/raid1/www/Hosts/bankrupt/TCRAP_Public/210104.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
Monday, January 4, 2021, Vol. 24, No. -3
Headlines
A U S T R A L I A
AUSTRALIA: Thousands of Businesses Face External Administration
C H I N A
CENTRAL CHINA REAL: Fitch Affirms 'BB-' LT IDR, Outlook Stable
CHINA: NYSE to Delist Chinese Telco Giants on U.S. Executive Order
KWG GROUP: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
I N D I A
ALOM POLY: CARE Lowers Rating on INR10cr LT Loan to C
APG SHIMLA: CARE Keeps D on INR46.8cr Loans in Not Cooperating
ASHVI DEVELOPERS: CARE Keeps D on INR250cr Loans in Not Cooperating
COUPLE INTERNATIONAL: CARE Keeps D Debt Rating in Not Cooperating
CREST ENGINEERING: Ind-Ra Moves B- Issuer Rating to Non-Cooperating
CROWN PROMOTERS: ICRA Keeps D on INR11cr Loans in Not Cooperating
DEWAN HOUSING: Likely to Announce New Owner By Jan. 14
DHANEE INT'L: CARE Keeps D on INR5.25cr Loans in Not Cooperating
DLS PAPERS: CARE Keeps D on INR11.22cr Loans in Not Cooperating
GOPINATH DAIRY: ICRA Keeps D on INR26cr Loans in Not Cooperating
HOSPITALITY EDUCATION: CARE Moves D Debt Rating to Not Cooperating
HUBTOWN BUS-ADAJAN: CARE Keeps D Debt Rating in Not Cooperating
HUBTOWN BUS-AHMEDABAD: CARE Keeps D Debt Rating in Not Cooperating
IVRCL CHANDRAPUR: ICRA Moves D Debt Rating to Not Cooperating
JAYARAM TEXTILES: CARE Moves D Debt Ratings to Not Cooperating
JPC INFRA: ICRA Keeps D on INR21cr Loans in Not Cooperating
KIMIYA ENGINEERS: ICRA Keeps D on INR40cr Loans in Not Cooperating
LANGTA BABA: Ind-Ra Assigns 'BB+' LT Issuer Rating, Outlook Stable
MADURAI KRISHNA: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable
MAHAPRABHU RAM: CARE Keeps D on INR6.5cr Loans in Not Cooperating
MAHESH LUMBER: ICRA Keeps D on INR30cr Loans in Not Cooperating
MEHTA API: Ind-Ra Affirms BB+ Long-Term Issuer Rating; Off RWN
NOMAX ELECTRICAL: ICRA Keeps C on INR17.7cr Loans in NonCooperating
RAJ CHICK: CARE Lowers Rating on INR11.99cr LT Loan to D
RAMSWAROOP MEMORIAL: CARE Cuts Rating on INR8.40cr Loan to C
RUNGTA IRRIGATION: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
SAM INDUSTRIAL: CARE Keeps C on INR10cr Loans in Not Cooperating
SHREEPATI CASTLE: ICRA Keeps D on INR50cr Loans in Not Cooperating
SONTHALIA RICE: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
SRINIVASA EDUCATIONAL: ICRA Cuts Rating on INR6.07cr Loan to D
STEFINA VITRIFIED: CARE Keeps D Debt Ratings in Not Cooperating
SUDHIR AGRO: ICRA Lowers Rating on INR20cr Loans to D
SUNDAR STEEL: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
TATYASAHEB KORE: CARE Lowers Rating on INR410cr Loans to D
S I N G A P O R E
EAGLE HOSPITALITY: Unitholders Vote Against Change of Manager
MIRACH ENERGY: Fails to Procure Exit Offer, Commences Winding Up
S O U T H K O R E A
SSANGYONG MOTOR: Mahindra & Mahindra in Talks to Sell Major Stake
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIA: Thousands of Businesses Face External Administration
---------------------------------------------------------------
Luke Grant at 2GB 873 reports that projections from SM Solvency
Accountants show nearly 16,000 businesses will enter external
administration in 2021 when economic support from the federal
government stops.
2GB relates that SM Solvency Accountants partner Brendan Nixon said
the financial support has been a double-edged sword with many
insolvencies backlogged.
"That will at least cause what we think to be a doubling of the
numbers . . . in 2021," the report quotes Mr. Nixon as saying.
But Mr. Nixon said the government has made changes to prevent many
businesses from being forced into a full liquidation.
"It's introducing a couple new insolvency types as of January 1: a
simplified liquidation process and a new debtor restructuring
process."
Mr. Nixon urged business owners to contact experts to understand
these new options for dealing with debts, 2GB relays.
=========
C H I N A
=========
CENTRAL CHINA REAL: Fitch Affirms 'BB-' LT IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Central China Real Estate Limited's
(CCRE) Long-Term Issuer Default Rating at 'BB-'. The Outlook is
Stable. Fitch has also affirmed the senior unsecured rating at
'BB-' and the ratings on CCRE's outstanding foreign-currency senior
unsecured bonds at 'BB-'.
CCRE's ratings are supported by its position as a leading
homebuilder in China's Henan province, with 12% market share, and
healthy leverage. However, CCRE remains less geographically
diversified with a smaller attributable contracted sales scale than
its 'BB' rated peers, which constrain the rating at the current
level.
KEY RATING DRIVERS
Stable Sales in 2020: Fitch expects CCRE to post annual contracted
sales of about CNY70 billion in 2020, compared with CNY72 billion
in 2019. CCRE's 11M20 sales fell by 4% to about CNY55 billion, as
Henan was more affected by the coronavirus pandemic than other
provinces. Fitch expects its contracted sales to rebound moderately
by about 5% in 2021, supported by solid demand in the province and
its products targeting first-time home buyers or upgraders.
Moderate Leverage: CCRE's leverage - defined by net debt/adjusted
inventory (including external guarantees) - rose to 42% by end-June
2020, from 35.1% at end-2019, as the company increased debt and
cash outflows to jointly controlled entities in 1H20. Fitch expects
the company to be flexible on its land acquisitions to contain its
leverage, as its land bank is sufficient for development over the
next four years.
Controlled Land Acquisitions: Management expects to spend less on
new land acquisitions in 2020 compared with 2019, as it aims to
control leverage and hold a land-bank life of two-to-three years.
Fitch expects CCRE to incur cash outflow of CNY16 billion on land
acquisitions, or 30% of Fitch’s expected sales receipts, in 2020.
Fitch expects its land acquisition expenditure this year to be
reduced by about 30% from the cash outflow of CNY23.6 billion on
land acquisitions in 2019.
Lower Gross Margin: Fitch expects CCRE's overall gross margin to
narrow to around 23% in 2020 and 21% in 2021, from 26% in 2019, due
mainly to the normalisation of industry margins as competition
increases. CCRE is less reliant on public land auctions but mainly
acquires land through acquisitions and other means such as cultural
tourism projects. CCRE's weaker margin is also compensated by its
higher sales efficiency, indicated by its consolidated contracted
sales/total debt of around 2x, compared with 'BB-' peers' ratio of
around 1x.
Geographical Concentration Constrains Rating: Fitch does not expect
CCRE to expand significantly outside Henan, which means that its
sales are likely to be more volatile than that of peers with a more
diversified land bank. The company has been developing residential
properties almost entirely in Henan for more than 28 years, and has
projects in 18 prefecture-level cities. CCRE's lower average
selling price (ASP) of CNY7,811 per sq m in 2019, compared with
peers' ASP of above CNY11,000/sq m, reflects its wide product
exposure, including projects in smaller cities.
Guarantees to Related Parties: CCRE provided a two-year CNY500
million financial guarantee to Henan Hongdao for a bank loan and
another guarantee on Jiayao Global's USD203 million in bonds due
2021. Henan Hongdao and Jiayao Global are owned by CCRE's chairman
and largest shareholder, and Henan Hongdao's subsidiary is a
supplier to CCRE. Fitch would consider negative rating action if
there is an increase in related-party transactions and financial
guarantees.
DERIVATION SUMMARY
CCRE's total contracted sales of CNY71.8 billion in 2019 are
comparable with those of 'BB-' rated peers, although it has
maintained a healthier financial profile. Yuzhou Group Holdings
Company Limited (BB-/Stable) had contracted sales of CNY75.1
billion in 2019 and KWG Group Holdings Limited (BB-/Stable) had
CNY86.1 billion.
CCRE's leverage ratio, measured by net debt/adjusted inventory
(including external guarantees), of 35%-40% is well below the 'B+'
and 'B' rated peers' ratio of 40%-60% and slightly lower than the
40%-50% range of 'BB-' rated peers.
CCRE had a weaker EBITDA margin (after adding back capitalised
interest) of 16.3% in 2019 than the 'BB-' peers' range of 20%-30%
as the company's sales were generated mostly from Tier 3-4 cities
in Henan province, which has relatively low ASP and profitability.
CCRE's weaker margin is however compensated by is higher sales
efficiency, indicated by its consolidated contracted sales/total
debt of around 2x, compared with around 1x for 'BB-' peers.
KEY ASSUMPTIONS
Fitch's key assumptions within Fitch's rating case for the issuer
include:
-- Total contracted sales by gross floor area to drop by 5% in
2020 and recover by 5% in 2021 and 2% in 2022
-- Average selling price for contracted sales to remain stable in
2020-2022
-- Gross profit margin (excluding capitalised interest) of 20%
23% in 2020-2022
-- Annual land acquisition budget to be about 30% of total
contracted sales proceeds in 2020-2022
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Contracted sales scale and geographical diversification
similar to that of 'BB' peers
-- Leverage, measured by net debt/adjusted inventory (including
external guarantees), persistently at 30% or below
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A decline in contracted sales for a sustained period
-- Leverage at 40% or above for a sustained period
-- EBITDA margin at below 15% for a sustained period
-- Any increase in financial guarantees to related parties on
non-property development businesses
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Ample Liquidity: The company had total cash of CNY31.8 billion
(including restricted cash of CNY6.2 billion) as of end-June 2020,
sufficient to cover short-term debt of CNY19.4 billion maturing
within one year.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
CHINA: NYSE to Delist Chinese Telco Giants on U.S. Executive Order
------------------------------------------------------------------
Max Zimmerman and Gregor Stuart Hunter at Bloomberg News report
that the New York Stock Exchange said it will delist three Chinese
corporations to comply with a U.S. executive order that imposed
restrictions on companies identified as affiliated with the Chinese
military.
China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong
Ltd. will be suspended from trading between Jan. 7 and Jan. 11, and
proceedings to delist them have started, according to a statement
by the exchange, Bloomberg relays.
Quantitative hedge fund managers including Renaissance Technologies
LLC, Dimensional Fund Advisors LP and Two Sigma Investments LP were
among the largest holders in these U.S. listings but the stakes
they held at the end of September were small, 13F filings show,
according to Bloomberg.
Bloomberg says the three Chinese companies have separate listings
in Hong Kong. All generate the entirety of their revenue in China
and have no meaningful presence in the U.S. except for their
listings there. Their shares are also thinly traded on the New York
Stock Exchange compared to their primary listings in Hong Kong,
making this NYSE delisting more of a symbolic blow amid heightened
geopolitical friction between the U.S. and China, the report
notes.
U.S. President Donald Trump signed an order in November barring
American investments in Chinese firms owned or controlled by the
military, in a bid to pressure Beijing over what it views as
abusive business practices, Bloomberg recalls. The order prohibited
U.S. investors from buying and selling shares in a list of Chinese
companies designated by the Pentagon as having military ties.
