/raid1/www/Hosts/bankrupt/TCRAP_Public/210317.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 17, 2021, Vol. 24, No. 49
Headlines
A U S T R A L I A
15 GREEN SQUARE: First Creditors' Meeting Set for March 24
GREENBATCH FOUNDATION: Second Creditors' Meeting Set for March 23
HOPKINS EMPIRE: First Creditors' Meeting Set for March 25
JMW TRAVEL: Second Creditors' Meeting Set for March 24
C H I N A
CHINA: Accelerating Bankruptcy Process of Heavily Indebted Firms
HNA GROUP: Court OKs Restructuring with Consolidation of 320 Units
SICHUAN TRUST: Fined $5.4 Million Over Shadow Banking Scandal
I N D I A
ANAGHA LAXMI: CRISIL Assigns B Rating to INR16cr Term Loan
ARHYAMA SOLAR: CARE Lowers Rating on INR11.98cr LT Loan to D
CABBANA INFRASTRUCTURES: CARE Cuts Rating on INR25cr Loan to B
DHANRAJ SOLVEX: CARE Withdraws D Rating on LongTerm Bank Debt
FILM FARM: CRISIL Reaffirms B+ Ratings on INR10cr Loans
FIROZABAD CERAMICS: CARE Moves D Debt Rating to Not Cooperating
GKMS COTTON: CARE Reaffirms D Rating on INR7.67cr LT Loan
HARIMAN SEEDS: CARE Lowers Rating on INR12cr LT Loan to B-
K K POLYCOLOR: CRISIL Moves B- Debt Ratings From Not Cooperating
KESHAV ENTERPRISES: CRISIL Reaffirms B+ Rating on INR.15cr Loans
NILKANTH CONCAST: CRISIL Withdraws B+ Rating on INR19.52cr Loan
OM SAI: CARE Migrates D Debt Rating to Not Cooperating Category
RAIPUR POWER: CARE Keeps D Debt Ratings in Not Cooperating
RAVIRAJ HI-TECH: CARE Withdraws D Rating on LongTerm Bank Debts
SHILPA ELECTRICAL: CARE Keeps D Debt Ratings in Not Cooperating
SONIC CERAMIC: CARE Keeps D Debt Ratings in Not Cooperating
SUBHLAXMI FOODS: CARE Cuts Rating on INR15cr LT Loan to B-
TECHNICO STRIPS: CARE Keeps D Debt Ratings in Not Cooperating
VIBISHNAN P: CRISIL Moves B Debt Ratings to Not Cooperating
WESTIN RESINS: CARE Moves D Debt Ratings to Not Cooperating
J A P A N
H.I.S. CO: Sales Plunge 80% in Nov.-Jan. Quarter Over Virus
N E W Z E A L A N D
MAGSONS HARDWARE: Nido Homeware Store to Close on March 21
S I N G A P O R E
ARTERIAL CAPITAL: JBS Practice Named as Provisional Liquidators
GLORY INVESTMENT: Deloitte & Touche Appointed as Judicial Managers
MCS HOLDINGS: Court to Hear Wind-Up Petition April 16
NEPHTECH PTE: Court Enters Wind-Up Order
OCEANUS GROUP: Refutes Rumours of 'Pump-And-Dump' Scheme
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A U S T R A L I A
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15 GREEN SQUARE: First Creditors' Meeting Set for March 24
----------------------------------------------------------
A first meeting of the creditors in the proceedings of 15 Green
Square Pty Ltd, formerly trading as 'Regus Fortitude Valley Pty
Ltd', will be held on March 24, 2021, at 10:00 a.m. at the offices
of Jones Partners Insolvency & Restructuring, Level 13, 189 Kent
Street, in Sydney, NSW.
Bruce Gleeson and Alan Topp of Jones Partners were appointed as
administrators of 15 Green Square on March 12, 2021.
GREENBATCH FOUNDATION: Second Creditors' Meeting Set for March 23
-----------------------------------------------------------------
A second meeting of creditors in the proceedings of Greenbatch
Foundation Ltd has been set for March 23, 2021, at 11:00 a.m. via
online video conference using Zoom meeting software.
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 22, 2021, at 5:00 p.m.
Jeremy Joseph Nipps and Clifford Stuart Rocke of Cor Cordis were
appointed as administrators of Greenbatch Foundation on Feb. 13,
2021.
HOPKINS EMPIRE: First Creditors' Meeting Set for March 25
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Hopkins
Empire Pty Ltd ATF Hopkins Empire Trust will be held on March 25,
2021, at 10:00 a.m. using virtual meeting technology.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of Hopkins Empire on March 15,
2021.
JMW TRAVEL: Second Creditors' Meeting Set for March 24
------------------------------------------------------
A second meeting of creditors in the proceedings of JMW Travel Pty.
Ltd., trading as 'helloworld Travel Monbulk', 'helloworld Travel
Bentleigh', 'nexus Volunteer Connection', 'nexus Business Travel',
and 'monbulk Travel Services' has been set for March 24, 2021, at
11:00 a.m. via teleconference facility.
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 23, 2021, at 5:00 p.m.
Domenico Alessandro Calabretta and Thyge Trafford-Jones of Mackay
Goodwin were appointed as administrators of JMW Travel on Feb. 17,
2020.
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C H I N A
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CHINA: Accelerating Bankruptcy Process of Heavily Indebted Firms
----------------------------------------------------------------
Nikkei Asia reports that China is stepping up the bankruptcy
process of heavily indebted companies as the leadership of the
Chinese Communist Party tries to demonstrate its crisis management
before the party congress in 2022.
Travel conglomerate HNA Group and five other major heavily indebted
companies with ties with the government have liabilities totaling
CNY1.8 trillion ($277 billion), Nikkei Asia says.
Nikkei Asia relates that a high court in Hainan Province announced
on March 10 that more than 300 companies under the wing of HNA will
go into a bankruptcy process called "chong zheng," a type of
corporate rehabilitation. The process lets a business work out
reorganization plans while continuing negotiations with creditors.
As HNA itself is in this process, the entire group will go through
it.
HNA has liabilities totaling CNY700 billion, according to its most
recent disclosure, made at the end of June 2019. As the company was
placed under direct supervision of the local Hainan provincial
government last year, its rehabilitation team is headed by Gu Gang,
who had served as deputy mayor of Haikou, the capital of Hainan. It
is preparing detailed bankruptcy restructuring plans for
presentation at a meeting with banks and other creditors in April.
The chong zheng process is increasingly adopted for the
government-involved rehabilitation of companies, Nikkei Asia notes.
"Powerful state-run banks are faithful to the government's
intention, and other banks are hardly able to openly oppose it," a
foreign bank official said.
For bank loans, the financial authorities of China set prime rates
higher than market and deposit rates. The practice, which enables
banks to secure funds for writing off nonperforming loans, is a
reason why the government gets its way in dealing with heavily
indebted companies, Nikkei Asia says.
Zhuhai Huafa Group, a state-run enterprise in Guangdong Province,
and other concerns are set to invest in Peking University Founder
Group, a state-owned company founded by the university, which has
completed its chong zheng, according to Nikkei Asia. Huachen
Automotive Group Holdings, a leading automaker belonging to the
provincial government of Liaoning and a parent of BMW's local
partner, also entered the chong zheng process in 2020 for
rehabilitation through a merger with 11 companies under its wing.
The first creditors' conference is scheduled on April 20 according
to a local Liaoning court in charge of the case, Nikkei Asia
discloses.
According to Nikkei Asia, the government takes the initiative in
dealing with heavily indebted companies for a number of reasons.
For example, the need for forestalling a further increase in
financial risks has grown stronger than ever. While liquidity
crunches at HNA and Peking University Founder began to be reported
in 2019, the two have repeatedly delayed loan repayments and bond
redemptions.
Peking University Founder, semiconductor maker Tsinghua Unigroup
and others issued dollar-denominated bonds overseas. Nikkei Asia
notes that successive defaults on the bonds have created an image
of China mired in excessive debt and lowered credibility, prompting
bond investment from overseas investors to overly shift to issues
by Chinese government and central government-backed policy banks.
