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Kranti Cotton and Oil Industries (KCI), ICRA has been trying
to seek information from the entity to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Morbi-based Kranti Cotton and Oil Industries (KCOI) was established
in August 2013, by Mr. Shaileshbhai Kavar and four other partners.
KCOI is involved in ginning and pressing of raw cotton and crushing
of cotton seeds. It started commercial production from March 2014.
At present, the plant has 17010 MTPA for ginning and 10159 MTPA of
crushing operation capacity. The partners of the firm are
associated with other concerns namely Patel Oil Industries and
Kranti Oil Industries, which are engaged in similar line of
business.
MBR FLEXIBLES: ICRA Cuts INR9.02cr Debt Rating to B+, Not Coop.
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of MBR
Flexibles Limited (MBR), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based- 3.09 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
moved to 'Issuer Not Cooperating'
category
Fund-based- 9.02 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating downgraded
from [ICRA]BB- (Stable) and
moved to 'Issuer Not Cooperating'
category
Non-fund 3.00 [ICRA]A4 ISSUER NOT COOPERATING;
Based Letter Rating moved to 'Issuer Not
Of Credit Cooperating' category
Unallocated 0.89 [ICRA]B+ (Stable)/A4 ISSUER NOT
COOPERATING; Long term rating
downgraded from [ICRA]BB-(Stable)
and rating moved to Issuer Not
Cooperating category
Rationale
The downgrade is because of lack of adequate information regarding
MBR performance and hence the uncertainty around its credit risk.
ICRA assesses whether the information available about the entity is
commensurate with its rating and reviews the same as per its
"Policy in respect of non-cooperation by the rated entity". The
lenders, investors and other market participants are thus advised
to exercise appropriate caution while using this rating as the
rating may not adequately reflect the credit risk profile of the
entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with MBR Flexibles Limited (MBR), ICRA has been trying to seek
information from the entity to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Ahmedabad based, MBR Flexibles Limited (MBR) was incorporated in
2010 and is a family-owned company of Rajasthanbased MBR Group
which has diversified business interest spanning over five decades.
MBR group started its operations in 1960s and has been involved in
the chemicals trading, textile auxiliaries and bulk intermediates.
MBR, managed by the Chopra family is involved into manufacturing
flexible packaging used across various industries such as FMCG,
pharmaceutical, home & personal, agricultural etc. The company
commenced its operations in 2012 and has an installed capacity of
600 tonne/month. The products profile includes printed/laminated
film, pouches like vacuum pouch, kraft pouch, zipper pouch etc.
NIHAR COTSPIN: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Nihar Cotspin Private Limited
S No. 21/22, Bhairav Compound
Shelar Village Bhiwandi Thane
Maharashtra 421302
Insolvency Commencement Date: March 13, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: December 21, 2020
(180 days from commencement)
Insolvency professional: Dharit Kishorbhai Shah
Interim Resolution
Professional: Dharit Kishorbhai Shah
C/o. Bipin & Co
Chartered Accountants
302, Centre Point
R.C. Dutt Road
Alakpuri, Vadodara
Gujarat 390007
E-mail: bipin.smdt@gmail.com
cirp.nihar@gmail.com
Last date for
submission of claims: July 9, 2020
PADMA POLYMERS: ICRA Keeps B+ INR8cr Debt Rating in Not Cooperating
-------------------------------------------------------------------
ICRA said the ratings for the INR15.00 crore bank facilities of
Padma Polymers (PP) continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as
"[ICRA]B+(Stable)/ [ICRA]A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 8.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
Non–fund based– 6.00 [ICRA]A4 ISSUER NOT
COOPERATING;
Letter of Credit Rating continues to remain under
the 'Issuer Not Cooperating'
category
Unallocated 1.00 [ICRA]B+(Stable)/[ICRA]A4; ISSUER
Limits NOT COOPERATING; Rating continues
to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.
As part of its process and in accordance with its rating agreement
with PP, ICRA has been trying to seek information from the entity
so as to monitor its performance, but despite repeated requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information, and in line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's
Rating Committee has taken a rating view based on the best
available information.
Established in 1998, PP is in the business of importing and trading
plastic raw materials like plastic granules, high density
polyethylene (HDPE), low density polyethylene (LDPE), paraffin wax
and other chemicals. The firm has a wide variety of products
available at affordable prices. It is promoted by Mumbai based –
Mr. Viresh and Mr. Paresh Timbadia, who have been in the business
of trading polymers for over a decade.
PAXAL CORPORATION: ICRA Withdraws B Rating on INR8cr LT Loan
------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Paxal
Corporation, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Withdrawn
Short Term- 11.00 [ICRA]A4 ISSUER NOT COOPERATING;
Non Fund Based Withdrawn
The rating assigned to Paxal Corporation has been withdrawn at the
request of the company and based on the no objection certificate
received from the banker, and in accordance with ICRA's policy on
withdrawal and suspension. ICRA is withdrawing the rating and that
it does not have information to suggest that the credit risk has
changed since the time the rating was last reviewed.
Rationale
Key rating drivers
The key rating drivers have not been captured as the rated
instrument(s) are being withdrawn.
Liquidity position
Liquidity position has not been captured as the rated instruments
are being withdrawn.
Rating sensitivities
Rating sensitivities have not been captured as the rated
instruments are being withdrawn
Paxal Corporation was incorporated in 2007 as a partnership firm.