Bloomberg relates that the Chinese Foreign Ministry later accused
the U.S. of "viciously slandering" its military-civilian
integration policies and vowed to protect the country's companies.
Chinese officials have also threatened to respond to previous Trump
administration actions with their own blacklist of U.S. companies.
Bloomberg says the executive order has resulted in a series of
companies being removed from indexes compiled by MSCI Inc., S&P Dow
Jones Global Indices and FTSE Russell.
The U.S. Federal Communications Commission in May barred China
Mobile from operating in the U.S. In December, it ordered carriers
to remove equipment made by Huawei Technologies Co., and begun
looking into whether China Telecom should be allowed to operate in
the country, recalls Bloomberg. China Telecom's U.S. unit told the
FCC in a June 8 filing that it's an independent business based in
the U.S. and not subject to Chinese government control.
According to Bloomberg, global exchanges, including NYSE and Nasdaq
Inc., courted Chinese companies during the past decade as they
attempted to expand their IPO business, particularly in the
internet sector. In response, Hong Kong Exchanges & Clearing Ltd.
changed its rules in recent years to lure back listings, including
allowing share sales by companies with weighted voting rights --
strengthening the power of company founders at the expense of
weaker protections for minority investors.
Bloomberg relates that companies including e-commerce giants
Alibaba Group Holding Ltd. and JD.Com Inc., which already had
listings in New York, conducted secondary listings in Hong Kong in
the past two years as tensions between the U.S. and China
intensified on a range of issues including trade and the novel
coronavirus.
KWG GROUP: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed China-based KWG Group Holdings Limited's
Long-Term Issuer Default Rating at 'BB-'. The Outlook is Stable.
Fitch has also affirmed KWG's senior unsecured rating at 'BB-'.
KWG's ratings are supported by its quality land bank,
well-controlled leverage, consistently robust profitability, strong
liquidity and healthy maturity profile. The ratings are constrained
by the small scale of the company's property-development business
in terms of attributable contracted sales and revenue.
KEY RATING DRIVERS
Leverage Under Control: Fitch expects leverage, measured by net
debt/adjusted inventory on a proportional consolidated basis, to
stay below 45% based on the company's sales prospects and land-bank
replenishment strategy. KWG's leverage on an attributable basis was
35% at 1H20. The company increased its cash collection rate and
slowed its land acquisitions. The land replenishment rate, at 0.5x
contracted sales gross floor area (GFA) in 1H20, was lower than
1.6x in 2018 and 0.8x in 2019.
Robust Profitability: Fitch expects KWG's EBITDA margin, excluding
capitalised interest, to remain above 30% for the next two years.
Profitability of its development properties has remained strong
through business cycles and is one of the highest among Chinese
homebuilders. Protecting the margin is one of KWG's key objectives
and is achieved by maintaining above-average selling prices (ASP)
through consistently high-quality products.
The company's experienced staff have strong execution capability
and apply strict cost control. Moreover, KWG has a low unit land
cost of 32% of its ASP due to its strong foothold in Guangzhou,
where land prices have not risen as much as in other tier one
cities.
Small Scale; Weak Churn: KWG's 2019 total pre-sales rose by 32% yoy
to CNY86 billion, but only 64% of total sales were attributable to
the company. KWG's sales target in 2020 of CNY103 billion,
equivalent to an attributable sales scale of around CNY66 billion,
is lower than the over CNY90 billion attributable contracted sales
of 'BB' peers in 2019. KWG's sales efficiency, measured by
attributable contracted sales/gross debt, of 0.6x is also lower
than the 1.0x of most 'BB-' peers.
High Joint Venture Exposure: KWG had more than 70 joint ventures at
1H20, more than that of 'BB-' peers; of KWG's reported CNY86
billion in total 2019 contracted sales, only CNY34 billion was
consolidated. Joint ventures help reduce KWG's project-financing
costs, lower competition in land bidding and improve operational
efficiency. However, they also limit financial transparency. KWG
provided CNY29 billion of guarantees on its joint-venture debt at
end-2019, which is high compared with its consolidated net
inventory of CNY79 billion.
Diverse Coverage: KWG's land bank is diversified across China's
Greater Bay Area and the country's east and north. The company had
16 million square metres (sq m) of attributable land in 1H20,
spread across 40 cities in mainland China and Hong Kong, with an
average cost of CNY5,600/sq m. KWG has strong brand recognition in
its core cities, including Guangzhou and Foshan, and 51% of its
sellable resources are located in the Greater Bay Area, where it
has extensive experience and established operations.
DERIVATION SUMMARY
KWG's ratings are supported by its established homebuilding
operations in Guangzhou and strong high-tier cities across China.
Both KWG and Yuzhou Group Holdings Company Limited (BB-/Stable)
focus in the Yangtze River Delta and have similar ASP. They have
similar development property revenue size, but KWG's 2019
attributable contracted sales were CNY10 billion more than that of
Yuzhou. KWG maintained a much stronger margin than Yuzhou. KWG had
slightly higher proportionally consolidated leverage than Yuzhou
but a longer land-bank life as of 1H20 and higher implied cash
collection rate.
KWG has a lower non-controlling interest position than Ronshine
China Holdings Limited (BB-/Stable), giving it more room to
deleverage by lowering its project stake, if needed. However, KWG
has more joint venture projects and a lower consolidation ratio
than its peers, which limits its financial transparency.
KWG maintains one of the highest margins among Chinese homebuilders
throughout the cycle. Its EBITDA margin is comparable with that of
Logan Group Company Limited (BB/Stable) and is higher than that of
some 'BB' peers, including China Aoyuan Group Limited (BB/Stable)
and CIFI Holdings (Group) Co. Ltd. (BB/Stable). However, its has a
smaller attributable contracted sales scale and lower revenue than
these peers.
KEY ASSUMPTIONS
-- GFA sold to rise by 20% yoy in 2020, then drop by 1%-5% a year
in 2021-2023
-- ASP to gradually rise each year, reaching more than
CNY19,000/sq m in 2023 (2019: CNY17,503/sq m)
-- Land acquisition cost to rise by 8% yoy in 2020, then by 2% a
year in 2021-2023
-- Land acquired GFA is less than 1x of GFA sold in 2020-2023
-- Cash collection kept at 90% in 2020-2023
-- Selling, general and administrative expenses at 7%-9% of
revenue (2019: 5%)
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Attributable contracted sales and revenue scale comparable
with that of 'BB' rated peers
-- Net debt/adjusted inventory sustained below 40% (2019: 40%)
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
- Net debt/adjusted inventory above 50% for a sustained period
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: KWG has established and diversified funding
channels and good relationships with most offshore and onshore
banks. It has strong access to domestic and offshore bond markets.
KWG had available cash of CNY48.6 billion at end-1H20, enough to
cover the repayment of CNY33.4 billion in short-term borrowings and
outstanding land premiums. Fitch believes the group maintained
sufficient liquidity to fund development costs, land premium
payments and debt obligations due to its diversified funding
channels, healthy maturity profile and flexible land-acquisition
strategy.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=========
I N D I A
=========
ALOM POLY: CARE Lowers Rating on INR10cr LT Loan to C
-----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Alom
Poly Extrusions Limited (APEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 0.65 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from APEL to monitor the rating
vide e-mail communications/letters dated November 3, 2020, November
5, 2020 and November 9, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further, Alom
Poly Extrusions Limited has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. The rating on
APEL's bank facilities will now be denoted as CARE C; Stable;
ISSUER NOT COOPERATING/CARE A4; ISSUER NOT COOPERATING. Further due
diligence could not be conducted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in the rating takes into account the significant
deterioration in the financial risk profile of the company during
FY19. The company has reported operating as well as cash losses
during FY19 and the debt coverage indicators has deteriorated and
stood weak marked by below unity interest coverage in FY19.
Moreover, the ratings continue to remain constrained by small scale
of operation with weak profitability, exposure to volatility in
input prices, weak capital structure and debt coverage indicators
and intense competition in the industry.
However, the ratings continue to derive strength from experienced
promoters.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations with low profitability margins: The
scale of operations of the company remained small marked by total
operating income of INR41.10 crore (INR39.55 crore in FY18) with an
operating loss of INR0.36 crore (FY18: Operating profit of INR3.18
crore) in FY19. Further the company has reported cash loss of
INR2.26 crore in FY19 as against cash profit of INR1.66 crore in
FY18. The net worth base of the company also remained low at
INR2.75 crore as on March 31, 2019. The small size restricts the
financial flexibility of the company in times of stress and it
suffers on account of economies of scale.
* Volatility in input prices: Raw material (i.e. HDPE plastic
granules etc.) is the major cost driver for the company. Moreover,
the prices of the raw material are decided by the market dynamics.
Hence, the profitability margins of the company could get adversely
affected with any sudden spurt in the raw material prices.
* Weak capital structure and debt coverage indicators: The capital
structure of the company has deteriorated and remained weak marked
by overall gearing at 11.51x as on March 31, 2019. Further, the
debt coverage indicators also deteriorated and remained weak marked
by below unity interest coverage in FY19.
* Intensely competitive industry: The plastic pipes industry is
highly fragmented with a large number of small to medium scale
organized and unorganized players owing to low entry barriers with
no visible differentiators in product profile. High competition in
the operating spectrum and small size of the company limits the
scope for margin expansion.
Key Rating Strengths
* Experienced promoters: The key director, Mr. Ajay Prakash
Jhunjhunwala is having an experience of more than four decade in
same line of business looks after the day to day operations of the
company. He is supported by other directors and a team of
experience technicians, engineers etc.
Alom Poly Extrusions Limited (APEL) was incorporated in June 1990
and currently it is managed by Mr. Ajay Prakash Jhunjhunwala, Mr.
Shree Prakash Jhunjhunwala, Mr. Pravin Agarwal, Mr. Anil Kumar Seth
and Mr. Arnav Jhunjhunwala. The company is into manufacturing of
corrugated polyethylene pipes for sewage, drainage and cables
protection. The company is manufacturing of Double Wall Corrugated
(DWC) High Density Polyethylene (HDPE) Pipes in diameters upto 1000
MM. The manufacturing facility of the company is located at
Banganagar, West Bengal, with an installed capacity of 1000 metric
tonnes per annum (MTPA), has the latest plant and machinery and
fully equipped QA laboratory for testing and establishment of high
quality products.
APG SHIMLA: CARE Keeps D on INR46.8cr Loans in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of APG Shimla
University (APG) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 46.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 1, 2019, placed the
rating of APG under the 'issuer non-cooperating' category as APG
had failed to provide information for monitoring of the ratings.
APG continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 21, 2020, December 20, 2020, and
December 19, 2020. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the last time of rating October 1, 2019, the following strength
and weaknesses were considered:
* Ongoing delays in the servicing of debt obligation: There are
ongoing delays in the servicing of term debt obligation. The delays
are on account of weak liquidity as the society is unable to
generate sufficient funds on timely manner.