Defaults on Chinese corporate bonds increased to an all-time high
of more than CNY180 billion in 2020, the report says. They remain
high, totaling more than CNY35 billion as of early March, Nikkei
Asia discloses. Many companies have fallen into liquidity crunches,
including Shandong Ruyi Technology Group, which was once hailed as
the "LVMH of China," establishing a global textile and apparel
empire through aggressive acquisitions over the years, ranging from
Cubbie Station, Australia's largest cotton farm, and stretch fabric
maker Lycra Co. to fashion brands such as Aquascutum and Japan's
century-old Renown.
This development cannot be left unresolved, for the sake of
maintaining China's creditworthiness, says Nikkei Asia.
In addition, the Chinese leadership under President Xi Jinping
wishes to emphasize its crisis management ability. Guo Shuqing,
chairman of the China Banking and Insurance Regulatory Commission,
told reporters earlier in the month that the banking sector will
further increase bad loan disposals in 2021 from CNY3.02 trillion
in 2020, Nikkei Asia adds. The projection is widely seen as
reflecting the government's intention to put major debt problems of
HNA and other companies under control.
While tackling major debt issues, Premier Li Keqiang stressed "to
resolutely protect the bottom line to avoid any systemic risks from
happening," in his annual policy speech at the opening of the
National People's Congress on March 5, Nikkei Asia relays. Shenzhen
International Logistics, a major state-owned logistics company, to
acquire major equity stake in Suning Commerce Group, a home
electronics retailer, this month is seen as the government's
resolve to intervene in the management of private companies.
HNA GROUP: Court OKs Restructuring with Consolidation of 320 Units
------------------------------------------------------------------
Caixin Global reports that a court in Hainan approved the merger
and restructuring of 320 affiliates of bankrupt HNA Group into the
parent company, paving way for the conglomerate to eventually
emerge from bankruptcy.
HNA Group was designated as administrator of the merger, and
creditors will hold their first meeting June 4, according to a
statement issued March 15 by the Hainan High People’s Court,
Caixin relays. The 320 units will be integrated into HNA group’s
bankruptcy reorganization, and the group will submit a
restructuring plan to the creditor meeting for approval, the court
said.
"The 321 companies including HNA group have massive debts on their
books, which have the hidden danger of triggering regional and
systemic financial risks causing great pressure on the local
economy and social development," the court, as cited by Caixin,
said. "The case, involving a large number of creditors, employees
and other relevant stakeholders, is one with significant risks."
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific on Feb.
1, 2021, Global Times said HNA Group on Jan. 29 declared bankruptcy
and restructuring after a multi-year debt and liquidity crisis. The
company was informed by South China's Hainan High People's Court on
Jan. 29 that "because the company is unable to pay off its debts,
related creditors appealed to the court for the company's
bankruptcy and restructuring," HNA said.
According to Global Times, HNA Group said it will cooperate with
the court for judicial review, carry forward the debt disposal, and
support the court's protection of the legal rights of its creditors
so as to ensure the smooth operations of the company.
SICHUAN TRUST: Fined $5.4 Million Over Shadow Banking Scandal
-------------------------------------------------------------
Caixin Global reports that Sichuan Trust Co. Ltd. has been fined
CNY34.9 million (US$5.4 million) - marking one of the biggest fines
ever levied against a Chinese trust company - for conducting
quasi-shadow banking businesses and issuing illicit loans, a
provincial banking regulator said.
Caixin relates that China has put the once free-wheeling $3
trillion trust industry under closer oversight as regulators have
grown concerned at financial risks in the sector, which plays an
important role in financing by providing loans to high-risk
companies and those who have difficulty getting credit from
traditional banks.
The southwestern province-based company was fined for 13
transgressions of the country's Banking Supervision Law, according
to a statement issued on March 12 by the Sichuan branch of the
China Banking and Insurance Regulatory Commission (CBIRC),
according to Caixin.
Sichuan Trust Company Limited is a company based in China, with its
head office in Chengdu. It operates in the Funds, Trusts, and Other
Financial Vehicles industry.
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I N D I A
=========
ANAGHA LAXMI: CRISIL Assigns B Rating to INR16cr Term Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank loan facilities of Anagha Laxmi Shopping Mall
(ALSM).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 16 CRISIL B/Stable (Assigned)
The rating reflects the firm's exposure to intense competition in
the apparel retail industry, exposure to offtake related risk and
likelihood of a leveraged capital structure. These rating
weaknesses are partially offset by considerable experience of the
proprietor in the apparel retail industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to intense competition in the apparel retail industry:
High profitability, healthy growth prospects for the garments
segment and ease of sourcing, have encouraged many organised retail
players and unorganised entities to enter this business. Hence,
risks related to intense competition and concentration in the
garments segment, will persist in the medium term.
* Exposure to offtake related risk: ALSM is scheduled to commence
operations from April 2021. Demand risk remains moderate, given the
high fragmentation and low entry barriers in the garment business.
Though construction of the mall has been completed, successful
stabilisation of operations at the unit remains a key rating
sensitivity factor.
* Expected leveraged capital structure: Financial risk profile is
likely to be marked by high gearing and moderate debt protection
metrics. The project has been aggressively funded through a
debt-equity ratio 1.9 times.
Strength
* Considerable experience of the proprietor: The proprietor has
been engaged in the garment retailing business for over five years.
His strong understanding of market dynamics and established
relationships with suppliers and customers will continue to support
the business risk profile.
Liquidity: Stretched
ALSM has availed INR16 crore of term debt as on December 31, 2020.
Expected cash flows may be tightly matched against the debt
obligation. However, funds extended by the proprietor should
support liquidity.
Outlook: Stable
CRISIL Ratings believes ALSM will benefit over the medium term from
its proprietor's experience in the apparel retail business.
Rating Sensitivity Factors:
Upward Factors
* Timely stabilisation of operations at the proposed mall, and
healthy ramp up in scale to around INR20-25 crore lading to
improvement in credit metrics
* Better working capital management
Downward Factors
* Delay in commencement of operations or lower than expected
revenue and profitability
* Substantial increase in working capital requirement, weakening
financial risk profile with gearing increasing to over 3 times.
ALSM was formed as a proprietary concern in December 2020. The firm
has plans to open a shopping mall for men, women and kids' wear at
Nizamabad (Telangana). Through an e-auction, the proprietor took
possession of the already constructed property of Anagha Laxmi
Shopping Mall. The mall is likely to commence operations from April
2021. It is owned and managed by Ms. Haridas Latha.
ARHYAMA SOLAR: CARE Lowers Rating on INR11.98cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Arhyama Solar Power Private Limited (ASPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.98 CARE D Revised from CARE BB;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of ASPPL
is on account of ongoing delays in servicing the instalment
obligation of term loan facility.
The company has availed RBI moratorium period during March 2020 to
August 2020.
Key Rating Sensitivities
Positive Rating Factors
* Delay free track record of more than 90 days
Detailed description of the key rating drivers
Key Rating Weakness
* Ongoing delays in meeting of debt obligations: Arhyama Solar
Power Private Limited has been facing liquidity issues from past
few months, due to which the company is unable to service the
instalment obligation of term loan facility in timely manner.
Arhyama Solar Power Private Limited (ASPPL) was incorporated in the
year 2012 promoted by Mr. N Ananth and family members. The company
has commissioned 6 MW solar power project at Aleir, Nalgonda in
February 2014. ASPPL has entered into long term power purchase
agreement with Dr. Reddy's Laboratories Limited (DRL) in April 2015
for a period of 20 years with tariff of INR5.90 per KWh (unit) with
escalation clause of increase in tariff of 2% Y-o-Y.
