/raid1/www/Hosts/bankrupt/TCRAP_Public/210301.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, March 1, 2021, Vol. 24, No. 37
Headlines
A U S T R A L I A
BILL HICKS: Second Creditors' Meeting Set for March 5
GABRIEL FAMILY: First Creditors' Meeting Set for March 10
GDC NSW: Second Creditors' Meeting Set for March 5
MAROON GOLD: First Creditors' Meeting Set for March 10
QANTAS AIRWAYS: Australia Mulls Aid Once Wage Subsidy Ends
QANTAS AIRWAYS: Posts AUD1.1BB Half-Year Loss Due to Pandemic
ROMEO HOMES: First Creditors' Meeting Set for March 9
STAR BUSINESS: Second Creditors' Meeting Set for March 8
C H I N A
[*] CHINA: Police Snatch Back CNY80BB From Disgraced P2P Platforms
H O N G K O N G
CNOOC LIMITED: Faces NYSE Delisting of American Depositary Shares
I N D I A
ABHILASH CHEMICALS: Ind-Ra Affirms BB+ Long-Term Issuer Rating
ABHIRAJ ENGICON: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
ADINATH COLD: CARE Keeps D Debt Rating in Not Cooperating
ANAND TEKNOW: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
ANIL BUILDCON: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
BHARAT SHEET: CARE Lowers Rating on INR5.77cr LT Loan to B
CHAMPA BITUMEN: CARE Lowers Rating on INR4.31cr Loan to B+
CRUX BIOTECH: CARE Withdraws C Rating on Bank Facilities
DEEPAK BUILDERS: CARE Lowers Rating on INR175cr LT Loan to B+
DEWAN HOUSING: Files Application to Submit Resolution Plan w/ NCLT
FINMAN FINANCE: CARE Lowers Rating on INR6.48cr LT Loan to B+
HMT MACHINE: CARE Reaffirms C Rating on INR49.82cr LT Loan
INDIGLOBAL TRADELINKS: Insolvency Resolution Process Case Summary
INDUSTRIAL HANDLING: CARE Cuts Rating on INR15cr LT Loan to B+
KALYANI CONSTRUCTION: CARE Moves D Debt Rating to Not Cooperating
KAMAKSHI STEELS: CARE Moves D Debt Rating to Not Cooperating
MITHRA YARNS: CARE Lowers Rating on INR5.50cr LT Loan to B-
NASIR ILAHI: CARE Keeps B- Debt Rating in Not Cooperating
NCL GREEN: Ind-Ra Assigns Prov. 'B+' to Non-Convertible Debentures
OMAX AUTOS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
PANCHSHEEL BUILDTECH: CARE Reaffirms D Rating on INR279.01cr Loan
REWARD BUSINESS: Insolvency Resolution Process Case Summary
SHIVAJI CANE: Insolvency Resolution Process Case Summary
SHIVAM PIPE: CARE Moves D Debt Ratings to Not Cooperating
SHRIKISHAN & COMPANY: Ind-Ra Moves 'BB' Rating to Non-Cooperating
SHRIKISHAN PRORIETORSHIP: Ind-Ra Moves BB Rating to Non-Cooperating
SOUTH GANGA: CARE Reaffirms B+ Rating on INR12.76cr LT Loan
UMA SPINTEX: CARE Withdraws D Rating on Bank Facilities
UNICON TECHNOLOGY: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
UNIVERSAL TUBE: CARE Keeps D Debt Rating in Not Cooperating
VIJAYA LAKSHMI: CARE Keeps D Debt Rating in Not Cooperating
VOLT-AGE INFRA: CARE Keeps D Debt Rating in Not Cooperating
S I N G A P O R E
SWIBER HOLDINGS: Wins Creditor Approval for Debt Restructuring Plan
- - - - -
=================
A U S T R A L I A
=================
BILL HICKS: Second Creditors' Meeting Set for March 5
-----------------------------------------------------
A second meeting of creditors in the proceedings of Bill Hicks
Jewellery Design Pty Ltd has been set for March 5, 2021, at 10:00
a.m. via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 4, 2021, at 4:00 p.m.
Michael Hogan and Christian Sprowles of HoganSprowles were
appointed as administrators of Bill Hicks on Feb. 2, 2021.
GABRIEL FAMILY: First Creditors' Meeting Set for March 10
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Gabriel
Family Holdings Pty Ltd ATF The Gabriel Family Trust ABN 51 527 468
959, trading as Gabriel Group (Qld) And Slash N Slip, will be held
on March 10, 2021, at 11:00 a.m. via a video conference on Zoom.
Darryl Edward Kirk and Stephen Phillip Earel of Cor Cordis were
appointed as administrators of Gabriel Family on Feb. 26, 2021.
GDC NSW: Second Creditors' Meeting Set for March 5
--------------------------------------------------
A second meeting of creditors in the proceedings of GDC NSW Pty Ltd
has been set for March 5, 2021, at 11:00 a.m. via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 4, 2021, at 4:00 p.m.
Morgan Kelly and Phil Quinlan of KPMG were appointed as
administrators of GDC NSW on Jan. 29, 2021.
MAROON GOLD: First Creditors' Meeting Set for March 10
------------------------------------------------------
A first meeting of the creditors in the proceedings of Maroon Gold
Pty Ltd will be held on March 10, 2021, at 10:00 a.m. via online
video conference.
Matthew Donnelly and Grant Sparks of Deloitte were appointed as
administrators of Maroon Gold on Feb. 26, 2021.
QANTAS AIRWAYS: Australia Mulls Aid Once Wage Subsidy Ends
----------------------------------------------------------
Michael Heath at Bloomberg News reports that Australia's treasurer
said he's considering measures to support firms like Qantas Airways
Ltd. and others that are still struggling with fallout from the
coronavirus pandemic, once the government's JobKeeper wage subsidy
expires late next month.
"We are looking at other measures that we can put in place
post-JobKeeper to support a range of industries including the
aviation sector," Josh Frydenberg said in an interview with Sky
News on Feb. 28, Bloomberg relays.
According to the report, the Australian carrier has received AUD459
million under the wage support program. It said it has 7,500 people
allocated to overseas flights who will still be grounded from the
end of March, when the subsidy ends, through to the end of October,
when the airline expects international borders will reopen.
"There's no doubt that the aviation industry's been hit and hit
hard and Qantas having a 75% reduction in their revenue is
testament to that," Bloomberg quotes Mr. Frydenberg as saying.
Covid-19 travel restrictions drove Qantas to an underlying pretax
loss of AUD1.03 billion in the six months ended December from a
profit of AUD771 million a year earlier, Bloomberg discloses. Like
airlines elsewhere in the world, Qantas's attempts to fly even
limited schedules have been repeatedly stymied by snap border
closures within Australia and overseas, the report states.
Bloomberg relates that Mr. Frydenberg said the domestic market is
set to improve as a Covid-19 vaccine is rolled out, confidence
returns and state borders don't close as frequently. The treasurer
said that, in their most recent conversation, Qantas Chief
Executive Officer Alan Joyce told him that in January 1,500 flights
into Queensland alone had been canceled.
"That was 200,000 passengers that would've otherwise gone into
Queensland. That would've been hundreds of millions of dollars
spent on tourism so the fact that we will see I think less border
closures, less frequent border closures, and the vaccine rollout
will be good news for their business," Mr. Frydenberg, as cited by
Bloomberg, said.
"Internationally, those borders are remaining closed, effectively,
for some time because obviously the world is still grappling with
the virus," Mr. Frydenberg added.
JobKeeper, introduced in March 2020, paid firms to retain staff
during shutdowns through the pandemic, Bloomberg discloses.
Originally set as a flat payment of AUD1,500 every two weeks for
eligible employees, it's since been tapered and ends on March 28.
Mr. Frydenberg said in a speech on Feb. 24 that 1.1 million people
would be relying on the payment in the current quarter, some
200,000 fewer than the government estimated in its Mid-Year
Economic and Fiscal Outlook released in December, adds Bloomberg.
About Qantas Airways
Headquartered in Mascot, Australia, Qantas Airways Limited provides
transportation of passengers through two airlines including Qantas
(full-service carrier) and Jetstar (low-cost carrier), operating
international, domestic and regional services.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
8, 2020, Egan-Jones Ratings Company has downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Qantas Airways Limited to BB from BBB-.
QANTAS AIRWAYS: Posts AUD1.1BB Half-Year Loss Due to Pandemic
-------------------------------------------------------------
The Sydney Morning Herald reports that Qantas Australia dived to a
AUD1.08 billion loss in the six months to December 31 after the
Covid-19 pandemic and border closures forced it to ground most of
its fleet.
According to SMH, the airline said on Feb. 25 it was planning to
resume international flying at the end of October following the
completion of Australia's vaccine rollout, but expected travel to
New Zealand to open up from July.
Qantas' revenue in the half fell 75 per cent to AUD2.3 billion, as
the number of passengers it carried fell by 83 per cent.
"These figures are stark but not surprising," Qantas chief
executive Alan Joyce said.
"During the half we saw the second wave in Victoria and the
strictest domestic travel restrictions since the pandemic began.
Virtually all of our international flying and 70 per cent of
domestic flying stopped, and with it went three-quarters of our
revenue."
SMH says Qantas and its budget arm Jetstar managed to generate
positive cashflow and underlying earnings before interest,
depreciation and amortisation of AUD71 million, despite a 70 per
cent decline in capacity and revenue.
SMH relates that Mr. Joyce said Australians were keen to travel
around the country whenever they were able to and hoped the threat
of snap state border closures - which discouraged people from
booking flights - could soon be a thing of the past once the most
vulnerable Australians were vaccinated.
"We've had very positive conversations this week with several
premiers and chief ministers about how to restore confidence in
borders as quickly as the health advice allow," SMH quotes Mr.
Joyce as saying.
"Could we reach that point as soon as April? We think an assurance
like that is worth pursuing - because it would accelerate the
recovery in key parts of the economy and give many businesses, not
to mention friends and families, instant certainty."
SMH adds that Qantas said it expected its domestic capacity to
increase to 60 per cent of pre-Covid levels in the third quarter
and to 80 per cent in the fourth quarter, while its international
flying - currently at 8 per cent capacity - would remain
"negligible" throughout the second half.
About Qantas Airways
Headquartered in Mascot, Australia, Qantas Airways Limited provides
transportation of passengers through two airlines including Qantas
(full-service carrier) and Jetstar (low-cost carrier), operating
international, domestic and regional services.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
8, 2020, Egan-Jones Ratings Company has downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Qantas Airways Limited to BB from BBB-.
ROMEO HOMES: First Creditors' Meeting Set for March 9
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Romeo Homes
Pty Ltd will be held on March 9, 2021, at 11:00 a.m. via video
conference.
Mathew Gollant of CJG Advisory was appointed as administrator of
Romeo Homes on Feb. 25, 2021.
STAR BUSINESS: Second Creditors' Meeting Set for March 8
--------------------------------------------------------
A second meeting of creditors in the proceedings of Star Business
Group Pty Ltd has been set for March 8, 2021, at 11:00 a.m. at the
offices of SM Solvency Accountants, 10/144 Edward Street, in
Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 7, 2021, at 4:30 p.m.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Star Business on Feb. 1, 2021.
=========
C H I N A
=========
[*] CHINA: Police Snatch Back CNY80BB From Disgraced P2P Platforms
------------------------------------------------------------------
Hu Yue and Tang Ziyi at Caixin Global report that Chinese police
have so far recovered more than CNY80 billion ($12.3 billion) in
assets related to online peer-to-peer (P2P) lending platforms, the
China Banking and Insurance Regulatory Commission (CBIRC), the
country’s banking watchdog, said Feb. 26.
Caixin says the disclosure is the latest update in a four-year
crackdown on China's scandal-ridden P2P lending industry. In
August, CBIRC Chairman Guo Shuqing said investors held more than
CNY800 billion in unpaid debts from P2P platforms.
Last month, a deputy governor of the People's Bank of China said
all of the country's P2P platforms had been essentially shut down,
Caixin recalls. At its peak in November 2015, the sector had more
than 3,600 functioning platforms.