APG is an educational trust formed in November 2004 by Mr. Pramod
Goyal and his brother Mr. Rajesh Goyal with an objective to provide
education services. The campus is located in Shimla, spread over an
area of 88 acres with all modern facilities and latest available
technology. APG is providing post-graduation, graduation and
diploma courses like engineering, management, hotel management,
architecture, journalism, law, arts, fashion designing and mass
communication. APG has started its first academic session in
September 2012. In the academic year 2015-16 (refers to the period
July 1 to June 30), the total students enrolled were 630 and
cumulative student strength stood at 1,850, compared with
cumulative student strength of 1,339 for academic year 2014-15. On
account of stretched liquidity position (owing to continued losses
at the net level), the term loans of the trust were restructured,
in June 2015, wherein the society was given additional moratorium
to make repayment of the term loans availed. APG has four group
concerns namely Esteem Investment Pvt. Ltd. (a non-banking
financial company, incorporated in 1997), Invert Sugar India Pvt.
Ltd. (engaged in the manufacturing of invert sugar and caramel
color, incorporated in 1994), and Sponge Sales India Pvt. Ltd. and
Meenakshi Enterprises (both engaged in the trading of sponge iron
and incorporated in 1992 and 2000, respectively).
ASHVI DEVELOPERS: CARE Keeps D on INR250cr Loans in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ashvi
Developers Private Limited (ADPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 250.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 22, 2019, placed the
rating of ADPL under the 'Issuer Not Cooperating' category as ADPL
had failed to provide information for monitoring the rating. ADPL
continues to be non-cooperative despite repeated requests for
submission of information through emails dated December 1, 2020,
December 2, 2020 and December 3, 2020. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the ongoing delays in servicing of
the debt obligations by the company on account of its constrained
liquidity position.
Detailed Rationale & Key Rating Drivers
Key rating weaknesses
* Ongoing delays in servicing debt: The rating has been reaffirmed
on account of the ongoing delays in debt servicing of the company.
Liquidity: Poor- The Company's liquidity position is poor,
considering it has not been generating revenues for the last 3
years and has defaulted on its loans. The cash balances have
reduced from INR0.02 Cr in FY18 to INR0.01 Cr in FY19. The quick
ratio has remained at 0.12 for both the years.
Incorporated in 2006, Ashvi Developers Pvt. Ltd. (ADPL) along with
another company Atithi Builders and Constructors Pvt. Ltd. (ABCPL)
of Ariisto Realtors group is developing a real estate project
"Ariisto Sommet" (erstwhile named as Ariisto Solitaire) at
Goregaon, Mumbai. The group has developed an area of 68.12 lakh
square feet (lsf) till date which includes super-premium
residential towers, affordable housing townships, luxurious retail
spaces and TDR generating rehab projects in and around Mumbai.
COUPLE INTERNATIONAL: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Couple
International Private Limited (CIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.70 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 25, 2019 placed the
ratings of CIPL under the 'issuer non-cooperating' category as CIPL
had failed to provide information for monitoring of the rating.
CIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 30, 2020, December 2, 2020. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on November 25, 2019, the following were
the rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* On-going delays in meeting debt servicing: There are on-going
delays in relation to the servicing of principal instalment and
interest payments. The delays are on account of liquidity stress
and cash flow miss match arising out of delay in realization from
customers.
New Delhi based CIPL was incorporated in 1998. The company is
currently being managed by Mr. Rituraj Gupta and Ms. Kavita
Vardhan. CIPL is engaged in the manufacturing of garments and
accessories (scarfs). Its manufacturing plant is located in Noida,
Uttar Pradesh with a combined installed capacity of 70,000 pieces
per month as on March 31, 2017. CIPL is mainly an export oriented
unit with major export destination being USA, Australia, Japan,
France, Denmark, Spain, Canada, China and Indonesia. The major raw
materials viz., knitted & woven fabrics are procured from
manufacturers located in Tamil Nadu and traders located in Delhi.
CREST ENGINEERING: Ind-Ra Moves B- Issuer Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Crest Engineering
Solutions' 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:
-- INR 90 mil. Fund-based working capital facility migrated to
non-cooperating category with IND B- (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR 210 mil. Non-fund-based working capital facility migrated
to non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Nov. 19, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Crest Engineering Solutions is a partnership firm incorporated and
registered in Andhra Pradesh in June 2014. The firm has four
partners namely Madhusudhana Rao, Srinivas Chirukuri, Radha Krishna
Murthy Pentyala and Manasa Gowri Vasireddy. The firm is engaged in
the business of civil, electrical and pre-engineered building
contracts.
CROWN PROMOTERS: ICRA Keeps D on INR11cr Loans in Not Cooperating
-----------------------------------------------------------------
ICRA said the ratings for the INR11.00 crore bank facilities of
Crown Promoters and Developers (CPD) continue to remain under
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 6.30 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
the 'Issuer Not Cooperating'
category
Bank Guarantee 4.70 [ICRA]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
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.
Crown Promoters and Developers is a partnership firm and part of
Delhi based Crown group. The firm is developing an integrated
township project, 'Crown City' in Village Gharaunda district in
Karnal, Haryana. The township is spread over area of 50 acres and
primarily consists of residential plots. Apart from residential
plots, there are also areas marked for commercial development,
primary school and nursing home.
DEWAN HOUSING: Likely to Announce New Owner By Jan. 14
------------------------------------------------------
BloombergQuint reports that electronic voting to select the new
owner of Dewan Housing Finance Corp. has begun and financial
creditors hope to announce a winner by Jan. 14, said three people
with direct knowledge of the development.
BloombergQuint says the creditors are voting on six resolution
plans submitted to them. The first three are by Oaktree Capital
Management, Piramal Group and Adani Group - all three have offered
to buy the entire loan book.
Piramal Group and Adani Group also submitted supplementary plans
seeking to buy standalone retail and wholesale loan portfolios,
respectively. Hong Kong-based investor SC Lowy's resolution plan
submitted in November offers to buy the corporate loan portfolio,
BloombergQuint relates.
While all resolution plans are up for voting, Piramal Group and
Oaktree Capital Management bids will be closely watched by
creditors, the report notes. Both have been increasing their bids
since Dec. 14 and now offer INR37,000-38,000 crore to buy DHFL's
loan assets.
That's an about 65-70% haircut for creditors. DHFL, according to
information available on its website, owes financial creditors
INR87,000 crore, BloombergQuint discloses.
In case of Oaktree Capital, which increased its offer by INR1,700
crore on Dec. 24, the financial creditors have accepted the
revision and will factor that in their voting decisions, the people
quoted earlier said on the condition of anonymity since details are
not public, BloombergQuint recalls.
BloombergQuint awaits response to queries emailed to the Reserve
Bank of India-appointed administrator R Subramaniakumar and lead
lender State Bank of India.
In a letter submitted to the creditors on Dec. 27, Oaktree Capital
had warned against disregarding its amended offer, failing which
the process would be open to litigation. Similarly, Piramal Group
wrote to lenders on Dec. 29, asking them not to consider the
amendments and warning them about potential litigation, according
to BloombergQuint.
The financial creditors include SBI, Union Bank of India, Punjab
National Bank and Bank of India. The list also includes
institutional and retail non-convertible debenture holders as well
as fixed depositors, BloombergQuint notes.
Once a resolution plan receives the majority of votes, representing
66% of financial creditors by value, it will be confirmed as the
highest bidder. The creditors will then submit the highest bidder's
plan to the National Company Law Tribunal for final nod, before
implementing it, the report says.
In the event that one of the two major bidders litigate against the
approval of a plan, the resolution may see some delays,
BloombergQuint states.
About DHFL
Dewan Housing Finance Corporation Limited (DHFL) operates as a
housing finance company in India. The company's deposit products
include fixed deposit products for individuals, and trusts and
institutions; and corporate, recurring, and Wealth2Health deposits
products. It also offers home loans, which include home improvement
loans, home construction loans, home extension loans, plot
loans/land loans, plot and construction loans, and balance transfer
of home loans, as well as home loans for the self-employed; small
and medium enterprise loans, including property term, plant and
machinery, medical equipment, and business loans; mortgage loans,
such as loans against property, loan for purchase of commercial
premises, and loan through lease rental discounting; and NRI home
loans.
As reported in the Troubled Company Reporter-Asia Pacific, Deccan
Herald said the Mumbai bench of the National Company Law Tribunal
(NCLT) on Dec. 2, 2019, admitted a petition by the Reserve Bank of
India (RBI) seeking bankruptcy proceedings to resolve DHFL. The
move came in after the Reserve Bank on Nov. 29, 2019, made an
application for bankruptcy proceedings to resolve the credit and
liquidity crisis at the company, which became the first financial
sector player being sent for bankruptcy. RBI appointed R
Subramaniah Kumar as the company's administrator. Financial
creditors to DHFL have submitted claims worth INR86,892 crore
against the mortgage lender, BloombergQuint disclosed.
DHANEE INT'L: CARE Keeps D on INR5.25cr Loans in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dhanee
International (DHI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 1, 2019, placed the
rating of DHI under the 'issuer non-cooperating' category as DHI
had failed to provide information for monitoring of the ratings.
DHI continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated December 21, 2020, December 20, 2020, and
December 19, 2020. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the last time of rating October 1, 2019, the following strength
and weaknesses were considered:
* Instances of delays in the servicing of debt obligation: There
were instances of delay in the servicing of debt obligation. The
delays are on account of weak liquidity as the society is unable to
generate sufficient funds on timely manner.
Dhanee International (DHI) is a proprietorship firm established in
2006 by Mrs. Aruna Bindra. DHI is engaged in the manufacturing of
readymade garments at its manufacturing facility located at
Ludhiana, Punjab which has a total installed capacity of 4.5 Lakh
pieces of textiles per annum. The firm is also engaged in trading
of fabric (constituted 40% of the total sales in FY14). The product
line of the firm mainly comprises cotton fabric, acrylic fabric,
polyester fabric, sinker fabric, t-shirts, trousers, shirts, lowers
etc. DHI ventured into export business majorly w.e.f April, 2014
and the same constituted 78% of the total sales in FY15 (prov.).
The firm sells its products to various wholesalers located in UAE
and also supplies the same to wholesalers and retailers located in
Punjab. DHI mainly requires cotton fabric, acrylic fabric and
polyester fabric as raw materials which are procured directly from
the suppliers based in Punjab. Besides this, the proprietor is also
engaged in another group concern namely, Fashion Flo, a
proprietorship firm (boutique) established in 1993.
DLS PAPERS: CARE Keeps D on INR11.22cr Loans in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of DLS Papers
Private Limited (DLSPPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.22 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 14, 2019 placed the
ratings of DLSPPL under the 'issuer non-cooperating' category as
DLSPPL had failed to provide information for monitoring of the
rating. DLSPPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated November 30, 2020, December 2, 2020. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on November 14, 2019, the following were
the rating weaknesses and strengths:
(Updated for the information available from the Registrar of
Companies).
Detailed description of the key rating drivers
Key Rating Weaknesses
* On-going delays in meeting debt obligations: There had been
instances of delays in relation to the servicing of principal
instalment and interest payments on account of liquidity stress in
the past. Further, in line with RBI guidelines in wake of COVID-19
pandemic, the company has availed moratorium for its facilities
provided by the bank.
Muzzafarnagar, Uttar Pradesh, based, DLS Paper Private Limited
(DLSPPL) was incorporated in March, 2013 and started its commercial
operation in October, 2015 by Mr. Laxman Singh and Mr. Dinesh
Kumar. The company is being managed by Mr. Laxman Singh, Mr. Dinesh
Kumar, Mr. Aamir Ahmed and Mr. Arshad Ali. The company is engaged
in manufacturing of craft paper at its manufacturing facility
located in Muzzafarnagar with installed capacity of 80 tonnes per
day as on March 31, 2018. The product manufactured by DLS is used
for manufacturing corrugated boxes and the same is sold to
manufactures of packaging materials and dealers in NCR region. The
main raw materials for the company are waste paper and waste
corrugated boxes and the same is procured from scrap traders
located in NCR and Muzaffarnagar region.