The firm is mainly involved in trading of steel products such as
sheets, coils, strips etc. It imports stainless-steel from various
suppliers in Malaysia, Spain, Vietnam, China etc and sells to
multiple small traders and manufacturers in Bangalore and some
parts of Tamil Nadu.
POPULAR FOUNDATIONS: ICRA Cuts Rating on INR5.50cr LT Loan to B+
----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Popular
Foundations Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.50 [ICRA]B+(Stable); ISSUER NOT
Fund Based COOPERATING; Rating Downgraded
Facilities- from [ICRA]BB-(Stable) and
Cash Credit Continues to remain under
'Issuer Not Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding Popular Foundations Private Limited performance and hence
the uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.
As part of its process and in accordance with its rating agreement
with Popular Foundations Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.
Popular Foundations Private Limited was established in 1998 by Mr.
Venaktesh who is the managing director of the company. PFPL
undertakes contracts in the construction segment with an experience
of over two decades in the construction industry in Chennai, Tamil
Nadu. The company undertakes construction of civil structures such
as colleges, schools, factories, hotels and other commercial
buildings.
PRAFFUL OVERSEAS: ICRA Withdraws D Rating on INR77.85cr Loan
------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Prafful Overseas Private Limited (POPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 111.92 [ICRA]D; ISSUER NOT COOPERATING;
Withdrawn
Cash Credit 45.30 [ICRA]D; ISSUER NOT COOPERATING;
Withdrawn
Letter of Credit/ 77.85 [ICRA]D; ISSUER NOT COOPERATING;
Bank Guarantee Withdrawn
Rationale
The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, and as desired by the company on receipt
of no objection certificate provided by its bankers. ICRA does not
have adequate information to suggest that the credit risk has
changed since the time the ratings were last reviewed.
Key rating drivers and their description
Key rating drivers have not been captured for the rating withdrawal
due to inadequacy of incremental information since
the time the ratings were last reviewed.
Liquidity position
Liquidity position has not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.
Rating sensitivities
Sensitivities have not been captured for the rating withdrawal due
to inadequacy of incremental information since the time the ratings
were last reviewed.
Incorporated in 1990, Prafful Overseas Private Limited (POPL)
manufactures embroidered fabric and nylon filament yarn. POPL
originally started its manufacturing operations for embroidered
fabrics from its facility at GIDC Sachin, Surat (Gujarat). Later in
2008, it diversified its operations by setting up a unit at GIDC
Panoli, Ankleshwar (Gujarat) for manufacturing nylon yarn. POPL
(the flagship company) is a part of the Surat-based Prafful Group,
promoted by Sri Narain Aggarwal and family. The Group has an
established presence in various segments of the textile industry
like yarn manufacturing, dyeing, printing, ready-to-stitch ethnic
women's wear, saris, dress materials and embroidery work through
various entities.
PREMIER SEAFOODS: Ind-Ra Ups Issuer Rating to BB-, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Premier Seafoods
Exim Private Limited's (PSEPL) Long-Term Issuer Rating to 'IND BB-'
from 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR61.9 mil. (reduced from INR73.88 mil.) Long-term loan*# due
on June 2024 upgraded and withdrawn; and
-- INR180 mil. (increased from INR111.97 mil.) Fund-based working
capital limit upgraded with IND BB-/Stable/IND A4+ rating.
*upgraded to 'IND BB-'/Stable/'IND A4+' before being withdrawn
#Ind-Ra is no longer required to maintain the ratings, as the
agency has received a no objection certificate from the lender.
This is consistent with the Securities and Exchange Board of
India's circular dated March 31, 2017 for credit rating agencies.
KEY RATING DRIVERS
The upgrade reflects PSEPL's revenue growth to INR1,249 million in
FY20 (FY19: INR1,099 million), owing to the receipt of higher
number of orders. The company achieved revenue of INR170 million in
2MFY21. PESPL's revenue in 1QFY21 is likely to have been affected
by the COVID-19-led lockdown. However, according to the management,
exports demand started to improve from May 2020. The scale of
operations continues to be medium. The company has outstanding
orders worth INR164.9 million in hand and expects to receive orders
worth INR700 million orders to be executed by November 2020. FY20
numbers are provisional in nature.
The company's EBITDA margins remained modest despite improving to
5.2% in FY20 (FY19: 4.8%), mainly due to lower raw material prices
and the sale of its high-margin product i.e. ready-to-cook seafood.
The return on capital employed came in at 9% in FY20 (FY19: 10%).
The ratings also factor in PESPL's modest credit metrics. The
company's net adjusted leverage (net adjusted debt/EBITDA) improved
to 3.2x in FY20 (FY19: 4.1x) and EBITDA interest cover (operating
EBITDA/gross interest expense) was stable at 3.3x (3.3x). The
improvement in the net leverage was on account of the increase in
the operating EBITDA to INR65 million in FY20 (FY19:
INR53.1million). The credit metrics are likely to remain modest in
the medium term due to the expected dip in the operating EBITDA.
