/raid1/www/Hosts/bankrupt/TCRAP_Public/210614.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, June 14, 2021, Vol. 24, No. 112
Headlines
A U S T R A L I A
AUTOCARE SERVICES: Second Creditors' Meeting Set for June 22
EWATER SYSTEMS: First Creditors' Meeting Set for June 22
MALIVER PTY: Liquidators to Sell Assets to Pay Back Investors
PARKER LOGAN: Second Creditors' Meeting Set for June 22
UA CORP: Second Creditors' Meeting Set for June 23
VERDANT COMPANY: First Creditors' Meeting Set for June 22
C H I N A
REDCO PROPERTIES: S&P Affirms 'B' Long-Term Issuer Credit Rating
I N D I A
ALPEX SOLAR: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
ANJANEYA EXPORTS: CRISIL Lowers Rating on INR1.5cr Loan to D
ASCENT BUILDTECH: Insolvency Resolution Process Case Summary
BHARDWAJ CONSTRUCTION: Ind-Ra Keeps 'BB' Rating in Non-Cooperating
BILAGI SUGAR: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating
BILPOWER LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
CANON ENGINEERING: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
DULICHAND CHEMICALS: Ind-Ra Keeps 'B+' Rating in Non-Cooperating
GCRG MEMORIAL: CRISIL Moves D Debt Ratings to Not Cooperating
GEETANJALI GRAPHICS: Ind-Ra Moves 'D' Rating to Non-Cooperating
GEM MOTORS: Ind-Ra Keeps 'B' LT Issuer Rating in Non-Cooperating
HIA EXPORTS: Ind-Ra Keeps BB- LT Issuer Rating in Non-Cooperating
IDEAS ENGINEERS: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
INDICO MOTORS: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
K. MAGANLAL: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating
KNK CONSTRUCTION: CRISIL Moves D Debt Ratings to Not Cooperating
MANIPUR TEA: CRISIL Reaffirms B- Rating on INR4.80cr Cash Loan
MANTRI TEA: CRISIL Reaffirms B- Rating on INR6cr Cash Loan
MATHURAM SWASTHYA: Ind-Ra Keeps B+ Loan Rating in Non-Cooperating
NOVASYS GREENERGY: CRISIL Hikes Rating on INR15cr Loan to B+
PATIALA COTSPIN: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
PHADNIS CLINIC: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
PULIKKOTTIL LAZAR: CRISIL Cuts Rating on INR16.67cr Loan to B+
RAMKY INFRA: CRISIL Raises Rating on INR749.82cr Loan to C
RUBBER PRODUCTS: CRISIL Keeps D Debt Ratings in Not Cooperating
RUTTONPORE PLANTATIONS: CRISIL Reaffirms B- Rating on INR7cr Loan
S.A.AANANDAN: Ind-Ra Corrects June 10, 2021 Rating Release
S.K. AGARWAL: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
SDS INFRATECH: CRISIL Keeps D Debt Rating in Not Cooperating
SHREEDHAR MILK: CRISIL Keeps D Debt Ratings in Not Cooperating
SHRESHT INDUSTRIES: CRISIL Moves D Debt Rating to Not Cooperating
SIDHANATH SUGAR: CRISIL Moves D Debt Ratings to Not Cooperating
SIKKIM FERRO: CRISIL Keeps D Debt Ratings in Not Cooperating
SITARAM GEMS: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
SUKRA JEWELLERY: CRISIL Lowers Rating on INR5cr Cash Loan to B
SUN BLUES: CRISIL Lowers Rating on INR12cr Cash Loan to B
SUVIDHA PARKLIFT: Insolvency Resolution Process Case Summary
SYBLY INDUSTRIES: CRISIL Keeps C Debt Ratings in Not Cooperating
SYNDICATE JEWELLERS PVT: CRISIL Moves D Rating to Not Cooperating
SYNDICATE JEWELLERS: CRISIL Moves D Rating to Not Cooperating
TEMPLE CITY: CRISIL Keeps D Debt Rating in Not Cooperating
UNNATI WRITING: CRISIL Moves D Debt Ratings to Not Cooperating
VIJAYAWADA ELECTRICITY: CRISIL Moves D Rating to Not Cooperating
ZEE FABRICS: Ind-Ra Cuts Long-Term Issuer Rating to 'BB+'
I N D O N E S I A
BUMI SERPONG: Moody's Affirms Ba3 CFR on Good Marketing Sales
GAJAH TUNGGAL: Moody's Puts Caa1 CFR Under Review for Upgrade
REJEKI ISMAN: Creditors Submit About $1.4BB in Outstanding Claims
J A P A N
KAWASKI KISEN: Egan-Jones Hikes Senior Unsecured Ratings to B+
S I N G A P O R E
HYFLUX LTD: Utico Has 'No Impact' on Winding Up Bid, JM Says
NEW SILKROUTES: SGX Queries on Liquidation of Oil-Trading Unit
- - - - -
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A U S T R A L I A
=================
AUTOCARE SERVICES: Second Creditors' Meeting Set for June 22
------------------------------------------------------------
A second meeting of creditors in the proceedings of Autocare
Services Pty Ltd has been set for June 22, 2021, at 2:00 p.m. via
Zoom.