GOPINATH DAIRY: ICRA Keeps D on INR26cr Loans in Not Cooperating
----------------------------------------------------------------
ICRA said the ratings for the INR26.00 crore bank facilities of
Gopinath Dairy Products 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
---------- ----------- -------
Fund based- 0.50 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain
under 'Issuer Not Cooperating'
category
Term Loan 11.50 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain
under 'Issuer Not Cooperating'
category
Unallocated 14.00 [ICRA]D ISSUER NOT COOPERATING;
limit 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.
Incorporated in 1994, GDPPL was operating as an industrial
warehouse in Navi Mumbai till 2009. Between 1994 and 2009, the
company was operating as a repacking cum warehousing for Kodak
India Private Limited (for cameras and camera rolls), Saregama
India Limited (for CDs and cassettes) and Voltas Limited (for
chemicals). The unit measures about 1,268 square meters and is
taken on 99 years sub lease from Maharashtra Industrial Development
Corporation (MIDC) by the promoters In 2011, the promoters
entered into a ten-year job-work agreement with Reliance Dairy
Foods Limited (RDFL), which is a step-down subsidiary of the
financially strong Reliance Industries Limited, for processing raw
milk into pasteurized milk and milk products such as cottage
cheese, curd and clarified butter to be sold under the brand name
Reliance Dairy Life.
HOSPITALITY EDUCATION: CARE Moves D Debt Rating to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Hospitality Education Services International (HES) to Issuer Not
Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term Bank 11.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from HES to monitor the ratings
vide email communications/letters dated December 16, 2020 December
10, 2020, December 7, 2020, August 20, 2020, August 18, 2020 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not provided the requisite information for monitoring
the ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating. The rating on HES's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised by taking into account non-availability
of requisite information and no due-diligence conducted due to
non-cooperation by Hospitality Education Services International
with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk. The rating continues to
remain constrained on account of on-going delays in servicing of
interest obligation due to stressed liquidity position.
Detailed description of the key rating drivers
Key Rating Weaknesses
* On-going Delays: There have been instances of over utilizations
of working capital limits for more than consecutive 30 days and
on-going delays in the servicing of interest obligations due to
stressed liquidity position. Client has availed moratorium as
extended by banker in line with RBI's guidelines in wake of
pandemic.
Hospitality Education Services International (HES) was established
in 2002 by Mr. Rohit Bhatia as a proprietorship firm to provide
education in hotel management. HES are running its institutes under
the brand name of RIG Institute of Hospitality & Management since
2007. HES are also engaged in providing consultancy to various
hospitality management colleges like Hotel and Tourism Management
Institute (HTMi), Switzerland. HES have campuses at three locations
that is Greater Noida, Dwarka and Rohini. The courses offered by
HES are specifically designed for hotel management and recognized
by Indira Gandhi National Open University (IGNOU).
HUBTOWN BUS-ADAJAN: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hubtown Bus
Terminal (Adajan) Private Limited (HBTAdPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 41.67 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
(Term Loan) under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 25, 2019 placed the
rating of HBTAdPL under the 'issuer non-cooperating' category as
HBTAdPL had failed to provide information for monitoring of the
rating. HBTAdPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated December 15, 2020. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating has been reaffirmed on account of ongoing delays in debt
servicing obligations of the company as confirmed by the lender.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: The rating has been reaffirmed
on account of ongoing delays in debt servicing obligations of the
company as confirmed by the lender.
Hubtown Bus Terminal (Adajan) Pvt Ltd (HBTAdPL) is a special
purpose vehicle formed by Hubtown Ltd. (formerly known as Akruti
City Ltd) with an objective to develop bus terminal at Adajan,
Surat, Gujarat, as per the concession agreement with Gujarat State
Road Transport Corporation. The Hubtown group is in business of
developing real estate since more than two decades, commencing with
the incorporation of Akruti Nirman Private Limited on February 16,
1989 which was subsequently converted into a public limited company
on April 11, 2002. Company was renamed to Akruti City Limited in
2008 and further renamed to Hubtown Ltd in 2012.
HUBTOWN BUS-AHMEDABAD: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hubtown Bus
Terminal (Ahmedabad) Private Limited (HBTAhPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 100.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
(Term Loan) under ISSUER NOT COOPERATING
category
Short Term Bank 27.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
(Bank Guarantee) under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 25, 2019 placed the
rating of HBTAhPL under the 'issuer non-cooperating' category as
HBTAhPL had failed to provide information for monitoring of the
rating. HBTAhPL continues to be non-cooperative despite repeated
requests for submission of information through emails, phone calls
and a letter/email dated December 15, 2020. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating).
Detailed description of the key rating drivers
At the time of last rating on October 25, 2019 the following were
the rating weaknesses
Key Rating Weaknesses
* Ongoing delays in servicing of debt: The rating has been
reaffirmed on account of the ongoing delays in debt servicing of
the company.
Hubtown Bus Terminal (Ahmedabad) Pvt Ltd (HBTAhPL) is a special
purpose vehicle formed by Hubtown Ltd. (formerly known as Akruti
City Ltd) with an objective to develop a bus terminal at Geeta
Mandir, Ahmedabad Gujarat, as per the concession agreement with
Gujarat State Road Transport Corporation (GSRTC). The Hubtown group
is in the business of developing real estate since two decades. The
group commenced operations with the incorporation of Akruti Nirman
Private Limited (ANPL) in February 1989. ANPL was subsequently
converted into a public limited company in April, 2002 renamed as
Hubtown Ltd. in 2012. Gujarat State Road Transport Corporation
(GSRTC) floated a tender for redevelopment of the bus terminal at
GeetaMandir (Ahmedabad) in 2007. The Hubtown group was allotted
development rights of the said bus terminal project to be executed
through HBTAPL.
IVRCL CHANDRAPUR: ICRA Moves D Debt Rating to Not Cooperating
-------------------------------------------------------------
ICRA Ratings has migrated the rating on bank facilities of IVRCL
Chandrapur Tollways Limited (ICTL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 313.99 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating moved to the 'Issuer Not
Cooperating' category
Rationale
The rating is based on limited cooperation from the entity since
the time it was last rated in June 2016. As part of its process and
in accordance with its rating agreement with ICTL, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. However, despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite cooperation and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, the company's rating has been moved to the
"Issuer Not Cooperating" category.
The rating further takes into account the continued delays in
servicing its term loan obligations. ICTL has been classified
as non-performing asset (NPA) by the lenders.
Key rating drivers
Credit challenges
* Delays in debt servicing: Continuous delays in servicing its term
loan obligations. ICTL has been classified as NPA by the lenders.
* Lower than anticipated traffic: With lower than expected
multi-axle traffic flow on account of muted coal mining activity on
one hand and exemption to passenger and state transport vehicles on
the other, the overall toll collections remained lower than
anticipated resulting in stretched liquidity position.
* Revenue loss on account of toll exemption: The toll exemption on
cars, small private vehicles and state transport buses on
Maharashtra state highways has resulted in revenue loss for ICTL.
The company raised claim of INR44.7 crore for the period December
2016 to August 2020 towards loss on account of toll exemption
against which it has received INR10.3 crore till date.
Incorporated in October 2010, IVRCL Chandrapur Tollways Limited
(ICTL) is a Special Purpose Vehicle (SPV) promoted by IVRCL Limited
for four-laning and improvement of Karanji-Wani-Ghuggus-Chandrapur
section of MSH- 6 & 7 of 85.11 km in Yavatmal and Chandrapur
District of Maharashtra. The project is developed on Design, Build,
Operate, Transfer basis. The project was earlier envisaged to have
a capital outlay of INR735.99 crore. However, owing to delay in
execution of the project the total cost has increased to INR882.48
crore, primarily on account of increase in interest during
construction. The revised cost is funded with a debt of INR414.70
crore, positive grant of INR199.50 crore and promoter's
contribution of INR268.28 crore.
JAYARAM TEXTILES: CARE Moves D Debt Ratings to Not Cooperating
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Jayaram
Textiles (JT) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.36 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Short Term Bank 0.18 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from JT to monitor the rating
vide e-mail communications dated July 2020 to October 2020 and
numerous phone calls. However, despite CARE's repeated requests,
the firm has not provided the requisite information for monitoring.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of best available information which however, in
CARE's opinion is not sufficient to arrive at fair rating. The
rating on Jayaram Textiles bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING/CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on October 11, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weakness
* On-going delays in servicing the debt obligations: The banker
informed that there were on-going delays in servicing the principal
and interest commitments in the term loan.
* Small scale operations: The firm has been operational for more
than three decades, the scale of operations remained small marked
by total operating income INR37.40 crore in FY19 and net worth base
of INR25.47 crore as on March 31, 2019.
* Declining profitability margins: The PBILDT margin of the firm
has been consistently declining year-on-year and further declined
significantly by 419 bps to 11.16% in FY19 compared to 15.35% in
FY18 due to increase in cost of sales on back of increase in
employee cost, power and fuel costs. Furthermore, the PAT margin of
the firm declined by 348 bps to 1.13% in FY19 compared to 4.61% in
FY18 due to decrease in PBILDT levels resulting in under absorption
of financial expenses and depreciation provisions.
* Deterioration in debt protection metrics: The debt coverage
parameters deteriorated marked by interest coverage ratio stood at
1.85x in FY19 as compared to 2.03x in FY18 on account of decrease
in interest and finance charges. TD/GCA of the firm stood weak at
10.26x in FY19 as against 9.35x in FY18 due to decrease in cash
accruals.
* Working capital intensive nature of operation: The operating
cycle remained elongated although improved to 194 days in FY19 from
231 days in FY18. The inventory period stood elongated on account
of high stock of raw materials. The firm extends its creditors
period to suppliers upto 1-10 days while the firm allows the
creditor period to its customers upto 15-25 days.
* Intense competition in a highly fragmented industry structure:
The textile industry in India is highly fragmented and dominated by
a large number of independent and small unorganized players leading
to high competition among industry players. Thus JT is exposed to
significant competition in the market.
Key Rating Strengths
* Vast experience of promoters for more than three decades in
weaving business: The promoters of Jayaram Textiles have more than
thirty years of experience in the textile industry. All the
promoters are actively involved in managing the day-to-day
operations of the firm. Mr. P.M.Thirumoorthy looks after the
operations of yarn manufacturing and suzler looms while Mr.
P.M.Balasubramaniam and Mr. P.M.Ganeshmoorthy look after operations
of power looms.
* Increase in total operating income: The total operating income of
the firm has improved during review period from INR32.73 crore in
FY18 to INR37.40 crore in FY19 on account of increase in number of
orders executed.
* Comfortable capital structure: The capital structure of the firm
improved and stood comfortable marked by overall gearing at 0.72x
in FY19 as compared to 0.77x in FY18 on account of decrease in
total debt and increase in networth with accretion of profits. The
debt equity of the firm also improved and stood at 0.21x in FY19 as
against 0.29x in FY18.
Jayaram Textiles (JT) was established as a partnership firm in 1985
by Mr. P.M.Thirumoorthy, Mr. P.M.Balasubramaniam and Mr.
