/raid1/www/Hosts/bankrupt/TCRAP_Public/201104.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, November 4, 2020, Vol. 23, No. 221
Headlines
A U S T R A L I A
EASTSIDE FORMWORK: Second Creditors' Meeting Set for Nov. 13
LIBERTY FUNDING 2020-3: Moody's Assigns B2 Rating to Cl. F Notes
ONE TWENTY: First Creditors' Meeting Set for Nov. 11
C H I N A
FUJIAN YANGO: S&P Assigns 'B-' Rating to USD Sr. Unsec. Notes
MODERN LAND: Moody's Affirms B2 CFR, Outlook Stable
QINGHAI STATE-OWNED ASSETS: Reneges on Bond Buyback Promise
I N D I A
AISHWARYAGIRI CONSTRUCTIONS: ICRA Withdraws INR45cr Loans' D Rating
B.K. THRESHERS: ICRA Keeps D Debt Ratings in Not Cooperating
BALAJI INDUSTRIES: ICRA Keeps B Debt Rating in Not Cooperating
BANSAL FOODS: ICRA Keeps B+ Debt Ratings in Not Cooperating
BINDU FOOD: ICRA Keeps C+ Debt Ratings in Not Cooperating
CHADHA SUGARS: ICRA Keeps D Debt Ratings in Not Cooperating
FLUID AND POWER: Ind-Ra Gives B+ LT Issuer Rating, Outlook Stable
GS MALLS: ICRA Lowers Rating on INR70cr LT Loan to B+
H.M. INDUSTRIAL: ICRA Keeps D Debt Ratings in Not Cooperating
HANS RICE: ICRA Keeps B+ Debt Ratings in Not Cooperating
HANUMAN FOODS: ICRA Lowers Rating on INR12cr LT Loan to D
HIMANGI FOODS: ICRA Lowers Rating on INR12cr LT Loan to B+
IREO HOSPITALITY: ICRA Cuts Rating on INR923.30cr Loans to D
JAIN AGENCIES: ICRA Keeps B+ Debt Rating in Not Cooperating
JALANDHAR AMRITSAR: Ind-Ra Moves 'D' Loan Rating to NonCooperating
JAYALAXMI ENTERPRISES: ICRA Keeps B+ Rating in Not Cooperating
KALPANA WINES: ICRA Lowers Rating on INR5cr Loans to B+
KAMAKHYA TRADERS: ICRA Keeps B Debt Ratings in Not Cooperating
KISSAN POULTRY: ICRA Keeps D Debt Ratings in Not Cooperating
KLR INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating
MAGPPIE EXPORTS: ICRA Keeps D Debt Rating in Not Cooperating
MAHASEMAM TRUST: Ind-Ra Affirms 'BB+' Loan Rating, Outlook Stable
MBS SERVICES: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
MCLEOD RUSSEL: ICRA Keeps D Debt Ratings in Not Cooperating
MINI HOTELS: ICRA Keeps D Debt Rating in Not Cooperating
MONDAL ICE: ICRA Keeps B+ Debt Ratings in Not Cooperating
MONTFORT EDUCATIONAL: ICRA Cuts Rating on INR11cr Loan to B+
ODYSSEUS LOGOS: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
PASUPATI SPINNING: ICRA Keeps D Debt Rating in Not Cooperating
PRITHVI DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating
RAJENDRA AGRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
RANCHI EXPRESSWAY: ICRA Keeps D Debt Rating in Not Cooperating
RNB INTERNATIONAL: ICRA Keeps B Debt Rating in Not Cooperating
SAI RAM: Ind-Ra Moves B+ LongTerm Issuer Rating to Non-Cooperating
TRUEVALUE ENGINEERING: ICRA Cuts Rating on INR12.50cr Loan to D
VAMSI CHEMICALS: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
J A P A N
RENOWN INC: To Enter Liquidation as Pandemic Hits Sales
M A L A Y S I A
FSBM HOLDINGS: Reprimanded for Delay in Issuing Annual Report
PARKSON HOLDINGS: Upbeat on China's Retail Industry
N E W Z E A L A N D
FUND MANAGERS: FMA Appoints KPMG as Temporary Manager
P H I L I P P I N E S
DE LA O RURAL: Creditors' Claim Filing Deadline Set for Dec. 11
RURAL BANK OF MAIGO: Depositors' Claims Filing Deadline on Nov. 13
S I N G A P O R E
K.S. MARINE: Goes Into Creditors' Voluntary Liquidation
ROBINSONS SINGAPORE: S-Reits' Exposure to DBS Group in Spotlight
XIHE HOLDINGS: Xihe Capital and Subsidiaries Go Into Liquidation
- - - - -
=================
A U S T R A L I A
=================
EASTSIDE FORMWORK: Second Creditors' Meeting Set for Nov. 13
------------------------------------------------------------
A second meeting of creditors in the proceedings of Eastside
Formwork Pty Ltd has been set for Nov. 13, 2020, at 11:00 a.m. The
meeting will be held via teleconference from Level 5, 115 Pitt
Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 12, 2020, at 4:00 p.m.
Shumit Banerjee of Westburn Advisory was appointed as administrator
of Eastside Formwork on Oct. 12, 2020.
LIBERTY FUNDING 2020-3: Moody's Assigns B2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by Liberty Funding Pty Limited in
respect of Liberty Series 2020-3.
Issuer: Liberty Funding Pty Limited in respect of Liberty Series
2020-3
AUD975.0 million Class A1 Notes, Assigned Aaa (sf)
AUD195.0 million Class A2 Notes, Assigned Aaa (sf)
AUD48.1 million Class B Notes, Assigned Aa1 (sf)
AUD23.4 million Class C Notes, Assigned A1 (sf)
AUD15.6 million Class D Notes, Assigned Baa2 (sf)
AUD16.9 million Class E Notes, Assigned Ba2 (sf)
AUD3.9 million Class F Notes, Assigned B2 (sf)
The AUD22.1 million Class G Notes are not rated by Moody's.
The transaction is a securitisation of a portfolio of Australian
residential mortgages. All mortgages were originated and are
serviced by Liberty Financial Pty Limited (Liberty, unrated).
Liberty is an Australian non-bank lender. It started originating
non-conforming residential mortgages in 1997. It subsequently
expanded into prime residential mortgage origination, as well as,
among others, auto loans, small commercial mortgage loans and
personal loans. Residential mortgages remain Liberty's predominant
business. As of September 2020, it had a portfolio of Australian
mortgage assets over AUD8.31 billion, of which 70% was securitised
in public transactions.
RATINGS RATIONALE
The definitive ratings take into account, among other factors,
evaluation of the underlying receivables, the evaluation of the
capital structure and credit enhancement provided to the notes, the
availability of excess spread over the life of the transaction, the
liquidity reserve in the amount of 2.00% of the notes balance, the
legal structure, and the credit strength and experience of Liberty
as Servicer.
Moody's MILAN credit enhancement (MILAN CE) for the collateral pool
is 8.0%, while the expected loss is 1.60%. MILAN CE represents the
loss Moody's expects the portfolio to suffer in a severe
recessionary scenario, and does not take into account structural
features of the transaction. or lenders mortgage insurance (LMI)
benefit. The expected loss represents a stressed, through-the-cycle
loss relative to Australian historical data.
After lenders' mortgage insurance (LMI) benefit, MILAN CE is 7.9%.
The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Its analysis has considered the effect on the performance of
consumer assets from the current weak Australian economic activity
and a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around its forecasts is unusually high.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
The key transactional features are as follows:
- Class A1 Notes and Class A2 Notes benefit from 25.0% and 10.0%
note subordination respectively.
- The notes will initially be repaid sequentially. Upon
satisfaction of all stepdown conditions which include, among
others, the payment date falling on or after the payment date in
October 2022 and absence of charge offs, all Notes, excluding Class
G Notes, will receive a pro-rata share of principal payments. The
principal pay-down switches back to sequential pay, once the
aggregate loan amount is at 20% or less of the aggregate loan
amount at closing, or on or following the payment date in October
2024.
- The guarantee fee reserve account, which is unfunded at closing
and will build up to a limit of 0.30% of the issued notional from
the bottom of the interest waterfall prior to interest paid to the
Class G Notes noteholders. The reserve account will firstly be
available to meet losses on the loans and charge-offs against the
notes. Secondly, it can be used to cover any required payment
shortfalls that remain after drawing on principal and the liquidity
facility. Any reserve account balance used can be reimbursed to its
limit from future excess income.
The key features of the mortgage loan pool are as follows:
- The portfolio has a scheduled loan-to-value (LTV) ratio of
69.3%, with a relatively high proportion of loans with a scheduled
LTV ratio above 80.0% (20.2%) and above 90% (9.8%).
- Around 25.4% of the loans in the portfolio were extended to
self-employed borrowers.
- 8.8% and 0.1% of the loans in the portfolio were extended on an
alternative documentation and low documentation basis
respectively.
- The portfolio contains 5.3% exposure with respect to borrowers
with prior credit impairment (default, judgment or bankruptcy).
Moody's assesses these borrowers as having a significantly higher
default probability.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in May
2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors or higher recoveries on defaulted
loans. The Australian job market and the housing market are primary
drivers of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons for
performance worse than Moody's expects include poor servicing,
error on the part of transaction parties, a deterioration in credit
quality of transaction counterparties, fraud and lack of
transactional governance.
ONE TWENTY: First Creditors' Meeting Set for Nov. 11
----------------------------------------------------
A first meeting of the creditors in the proceedings of One Twenty
Clothing Company Pty Limited will be held on Nov. 11, 2020, at
12:00 p.m. via teleconference only.
Brent Kijurina and Richard Albarran of Hall Chadwick were appointed
as administrators of One Twenty on Oct. 30, 2020.
=========
C H I N A
=========
FUJIAN YANGO: S&P Assigns 'B-' Rating to USD Sr. Unsec. Notes
-------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issue rating to the
proposed U.S. dollar-denominated senior unsecured notes to be
issued by Yango (Cayman) Investment Ltd., a subsidiary of Fujian
Yango Group Co. Ltd. (B/Stable/--). Fujian Yango irrevocably and
unconditionally guarantees the notes.
The China-based company intends to use the net proceeds mainly to
refinance its offshore bank debt maturities due in the next six
months (about Chinese renminbi [RMB] 830 million), and to a lesser
extent, to support the expansion of its education services
business. The issue rating is subject to its review of the final
issuance documentation.
S&P said, "We rate the proposed senior unsecured notes one notch
below the issuer credit rating on Fujian Yango to reflect
structural subordination risk. As of June 30, 2020, Fujian Yango's
capital structure consisted of about RMB81.5 billion in secured
debt and RMB61.9 billion in unsecured debt (external guarantee
included). As such, the secured debt ratio of about 57% is above
our notching threshold of 50%.