Liquidity Indicator – Stretched: PSEPL's maximum utilisation of
working capital limit was 90.4% during the 12 months ended May
2020. The cash flow from operations turned negative to INR33
million in FY20 (FY19: INR1 million), due to changes in working
capital cycle. The cash and cash equivalent of the company stood at
INR5 million at FYE20 (FYE19: INR3 million). The company's fund
flow from operations remained positive over FY15-FY20 (FY20: INR37
million; FY19: INR32 million).The net working capital cycle
stretched to 53 days in FY20 (FY19: 34 days) on fewer payable days
at 8 in FY20 (FY19: 22). PSEPL availed the Reserve Bank of
India-prescribed moratorium for a part of long-term facilities over
March-May 2020.
Moderate Geographical Concentration: PSEPL derives 100% of its
revenue from exports, especially to markets in Japan, Europe,
Vietnam, China, Korea and the Middle East. The majority of the
exports during FY20 (66%) and FY19 (62%) were to Japan. The ratings
are supported by PSEPL's promoters who have over two decades of
experience in the culturing and processing of shrimp and fish.
RATING SENSITIVITIES
Positive: An increase in the scale of operations along with an
improvement in the liquidity position leading to higher operating
EBITDA, resulting in an increased visibility of the net leverage
falling below 5x, all on a sustained basis, will lead to a positive
rating action.
Negative: Higher-than-expected deterioration in the operating
performance and/or a further stretch in the working capital cycle,
and/or concentration on single-export geography, leading to
increased visibility of deterioration in the credit metrics and
liquidity position, will lead to a negative rating action.
COMPANY PROFILE
Incorporated in 2000, PSEPL processes sea-caught and cultured
shrimps. Based in Kerala, the company has three processing units,
one each in Cochin (Kerala), Aroor (Alappuzha) and Paradip
(Odisha), with daily processing capacity of 113mt per day, of which
80% capacity is utilised. The company primarily caters to customers
in Europe, Japan and other Asian countries.
PS TOLL: ICRA Cuts INR790cr Term Loan Rating to B-, On Watch Neg.
-----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of PS Toll
Road Private Limited (PSTRPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 790.0 [ICRA]B-; downgraded from
[ICRA]B+ (Stable) and placed
under 'rating watch with
Negative implications'
Rationale
On May 21, 2020, NHAI has served a termination notice to PSTRPL.
NHAI has attributed this move as PSTRPL's failure in completing the
project within the stipulated timelines, breach of maintenance and
safety clauses and non-payment of premium to NHAI within the period
specified in the concession agreement. ICRA is given to understand
that the company is currently in a discussion stage with NHAI and
has requested to grant 6 months more time to complete the project.
Following this, ICRA has downgraded the rating and has placed it
under rating watch with negative implications. ICRA will closely
monitor the developments and would keep the investors updated on
the implication of the same on the credit profile of the company.
ICRA takes note of the moratorium being availed by the company on
debt repayments till August 31, 2020 as part of the COVID-19 -
Regulatory package announced by the Reserve Bank of India (RBI) on
March 27, 2020.
Key rating drivers and their description
Liquidity position: Stretched
The liquidity position of PSTRPL remains stretched with
unencumbered cash balance of INR7.9 crore as on March 31, 2019. The
company has to create a Debt Servicing Reserve Account (DSRA)
equivalent to one quarter of debt servicing obligations; the same
will be created out of undisbursed loan amount of INR32 crore as on
December 31, 2019. The company has to incur a pending project cost
of INR62 crore (excluding DSRA) as on December 31, 2019 which will
be funded through INR9 crore of term loan and balance through
internal accruals/ promoter's contribution. The repayment
obligation stands at INR16.4 crore in FY2021 and INR24.2 crore in
FY2022 respectively.
Rating sensitivities
Positive triggers - The crystallisation of scenarios for rating
upgrade is unlikely over the medium term. However, if there is an
improvement in the sponsor's credit profile or the company
identifies alternate sources to fund the pending project cost and
cash gap to meet its debt obligation, the ratings might be
upgraded.
Negative triggers - Downward pressure on the ratings might emerge
if there is any adverse regulatory action or restrictions imposed
by NHAI for usage of funds lying in escrow account, thereby
weakening the liquidity profile of PSTRPL.
Incorporated in February 2010, PS Toll Road Private Limited
(PSTRL), is a special purpose vehicle (SPV) promoted by Reliance
Infrastructure Limited (R Infra) and Jiangsu Provincial
Transportation Engineering Group Co. Ltd. (JTEG) for widening of
Pune - Satara stretch from existing 4 lanes to 6 lanes on
Built-Operate-Transfer (BOT Toll) basis in the state of
Maharashtra. The Project is a part of NH 4 and starts at Km 725.00
and ends at km 865.35 of NH 4, with a total length of about 140.35
km. The project was awarded by the National Highways Authority of
India (NHAI) based on the highest premium quoted of INR90.90 crore
in the first year (escalates at 5% p.a. thereafter). The concession
period is for 24 years from the appointed date (i.e., October 1,
2010).
PUNJAB METAL: Ind-Ra Cuts LT Issuer Rating to B-, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Punjab Metal
Works Private Limited's (PMWPL) Long-Term Issuer Rating to 'IND B-'
from 'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based limits downgraded with IND B-/Stable/IND
A4 rating; and
-- INR35 mil. Non-fund-based limits downgraded with IND A4
rating.
Analytical Approach: Ind-Ra has changed its rating approach to
standalone from a consolidated view to arrive at the ratings but
continues to consider the strong operational and strategic linkages
among the group companies namely, PMWPL, A K Lumbers Limited ('IND
B+'/Stable) and Jindal Wood Products Private Limited ('IND D')
while arriving at the ratings. All the three entities share common
promoters and operate in a similar line of business.