=================
H O N G K O N G
=================
CNOOC LIMITED: Faces NYSE Delisting of American Depositary Shares
-----------------------------------------------------------------
Bloomberg News reports that Cnooc Ltd., China's largest offshore
oil producer, faces New York Stock Exchange proceedings to delist
its American depositary shares under an executive order signed by
then-President Donald Trump in November.
Trading will be suspended on March 9, though the issuer has a right
to a review of the determination, the exchange said in a statement
after hours in New York on Feb. 26, Bloomberg relays. The exchange
cited the executive order as well as updated guidance provided by
the U.S. Treasury's Office of Foreign Assets Control on Jan. 27.
Bloomberg relates that the move followed the earlier drama around
the delisting of China's three biggest telecommunications firms
last month, with NYSE at one point reversing the decision before
enforcing it again. The reversal caused confusion over the U.S.
policy behind the NYSE's move.
China Mobile Ltd., China Unicom Hong Kong Ltd. and China Telecom
Corp. said they requested a review of the bourse's decision to
delist their shares and the NYSE indicated it was acting to comply
with the executive order, barring investments in companies deemed
by the U.S. to be linked to China's military, Bloomberg says.
The three companies lost more than $30 billion in market value in
the final weeks of 2020 as investors pulled back from their shares
following Trump's November order, according to Bloomberg.
Bloomberg relates that China's Foreign Ministry spokeswoman Hua
Chunying in January urged U.S. to respect market principles. It
dismissed any move to delist the stocks as having minimal impact on
their businesses and maintained that such a step would hurt the
U.S. more than the Chinese government.
Based in Central, Hong Kong, CNOOC Limited, an investment holding
company, explores for, develops, produces, and sells crude oil and
natural gas in offshore China, Canada, the United States, the
United Kingdom, Nigeria, Argentina, Indonesia, Uganda, Iraq,
Brazil, Guyana, Russia, Australia, and internationally. The company
operates through three segments: E&P, Trading Business, and
Corporate. It produces offshore crude oil and natural gas primarily
in Bohai, the Western South China Sea, the Eastern South China Sea,
and the East China Sea in offshore China. The company also holds
interests in various oil and gas assets in Asia, Africa, North
America, South America, Oceania, and Europe. As of December 31,
2019, it had net proved reserves of approximately 5.18 billion
barrels of oil equivalent. In addition, the company is involved in
the issuance of bonds; sale and marketing of petroleum and natural
gas; and surface exploration and sale of coalbed methane. CNOOC
Limited is a subsidiary of China National Offshore Oil Corporation.
=========
I N D I A
=========
ABHILASH CHEMICALS: Ind-Ra Affirms BB+ Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Abhilash Chemicals
and Pharmaceuticals Pvt. Ltd.'s (ACPPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR27.5 mil. (increased fromINR6.64 mil.) Term loan due on May
2024 affirmed with IND BB+/Stable rating;
-- INR160.0 mil. Fund-based working capital limits affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR162.5 mil. (increased from INR52.5 mil.) Non-fund-based
working capital limits affirmed with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects ACPPL's continued small scale of
operations as indicated by revenue of INR855 million in FY20 (FY19:
INR934 million). The decline in revenue was owing to a fall in the
sales realization to INR225 per kg (FY19: INR238 per kg), along
with the COVID-19 led economic disruptions, which led to a decline
in export orders and disruptions in production due to the
nationwide lockdown during the last week of March 2020. At 9MFYE21,
ACPPL had an order book of INR70 million, to be executed by
end-February 2021. It recorded revenue of INR640 million in 9MFY21.
The management expects the revenue to improve marginally in FY21 on
account of regular inflow of orders.
The ratings also factor in the financial support that ACPPL
provides to its 74% subsidiary, Abhilash Life Science LLP (ALS),
which is engaged in the formulations business. ALS commenced
operations in August 2020. ACPPL infused INR369.0 million in ALS in
FY20 (FY19: INR317.0 million) in the form of investments. It has
also provided a corporate guarantee of INR150.0 million for ALS'
short-term debt.
The ratings are also constrained by ACPPL's working
capital-intensive nature of operations, leading to an elongated
working capital cycle of 121 days in FY20 (FY19: 97 days). The
stretch in the working capital cycle resulted from an increase in
debtor collection period to 166 days in FY20 (FY19 127 days). The
company's working capital cycle further elongated to 164 days in
9MFY21.
The ratings continue to factor in ACPPL's volatile margins of
10%-15% during FY17-FY20, due to fluctuations in raw material
prices, forex fluctuations, intense competition, and government
policies and procedures related to the highly-regulated
pharmaceutical sector. The EBITDA margins improved to 15.4% in FY20
(FY19: 12.5%, FY18: 10.2%) due to a reduction in raw material
price. The return on capital employed was healthy at 16% in FY20
(FY19: 18%). In 9MFY21, the company's EBITDA margins further
improved to 16.8%. Ind-Ra expects the margins to remain at a
similar level in FY21, due to increase in exports to regulated
markets, which generate higher margins than domestic and
non-regulated markets.
However, the ratings continue to benefit from ACPPL's strong credit
metrics, despite the small scale of operations, owing to the lower
debt levels. The interest coverage (operating EBITDA/gross interest
expense) improved to 5.8x in FY20 (FY19: 5.2x) owing to an increase
in operating EBITDA to INR132.0 million (INR116.0 million).
However, the net leverage (total adjusted net debt/operating
EBITDAR) deteriorated marginally to 2.12x in FY20 (FY19: 2.04x),
due to an increase in the total debt to INR283.9 million (INR247.6
million). During 9MFY21, the interest coverage and the net leverage
stood at 6.7x and 1.8x, respectively. Ind-Ra expects the credit
metrics to remain strong in the near term, due to the absence of
any major debt-led capex plans.
Liquidity Indicator – Adequate: ACPPL's average use of the
fund-based and the non-fund-based facilities was 52% and 40%,
respectively, during the 12 months ended January 2021. The cash
flow from operations remained healthy, despite declining to INR39.5
million in FY20 (FY19: INR188 million) due to unfavorable changes
in working capital. Consequently, the free cash flow decreased to
INR7.6 million in FY20 (FY19: INR182.3 million). At FYE20, the
company had a bank balance of INR4.07 million (FYE19: INR7.26
million). ACPPL has scheduled debt repayments of INR2.67 million
for FY21, which will be met from internal accruals. The company did
not avail the Reserve Bank of India-prescribed moratorium under the
COVID-19 relief package scheme.
The ratings continue to be supported by the promoters' more than
three decades of experience in the pharmaceutical industry.
RATING SENSITIVITIES
Positive: Timely ramp up of operations at the subsidiary while
maintaining the credit metrics on a sustained basis could lead to a
positive rating action.
Negative: A decline in the revenue or EBITDA margins, leading to
deterioration in the credit metrics, all on a sustained basis,
could lead to a negative rating action.
COMPANY PROFILE
Incorporated in 1989, ACPPL is a Madurai-based specialty chemical
manufacturer. The company manufactures active pharmaceutical
ingredient, metformin hydrochloride, used as an oral antidiabetic
agent. It derives 85% of its revenue from the pharma division and
the remaining from the manufacturing of leather chemical and
textile chemical. ACPPL generates 90% of its revenue from exports
to Brazil, Thailand, the UAE, Sri Lanka, Pakistan, Egypt, Syria and
Vietnam.
ABHIRAJ ENGICON: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Abhiraj Engicon Private Limited's (AEPL) bank
facilities:
-- Long-Term Issuer Rating affirmed with IND BB/Stable rating;
-- INR67.5 mil. Fund-based limit affirmed with IND BB/Stable/IND
A4+ rating;
-- INR25 mil. Non-fund-based limit affirmed with IND A4+ rating;
-- INR32.5 mil. Fund-based limit assigned with IND BB/Stable/IND
A4+ rating; and
-- INR38.9 mil. Term loan due on June 2024 assigned with
IND BB/Stable rating.
RATING SENSITIVITIES
Positive: A significant growth in the revenue and the order book,
along with an improvement in the credit metrics with the net
leverage reducing below 3x, all on a sustained basis, will be
positive for the ratings.
Negative: Any decline in the order book, resulting in low revenue
visibility and a sustained deterioration in the credit metrics with
the net leverage sustaining above 4x will lead to a negative rating
action.
COMPANY PROFILE
Pune-based AEPL is engaged in the execution of engineering,
procurement, construction of dams and canals mainly for Water
Resources Department in the Konkan and Vidarbha regions of
Maharashtra. The company was incorporated as a partnership firm
named P I Rachkar & Company in 1995 and was reconstituted as a
private limited company in 2007. AEPL is a registered as a Class-IA
contractor in Maharashtra.
ADINATH COLD: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Adinath
Cold Storage Private Limited (ACSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.50 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 December 2, 2019, placed the
rating of ACSPL under the 'issuer non-cooperating' category as
ACSPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. ACSPL continues to be
non-cooperative despite repeated requests for submission of
information through email dated February 1, 2021, February 3, 2021,
February 11, 2021 and numerous phone calls. 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).
Detailed description of the key rating drivers
At the time of last rating on December 2, 2019 the following were
the rating weaknesses (Updated for the information available from
Registrar of Companies)
Key Rating Weaknesses
* Delay in debt servicing obligations: As per banker interaction
dated November 14, 2018 there were overdrawals in cash credit
facility and the account was classified as NPA.
ACSPL, incorporated on June 29, 2010 is promoted by Mr.
RamanraoBholla and Mrs. VijayalaxmiBholla. The company is engaged
in processing of pulses and providing cold storage facility to
local farmers and traders on rental basis. The facility, with
storage capacity of around 60000 square feet is located at Nagpur
district of Maharashtra.
ANAND TEKNOW: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anand Teknow
Aids Engineering Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR350 mil. Term loan (Long-term) due on November 2017 to
October 2020 maintained in non-cooperating category IND D
(ISSUER NOT COOPERATING) rating;
-- INR710 mil. Fund-based limit (long-term) maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR970 mil. Non-fund-based limit (Short-term) maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR80 mil. Proposed non-fund-based limit (Long-term/Short-
term)* is withdrawn; and
-- INR250 mil. Non-convertible debentures (NCDs)(Long-term)#
ISIN INE569X08013 maintained in non-cooperating category with
IND D (ISSUER NOT COOPERATING) rating.
*The rating has been withdrawn since it was outstanding for over
180 days
# Ind-Ra has not received final documentation for the NCDs
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 15, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1984, Anand Teknow Aids Engineering manufactures
and trades steel products. It has three business segments:
manufacturing, trading and services.
ANIL BUILDCON: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anil Buildcon
(India) Private Limited's (ABIPL) Long-Term Issuer Rating of 'IND
BB+ (ISSUER NOT COOPERATING)' in the non-cooperating category and
has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR5 mil. Fund-based limit* maintained in the non-cooperating
and withdrawn; and
-- INR280 mil. Non-fund-based limit** maintained in the non-
cooperating and withdrawn.
*Migrated to 'IND BB+ (ISSUER NOT COOPERATING)' before being
withdrawn.
** Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn.
KEY RATING DRIVERS
The ratings have been maintained in the non-cooperating category
because the issuer did not participate in the rating exercise
despite continuous requests and follow-ups by Ind-Ra.
The agency is no longer required to maintain the ratings, as the
agency has received a no-objection certificate from the lenders.
This is consistent with the Securities and Exchange Board of
India's circular dated March 31, 2017 for credit rating agencies.
Ind-Ra will no longer provide analytical or rating coverage for
ABIPL.
COMPANY PROFILE
ABIPL was incorporated in 1984 as a partnership firm named Anil
Construction Company. In 2011, it was converted into a private
limited company and renamed ABIPL. It is registered as an A-5 class
contractor, due to which it can participate in unlimited tenders
for five years from the date of registration (18 July 2014). It
undertakes civil construction work in Chhattisgarh and Madhya
Pradesh. Its key clients are the Public Works Department, Madhya
Pradesh Rural Road Development Authority, South Eastern Coalfields
Limited, Pradhan Mantri Gram Sadak Yojana and the Chhattisgarh
Rural Roads Development Agency.