"We believe the proposed notes will not materially affect the
company's credit profile given the majority of the proceeds will be
used for refinancing. We expect Fujian Yango to be prudent in
acquisitions in nonproperty segments and moderately reduce
leverage. While we anticipate Fujian Yango's stand-alone liquidity
to remain tight over the next 12 months, we believe the company's
debt serviceability and liquidity will remain manageable through
asset disposals and increasing dividends from key investments. This
is reflected in our stable outlook on the rating on Fujian Yango."
MODERN LAND: Moody's Affirms B2 CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
and the B3 senior unsecured rating of Modern Land (China) Co.,
Limited.
The outlook on the rating is stable.
"The ratings affirmation reflects our expectation that the company
will continue to moderately grow its contracted sales, and maintain
its good cash collection and adequate liquidity over the next 12-18
months," says Celine Yang, a Moody's Assistant Vice President and
Analyst.
RATINGS RATIONALE
Modern Land's B2 CFR reflects the company's (1) niche in marketing
and selling comfortable and eco-friendly homes; (2) demonstrated
execution ability; and (3) adequate liquidity.
On the other hand, the company's rating is constrained by its
improving but still low gross profit margins and modest financial
metrics, largely stemming from its debt-funded growth and high
finance costs.
Moody's expects Modern Land will achieve stable annual sales growth
of 5%-10% to RMB40 billion-RMB45 billion over the coming 12-18
months, up from RMB36.2 billion in 2019. This growth will be
underpinned by its sizable saleable resources of RMB179.7 billion
and track record of sales execution. Modern Land grew its
contracted sales by around 7% year-on-year to RMB26.9 billion for
the first nine months of 2020 despite the coronavirus disruptions,
slightly outperforming the national sales growth of 6.2% over the
same period.
Moody's expects Modern Land's debt leverage, as measured by
revenue/adjusted debt, will slightly worsen to about 60%-70% in the
next 12-18 months from 75% for the 12 months ended June 2020, as
Modern Land's debt growth outpaces revenue growth amid its
debt-funded business expansion and sluggish contracted sales in
2019. Similarly, the company's EBIT/interest coverage will edge
down to 1.9x-2.0x from 2.2x over the same period, because EBIT
growth will be offset by increased interest expenses driven by
higher debt. Such credit metrics remain appropriate for its
ratings.
In terms of environmental, social and governance (ESG) factors,
Moody's has taken into consideration the concentrated ownership by
Modern Land's founder and chairperson, Mr. Zhang Lei, who held an
approximate 65.8% stake in the company as of the end of June 2020.
Such concentrated ownership is counterbalanced by the company's
established governance structures and standards as required by the
relevant code for companies listed on the Hong Kong Stock Exchange.
Furthermore, the company has three special committees in place, an
audit committee, remuneration committee and nomination committee,
two of which are chaired and dominated by the company's independent
non-executive directors.
Moody's regards the impact of the deteriorating global economic
outlook amid the rapid and widening spread of the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.
Modern Land's liquidity is adequate. Moody's expects the company's
cash holdings, along with its cash flow from operating activities,
will be sufficient to cover its committed land premium and maturing
debt over the next 12 months. The company's cash holdings of
RMB11.7 billion (including restricted cash) as of June 30, 2020
covered 1.5x of its total short-term debt of RMB7.8 billion as of
the same date.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that Modern Land
will achieve stable sales growth while maintaining modest credit
metrics and adequate liquidity in next 12-18 months.
Moody's could upgrade Modern Land's ratings if the company (1)
grows its scale and improves its profit margins; (2) maintains a
reasonable cash balance, with cash/short-term debt above 1.5x; (3)
maintains strong financial discipline in its land acquisitions,
with EBIT/interest coverage above 2.5x-3.0x and revenue/adjusted
debt above 70%-75%, both on a sustained basis; and (4) reduces its
exposure to non-standard borrowings.
Moody's could downgrade Modern Land's ratings if (1) the company's
liquidity and ability to generate operating cash flow fall below
Moody's expectations because of declining contracted sales and
aggressive land acquisitions; (2) the company's revenue recognition
is slower than expected, or its profit margins decline further,
leading to further weakness in its interest coverage and financial
flexibility; or (3) the company engages in material debt-funded
acquisitions.
Metrics indicative of a potential downgrade include Modern Land's
cash balance, both restricted and unrestricted, falling below 100%
of short-term debt or the company's EBIT/interest coverage falling
below 1.5x on a sustained basis.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Modern Land (China) Co., Limited was founded in 2000 in Beijing by
real estate developer Mr. Zhang Lei, who is the company's current
chairman. The company specializes in developing green housing
units, and is one of the few early leaders in China's green and
eco-friendly lifestyle market.
Modern Land was listed on the Hong Kong Stock Exchange in July
2013. As of June 2020, the company had a gross land bank of around
12.4 million square meters in terms of gross floor area.
QINGHAI STATE-OWNED ASSETS: Reneges on Bond Buyback Promise
-----------------------------------------------------------
Peng Qinqin and Guo Yingzhe at Caixin Global report that a heavily
indebted state-owned enterprise (SOE) has reneged on its pledge to
buy back a CNY1.5 billion ($224.3 million) bond, a decision that's
fueled concerns about its financial position and angered investors
who insist the northwestern China-based company must honor its
commitment.
Caixin relates that Qinghai State-owned Assets Investment and
Management Co. Ltd., which is owned by the Qinghai provincial
state-owned assets commission, announced on Oct. 29 that it would
not exercise an option to repay the perpetual bond issued in
November 2015, reversing a promise made in September. The company
cited "the fallout from the Covid-19 pandemic and the impact of the
complicated economic climate in and outside the province" for its
change of heart.
According to Caixin, the announcement from Qinghai province's
largest SOE underscores the growing financial stress on companies
who took on too much debt and are now struggling to repay it as
economic growth slows. Under the terms of the bond issuance, which
took place in November 2015, Qinghai Investment will have to pay a
much higher interest rate than the 4.58% the debt security
currently offers -- the new coupon will be officially announced on
Thursday, but based on the formula in the bond prospectus, the
company will likely have to fork out at least 6%, the report says.
Qinghai State-owned Assets Investment Management Co., Ltd. provides
investment management services. The Company provides finance
investment, industry investment, state owned asset management,
investment consulting, and other services. Qinghai State-owned
Assets Investment Management also provides coals, chemicals, steel
materials, and other products.
=========
I N D I A
=========
AISHWARYAGIRI CONSTRUCTIONS: ICRA Withdraws INR45cr Loans' D Rating
-------------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Aishwaryagiri Constructions Pvt Ltd, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Withdrawn
Short Term- 15.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Withdrawn
Rationale
The Long-term ratings & Short-term ratings assigned to
Aishwaryagiri Constructions Pvt Ltd have 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.
Key rating drivers and their description
Key rating drivers have not been captured as the rating is being
withdrawn.
The company was incorporated in May 2011 by Mr. Jayaramaiah and Mr
Shivakumar for executing civil construction works such as road
construction, building construction, slum development activities
and other infrastructure development activities. Mr. Jayaramaiah is
in the construction business since 2000. Being proprietor of Giri
Constructions, he had taken up projects such as road construction
for Bruhat Bengaluru Mahanagara Palike, building construction for
Karnataka Police Dept and slum development projects for Karnataka
Slum Development Board. The company is presently executing slum
development projects for Karnataka Slum Development Board in
Karnataka.
B.K. THRESHERS: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR240.00-crore bank facilities of
B.K. Threshers Pvt. Ltd continue 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-Fund 120.00 [ICRA]D ISSUER NOT COOPERATING;
Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term-Fund 110.00 [ICRA]D ISSUER NOT COOPERATING;
Based TL Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term-Non 4.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain in
the 'Issuer Not Cooperating'
category
Short Term-Non 1.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term/Short 5.00 [ICRA]D/[ICRA]D ISSUER NOT
Term-Unallocated COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
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. The
rating action has been taken in accordance with ICRA's policy in
respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 2009, BKTPL is promoted by Mr. Bellam Kotaiah and
is involved in threshing and re-drying of tobacco in addition to
carrying tobacco exports. The Company setup a 12 TPH (tons per
hour) threshing plant at Kalikivai, near Tangutur, Andhra Pradesh
and the plant commenced operations from April 2012. The company
purchases various types of tobacco (Flue Cured Virginia (FCV) and
non-Virginia tobacco) from Andhra Pradesh and Karnataka tobacco
auction platforms (conducted by Government of India), processes and
sells it to domestic/overseas clients.
BALAJI INDUSTRIES: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR15.00 crore bank facilities of
Shri Balaji Industries continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B (Stable)
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund 15.00 [ICRA]B (Stable) ISSUER NOT
based/Cash COOPERATING; Rating continues
Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 1980, Shri Balaji Industries is a proprietorship
concern of Mr. Bal Kishan Nyati, engaged in milling, processing and
sorting of basmati rice. The firm primarily caters to customers
domestically with marginal exports to countries such as Dubai and
UAE through merchant exporters. The firm has a dealer network of 40
to 50 dealers in Rajasthan, Gujarat and Maharashtra and sells its
produce under the brand name 'Tansen'.
BANSAL FOODS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR9.00 crore bank facilities of
Bansal Foods (India) continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B+
(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 4.50 [ICRA]B+ (Stable) ISSUER NOT
Fund based/ COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long-Term 4.50 [ICRA]B+ (Stable) ISSUER NOT
Fund based/ COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
BNF was set up in December, 2013 as a proprietorship firm by Mr.
Jodha Ram Bansal in Samana (Punjab). The firm is engaged in the
milling of paddy into rice (basmati), with bran and husk as the
byproducts. The firm's plant, which has a capacity of 4 metric
tonnes per hour, commenced commercial operations from September
29,2014 and caters entirely to the export markets through third
parties. Mr Bansal is assisted by his two sons in this business.
BINDU FOOD: ICRA Keeps C+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR8.00 crore bank facilities of
Bindu Food Processors Private Limited continue to remain in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]C+ /A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 6.00 [ICRA]C+ ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund based– 1.35 [ICRA]C+ ISSUER NOT
COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Long Term/ 0.65 [ICRA]C+/A4 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/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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Bindu Food Processors Private Limited (BFPPL) had set up its cold
storage unit in West Medinipur, West Bengal in 1997 to carry out
the business of storage and preservation of potatoes. BFPPL has a
storage capacity of 21,326 metric tones (MT). The cold storage unit
of the company is operating under the name Purnima Cold Storage.
CHADHA SUGARS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the rating for the INR324.59-crore bank facility Chadha
Sugars & Industries Limited continues to remain under 'Issuer Not
Cooperating' category. The Long term and short term [ICRA]D/[ICRA]D
is denoted as "[ICRA] D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 109.80 [ICRA]D: ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
Term Loan 168.33 [ICRA]D: ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long-term 40.46 [ICRA]D: ISSUER NOT COOPERATING;
Unallocated Rating continues to remain in
the 'Issuer Not Cooperating'
category
Short-term 6.00 [ICRA]D: ISSUER NOT COOPERATING;
Non Fund Based 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.