CABBANA INFRASTRUCTURES: CARE Cuts Rating on INR25cr Loan to B
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Cabbana Infrastructures Private Limited (CIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B+
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 5, 2019, placed the
rating of CIPL under the 'issuer non-cooperating category as CIPL
failed to provide information for monitoring of the rating. CIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated February 27, 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 CIPL has been revised
on account of non-availability of requisite information due to
non-cooperation by CIPL 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 ratings continue to be constrained by weak financial
risk profile and susceptibility of margins to highly competitive
nature of the industry. The rating, however, derives strength from
the experienced and resourceful promoters and favourable location
of the hotel.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Weak financial risk profile: Though the total operating income of
the company increased by ~14% in FY20, it continued to remain at a
small level. The overall solvency position of the company continued
to remain weak as marked by overall gearing ratio and total debt to
GCA ratio of 2.88x and 19.06x respectively, as on March 31, 2020
(PY: 2.56X and 23.78x respectively). The same deteriorated on
account of higher debt outstanding, as on March 31, 2020. The
interest coverage ratio of the company, however, improved in FY20
to 4.02x from 3.80x in FY19. The operating cycle of the company
remained elongated at ~120 days, as on March 31, 2020 (~147 days,
as on March 31, 2019).
* Susceptibility of margins to highly competitive nature of the
industry: CIPL is located between the commercial districts of
Ludhiana and Jalandhar which gives it a favourable location.
However, there are several other budget and luxury hotels in
Ludhiana and Jalandhar apart from the established brands which can
lead to increased supply in the nearby areas. Thus, with the
increasing supply, CIPL's prospects would depend on its ability to
distinguish itself from other players in the market and achieve the
envisaged occupancy and ARR (average room rental).
Key Rating Strengths
* Experienced and resourceful promoters: CIPL is promoted by Mr S L
Pabbi, Mr H L Pabbi, Mr Anil Chodha and Mr Manoj Chodha and has
been operational since 2004. Apart from CIPL, the directors Mr S L
Pabbi and Mr H L Pabbi (both are NRIs and based in Amsterdam) are
into garment and apparels manufacturing and Mr Anil Chodha and Mr
Manoj Chodha have been operating a banquet under the name Mayfair
Resorts (Jalandhar) since 2003.
* Favorable location of the hotel: The hotel property of CIPL is
located at Jalandhar, on NH1, between the manufacturing and
ancillary industry of Jalandhar and the textile industry of
Ludhiana. The hotel is equipped with 47 rooms and existing
facilities consist of specialty restaurant, a bar, a ball room,
meeting room, business centre, health club, etc., amongst other
amenities.
Cabbana Infrastructure Private Limited (CIPL) was incorporated in
December 2005 by the name Hyatt Resorts Private Ltd. Later in April
2011, the name of the company was changed to its present name-
Cabbana Infrastructure Private Limited. CIPL is located on the
Jalandhar- Ludhiana highway and is operating a 47 room, 5 star
hotel. The company also provides banquet services (5 banquet halls)
and has a recreational club under the name 'Club Cabbana'. CIPL is
promoted by Mr S L Pabbi, Mr H L Pabbi, Mr Anil Chodha and Mr Manoj
Chodha. Apart from CIPL, the directors Mr S L Pabbi and Mr H L
Pabbi are into garment and apparels manufacturing and Mr Anil
Chodha and Mr Manoj Chodha have been operating a banquet under the
name Mayfair Resorts (Jalandhar) since 2003.
DHANRAJ SOLVEX: CARE Withdraws D Rating on LongTerm Bank Debt
-------------------------------------------------------------
CARE has reviewed and reaffirmed the rating assigned to the bank
facilities of Dhanraj Solvex Private Limited (DSPL) at 'CARE D;
ISSUER NOT COOPERATING' and has simultaneously withdrawn it, with
immediate effect. The reaffirmation of the rating continues to
factor in the delays in debt servicing. The rating withdrawal is
at the request of DSPL and 'No Objection Certificate' received from
the banks that have extended the facilities rated by CARE.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - CARE D; Rating continues to
Facilities remain under ISSUER NOT
COOPERATING category;
Reaffirmed at CARE D; ISSUER
NOT COOPERATING and Withdrawn
Detailed description of the key rating drivers
At the time of last rating on June 1, 2020, the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
* Delay in debt servicing: There are ongoing delays in the debt
servicing for the facilities availed by the company on account of
stretched liquidity position.
Established in the year 2014, DSPL is a closely held company
promoted by Mr. Dhanraj pallod, Mr Govardhan Pallod, Mrs. Sushma D
Pallod and Mrs. Namrata G Pallod. DSPL has set up a plant in Latur,
Maharshtra for processing soya bean seed for extraction of soya oil
and de- oiled cake (DOC), with an installed capacity of extracting
600 tonnes of oil per day located at Latur.
FILM FARM: CRISIL Reaffirms B+ Ratings on INR10cr Loans
-------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Film Farm India Private Limited
(FFIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect susceptibility of the business to
risks inherent in television (TV) content production and new
subscription law, and large working capital requirement. These
weaknesses are partially offset by the extensive experience of the
promoters in the media and entertainment industry, and benefits
derived from producing content for over-the-top (OTT) platform
services provider through its new web series.
Analytical approach
Unsecured loans (INR1.71 crore as on March 31, 2020) extended by
the promoters have been treated as debt due to absence of track
record.
Key rating drivers & detailed description
Weaknesses
* Exposure to risks inherent in TV content production and new
subscription law: The biggest risk in the media and entertainment
industry, particularly for content producers, is rapidly changing
consumer preferences. The ability to identify emerging themes is
key to success in content production. Content producers are always
at the risk of being unable to adapt to evolving viewership
patterns and generating innovative content. FFIPL is exposed to the
risk of time or cost overruns in production, which may adversely
impact its margin. Also, the new channel subscription rules from
February 2019 might propel broadcasters to enrich their content to
combat competition from other TV channels as subscribers have a
free hand in choosing their channels.
* Large working capital requirement: The working capital cycle may
remain stretched over the medium term and will be closely
monitored. Gross current assets were sizeable at 428 days as on
March 31, 2020, driven by moderate receivables and high inventory
of 13 days and 443 days, respectively.
Strengths
* Extensive experience of promoters: The promoters, Mr Kalyan Guha
and Ms Rupali Guha, have been working in the media and
entertainment business for more than two decades. They began their
career as a producer and director, respectively, at UTV and have
also produced India's first game show at the launch of the Zee
Network. Ms Rupali Guha comes from a family of producers, being the
daughter of producer-director -- Mr Basu Chatterjee. FFIPL started
producing TV commercials and, over the years, has grown from a
commercial advertisement production company to a successful TV
serial production house. Over the past few years, FFIPL has
established healthy relationships with channel broadcasters, such
as Colors, Zee TV, SAB TV, NDTV Imagine, Star Pravah and Zee
Marathi.
* Benefits derived from producing content for OTT platform services
provider: With the evolution of OTT web broadcasting services such
as Zee5 and ALT Balaji, the company will have a chance to produce
content for these service providers. It is already producing a web
series called Home for ALT Balaji. This will help in expanding its
customer base and mitigate the risks involved in an otherwise
competitive and conventional TV broadcasting market, where content
is constrained by the television rating points of the broadcaster
and limited air time. Also, with higher internet and mobile
penetration rates in India, the online appetite of customers is
going to grow. The company expects at least 15% margin for
producing the web series.
Liquidity: Stretched
Cash accrual remains low, however, in the absence of any yearly
debt obligation, the entire cash accrual - INR0.10-0.20 crore --
will aid financial flexibility. Bank limit utilisation was moderate
and averaged around 87% during the 12 months through January 2021.
Current ratio was healthy at 1.65 times as on March 31, 2020. The
promoters are also expected to continue extending timely,
need-based funds to support financial flexibility. The company has
opted for moratorium for interest payment of working capital
facility till August 2020.
Outlook: Stable
FFIPL will continue to benefit from the extensive experience of its
promoters.
Rating sensitivity factors
Upward factors
* Sustained Revenue growth of 20% and steady operating margin
* Significant improvement in working capital cycle
* Improvement in debt protection metrics
Downward factors
* Steep decline in revenue and operating margin dropping below 4%
* Substantial increase in debt, leading to weakening of financial
risk profile
FFIPL, incorporated in 1999 by Mr Kalyan Guha, produces TV serials
and commercial advertisements. The company is based in Mumbai and
entered film production in 2013; it has produced popular Hindi
serials such as Uttaran, Kashi, and Tumhari Disha. FFIPL has also
released a Marathi film, Narbachi Wadi, in September 2013.