P.M.Ganeshmoorthy (brothers). The firm was started as a fabric
manufacturing unit with an initial capacity of 78 power looms in
Tirupur, Tamil Nadu. Since then, the firm has expanded its weaving
operations to the current levels. The firm procures raw materials
from Tamil Nadu, Andhra Pradesh, Telangana and Karnataka. The
present installed capacity is 12,000 spindles, 150 power looms and
32 suzler looms. The firm produces yarn in counts of 32's, 40's and
60's which is used for its own fabric production. The fabric
produced by JT finds application in linen, curtains etc. The firm
sells the fabric to a number of distributors and agents in the
markets like Tirupur, Jaipur, Ahmedabad, Mumbai, Kolkata and New
Delhi, who in turn sells the fabric to linen and garment
manufacturing units. The firm has availed COVID-19 moratorium from
March 2020 to August 2020 for its rated facilities.
JPC INFRA: ICRA Keeps D on INR21cr Loans in Not Cooperating
-----------------------------------------------------------
ICRA said the rating for the INR21.00 crore bank facilities of Jpc
Infra Private Limited (JIPL) continues to remain under 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 20.80 [ICRA]D ISSUER NOT COOPERATING;
Rating continues to remain under
the 'Issuer Not Cooperating'
category
Unallocated 0.20 [ICRA]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
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 2006, JPC owns a commercial property in Sector 63
Noida (~20 km from Central Delhi) with a total leasable area of
~12,000 sq. mt. out of which, currently ~8,600 sq ft has been
leased to a group company, Standard Type Foundry Pvt Ltd (STF),
which operates a Toyota service centre under the name 'Uttam
Toyota' in the building. The ongoing lease agreement was signed in
October 2011 for seven years with a lock-in period for the entire
tenure. Escalation of 18.75% in the rental is applicable every
alternate year.
KIMIYA ENGINEERS: ICRA Keeps D on INR40cr Loans in Not Cooperating
------------------------------------------------------------------
ICRA said the rating for the INR40.00 crore bank facilities of
Kimiya Engineers Private Limited (KA) continues to remain under
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 10.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain
under 'Issuer Not Cooperating'
category
Non-fund 30.00 [ICRA]D ISSUER NOT COOPERATING;
Based Limits 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
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.
Kimiya Associates (KA) was established as a proprietary firm by Mr.
Anurag Verma in 2003, for project management, design, fabrication
and construction for architectural space frames and pre-engineered
buildings. KA was acquired by Kimiya Engineers Private Limited
(KEPL) on October 15, 2010 along with all the assets and
liabilities by issuing equity shares to Mr. Anurag Verma.
Currently, KEPL is involved in turnkey civil construction projects
for various public and private bodies.
LANGTA BABA: Ind-Ra Assigns 'BB+' LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sri Langta Baba
Steels Private Limited (SLBSPL) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR275 mil. Fund-based limit assigned with IND BB+/Stable/IND
A4+ rating;
-- INR75 mil. Non-fund-based limit assigned with IND A4+ rating;
and
-- INR85.50 mil. Term loan due on June 2026 assigned with IND
BB+/Stable rating.
KEY RATING DRIVERS
The ratings reflect the company's moderate scale of operations. The
company's revenue grew 7.92% yoy to INR1,888.14 million due to
increased demand and sales volumes. The company recorded revenue of
INR1,018.84 million till end-6MFY21.
The ratings are also constrained by the company's average EBITDA
margin. The margin expanded slightly to 6.79% in FY20 (FY19: 6.65%)
due to a slight fall in the company’s manufacturing and
administrative expenses. The company's return on capital employed
stood at 14.8% for FY20 (FY19: 14.3%).
The ratings are, however, supported by SLBSPL's significant
presence in the steel industry in Jharkhand, Bihar, West Bengal and
Odisha. It has an existing dealer network of over 600 dealers that
helps group entities reach out to different market sections and
segments.
The ratings are also supported by the company's healthy credit
metrics. In FY20, the company's interest coverage (operating
EBITDA/gross interest expense) improved to 3.06x (FY19: 2.30x) and
net leverage (net debt/operating EBITDA) to 2.29x (2.37x) due to an
increase in the absolute EBITDA to INR128.25 million (INR116.41
million). However, Ind-Ra believes the company's metrics and
margins will deteriorate slightly in FY21 owing to the COVID-19 led
lockdown as well as the inherent risk of volatility in the prices
of raw materials and finished goods.
Liquidity Indicator - Adequate: The company's average use of its
fund-based limits stood at 84% during the 12 months ended October
2020. The company had availed ad-hoc facility starting October
2019-January 2020 to meet the working capital requirements. The
company holds an inventory of about five months, making it
susceptible to inventory write-downs. During FY20, the net working
capital cycle elongated to 80 days (FY19: 14 days) owing to an
increase in inventory holding period to 180 days (85 days). The
cash flow from operations was positive at INR47.57 million in FY20
(FY19: INR99.09 million). Cash and cash equivalents stood at
INR67.58 million at FYE20 (FYE19: INR36.80 million). The company
availed of the Reserve Bank of India-prescribed moratorium from one
bank. It has also availed the COVID-19 emergency credit facility of
INR25 million; and working capital term loan of INR54.5 million
under the guaranteed emergency credit line.
RATING SENSITIVITIES
Positive: A positive rating action could result from a substantial
rise in the revenue and the EBITDA margin, along with an
improvement in the overall credit metrics, with the interest
coverage exceeding 3.5x, on a sustained basis.
Negative: A negative rating action could result from a decline in
the scale of operations, leading to deterioration in the overall
credit metrics, with the interest coverage reducing below 2.5x, on
a sustained basis.
COMPANY PROFILE
Incorporated in 2005, SLBSPL is based in Jharkhand and engaged in
the manufacturing of mild steel billets and thermo-mechanically
treated bars. It has an installed capacity of 90,000 metric tons
per annum for producing billets; rolling mill facility of 90,000
metric tons per annum to produce thermo-mechanically treated bars
and slag crushing of 7,200 metric tons per annum. It sells its
products under the brand name TUFCON.
MADURAI KRISHNA: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Madurai Krishna
Network Private Limited's (MKNPL) Long-Term Issuer Rating at 'IND
B'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based limit affirmed with IND B/Stable rating;
-- INR4 mil. Non-fund-based limit affirmed with IND A4 rating;
and
-- INR30 mil. Term loan due on March 2024 affirmed with IND B/
Stable rating.
KEY RATING DRIVERS
The affirmation reflects MKNPL's continued small scale of operation
even as the revenue grew to INR99.24 million in FY20 (FY19:
INR86.03 million), driven by the addition of new customers.
Liquidity Indicator – Poor: MKNPL's average maximum use of its
fund-based limits was around 98% during the 12 months ended October
2020 with multiple instances of overutilization. The entity's cash
flow from operations improved, though remained at negative INR8.67
million in FY20 (FY19: negative INR43.27 million), on account of
lower working capital requirements. MKNPL's free cash flow also
improved to negative INR10.65 million in FY20 (FY19: negative
INR50.87 million). Moreover, the net cash cycle elongated to 218
days in FY20 (FY19: 139 days) on account of an increase in average
receivable days. Additionally, the cash and cash equivalents stood
at INR1.56 million in FYE20 (FYE19: INR6.48 million). However, the
entity does not have any capital market exposure and relies on
banks and financial institutions to meet its funding requirements.
The entity availed of the Reserve Bank of India-prescribed
moratorium over April-August 2020.
MKNPL's EBITDA margin remain modest as it operates in the services
sector, even as it improved slightly to 21.15% in FY20 (FY19:
20.35%) on account of the lower cost of operations. The return on
capital employed was 8.2% in FY20 (FY19: 7.5%).
The ratings also factor in the company's moderate credit metrics
with the interest coverage (operating EBITDA/gross interest
expenses) of 2.89x in FY20 (FY19: 2.32x) and the net leverage
(adjusted net debt/operating EBITDA) of 2.44x (3.25x). The
improvement in the credit metrics in FY20 was driven by a decline
in the total debt, resulting from the lower utilization in the
working capital limit and the schedule repayment of long-term debt,
and the consequent reduction in interest expense. Furthermore, the
entity reported a higher absolute EBITDA of INR20.99 million in
FY20 (FY19: INR17.51 million).
The ratings are, however, supported by the promoter experience of
two decades in the media and entertainment industry.
RATING SENSITIVITIES
Positive: Further revenue growth along with an improvement in the
liquidity position will be positive for the ratings.
Negative: A decline in the revenue, leading to deterioration in
the entire credit metrics, and/or liquidity, will be negative for
the ratings.
COMPANY PROFILE
MKNPL is engaged in the distribution of cable networks and has
three satellite channels in Tamil Nadu. The companies also have its
own brand Krishna Digital.
MAHAPRABHU RAM: CARE Keeps D on INR6.5cr Loans in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahaprabhu
Ram Mulkh Hi-Tech Educational Society (MRMH) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 15, 2019, placed the
rating of MRMH under the 'issuer non-cooperating' category as
Mahaprabhu Ram Mulkh HI Tech Education Society had failed to
provide information for monitoring of the rating. MRM continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 17, 2020, December 16, December 15, 2020 and December 14,
2020. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on October 15, 2019, the following were
the rating strengths and weaknesses.
Key Rating Weaknesses
* On-going delays in debt servicing: There were ongoing delays in
the repayment of the term loan obligation and there are instances
of over utilization of overdraft limit for more than 30 days.
Mahaprabhu Ram Mulkh Hi-Tech Educational Society (MRMH) got
registered under the Society Registration Act- 1860 in 2005 and is
currently being managed by Mr. Roshan Lal Jindal, Mrs Ritu Jindal,
Mr. Mukesh Jindal, Mrs. Tamanna Jindal, Mrs Saroj Garg, Mr.
Rajneesh Jindal and Mr. Rohit Sharma as the trustees. The society
was formed with an objective to provide higher education in the
field of engineering, computer science and management. The society
has established five separate colleges, namely, Shree Ram Mulkh
Institute of Management and Technology, Shree Ram Mulkh Institute
of Engineering and Technology, Shree Ram Mulkh College of Technical
Education, Shree Ram Mulkh College of Education and Shree Birkha
Ram College of Education. All the colleges of MRMH are in Village
Kohra-Bhura (Bhurewala), Haryana. The different courses offered are
duly approved by AICTE (All India Council of Technical Education).
MRMH is also affiliated to Kurukshetra University, Kurukshetra
(KUK).
MAHESH LUMBER: ICRA Keeps D on INR30cr Loans in Not Cooperating
---------------------------------------------------------------
ICRA said the rating for the INR30.00-crore bank facility Mahesh
Lumber Private Limited continues to remain under 'Issuer Not
Cooperating' category. The Long-term and short-term rating is
denoted as "[ICRA] D/[ICRA] D ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 10.00 [ICRA]D: ISSUER NOT COOPERATING;
Limits Rating continues to remain in
the 'Issuer Not Cooperating'
category
Non-fund 20.00 [ICRA]D: ISSUER NOT COOPERATING;
Based Limits 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.
Mahesh Lumber Private Limited (MLPL) is a privately owned company
that was incorporated in September 2014. The company is managed by
Mr. Ashok Mittal and is a part of the Mahesh Group, which has been
trading timber since 1952. The company trades particularly in
German Pine Timber. The timber is procured either directly from
Germany or from various third party importers in India.