CSIL was incorporated in 2004. The company is a part of the Late
Mr. Hardeep Chadha Group which has business interests in diverse
areas such as real estate, sugar, liquor, paper etc. CSIL has set
up a 4500 TCD sugar plant (expanded to 5000 TCD), 26 MW
co-generation unit, 30 KLPD grain-based distillery and 30 KLPD
molasses based distillery. The plant is located at village Teri
Afghana in Gurdaspur district of Punjab.
FLUID AND POWER: Ind-Ra Gives B+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned Fluid and Power
Automations LLP (FPAL) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR9.63 mil. Term loan due on March 2022 assigned with IND B+
/Stable rating;
-- INR60 mil. Fund-based facilities assigned with IND B+/Stable
/IND A4 rating; and
-- INR22.5 mil. Non-fund-based facilities assigned with IND A4
rating.
KEY RATING DRIVERS
The ratings reflect FPAL's small scale of operations as indicated
by the revenue of INR171 million in FY20 (FY19: INR284 million).
The decline in revenue in FY20 was majorly due to the unbilled
inventory resulting from the COVID-19-led lockdown. However, the
management expects the revenue to increase in FY21 owing to FPAL's
healthy order book of INR597 million (3.5x of FY20 revenue),
despite the stoppage of its operations for around 45 days over
March-May 2020 due to the lockdown. FY20 numbers are provisional in
nature.
Liquidity Indicator - Poor: FPAL fully utilized its fund-based
facilities during the 12 months ended in September 2020. The
company had availed the Reserve Bank of India-prescribed moratorium
for the interest and principal payments of its term loans over
March-August 2020. At FYE20, the firm had cash balance of INR5.37
million (FYE19: INR0.1 million) and restricted cash balance of
INR6.7 million (INR0.1 million). The firm has scheduled repayments
of INR5 million and INR4 million during FY21 and FY22,
respectively. Its net cash conversion cycle was stretched at 351
days in FY20 (FY19: 167 days) due to an increase in the inventory
days to 194 from 88.
The ratings also factor in the firm's modest credit metrics as
indicated by the interest coverage (operating EBITDA/gross interest
expenses) of 2.0x in FY20 (FY19: 5.2x) and the net leverage
(adjusted net debt/operating EBITDA) of 2.5x (0.7x). The
deterioration in the credit metrics was mainly attributed to a
decrease in the absolute EBITDA to INR32 million in FY20 (FY19:
INR65 million).
The ratings reflect in FPAL's average EBITDA margin of 18.7% in
FY20 (FY19: 22.7%) with a return on capital employed of 16% (68%)
due to the high competition in the electrical contracting industry.
The decline in the margin in FY20 was driven by the execution of
low-margin orders owing to the diversification of the firm's
geographical concentration from Goa to other states.
However, the ratings are supported by FPAL's promoter's a
decade-long experience in the electrical contracting business.
RATING SENSITIVITIES
Positive: An improvement in the liquidity position and revenue
while maintaining the EBITDA margin, leading to an improvement in
the credit metrics, all on a sustained basis, could lead to a
positive rating action.
Negative: Any further stretch in the liquidity position, along with
a decline in the revenue or EBITDA margin, resulting in
deterioration in the credit metrics, all on a sustained basis,
could lead to negative rating action.
COMPANY PROFILE
Incorporated in 2016, FPAL is an electrical contractor in Goa. The
firm undertakes all types of electrical work and majorly lighting
works.
GS MALLS: ICRA Lowers Rating on INR70cr LT Loan to B+
-----------------------------------------------------
ICRA has revised the ratings on certain bank facilities of GS Malls
Private Limited (GSMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 70.00 [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 downgrade is because of lack of adequate information
regarding GS Malls Private Limited'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 a rated entity" available at www.icra.in. 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 GS Malls 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
GSMPL was incorporated in the year 2008 and is promoted by the
Chadha group (a conglomerate with diverse business interests in
construction and operation of multiplexes, shopping malls, land
development, sugar, liquor, paper, health, food and trading of
liquor). The company owns and operates a multiplex cum mall by the
name of "Wave Mall" located at Channi Rama, Opposite Bathandi Road,
Jammu. The mall which commenced operations in 2014, is set up on a
land area of 3.48 acres with the built-up area of 4.45 lacs square
feet (sq. ft.) comprising retail area of approximately 1.94 lacs sq
ft, multiplex area of 0.45 lacs sq ft and parking area of 2.07 lacs
sq ft. The company also runs three cinema screens in the mall with
a total seating capacity of 1042 seats each, under the name of
"Wave Cinemas".
H.M. INDUSTRIAL: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR15.00 crore bank facilities of
H.M. Industrial Private Limited continues to remain under the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 6.00 [ICRA]D ISSUER NOT
Debentures (NCD) COOPERATING; Rating continues
to remain under the 'Issuer
Not Cooperating' category
Proposed 9.00 [ICRA]D ISSUER NOT
Nonconvertible COOPERATING; Rating continues
Debentures (NCD) to remain under the 'Issuer
Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
H.M. Industrial Private Limited (HMIPL) was initially incorporated
in 1991 as a partnership firm and was converted into a private
limited company in mid-June FY2017. HMIPL is engaged in diversified
business segments, such as cotton ginning, seed crushing and
stainless steel/seamless pipes and tubes manufacturing. The company
has a solvent extraction plant as well that processes castor oil
and de-oiled cakes from castor seeds, as well as a British Standard
Specifications (BSS) plant for refining castor oil. Its
manufacturing facility is at Kapadwanj in Kheda, Gujarat. In
FY2018, the company has set up a new manufacturing unit to produce
stainless steel pipes and tubes with an installed manufacturing
capacity of ~1,15,200 metric tonnes per annum. Its commercial
operations began from December 2017.
HANS RICE: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------
ICRA said the ratings for the INR75.00-crore bank facilities of
Shree Hans Rice And General Mills continue to remain under 'Issuer
Not Cooperating' category'. The ratings is denoted as
"[ICRA]B+(Stable)/A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 1.90 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long term/ 72.50 [ICRA] B+(Stable)/A4 ISSUER
Short Term- NOT COOPERATING; Rating
Fund Based continues to remain in the
'Issuer Not Cooperating'
Category
Long term/ 0.60 [ICRA] B+(Stable)/A4 ISSUER
Short Term- NOT COOPERATING; Rating
Unallocated 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. The
rating action has been taken in accordance with ICRA's policy in
respect of noncooperation by a rated entity available at
www.icra.in.
SHRGM a partnership firm, was set up in 1980 by Mr K.R. Gupta, and
is primarily engaged in milling of basmati rice, with its milling
unit located in Taraori, Karnal, in close proximity to the local
grain market. The firm has a milling and sorting capacity of 12
metric tonnes per hour (MTPH). The company had enhanced its milling
capacity by 4 tons per hour, with the new capacity being
commissioned in October 2013.
HANUMAN FOODS: ICRA Lowers Rating on INR12cr LT Loan to D
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Hanuman
Foods, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating downgraded from
[ICRA]B(Stable) ISSUER NOT
COOPERATING and continues to
remain under 'Issuer Not
Cooperating' category
Short Term- 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based Rating downgraded from [ICRA]A4
ISSUER NOT COOPERATING and
continues to remain under 'Issuer
Not Cooperating' category
Rationale
The rating downgrade reflects delays in debt servicing as mentioned
in publicly available sources. The rating is based on limited
information on the entity's performance since the time it was last
rated in July 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 Hanuman Foods, 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.
Credit challenges
There have been delays in debt servicing as mentioned in publicly
available sources.
Liquidity position: Poor
Hanuman Foods liquidity profile is poor as reflected by
irregularities in debtservicing by entity.
Hanuman Foods was established in the year 1998 as a partnership
firm with Mr. Sanjeev Kumar & Mr. Surender Kumar as partners in
equal ratio. As per the management it has a milling capacity of 6
tonnes/hr for paddy. Hanuman Foods is engaged in the business of
processing and trading of basmati rice in domestic market as well
as exporting to countries in Middle East, Saudi Arabia, Dubai,
Europe and Kuwait. Firm sells its product under the brand name of
"Good luck". Company is having its manufacturing unit at Nadana
Road, Taraori, Karnal.
HIMANGI FOODS: ICRA Lowers Rating on INR12cr LT Loan to B+
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Himangi
Foods Private Limited (HFPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 12.00 [ICRA]B+ (Stable) ISSUER NOT
Fund based/ COOPERATING; downgraded from
Cash Credit [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Long-Term 6.13 [ICRA]B+ (Stable) ISSUER NOT
Fund based/ COOPERATING; downgraded from
Term Loan [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Bank Guarantee 10.27 [ICRA]A4 ISSUER NOT
COOPERATING, Rating continues
to remain in the 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding HFPL'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 a rated entity"
available at www.icra.in. 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 Himangi Foods 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 the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Incorporated in the year 2006, Himangi Foods Private Limited (HFPL)
is primarily engaged in the milling of wheat to manufacture refined
flour, whole wheat flour, semolina and bran. The company is
promoted by Mr.Om Prakash along with other directors. HFPL's flour
milling unit is located at Kanpur in Uttar Pradesh.
IREO HOSPITALITY: ICRA Cuts Rating on INR923.30cr Loans to D
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of IREO
Hospitality Company Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 863.30 [ICRA]D; ISSUER NOT COOPERATING;
fund-based Rating downgraded from [ICRA]BB-
limits (Negative); Continues to remain
under the 'Issuer Not
Cooperating' category
Long-term 60.00 [ICRA]D; ISSUER NOT COOPERATING;
non-fund Rating downgraded from [ICRA]BB-
based limits (Negative); Continues to remain
under the 'Issuer Not
Cooperating' category
Rationale
The rating for the INR923.30 crore bank facilities of IREO
Hospitality Company Private Limited continues to remain under the
'Issuer Not Cooperating' category. The rating has been downgraded
to "[ICRA]D; ISSUER NOT COOPERATING".
The downward revision in the ratings primarily consider unfavorable
debt-serving track record of IREO Hospitality Company Private
(IHCPL) in the recent past, as confirmed by the lender. Moreover,
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 largely non-cooperative.
IREO Hospitality Company Private Limited (IHCPL) is a subsidiary of
IXO Limited (IXO). IXO, a Mauritius based company, is owned by the
IREO Group. IHCPL is undertaking the development of a mixed used
hospitality project located at Sector 58, Gurgaon, spread across a
land parcel with gross area of 13.95 acres. The project, with a
revised SCOD of September 30, 2019, is proposed to have a 5-star
deluxe hotel with 400 rooms, 60 service apartments and around 7.5
lakh sq.ft of leasable high-street retails space and Grade-A office
space. The revised project cost stands at INR1481 crore, with a
debt funding of INR983 crore of which INR863 crore had been
already tied-up before March 31, 2019. As on March 31, 2019, the
sponsor had infused INR463 crore and incurred approximately 84% of
the project cost.