BHARAT SHEET: CARE Lowers Rating on INR5.77cr LT Loan to B
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Bharat Sheet Grah Private Limited (BSGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.77 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE B+; Stable and moved to
ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BSGPL to monitor the
rating(s) vide e-mail communications/ letters dated January 29,
2021, January 25, 2021, January 8, 2021, October 28, 2020,
September 15, 2020, etc. and numerous phone calls. However, despite
our 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
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Bharat Sheet
Grah Private Limited's bank facilities will now be denoted as CARE
B; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating).
The rating has been revised on account of non-availability of
requisite information and no due-diligence conducted due to
non-cooperation by Bharat Sheet Grah Private Limited 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 rating takes into account the constraints
relating to company's small scale of operations, dependence on
vagaries of nature & seasonality of business coupled with
fragmented nature of the industry. The rating, however, continues
to take comfort from experienced promoters, moderate profitability
margins and capital structure.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: BSGPL's scale of operations continue
to remain small as evident from total operating income and gross
cash accruals of INR2.96 crore and INR0.72 crore respectively,
during FY19 (refers to the period April 1 to March 31) as against
INR3.11 crore and INR0.72 crore respectively, during FY18. The
small scale limits the company's financial flexibility in times of
stress and deprives it of scale benefits. Furthermore, during
7MFY20 (refers to the period April 1 to October 31; based on
provisional results); the company has achieved the total operating
income of INR2.78 crore.
* Dependence on vagaries of nature and seasonality of business:
Agro-based industry is characterized by its seasonality, as it is
dependent on the availability of raw materials, which further
varies with different harvesting periods. Potato is mainly a winter
season crop and the production highly depends on vagaries of
nature. Lower output of potato will have an adverse impact on the
rental collections as the cold storage units collects rent on the
basis of quantity stored.
* Fragmented nature of the industry: BSGPL's business risk profile
is constrained on account of exposed to competition from other
regional players operating in warehousing industry. BSGPL is
operating in such an industry which is fragmented in nature and has
limited entry and exit barrier. This leads to limited bargaining
power with customers and restrict to charge additional rent, which
constraints its scale of operations.
Key Rating Strengths
* Experienced promoters: BSGPL's operations are currently being
managed by Mr. Kaushlendra Kumar Gupta and Mr. Arvind Kumar Gupta.
Mr. Kaushlendra Kumar Gupta has accumulated experience of more than
one and half decade in cold storage business through his
association with this entity and other associates. He is ably
supported by Mr. Arvind Kumar Gupta, who has an experience of more
than a decade in this business through his association with this
entity and other associates.
* Moderate profitability margins, capital structure and debt
coverage indicators: The profitability margins of the company
remained moderate for the past three financial years (FY17-FY19)
owing to service sector undertaking with mainly fixed cost to be
absorbed. PBILDT margin of the company improved and stood at 37.90%
in FY19 as against 35.88% in FY18 mainly on account of economies of
scale. Similarly, PAT margin also improved and stood at 11.92% in
FY19 mainly on account of MAT credit and deferred tax asset
amounting to INR0.18 crore. The capital structure of the company
stood moderate as marked by overall gearing ratio which stood at
1.22x as on March 31, 2019 as against 1.62x as on March 31, 2018 on
account of repayment of term loan coupled with lower utilization of
working capital borrowings as on balance sheet date. Further, owing
to moderate profitability margins; debt service coverage indicators
as marked by interest coverage and total debt to GCA continue to
remain moderate at 2.67x and 6.39x respectively, during FY19.
Liquidity: Stretched
BSGPL has stretched liquidity position evident from tightly matched
accruals to repayment obligations. The cash and bank balances stood
modest at INR0.04 crore as on March 31, 2019. Further, in line with
RBI guidelines in wake of COVID-19 pandemic, the company has
availed moratorium period for its facilities provided by the bank.
Bharat Sheet Grah Private Limited (BSGPL) (CIN
No.U15139UP2008PTC034537) was incorporated in January, 2008 and
started its commercial operations in March, 2013. The company is
currently managed by Mr. Kaushlendra Kumar Gupta & Mr. Arvind Kumar
Gupta. BSGPL is engaged in renting of its cold storage facility for
potatoes to the local farmers in Sirsaganj, Uttar Pradesh with
multi chambers having storage capacity of 195662.94 quintals as on
March 31, 2019. The company has two group associates namely; "Sai
Sheet Grah"; (established in 2000) engaged in renting of its cold
storage facility and "Sai Rice Mill"; engaged in rice milling.
CHAMPA BITUMEN: CARE Lowers Rating on INR4.31cr Loan to B+
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Champa Bitumen Hot Mixture Plant (CBHMP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.31 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING Revised from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from CBHMP to monitor the rating
vide e-mail communications/letters dated October 21, 2020, Nov. 5,
2020, January 8, 2021, February 11, 2021 and numerous phone calls.
However, despite CARE's repeated requests, the entity has not
provided the requisite information for monitoring the rating. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on CBHMP's bank facilities will now be denoted as CARE B+;
Stable; ISSUER NOT COOPERATING. Further, banker could not be
contacted.
Detailed Rationale & Key Rating Drivers
Key Rating Weaknesses
* Proprietorship nature of constitution: CBHMP, being a
Proprietorship firm, is exposed to inherent risk of Proprietor's
capital being withdrawn at the time of personal contingency and
firm being dissolved upon the death/retirement/insolvency of the
Proprietor. Furthermore, proprietorship firms have restricted
access to external borrowing as credit worthiness of partners would
be the key factors affecting credit decision for the lenders.
* Short track record of operation with small scale of operation:
The operation of the firm has started from February 2018, thus
having around two years and two months of track record of operation
during FY20 (prov.). The firm has earned a total operating income
of INR34.94 crore and INR27.47 crore with a PAT of INR9.07 crore
and of INR4.63 crore in FY19 and FY20 (prov.) respectively, which
has improved significantly from FY18. Furthermore, the firm has net
worth of INR7.25 crore and INR8.74 crore, respectively, as on March
31, 2019 and March 31, 2020 (Prov.). The Gross Cash Accruals also
improved significantly in FY19 and FY20 (Prov.) marked by INR10.57
crore and INR5.91 crore, respectively. The small scale restricts
the financial flexibility of the firm in times of stress. During
4MFY21, the firm has achieved total operating income of INR1.82
crore.
* Highly competitive & fragmented industry with many regional
unorganized players: The Bitumen and Asphalt mixing industry is
highly competitive and fragmented with many regional unorganized
players. CBHMP is expected to face severe competition from
unorganized players due to low entry barrier and low capital needs
which exposing it to pricing and profitability pressures.
* Volatility in profit margins subject to raw material price
fluctuations: The prices of major inputs like Bitumen and Asphalt
etc. are volatile in nature. The kind of raw materials are largely
imported in India. Accordingly, any volatility in input prices may
adversely affect the profitability of the firm.
* Working capital intensive nature of operations: The operation of
the firm is working capital intensive in nature. The working
capital needs reflects in high utilization of working capital
borrowing at around 90% during last 12 months ending on July,
2020.
Key Rating Strengths
* Experienced proprietor: CBHMP is currently managed by Mrs Sewli
Mohilary, proprietor, along with a team of experienced personnel.
The entire proprietor is having over a decade of experience in
similar line of business.
* Satisfactory profitability margin: The profitability margins of
the entity remained satisfactory marked by PBILDT margin of 32.41%
and 23.47%, respectively, in FY19 and FY20 (Prov.). PAT margin also
stood satisfactory at 25.95% and 16.86% respectively, in FY19 and
FY20 (Prov.).
* Comfortable capital structure with satisfactory debt coverage
indicators The capital structure of the firm remained comfortable
as on March 31, 2020 marked by overall gearing ratio of 0.56x in
view of accretion of profits to capital along with scheduled
repayment of term loan. The debt coverage indicators represented by
total debt to GCA has improved significantly in FY19 and FY20 over
FY18 and remained satisfactory at 0.62x and 0.83x, respectively, in
FY19 and FY20. The Interest coverage ratio improved to 14.97x and
12.04x, respectively, in FY19 and FY20 (provisional) as against
8.62x in FY18 on account of higher increase in operating profits
vis-à-vis increase in interest charges.
* High growth prospects of the industry: With the increase in
construction and infrastructure works in the country and high
expenditures from Government agencies, demand of hot mixing plant
and outputs like bitumen and asphalt mixes are increasing.
Champa Bitumen Hot Mixture Plant (CBHMP) was established in May
2017 as a proprietorship firm to initiate a Bitumen and Asphalt
Mixing unit at Kokrajhar in Assam. During February 2018, the firm
has started its commercial operation with an installed capacity of
1,00,000 MTPA. The firm will sell its products to the local
construction projects. The day-to-day affairs of the firm are
looked after by Mr Sewli Mohilary, proprietor, along with a team of
experienced personnel.
CRUX BIOTECH: CARE Withdraws C Rating on Bank Facilities
--------------------------------------------------------
CARE Ratings has withdrawn the ratings on certain bank facilities
of Crux Biotech India Private Limited (CBIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at CARE C;
ISSUER NOT COOPERATING and
Withdrawn
Detailed Rationale & Key Rating Drivers
CARE has reviewed the rating assigned to the bank facilities of
CBIPL to 'CARE C; Stable; Issuer Not Cooperating' and has
simultaneously withdrawn it, with immediate effect. The rating
withdrawal is at the request of Crux Biotech India and 'No
Objection Certificate' received from the banks that have extended
the facilities rated by CARE.
Detailed description of the key rating drivers
At the time of last rating on July 14, 2020 the following were the
rating strengths and weaknesses.
Key Rating Weaknesses
* Decline in profitability margins: The PBILDT margin of the
company declined by 329 bps from 12.35% during FY18 to 9.06% during
FY19 due to increase in the cost of material consumed. The PAT
margin of the company remained stable at 1.57% during FY19 (1.59%
during FY18).
* Seasonal availability of raw material and volatility in maize
prices: Corn/Maize and broken rice is the raw material that is used
in manufacturing maize starch and broken rice starch. The basic raw
material i.e. maize, is a seasonal crop and is available only
during the period of January-February of Rabi season and
September–October of Kharif season. Thus, the profitability is
exposed to vagaries of nature and fluctuation in input prices.
* Susceptibility to government policies: The Indian liquor industry
has been subjected to a high degree of governmental interference.
Furthermore, it is a major revenue contributor to the state
governments, most of which are cash–strapped today. Hence it is
unlikely that the level of taxes or control exerted by the various
governments would reduce in the medium term. So the regulatory risk
is expected to remain high.
Key Rating Strengths
* Experienced and resourceful promoters: CBIPL is promoted by Mr.
G. Ravi Chandran – Managing Director (B.E - Electronics &
Communication Graduate) having two decades of experience in the
line of Information Technology, Civil Construction and in trading
of Liquor. He has more than a decade experience in liquor trade
industry. The company is also getting support in improving the
standards of production from other directors. Further the promoters
of the company have been supporting and infusing the funds as and
when required.
* Growth in total operating income: The total operating income of
the company improved by 12% from INRINR131.28 crore during FY18 to
INR147.05 crore during FY19.
* Moderate financial risk profile: The overall gearing ratio of the
company improved to 0.48x as on March 31, 2019 (0.77x as an March
31, 2018) due to reduction in total debt level. The PBILDT margin
of the company improved to 2.76x during FY19 (2.03x during FY18)
due to reduction in the interest expense.
* Diversified product portfolio: CBIPL is engaged in manufacturing
of extra neutral alcohol from maize starch and broken rice starch
for the alcohol trade industry, Distillers Wet Grain Soluble (DWGS)
and Distillers Dried Grain Soluble (DDGS) used for cattle feed and
poultry feed and spirit supplied to pharmaceutical industry.