MEHTA API: Ind-Ra Affirms BB+ Long-Term Issuer Rating; Off RWN
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Mehta API Private
Limited's (MAPL) Long-Term Issuer Rating of 'IND BB+' with a Stable
Outlook while resolving the Rating Watch Negative (RWN).
The instrument-wise rating actions are:
-- INR250 mil. Fund-based limits* affirmed; Off RWN with IND BB+
/Stable/ IND A4+ rating;
-- INR305 mil. Non-fund-based limits* affirmed; Off RWN with
IND BB+/Stable/ IND A4+ rating; and
-- INR5.50 mil. (increased from INR5.39 mil.) Term loan due on
October 2023 affirmed; Off RWN with IND BB+/Stable rating.
*The working capital limits are fully interchangeable and should
not exceed INR320 million.
The resolution of the RWN follows MAPL's resumption of raw material
imports from China and a low impact of the COVID-19 pandemic on its
operations, as evinced by the yoy lower revenue of INR530 million
in 6MFY21 (6MFY20:INR603.70 million).
KEY RATING DRIVERS
The affirmation reflects MAPL's continued medium scale of
operations, as reflected by the revenue of INR1,123 million in FY20
(FY19: INR1,200 million). The revenue declined in FY20 due to
decreased lower product realizations. The company posted a yoy
lower revenue of INR530 million in 6MFY21 (6MFY20: INR603.70
million) due to the COVID-19 led logistical disruption. However,
the agency expects the company to post stable FY21 revenue as the
COVID-19 led disruptions have now normalized. FY20 financials are
provisional in nature.
The ratings are also constrained by MAPL's customer-concentration
risk, given a single customer contributed 39.70% to the total
revenue in 7MFY20. The ratings also remain constrained by the
highly-regulated nature of the pharmaceutical industry.
The ratings are further constrained by MAPL's modest EBITDA
margins, which contracted to 4.76% in FY20 (FY19: 9.08%) due to
increased raw material cost. The absolute EBITDA also reduced to
INR53 million in FY20 (FY19: INR109 million). The company's return
on capital employed stood at 7.4% in FY20 (FY19: 14.6%).
Liquidity Indicator - Adequate: MAPL's average working capital
limit utilization was 15% for the 12 months ended October 2020. Its
fund flow from operations and cash flow from operations remained
positive in FY20. The latter improved to INR730 million during FY20
(FY19: INR28 million) due to a decrease in the working capital
requirement. The cash and cash equivalent stood at INR32 million in
FY20 (FY19: INR4.82 million). The net working capital cycle
improved to 61 days in FY20 (FY19: 95 days) on account of a
decrease in its inventory days.
The ratings are also supported by MAPL's continued comfortable
credit metrics. Its net financial leverage (total adjusted net
debt/operating EBITDA) improved to 0.95x in FY20 (FY19: 1.60x) due
to lower debt of INR83.34 million (INR179.08) owing to the
scheduled repayment of term loan and the low usage of working
capital limits. Its interest coverage (operating EBITDAR/gross
interest expense) remained comfortable, despite deteriorating to
3.23x in FY20 (FY19: 5.21x) owing to the lower EBITDA. Ind-Ra
expects the company's credit metrics to improve in FY21 on account
of a further reduction in the total debt.
The ratings continue to draw support from the promoters' experience
of five decades in the pharmaceutical industry. In addition, MAPL
has decade-long associations with reputed clients, namely Cadila
Pharmaceuticals Limited, IPCA Laboratories Limited and Strides
Arcolab Ltd.
RATING SENSITIVITIES
Positive: A significant improvement in the revenue and the EBITDA
margin, leading to a further improvement in the credit metrics and
the liquidity position, on a sustained basis, could lead to a
positive rating action.
Negative: Any substantial decline in the scale of operations,
and/or the EBITDA margin, leading to deterioration in the liquidity
and credit metrics, with the interest coverage reducing below 2x,
on a sustained basis, could lead to a negative rating action.
COMPANY PROFILE
MAPL manufactures and trades active pharmaceutical ingredients and
intermediates. It is managed by Harshadrai P Mehta.
NOMAX ELECTRICAL: ICRA Keeps C on INR17.7cr Loans in NonCooperating
-------------------------------------------------------------------
ICRA said the ratings for the INR17.79 crore bank facilities of
Nomax Electrical Steel Pvt Ltd continue to remain in the 'Issuer
Not Cooperating' category. The ratings are denoted as "[ICRA]C
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 17.33 [ICRA]C ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain
under 'Issuer Not Cooperating'
category
Fund based- 0.46 [ICRA]C ISSUER NOT COOPERATING;
Untied Limits 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.
Promoted by Md. Moinuddin Mondal, the company was initially
established in 1981 as a proprietorship firm in the name of
'Eastern Electricals'. It was converted into a private limited
company in 2007 and was renamed Nomax Electrical Steel Private
Limited. The company manufactures Cold Rolled Grain Oriented (CRGO)
steel laminations, which are primarily used in making transformers,
stabilisers, etc. The company carries out its operations from its
two units located at Dakhin Hathiara, Kolkata.
RAJ CHICK: CARE Lowers Rating on INR11.99cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Raj
Chick Farms (RCF), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.99 CARE D Revised from CARE B;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of
RCF is on account of ongoing delays in servicing the interest
obligation of Cash Credit facility. The firm has availed RBI
moratorium period during March 2020 to August 2020.
Key Rating Sensitivities
Positive Rating Factors
* Delay free track record of more than 90 days
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delays in meeting of debt obligations: Raj Chick Farms
Private Limited has been facing liquidity issues from past few
months, due to which the firm is unable to service the interest
obligation on cash credit facility. There are ongoing delays in
servicing the interest in cash credit facility.
Key Rating Strengths
* Long track record of operations and experience of the promoters
for more than five decades in poultry farm: RCF was established in
the year 2002 as a private limited company and has a long track
record of operations for more than 18 years in the poultry
business. The promoter, Mr. Omprakash Khurana has more than 5
decades of experience and Mr. Guarav Khurana has more than 2
decades of experience in Poultry farming. Due to long term presence
and experienced promoters in the segment, the company has
established good relationships with suppliers and customers.
Andhra Pradesh based, Raj Chick Farms (RCF), was incorporated in
2002 as a Private Limited Company by Mr. Guarav Khurana and Mr.
Omprakash Khurana. The Company is engaged in farming of egg laying
poultry birds (chickens) and trading of eggs and cull birds and its
registered office is at Banjarahills, Hyderabad, Telangana with
installed capacity of 1,00,000 number of birds per annum.
RAMSWAROOP MEMORIAL: CARE Cuts Rating on INR8.40cr Loan to C
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Shri
Ramswaroop Memorial Institute Of Management and Computer
Application (SRMIMCA), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.40 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 12, 2019 placed the
ratings of SRMIMCA under the 'issuer non-cooperating' category as
SRMIMCA had failed to provide information for monitoring of the
rating. SRMIMCA continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter/email dated December 10, 2020, December 16, 2020. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised by taking into account non-availability
of information and no due-diligence conducted due to
non-cooperation by SRMIMCA with CARE'S efforts to undertake a
review of the rating outstanding. CARE views information
availability risk as a key factor in its assessment of credit risk.
Further, the ratings continue to remain constrained owing by modest
scale of operations, presence in a highly regulated education
industry and increasing competition from numerous schools between
private players. The ratings, however, continue to take comfort
from experienced promoters of the society, comfortable SBID margins
and Comfortable capital structure.
Detailed description of the key rating drivers
At the time of last rating on December 12, 2019, the following were
the rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest scale of operations: The total operating income of the
society remained modest for the past three financial years as i.e.
FY14-FY16. Further, the corpus fund also remains moderate. The
modest scale limits the financial flexibility of the society.
* Presence in a highly regulated education industry: SRMIMCA is
operating in a highly regulated industry. In addition to University
Grants Commission (UGC), the educational institutions are regulated
by respective State Governments with respect to number of
management seats, amount of tuition fee charged for government
quota and management quota giving limited flexibility to the
institutions.
* Increasing competition from numerous schools between private
players: Educational sector in India exhibits intense competition
within the sector. Furthermore, it is imperative that in order to
maintain or to increase enrollment ratio any college is required to
have spacious infrastructural as per UGC & AICTE guidelines. All
these factors make this industry highly susceptible to the steep
competition.
Key Rating Strengths
* Experienced promoters of the society: SRMIMCA was established
during December 1998, by Mr. Pankaj Agarwal and Mrs Pooja Agarwal.
Both of them have experience of around two decades into education
industry. SRMIMCA has an operational track record of around two
decades and hence, it has been able to build a good reputation in
the education field in Lucknow.
* Comfortable SBID margins: The SBID margin improved during FY16 by
360 bps and stood comfortable while PAT margins also improved and
stood at comfortable level. Gross cash accruals marginally declined
but remained comfortable at INR11.93crore during FY16. SBID and
Surplus margin stood at 33.22% and 11.66% in FY16 as against 29.62%
and 8.75% in FY15.
* Comfortable capital structure: The capital structure of the
society remained comfortable as marked by debt equity and overall
gearing ratio which stood below unity as on past three balance
sheet dates ending March 31,'14-16'. Overall gearing ratio stood at
0.33x in FY16 as against 0.63x in FY15.
Lucknow (Uttar Pradesh)–based SRMIMCA was established as an
educational society in December, 1998 with an objective to impart
technical education by Mr. Pankaj Agarwal and his wife Mrs. Pooja
Agarwal. SRMIMCA manages the Shri Ramswaroop Memorial Group of
Professional Colleges (SRMGPC) which offers a range of
undergraduate and postgraduate programmes in engineering, computer
applications, and management.
RUNGTA IRRIGATION: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Rungta Irrigation
Limited's (RIL) Long-Term Issuer Rating of 'IND B-(ISSUER NOT
COOPERATING)'. The Outlook was Negative.
The instrument-wise rating actions are:
-- INR140 mil. Fund-based working capital limits is withdrawn;
and
-- INR80 mil. Non-fund-based working capital limits is withdrawn.
KEY RATING DRIVERS
The bank loan ratings have been withdrawn as the agency has
received a no-dues certificate from the rated facilities' lenders.
Consequently, the Long-Term Issuer Rating has been withdrawn too.
Ind-Ra will no longer provide rating or analytical coverage for
RIL.
COMPANY PROFILE
RIL manufactures, designs, assembles, and markets pipe-based
sprinkler irrigation systems. It has manufacturing facilities in
Ghaziabad (Uttar Pradesh), Puducherry and Jamshedpur (Jharkhand).
SAM INDUSTRIAL: CARE Keeps C on INR10cr Loans in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sam
Industrial Enterprises Limited (SIEL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term Bank 2.50 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 19, 2019 placed the
ratings of SIEL under the 'issuer non-cooperating' category as SIEL
had failed to provide information for monitoring of the rating.
SIEL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 30, 2020, December 2, 2020. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on November 19, 2019 the following were
the rating weaknesses and strengths:
(Updated for the information available from the Registrar of
Companies).
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: The scale of operations of the company
remained small as marked by total operating income and gross cash
accrual of INR31.86rore and INR0.31crore for FY19 as against
INR47.79 crore and INR0.41 crore in FY18. The small scale limits
the company's financial flexibility in times of stress and deprives
it of scale benefits.