JAIN AGENCIES: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR10.00 crore bank facilities of
Jain Agencies continue to remain in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+ (Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 10.00 [ICRA]B+ (Stable) ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in August, 2012, Jain Agencies is an authorised
distributor of Samsung Electronics India Limited in Sivasagar,
Jorhat, Dibrugarh, Tinsukia and Nagaon districts of Assam. The firm
sells consumer durables such as television, refrigerator, air
conditioners, etc. The firm is promoted by the Guwahati-based Jain
family, who have long experience in the distribution business
through various group entities.
JALANDHAR AMRITSAR: Ind-Ra Moves 'D' Loan Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jalandhar Amritsar
Tollways Ltd's (JATL) bank loan rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR 1.417 bil. Bank loan (long-term) migrated to Non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 7, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings
COMPANY PROFILE
JATL is a special purpose company that was set up to widen,
operate, and maintain a 49km road stretch on the National Highway 1
between Jalandhar and Amritsar in Punjab. NHAI has awarded the
project to JATL under a 20-year concession. JATL is wholly owned by
IVRCL Limited ('IND D (ISSUER NOT COOPERATING)'). The project
stretch is maintained by IVRCL, which has over two decades of
experience in operating toll roads.
JAYALAXMI ENTERPRISES: ICRA Keeps B+ Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR7.50 crore bank facilities of
Jayalaxmi Enterprises continue to remain under Issuer Not
Cooperating category. The Long-term rating is denoted as [ICRA]B+
(Stable) ISSUER NOT COOPERATING and Short-term rating is denoted as
[ICRA]A4 ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 1.25 [ICRA]B+ (Stable) ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short Term-Fund 6.25 [ICRA]A4 ISSUER NOT
Based COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Short Term- (2.00) [ICRA]A4 ISSUER NOT
Interchangeable 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 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.
Established in 1998, Jayalaxmi Enterprises is a partnership firm
promoted by Mr. Vittalaraya Hegde and family. JE is engaged in
processing of raw cashew nuts (RCNs) to plain cashew kernels and
trading of RCNs and processed kernels. JE has its processing unit
in Hosmar in Udupi District, Karnataka with an installed capacity
of 1300 MT per annum. The firm sources about 50-60% of its RCN
requirements through imports from Eastand West African countries
and the rest from the traders and resellers in Kerala and
Karnataka. During 2015-16, the firm derived about 60% of its
revenues from exports to the Middle Eastern countries. Trading of
RCNsand processed kernels contributed to about 75% of the revenues
during 2015-16.Besides Jayalaxmi Enterprises, the promoters also
own two other firms named Laxmidevi Cashews and Manglagowri
Exports, also engaged in the cashew processing, with an installed
processing capacity of 250 2 MT and 225 MT per annum respectively.
JE uses the facilities of its associates for cashew processing.
With its associates, JE has an aggregate manufacturing capacity of
1775 MT per annum.
KALPANA WINES: ICRA Lowers Rating on INR5cr Loans to B+
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kalpana
Wines, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+(Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating downgraded
from [ICRA]BB+(Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Long Term– 1.00 [ICRA]B+(Stable) ISSUER NOT
Unallocated COOPERATING; Rating downgraded
from [ICRA]BB+(Stable) and
continues to remain in the
'Issuer Not Cooperating'
Category
Rationale
The ratings downgrade is because of lack of adequate information
regarding Kalpana Wines'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 a rated entity" available at www.icra.in. 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 Kalpana Wines, 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 the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Established in 2011, Kalpana Wines is a partnership firm engaged in
selling IMFL, country liquor and beer through retail shops in
Kanpur. At present, the firm has 14 retail shops comprising of
model shops as well. The firm has 14 partners, with most of them
owning one or more licenses for running liquor retail shops. The
operations of the firm are primarily managed by Mr. Sukhvinder
Singh.
KAMAKHYA TRADERS: ICRA Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR7.00 crore bank facilities of
Kamakhya Traders continue to remain in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 6.00 [ICRA]B (Stable) ISSUER NOT
Fund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term– 1.00 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Incorporated in 2001, Kamakhya Traders has been engaged in the
trading of coal especially coking coal used for metallurgical uses
as well as providing allied services such as logistics and
transportation of coal to its customers. The firm purchases the
coal domestically from Assam, Kolkata and Gorakhpur while sells off
to steel and other metal players, tyre manufacturing companies as
well as construction units. The sales are made majorly in Gorakhpur
while the firm also sells to other parts of UP. The firm has a
designated team assigned in Assam from where the coal is loaded on
the train for Gorakhpur. The firm takes orders in advance post
which the order for the specific quantity of coal is given in Assam
and Kolkata. The coal is received in Goarkhpur by another team of
Kamakhya which load the same on the logistics units provided by the
customers. Hence, major logistics work is either carried through
the train or further handled by the customer itself reducing any
logistics pressure on Kamakhya. However, in some cases, Kamakhya
provides logistics services by hiring a vehicle and charges a
specific commission from the customer.
KISSAN POULTRY: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR13.61-crore bank facility Kissan
Poultry (India) Private Limited continues to remain under 'Issuer
Not Cooperating' category. The Long-term rating is denoted as
"[ICRA] D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 [ICRA]D: ISSUER NOT COOPERATING;
Rating continues to remain in
the 'Issuer Not Cooperating'
category
Term Loan 3.61 [ICRA]D: 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.
It is engaged in manufacturing of poultry feed and trading of day
old chicks and Eggs. The unit is in Jind District of Haryana. The
company started its commercial production in 2010 and has
production capacity of 210 tons per day. The day-to-day operations
of the company are managed by Mr. Tejbir Singh.
KLR INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR41.00 crore bank facilities of KLR
Industries Ltd. continues to remain under the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 28.50 [ICRA]D ISSUER NOT COOPERATING;
Limits Rating continues to remain under
the 'Issuer Not Cooperating'
category
Non-Fund 12.50 [ICRA]D ISSUER NOT COOPERATING;
based limits Rating continues to remain under
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
KLR Industries Limited (KLRIL) was initially established as a small
unit—KLR Universal—by Mr. K. Laxma Reddy in 1985. KLR Universal
was engaged in manufacturing button bits, a tool used in water well
drilling applications, before being incorporated as KLR Industries
Limited in January 2002. The company has a manufacturing facility
at Cherlapally, Hyderabad. KLRIL is engaged in the business of
manufacturing drilling equipments such as drilling rigs, hammers,
and bits, for the application of water wells, mining, piling,
geological survey, construction, etc.
MAGPPIE EXPORTS: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR19.50 crore bank facilities of
Magppie Exports Private Limited has continued to 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 19.50 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
Limits '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.
MEPL, incorporated in 1994, is engaged in the business of trading
of stainless steel coils/sheets. MEPL purchases stainless steel
coils / sheets and sells the same in the domestic market. The
company was initially catering to the requirement of stainless
steel coils for the promoter group company Magppie International
Limited (MIL), however over the years the company has developed a
diversified client base.
MAHASEMAM TRUST: Ind-Ra Affirms 'BB+' Loan Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Mahasemam Trust's
(MT) bank loans' rating at 'IND BB+' with a Stable Outlook while
resolving the Rating Watch Negative (RWN).
The detailed rating action is:
-- INR949.39 mil. Bank loans affirmed; Off RWN with IND BB+/
Stable rating.
The resolution of RWN factors in MT's consistently-improving
collections after the COVID-19 led economic disruptions. While the
exact quantification and ramifications of these disruptions will
unravel gradually, the microfinance industry has witnessed
significant improvements in terms of collections (80%-90% at
end-September 2020) compared to other sectors. MT's collections
ramped up to 92% by September 2020 from near zero levels in April
2020 (May 2020: 8.05%). Moreover, the company's on balance-sheet
liquidity position is adequate for meeting over one-and-a-half
month's debt obligations; this was less than a month in May without
the Reserve Bank of India-prescribed moratorium. Ind-Ra believes
MT's quantum of disbursements would depend on its collection rates
and fresh sanctions. Otherwise, the collection rate is more than
adequate to service its obligations and meet operating costs.
MT's rating is constrained by the fact that being a trust, it
cannot register its borrowers in the credit bureau and hence, the
chances of its borrowers overleveraging is high. In its petition to
the District Court of Madurai dated 10 February 2020, MT
acknowledged that not being able to tap a credit bureau, the way a
non-banking finance company can, impacts its business prospects and
makes conducting business difficult. Ind-Ra also expects that some
of the liability-side constraints such as reducing the quantum of
thrift deposits and incrementally large lines from lenders may not
be easy.
KEY RATING DRIVERS
No Access to Credit Bureaus: MT operates on a trust model and thus,
cannot enlist its borrowers to credit bureaus, which enhances the
riskiness of the borrowing profile. While the company has a vintage
of more than two decades and hasn't seen major issues in terms of
borrower defaults, even during demonetization, Ind-Ra believes the
company's inability to access credit bureaus, could still lead to
uncertainties relating to the customers overleveraging themselves.
Negative Outlook for Microfinance Sector: Ind-Ra has maintained a
negative outlook on the microfinance institutions for 2HFY21.
Collections for the microfinance sector, which had plummeted to
near zero levels in April 2020 as physical collections w were not
possible because of the nationwide lockdown, have made a reasonable
recovery with collection levels almost touching 80%-90% in
September 2020. The recovery could be attributed to the significant
share of borrowers in the essential services' supply chain, limited
political headwind and satisfactory performance of the rural
economy in 1HFY21. The road ahead is still long before reaching the
pre-pandemic collection levels of 98%-99%. While the high liquidity
and liability challenges that most microfinance institutions faced
in the beginning of the lockdown have abated, Ind-Ra expects that
smaller microfinance institutions, especially those that are not
formally regulated, to continue to face modest challenges.
Collections Improved post Lockdown; Concentration Risk Persists:
MT's collection run rate improved to 65% in June 2020 and 92% in
September 2020 from 0% in April 2020, as around 70% of its
borrowers are involved in the essential goods and services, and
therefore, their cash flows were relatively intact during the
COVID-19 led lockdown. MT's aggregate collection efficiency as on
end-September 2020 was around 73% during May-September 2020. MT's
portfolio, however, remains majorly concentrated in Tamil Nadu's
districts of Tirunelveli (19%), followed by Tuticorin (18%) and
Virudhunagar (17%) and the rest with other seven districts of Tamil
Nadu, exposing it to geographical concentration risk. Ind-Ra
believes any additional restrictions in terms of the movement of
people or sudden lockdown of areas due to incremental COVID-19
cases will further hamper the collections and thereby asset quality
of the borrowers.
Liquidity Indicator – Adequate: At end-September 2020, MT had
cash and bank balances of INR67.2 million, which is equivalent to
about 5% of its asset under management. The company also has
encumbered cash (fixed deposits) of INR179.7 million. MT has
outflows in terms of debt servicing (principal and interest) of
INR153.1 million and operating expenses of INR27 million for
3QFY21. As per the September 2020 asset liability management
statement, MT has a cumulative surplus of around 20.1% in the up to
one-year period and 18% in the up to three months bucket even after
stressing the inflows. However, Ind-Ra also notes that the entity
is collecting around 92%, amounting to an average collection of
around INR190 million over June-September 2020, which safeguards
its near-term repayment obligations. Ind-Ra expects the trust to be
conservative in disbursements as managing liquidity would be
challenging in case of a moderate drop in collections hereon. MT
was allowed debt moratorium from around 90% of lenders (by
borrowings) in April and May, around 60% of the lenders in June
2020 and 42% in July and August 2020, which helped the trust
conserve around INR400 million of debt obligations. Ind-Ra also
expects MT's thrift deposits, amounting to INR467 million at
end-September 2020, to materially decline over the next one year.