FIROZABAD CERAMICS: CARE Moves D Debt Rating to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Firozabad Ceramics Private Limited (FCPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.63 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Short Term Bank 2.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from FCPL to monitor the ratings
vide e-mail communications/letters dated December 1, 2020, December
9, 2020, February 12, 2021, February 15, 2021, February 19,2021 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 Firozabad Ceramics Private
Limited 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 rating takes into account non-availability of requisite
information and no due-diligence conducted due to noncooperation by
Firozabad Ceramics 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.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in servicing of debt obligation: There had been delays in
servicing of its debt obligations. The account had been classified
as NPA, according to the banker feedback.
FCPL is engaged in the manufacturing of glass containers and
tableware. The manufacturing facility of the company is located at
Firozabad, Uttar Pradesh having an installed capacity of 100 tonnes
of containers per day as on December 31, 2019. The products
manufactured are supplied to various companies and dealers based
PAN India. Its customers include Glassex India Private Limited, Gel
Pharmaceuticals Private Limited etc.
GKMS COTTON: CARE Reaffirms D Rating on INR7.67cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of GKMS
Pressing Private Limited (GKMS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 7.67 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of GKMS continues to be
tempered ongoing delays in the servicing of interest and principal
amount of term loan facility.
Key rating sensitivities
Positive rating sensitivities:
Delay free track record of more than 90 days
Detailed description of the key rating drivers
Key rating Weaknesses
* Ongoing delays in meeting of debt obligations: The company is
facing liquidity issues due to which the company is unable to meet
its debt obligation in timely manner. There are ongoing delays to
the tune of INR0.10 crore in servicing the interest and principal
delay w.r.t term loan facility.
Liquidity analysis - Poor
Poor liquidity marked by tightly matched accruals when compared to
repayment obligations with fully utilized bank limits and low cash
balance of INR0.07 crore as on31st March 2020. This constrain the
ability of the company to repay its debt obligations on a timely
basis. Moratorium was availed from March 2020 to August 2020
Andhra Pradesh based, GKMS Pressing Private Limited (GKMS) was
incorporated in the year 2005 and is promoted by Mr.Koteshwara Rao
and by his family members. The company is engaged in ginning and
pressing of cotton with an installed capacity of 7500 bales per
annum. GKMS purchases raw cotton from local farmers and traders
located in and around of Guntur. The company sells the cotton yarn
and lint to the customers located in Telangana, Andhra Pradesh,
Tamil Nadu and Maharashtra.
HARIMAN SEEDS: CARE Lowers Rating on INR12cr LT Loan to B-
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hariman Seeds (HS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 29, 2020 placed the
ratings of HS under the 'issuer noncooperating' category as HS had
failed to provide information for monitoring of the rating. HS
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 25, 2021, January 27, 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.
The rating has been revised by taking into account non-availability
of information and no due-diligence conducted due to
non-cooperation by HS with CARE'S efforts to undertake a review of
the rating outstanding. CARE views information availability risk as
a key factor in its assessment of credit risk. Further, the ratings
continue to remain constrained owing by project execution risk and
stabilization risk, partnership nature of its constitution and
Business susceptible to the vagaries of nature and competitive
nature of industry.
The ratings, however, continue to take comfort from experienced
management and favourable manufacturing location.
Detailed description of the key rating drivers
At the time of last rating on January 29, 2020 the following were
the rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Project execution risk and stabilization risk: The initial cost
of setting up the facility is estimated to be INR11.02 crore,
proposed to be funded by term loans of INR6 crore and balance
through promoter's contribution (including share capital and
unsecured loans) of INR5.02 crore. As on November 2018, the firm
has incurred ~50% of the total project cost, funded through
promoter contribution and bank debt of INR3.35 crore and INR2.30
crore respectively. The commercial operations of the firm are
projected to start from February, 2019. This exposes the firm
towards project execution in terms and completion of the project
with-in the envisaged time and cost. During the initial phases of
operations, the capital structure of the firm is expected to remain
leveraged due to debt funded capex undertaken coupled with
dependence on bank borrowings to meet the working capital
requirements.
* Partnership nature of its constitution: HMS's constitution as a
partnership firm has the inherent risk of possibility of withdrawal
of the partner's capital at the time of personal contingency and
firm being dissolved upon the death/retirement/insolvency of
partner. Moreover, partnership firms have restricted access to
external borrowing as credit worthiness of partners would be the
key factors affecting credit decision for the lenders.
* Business susceptible to the vagaries of nature and competitive
nature of industry: Agro-based industry is characterized by
seasonality, as it is dependent on the availability of raw
materials, which varies with different harvesting periods. Rice is
the major raw material which in turn depends on paddy. The peak
paddy procurement season is during October to January during which
the firm builds up raw material inventory to cater to the
processing of rice throughout the year. The monsoon has a huge
bearing on crop availability which determines the prevailing paddy
prices hence impacting rice prices. The commodity nature of the
product makes the industry highly fragmented, with numerous players
operating in the unorganized sector with very less product
differentiation. There are several small scale operators which are
not into endto-end processing of rice from paddy, instead they
merely complete a small fraction of processing and dispose-off
semiprocessed rice to other big rice millers for further
processing. Furthermore, the concentration of rice millers around
the paddy growing regions makes the business intensely
competitive.
Key Rating Strengths
* Experienced management: Mr. Amit Kumar Agarwal looks after
overall operation of firm. He has around seven years of experience
in agro industry through his association with family run
businesses. Also, he is supported by his father and brother, Mr.
Harish Chand Agarwal and Mr. Rahul Agarwal respectively, in
managing overall operations of the firm. They have extensive
experience in agro industry through their association with related
party concerns.
* Favorable manufacturing location: The firm's processing facility
is situated in Uttarakhand which is one of the rice belts of India
having high paddy cultivation. Its presence in the region gives
additional advantage over the competitors as easy availability of
the raw material as well as favorable pricing terms.
Sitarganj (Uttarakhand) based Hariman Seeds is a partnership
fompanyirm and was established in October, 2017. The commercial
operation is expected to start from February, 2019, and is
currently being managed by Mr Amit Kumar Agarwal, Mr Rahul Agarwal
and Mr Harish Agarwal.
HMS procures paddy from local grain markets through open market
situated locally. HMS is primarily targeting sells its product
through brokers and commission agents in Northern India viz.
Uttarakhand, export to Africa, UAE to wholesalers, traders.
The procurement of paddy normally depends on moisture content and
portion of rice in paddy, after which it is dried and polished.
K K POLYCOLOR: CRISIL Moves B- Debt Ratings From Not Cooperating
----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings on the bank facilities of K K Polycolor Asia Ltd (KKPAL) to
'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating'. However, KKPAL
has subsequently started sharing the information required for
carrying out a comprehensive review of the ratings. Consequently,
CRISIL Ratings is migrating its ratings to 'CRISIL B-/Stable/CRISIL
A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.75 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 10.80 CRISIL B-/Stable (Migrated
from 'CRISIL B-/Stable ISSUER
NOT COOPERATING')
Letter of Credit 4.50 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Term Loan 4.95 CRISIL B-/Stable (Migrated
from 'CRISIL B-/Stable ISSUER
NOT COOPERATING')
The ratings continue to reflect large working capital requirement
and modest scale of operations in the fragmented dyes and pigments
industry. These weaknesses are partially offset by the extensive
experience of the promoters.
CRISIL Ratings has also considered the impact of Covid 19 pandemic,
if any, and the measures taken by KKPAL to mitigate the same. The
operations were shut for the first two months of fiscal 2021 and
resultantly production as well sales have been impacted. Further,
the pandemic led to a liquidity crunch. The company availed
moratorium on its fund based as well as non-fund-based limits along
with emergency lines as per Reserve Bank of India's Covid 19
package.
Key Rating Drivers & Detailed Description
Weakness:
* Large working capital requirement: Operations are expected to
remain highly working capital-intensive, as indicated by gross
current assets (GCAs) of 256-323 days in the last three fiscals,
driven by high inventory because of large varieties in the product
profile. This leads to stretched liquidity, as reflected in fully
utilised bank lines and cash accrual tightly matching the debt
obligation.