Incorporated on May 20, 2010, Crux Biotech India Private Limited
(CBIPL) is promoted by Mr. G. Ravi Chandran – Managing Director
with more than two decades of experience in trading of liquor. Crux
Biotech India Private Limited is into manufacture of extra neutral
alcohol/potable alcohol (non-molasses based), pharma grade absolute
alcohol, ethanol fuel, feeds and feed supplements. CBIPL is
primarily engaged in manufacturing of extra neutral alcohol from
maize starch and broken rice starch. The solid waste derived in the
process of manufacturing starch is known as Distillers Wet Grain
Solubles and Distillers Dried Grain Solubles which is used for
cattle feed and poultry feed and contributes 25% of the total
revenue of the company. The company also manufactures spirit which
is supplied to the pharmaceutical industry. The company has an
installed capacity of 60kl per day and also has a captive power
plant of 2.5MW.
DEEPAK BUILDERS: CARE Lowers Rating on INR175cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Deepak Builders and Engineers India Private Limited (DBEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 175.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 21, 2019, placed
the rating of DBEPL under the 'issuer non-cooperating' category as
DBEPL failed to provide information for monitoring of the rating.
DBEPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated February 11, 2021. 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 assigned to the bank facilities of DBEPL has been
revised on account of non-availability of requisite information due
to non-cooperation by DBEPL with CARE's efforts to undertake a
review of the outstanding rating. CARE views information
availability risk as a key factor in its assessment of credit risk.
Further, the rating continues to be constrained by elongated
operating cycle, presence in a fragmented construction industry
with high competition along with susceptibility of margins to raw
material price volatility. The rating however, derives strength
from the experienced promoters, established track record,
increasing scale of operations and improvement in capital
structure.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Elongated operating cycle: The operating cycle of the company
remained elongated at 86 days, as on March 31, 2020 (PY: 103 days),
on account of elongated average inventory holding days.
* Raw material price risk: Ability of the entities engaged in the
construction industry to pass on the increased price burden to the
customers in a timely manner has a direct bearing on their
profitability margins. Majority of the contracts undertaken by the
group contains price variation clause covering the price volatility
in steel and cement. Further, in the absence of price escalation
clause, the group increases the quoted rate to cover the same.
* Presence in fragmented construction industry with increasing
competition: The Company is a mid-sized player operating in an
intensely competitive construction industry with presence of large
number of contractors, resulting in aggressive bidding and
consequently pressure on profit margins. Furthermore, operating
challenges such as delays in projects and payment also affect the
credit profile of industry players. However, the company has long
standing track record in the construction industry along with
strong order book which fares the company well against its peers.
Key Rating Strengths
* Experienced promoters and established track record: The
management has an experience of almost 3 decades in civil
construction industry. The company is promoted by Mr. Deepak
Singal. Mr. Deepak Singal has an experience of more than 35 years
in the construction sector. The company has a team of qualified
engineers with expertise in civil construction. The long standing
experience of the promoters has enabled the company to establish
relations with its customers resulting in repetitive orders/tenders
from various government departments.
* Increasing scale of operation and improvement in capital
structure: In FY20, the company achieved a total operating income
of INR310.95 cr. (PY: INR239.54 cr.) which increased by ~30% on a
y-o-y basis from FY19 mainly on account of higher work orders
executed in FY20 compared to the previous year. The overall gearing
ratio and debt to equity ratio of the company improved to 1.05x and
0.35x respectively, as on March 31, 2020 (PY: 2.83x and 0.67x,
respectively) on account of decrease in the total debt outstanding
and accretion of profits to net worth.
Deepak Builders & Engineers India Pvt Ltd (DBEPL) was initially
incorporated in 1987 as a partnership firm by the name of 'Deepak
Builders'. The company is a part of the 'Deepak' group having
business interest in civil construction and real estate. DBEPL has
a group company- Deepak Singal Engineers and Builders Private
Limited (DSEB; rated CARE B; Stable; ISSUER NOT COOPERATING) which
is also engaged in the same line of business since 1992. DBEPL has
been into civil construction for the past three decades and is a
government contractor and builder.
DEWAN HOUSING: Files Application to Submit Resolution Plan w/ NCLT
------------------------------------------------------------------
The Economic Times reports that Dewan Housing Finance Corporation
Limited (DHFL) on Feb. 25 said it has received no objection from
the Reserve Bank and has filed an application with NCLT for
submission of the resolution plan of Piramal Capital & Housing
Finance. Earlier last week, DHFL had announced Piramal group's
resolution plan getting approval from the RBI.
Pursuant to the receipt of no objection from Reserve Bank of India
as per Insolvency and Bankruptcy Rules, 2019, the administrator of
Dewan Housing Finance Corporation Limited (DHFL) has filed an
application for submission of resolution plan of Piramal Capital &
Housing Finance Limited (PCHFL) with the adjudicating authority
NCLT, Mumbai Bench, DHFL said in a regulatory filing, ET relays.
ET says the resolution plan has been approved by the Committee of
Creditors (CoC).
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.
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.
FINMAN FINANCE: CARE Lowers Rating on INR6.48cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Finman Finance India Private Limited (FFIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.48 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from FFIPL to monitor the rating
vide e-mail communications/letters dated July 7, 2020, September
30, 2020, November 6, 2020, November 24, 2020, January 7, 2021,
February 9, 2021 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. Further, FFIPL has not paid
the surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on FFIPL's bank facilities will now be
denoted as CARE B+; Stable; ISSUER NOT COOPERATING.
Detailed Rationale & Key Rating Drivers
Key Rating Weaknesses
* Small scale of operation with low profitability margin: FFIPL is
a small player in tea industry manufacturing business with total
operating income of INR15.39 crore and PAT of INR0.10 crore,
respectively, in FY19. Furthermore, the total capital employed was
also low at INR9.13 crore as on March 31, 2019. The small scale
restricts the financial flexibility of the company in times of
stress. During 9MFY20, the company has achieved total operating
income of INR13.20 crore. Furthermore, the profitability of the
company has been low over the years. PBILDT margin and PAT margin
were 6.70% and 0.63%, respectively, during FY19.
* Susceptible to vagaries of the nature: Tea production, besides
being cyclical, is susceptible to vagaries of nature. FFIPL's tea
processing unit is located in Shibsagar district of Assam, the
second largest tea producing state in India. However, the region
has sometimes witnessed erratic weather conditions in the past.
Though demand for tea is expected to have a stable growth rate,
supply can vary depending on climatic conditions in the major tea
growing areas. Therefore, adverse natural events have negative
bearing on the productivity of tea gardens in the region and
accordingly FFIPL is exposed to vagaries of nature.
* High labour-intensive nature of business: The nature of the tea
industry makes it highly labour intensive, entailing various
employee welfare facilities. Renegotiation of wage rates and
welfare related benefits takes place every 2-3 years (with last
wage revision being happened in Aug. 2018). Any significant
increase in wages with no corresponding increase in tea price
realization may negatively impact the profitability margin of FFIPL
in the future. Further, maintenance of cordial relationship with
labourers is also an important factor for smooth functioning of the
business. FFIPL has not experienced any labor problem in the past
few years.
* Volatility associated with tea price: The prices of tea are
linked to the auctioned prices, which in turn, are linked to prices
of tea in the international market. Hence, significant adverse
price movement in the international tea market affects FFIPL's
profitability margins. Further, tea prices fluctuate widely with
demand-supply imbalances arising out of both domestic and
international scenarios. Tea is a perishable product and demand is
relatively price inelastic, as it caters to all segments of the
society. While demand has a strong growth rate, supply can vary
depending on climatic conditions in the major tea growing
countries. Unlike other commodities, tea price cycles have no
linkage with the general economic cycles, but with agro-climatic
conditions.
* High competition: While the tea industry is an organised
agro-industry, it is highly fragmented in India with presence of
many small, midsized and large players. There are about 1000 of tea
brands in India, of which 90% of the brands are represented by
regional players while the balance of the 10% is dominated by big
corporate houses. Since, FFIPL majorly sells all its produce
through auctions and doesn't have any brand. This, coupled with the
growing shift from loose to branded tea among consumers, would
further intense the competition for FFIPL.
* Working capital intensive nature of business: FFIPL's business,
being processing of black tea, is working capital intensive marked
by high average inventory holding period. The average inventory
holding period remained high at 27 days during FY19 due to seasonal
nature of the industry wherein the March quarter is the lean season
resulting in lower off take and accumulated inventory leading to
availment of higher bank limits to meet running expenses. However,
FFIPL could manage moderate creditors' period in the range of 20-23
days during FY17-FY19 on the back of long association with the
creditors. Accordingly, the average working capital utilization
remained high at around 85% during the last twelve-month ending
December 31, 2019.
Key Rating Strength:
* Long & satisfactory track record: FFIPL has been engaged in
processing and sale of tea since 2002. Over the years, FFIPL has
been able to grow over the years by constantly increasing the
quality of manufactured tea. Experienced management Mr. Ramesh
Kumar Khemka and Mr. Rajesh Modi are the directors of FFIPL and
looks after overall management of the company. Mr. Ramesh Kumar
Khemka having around three decades of experience in the tea
industry and are ably supported by other director Mr. Rajesh Modi
along with the team of experienced professionals who have rich
experience in the same line of business.
* Satisfactory capacity utilization with in line recovery rate:
Capacity utilization of the tea processing unit of FFIPL has
remained at satisfactory level during FY18. Furthermore, the
recovery rate remained in line with industry average.
Liquidity: Adequate:
Adequate liquidity characterized by sufficient cushion in accruals
vis-à-vis repayment obligations. However, cash balance stood low
at INR2.02 crore as on March 31, 2019. The company does not have
any capex plan in near future. Its bank limit was around 100%
utilised during last 12 months ended on December 31, 2020. The
current ratio stood at 5.18x as on March 31, 2019. They have
availed the ECGL loan of INR0.96 crore.
Finman Finance India Pvt Ltd (FFIPL) was incorporated in March,
2002 by Assam based Mr. Ramesh Kumar Khemka and Rajesh Modi. Since
its incorporation the company is engaged in the business of
processing of black tea at Shibsagar, Assam. The company sells tea
in auction and through brokers.
HMT MACHINE: CARE Reaffirms C Rating on INR49.82cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of HMT
Machine Tools Limited (HMTMTL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 49.82 CARE C; Stable Reaffirmed
Short term Bank
Facilities 72.90 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of HMTMTL continues to
be constrained by its weak financial profile, stressed liquidity
with continuing losses and negative networth in addition to
deferring its dues on long-term loans extended by Government of
India (GoI). Also, company's average fund based/non-fund based
working capital limits are near fully utilized. These rating
weaknesses are partially offset by its parentage, experienced
management team and funding support from its holding
company/Government of India (GOI).
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade
* Company getting substantial Government/Holding company support
for execution of existing orders and helping the company turning
profitable.
Negative Factors- Factors that could lead to negative rating
action/downgrade
* Lack of Government/holding company's support in the future
* Delay in servicing repayment obligations to Banks/Financial
institutions
Detailed description of the key rating drivers
Key Rating Weaknesses
* Weak financial risk profile with stressed liquidity: HMTMTL has
been incurring losses since inception. The company's performance in
the past has largely been impacted by subdued demand for products
from end users segment as well as the company's strained liquidity
position, limiting the company to execute orders. Low capacity
utilization, ageing machineries, rising overhead expenses, employee
costs and ballooning capital charge is behind the company's losses.
Company's liquidity is being supported by infusion from its holding
company HMT Ltd/GOI every year. During FY20, HMT Machine Tools
Limited recorded a net loss of INR98.72 Crore as against INR63.83
Crore in FY19. The increase in loss can be attributed to lower
sales, higher production costs incurred by the company during FY20
along with higher interest costs to GOI which are being expensed
though not being paid by the company. The accumulated losses of the
company stood at INR1653.74 crore as of March 2020 (INR1555.02
crore as of March 2019). The reduction in production in FY20 is due
to the effect of Covid-19 in Q4FY20 as the Company could not
complete several finishing and dispatch activities in the last
quarter due to non-receipt of imported material, inability of
customers to come for pre-dispatch inspection as well as travel
restrictions to send engineers for erection and commissioning.