Modest Standalone Profile: At end-August 2020, MT's assets under
management was INR1,453 million (FYE20: INR1,400 million; FYE19:
INR1,397.8 million), which remains concentrated in Tamil Nadu
(operates in 10 districts). Also, the trust does not intend to
expand the portfolio out of Tamil Nadu in the near term. At
end-August, the gross non-performing assets (portfolio at risk 90+
days past due) stood at 0.14% (FYE20: 0.14%; FYE19: 0.09%) and in
the agency's view, the entity will face some asset quality
pressures in the near term due to the COVID-19 led disruptions.
Resultantly, Ind-Ra expects the trust's near-term credit costs to
elevate further (FY20: 1.3%; FY19: 1%) affecting its profitability
(return on equity in FY20: 3.3%; FY19: 2.4%) and capital buffers
(Tier-I capital ratio in FY20: 23.42%; FY19: 19.2%. The management
has informed the agency that it has made additional provisioning of
0.28% specifically for COVID-19, in line with the additional
provisioning level maintained by other similar-rated peers. MT
disbursed around INR400 million since the resumption of its
operations in May 2020 after the initial lockdown.
At end-June 2020, with net worth of INR337.7 million, MT's capital
to risk weighted assets ratio and Tier-1 capital ratio was 24%
(FY20: 23.42%; FY19: 19.2%) better than its peers. This capital,
the agency believes, provides modest buffers to MT's high credit
costs that could be incurred if the recovery is slower than
expected. Notwithstanding its vintage in the microfinance sector,
MT would find it difficult to attract equity support and funding
support as it is a non-profit organization.
RATING SENSITIVITIES
Positive: The rating could be upgraded if the trust is able to
significantly expand and diversify its franchise, scale-up
operations while maintaining adequate short-term liquidity, higher
capital buffers and lower leverage on a sustained basis while
maintaining asset quality.
Negative: Inability to maintain adequate capital buffers and
back-up liquidity provisions, rising leverage and deterioration in
the asset quality (gross non-performing assets rising above 5%),
higher-than-expected credit costs or a drop in collections or
capital levels close to the regulatory requirements, could result
in a negative rating action. There could also be a negative rating
action if Ind-Ra does not see a material decline in the entity's
thrift deposits.
COMPANY PROFILE
MT is a Madurai (Tamil Nadu) based trust engaged in microfinance
activities. The trust provides personal unsecured loans to its
members across nine districts Madurai, Tirunelveli, Kanyakumari,
Tuticorin, Virudhunagar, Ramanathpuram, Shivagangai, Tenkasi and
Theni in the state of Tamil Nadu.
Over 99% of the trust's loan portfolio consists of women self-help
group (SHG) loans. SHGs operate on the joint-liability group model
with the joint guarantee signed by the groups. The trust also
provides maternity loans, education loans, marriage loans, and
sanitation loans to aid and cover the entire life cycle of SHG
members.
MBS SERVICES: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed MBS Services'
(MBS) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable
The instrument-wise rating action is:
-- INR160 mil. (reduced from INR164 mil.) Fund-based working
capital limits affirmed with IND BB+/Stable/IND A4+ rating.
Analytical Approach: To arrive at the ratings, Ind-Ra continues to
factor in financial support from MBS' parent Manohar
Infrastructure and Constructions Private Limited ('IND
BBB'/Stable) in the form corporate guarantee for the partial debt
of INR160 million (FY20 total debt: INR439 million) raised by MBS
in FY20.
KEY RATING DRIVERS
The affirmation reflects MBS' continued small scale of operations
as indicated by revenue of INR44.60 million in FY20 (FY19: INR40.25
million). FY20 financials are provisional.
The ratings remain constrained by the company's weak credit
metrics, despite an improvement, because of the high debt levels.
In FY20, the interest coverage (operating EBITDA/gross interest
expense) improved to 1.25x (FY19: 0.80x) and the net financial
leverage (total adjusted net debt/operating EBITDAR) to 9.74x
(14.26x) because of an increase in absolute EBITDA to INR57.27
million (INR39.87 million) and a decline in the debt to INR563
million (INR571 million). MBS' debt service coverage ratio (DSCR)
stood at around 1.11x in FY20 (FY19: 1.03x). Ind-Ra expects the
DSCR to remain at similar level in FY21.
Liquidity Indicator - Stretched: The company had near full
utilization of its fund-based limits during the 12 months ended
September 2020. The cash flow from operations declined further to
negative INR204 million in FY20 (FY19: negative INR7.48 million),
on account of an increase in working capital requirement. MBS had
cash and cash equivalent of INR20.93 million at 1HFYE21 (FYE20:
around INR5.39 million, FYE19: INR2.73 million). The company had
availed the Reserve Bank of India-prescribed moratorium for
principal and interest payments over March to August 2020 under the
COVID-19 relief package.
The ratings also remain constrained by the proprietorship nature of
the business.
However, the ratings remain supported by the company's long-term
lease and maintenance agreements with almost all its major
counterparties. Also, MBS' EBITDA margin stood strong at 99.65% in
FY20 (FY19: 97.77%).
Furthermore, the ratings continue to be supported by the promoters'
experience of over two decades in the real estate development
business.
RATING SENSITIVITIES
Negative: Cancellation of rental agreements with its customers
leading to the DSCR reducing below 1.05x, could result in a
negative rating action.
Positive: A significant increase in the lease income, resulting in
an improvement in the liquidity will be positive for the ratings.
COMPANY PROFILE
Formed in 2005, MBS is engaged in leasing of commercial properties
in Chandigarh. Tarninder Singh is the promoter.
MCLEOD RUSSEL: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR1031.09-crore bank facilities of
McLeod Russel India Limited (MRIL) continue to remain under Issuer
Not Cooperating' category'. The Long-term ratings & Short-term
ratings are denoted as "[ICRA]D/D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 360.00 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
category
Fund-based 491.76 [ICRA]D ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain under
'Issuer Not Cooperating'
category
Fund-based 163.92 [ICRA]D ISSUER NOT COOPERATING;
Bank Facilities** Rating continues to remain under
'Issuer Not Cooperating'
category
Non-fund- 15.41 [ICRA]D ISSUER NOT COOPERATING;
based Bank Rating continues to remain under
Facilities 'Issuer Not Cooperating'
category
**Fungible with LT facilities
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.
McLeod Russel India Limited (MRIL), the tea plantation company of
the Kolkata-based B.M. Khaitan Group, was originally incorporated
as Eveready Company India Private Ltd. on May 5, 1998. MRIL was
formed after the demerger of the bulktea business from Eveready
Industries India Ltd. (EIIL) with effect from April 1, 2004. MRIL
has acquired several other companies like Williamson Tea Assam in
FY2006, Doom Dooma Tea Company in FY2007 and Moran Tea in FY2008.
These acquisitions helped MRIL increase the number of tea estates
to 53 in India with 33,723 hectares (Ha) of total land under tea
cultivation. In FY2019 and FY2020, MRIL has sold various tea
estates, both in Assam and in the Dooars. MRIL is primarily a
producer of CTC tea, which accounts for around 96% of the total tea
production.
In FY2020, on a consolidated basis, the entity reported a net loss
of INR147.80 crore on the back of an operating income of INR1142.7
crore against a net profit of INR38.8 crore on operating income of
INR1722.9 crore in the previous year. In FY2020, on a standalone
basis, the entity reported a net profit of INR12.3 crore on the
back of an operating income.
MINI HOTELS: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
ICRA said the ratings for the INR6.50 crore bank facilities of Mini
Hotels & Projects continue to remain under the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated 6.50 [ICRA]D/D 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 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. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Mini Hotels and Projects (MHP), is a partnership firm, promoted by
Mr. P. Ravi Kumar and Ms. P. Padma on June 30, 2014. The firm has
renovated a multi storied building into a Hotel and branded as
"Hotel Aira". The hotel is situated in Benz circle, Vijayawada, a
prime location that annually draws tourists and corporate visitors
from all over the country. The land and super structure is owned by
the partners and the super structure is being leased out to MHP.
The hotel comprises of 7 Standard rooms, 29 Executive rooms, 4
Royal Suite, a Banquet Hall (accommodating 110 people) and
conference room. The hotel also has 80 seat fine dining restaurant
and 25 seat coffee shop. The hotel has commenced commercial
operations in the month of August 2016.
MONDAL ICE: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR9.49 crore bank facilities of
Mondal Ice & Cold Storage Private Limited continue to remain in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]B+ (Stable)/A4 ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based– 0.10 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund based– 9.24 [ICRA]A4 ISSUER NOT
Working Capital COOPERATING; Rating continues
Facilities to remain under 'Issuer Not
Cooperating' category
Non fund based– 0.15 [ICRA]B+ (Stable) ISSUER NOT
Bank Guarantee COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Mondal Ice & Cold Storage Private Limited (MICS) had set up its
cold storage unit at Bishnupur in the Bankura district of West
Bengal in 1985. It was established as a partnership firm to carry
on the business of storage and preservation of potatoes. In 1999,
the entity was converted into a private limited company. Promoted
by the Kolkata-based Mondal family, MICS has a storage capacity of
35,000 metric tonnes (MT) at present.
MONTFORT EDUCATIONAL: ICRA Cuts Rating on INR11cr Loan to B+
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Montfort
Educational and Charitable Trust of The Brothers of St. Gabriel,
as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term 10.63 [ICRA]B+ (Stable) ISSUER NOT
Fund based/ COOPERATING; downgraded from
TL [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
category
Fund Based 0.37 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; 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 Montfort Educational and Charitable Trust of The Brothers
of St. Gabriel'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 a rated entity"
available at www.icra.in. 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.
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.
Established in the year 1998, Montfort Educational and Charitable
Trust of The Brothers of St. Gabriel, is managed by the Montfort
Brothers of St. Gabriel, a religious Society of the Catholic
Church, founded by St. Louis Grignion de Montfort in the 18th
century in France. The trust operates four schools under the trust
with Lake Montfort school being the largest institution among all.
At present the school provides education from kindergarten to XII
students under CBSE curriculum and has a student strength of 2502
for AY2019-20.
ODYSSEUS LOGOS: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Odysseus Logos
LLP's term loan rating in the non-cooperating category. The issuer
did not participate in the rating exercise, despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR82 mil. Term loan due on June 2029 maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
21, 2019. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Odysseus Logos has set up a 2MW (2.4DC) grid interactive solar
photovoltaic power project at Gandlaparthy Village, Raptadu Mandal,
Ananthpur District in Andhra Pradesh. Abhimanyu Lavu and Lavu Papu
Rao are the partners.