* Thin profitability margins, leveraged capital structure and weak
coverage indicators: The profitability margins of the company
remained thin for the past three financial years, i.e., FY17 –
FY19 owing to tender driven nature of business. The PBILDT and PAT
margins stood at 8.61% and 0.47% for FY19 as against 6.65% and
0.47% in FY18. Further, the capital structure of the company stood
leveraged marked by overall gearing ratio stood at 1.16x as on
March 31, 2019 as against 1.24x as on March 31, 2018. The coverage
indicators of the company marked by interest coverage ratio and
total debt to GCA stood weak at 1.15x and 60.17x for FY19 as
against 1.22x and 47.19x in FY18.
* Working capital intensive nature of operations: The high working
capital requirements are largely met through bank borrowings. The
operations of the company are highly working capital intensive
marked by an average operating cycle of 200 days in FY19 as against
160 days in FY18. The company sells products to various government
agencies and schools from whom the company receives payments on
delivery of the books to its customers. Due to procedural delays at
the customer end, there is usually a delay in recovery of debtors.
This resulted into an average collection period of around 124 days
for FY19 as against 99 days in FY18. The
company normally receives credit period of around 40-55 days from
its suppliers. The company is required to maintain adequate raw
material inventory of paper, ink, lubricants, packing material etc.
for smooth running of its printing operations. This resulted into
an average inventory period of 124 days for FY19 as against 86 days
in FY18.
* Competitive nature of industry: The printing and publication
industry is characterized by a high level of fragmentation and
regional concentration. Indian printing industry is characterized
as fragmented & competitive with very little differentiation in
terms of service offering. SIEL faces direct competition from
various organized and unorganized players in the market. There are
a number of small and regional players who are located in and
around area and catering to the same market which has limited the
bargaining power of the company and has exerted pressure on its
margins. The profits margins are likely to be under pressure in the
medium term.
Key Rating Strengths
* Long track record of operations coupled with experienced
director: The business is currently being managed by Mr. Amit Kaka,
Mr. Puneet Kumar Mittal and Mr. Nitin Kumar Mittal. Mr. Amit Kaka
has an experience of almost two decades in this printing and
publication business through his association with Kaka Publication
Private Limited, Kaka Sons Private Limited and SIEL. Mr. Puneet
Kumar Mittal and Mr. Nitin Kumar Mittal have an experience of more
than two decades each in printing and publishing industry through
their association with SIEL.
Noida (Uttar Pradesh) based, SAM Industrial Enterprises Limited
(SIEL) was incorporated in 1992 as SIRIUS Industrial Enterprises
Limited. In 1995 the name changed to the present one. The company
was promoted by Mr. Amit Kaka. . SIEL is engaged in designing,
printing and binding of books such as text books, guides for 10th
and 12th standard, sample papers, brochures and other printed
education material for various boards like Board of High School and
Intermediate Education Uttar Pradesh (U.P. Board), National Council
of Educational Research and Training (NCERT) and Jharkhand Academic
Council (Jharkhand Board). The company procures the raw material
such as paper, ink, chemical, lubricants, and packing material
locally from traders and distributors. It gets the order through
tendering and bidding process. The company has two associate
concerns namely Kaka Publication Private Limited and Kaka Sons
Private Limited promoted by Mr. Amit Kaka. Both the companies are
engaged in similar line of business.
SHREEPATI CASTLE: ICRA Keeps D on INR50cr Loans in Not Cooperating
------------------------------------------------------------------
ICRA said the ratings for the INR50.00 crore bank facilities of
Shreepati Castle 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- 50.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based TL 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.
Shreepati group is promoted by Mr. Rajendra Chaturvedi. The group
is engaged in residential real estate projects, primarily located
in South Mumbai with majority of projects primarily through
redevelopment. The business has been carried out through a number
of group companies by the partners, formed primarily for tax
purpose. Shreepati Castle (SC) is a redevelopment project and
includes rehabilitation of 445 tenants.
SONTHALIA RICE: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sonthalia Rice
Mill (SRM) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR56.81 mil. Long-term loan due on March 2024 assigned with
IND BB-/Stable rating;
-- INR60 mil. Fund-based limits assigned with IND BB-/Stable
rating; and
-- INR70 mil. Non-fund-based limits assigned with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect SRM's small scale of operations despite an
improvement in its revenue to INR449.31 million in FY20 (FY19:
INR376.68 million) due to increased capacity utilization to 72%
(62%). The firm booked a top-line of INR250 million till October
2020. FY20 financials are provisional in nature.
SRM's average EBITDA margin stood at 7.24% in FY20 (FY19: 6.82%)
and its return on capital employed was 11% (8.3%). SRM's gross
interest coverage (operating EBITDA/gross interest expenses)
deteriorated to 1.33x in FY20 (FY19: 1.45x) on account of an
increase in the interest expenses and the net financial leverage
(adjusted net debt/operating EBITDA) improved to 3.55x (5.15x) due
to the reduced working capital utilization and the scheduled
repayment of long-term debt.
Liquidity Indicator - Poor: SRM's average maximum utilization of
fund-based limits was 73.16% for the 12 months ended October 2020.
The company had cash and cash equivalents of INR7.92 million at
FYE20 (FYE19: INR2.34 million) against a total debt of INR121.24
million (INR134.66 million). The company's cash flow from
operations stood negative at INR10.76 million in FY20 (FY19:
negative INR8.59 million) due to unfavorable changes in the working
capital. However, the net cash cycle improved to 50 days in FY20
(FY19: 57 days) on account of the shorter inventory holding period.
The company does not have any capital market exposure and relies
on banks and financial institutions to meet its funding
requirements. The company availed the Reserve Bank of
India-prescribed moratorium over March-August 2020.
However, the ratings are supported by the partners' experience of
around three decades in the rice processing and milling industry.
RATING SENSITIVITIES
Positive: A substantial increase in the scale of operations, along
with an improvement in the overall credit metrics and the liquidity
profile, with the interest coverage exceeding above 2.0x, all on a
sustained basis, would lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics and/or deterioration in the
liquidity will lead to a negative rating action.
COMPANY PROFILE
SRM is a partnership firm started operation in 2008 with an
installed capacity of 4MT/ hour. In the subsequent year, it
increased its capacity to 8MT/hour. With steady sales and increased
market demand, the company decided to take up a substantial
expansion and hence set-up a captive power plant of 0.6MW in 2016
and expanded its production capacity by another 10 MT/hour. Thus,
the total installed capacity of the firm stands at 18 MT/hour.
SRINIVASA EDUCATIONAL: ICRA Cuts Rating on INR6.07cr Loan to D
--------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Srinivasa Educational Trust (SET), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 6.07 [ICRA]D; downgraded from
[ICRA]B+ (Stable)
Unallocated 4.18 [ICRA]D; downgraded from
facility [ICRA]B+ (Stable)
Rationale
The rating downgrade takes into account the recent delays in debt
servicing by SET. ICRA understands from the feedback and
interaction with the lenders that the trust has missed term loan
repayment in November 2020. Due to the COVID pandemic, the fee
collections of the schools under the trust have been adversely
impacted. This has resulted in subdued cash flow from operations to
meet its debt service obligations in a timely manner.
Key rating drivers and their description
Credit strengths
NA
Credit challenges
* Delays in debt servicing: There has been delay in debt servicing
of term loans by SET. Due to the COVID pandemic, the fee
collections of the schools under the trust have been adversely
impacted. This has resulted in subdued cash flow from operations to
meet its debt service obligations in a timely manner.
* Ongoing debt-funded capital expenditure: The trust has an ongoing
debt-funded capex towards expansion of the CBSE school which is
also likely to keep pressure on the cash flows. Its ability to
commence operations and achieve the desired admission levels in the
new projects, in a timely manner, with limited cost overrun remains
the key rating monitorable.
Liquidity position: Poor
SET's liquidity is poor on account of stretched cash flow from
operations due to delay in fee collection, amidst huge debt
repayment obligations.
Rating sensitivities
Positive triggers - The rating could be upgraded if there is
improvement in the fees collection thereby improving the adequacy
of cash flow from operations to service the debt obligations in a
timely manner on a sustained basis.
Established in 1992, SET is one of the well-established education
institutions offering primary, secondary and higher education in
Krishnagiri, Tamil Nadu. It was established by Dr. S.
Thirumalmurugan and the trust runs four educational institutions
located in Uthangiri, Krishnagiri, at present. For the academic
year (AY) 2019-2020, SET has a total student strength of about
6,680 students as against 6,667 students in AY2018-2019.
STEFINA VITRIFIED: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Stefina
Vitrified Private Limited (SVPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 28.65 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 30, 2020 placed the
ratings of SVPL under the 'issuer non-cooperating' category as SVPL
had failed to provide information for monitoring of the ratings as
agreed to in its Rating Agreement. SVPL continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated December 1, 2020,
December 2, 2020 and December 7, 2020. In line with the extant SEBI
guidelines, CARE has reviewed the ratings on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of key rating drivers
At the time of last rating on January 30, 2020, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
* Ongoing delays in debt servicing: As per banker interaction,
there are on-going delays in debt servicing for its bank facilities
availed by the company.
Morbi (Gujarat) based SVPL was incorporated in January 2016 by Mr.
Manojkumar Vilpara, Mr. Hiteshbhai Vilpara and Mr. Rajeshbhai
Vilpara. It has set up its plant in Morbi for manufacturing of
vitrified tiles of various sizes varying from 600 mm x 600 mm to
1600 mm x 4800 mm and operates with an installed capacity of 65,100
metric tonnes per annum. Commercial production of SVPL commenced
from March 2017 onwards.
SUDHIR AGRO: ICRA Lowers Rating on INR20cr Loans to D
-----------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Sudhir
Agro Oils Private Limited (SAOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT-Fund 4.00 [ICRA]D ISSUER NOT COOPERATING;
Based/CC Rating downgraded from [ICRA]B+
(Stable) and continues to
remain under 'Issuer Not
Cooperating' category
ST-Non 16.00 [ICRA]D ISSUER NOT COOPERATING;
Fund Based Rating downgraded from [ICRA]A4
and continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade reflects delays in Debt Servicing
The rating is based on limited information on the entity's
performance since the time it was last rated in December 2020. 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 Sudhir Agro Oils 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
* Delays in debt servicing: The banker has given negative feedback
stating that the account has been classified under NPA as on date
and recovery proceedings are going on.
Incorporated in 1993, SAOPL is engaged in the trading of edible
oils. It trades primarily in Crude Palm Oil, Mustard Oil, Cotton
Seed Oil, Sunflower Oil and Soya Oil. The company does not have any
warehousing facility for storage of traded products. The promoter
Mr. Prem Kumar's family has been involved in the edible oil trading
business for three generations.
SUNDAR STEEL: Ind-Ra Assigns 'B+' LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sundar Steel
Industries (SSI) a Long-Term Issuer Rating of 'IND B+'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR145 mil. Fund-based working capital limit assigned with
IND B+/Stable/IND A4 rating;
-- INR35 mil. Proposed fund-based working capital limit* assigned
with Provisional IND B+/Stable/Provisional IND A4 rating;
-- INR80 mil. Non-fund-based working capital limit assigned with
IND A4 rating;
-- INR40 mil. Term loan due on July 2024 assigned with
IND B+/Stable rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by SSI to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect SSI's medium scale of operations, as indicated
by revenue of INR2,198.7 million in FY20 (FY19: INR2,577.7
million). The revenue declined owing to disruptions in operations
in March 2020, due to the COVID-19 led lockdown. The company
reported a revenue of INR1,000 million in 8MFY21. Ind-Ra expects
the revenue to be lower in FY21 than FY20, due to the COVID-19-led
disruptions that are likely to exert pressure on the overall demand
and supply of the traded products. FY20 numbers are provisional in
nature.