* Modest scale of operations amid intense competition: Scale of
operations is modest, as reflected in revenue of INR25.96 crore in
fiscal 2020. KKPAL is a small player in the fragmented pigments and
dyes industry, which further limits its financial flexibility.
Strengths:
* Extensive experience of the promoters: The decade-long experience
of the promoters and their strong understanding of the market
dynamics should continue to support the business.
Liquidity: Stretched
Bank limit utilisation averaged 110.39% over the 12 months through
January 2021. Cash accrual is expected at a modest INR64 lakh in
fiscal 2021, but it should comfortably cover debt obligation of
INR32 lakh. Liquidity is likely to remain stretched, as any
increase in cash accrual will be met with higher debt obligation as
well. Liquidity is partially supported by unsecured loans from the
promoters (INR6.81 crore as on
March 31, 2020).
Outlook Stable
KKAPL will continue to benefit from the promoters' extensive
experience.
Rating Sensitivity factors
Upward factors
* Increase in revenue to above INR30 crore along with stable
operating margin
* Efficient working capital management, indicated by GCAs of less
than 300 days
Downward factors
* Decline in revenue to below INR20 crore and fall in the
profitability margin
* Large, debt-funded capital expenditure weakening the financial
risk profile
Incorporated in April 2010, KKPA manufactures plastic-based
products, such as calcium compounds and colour masterbatches. The
company's manufacturing unit at Alampur in the Howrah district of
West Bengal has installed capacity of 10,000 tonne per annum.
Day-to-day affairs are managed by Mr Kishore Kumar Ladha, the
managing director, with adequate support from the other two
directors and a team of experienced personnel.
KESHAV ENTERPRISES: CRISIL Reaffirms B+ Rating on INR.15cr Loans
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Keshav Enterprises - Navi Mumbai
(KE).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 0.7 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.1 CRISIL B+/Stable (Reaffirmed)
Term Loan 0.7 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect modest, though growing scale of
operations and large working capital requirement of KE. These
weaknesses are partially offset by the extensive experience of the
proprietor in the industrial machinery and consumables industry.
Analytical approach
Unsecured loans (Rs 2.92 crore as on March 31, 2020) extended by
the proprietor have been treated as neither debt nor equity because
these loans are expected to remain in the business over the medium
term.
Key rating drivers & detailed description
Weaknesses:
* Modest, though growing scale of operation: The industrial
machinery and consumables industry is highly fragmented and the
consequent intense competition may continue to constrain
scalability, pricing power and profitability. Revenue has been
INR6.2 crore over the three fiscals through 2020 and is projected
to grow at INR7.5 crore in fiscal 2021; however will remain modest
over the miedum term.
* Large working capital requirement: The working capital cycle may
remain stretched over the medium term and will be closely
monitored. Gross current assets were 315 days as on March 31, 2020,
driven by inventory and debtors of 70 days and 225 days,
respectively. Debtors are high as the firm needs to extend long
credit to its reputed customer base; furthermore, a huge inventory
is maintained to meet business need. However, the working capital
is partially supported by stretching creditors (71 days) extended
by the suppliers and support from the proprietor in the form of
USL.
Strengths
* Extensive experience of proprietor: The proprietor has been
working in the industrial machinery and consumables industry for
over a decade; his strong understanding of market dynamics and
healthy relationships with suppliers and customers should continue
to support the business.
Liquidity: Stretched
Cash accrual is expected to remain low at around INR40-50 lakh per
annum over the medium term, yet sufficient to meet the yearly debt
obligation of INR10 lakh; the surplus will aid financial
flexibility. Bank limit utilisation was moderate and averaged 59%
during the 12 months through December 2020. The proprietor is also
expected to continue extending timely, need-based funds to support
operations. The firm has not opted for moratorium for term loan
repayment and interest payment of its working capital facility.
Outlook: Stable
KE will continue to benefit from the extensive experience of its
proprietor and his established relationship with clients.
Rating sensitivity factors
Upward factors
* Steady increase in revenue and profitability, leading to cash
accrual of over INR1 crore
* Significant improvement in working capital cycle
Downward factors
* Operating profitability declining by 300 basis points, leading
to lower cash accruals
* Large, debt-funded capital expenditure, leading to weakening of
financial risk profile
* Stretch in working capital cycle
KE was set up in 2002 by the proprietor, Mr Premsingh Kumpawat. The
firm is based in Mumbai and manufactures, supplies & rents
scaffolding materials.
NILKANTH CONCAST: CRISIL Withdraws B+ Rating on INR19.52cr Loan
---------------------------------------------------------------
CRISIL Ratings has withdrawn the ratings on certain bank facilities
of Nilkanth Concast Private Limited (NCPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.25 CRISIL B+/Stable (Issuer
Not Cooperating)
Cash Credit 43.75 CRISIL A4 (Issuer Not
Cooperating/Withdrawn)
Letter of Credit 7.20 CRISIL A4 (Issuer Not
Cooperating/Withdrawn)
Letter of Credit 37.80 CRISIL B+/Stable (Issuer
Not Cooperating/Withdrawn)
Proposed Long Term 19.52 CRISIL B+/Stable (Issuer
Bank Loan Facility Not Cooperating/Withdrawn)
Term Loan 2.17 CRISIL B+/Stable (Issuer
Not Cooperating/Withdrawn)
Term Loan 11.31 CRISIL B+/Stable (Issuer
Not Cooperating/Withdrawn)
CRISIL Ratings has been consistently following up with NCPL for
obtaining information through letters and emails dated March 17,
2020 and September 16, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NCPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes information available on
NCPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of NCPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its ratings on INR37.8 Crore Letter of
Credit Facility, INR11.31 Crore Term Loan, INR43.75 Crore of Cash
Credit and INR19.52 Crore of Proposed Long Term Bank Loan Facility
of NCPL on the request of the company and receipt of a no objection
certificate from banker. The rating action is in line with CRISIL's
policy on withdrawal of its ratings on bank loans.
NCPL was set up in 2003 by Mr. Chandrashekhar Ayachi in Gandhidham
(Gujarat). The company has an integrated steel plant that
manufactures TMT bars from iron ore. It set up a 10-megawatt
coal-based power plant that became operational in 2009-10.
OM SAI: CARE Migrates D Debt Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Om Sai
Resorts (OSR) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from OSR to monitor the rating
vide e-mail communications dated January 6,2021, February 1,2021,
February 3, 2021, February 8, 2021, February 16, 2021, February 17,
021 and numerous phone calls. However, despite CARE's repeated
requests the firm has not provided the requisite information for
monitoring the rating. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on OSR bank facilities will now
be 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 Rationale & Key Rating Drivers
At the time of last rating on February 14, 2020 the following were
the rating weaknesses:
Key Rating Weaknesses
* Delays in servicing of debt obligation: There were delays in the
servicing of interest and principal amount on the term loan account
and the same was classified under SMA 1 category. The delays were
on account of delayed execution of project leading to poor
liquidity.
Om Sai Resorts (OSR) is a Goa based proprietorship, engaged in
setting up a 38 rooms hotel owned by Mr. Akshay Govekar. The hotel
is proposed to operate in an area of 2125 sq mt and have facilities
viz. multispecialty restaurant, banquet hall, swimming pool,
banquet hall, gym and others along with stay facility. The hotel is
proposed to have 38 AC rooms comprising of 35 standard rooms and 3
luxury suites for stay purpose.
RAIPUR POWER: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Raipur
Power and Steel Limited (RPSL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 332.65 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 22.00 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 December 6, 2019, placed the
rating of RPSL under the 'issuer non-cooperating' category as RPSL
failed to provide information for monitoring of the rating. RPSL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated February 27, 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
Key Rating Weaknesses
At the time of last rating on December 6, 2019, the following were
the rating strengths and weaknesses:
* Instances of delays in the debt servicing: There have been
instances of delays in the servicing of the debt obligation. The
same has been on account of the stretched liquidity position of the
company.