During H1FY21, company has record revenue of INR52.62 Cr with PBIDT
loss of INR43.25 Cr and net loss of INR91.79 Cr. The losses are due
to delay in orders execution, operational issues etc. leading to
clients charging for delays etc. and also due to lockdown
restrictions imposed by the Government during Q1FY21. All of the
company's plants were closed from mid of March 2020 to May 2020 and
were reopened during June 2020 as a part of phase wise listing of
lockdown by GOI. The company's average fund based/ non-fund based
working capital are near fully utilized during the past 12 months
ending Jan'21.
Key Rating Strengths
* Long track record of operations and experienced management team:
HMTMTL is a part of HMT group, and is operating in the present line
of business for more than six decades. Over the years of operation,
the company has established itself in the industry. Due to the
same, company currently has a running order book position of around
INR350 Cr.
* Support from Government of India/ Holding company: Being a part
of HMT Ltd, a central Government entity, HMTMTL has received
support from GOI/HMT Ltd. As on March 31, 2020, the total borrowing
from GoI including preference share capital stood at INR1074.75 Cr.
During 10MFY21, company received support of INR18 Cr (FY20: INR68
Cr, FY19: 135.75 Cr) from its holding company HMT Ltd.
Liquidity: Poor
The company's gross cash accruals continued to remain negative
during FY20. The company's current ratio was 0.22x as on March 31,
2020 and the operating cycle stretched to 386 days in FY20 against
249 days in FY19. Company's average fund based/non-fund based
working capital are nearly fully utilized during the past 12 months
ending Jan'21. As on Sept 30, 2020, the company's free cash and
bank balance was INR2.46 Cr. Company has availed the moratorium
granted by lenders as a part of RBI's Covid19 regulatory policy for
on its fund based limits.
HMT Machine Tools Limited is a 100% subsidiary of HMT Limited,
incorporated in 1953 by the Government of India. HMTMTL is engaged
in manufacturing of turning, grinding, gear cutting, special
purpose machines, die casting machines and plastic injection
molding machines, presses and press brakes, printing machines, CNC
control systems and precision components. Its manufacturing plants
are located at Bengaluru, Pinjore (Haryana), Hyderabad (Telangana),
Ajmer (Rajasthan) and Kalamassery (Kerela).
INDIGLOBAL TRADELINKS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Indiglobal Tradelinks Private Limited
Lower Ground Floor, 108 B
Madangir Village
New Delhi 110062
India
Insolvency Commencement Date: February 18, 2021
Court: National Company Law Tribunal, New Delhi Bench III
Estimated date of closure of
insolvency resolution process: August 17, 2021
(180 days from commencement)
Insolvency professional: Mohd Nazim Khan
Interim Resolution
Professional: Mohd Nazim Khan
MNK & Associates
Company Secretaries
G-41, Ground Floor
West Patel Nagar
Delhi 110008
E-mail: nazim@mnkassociates.com
cirp.indiglobal@gmail.com
Last date for
submission of claims: March 8, 2021
INDUSTRIAL HANDLING: CARE Cuts Rating on INR15cr LT Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Industrial Handling (IH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB-; Stable and moved
to ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from IH to monitor the rating
vide e-mail communications/letters dated September 30, 2020,
October 19, 2020, November 5, 2020 and November 26, 2020, December
18, 2020 and February 1, 2021 and numerous phone calls. However,
despite CARE's repeated requests, the entity 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,
Industrial Handling has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. The rating on
IH's bank facilities will now be denoted as CARE B+; Stable; 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.
Detailed description of the key rating drivers
At the time of last rating in February 3, 2020 the following were
the rating weaknesses and strengths:
Key Rating Weaknesses
* Small scale of operations with significant debt repayment
obligation: The scale of operations of the firm remained small
marked by its total operating income (TOI) of INR38.77 crore (FY18:
INR37.79 crore) with a PAT of INR3.90 crore (FY18: INR3.64 crore)
in FY19 (refers to the period April 1 to March 31). However, the
TOI of the firm has grown at a compounded annual growth rate of
8.65% during FY17-FY19 due to higher order in hand and timely
execution of the same. Furthermore, the firm has achieved the TOI
of around INR34.96 crore during 9MFY20. Moreover, the networth base
of the entity remained modest at INR30.84 crore as on March 31,
2019. The small size restricts the financial flexibility of the
firm in times of stress and deprives it from benefits of economies
of scale. Moreover, the firm has large repayment obligations over
the next few years. The repayment obligations remain quite high in
comparison with the current accrual levels for the firm.
* Proprietorship nature of constitution: IH, being a proprietorship
firm, is exposed to inherent risk of withdrawal of capital by the
proprietor, restricted access to funding and risk of dissolution on
account of poor succession planning. Furthermore, proprietorship
firms have restricted access to external borrowing as credit
worthiness of proprietor would be the key factors affecting credit
decision for the lenders.
* Capital as well as working capital intensive nature of
operations: The operations of the firm is capital intensive in
nature as it requires to consistently purchase new equipment for
providing on hire basis to its clients. The operations of the firm
also remained highly working capital intensive mainly due to high
receivable period. The firm mainly executes orders for government
units and large private players and the collection from them delays
due to procedural delay and its low bargaining power. Moreover, the
average working capital utilization was around 88% over the last 12
months ending December 31, 2019.
* Leveraged capital structure: The capital intensive nature of
operations requires the firm to consistently purchase new equipment
to meet the increasing demand of its clients and accordingly, the
firm depends on the external loans for funding its fleets which has
resulting in leveraged capital structure of the firm in the past
years. The overall gearing ratio has improved but remained
leveraged at 2.02x (2.12x as on March 31, 2018) as on March 31,
2019. High gearing ratio was on account of availment of equipment
loans and higher utilization of working capital bank barrowings.
* Intensely competitive industry with tender driven process risk:
The firm has to bid for most of the contracts based on tenders
opened by various Government entities. Upon successful technical
evaluation of various bidders, the lowest bid is awarded the
contract. Since the type of work done by the firm is mostly
commoditized, the firm faces intense competition from other
players.
Key Rating Strengths
* Experienced proprietor with long track record of operations: The
firm is into same line of business since 1995 and thus has long
track record of operations. Due to its long track record of
operations, the proprietor has established relationship with its
existing clients and gets repeat work orders from them.
Furthermore, Mrs. Champa Nandi (aged about 58 years) has an
experience of more than two decades in the same line of business.
She looks after the overall management of the firm, with adequate
support from her husband Ranjan Nandi who also has long experience
in the same line of business.
* Healthy profit margins: The profitability margins of the firm
remained healthy marked by PBILDT margin of 53.33% (FY18: 55.45%)
and PAT margin of 10.07% (FY18: 9.64%) in FY19. The profitability
margins of the firm remained healthy as the firm generates turnover
mainly from rental income and its expenses is mainly limited to
manpower and administrative expenses only. The PBILDT margin
marginally deteriorated in FY19 mainly due to increase in
consumables materials and other expenses. However, the PAT margin
improved due to low interest expenses in FY19.
* Satisfactory order book position and reputed client base: The
value of orders in hand (including on-going works) was satisfactory
at INR55.02 crore as on December 31, 2019, being 1.42x of TOI in
FY19 which are to be executed within next 36 months. The
satisfactory order book position reveals satisfactory revenue
visibility in near terms. The client profile of the firm includes
reputed public sector undertakings and other large corporates like
Indian Oil Corporation Ltd., Larsen & Tourbo Ltd, Tata Steel Ltd.,
GAC Ltd., Garden Reach Shipbuilders, Bridge & Roof Co. (India)
Ltd.; MCC PTA India Corp. Ltd. etc. Furthermore, considering the
client profile of IH, the risk of default is very minimal.
* Satisfactory debt coverage indicators: The debt coverage
indicators remained satisfactory marked by interest coverage of
3.19x (FY18: 2.85x) and total debt to GCA of 4.38x (FY18: 4.21x) in
FY18. Improvement in interest coverage is mainly due to low
interest expense. However, the total debt to GCA has marginally
deteriorated in FY19 mainly due to increase debt level.
Haldia (West Bengal) based, Industrial Handling (IH) was
established as a proprietorship firm in April 1995 by Mrs. Champa
Nandi. The firm has been engaged in providing equipment like crane,
locomotive engine, man lift, forklift, oil suction unit (Mosru),
hydra; trailer etc. on hire basis to various manufacturing
companies along with experts technical services and skilled
manpower. Currently, the firm has a fleet size of 60 nos. of cranes
with small to large sized heavy duty hydraulic & crawler cranes
with capacity ranging from 20 metric tons to 400 metric tons. The
firm procures orders mostly through tender and executes orders
floated by the various Govt. and large private entities. However,
the moratorium has been availed on EMI's repayment of equipment
loan taken from ICICI bank from March to August 2020 as per the RBI
circular. Moreover, the entity has not availed any moratorium for
the other facilities from its lender.
KALYANI CONSTRUCTION: CARE Moves D Debt Rating to Not Cooperating
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Kalyani
Construction (KC) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.35 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from KC to monitor the rating
vide e-mail communications/letters dated July 7, 2020, September
30, 2020, November 6, 2020, November 24, 2020, January 7, 2021,
February 9, 2021 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the rating. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on KC's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
However, Banker could not be contacted.
Detailed Rationale & Key Rating Drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: There are on-going delays in
the debt servicing of the entity. As per the bank statement
received there are ongoing delays in repayment of principal and
interest of the term loan.
Kalyani Construction was established on April, 2001 as a
proprietorship entity and it is being managed by Mr. Kajal Ghosh.
Since its incorporation, the entity has been engaged in development
of commercial and residential real estate projects. In past, the
entity has developed various real estate projects in Barrackpore,
Kolkata namely, Anima Apartment, Tanuka Apartment, Srish Apartment,
Anandadham, Kalyani Apartment, Khan Mansion, Upasana Apartment,
Baishakhi Apartment, Amrabati Apartment, Swadesh Kunj, Addama
Bhavan. The promoter (Mr. Kajal Ghosh) has satisfactory business
experience of around 19 years in real estate industry.
KAMAKSHI STEELS: CARE Moves D Debt Rating to Not Cooperating
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Kamakshi
Steels Pvt Ltd (KSPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from KSPL to monitor the ratings
vide e-mail communications dated October 9, 2020 to February 12,
2021 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 best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on KSPL's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Kamakshi Steels
Private Limited (KSPL) factors in stretched liquidity on account of
slowdown of business operations on account of Covid-19 pandemic
resulting in delays in debt servicing.
Detailed description of the key rating drivers
At the time of last rating on January 8, 2021; the following were
the rating strengths and weaknesses:
Key Rating Weakness
* Stretched liquidity with delays in debt servicing: Due to the
onset of Covid-19 in March 2020 and resultant slowdown in the
economy, KSPL was unable to resume operations post lifting of
lockdown by the Government in May 2020 and the business operations
have slowed down considerably. Consequently the liquidity has been
stretched resulting in delays in debt servicing.
Key Rating Strengths
* Experience promoters and management team: The company has been
promoted by Mr. P. Seetharamaiyya and presently, Mr P. Krishna
Reddy is the Managing Director of the company. He is an engineering
graduate and has been associated with the company for the past 5
years. Apart from KSPL, he holds directorial designation in other
group entities viz. SDV Energy Private Limited which is engaged in
power generation and Sameera Paper Industry Private Limited which
is into manufacturing of paper and paper products.
Kamakshi Steels Private Limited (KSPL) was incorporated in December
16, 2003 and is engaged in manufacturing of TMT Rebars and Billets
with installed capacity of 36,000 MTPA (for TMT Rebars) at its
facilities located at Krishna District, Andhra Pradesh. The TMT
Rebar forms major sales component (around 95%) with majority of
billets utilized for captive consumption and balance sold in the
market. The company produces TMT bars of various sizes viz. 8mm,
10mm, 16mm, 20 mm and 25mm, as per requirements of client. The
company usually caters to coastal regions of Andhra Pradesh viz
Krishna District, West Godavari, Guntur, Nellore, Chittoor and
Prakasham District.