KEY RATING DRIVERS
Liquidity Indicator - Poor: PMWPL's working capital utilisation was
99.32% for the 12 months ended May 2020. Its cash flow from
operations deteriorated to negative INR7.66 million in FY19 (FY18:
negative INR0.90 million) due to unfavourable changes in the
working capital cycle that worsened to 724 days (222 days), owing
to an elongation in the receivables period as well as inventory
period. The cash and cash equivalents amounted to INR0.20 million
at FYE19 (FYE18: INR0.71 million) against the total debt INR54.99
million.
The scale of operation is small as indicated by revenue of INR54.80
million in FY19 (FY18: INR146.65 million) due to a slowdown in the
end-user industry. In FY20, the revenue is likely to have improved
to INR75 million due to an increase in the demand for timber and
the company's end products. The EBITDA margins remain modest,
despite an improvement to 14.18% in FY19 (FY18: 9.10%) on the back
of lower raw material prices. The company's return on capital
employed was 6.0% in FY19 (FY18: 12.6%). In FY20, EBITDA margins
are likely to have been stable year-on-year. The company's return
on capital employed stood at 8.1% in FY20.
The ratings also factor in the company's weak credit metrics. The
gross interest coverage (operating EBITDA/gross interest expenses)
marginally deteriorated to 1.14x in FY19 (FY18: 1.98x) due to
deterioration in the absolute EBIDTA to INR7.77 million in FY19
(FY18: INR13.34 million). Its net financial leverage (adjusted net
debt/operating EBITDA) deteriorated to 7.05x in FY19 (FY18: 3.72x)
due to an increase in the short-term debt.
The ratings are supported by the group's promoter's experience of
more than two decades in the timber business. Furthermore, PMWPL
also gets support from its group companies A K Lumbers and Jindal
Wood Products in the form of common treasuries and cash infusion as
unsecured debt from promoters, when required.
RATING SENSITIVITIES
Positive: Substantial growth in the scale of operations leading to
an improvement in the credit metrics with interest coverage above
1.5x and an improvement in the liquidity will be positive for the
ratings.
Negative: Deterioration in the scale of operations leading to a
decline in the credit metrics or any weakening in the liquidity
will be negative for the ratings.
COMPANY PROFILE
PMWPL processes plywood and veneer, and trades timber logs, mainly
RAJPAL AUTOLINK: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Rajpal Autolink Private Limited
Flat No. 5, Prakash Apartment 5
Palsikar Colony
Indore MP 452007
Insolvency Commencement Date: June 18, 2020
Court: National Company Law Tribunal, Indore Bench
Estimated date of closure of
insolvency resolution process: December 14, 2020
(180 days from commencement)
Insolvency professional: Mr. Navin Khandelwal
Interim Resolution
Professional: Mr. Navin Khandelwal
206, Navneet Plaza
5/2 Old Palasia
Indore 452018
E-mail: navink25@yahoo.com
cirprajpal@gmail.com
Last date for
submission of claims: July 9, 2020
RELISHAH EXPORT: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Relishah Export's
(Relishah) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR140 mil. (reduced from INR240 mil.) Fund-based post
shipment demand loan/usance foreign bill purchased/foreign
bill purchased affirmed with IND A4+ rating;
-- INR180 mil. (reduced from INR260 mil.) Fund-based packing
credit/packing credit in foreign currency* affirmed with IND
A4+ rating; and
-- INR2 mil. Non-fund-based inland bank guarantees affirmed with
IND A4+ rating.
* Includes standby limit of INR50 million
KEY RATING DRIVERS
The affirmation reflects Relishah's continued medium scale of
operation, as indicated by revenue of INR2,468 million in FY20
(FY19: INR2,949 million; FY18: INR2,379 million). The revenue
declined owing to a fall in orders and the shut-down of operations
due to the COVID-19-led lockdown. Ind-Ra expects the revenue of the
company to decrease further in FY21 because of the same factors.
Relishah achieved revenue of INR280 million until June 15, 2020. As
per the management, the company had orders in hand of INR250
million as of June 2020, which are likely to be executed within a
month. The figures for FY20 are provisional in nature.
The ratings reflect Relishah's average EBITDA margins due to the
trading nature of the business and high competition in the
industry. The EBITDA margins remained in the range of 2.1%-4.4%
during FY16-FY20. The firm's EBITDA margin increased slightly to
3.3% in FY20 (FY19:3.0%;FY18: 3.2%), as it moved its focus from the
sluggish Chinese market to other regions like Peru and European
countries, which are characterised by comparatively higher demand
and better margins. Relishah's return on capital employed stood at
15% in FY20 (FY19: 18%).
The ratings are also constrained by the partnership structure of
the business.
Liquidity Indicator-Adequate: The business is working
capital-intensive. The average maximum utilisation of the
fund-based limits was 16.4% during the 12 months ended May 2020.The
cash and cash equivalents stood at INR8.0 million during FY20
(FY19: INR1 million). The cash flow from operations turned positive
at INR134 million (FY19: negative INR133 million) due favourable
changes in the working capital cycle and an increase in the fund
flow from operations to INR50 million (INR25 million). The firm had
unutilised working capital lines of INR316.23 million as of May
2020; this will be sufficient to meet the incremental working
capital requirement in the near term. Relishah does not have any
term debt. The company's net working capital cycle reduced slightly
to 53 days in FY20 (FY19: 55 days) on account of a fall in the
inventory period to 2 days in FY20 (FY19: 6 days). Relishah has
not availed the Reserve Bank of India-prescribed moratorium.