Incorporated in 2007, Raipur Power and Steel Limited (RPSL) is a
closely held public limited company belonging to the Garg group of
Ludhiana, Punjab. RPSL has its sole manufacturing facility located
at Durg, Chhattisgarh, for manufacturing of sponge iron, ferro
alloys (silicon manganese), billets, iron ore pellets, wire rods
and hard black (HB) wires with annual capacities of 90,000 tonnes
per annum (tpa), 32,000 tpa, 90,000 tpa, 30,000 tps, 90,000 tpa and
90,000 tpa, respectively, as on August 31, 2017. RPSL has two other
group companies engaged in the steel industry, namely, Garg
Industries Limited (GIL; CARE B+; Stable/ CARE A4; Issuer Not
Cooperating) and Parth Concast Limited (PCL). GIL is engaged in the
manufacturing of wire rods and has an installed capacity of 36,000
mtpa, as on March 31, 2017, at its manufacturing unit at Ludhiana,
Punjab, while PCL is engaged in the manufacturing of billets and
has an installed capacity of 90,000 mtpa, as on March 31, 2017, at
its manufacturing unit at Durg, Chhattisgarh.
RAVIRAJ HI-TECH: CARE Withdraws D Rating on LongTerm Bank Debts
---------------------------------------------------------------
CARE has reviewed and reaffirmed the rating assigned to the bank
facilities of Raviraj Hi-Tech Private Limited at CARE D; Issuer Not
Cooperating and has simultaneously withdrawn it, with immediate
effect.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank - CARE D; Rating continues to
Facilities remain under ISSUER NOT
COOPERATING category;
Reaffirmed at CARE D; ISSUER
NOT COOPERATING and Withdrawn
The rating continues to take into account the delays in servicing
of debt obligations. The rating withdrawal is at the request of
Raviraj Hi-Tech Private Limited and 'No Objection Certificate'
received from the bank that have extended the facilities
rated by CARE.
Detailed description of the key rating drivers
At the time of last rating on May 14,2020, the following were the
rating weaknesses (Updated for the information available):
Detailed Rationale & Key Rating Drivers
Key rating weaknesses
* Delays in servicing of debt obligations: As per banker
interaction during last review, there were ongoing delays in
repayment of principal and interest obligation of
term loan facility and overdrawals in cash credit facility.
Further, the company has availed the moratorium in line with
covid-19 regulatory package announced by RBI from MarchAugust
2020.
Pune-based (Maharashtra) RHPL was incorporated in 2004. The company
is engaged in manufacturing of precision engineering and auto
components namely Switchgear Parts, Engineering Parts, Automobile
Parts, Hydraulic Parts, and Process Industry Parts which are used
in engineering sector, auto sector, hydraulic sectors and allied
equipment.
SHILPA ELECTRICAL: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shilpa
Electrical Engineers (India) Private Limited (SEEPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.50 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 January 27, 2020, placed the
rating(s) of SEEPL under the 'issuer non-cooperating' category as
SEEPL had failed to provide information for monitoring of the
rating. SEEPL 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 16, 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(s).
At the time of last PR dated January 27, 2020, the following were
the strengths and weaknesses:
Detailed description of the key rating drivers (Updated for the
information available in ROC)
Key Rating Weaknesses
* Overdue in cash credit for more than 30 days: Due to strained
liquidity position resulting in overdrawing's in cash credit
account for more than 30 days:
Shilpa Electrical Engineers (India) Private Limited [SEEPL] was
incorporated on August 29, 2007. SEEPL is engaged in execution of
electrical contracts for more than two decades. The company was
started by Mr. G. Sudhakar Reddy in 1995 and operated as a
proprietary concern under the name of Shilpa Electrical Engineers.
SEEPL completed many electrical contracts from 1995 to 2007 under
the above name. For the past 20 years, the company is one of the
leading electrical contractors [Internal & External] holding 'A'
GRADE LICENSE exceeding 33KV (ALL Voltages). SEEPL carries out
erection, installation, fabrication and commissioning of
220KV/132KV/33KV/11Kv Substations and Line works, Generator's
P.C.C's (Printed Circuit Boards), M.C.C's (Miniature circuit
breakers) repairs and maintenance of Transformers for various types
of Industries and residential establishments. The company has
executed a total of 145 projects till date (January 31,2018) which
includes projects in different segments such as government,
residential and commercial establishments and private companies.
SONIC CERAMIC: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sonic
Ceramic Private Limited (SCPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.84 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.00 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 March 17, 2020, placed the
rating of SCPL under the 'Issuer non-cooperating' category as SCPL
had failed to provide information for monitoring of the ratings as
agreed to in its rating agreement SCPL continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and a letter dated December
2, 2020, December 3, 2020, December 4, 2020, December 7, 2020,
December 21, 2020, February 10, 2021, February 20, 2021 etc. 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 March 17, 2020, following was key
weakness(updated from information available from registrar of
company).
Detailed description of the key rating drivers
Key Rating Weakness
* Delay in Debt Servicing: There were irregularities in debt
servicing due to poor liquidity position
Morbi (Gujarat) based SCPL was incorporated in October 2007 as a
private limited company by six promoters to undertake a green field
project for manufacturing of wall tiles. SCPL recently completed
its project in Morbi (Gujarat) with installed capacity
of 52800 Metric Tonnes of wall tiles Per Annum (MTPA). The company
has completed project and commenced operations from April 2018
onwards.
The promoters of the company have long experience in the ceramic
industry through their association with different established
entities. These entities are engaged in manufacturing of vitrified
tiles, wall tiles and floor tiles. These associate concerns of SCPL
are Suzlon Ceramic, Shubham Ceramic, Mega Vitrified Private Limited
and Armano Vitrified LLP.
SUBHLAXMI FOODS: CARE Cuts Rating on INR15cr LT Loan to B-
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Subhlaxmi Foods Limited (SSFL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 SSFL to monitor the ratings
vide e-mail communications/letters dated January 14, 2021, January
19, 2021, January 27, 2021, February 5, 2021, 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 Shree Subhlaxmi Foods
Limited 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(s).
The rating has been revised by taking into account non-availability
of requisite information and no due-diligence conducted due to
non-cooperation by Shree Subhlaxmi Foods 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.
Detailed description of the key rating drivers
At the time of last rating on March 31, 2020, the following were
the rating weaknesses and strengths:
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: The operations of the company remained
small as evident from total operating income and gross cash
accruals of INR43.49 crore and INR0.67 crore, respectively in FY20
(refers to the period April 1 to March 31). Furthermore, the
company's net worth base also remains relatively small at INR2.39
crore as on March 31, 2020. The small scale limits the company's
financial flexibility in times of stress and deprives it of scale
benefits.
* Low profitability margins: The profitability margins of the
company continue to remain low as marked by PBILDT and PAT margins
of 4.86% and 0.14% respectively in FY20 as against 4.44% and 0.13%
respectively in FY19. The PBILDT margin stood above 4.00% for the
past three years, FY18-20 on account of low value addition and its
presence in a competitive industry. However, high financial charges
and depreciation cost restricted the net profitability of the
company at 0.14% in FY20.
* Leveraged capital structure and debt coverage indicators: The
capital structure of the company continues to remain leveraged
owing to higher dependence on external borrowings and low networth
base as marked by overall gearing which stood above 7.00x for the
balance sheet date of the past three financial years i.e.
FY18-FY20. Further, higher dependence on external borrowings
resulted in weak coverage indicators as marked by interest coverage
ratio and total debt to GCA of 1.47x and 22.36x respectively in
FY20 as against 1.50x and 21.33x respectively in FY19.
* Elongated operating cycle: Operations of the company are working
capital intensive in nature marked by operating cycle of 117 days
in FY20. Being a seasonal product the company maintain adequate
inventory of raw material (paddy) to cater to the milling and
processing of rice throughout the year, resulting in inventory
period of 155 days for FY20. Though the company usually sells for
cash but to some customers it gives credit upto 8-15 days while
procures the raw material usually on cash basis and gets a low
credit period of 1-2 months from the suppliers.
* Business susceptible to the vagaries of nature: Agro-based
industry is characterized by seasonality, as it is dependent on the
availability of raw materials, which varies with different
harvesting periods. Paddy is the major raw material and the peak
paddy procurement season is during October to January during which
the company builds up raw material inventory to cater to the
milling and processing of rice throughout the year. The monsoon has
a huge bearing on crop availability which determines the prevailing
paddy prices. Since there is a long time lag between raw material
procurement and liquidation of inventory, the company is exposed to
the risk of adverse price movement resulting in lower realization
than expected.