PASUPATI SPINNING: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the rating for the INR11.77-crore1 bank facility of
Pasupati Spinning & Weaving Mills Limiteded continues to remain
under 'Issuer Not Cooperating' category. The Long-term rating is
denoted as "[ICRA] D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
15% Partially 11.77 [ICRA]D ISSUER NOT COOPERATING;
Convertible Rating continues to remain in
Debentures 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 1979, PSWM is promoted by Mr. Ramesh Kumar Jain and
manufactures cotton yarn, polyester grey and dyed sewing thread, as
well as knitted fabric. The company has two manufacturing units,
one sewing thread manufacturing facility in Kala Amb and one
polyester viscose and cotton yarn manufacturing unit in Dharuhera
(Haryana).
PRITHVI DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the INR8.00 crore bank facilities of
Prithvi Developers has continued to 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 8.00 [ICRA]D ISSUER NOT COOPERATING;
Term Loan 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.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Prithvi Developers is a society established in 1996 by Dr Zora
Singh and his family members. It established a private university
by the name Desh Bhagat University under the Punjab Govt's Desh
Bhagat University Act. Desh Bhagat United has its campuses at Mandi
Gobindgarh, Shri Muktsar Sahib, Moga, Chandigarh in Punjab, India
and in Kenya, East Africa. The university offers around 105
undergraduate and post-graduate courses in the field of
Agricultural Sciences, Airlines, Animation, Applied Sciences, Art &
Craft and Fashion Technology, Ayurveda, Commerce, Computer
Sciences, Education, Engineering, Hospitality and Tourism, Hotel
Management, Languages, Law, Management, 2 Media, Nursing,
Performing arts, Physical Education, and the Social Sciences. The
university has a total capacity of 21,000 students with an average
occupancy of 43%.
RAJENDRA AGRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR10.00 crore bank facilities of
Shree Rajendra Agro Industries continue to remain under Issuer Not
Cooperating category. The rating is denoted as [ICRA]B+ (Stable)
ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund 5.00 [ICRA]B+ (Stable) ISSUER NOT
Based/CC COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term-Fund 0.49 [ICRA]B+ (Stable) ISSUER NOT
Based TL COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
Long Term- 4.51 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain in the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis 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.
Established in 2013, Shree Rajendra Agro Industries (SRAI) is owned
and managed by Mr. Sumermal Jain along with three other partners.
The firm is engaged in the business of ginning and pressing of raw
cotton with manufacturing capacity of around 200 bales per day at
the plant operating on a 24-hours basis. SRAI is currently equipped
with 24 ginning machines and two pressing machines. Its saleable
products include cotton lint and cotton seeds.
RANCHI EXPRESSWAY: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR1151.60 crore bank facilities of
Ranchi Expressway Limited continue to remain under the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1,151.60 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating continues to remain under
TL 'Issuer Not Cooperating'
category
The project has been terminated and the issuer has requested ICRA
to withdraw the rating assigned to Ranchi Expressway Limited.
However, due to non-receipt of 'no objection certificate' from the
lenders, the rating could not be withdrawn. 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. The
rating action has been taken in accordance with ICRA's policy in
respect of non-cooperation by a rated entity available at
www.icra.in.
Ranchi Expressways Limited (REL) has been incorporated as a special
purpose vehicle promoted by Madhucon Infra Limited (MIL) and
Madhucon Projects Limited (MPL) to undertake the implementation of
Four- laning of Ranchi to Jamshedpur section of NH-33 from km
114.000 to km 277.500 in the state of Jharkhand under NHDP Phase
III on Design, Build, Finance, Operate, Transfer (DBFOT) Annuity
basis. The project has been terminated and is currently under
arbitration.
RNB INTERNATIONAL: ICRA Keeps B Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR11.00 crore bank facilities of RNB
International Private Limited continue to remain in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B (Stable)
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term–Fund 11.00 [ICRA]B (Stable) ISSUER NOT
Based–CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
RNB was incorporated in 2003 and is engaged in market research
services, wool trading and publication business. While the company
is engaged in market research services since inception, it entered
into wool trading business in FY 2012. The wool trading business
was earlier carried out in other group companies – RNB Overseas
Private Limited and RNB Mercantile Pvt. Ltd. Within market
research, the company assists its client in research design and
engaged in data collection & tabulation across various countries,
industries and domains. The company undertakes both single and
multiple country research and its major clientele are based out of
USA, UAE and Europe. RNB International is also engaged in
publication and marketing of books authored by Mr. Ram Narayan
Bajaj (father of Mr. Vikram Kumar Bajaj), mainly motivational
books; however, this activity is carried out on a small scale.
SAI RAM: Ind-Ra Moves B+ LongTerm Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sai Ram Chemicals'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING) /
IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR96.6 mil. Term loans due on March 2024 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 23, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2015, Sai Ram Chemicals is a partnership firm
engaged in manufacturing and supplier of active pharmaceutical
ingredients and intermediates of all types of industrial chemicals,
solvents and raw materials.
TRUEVALUE ENGINEERING: ICRA Cuts Rating on INR12.50cr Loan to D
---------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Truevalue Engineering Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 12.50 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating downgraded from [ICRA]B+
(Stable) ISSUER NOT COOPERATING
and continues to remain under
Issuer Not Cooperating' category
Non-Fund 27.50 [ICRA]D ISSUER NOT COOPERATING;
based Letter Rating downgraded from [ICRA]A4
of Credit ISSUER NOT COOPERATING and
continues to remain under Issuer
Not Cooperating' category
Non-Fund 0.55 [ICRA]D ISSUER NOT COOPERATING;
Based Forward Rating downgraded from [ICRA]A4
Contract ISSUER NOT COOPERATING and
continues to remain under Issuer
Not Cooperating' category
Rationale
The revision in rating is on account of irregularities in loan
repayment as mentioned in publicly available sources. 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 Truevalue Engineering 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: NA
Credit challenges: There has been delays in debt as mentioned by
banker.
Liquidity position: Poor
The company's liquidity profile is poor as reflected by
irregularities in debt servicing by entity.
Incorporated in 1999, Truevalue Engineering Private Limited was
promoted by Mr. Rajendrakumar Choudhary. TEPL is engaged in trading
of flat steel products like hot rolled and cold rolled coils,
galvanised steel, colour coated steel, mild steel etc. The trading
operations of the company gained momentum only upon the sanction of
its working capital facilities in 2010. The firm has its registered
office in Mumbai.
VAMSI CHEMICALS: Ind-Ra Assigns B+ Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Vamsi Chemicals
(Vamsi) a Long-Term Issuer Rating of 'IND B+'. The Outlook is
Stable.
The instrument-wise rating action is:
-- INR2.9 mil. Term loan due on April 2023 assigned with IND B+
/Stable rating.
KEY RATING DRIVERS
The ratings reflect Vamsi's small scale of operations, as indicated
by revenue of INR252million in FY20 (FY19: INR24 million; FY18:
INR13 million), and its limited track record, as the firm commenced
operations only in February 2017. The revenue increased sharply in
FY20 owing to the firm's diversification into the water-soluble
fertilizer business (accounted for 80% of the total revenue in
FY20). Vamsi, which had initially started its operations with the
trading of industrial chemicals, began to import water-soluble
fertilizers from China in FY20. The firm had booked total revenue
of INR240.00 million as of September 2020. The firm receives orders
on an on-going basis. Despite the impact of the COVID-19-led
disruptions, Ind-Ra expects Vamsi's top-line to improve in FY21, as
its products are classified as essential commodities, and also
because of its increased share in the domestic market. The figures
for FY20 are provisional in nature.
The ratings reflect the modest EBITDA margins due to the trading
nature of the business. The margins fell to 1.6%.in FY20
(FY19:3.1%). due to an increase in operating expenses. The ROCE was
12% in FY20 (FY19:11%). Ind-Ra expects the firm's margins to remain
at the FY20 levels in FY21.
The ratings reflect the modest credit metrics due to the high debt
levels. The metrics weakened in FY20 because of a sharp increase in
the total debt to INR47 million (FY19: INR7 million), and the
resultant rise in interest expenses. The interest coverage
(operating EBITDA/gross interest expense) was 0.7x in FY20 (FY19:
4.9x) and the net leverage (total adjusted net debt/operating
EBITDAR) was 10.7x (6.5x). While the company does not have any
debt-led capex plans, Ind-Ra expects the metrics to remain at
similar levels in FY21 as the margins are likely to remain thin.
Liquidity Indicator – Stretched: The cash flow from operations
deteriorated further to a negative INR38 million in FY20 (FY19:
negative INR3 million) on account of an increase in working capital
requirements. Consequently, the free cash flow from operations
deteriorated to a negative INR39 million in FY20 (FY19: negative
INR3 million). The firm does not have any working capital loan
facility. The net working capital cycle elongated to 33 days in
FY20 (FY19: 22 days) due to an increase in the debtor days to 72
days (27 days). The cash and cash equivalents stood at INR3 million
at end-FY20 (end-FY19: INR0.3 million). The firm availed business
loan facilities of IN3.7 million over FY19-FY20. The company has
repayment obligations INR1.74 million, INR1.34 million and INR0.419
million in FY21, FY22 and FY23, respectively. The firm did not
avail the Reserve Bank of India-prescribed debt moratorium.
The ratings are also constrained by the proprietorship nature of
the business.
The ratings, however, are supported by the company's strong
customer base, with clients such as Fertis India Pvt Limited and
Indian Farmers Fertilizer Cooperative Limited.
RATING SENSITIVITIES
Negative: A decline in the revenue and operating profitability,
resulting in a deterioration in the credit metrics, on a sustained
basis, will be negative for the ratings.
Positive: A significant increase in the revenue and profitability,
leading to an improvement in credit metrics, all on a sustained
basis, would be positive for the ratings.
COMPANY PROFILE
Established in 2015 by Vishal Basetti, Vamsi is engaged in the
trading of chemical powder and water soluble fertilizers. The firm
is based in Hyderabad.
=========
J A P A N
=========
RENOWN INC: To Enter Liquidation as Pandemic Hits Sales
-------------------------------------------------------
The Japan Times reports that Renown Inc., which had sought court
protection to revive its century-old business, will go into
liquidation amid plunging sales due to the novel coronavirus
pandemic, its lawyers said Nov. 2.
According to the report, the Tokyo District Court on Oct. 30
decided to discontinue court protection after a sponsor could not
be found. The liquidation procedure is expected to begin after
about a month, according to credit research firm Tokyo Shoko
Research.
The textile company had undertaken restructuring measures since
filing for protection from creditors in May with debts totaling
JPY13.88 billion ($133 million), the Japan Times relates.
In August, Renown said it would sell some of its main brands
including D'urban and Aquascutum to group companies of Koizumi Co.,
an apparel company in Osaka, while closing shops of other brands
such as Arnold Palmer Timeless by the end of last month, the report
recalls.
The Japan Times says the Japanese apparel maker, founded in 1902,
once enjoyed brisk sales at its sections in major department
stores, but sales began tumbling after the burst of the nation's
asset bubble in the early 1990s.