MITHRA YARNS: CARE Lowers Rating on INR5.50cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Mithra Yarns Private Limited (MYPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 2, 2019 placed the
rating of MYPL, under the 'issuer non-cooperating' category as MYPL
had failed to provide information for monitoring of the ratings.
MYPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated April 2020 to February 8, 2021. 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. Moratorium was availed by
the company from March 2020 to August 2020.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The revision in the rating considers the non-availability of
requisite information due to non-cooperation by Mithra Yarns
Private Limited with CARE's efforts to undertake a review of the
outstanding ratings as CARE views information availability risk as
key factor in its assessment of credit risk profile.
Detailed description of the key rating drivers
(Updated for the information available from ROC)
Key Rating Weaknesses
* Risk towards project implementation and stabilization of
operations: MYPL is establishing a yarn manufacturing unit with a
proposed total capacity of 4.5 tons per day. The total project cost
of INR9.53 crore. For the establishment of unit, the company has
already availed bank facilities from the Andhra Bank i.e., (Term
loan and Cash credit) of INR4.50 crore & INR1.00 crore and INR5.03
crore is being invested by promoters. Therefore, the ability of the
company to complete the project without any cost or time over run
will remain critical from credit perspective.
* Leveraged capital structure: The capital structure of the company
marked by debt equity and overall gearing ratio stood leveraged at
2.65x and 3.24x as on March 31, 2019.
* Seasonal nature of availability of cotton resulting in working
capital intensive nature of operations: The cotton industry is
highly fragmented in nature with several organized and unorganized
players. Prices of raw cotton are highly volatile in nature and
depend upon the factors like area under cultivation, crop yield,
and demand-supply scenario. The cotton processing operators procure
raw materials in bulk quantities to avail discount from suppliers
to mitigate the seasonality associated with availability of cotton
resulting in higher inventory holding period. Further, the
profitability margins of the firm are susceptible due to
fluctuation in raw material prices.
Key Rating Strengths
* Experience of the promoters for more than a decade in cotton
industry: MYPL is promoted by Mr. Sandeep Kumar and by Mrs. Jyothi.
Mr. Sandeep Kumar, Managing Director of the company, is a graduate
and has experience of more than one decade in cotton industry.
Prior to MYPL, Mr. Sandeep was engaged in the business of trading
of yarn and fiber products. The company is likely to be benefited
by its qualified and experienced promoter.
Location advantage
The manufacturing unit of MYP is located at Thangallapally, Rajanna
Sircilla which is well known for textiles in Karimnagar District.
The manufacturing unit is located in close proximity to cotton
spinning units which ensures the easy availability of raw material
access i.e. cotton waste and smooth supply of raw materials at
competitive prices and lower logistic expenditure.
* Financial closure of the project has been achieved: The promoters
of the company are establishing a yarn manufacturing unit at
Thangalapally, Karimnagar Dist. With estimated total cost of
INR9.53 crore which is to be funded through bank term loan of
INR4.50 crore and remaining cost of INR5.03 crore from promoter's
fund. Furthermore, the financial closure of the total project has
been achieved.
* Stable outlook of cotton industry: Cotton plays an important role
in the Indian economy as the country's textile industry is
predominantly cotton based. India is one of the largest producers
as well as exporters of cotton yarn. The Indian textile industry
contributes around 5 per cent to country's gross domestic product
(GDP), 14 per cent to industrial production and 11 per cent to
total exports earnings. The industry is also the second-largest
employer in the country after agriculture, providing employment to
over 51 million people directly and 68 million people indirectly,
including unskilled women. The textile industry is also expected to
reach US$223 billion by the year 2021. The states of Gujarat,
Maharashtra, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh,
Haryana, Rajasthan, and Punjab are the major cotton producers in
India.
Mithra Yarns Private Limited (MYPL) was incorporated in the year
2017 as a private limited company by Mr. Sandeep Kumar (Managing
Director) and Mrs. Jyothi (Director) having its registered office
at Secunderabad, Telangana with an object to carry on the
manufacturing of cotton yarns, threads and fiber related products.
The promoters of the company have experience of more than a decade
in textile Industry.
NASIR ILAHI: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nasir Ilahi
& Co. (NIC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; 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 NIC under the 'issuer noncooperating' category as NIC
had failed to provide information for monitoring of the rating. NIC
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 27, 2021, January 29, 2021. 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 January 30, 2020 the following were
the rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Project funding and execution risk: NIC is planning to develop 4
sheds with 10000 parent broilers each. Execution of project is
started in January 2018 and expected to be completed in March 2019.
Total estimated cost of the project is INR8.40 crore which is
proposed to be funded through partner's owned funds of INR3.90
crore and balance thorough bank borrowing of INR4.50 crore, however
debt is not yet tied up. As on November 30, 2018, company has
incurred expenses of INR2.00 crore towards land purchase,
construction of sheds through partner's funds. Thus going forward
NIC's ability to timely tie-up the bank debt to complete the
balance project in timely manner without any cost and time overrun
with repayment commencing from June 2019 thus timely receipt of
accruals to meet the debt obligation shall be critical from credit
perspective.
* Susceptibility of margins to fluctuation in prices of feed: The
major raw material for entities engaged in poultry business is the
poultry feed which is expected to be ~78% of the total cost in
FY20. NIC's profitability will be vulnerable to the volatility
associated with feed prices. Maize is the primary source of energy
whereas soybean is the primary source of protein for chicks. Maize
is relatively grown in smaller quantity in India and being a
rain-fed crop, any failure in monsoon can materially impact the
harvest. The poultry industry is estimated to consume nearly 50% of
the domestic maize production and the demand for maize is expected
to exceed the overall supply of maize in the future. In case of
soybean, although there is adequate availability, its prices remain
volatile in relation to movement in global prices and production.
As the poultry industry is virtually a buyers' market, producers
may not be able to pass on any sharp increase in raw material
prices to the end users.
* Inherent risk associated with the poultry industry coupled with
high competition from local players: The poultry industry is driven
by regional demand and supply because of transportation constraints
and perishable nature of the products. Low capital intensity and
low entry barriers facilitate easy entry of players leading to a
large unorganized sector. Poultry industry is also vulnerable to
outbreaks of diseases, like bird flu, extreme weather conditions
and contamination by pathogens. The outbreak of bird flu leads to a
fall in demand and consequent sharp crash in the egg/meat prices.
Diseases can also impact production of healthy chicks. Furthermore,
the poultry industry is highly fragmented and competitive marked by
the presence of numerous players in India. Given the fact that the
entry barriers to the industry are low, the players in the industry
do not have pricing power and are exposed to competition induced
pressures on profitability.
Key Rating Strengths
* Experienced and resourceful partners: NIC is founded by Mr. Nasir
Ilahi and Mr. Wasim Ilahi, Mr. Dinesh Singh and Mr. Sukhchain
Singh. Mr. Dinesh Singh and Mr. Sukhchain Singh belong to family
having poultry farming business and have rich experience in running
of hatchery, trading of poultry feed, medicines and running poultry
feed mill. Mr. Nasir Ilahi and Mr. Wasim Ilahi are having long
experience in trading of eggs. All the partners look after overall
management of the firm. Further partners also plan to hire
experienced manpower of 25 employees who will look after various
day to day.
Nasir Ilahi & Co. (NIC) was established on June 2017 as a
partnership firm by Mr. Nasir Ilahi and Mr. Wasim Ilahi, Mr. Dinesh
Singh and Mr. Sukhchain Singh. Firm is engaged in chicken egg
hatchery business and its hatchery farm is located in Meerut, Uttar
Pradesh. Firm has proposed to sell chicks to bird growers. Firm is
planning to develop 4 sheds with 10000 parent broilers each.
NCL GREEN: Ind-Ra Assigns Prov. 'B+' to Non-Convertible Debentures
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned NCL Green Habitats
Private Limited's proposed non-convertible debentures (NCDs) a
'Provisional IND B+' rating. The Outlook is Stable.
The instrument-wise rating action is:
-- INR500 mil. Proposed NCDs* assigned with Provisional IND
B+/Stable rating.
*The final rating will be assigned following the issuance and the
receipt of the final executed transaction documentation, conforming
to the information already received by Ind-Ra.
NCL Green plans to issue two unlisted, secured redeemable NCDs on a
private-placement basis, aggregating INR500 million in 4QFY21. One
NCD will have a coupon rate of 11% per annum (quarterly coupon
payments) with a tentative maturity of three years and the other
will have coupon rate of 11.42 per annum (annual coupon payments)
with a tentative maturity of five years. The NCDs are being issued
as a part of restructuring the customer advances (inter group debt)
paid for the purchase of land. As per the management, the
redemption of the NCDs could stretch over the next seven-to-eight
years based on the cashflows from the Hosur project. The major
portion of NCDs (INR400 million) will be used to repay the inter
group debt.
KEY RATING DRIVERS
The rating reflects the saleability risk associated with NCL
Green's ongoing Hosur plot development project, with a saleable
area of 810,618 square feet in Tamil Nadu. The construction for the
project commenced in April 2020, and as of December 2020, the
company had completed 83% construction at a total estimated project
cost of INR731.4 million. The management expects the same to be
completed by September 2021. As of December 2020, the company had
not commenced bookings or sold any plots. The average realization
of the project's area is INR2,116 per square feet and the
management expects the total saleable area to be booked over
FY22-FY26. The vulnerable macro-economic factors, which affect
discretionary consumer spending, result in the saleability risk.
Liquidity Indicator- Poor: As of December 2020, NCL Green had not
booked any plots from the Hosur project. Therefore, the company has
to depend on the promoters’ support. In the past the promoters
have supported the company when its obligations were not met as
there were no ongoing projects till FY20.
The rating, however, is supported by the company's promoters and
group companies' funds infusion, since 2001, to purchase a land
parcel of 192 acres, in the states of Andhra Pradesh, Telangana and
Tamil Nadu. As on March 2020, the company did not have any external
debt and only had inter-corporate deposits of INR263.9 million and
advances from promoters of INR504.2 million.
RATING SENSITIVITIES
Positive: The successful completion of the project with envisaged
cash inflows from the sale resulting in an improvement in the
liquidity position would be positive for the ratings.
Negative: Any increase in the saleability risk, resulting in high
unsold inventory and further stress on the liquidity position would
be negative for the ratings.
COMPANY PROFILE
Incorporated in 2001, NCL Green is engaged in the business of
purchase and sale of land and real estate. It is wholly owned by
NCL Holdings (A&S) Ltd, which is also into a similar line of
business.
The company is developing a project in Hosur, which is located 25km
from the Bommasandra Industrial Area in Bengaluru. The project's
proximity to the Bengaluru city provides it with a locational
advantage.
OMAX AUTOS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Omax Autos
Limited's Long-Term Issuer Rating to 'IND BB (ISSUER NOT
COOPERATING)' from 'IND BBB- (ISSUER NOT COOPERATING). The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency.
The instrument-wise rating actions are:
-- INR850 mil. Fund-based working capital limits downgraded with
IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR350 mil. Non-fund-based working capital limits downgraded
with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR1,553.3 bil. Term loans due on FY27 downgraded with IND BB
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best-available information.
KEY RATING DRIVERS
The two-notch downgrade reflects Omax's continued weak operational
performance in 3QFY21 according to the information available in the
public domain. The revenue declined 71% yoy to INR290 million and
42% from 2QFY21. The revenue declined 73% yoy to INR743 million in
1HFY21 (1HFY20: INR2,740 million) on the back of the COVID-19 led
lockdown and the resultant economic disruptions. The company
reported EBITDA losses of INR167 million in 3QFY21 (3QFY20: profit
of INR24 million, 2QFY21: loss of INR22 million). Ind-Ra believes
the deterioration in 3QFY21 operating performance could be due to
the slow pick up in the railways segment, which accounted 43% of
the FY20 revenue as well as the planned closure of its passenger
vehicles facilities in 2QFY21.
During 9MFY21, the revenue plunged 72% yoy to INR1,033 million and
the company reported EBITDA losses of INR279 million, against a
profit of INR209 million in 9MFY20. The company reported a total
interest expense of INR222 million during 9MFY21.