* Presence in a highly fragmented and regulated nature of industry:
The commodity nature of the product makes the industry highly
fragmented, with numerous players operating in the unorganized
sector with very less product differentiation. There are several
small scale operators which are not into endto-end processing of
rice from paddy, instead they merely complete a small fraction of
processing and dispose-off semiprocessed rice to other big rice
millers for further processing. Furthermore, the concentration of
rice millers around the paddy growing regions makes the business
intensely competitive. The raw material (paddy) prices are
regulated by government to safeguard the interest of farmers, which
in turn limits the bargaining power of the rice millers.
Key Rating Strengths
* Experienced Management: SSFL's operations are currently being
managed by Mr. Sudhir Maheshwari, Mr. Santosh Maheshwari and Mr.
Udit Maheshwari. They are all graduates by qualification and have
accumulated experience of more than two decades through their
association in similar business.
* Favourable manufacturing location: SSFL is mainly engaged in
milling and processing of rice. The main raw material (paddy) is
procured from local grain markets, mainly located in Uttar Pradesh.
The company's processing facility is situated in Mainpuri, Uttar
Pradesh. Its presence in the region gives additional advantage over
the competitors in terms of easy availability of the raw material
as well as favourable pricing terms. Moreover, owing to its
location it is in a position to cut on the freight component of
incoming raw materials.
Uttar Pradesh based Shree Subhlaxmi Foods Limited (SSFL) was
established on March 21, 2014 as a private limited and is currently
managed by Mr. Sudhir Maheshwari, Mr. Santosh Maheshwari and Mr.
Udit Maheshwari. SSFL is engaged in the milling, processing and
trading of paddy at its manufacturing facility located in Mainpuri,
Uttar Pradesh. The key raw material i.e. paddy is procured from
local grain markets and sells its product i.e. different varieties
of rice to wholesalers and traders located in Uttar Pradesh, and
nearby regions through brokers/commission agents.
TECHNICO STRIPS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Technico
Strips and Tubes Private Limited (TSTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.55 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 14.50 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 3, 2019, placed the
rating of TSTPL under the 'issuer non-cooperating' category as
TSTPL failed to provide information for monitoring of the rating.
TSTPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a letter
dated February 25, 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
Key Rating Weaknesses
At the time of last rating on December 3, 2019 the following were
the rating strengths and weaknesses:
* Instances of delays in the debt servicing: There have been
instances of delays in the servicing of term debt obligation.
Further, there have also been instances of overdrawals in the fund
based limits availed by the company for not more than 30 days. The
same has been on account of the stretched liquidity position of the
company.
Technico Strips & Tubes Private Limited (TSTPL) was incorporated in
April -1992 by the name 'R.N. Gupta Cycles Private Limited' and was
earlier engaged in the manufacturing of cycle parts. Subsequently,
the company changed its name to TSTPL in 2007. The company is
promoted by Mr. Ajay Gupta and his son, Mr. Nitin Gupta and
currently is engaged in the manufacturing of electric-resistance
welded steel tubes and cold-drawn welded steel tubes at its sole
facility in Ludhiana, with an annual production capacity of 22000
MT (as on March 31, 2018).
VIBISHNAN P: CRISIL Moves B Debt Ratings to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Vibishnan P (VP) to 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Cash
Credit Limit 2.77 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 4.48 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with VP for
obtaining information through letters and emails dated February 5,
2021, February 11, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VP is
consistent with 'Assessing Information Adequacy Risk'. Therefore,
on account of inadequate information and lack of management
cooperation, CRISIL Ratings has migrated the rating on bank
facilities of VP to 'CRISIL B/Stable Issuer not cooperating'.
VP was established in 1995 as proprietorship firm. It is engaged in
running poultry farm with 2 lakh layer birds and selling eggs. Its
poultry farm located in Namakkal- Tamil-Nadu and owned by P.
Vibishnan.
WESTIN RESINS: CARE Moves D Debt Ratings to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Westin
Resins & Polymers Private Limited (WRPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.96 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING Category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from WRPL to monitor the
rating(s) vide e-mail communications/letters dated October 3, 2020,
November 13, 2020, January 20, 2021 & 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 ratings 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 WRPL's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING /
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into accounts the ongoing delays in debt servicing
marked by continuous overdrawals in cash credit account due to poor
liquidity position.
Detailed description of Key rating drivers
At the time of last rating on March 14, 2020, the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Company):
Key Rating Weaknesses
* Ongoing delays in debt servicing marked by continuous overdrawals
in cash credit account: As per the bank statement received for cash
credit account for the period March 1, 2019 to February 29, 2020 of
Bank of Maharashtra, there were frequent overdrawals in the cash
credit account and some of them were consecutive for more than 30
days during the past 6 months ending February 2020 due to stretched
liquidity position of the company.
* Modest and fluctuating scale of operations: The overall scale of
operations remained fluctuating with total operating income stood
in the range of INR69.21 crore to INR89.72 crore during FY18-FY20.
Moreover, the same has decreased by 17.07% (from INR83.45 crore in
FY19 to INR69.21 crore in FY20). Due to modest scale of operations,
the tangible networth of the company also remained modest at
INR17.62 crore as on March 31, 2020.
* Moderate and fluctuating profit margin: During FY20, PBILDT
margin stood moderate in the range of 7.58% to 8.37% in FY18-FY20
and the same remained fluctuating due to fluctuating in the raw
material prices during the years. The PAT margin has also remained
moderate in the range of 1.28% to 1.85% during the said periods.
* Moderately leveraged capital structure and weak debt coverage
indicators: During FY20, the capital structure of the company
continues to remained moderately leveraged marked by overall
gearing of 1.48x as on March 31, 2020 (vis-à-vis 1.47x as on
March 31, 2019). Furthermore, due to increase in debt levels, the
debt coverage indicators deteriorated marked by interest
coverage of 1.44x for FY20 (vis-à-vis 1.65x for FY19) owing to
increase in the interest cost. Further total debt/GCA deteriorated
and stood weak at 17.48x in FY20 (vis-à-vis 11.84x in FY19) due to
decrease in the GCA level during the year.
* Working capital intensive nature of operations: The overall
operations of the company remained working capital intensive in
nature due to high amount of funds blocked in debtors and moderate
portion in inventory which led to moderately weak liquidity
position. The company is restricted to lower bargaining power with
its reputed clientele and in order to sustain business relations
needs to offer a high credit period. As a result of the same the
company stretched credit period to its suppliers. Moreover, the
utilization of working capital limits remained full with frequent
overdrawals in the same.
* Supplier concentration risk: During FY19, top five suppliers of
WRPL constituted 57.49% of total purchases (vis-à-vis 51.13% in
FY18), out of which top three suppliers namely Crest Chemicals
constituted 27.81%, Supreme Petrochem Ltd. constituted
13.25% and Ketul Chem Pvt. Ltd. constituted 7.64% indicating
supplier concentration risk. However, comfort can be taken owing to
long-term relationship maintained with the company.
* Presence in highly competitive and fragmented industry: WRPPL
operates in highly competitive industry marked by the presence of
organized as well as unorganized sector. Further, the chemical
industries are also marked by the presence of various laws and
regulations pertaining to the chemical sector thereby deriving
critical in terms of leading competition. Thus, the ability of the
company to strictly follow the laws and continuously adapt to
changes in the market can have an impact on the profitability
margin of the company.
Key rating Strengths
* Experienced promoters: WRPPL is promoted by the Sawant family
with Mr. Babaji Sawant the founder and Managing Director of the
company. He has a total work experience of nearly 3 decades in the
Fibre glass, plastic and polyester resin industry and being
associated with group companies Associated Polytech Industries
Private Limited (APIPL) since 1998 and Raj Pigment Products (RPP)
since 2010.
* Operational synergy with Group Company coupled with reputed and
established client base: WRPPL has operational synergies with its
two group companies (namely Associated Polytech Industries Private
Limited (APIPL) and Raj Pigment Products (RPP)). APIPL is engaged
in Distribution of Fibre glass, Rexine, Polyester resins, Cobalt,
Catalyst and Pigments and RPP is engaged in manufacturing of
polyester and epoxy coloring pigments. With vast experience and
Group Company's established presence in the industry, they have
developed strong business relations with reputed clientele and
receive repeat orders.