Renown fell under the control of the Chinese textile Shandong Ruyi
group in 2010 to restore its financial health, but its business was
hit hard by the nationwide closure of major department stores to
curb coronavirus infections, the report adds.
About Renown
Renown Incorporated is a holding company established through the
merger of Renown and D'urban. The Company manages its subsidiaries
of apparel manufacturers.
As reported in the Troubled Company Reporter-Asia Pacific on May
18, 2020, Renown Inc. said May 15 it filed for bankruptcy
protection after the coronavirus pandemic hit sales sharply in
recent months.
Founded in 1902, Renown filed for protection from creditors with
the Tokyo District Court under the civil rehabilitation law. It was
the first bankruptcy of a listed company in Japan since January
2019, according to credit research firm Teikoku Databank.
Renown has debts totaling JPY13.88 billion (US$129 million).
===============
M A L A Y S I A
===============
FSBM HOLDINGS: Reprimanded for Delay in Issuing Annual Report
-------------------------------------------------------------
Justin Lim at theedgemarkets.com reports that Bursa Malaysia
Securities Bhd has publicly reprimanded FSBM Holdings Bhd and six
of its directors for failing to issue the company's annual report
for the financial year ended June 30, 2018 within the stipulated
time frame.
theedgemarkets.com relates that the six directors of the
information technology service and systems provider have also been
slapped with a collective fine of MYR375,600.
According to the report, the six are senior independent
non-executive chairman Datuk Dr Abdul Rahim Daud, managing director
Datuk Tan Hock San @ Tan Hock Ming, executive director Tan Ee Ern,
independent non-executive director Abdul Jalil Abdul Jamil,
independent non-executive director Chang Wei Ming (who resigned on
Dec. 19, 2018).
In a statement, Bursa Malaysia said it views the contravention
seriously as the timely submission of financial statements is one
of the fundamental obligations of listed companies,
theedgemarkets.com relays.
It is of paramount importance in ensuring a fair and orderly market
for securities traded on the exchange and necessary to aid informed
investment decisions, the exchange said.
It noted that the delay in issuing the annual report was mainly due
to a disagreement with the external auditors in issuing a
disclaimer of opinion for the company's audited financial
statements, which would have resulted in the company triggering the
Practice Note 17 (PN17) criteria, theedgemarkets.com relays.
theedgemarkets.com says the external auditor had on Oct 31, 2018
issued the disclaimer on the basis that FSBM was unable to obtain
sufficient audit evidence to satisfy themselves as to the
appropriateness of the carrying amounts of the trade and other
receivables due from Technitium Sdn Bhd of MYR7.6 million and
business consultant of MYR3.2 million in accordance with the
Malaysian Financial Reporting Standards.
However, FSBM and the directors had also disregarded compliance
with the listing rules by not issuing the annual report to avoid
triggering PN17 which would purportedly jeopardise the company's
prospects in securing a project, noted Bursa Malaysia.
Trading in FBSM shares was suspended for 13 months from Nov. 9,
2018. Trading resumed on Jan. 3 this year, the report adds.
FSBM Holdings Berhad distributes computers, computer related
products, education related products and provides installation and
maintenance services. Through its subsidiaries, the Group develops
software applications and systems integration, provides data
warehousing systems, and smart community solutions. FSBM also has
operations in multimedia production and communication services.
PARKSON HOLDINGS: Upbeat on China's Retail Industry
---------------------------------------------------
Bernama reports that Parkson Holdings Bhd maintains a positive
outlook on the retail industry in China, with consumer spending
picking up steadily amid effective control of the Covid-19 pandemic
there.
In its 2020 annual report released on Oct. 27, chairman Tan Sri
Cheng Heng Jem said the departmental store operator would continue
to adopt an active and prudent strategy to widen its income
sources, Bernama relates.
"Hence, the group maintains a positive outlook on the retail
industry in China despite the many challenges faced this year,
especially the sluggish economy and the impact caused by Covid-19,"
Bernama quotes Mr. Cheng as saying.
As for the Southeast Asian region, the operating environment
remains challenging amid severe competition and economic
uncertainties.
"Much emphasis will be placed on cost containment, improving
stores' productivity and optimising operational efficiency to
improve the results," Mr. Cheng said.
On Parkson's announcement earlier this month that it had triggered
of one of the prescribed criteria of PN17, he said it was not
designated as a PN17 company and was not required to comply with
the obligations of PN17 classification for a 12-month period from
the announcement date, under the PN17 relief measures available to
affected listed issuers granted by Bursa Securities, according to
Bernama.
On Oct. 15, the company announced that its auditors had issued an
unqualified audit opinion which included a paragraph on material
uncertainty related to going concern on the Parkson Holdings group
in respect of its financial statements for the financial year ended
June 30, 2020, and the company's shareholders' equity on a
consolidated basis as at June 30 being less than 50% of its issued
share capital of MYR4.15 billion.
Bernama relates that Mr. Cheng said the group would re-assess and
announce whether it continued to trigger any of the prescribed
criteria in PN17, after 12 months from the date of the
announcement.
Meanwhile, Parkson widened its net loss in the fourth quarter (Q4)
ended June 30, 2020, to MYR209.25 million from MYR42.12 million
recorded in the corresponding quarter last year, Bernama
discloses.
For the full year (FY20), net loss widened to MYR427.28 million
from MYR129.18 million in the previous year, adds Bernama.
It registered an overall drop in revenue from MYR4.03 billion in
FY19 to MYR3.2 billion in FY20.
Parkson's retailing division recorded a 19% or MYR3.2 billion, dip
in revenue with a lower operating profit of MYR110 million.
Parkson Holdings has 41 departmental stores in China, four in
Vietnam and 15 in Indonesia. In Malaysia, it has 42 stores
nationwide.
=====================
N E W Z E A L A N D
=====================
FUND MANAGERS: FMA Appoints KPMG as Temporary Manager
-----------------------------------------------------
The Financial Markets Authority (FMA) has appointed a temporary
manager to manage three schemes previously operated by Fund
Managers Otago Limited (FMO).
On Nov. 2, 2020, the FMA appointed KPMG Restructuring Services NZ
Limited as temporary manager after the schemes' supervisor,
Trustees Executors Limited, determined it was in the best interests
of investors to remove FMO as manager of those schemes. The removal
was initiated due to issues relating to FMO's governance, solvency
of the manager and regulatory breaches.
Trustees Executors was responsible, on behalf of investors, for
supervising FMO's performance as manager.
James Greig, FMA Director of Supervision, said Trustees Executors'
decision to remove FMO demonstrated that safeguards in the FMC Act
-- intended to protect the best interests of investors -- could be
used when necessary.
"Supervisors are the frontline regulators for managed investment
schemes and their oversight is designed to ensure fund managers
meet their obligations, and take appropriate action when managers
do not meet those obligations," he said.
Because the schemes no longer have a manager and Trustees Executors
was unable to find another licensed manager willing to fill the
vacancy, Trustees Executors requested that the FMA exercise its
power to appoint KPMG Restructuring Services as the temporary
manager.
This is the first time the FMA has used its power to appoint a
temporary manager.
Of the three schemes, two are legacy schemes that have been closed
for several years and are in the process of being wound up: Capital
Mortgage Income Trust and the NZ Mortgage Income Trust.
The third scheme, the NZ Mortgage Income Trust (No 2) Fund, has
approximately 600 investors. This fund was open, but the removal of
FMO as manager also means that this fund will now be wound up.
KPMG Restructuring Services' role is to ensure that all investors
in the FMO funds are treated fairly and equitably while the funds
are wound up and returned to investors.
Investors can visit KPMG Restructuring Services for further
information.
Alternatively, investors can email any questions they might have
about the windup process to NZmortgagetrust@kpmg.co.nz or contact
KPMG Restructuring Services on their toll-free hotline, 0800 576
477, between 9:00 a.m. and 5:00 p.m., Monday to Friday.
=====================
P H I L I P P I N E S
=====================
DE LA O RURAL: Creditors' Claim Filing Deadline Set for Dec. 11
---------------------------------------------------------------
All creditors of the closed De La O Rural Bank, Inc. have until
December 11, 2020 to file their claims against the assets of the
closed bank either by e-mail, mail, or personally. Creditors refer
to any individual or entity with a valid claim against the assets
of the closed De La O Rural Bank, Inc. and include depositors whose
deposits exceed the maximum deposit insurance coverage (MDIC) of
PHP500,000.
The Philippine Deposit Insurance Corporation (PDIC) said that
various ways to file claims are available to creditors and
depositors with uninsured deposits.
Claims may be filed:
1. Online through e-mail at delao-pad@pdic.gov.ph;
2. Through mail addressed to the PDIC Public Assistance
Department, 6th Floor, SSS Bldg., 6782 Ayala Avenue corner
V.A. Rufino St., Makati City 1226. Claims filed by mail must
have a postmark dated not later than December 11, 2020; or
3. Personal filing on appointment basis at the PDIC Public
Assistance Center located at the 3rd Floor, SSS Bldg., 6782
Ayala Avenue corner V.A. Rufino St., Makati City, Monday to
Friday, 8:00 AM to 5:00 PM.
To make an appointment, clients may call the Public Assistance
Hotline at (02) 8841-4141 or at Toll Free number 1-800-1-888-7342
or 1-800-1-888-PDIC, send an e-mail to delao-pad@pdic.gov.ph, or
send a private message at PDIC's official Facebook account,
www.facebook.com/OfficialPDIC.
The prescribed Claim Form against the assets of the closed bank may
be downloaded from the PDIC website,
http://www.pdic.gov.ph/files/Claim_Form_Against_Assets_of_Closed_Banks.pdf.
PDIC reminds creditors to transact only with authorized PDIC
personnel.
Claims filed after December 11, 2020 shall be disallowed. PDIC, as
Receiver, shall notify creditors of denial of claims through mail.
Claims denied or disallowed by the PDIC may be filed with the
liquidation court within sixty (60) days from receipt of final
notice of denial of claim.
In addition, PDIC said that depositors with account balances of
more than the maximum deposit insurance coverage (MDIC) of
PHP500,000 who have already filed claims for the insured portion of
their deposits as of December 11, 2020 are deemed to have filed
their claims for the uninsured portion or the amount in excess of
the MDIC.
PDIC, as Receiver of closed banks, requires personal data from
creditors to be able to process their claims and protects these
data in compliance with the Data Privacy Act of 2012.
De La O Rural Bank, Inc. was ordered closed by the Monetary Board
(MB) of the Bangko Sentral ng Pilipinas on September 10, 2020 and
PDIC, as the designated Receiver, was directed by the MB to proceed
with the takeover and liquidation of the closed bank in accordance
with Section 12(a) of Republic Act No. 3591, as amended. The bank
is located at 10 San Jose St., Brgy. San Jose (Pob), Pangil,
Laguna.