The ratings have been maintained in the non-cooperating category as
the company did not participate in the rating exercise, despite
requests by the agency, and has not provided information about
sanctioned bank facilities, cash flow management, utilization of
working capital, business plan, asset monetization plans and
projections for the next three years. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings.
COMPANY PROFILE
Founded in 1983, Omax, a publicly-listed company, with promoters
owing a 57.4% stake. It manufactures a variety of auto parts for
commercial vehicles. The company also manufactures end walls, under
frame, front part, and bio-digester retention tank for railways.
Omax exited the two-wheeler segment in 4QFY19. It has four
manufacturing plants, located in Bawal (Haryana), Lucknow (Uttar
Pradesh), Pant Nagar (Uttarakhand), and Raebareli (Uttar Pradesh),
which caters to the commercial vehicle segment, was commissioned in
January 2021. The company closed down two plants at Binola
(Haryana) and Bengaluru (Karnataka) due to commercial
non-viability. It is setting up a plant near Lucknow to expand its
railways segment.
PANCHSHEEL BUILDTECH: CARE Reaffirms D Rating on INR279.01cr Loan
-----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Panchsheel Buildtech Private Limited (PBPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 279.01 CARE D Reaffirmed
Non Convertible
Debentures 93.90 CARE D Reaffirmed
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of PBPL continues to be
constrained by ongoing delays in debt servicing by the company on
account of stretched liquidity position.
Key Rating Sensitivity
Positive Factors
* Timely repayment of its debt on timely basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: As per the NDS received from
the client, there are ongoing delays in debt servicing by
Panchsheel Buildtech Private Limited.
* High dependence on customer advances for project execution and
debt repayment: PBPL has proposed to fund the overall project cost
of INR2,864 Cr through Promoter funds of INR246 Cr, debt of INR536
Cr and remaining through customer advances of INR2082 Cr
[0.08:0.18:0.72 (Equity: debt: customer advances)].
* Project Execution Risk: PBPL is currently executing six projects
with total salable area of 98.68 lsf. All the necessary approvals
for the said projects have already been acquired. Since, the
company is successfully executing the projects and the past
experience of the promoters of delivery of projects mitigates risks
of project execution to some extent.
Support to Group Company - Valuent Infradevelopers Private Limited
(VIPL)
PBPL has extend explicit support to one of its group entity Valuent
Infradevelopers Private Limited by being a co borrower to the debt
of INR81 Cr availed for the development of the project Panchsheel
Pratishtha. The project is completed. This creates additional
liability on PBPL in case VIPL is not able to service its debt
obligation.
Subdued real estate scenario coupled with impact of Covid-19 In
Real estate sector, prices are likely to remain stagnant and
developers will continue to focus on clearing existing inventory
rather than launching new projects as they continue to grapple with
regulatory changes like Real estate (regulation and development)
Act, 2016 (RERA), goods and services tax (GST) and overall subdued
demand. In fact, 2020 is expected to be another tough year for real
estate developers, given the ongoing liquidity problem, owing to
the NBFC crisis.
Now, in light of the situation which was created by COVID-19 it had
worsened the persisting liquidity crunch in the real estate sector.
Various restrictions imposed by the Indian Government to curb the
pandemic had also led to a temporary halt in ongoing real estate
projects which also had a domino effect w.r.t. the large scale
reverse migration of labourers and disruption in supply chain of
materials.
Liquidity Analysis: Weak
The liquidity profile of Panchsheel Buildtech Private Limited
remains weak. Due to mismatch between project receipts vis a vis
the debt repayment obligations the liquidity of Panchsheel
Buildtech Private Limited remains constrained.
Key Rating Strengths
* Experienced promoters and track record in real estate business:
Panchsheel Buildtech Private Limited incorporated in 2006 is the
flagship company of Panchsheel Group. The Company derives strength
from extensive experience of its promoter Mr. Ashok Chaudhary who
has over two decades of experience in undertaking commercial &
residential projects in Delhi & NCR region. The group has to its
credit the successful completion of residential and commercial
complexes admeasuring 38 lsf primarily in Ghaziabad, Indirapuram
and Sahibabad. The projects successfully delivered by group
includes Greenaria, Panchsheel Well Bazaar, Panchsheel Square,
Panchsheel Primrose and Panchsheel Wellington.
Panchsheel Buildtech Private Limited (PBPL), incorporated in
December 2006 and is the flagship company of Panchsheel group. The
group is engaged in the residential and commercial real estate
development in the Delhi NCR region, majorly catering to Noida and
Ghaziabad regions. The group promoted by Mr. Ashok Chaudhary, Mr.
Anuj Kumar and family members have successfully delivered projects
of approximately 38 lsf in Ghaziabad, Indirapuram and Sahibabad
area (Delhi NCR Region) and have an extensive experience of over
two decades in the real estate industry.
REWARD BUSINESS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Reward Business Solutions Private Limited
A 413, 4th Floor, Plot No. 711 A
Byculla Services Premises Industrial Estate
D.K. Road, Ghodapdeo
Byculla Mumbai 400027
Insolvency Commencement Date: February 18, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: August 17, 2021
Insolvency professional: Mr. Piyush Kisanlal Jani
Interim Resolution
Professional: Mr. Piyush Kisanlal Jani
"Om Ashray", Behind Mazar
Ring Road, Gondia (M.S.)
E-mail: capiyushj@gmail.com
- and -
C/o Jitendra Yadav
11, Singh House, 2nd Floor
23 Ambalal Doshi Marg
Near Bombay Stock Exchange
Fort, Mumbai 400001
E-mail: cirp.rewardbusiness@gmail.com
Last date for
submission of claims: March 9, 2021
SHIVAJI CANE: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Shivaji Cane Processors Limited
Plot No. D4, MIDC Area
A/p MIDC Shirala
Tal-Shirala, Shirala Sangli
MH 415408
IN
Insolvency Commencement Date: February 28, 2021
Court: National Company Law Tribunal, Pune Bench
Estimated date of closure of
insolvency resolution process: August 16, 2021
(180 days from commencement)
Insolvency professional: Ritesh Ragunath Mahajan
Interim Resolution
Professional: Ritesh Ragunath Mahajan
B-203 Devgiri, Ganeshmala
Sinhagad Road
Pune 411030
Maharashtra
E-mail: riteshmahajancs@gmail.com
shivajicanecirp@gmail.com
Last date for
submission of claims: March 3, 2021
SHIVAM PIPE: CARE Moves D Debt Ratings to Not Cooperating
---------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Shivam
Pipe Industries (SPI) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SPI to monitor the rating
vide e-mail communications/letters dated September 30, 2020,
October 19, 2020, November 5, 2020 and November 26, 2020, December
18, 2020 and February 10, 2021 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. The rating on
SPI'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.
Detailed description of the key rating drivers
At the time of last rating in March 6, 2020 the following were the
rating weaknesses and strengths:
Key Rating Weaknesses
* On-going delay in debt servicing: There is on-going delay in debt
servicing of the firm owing to inadequate cash accruals from
operations and weak liquidity position.
Guwahati based Shivam Pipe Industries (SPI) was established as a
partnership firm in 2009. However, it has commenced its operation
from April 2012. The firm has been engaged in manufacturing of ERW
pipes and steel tubular pole (MS & GI) with a production capacity
of 12,000 MTPA and 5,000 MTPA respectively at its plant located at
Kamalpur in Guwahati.
SHRIKISHAN & COMPANY: Ind-Ra Moves 'BB' Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shrikishan &
Company Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 30, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2005 and promoted by Sharad Goyal and Sarita
Agrawal, Shrikishan & Company is engaged in the construction and
maintenance of roads and bridges for government bodies in
Chhattisgarh. The company is registered as a Class-A contractor by
the government of Chhattisgarh with Public Works Department,
Chhattisgarh.
SHRIKISHAN PRORIETORSHIP: Ind-Ra Moves BB Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shrikishan &
Company's Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise, despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based limits migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR230 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 30, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shrikishan & Company, incorporated in 1994, is a sole
proprietorship firm promoted by Sushil Agarwal. It is a Class-I
civil contractor for the Public Works Department in Chhattisgarh,
which is engaged in the construction and maintenance of roads and
bridges for government bodies in Chhattisgarh.
SOUTH GANGA: CARE Reaffirms B+ Rating on INR12.76cr LT Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of South
Ganga Waters Technologies Private Limited (SGWTPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 12.76 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SGWTPL continue to
be constrained by lower capacity utilization, stretched liquidity,
leveraged capital structure and continued deterioration in
financial performance. The ratings however, derive strength from
experienced promoters and long operational track record.
Rating Sensitivities
Positive Factors
* Increase in scale of operations by increase in off take from
existing customers or addition of new customers
* Increase in PBILDT margin beyond 50% on a sustained basis
Negative Factors
* Deterioration in profitability leading to operating loss
* Reduction in off take
Detailed description of the key rating drivers
Key Rating Weaknesses
* Lower capacity utilization and industry scenario: Sterlite's
water off take from SGWTPL has stopped from March 27, 2018 onwards
due to shutdown of the Sterlite's plant in view of pollution
related issues. Loss of its business from key client and
non-renewal of contract with A.M.S. Corporate Services Private
Limited (for supplying to Southern Petrochemical Industries
Corporation) has resulted in lower capacity utilization for SGWTPL.
The capacity utilization has been low at about 22% in FY20 and
continues to remain at subdued levels for FY21. The company, at
present, is supplying desalinated water to natural gas based power
plants in Ramnad. In Thoothukudi, the company is supplying
desalinated water to chemical industries. The Covid- 19 pandemic
and subsequent lock-down imposed by the government has led to
temporary shutdown of operations of industries. Due to this
domestic electricity generation during the 5 months period ended
August 2020 in FY20 was lower by 11% during the corresponding
period last year. Decline in generation was primarily led by lower
output from conventional energy source (thermal, hydro, nuclear).
Plant load factor of thermal power plants has dropped to multi-year
lows of 48.5% during this period compared to 59.2% in the year ago
period. The company's operations were also temporarily stopped due
to lock-down measures imposed by the government to contain the
Covid–19 outbreak. The company's plants were closed till June
2020. From July 2020, plants started operations and started
supplying water for the clients who have started their operations.
The company's plants will scale up its operations simultaneously
with the ramping of operating of the industry and power plants for
which the company supplies water. The company would continue rely
on the promoter support for meeting its debt obligations till the
ramping up of the operations and the company becoming
self-sustaining.
Liquidity – Stretched
Stretched liquidity marked by lower gross cash accruals of INR1.35
crore as against higher repayment obligations in FY20. The company
has a modest cash balance of INR1.45 crore as on March 31, 2020.
The short-fall was met through equity infusion and support from
Group Company. The management has provided demonstrated support
through fund infusion in the past. The average working capital
utilization has reduced to around 80% for the 12 month period ended
31, January 2021. The company has availed moratorium option for
interest and principal portion of the term-loan and interest on
cash credit facility for the period March 2020 to August 2020 to
manage the liquidity.
* Continuous deterioration in financial performance: The company's
total revenue from operations declined from INR35.59 crore in FY18
to INR9.57 crore in FY19 and further to INR8.24 crore in FY20. With
lower revenue and under absorption of fixed overheads the company
reported net loss of INR4.59 cr in FY20 (PY: Loss of INR5.7 cr).
PBILDT margin declined and stood lower at 42.36% in FY20 compared
to the higher levels of margin when the plant was operating at
higher capacity utilisation in the past.
* Leveraged capital structure: The company's capital structure is
vulnerable due to past capital expenditure which were done mainly
through bank borrowings. Overall gearing stood at 2.38x as on March
31, 2020 vis-à-vis 2.79x as on March 31, 2019. The debt protection
metric was moderate marked by interest coverage of 1.60x in FY20
and TDGCA of 21.70 years as on March 31, 2020.