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 June 21, 2021, at 2:00 p.m.
Joseph Hansell, Christopher Hill and Ross Blakeley of FTI
Consulting were appointed as administrators of Autocare Services on
Feb. 4, 2021.
EWATER SYSTEMS: First Creditors' Meeting Set for June 22
--------------------------------------------------------
A first meeting of the creditors in the proceedings of eWater
Systems Pty Ltd and eWater Group Pty Ltd will be held on June 22,
2021, at 12:00 p.m. and 1:00 p.m. via virtual meeting technology.
Richard Rohrt of Hamilton Murphy Advisory was appointed as
administrator of eWater Systems on June 9, 2021.
MALIVER PTY: Liquidators to Sell Assets to Pay Back Investors
-------------------------------------------------------------
9News reports that the liquidators of missing Sydney woman Melissa
Caddick's investment business Maliver anticipate selling off
possessions such as property and cars in order to pay back
investors who were duped by her scheme.
In a statement to media on June 10, provisional liquidators Bruce
Gleeson and Daniel Robert Soire of Jones Partners said they will be
holding an information session exclusively for people who had their
money managed by Ms. Caddick,9News relates.
If Jones Partners are appointed as final receivers and liquidators
of Maliver during a Federal Court hearing later this month, they
would consider and resolve all claims made against assets by
interested parties, according to 9News.
Some of these assets include Ms. Caddick's Dover Heights home, her
husband's Audi R8, an apartment she purchased for her parents at
Edgecliff, jewellery identified as being purchased using investor
funds and any shares held in Ms. Caddick's names, the report
discloses.
"We are also investigating other possible claims, including whether
there may be an opportunity to claim taxation refunds from the
Australian Taxation Office as a significant majority of the taxable
income of the Company was fictitious," 9News quotes Bruce Gleeson,
Principal at Jones Partners, as saying.
"Additionally, we believe there may be possible claims available to
Investors who had Self Managed Superannuation Funds administered by
Ms. Caddick as a Trustee of the fund, who coordinated the
preparation and audit of Financial Statements, including Income Tax
Returns for the fund.
"Such possible claims would need to be further evaluated, but are
likely to be against the auditor and potentially other
professionals involved in the audit process and may possibly take
the form of a class action."
9News relates that Mr. Gleeson also confirmed that the Australian
Tax Office has created a "special working group" to act a central
point for investors and to respond to specific tax questions that
victims may have.
Ms. Caddick disappeared from her home in Dover Heights, in Sydney's
affluent eastern suburbs on November 12 last year and has not been
seen or heard from since, the report recallls.
She is suspected of allegedly stealing "tens of millions" of
dollars from potentially hundreds of investment clients.
The Australian Federal Police (AFP) raided her home as part of an
ASIC investigation just days before she disappeared.
In December last year, Bruce Gleeson and Daniel Soire Jones
Partners were appointed by the Federal Court of Australia as
provisional liquidators of her wealth management company, Maliver
Pty Ltd, 9News discloses.
PARKER LOGAN: Second Creditors' Meeting Set for June 22
-------------------------------------------------------
A second meeting of creditors in the proceedings of Parker Logan
Property Pty Ltd ATF Parker Logan Property Trust has been set for
June 22, 2021, at 10:00 a.m. via Zoom.
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 June 21, 2021, 4:00 p.m.
Christian Sprowles and Brendan Copeland of HoganSprowles Pty Ltd
were appointed as administrators of Parker Logan on May 11, 2021.
UA CORP: Second Creditors' Meeting Set for June 23
--------------------------------------------------
A second meeting of creditors in the proceedings of UA Corp Pty Ltd
has been set for June 23, 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 June 22, 2021, at 5:00 p.m.
Shane Leslie Deane and Nicholas Giasoumi of Dye & Co. Pty Ltd were
appointed as administrators of UA Corp on May 24, 2021.
VERDANT COMPANY: First Creditors' Meeting Set for June 22
---------------------------------------------------------
A first meeting of the creditors in the proceedings of The Verdant
Company Pty Ltd will be held on June 22, 2021, at 11:00 a.m. via
virtual meeting technology.