All requests and inquiries relating to De La O Rural Bank, Inc.
shall be addressed to the PDIC Public Assistance Department through
e-mail at delaopad@pdic.gov.ph, or through telephone number (02)
8841-4141. Depositors and creditors outside Metro Manila may call
the PDIC Toll Free Hotline during office hours at 1-800-1-888-PDIC
(7342). Inquiries may also be sent as private
message at Facebook through www.facebook.com/OfficialPDIC.
RURAL BANK OF MAIGO: Depositors' Claims Filing Deadline on Nov. 13
------------------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) announced that
depositors of the closed Rural Bank of Maigo (Lanao del Norte),
Inc. have until November 13, 2020 to file their deposit insurance
claims.
Based on latest PDIC data, deposit insurance claims for 419 deposit
accounts with aggregate insured deposits amounting to PHP2.6
million have yet to be filed by depositors. Data also showed that
as of September 30, 2020, PDIC had paid depositors of the closed
Rural Bank of Maigo (Lanao del Norte), Inc. the total amount of
PHP59.5 million, corresponding to 95.8% of the bank's total insured
deposits amounting to PHP62.1 million.
Depositors are advised to file their claims either online via
electronic mail (email) at pad@pdic.gov.ph or through postal mail
or courier addressed to the PDIC Public Assistance Department, 6th
Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino Street,
Makati City.
Claims may also be filed personally at the PDIC's Public Assistance
Center in Makati City on a per appointment basis. To make an
appointment, depositors may call the Public Assistance Hotline at
(02) 8841-4141 or at Toll Free number 1-800-1-888-7342 or
1-800-1-888-PDIC, send an e-mail to pad@pdic.gov.ph, or send a
private message at PDIC's official Facebook account,
www.facebook.com/OfficialPDIC.
When filing claims through e-mail, scanned copies or photo images
of the signed and accomplished Claim Form, evidence of deposit
(i.e., savings passbook, certificate of time deposit, etc.), and
one valid photo-bearing ID with the depositor's signature should be
attached to the e-mail. Scanned copy or photo image of the first
and last page of the passbook, or the front and back portion of the
certificate of time deposit should be sent as e-mail attachments.
For claims filed personally or via postal mail or courier service,
depositors are advised to enclose the accomplished and signed Claim
Form, original Savings Passbook and/or Certificate of Time Deposit
and photocopy of one (1) valid photo-bearing ID with depositor's
signature.
The depositors are further advised that additional documents and/or
original copy of documents submitted via e-mail may be required by
PDIC, as necessary, in the course of evaluation and processing of
claims.
The Claim Form can be downloaded from the PDIC website
http://www.pdic.gov.ph/files/New_PDIC_Claim_Form.pdf.The Claim
Form is free and there is no fee for filing deposit insurance
claims.
Depositors who are below 18 years old should mail or submit either
a photocopy of their Birth Certificate issued by the Philippine
Statistics Authority (PSA) or a duly certified copy issued by the
Local Civil Registrar. Representatives of claimants are required to
mail or submit an original copy of a notarized Special Power of
Attorney of the depositor or parent of a minor depositor. The
Special Power of Attorney template may be downloaded from the PDIC
website.
The last day for filing deposit insurance claims was moved to
November 13, 2020 from September 14, 2020 to allow the depositors
more time to prepare the required documents before filing their
claims, and to ensure that affected depositors are not
disenfranchised because of the enhanced community quarantine.
Under the PDIC Charter, depositors are given two years from bank
takeover to file deposit insurance claims with the PDIC. Rural Bank
of Maigo (Lanao del Norte), Inc. was taken over by the PDIC on
September 14, 2018 after it was ordered closed by the Monetary
Board of the Bangko Sentral ng Pilipinas on September 13, 2018.
Depositors who will not be able to file their deposit insurance
claims with PDIC on or before November 13, 2020 may file a claim
against the assets of the bank with the Liquidation Court (Regional
Trial Court - Branch 5, Iligan City, Lanao del Norte) under Sp.
Proc. No. 19-1788. Payment of these claims shall be subject to
availability of assets of the closed bank, legal priority and
approval of the Liquidation Court.
Depositors who have outstanding loans or payables to the bank will
be referred to the duly designated Loans Officer prior to the
settlement of their deposit insurance claims.
For more information, depositors may call the PDIC Public
Assistance Hotline at (02) 8841-41-41, or the Toll-free hotline
1-800-1-888-PDIC or 1-800-1-888-7342 during office hours.
Depositors may also send an e-mail to the PDIC Public Assistance
Department at pad@pdic.gov.ph or private message at the official
PDIC Facebook account, www.facebook.com/OfficialPDIC.
=================
S I N G A P O R E
=================
K.S. MARINE: Goes Into Creditors' Voluntary Liquidation
-------------------------------------------------------
Manifold Times reports that K.S. Marine underwent a creditors'
voluntary liquidation on October 23 after an extraordinary meeting,
stated notices posted on the Government Gazette on October 30.
According to Manifold Times, creditors of K.S. Marine are required
to submit particulars of their debts or claims in writing, by their
solicitors or personally, on or before Nov. 30, 2020, to the
Liquidator, otherwise, they will be excluded from the benefit of
any distribution made before such debts are proved.
The Liquidator may be reached at:
Farooq Ahmad Mann
c/o 3 Shenton Way #03-06C
Shenton House
Singapore
K.S. Marine's activities include the building and repair of ships,
tankers, and other ocean-going vessels, Manifold Times discloses
citing information from the Accounting and Corporate Regulatory
(ACRA) of Singapore.
ROBINSONS SINGAPORE: S-Reits' Exposure to DBS Group in Spotlight
----------------------------------------------------------------
The Business Times report that the fortunes of retail-focused
Singapore-listed real estate investment trusts (S-Reits) are
"closely tied" with that of beleaguered Robinsons Singapore's
owner, DBS Group Research said in a note on Nov. 2.
More brands under Dubai-based conglomerate Al-Futtaim, which owns
the department-store operator that's now in liquidation, may also
follow suit with closures, the research team noted, BT relays.
BT relates that the Al-Futtaim group's brands in the city-state
include household names such as Marks & Spencer, Zara and Mango.
Across its 23 brands in Singapore, Al-Futtaim has 111 retail
outlets, and about half (56) of these stores are located in
S-Reits' malls, DBS analysts Geraldine Wong, Derek Tan and Rachel
Tan said in a note on Nov. 2, according to BT.
The exit of Robinsons may not be a one-off occurrence among
Al-Futtaim's portfolio of brands, given the ongoing pressures due
to capacity and travel limits, the analysts added.
DBS said retail S-Reits with the largest exposure to the group by
store count are CapitaLand Mall Trust (CMT) with 15 outlets, and
Frasers Centrepoint Trust (FCT) with 11, according to the report.
CapitaLand also rents to nine Al-Futtaim brands in total, at its
Jewel Changi Airport and Ion Orchard.
Likewise, owners of malls in the Orchard shopping belt - such as
Starhill Global Reit with nine stores, Lendlease Global Commercial
Reit with seven and Mapletree Commercial Trust's (MCT) VivoCity
with eight - have close landlord-retailer relationships with the
group, said DBS, the report relays.
This comes as fashion retailers remain in consolidation mode. The
shift to work-from-home practices amid the coronavirus pandemic has
led to plunges in portfolio retail sales in fashion.
DBS thus believes most retail brands may look to rationalise their
footprint in 2021, and will likely carefully review any shop
closures on a store-by-store and brand-by-brand basis to maximise
profitability, BT states.
"Over time, we believe that the dominant malls across Singapore
will continue to attract tenants to maintain their occupancies in
the longer term," the research team wrote.
It favors CMT, FCT and Lendlease Reit, which hold "dominant" malls
with characteristics that allow them to attract tenants, keep
occupancies higher than the rest of the industry, and thus navigate
well past the evolving retail landscape.
BT notes that Robinsons on Oct. 30 confirmed it is shuttering for
good after more than a century in the business, weighed down by
losses in recent years. Some 175 employees will be affected by the
closure.
"While the timing came as a surprise to many, we note that
department-store formats have been struggling for years, and the
inability to establish an omni-channel presence has resulted in
department stores rationalising their footprint over time," DBS
wrote, BT relays.
Putting further pressure on their revenues is the Covid-19
pandemic, which has led to restrictions on department stores from
holding "atrium sales".
Following Robinsons' collapse, the spotlight is now also on
S-Reits' department-store exposure, which ranges between 7 per cent
and 21 per cent of gross revenues for Singapore, the report says.
Robinsons' department stores contributed about 7 per cent of
revenues for CMT, although the Reit's merger with CapitaLand
Commercial Trust is estimated to bring this exposure down to less
than 2 per cent, DBS said, adds BT.
Other department-store operators in the Republic include CK Tang
Limited's Tangs, which is a tenant of MCT, and mainboard-listed
Metro Holdings, which is a tenant of FCT and SPH Reit. Isetan
Singapore has no exposure among S-Reits, although it is itself
listed on the Singapore bourse.
Department stores usually stand as anchor tenants within malls,
given the large percentage of net lettable area they lease. The
exit of such anchor tenants may thus result in a "black hole" in
shopping centres, DBS noted.
"Landlords may have to get creative with the extra plot of space
with the option to either find another anchor tenant to take up the
entire space, or divide the retail plot into smaller ones with
rental upside potential and consider the overall positioning of the
asset going forward," the analysts, as cited by BT, said.
XIHE HOLDINGS: Xihe Capital and Subsidiaries Go Into Liquidation
----------------------------------------------------------------
Manifold Times reports that several notices were published in the
Government Gazette on October 30 regarding the voluntary
liquidation of Xihe Capital Pte Ltd and some of its subsidiaries
along with a Lim family related single purpose company Nan Guang
Maritime Pte Ltd.
Xihe Capital Pte Ltd and its subsidiaries are owned by the Lim
family, who are also the owners of the embattled Hin Leong
Trading.
Manifold Times relates that Lim Chee Meng, Director of Xihe
Capital, announced Hong Pian Tee would be appointed liquidator of
the company for the winding up process, as agreed by its members in
an Extraordinary General Meeting held on October 22.
According to the report, notices containing the same information
were also published for the following Xihe Capital subsidiaries:
- An Ding Shipping Pte Ltd
- An Rong Shipping Pte Ltd
- An Shun Shipping Pte Ltd
- An Wei Shipping Pte Ltd
- Da Hui Shipping Pte Ltd
- Da Shun Shipping Pte Ltd
- Nan Fang Maritime Pte Ltd
- Nan Jin Maritime Pte Ltd
- An Chiau Shipping Pte Ltd
- Xin Rui Shipping Pte Ltd
Lim Chee Meng also published the same notice for Nan Guang Maritime
Pte Ltd, a single purpose company owned by Lim family, the report
notes.
Creditors are required on or before Nov. 30, 2020, to send or email
their names and addresses and the particulars of their debts or
claims and the names and addresses of their solicitors (if any)
to:
Hong Pian Tee
c/o 21 Bukit Batok Crescent
#22-70 WCEGA Tower Singapore
E-mail: xhliq@pt-hong.com
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2020. All rights reserved. ISSN: 1520-9482.
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