Liquidity Indicator - Poor: SSI's average use of the fund-based
working capital limits was 98% over the 12 months ended November
2020. There was an 11-day delay in paying the invoice value of the
bills discounted through channel financing facilities during
October-November 2020 and devolvement of a letter of credit for
more than 30 days during May-June 2020, due to the stretched
receivables resulting from the COVID-19 led economic disruptions.
The company's cash and cash equivalents stood at INR3.7 million at
FYE20 (FYE19: INR1.7 million). The cash flow from operations turned
positive to INR27.5 million in FY20 (FY19: negative INR70.9
million), mainly due to the realization of incentives from
Rashtriya Ispat Nigam Limited ('IND BBB'/Negative) and provisioning
for tax deducted at source in FY20. Consequently, the free cash
flow turned positive to INR21.5 million in FY20 (FY19: negative
INR76.5 million). The company has scheduled debt repayment of
INR11.54 million in FY21, which will be met from internal accruals.
SSI had availed the Reserve Bank of India-prescribed debt
moratorium for few of its bank facilities over March-August 2020.
The ratings also factor in SSI's modest EBITDA margins with a
return on capital employed of 9.5% in FY20. The margins remained
range bound at 0.8%-1.1% during FY17-FY20, due to the trading
nature of the business. Ind-Ra expects the margins to remain flat
or increase marginally in FY21.
The ratings also reflect the company's modest credit metrics as
indicated by interest coverage (operating EBITDA/gross interest
expense) of 1.3x in FY20 (FY19: 1.4x) and net leverage (total
adjusted net debt/operating EBITDAR) of 8.2x (10.3x). The
improvement in the credit metrics was due to an increase in EBITDA
to INR24.7 million in FY20 (FY19: INR21.4 million), partially
offset by an increase in interest costs owing to an increase in
working capital borrowings. Of the total debt exposure of INR205.02
million at FYE20, 84% comprised of the short-term working capital
limits in the form of cash credit, letter of credit and channel
financing facilities, 13% of term debt availed for business purpose
and purchase of vehicles, and 3% of interest-bearing unsecured
loans from the proprietor's relatives.
However, the ratings are supported by the proprietor's experience
and the company's operational track record of over three decades in
the trading of steel products, leading to established relationships
with its customers and suppliers.
RATING SENSITIVITIES
Positive: An improvement in the overall liquidity profile, along
with an increase in the revenue and the profitability, leading to
the interest coverage increasing above 1.7x, all on a sustained
basis, would be positive for the ratings.
Negative: Any substantial decline in the operating profitability
and/or a further deterioration in the overall liquidity position,
leading to the interest coverage reducing below 1.1x would be
negative for the ratings.
COMPANY PROFILE
SSI is a Vishakapatnam-based proprietorship concern engaged in the
trading of thermo-mechanically treated bars, wire rod coils,
rounds, scrap, structural like beams, flats, angles and channels of
Rashtriya Ispat Nigam, Steel Authority of India Limited ('IND
AA-'/Negative), JSW Steel Limited ('IND AA'/Negative) and Steel
Exchange India Ltd. Sundar Kumar Mittal is the promoter.
TATYASAHEB KORE: CARE Lowers Rating on INR410cr Loans to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Limited
(STKWSSKL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 248.36 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE B+; Stable
Long Term/Short 410.00 CARE D/CARE D; ISSUER NOT
Term Bank COOPERATING Rating continues
Facilities to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+;
Stable/CARE A4
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 1, 2019, placed the
rating(s) of STKWSSKL under the 'issuer non-cooperating' category
as STKWSSL had failed to provide information for monitoring of the
rating. STKWSSKL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter dated December 16, 2020. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in the ratings is on account of ongoing delays in the
debt servicing.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delay in debt servicing: As per the banker feedback, there are
ongoing delays in the debt servicing due to stretched liquidity
position.
STKWSSKL was incorporated by Late Tatyasaheb Kore in September,
1955 under 'The Maharashtra Co-operative Societies Act 1960' as
Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Cooperative Society
Limited. The name was subsequently changed to the present one.
STKWSSKL is a part of the Kolhapur (Maharashtra) based 'Warana
Group', which has diverse business interests like education,
co-operative bank (Warana Sahakari Bank Limited), co-operative
poultry farm and processing and manufacturing of dairy products
housed under Shree Warana Sahakari Dudha Utpadak Prakriya Sangh
Ltd.
=================
S I N G A P O R E
=================
EAGLE HOSPITALITY: Unitholders Vote Against Change of Manager
-------------------------------------------------------------
Uma Devi at The Business Times reports that after the proposed
change of a manager for the beleaguered Eagle Hospitality Trust
(EHT) failed to get the green light from securityholders on
Dec. 30, there is uncertainty about the next step forward.
BT relates that securityholders of EHT, which is a stapled trust
comprising Eagle Hospitality Real Estate Investment Trust (EH-Reit)
and the currently dormant Eagle Hospitality Business Trust (EH-BT),
had voted on four interconditional resolutions at an extraordinary
general meeting (EGM).
One resolution failed to get the necessary votes to pass: a
proposed base fee supplement in order to pay a new Reit manager -
SCCPRE Hospitality Reit Management - at least US$4.5 million per
year, BT says.
This extraordinary resolution required at least 75 per cent of the
vote share to be in favor, but only garnered 56.3 per cent, the
report notes.
According to the report, associate professor of accounting at the
NUS Business School Mak Yuen Teen said that although it was
understandable that SCCPRE wanted some assurance of fees given the
work that is going to be involved in resuscitating the firm,
unitholders were "understandably fed up".
"I guess unitholders just couldn't stomach an increase in base fees
after all that has happened. Perhaps if it was a proposal for (a)
higher performance based fee, they may have responded differently,"
the report quotes Prof Mak as saying.
SCCPRE is part of SC Capital, a real estate private-equity group.
Chairman of SC Capital Suchad Chiaranussati said the group accepts
the outcome of the EGM, and respects the decisions made by all
securityholders. He added that SC Capital will continue to support
EHT's trustee, DBS Trustee, where possible, BT relays.
The other three resolutions were ordinary resolutions and only
required more than half of the vote share to be passed.
BT says the resolutions for the appointment of SCCPRE as the new
Reit manager of EH-Reit and the trustee manager of EH-BT each had
56.6 per cent of total votes in favour, while the resolution on the
proposed issuance of up to 140 million new stapled securities got
56.2 per cent of total votes in favour.
Because one of the four interconditional resolutions was not
carried, a fifth resolution to delist EHT and wind up both trusts
was tabled. This resolution received only 11.6 per cent of the vote
share - far short of the required minimum of 75 per cent.
Following the conclusion of the EGM, EHT has no manager. Eagle
Hospitality Reit Management is being removed pursuant to a
directive issued by the Monetary Authority of Singapore (MAS), BT
states.
EHT's statement, filed on SGXNet following the EGM, warned that EHT
has insufficient resources to operate as a going concern.
DBS Trustee, as trustee of EH-Reit, said it would consider
available options with its advisers, but that such options are
"limited".
In a press release sent out after the EGM, EHT's sponsor Urban
Commons reiterated its previous proposal to recapitalise EHT
through a rights issue. It asked that it be allowed to table plans
it had devised since August, BT reports.
According to the report, Prof Mak of NUS said it is possible that
creditors will apply to put EHT under judicial management.
He also said unitholders may consider civil liability action under
the Securities and Futures Act (SFA) for possibly false or
misleading information in EHT's prospectus.
In response to queries from The Business Times on the regulatory
implications for EHT, MAS said DBS Trustee has the "fidiciary duty
to act in the best interest of unitholders". The trustee will also
remain responsible for the affairs of EH-Reit.
MAS added that it expects the trustee to provide timely updates to
unitholders on the next steps for the Reit, the report adds.
About Eagle Hospitality
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust (Eagle H-REIT) and Eagle Hospitality Business Trust (Eagle
H-BT). Eagle HT has a well-diversified portfolio of primarily
freehold, internationally branded hotels, across 11 major U.S.
metropolitan statistical areas.
As reported in the Troubled Company Reporter-Asia Pacific in August
2020, independent auditors KPMG have issued a disclaimer of opinion
in respect of the financial statements of EHT, which released the
independent auditors' report on Aug. 28. The auditors had been
tasked to audit the financial statements of EH-BT, EH-Reit and its
subsidiaries, and of EHT. The audit covered their respective
financial positions as at Dec. 31, 2019, and their fund movements
from April 11 till that date. In the report dated Aug. 14, 2020,
the auditors said that they "have not been able to obtain
sufficient appropriate audit evidence to provide a basis for an
audit opinion on these financial statements". And thus, the
auditors do not express an opinion on the accompanying financial
statements of EH-BT and consolidated financial statements of
EH-Reit Group and EHT.
MIRACH ENERGY: Fails to Procure Exit Offer, Commences Winding Up
----------------------------------------------------------------
Kelly Ng at The Business Times reports that mainboard-listed Mirach
Energy is taking steps to wind up the company as it is unable to
procure a reasonable exit offer, the oil and gas company announced
in a Singapore Exchange filing on Dec. 30, 2020.
It is obtaining quotes from legal advisers and liquidators for
costs and steps involved in the process, BT says.
Mirach Energy had in October been granted a three-month extension
to submit an exit-offer proposal after certain shareholders
expressed their collective intention to make an offer, BT recalls.
BT relates that the company said it will apply for a further
extension to conclude the winding-up process.
Mirach Energy Ltd. explores for oil and natural gas, and offers
technical oilfield advice, enhanced oil recovery, project
management, and mud logging services.
=====================
S O U T H K O R E A
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SSANGYONG MOTOR: Mahindra & Mahindra in Talks to Sell Major Stake
-----------------------------------------------------------------
Yonhap News Agency reports that Mahindra & Mahindra Ltd. is in
talks with an investor for the sale of its majority stake in
SsangYong Motor Co. to reorganize its investments amid the
pandemic, media reports said Jan. 1.
Mahindra Managing Director Pawan Goenka said in an online briefing
held on Jan. 1 the Indian carmaker expects to sign a non-binding
agreement next week to sell a controlling stake in the South Korean
unit and conclude the deal by Feb. 28, Yonhap relates citing
foreign media reports.
Mahindra will hold a 30 percent stake or less in Ssangyong Motor if
the deal goes smoothly and will also carry out a 25 percent capital
reduction, Goenka said, Yonhap relays.
In 2011, Mahindra acquired a 70 percent stake in SsangYong for
KRW523 billion and now holds a 74.65 percent stake in the carmaker,
the report notes.
About Ssangyong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of rexton sports, korando,
korando sports, korando turismo, tivoli, tivoli air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
SsangYong Motor Co. on Dec. 21, 2020, filed for court receivership
as it struggles with snowballing debts amid the COVID-19 pandemic,
according to Yonhap News Agency. The decision comes after SsangYong
Motor, the South Korean unit of Indian carmaker Mahindra & Mahindra
Ltd., failed to pay KRW60 billion (US$54.8 million) worth of debts
to its three creditor banks.
The state-run Korea Development Bank, the main creditor of
SsangYong, reportedly was scheduled to decide on whether to roll
over KRW90 billion in loans due Dec. 21, Yonhap said.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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