Key rating Strengths
* Experienced Promoters and Long operational track record:
Promoter, Mr S Ramesh, an alumnus of IIM Ahmedabad, has more than
three decades of industrial experience working for major power
generation companies in India and Indonesia. He was heading the
Indian operations for US based power major, Covanta Energy before
setting up Operational Energy Group India Ltd (OEG; CARE BBB;
Stable/CARE A3) in 1994. OEG currently manages operations for power
plants with cumulative capacity of around 5,000 MW. Ramesh
established SGWTPL in 2004 to provide an alternative water source
for OEG India's clients in the power sector with an initial
capacity of 0.8 MLD in Ramnad.
During 2009, the company obtained approval to set up 10 MLD
desalination plant at Tuticorin and operations began in 2012 with
an initial capacity of 1 MLD which has gradually increased to 6 MLD
as on March 31, 2018.
OEG is a profitable venture and has a comfortable cash balance of
INR32.68 crore as on 30, September 2020. In the past, OEG had
provided support to SGWTPL in the form of unsecured loan of
INR11.25 crore which was later converted to preference shares in
FY17.
Chennai-based South Ganga Waters Technologies Private Limited
(SGWTPL) operates two sea water desalination plants in Ramnad and
Tuticorin districts of Tamil Nadu with a cumulative capacity of 6.8
MLD (1 MLD X 6 in Tuticorin; 0.8 MLD in Ramnad; MLD: Million Litres
per Day). SGWTPL is a part of OEG group, whose flagship company
Operational Energy Group India Pvt. Ltd. is engaged in providing
operations and maintenance services for power plants.
UMA SPINTEX: CARE Withdraws D Rating on Bank Facilities
-------------------------------------------------------
CARE Ratings has withdrawn the ratings on certain bank facilities
of Uma Spintex India Private Limited (USIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category; Reaffirmed at CARE D;
ISSUER NOT COOPERATING and
Withdrawn
Detailed Rationale & Key Rating Drivers
CARE has reviewed the rating assigned to the bank facilities of
USIPL to 'CARE D; Issuer Not Cooperating' and has simultaneously
withdrawn it, with immediate effect. The rating withdrawal is at
the request of Uma Spintex India Private Limited and 'No Objection
Certificate' received from the banks that have extended the
facilities rated by CARE.
Detailed description of the key rating drivers
At the time of last rating on February 26, 2020 the following were
the rating strengths and weaknesses.
Key Rating Weakness
* Delay in meeting the debt obligations: The company has been
delaying in meeting the debt obligations on time on account of
strain in the liquidity position.
Uma Spintex India Private Limited (USIPL) was incorporated as a
private limited company on 15th April, 2010 with an objective of
setting up cotton spinning mills for manufacturing cotton yarn. The
company is primarily engaged in manufacturing of cotton yarn in
counts of 40s combed warp, 32s carded warp and 40s carded warp. The
company initially set up a spinning mill unit with 18,720 spindles
at Tamirisa Village, Krishna district under Phase I which commenced
operations from October, 2011. The company further expanded its
production capacity with a new unit under Phase II with additional
21,216 spindles adjacent to the existing unit which commenced
production from May, 2015.
UNICON TECHNOLOGY: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Unicon Technology
International Private Limited (UTIPL) a Long-Term Issuer Rating of
'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR10.43 mil. Term loan due on August 2025 assigned with IND
BB-/Stable rating;
-- INR35 mil. Fund-based working capital limit assigned with
IND BB-/Stable rating; and
-- INR95 mil. Non-fund-based working capital limits assigned with
IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect UTIPL's small scale of operations with a
revenue of INR201.81 million in FY20 (FY19: INR212.49 million). The
decline in the revenue in FY20 was due to the fewer number of
orders executed during the period. Furthermore, the revenue booked
till 9MFY21 was INR147.95 million.
The ratings also reflect UTIPL's average EBITDA margin that
improved to 8.41% in FY20 (FY19: 6.56%) due to a decline in the
cost of raw materials. The return on capital employed was 12% in
FY20 (FY19: 8%).
The ratings also factor in UTIPL's moderate credit metrics with
interest coverage (operating EBITDA/gross interest expenses) of
2.58x in FY20 (FY19: 1.93x) and net leverage (adjusted net
debt/operating EBITDA) of 2.72x (2.79x). The improvement in the
credit metrics in FY20 was driven by a rise in the absolute EBITDA
levels to INR16.98 million (INR13.94 million).
Liquidity Indicator – Stretched: UTIPL's average maximum use of
its fund-based limits was around 77.7% during the 12 months ended
January 2021. The entity's cash flow from operations turned
negative to INR30.01 million in FY20 (FY19: positive INR34.93
million) on account of its increased working capital requirements.
Also, UTIPL's free cash flow turned negative to INR38.80 million in
FY20 (FY19: positive INR32.28 million). Moreover, the net cash
cycle deteriorated to 45 days in FY20 (FY19: 6 days) on account of
an increase in the average inventory days. Additionally, the cash
and cash equivalents stood at INR8.20 million in FY20 (FYE19:
INR14.66 million). UTIPL does not have any capital market exposure
and relies on banks and financial institutions to meet its funding
requirements. It had availed the Reserve Bank of India prescribed
moratorium over March-August 2020.
The ratings are, however, supported by the promoter's experience of
over five decades in the manufacturing of material handling
equipment.
RATING SENSITIVITIES
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics and liquidity profile,
all on a sustained basis, will lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics with the interest
coverage declining below 1.5x and/or further pressure on the
liquidity position, will be negative for the ratings.
COMPANY PROFILE
Incorporated in September 1976, UTIPL manufactures material
handling equipment. The company manufactures various kinds of
cranes as per the specific requirements of its customers. It also
manufactures spare parts and provides consultancy services to its
customers. The registered office is situated in Delhi and the
manufacturing units are in Noida, Uttar Pradesh.
UNIVERSAL TUBE: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Universal
Tube Accessories Private Limited (UTAPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.49 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 27, 2019, placed
the rating of UTAPL under the 'issuer non-cooperating' category as
UTAPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. UTAPL continues to be
non-cooperative despite repeated requests for submission of
information through email letter dated January 20, 2021, February
2, 2021, February 10, 2021 and numerous phone calls. 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 November 27, 2019, the following were
the rating weaknesses (Updated for the information available from
Registrar of Companies):
Key Rating Weaknesses
* Delay in debt servicing: There were ongoing delays in the
repayment of term loan and the account was classified as SMA-0
UTAPL was incorporated in September, 2011 for manufacturing of
steel tools and accessories required in the oil and gas industry.
The company is based in Pune (Maharashtra). The company's major
product was mandrel bars and other products included thread
protectors and helical anchors.
VIJAYA LAKSHMI: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vijaya
Lakshmi Tobacco Traders (VLTT) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 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 February 12, 2020, placed
the rating(s) of VLTT under the 'issuer non-cooperating' category
as Vijaya Lakshmi Tobacco Traders (VLTT) had failed to provide
information for monitoring of the rating. VLTT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated March
2020 to February 08, 2021. 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 February 12, 2020 the following were
the rating strengths and weaknesses:
Key Rating Weakness
* Overdrawing's in Overdraft Facility: Due to strained liquidity
position resulting in overdrawing's in Cash Credit account for more
than 30 days.
Andhra Pradesh based, Vijaya Lakshmi Tobacco Traders (VLTT) was
established in March 2016 as a partnership firm, by Mr. D.
Satyanarayana and Mrs.D.Vijaya Lakshmi. Vijaya Lakshmi Tobacco
Traders (VLTT) is an authorized licensed dealer in tobacco
registered with Tobacco Board for trading of Virginia tobacco. VLTT
is mainly engaged in trading of Virginia tobacco.
VOLT-AGE INFRA: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Volt-Age
Infra Private Limited (VIPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 9.50 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 28, 2019, placed
the rating of VIPL under the 'issuer non-cooperating' category as
VIPL had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. VIPL continues to be
non-cooperative despite repeated requests for submission of
information through email letter dated January 20, 2021, February
2, 2021, February 10, 2021 and numerous phone calls. 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 28, 2019, the following were
the rating weaknesses (Updated for the information available from
Registrar of Companies):
Key Rating Weaknesses
* Delay in debt servicing: There have been continuous delays in
servicing of debt obligations and the account was classified as
NPA
VIPL is engaged in design, supply, erection, testing and
commissioning of E.H.V. (Extra High Voltage), Turnkey outdoor
substation projects, hydropower projects, switchyard station, power
transmission lines and industrial lines, testing of electrical
equipment's, live line / hot line and offline maintenance on an
Engineering, Procurement and Constructin (EPC) basis. The company
was originally established as Voltage Infra & Power Projects Pvt.
Ltd. in May 2003. Later, the name of the company was changed to
Voltage Infra Pvt. Ltd w.e.f. 12th January, 2005. The company
started its operation since 2005 -06. The firm undertakes projects
on tender basis for various customers including government, semi
-government and private industrial entities.
=================
S I N G A P O R E
=================
SWIBER HOLDINGS: Wins Creditor Approval for Debt Restructuring Plan
-------------------------------------------------------------------
Kit Yin Boey at IFR reports that Swiber Holdings won overwhelming
approval from creditors for a debt-to-equity swap that will clear
the way for white knight Rawabi Holdings to implement a US$200MM
rescue package.
IFR relates that eight creditors, holding a total of US$592.8
million, voted for Swiber's restructuring proposal, representing
99.97% of the total value present at the creditor meeting on
February 23. Swiber's subsidiary Swiber Offshore Construction also
obtained approval from 98.89% of creditors present at the same
meeting for the proposal to swap debt into equity, IFR says.
According to IFR, Swiber's debt restructuring plan will involve
Saudi-based oilfield services group Rawabi investing US$200 million
in Swiber, of which SGD10 million will be for new ordinary shares
that will give it an 80% stake in New Swiber, and US$190 million in
new preference shares in either New Swiber or Equatoriale Energy,
another subsidiary.
Total new shares issued to creditors of Swiber Holdings, including
holders of its SGD150 million 6.5% bonds, will amount to a stake of
12.2% in the new entity called New Swiber and to 1.8% for Swiber
Offshore's creditors, the report says.
The upside of an equity stake in New Swiber looks promising,
according to an independent study of the entity by global valuation
firm BDO, IFR relays. The study, commissioned by Swiber, estimated
an indicative valuation range for equity holders of between US$1.12
billion and US$1.34 billion at the end of year six. Swiber Holdings
said this would lead to a recovery rate of between 12.4% and 14.8%
for its unsecured creditors, IFR relates.
Swiber will now seek regulatory and shareholder approvals for the
rescue and restructuring plan, with completion targeted for
mid-May, adds IFR.
About Swiber Holdings
Swiber Holdings Limited (SGX:BGK) -- http://www.swiber.com/-- is a
Singapore-based investment holding company. The Company, through
its subsidiaries, is engaged in offshore marine engineering; vessel
owning and chartering, and provision of corporate services. The
Company is an integrated offshore construction and support services
provider for shallow water oil and gas field development. It offers
a range of engineering, procurement, installation and construction
(EPIC) services, complemented by its in-house marine support and
engineering capabilities, to support the offshore field development
and production activities of its clientele base across the Asia
Pacific, Middle East, Latin America and West Africa regions. It
operates approximately 10 construction vessels. The Company's
subsidiaries include Swiber Offshore Construction Pte. Ltd., Swiber
Offshore Marine Pte. Ltd., Swiber Corporate Pte. Ltd., Resolute
Offshore Pte. Ltd. and Swiber Capital Pte. Ltd.
Swiber had $1.43 billion of liabilities and $1.99 billion of assets
at March 2016, as per the company's published accounts.
Swiber Holdings shocked the business world when it filed for
liquidation in July 2016 as several of its directors resigned. Only
a few days after the intent to liquidate, Swiber changed course and
applied for judicial management. Bob Yap Cheng Ghee, Tay Puay
Cheng and Ong Pang Thye of KPMG Services Pte Ltd. were appointed as
joint and several interim judicial managers of Swiber Holdings
Limited and Swiber Offshore Construction.
In May 2019, Swiber yet again escaped another liquidation scenario
when its creditors voted in favor of a restructuring proposal that
contemplated an equity investment from Seaspan Corporation. The
plan included a proposed investment from Seaspan of up to $200
million. That Investment Agreement has been terminated as of
January 2020.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***