The ratings are supported by Relishah's comfortable credit metrics.
The net leverage (total adjusted net debt/operating EBITDAR)
improved to 1.8x in FY20 (FY19: 2.7x) due to lower utilisation of
the working capital facility. However, the interest coverage
(EBITDA/gross interest expense) declined slightly to 2.5x in FY20
(FY19: 2.6x) due to the fall in the operating EBITDA to INR80.3
million (FY19: INR89.1 million)
Moreover, the company has a geographically diversified customer
base and benefits from its strong relationships with customers.
The ratings also continue to derive comfort from the founders'
three-decade-long experience in the cotton trading industry.
RATING SENSITIVITIES
Negative: Reduction in the scale of operations or profitability,
leading to the interest coverage reducing below 1.7x, on a
sustained basis, could be negative for the ratings.
Positive: Increase in the scale of operations and profitability,
while maintaining the overall credit metrics, along with an
adequate liquidity position and/or conversion in the business
structure to corporate from partnership, could lead to a positive
rating action.
COMPANY PROFILE
Established in 1987, Relishah is a registered partnership firm
engaged in the export of textile goods such as cotton yarn.
S D RICE: ICRA Keeps B INR16.50cr Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR16.50 crore bank facilities of S D
Rice Mills continue to remain under Issuer Not Cooperating
category. The long-term rating is denoted as [ICRA]B ISSUER NOT
COOPERATING with a Stable outlook.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Fund 16.50 [ICRA]B (Stable); ISSUER NOT
based/CC COOPERATING; Rating Continues
to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.
S D Rice Mill is a partnership firm established in 1983 promoted by
Mr. Darshan Wadhwa and his family members. The firm is primarily
engaged in milling of basmati rice. The firm is also engaged in
converting semi processed rice into parboiled Basmati rice. SRM's
milling unit is based out of Jalalabad, Distt. Ferozpur, Punjab
which is in close proximity to the local grain market.
SAYAJI INDUSTRIES: ICRA Withdraws MB+ Rating on INR20cr Loan
------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Sayaji
Industries Limited (SIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fixed Deposits 20.00 MB+ (Stable) ISSUER NOT
COOPERATING; Withdrawn
Rationale
The ratings are withdrawn in accordance with ICRA's policy on
withdrawal and suspension and completion of the period of notice of
withdrawal, as the company had requested for the withdrawal of the
rating. ICRA is withdrawing the rating and that it does not have
information to suggest that the credit risk has changed since the
time the rating was last reviewed. ICRA has withdrawn the Stable
outlook on the long-term rating.
Key rating drivers and their description
Key rating drivers have not been captured as the rating is being
withdrawn.
Liquidity position
Not captured as the rating is being withdrawn.
Rating sensitivities
Not captured as the rating is being withdrawn.
Incorporated in 1941, SIL is promoted by the Mehta family and is
involved in manufacturing starch, its downstream derivatives viz.
liquid glucose, dextrose monohydrate, anhydrous dextrose, sorbitol
and by-products like gluten, maize oil, etc. These products are
used in textile, processed foods, pharmaceuticals, chemical, paper
and other industries. The manufacturing facility is located at
Kathwada, Ahmedabad and is ISO 9001:2008 certified. Equity shares
of SIL got listed on BSE Ltd. in October 2017.
SIL had three subsidiaries Sayaji Ingritech LLP (holding 76%),
Sayaji Seeds LLP (holding 90%) and Sayaji Corn Products Limited
(holding 100%) as on March 31, 2018. SIL also had a joint venture,
Sayaji Sethness Limited, with Sethness Products Company, USA, as a
forward integration. The entity manufactures liquid caramel colour
by using liquid glucose.
In July 2018, SIL and its promoters divested stake for USD 3.2
million. Further, SIL has associated concerns namely Sayaji
Samruddhi LLP and N.B. Commercial Enterprises Limited, which are
involved in real estate and plastic barrels manufacturing,
respectively.
SIMHAPURI ENERGY: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Simhapuri Energy Limited
Registered address and Corporate office:
1-98/5/110, Plot no. 110
2nd Floor Kavuri Hills
Guttala Begumpet Village
Serilingampally Mandal
Hyderabad, Rangareddi
Telangana 500033
Insolvency Commencement Date: June 26, 2020
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: December 23, 2020
Insolvency professional: Anish Niranjan Nanavaty
Interim Resolution
Professional: Anish Niranjan Nanavaty
2A/208, Raheja Classique
New Link Road, Andheri (W)
Mumbai 400053
E-mail: anish.nanavaty.irp@gmail.com
- and -
Deloitte Touche Tohmatsu India LLP
Indiabulls Finance Centre
Tower 3, 27th Floor
Senapati Bapat Marg
Elphinstone Road (West)
Mumbai 400013
E-mail: insim@deloitte.com
Last date for
submission of claims: July 10, 2020
SKL EXPORTS: ICRA Cuts Rating on INR7.0cr LT Loan to B+
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of S.K.L.