Incorporated in 2010 by the Sawant family, Westin Resins and
Polymers Private Limited (WRPPL) is engaged into manufacturing of
saturated and unsaturated polyester resins from its manufacturing
facility located in the Thane, Maharashtra. The facility is spread
over 7 acres of land and has an installed capacity of manufacturing
12000 Metric Tons (MT) of saturated and unsaturated resins per
annum. Products of the company find use as raw materials in
chemical industry, marine, automobile industry and manufacturing of
optical fibre. The company operates out of Mumbai but has an
established customer base in Maharashtra, Gujarat, Karnataka and
Tamil Nadu.
=========
J A P A N
=========
H.I.S. CO: Sales Plunge 80% in Nov.-Jan. Quarter Over Virus
-----------------------------------------------------------
The Japan Times reports that H.I.S. Co. said March 15 its sales
plunged 80.5 percent to JPY38.86 billion (US$356 million) in the
November-January quarter from a year earlier due to a sharp
decrease in travel demand caused by the continuing novel
coronavirus pandemic.
H.I.S. logged an operating loss of JPY11.68 billion and a net loss
of JPY7.98 billion in the three months through January, as the
virus hit the tourism industry hard, the report discloses.
The Japan Times notes that governments around the world have
restricted the entry of travelers at their borders in a bid to
contain the COVID-19 disease, while the Japanese government
suspended its nationwide travel subsidy program, aimed to help the
tourism sector, on Dec. 28 due to a resurgence of virus infections
across the country.
The Japan Times says H.I.S. saw its domestic travel upbeat in
November and December thanks to the "Go To Travel" campaign. But
sales dived when the program was halted and another state of
emergency declared by the government in January in the Tokyo
metropolitan area and some other prefectures.
In its earnings result released on March 15, the company said its
sales in the travel division in the first quarter of the business
year through October 2021 nosedived 89.5 percent to JPY18.41
billion and incurred an operating loss of JPY9.39 billion, The
Japan Times discloses.
According to the report, the travel agency, which has continued to
reduce its branches in and outside Japan as part of its
restructuring efforts, withheld an earnings projection for the
current business year due to the uncertainty in its business
environment.
The Japan Times relates that H.I.S. also said it will suspend
implementing changes in its management scheme and instead focus on
having the current management ride out the pandemic. It was set to
change to a holding company structure on Nov. 1.
In the last business year through October 2020, H.I.S. posted a net
loss of JPY25.04 billion, its first red ink since its listing in
2002, on sales of JPY430.28 billion, down 46.8 percent, The Japan
Times adds.
H.I.S. Co., Ltd. is primarily engaged in travel business. It is
involved in insurance agency such as overseas travel insurance, as
well as development and operation of guest room reservation
system.
=====================
N E W Z E A L A N D
=====================
MAGSONS HARDWARE: Nido Homeware Store to Close on March 21
----------------------------------------------------------
Stuff.co.nz reports that the doors to failed homeware store Nido
will close for good on March 21, with the loss of about 60 jobs.
Stuff relates that in a statement on March 16, McGrathNicol
receiver Kare Johnstone said the support of staff during the
receivership and closing down period had been "outstanding".
"However, as there have been no acceptable offers for the business
as a going concern, unfortunately the store will now be closing for
good.
"Consequently, all staff will unfortunately need to be made
redundant"
But the project was plagued by construction and funding problems
and when the west Auckland store finally opened, incomplete and
months behind schedule, trading was hampered by the city's level 3
lockdowns.
The construction company building the 27,000 square metre store,
Vijay Holdings, went into liquidation in November.
Magsons Hardware, trading as Nido, went into receivership a month
later and was placed into liquidation in February. Kumar is the
sole director of both companies.
According to Stuff, the receivers' first report showed Nido owed
NZD22.3 million to creditors and staff.
The company had more than NZD13.5 million in assets and NZD22.3
million in liabilities. Other items on its books included NZD18.22
million in intercompany loans and intercompany debt of NZD10.5
million, Stuff discloses.
Staff were owed NZD666,000 of which NZD565,000 was claimed as a
preferred creditor.
Last month, Ms. Johnstone said despite initial positive interest
from some potential buyers, Nido could not be sold as a going
concern and would likely close within a month, adds Stuff.
=================
S I N G A P O R E
=================
ARTERIAL CAPITAL: JBS Practice Named as Provisional Liquidators
---------------------------------------------------------------
Balasubramaniam Janamanchi of JBS Practice PAC on March 2, 2021,
were appointed as provisional liquidators of Arterial Capital
Management Pte Ltd.
The provisional liquidators may be reached at:
Balasubramaniam Janamanchi
JBS Practice PAC
137 Telok Ayer Street
#05-03
Singapore 068602
GLORY INVESTMENT: Deloitte & Touche Appointed as Judicial Managers
------------------------------------------------------------------
Tan Wei Cheong and Lim Loo Khoon of Deloitte & Touche LLP on March
11, 2021, were appointed as Joint and Several Judicial Managers of
Glory Investment Holding Pte Ltd.
The Judicial Managers may be reached at:
Tan Wei Cheong
Lim Loo Khoon
6 Shenton Way
OUE Downtown 2
#33-00
Singapore 068809
MCS HOLDINGS: Court to Hear Wind-Up Petition April 16
-----------------------------------------------------
A petition to wind up the operations of MCS Holdings Pte Ltd will
be heard before the High Court of Singapore on April 16, 2021, at
10:00 a.m.
DBS Bank filed the petition against the company on March 10, 2021.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
NEPHTECH PTE: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on March 5, 2021, to
wind up the operations of Nephtech Pte Ltd.
The company's liquidator may be reached at:
Ong Shyue Wen
Krys & Associates Singapore Pte Ltd
60 Paya Lebar Road
#11-37 Paya Lebar
Square, Singapore 409051
Email: Jonathan.Ong@KRYS-GLOBAL.COM
OCEANUS GROUP: Refutes Rumours of 'Pump-And-Dump' Scheme
--------------------------------------------------------
Lynette Tan at The Business Times reports that Oceanus Group on
March 12 refuted rumours about a purported move to the Catalist
board, an investigation into the group's financials, and its
management being in a "pump-and-dump" scheme of the group's shares,
calling them "untrue and misleading information".
BT relates that the seafood supplier also said it will investigate
the circumstances surrounding the information which has been
circulating on instant messaging platforms and online forums, and
pursue "all legal avenues" including but not limited to lodging
civil suits and police reports.
Oceanus said in a bourse filing on March 12 that one of the rumours
claims that there is an application by the company to transfer
itself from the Singapore Exchange's (SGX) mainboard to the
Catalist board. Oceanus said that this is not true, as it is
seeking to exit the SGX's watch list based on the financial exit
criteria, BT relays.
Another rumour claims that Oceanus' financial accounts are
"inaccurate" and currently subject to investigations by the
Commercial Affairs Department (CAD). However, Oceanus said that it
is not aware of any investigations by the CAD.
Also, the company's independent auditors, who are currently in the
advanced stages of finalising their audit of the company's
financial statements for the year ended Dec. 31, 2020, have not
raised material concerns in respect of the financial statements,
according to BT.
To a third rumour claiming that Oceanus is seeking a mandatory
suspension of the trading of its shares, the company said it is
"not true" and that "there is no basis" for the statement.
BT adds that Oceanus also refuted a rumour that its chief executive
and management are colluding with institutional investors in a
"pump-and-dump" scheme of the company's shares, saying it is "not
true" and that "there is no basis" for the statement.
BT says the group's clarifications come as its shares hit a new low
for the year to date on March 10, continuing a downward spiral that
started earlier this month. Oceanus shares fell to an intra-day low
of SGD0.019 on March 10.
Oceanus Group Limited operates as a holding company. The Company,
through its subsidiaries, engages in the farming, processing,
packaging, and distribution of seafood products. Oceanus Group
serves aquaculture farming and seafood industries worldwide.
*********
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
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