Exports, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+(Stable); ISSUER NOT
Fund Based COOPERATING; Rating Downgraded
Facilities- from [ICRA]BB(Stable) and
Cash Credit Continues to remain under
'Issuer Not Cooperating'
Category
Short Term- 5.00 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; Rating Continues
Facilities to remain under 'Issuer Not
Cooperating' category
Rationale
The rating is downgraded because of lack of adequate information
regarding S.K.L. Exports performance and hence the uncertainty
around its credit risk. ICRA assesses whether the information
available about the entity is commensurate with its rating and
reviews the same as per its "Policy in respect of non-cooperation
by the rated entity". The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with S.K.L. Exports, ICRA has been trying to seek information from
the entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
SKL Exports was established as a partnership firm in the year 2004
and is engaged in the manufacturing of hosiery garments. The firm's
manufacturing facility is located in Tirupur (Tamil Nadu). The firm
caters to both domestic and export markets with a major portion of
the products being exported to customers in US and European
countries. The firm has in-house processing facilities for
knitting, dyeing, cutting, stitching and finishing. Apart from that
the firm also manufactures corrugated boxes which are captively
consumed for packaging purposes.
UNIQUE GEMS: ICRA Lowers Rating on INR30cr LT Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Unique
Gems, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 30.00 [ICRA]B+(Stable) ISSUER NOT
Fund-based COOPERATING; Rating downgraded
from [ICRA]BB+(Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding Unique Gems performance and hence the uncertainty around
its credit risk. ICRA assesses whether the information available
about the entity is commensurate with its rating and reviews the
same as per its "Policy in respect of non-cooperation by the rated
entity". The lenders, investors and other market participants are
thus advised to exercise appropriate caution while using this
rating as the rating may not adequately reflect the credit risk
profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Unique Gems ICRA has been trying to seek information from the
entity so as to monitor its performance, but despite repeated
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.
Unique Gems was established as a partnership firm in the year 2009.
The entity is closely held by the Kevadia family. The firm has
three partners - Mr. Piyush Kevadia, Mr. Dilip Kevadia, and Mrs.
Shilpa Salia. Unique Gems is engaged in the manufacturing and
trading of CPDs. The manufacturing facility of the firm is located
at Surat, Gujarat where it employs more than 300 workers. The
entity manufactures diamonds of various sizes ranging from 18 cents
to 10 carats.
UP ASBESTOS: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed U.P. Asbestos
Limited's (UPAL) Long-Term Issuer Rating at 'IND BB-'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR400 mil. (increased from INR390 mil.) Fund-based limits
affirmed with IND BB-/Stable rating;
-- INR25.8 mil. Non-fund-based limits affirmed with IND A4+
rating;
-- INR50.7 mil. (reduced from INR194.90 mil.) Term loan due on
August 2033 affirmed with IND BB-/Stable rating;
-- INR180 mil. Term loan^ @ assigned with IND BB-/Stable rating;
and
-- INR140 mil. Proposed term loan* assigned with Provisional IND
BB-/Stable rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above facility
by UPAL to the satisfaction of Ind-Ra.
^ The final rating has been assigned following the receipt of
executed financing documents by Ind-Ra.
@ not yet issued
KEY RATING DRIVERS
The affirmation reflects UPAL's continued medium scale of
operations with revenue of INR1,523.37 million during FY19 (FY18:
INR1,528.34 million). The slight fall in the revenue was primarily
due to the closure of two of the company's manufacturing plants in
January and February 2019 for renovation and upgradation. According
to the provisional numbers for FY20, the revenue improved to
INR1,623.90 million due to the increased capacity utilisation of
the company's asbestos sheet plant and the introduction of new
profile sheet plant in FY20. Ind-Ra believes the company will see
improved contribution from this product in the near term.
The ratings also reflect UPAL's improving but average margins due
to the inherent competition in the industry and the presence of
substitute products, which exerts pressure on pricing. Also, the
demand for fibre cement sheets is vulnerable to the cyclicality in
the end-user industries (namely construction, real estate and rural
housing). UPAL's margins came in at 9.35% in FY19 (FY18: 9.14%) due
to an improvement in the realisation per metric ton; the return on
capital employed was 5.4% (5.9%). In FY20, the margins rose to
10.2% and the return on capital employed to 6.3%.
The credit metrics remain weak with gross interest coverage
(operating EBITDA/gross interest expenses) of 1.83x in FY19 (FY18:
2.04x) and net leverage (adjusted net debt/operating EBITDA) of
5.26x (4.99x). The credit metrics deteriorated in FY19 due to an
increase in the net debt level and interest expenses. In FY20, the
credit metrics remained at the same level. The company incurred
debt-led capex of INR35 million on process modernisation and the
installation of a pulp plant and cement silo unit for backward
integration. Ind-Ra expects the credit metrics to further
deteriorate in near term in the near term as the company has
additional debt-led capex plans in the pipeline.
Liquidity Indicator - Stretched: UPAL's average utilisation of
fund-based limit was 98.31% for the 12 months ended May 2020. The
cash flow from operations deteriorated significantly to negative
INR72.06 million in FY19 (FY18: INR112.49 million) due to increased
working capital requirement. UPAL's working capital cycle elongated
to 162 days in FY19 (FY18: 112 days, FY17: 137 days) due to
increased debtor and inventory days. UPAL has planned for a capex
of around INR140 million in FY21 for installing galvanised
corrugated steel sheet plant and further modernisation and process
improvement; this capex will be funded in a debt:equity ratio of
75:25. Cash and cash equivalents amounted to INR5.01 million in
FY20. UPAL had opted for the Reserve Bank of India-prescribed
moratorium for its term loan limits over March to May 2020.
The ratings are supported by UPAL's diversified customer base and
its promoter experience of more than three decades in the
manufacturing and trading of asbestos.
RATING SENSITIVITIES
Positive: An improvement in the liquidity position along with an
improvement in the credit metrics with the interest coverage above
2.0x will be positive for the ratings.
Negative: Further deterioration in the liquidity position or the
credit metrics will be negative for the ratings.
COMPANY PROFILE
UPAL was incorporated in 1973 in Lucknow, Uttar Pradesh. The
company is majorly into manufacturing of asbestos sheets and the
trading of steel sheet and electrical wires and paints. The
company's unit has a production capacity of 1,44,000 metric tonnes
per annum and accounts for up to 6% of market share in India. The
products manufactured by the company are sold under the name of
UPAL. In 2016, UPAL started the trading of steel sheet, electrical
wires and paints; this segment contributes around 5% to the
company's total revenue.
YEDESHWARI AGRO: ICRA Keeps B- Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has continued the long-term ratings for the bank facilities of
Yedeshwari Agro Products Limited to the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B-(stable)ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 35.70 [ICRA]B-(stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Unallocated 27.30 [ICRA]B-(stable); ISSUER NOT
COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.
Incorporated in 2007, Yedeshwari Agro Products Limited (YAPL) was
promoted by Mr. Bajarang Sonawane and is a closely held company
with majority of the shareholding with the Sonwane family. The
company is involved in manufacturing of sugar with total crushing
capacity of 3500 TCD (tonnes crushed 3 Sugar Year: October to
September per day). The plant is forward integrated with a 10 MW
cogeneration unit. The plant is located at Anandgaon, Tehsil Kaij,
District Beed, Maharashtra.
=========
J A P A N
=========
JAPAN: Factory Output Slumps as Economy Sinks Deeper in Recession
-----------------------------------------------------------------
Tetsushi Kajimoto and Daniel Leussink at Reuters report that
Japan's industrial output fell for a fourth straight month in May
to the lowest level since the global financial crisis and the
jobless rate hit a three-year high, underscoring the broad economic
pain caused by the coronavirus.
According to Reuters, the world's third-largest economy is bracing
for its worst postwar recession, hurt by coronavirus lockdown
measures at home and overseas that have upended supply chains, kept
businesses shut and depressed consumer spending.
Ministry of Economy, Trade and Industry (METI) data out on June 30
showed that factory output fell 8.4% month-on-month in May to 79.1,
a level not seen since March 2009 when the financial crisis sapped
global demand, Reuters discloses.
"The economy likely suffered a big contraction in April-June due to
weak domestic and external demand," Reuters quotes Taro Saito,
executive research fellow at NLI Research Institute, as saying.
"Domestic demand may look up from June, but exports will remain
very weak, putting a drag on overall economic recovery," he said,
adding that the worsening of the economy would flow on to the
labour market.
Reuters says the deterioration in economic conditions has triggered
an increase in the jobless rate and a fall in the number of
available jobs, while stoking fears of bankruptcies.
The seasonally adjusted jobless rate rose to 2.9% in May from 2.6%
in April, separate government data showed, the highest rate since
May 2017, Reuters discloses.
While the jobless rate remained below 3%, less than in many
advanced countries, economists say the actual figure is higher,
given the rise in furloughed staff and the impact of discouraged
workers who have stopped seeking jobs, Reuters states.
The coronavirus fallout has pushed 290 firms into bankruptcy since
the end of February, with many service-sector firms like
restaurants, hotels and inns and apparel suffering the most,
Reuters discloses citing data from private credit research firm
Teikoku Databank.
The decline in factory output followed a 9.8% drop in the prior
month, and was much bigger than the median market forecast of a
5.6% drop in a Reuters poll of economists, the data, as cited by
Reuters, showed.
On a positive note, manufacturers surveyed by METI expect output to
rise 5.7% in June and 9.2% in July.
The government, however, left its assessment of industrial
production unchanged, saying it was "lowering sharply", the
bleakest official view since late 2008, Reuters adds.
Output of cars, production machinery, steel and other broad
industries were hit hard by slumping demand at home and abroad due
to the pandemic. All industries surveyed posted a fall in output.
According to Reuters, global production at Japan's major
automakers, including Toyota Motor Corp and Nissan Motor Co,
slumped 62% in May from a year ago, following a 55% fall in April,
as car demand plunged globally amid lockdowns to stop the virus
from spreading.
Japan's economy shrank an annualised 2.2% in January-March,
slipping into recession for the first time in 4-1/2 years, and
analysts expect the health crisis to have driven a deeper slump in
the current quarter, adds Reuters.
SANDEN HOLDINGS: Files for Debt Restructuring Due to Falling Sales
------------------------------------------------------------------
Reuters reports that Sanden Holdings on June 30 said it had filed
for debt restructuring with its creditors as falling sales due to
the coronavirus pandemic had made it difficult for the company to
pursue its restructuring plans.
Reuters relates that in a filing to the Tokyo Stock Exchange, the
maker of vehicle air conditioning components and compressors said
it would enter a so-called alternative dispute resolution, which
allows financially stressed companies to reassess and restructure
debt.
"Due to the impact of the coronavirus, output has fallen at our
production bases, mainly in China, Europe and Asia or worse, plants
have been shut down temporarily," the company said in the
statement, Reuters relays.
"Discussions with our creditors will include possible measures to
rebuild our business, a timeline for the implementation of a
business revitalization plan, and other details."
In the past decade, Sanden, which produced bicycle lamps in the
aftermath of World War and now operates plants in North America,
Europe, and Asia including China, had been focusing on developing
electric compressors and heat pump systems to be used in electric
vehicles, Reuters says.
But the company which has supplied automakers including General
Motors Co, Ford Motor Co and Honda Motor Co, has struggled over the
past five years, stung by global trade disputes which has led a
downsizing of its operations, according to Reuters.
It has posted annual net losses three times over the past four
years including during the year just ended, while its cash position
has deteriorated and its net assets have plummeted, the report
notes.
Reuters relates that the company said that it was not facing
liquidity issues currently, and that its creditors were willing to
offer bridge loans. The turnaround proceedings would not affect its
business with its suppliers and its clients, it added.
Sanden Holdings Corporation, together with its subsidiaries,
manufactures and sells automotive and commercial store systems in
Asia, Europe, and North America. The company offers automotive
air-conditioning systems and compressors, including heat pump
systems, electric coolant heaters, electric and PX compressors,
HVAC modules, and intercoolers. It also provides commercial store
systems comprising automatic vending and coffee machines,
commercial freezers, and open and flat design refrigerated
showcases; and electronic money terminal machines, as well as
temperature humidity monitoring services. The company was formerly
known as Sanden Corporation and changed its name to Sanden Holdings
Corporation in April 2015. Sanden Holdings Corporation was founded
in 1943 and is headquartered in Isesaki, Japan.
=================
S I N G A P O R E
=================
KRISENERGY: DBS Revolving Credit Facility Maturity Moved to Dec. 31
-------------------------------------------------------------------
Fiona Lam at The Business Times reports that KrisEnergy Ltd on June
30 said DBS Bank has agreed to extend the maturity of its revolving
credit facility (RCF) again, this time by six months to Dec. 31,
2020.
DBS is the sole arranger of the facility, while Keppel Corp holds
an indirect interest and the key economic risk in the facility
through a bilateral contract with the bank, the report says.
BT relates that in conjunction with the RCF's new maturity date,
Keppel on June 30 also entered into an agreement with DBS to extend
the term of their bilateral contract for the same period.
This is to "facilitate a consensual restructuring and to support
KrisEnergy's management whilst they discuss and obtain feedback
from stakeholders on its debt restructuring plan", Keppel said in a
separate filing, BT relays.
According to BT, the conglomerate reiterated that it reserves the
right to evaluate the upstream oil and gas company's debt
restructuring plan, and to approve or reject the plan as Keppel
deems fit in its best interests.
About US$177.3 million in outstanding principal is owed under the
DBS RCF as at June 30, according to Keppel's announcement, BT
relys. KrisEnergy is one of the guarantors, and its wholly-owned
subsidiary KrisEnergy (Asia) (KE Asia) is the borrower.
BT says the RCF, and consequently Keppel's economic exposure in
respect of the same, benefits from a comprehensive first-ranking
security package over the assets of the KrisEnergy group.
KrisEnergy's bourse filing on March 29, 2018 stated that the RCF is
secured by producing assets in the Gulf of Thailand and in
Bangladesh, as well as development assets in the Gulf of Thailand
and in Indonesia, recalls BT.
BT relates that Keppel on June 30 said it will not be required to
make any payment to DBS under the bilateral contract, based on
Keppel's financial adviser's analysis of the KrisEnergy group's
assets and operations, as well as a range of outcomes for the
proposed restructuring.
The bilateral contract was required for DBS to provide the RCF to
KE Asia. Keppel also benefits from interest payments made to the
bank under the facility.
The lender previously extended the RCF maturity by two years to
June 30, 2020, according to KrisEnergy's filing in March 2018.
As at Dec. 31, 2019, KrisEnergy had some US$503 million in
borrowings and debt securities, including zero-coupon notes, the
DBS RCF, notes maturing in 2022 and 2023, as well as two unsecured
term loans from HSBC and Standard Chartered Bank, BT discloses.
About KrisEnergy Limited
KrisEnergy Limited -- https://krisenergy.com/ -- is a
Singapore-based investment holding company. The Company is an
independent upstream oil and gas company with a portfolio of
exploration, appraisal, development and production assets focused
on the geological basins in Asia. The Company operates through
exploration and production of oil and gas in Asia segment. The
Company holds interests in approximately 20 licenses in Bangladesh,
Cambodia, Indonesia, Thailand and Vietnam covering a gross acreage
of approximately 60,750 square kilometers.
In August 2019, the firm sought court protection from creditors'
legal action while it restructured its debts, according to The
Business Times. Keppel Corporation, a creditor and shareholder of
KrisEnergy, then publicly came out to support the application and
KrisEnergy's management in formulating a restructuring plan.
Total debts stood at around US$558.8 million as at June 30, 2019,
according to KrisEnergy's presentation slides for its Sept. 10
informal investor meeting for noteholders and shareholders.
*********
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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