Richard Rohrt of Hamilton Murphy Advisory was appointed as
administrator of Verdant Company on June 9, 2021.
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C H I N A
=========
REDCO PROPERTIES: S&P Affirms 'B' Long-Term Issuer Credit Rating
----------------------------------------------------------------
On June 10, 2021, S&P Global Ratings affirmed its 'B' long-term
issuer credit rating on Redco Properties Group Ltd. (Redco). At the
same time, S&P lowered the long-term issue rating on the company's
existing senior unsecured notes to 'B-' from 'B' in view of the
company's increasing secured debt.
The stable outlook reflects Redco's gradual deleveraging as its
EBITDA grows to offset rising debt amid its scale expansion.
S&P said, "We affirmed the issuer credit rating on Redco because we
believe the company's heightened leverage in 2020 will improve in
the next one to two years on the back of robust revenue growth and
stabilizing profitability. Its likely fast EBITDA growth of 38%-42%
in 2021 and 15%-20% in 2022 should temper debt expansion as it
continues to increase its scale of operations.
"We forecast Redco's consolidated debt-to-EBITDA ratio will fall to
7.0x-7.5x in 2021-2022 from 8.9x at end-2020 and 6.5x at end-2019.
Look-through debt to EBITDA should track consolidated leverage at
7.0x-7.5x in 2021-2022, from slightly above 9x at end-2020, given
the small contribution from Redco's unconsolidated projects.
Redco's look-through leverage may deviate from its consolidated
leverage if its consolidation ratio decreases, since we estimate
its unconsolidated projects have lower margins and higher leverage
than consolidated counterparts.
"Redco's strong revenue trajectory will likely continue in 2021.The
company has achieved rapid yearly contracted sales growth of 49%,
reaching Chinese renminbi (RMB) 41 billion in 2020 and now targets
RMB48 billion-RMB50 billion in 2021. This is a feasible target, in
our view, based on a sell-through rate of 53%-56% of RMB90 billion
of saleable resources planned for 2021, compared with its
historical sell-through of 59% in 2020. We estimate Redco's revenue
to sustain growth momentum of 45% in 2020 and further grow 40%-45%
to RMB17 billion-RMB18 billion in 2021. This will be supported by
its large sold but unrecognized sales of about RMB26.8 billion as
of end-2020, of which about RMB12 billion will book in 2021.
"We anticipate Redco's deteriorated margins to stabilize at
20%-22%.The company's gross margin fell to 22.6% in 2020, from
34.3% in 2019, as contribution from historically high-margin
projects from Tianjin and Yantai have diminished in scale. Also,
Redco will increase its reliance on public land auctions to expand
into new markets, which could further exert pressure on its margins
due to intense competition in the land bidding process. That said,
the company's track record of sourcing low-cost land parcels
through higher-margin project acquisitions, which accounted for
about half its land purchases over the past three years, could
moderate its margin compression. We also believe the risk of
further gross margin deterioration in the next 12 months is low as
Redco's sold but recognized revenue as of end 2020 carried gross
margins of 22%-23%."
Redco's growth aspirations will continue to push debt up in
2021-2022, albeit at a more moderate pace. Redco's reported debt
grew 20% after the company spent RMB21 billion on land, equal to
51% of contracted sales in 2020. S&P's base case is that Redco will
moderately scale back its land purchases to 38%-42% of contracted
sales in 2021-2022 as it has sufficient saleable resources of
RMB204 billion to support more than three years of sales. This will
result in debt growth of 14%-18% in 2021-2022 each year.
Redco's credit profile is constrained by its small scale, despite
ongoing improvement. The company's attributable contracted sales of
RMB21 billion in 2020 remain small among rated Chinese developers.
While Redco has broadened its geographic coverage to 122 projects
across 42 cities in 2020, from just 56 projects in 15 cities in
2018, its execution capabilities remain relatively untested in
newly entered markets such as those in Yangtze River Delta and
Greater Bay Area, where competition is high and Redco has only
started a handful of projects per city.
Redco's control over projects is lower than peers'. S&P said, "We
expect Redco's attributable contracted sales to stay low at 50%-55%
of total contracted sales, from 52% in 2020, as it continues to
rely on joint ventures (JVs) for growth. Redco's debt and earnings
from off-balance sheet projects remained small, given we estimate
it consolidates above 70% of project sales. The gap between its
consolidation and a much lower attributable ratio is wider than
most peers."
This has been possible because its JV partners are usually local
project owners and Redco is able to control the financing and
operating decisions. As a result, Redco's minority interest has
increased to 47% in 2020 from 34% in 2018 as a percentage of total
equity. S&P said, "As such, we believe Redco's control over
projects is low because apart from a higher level of minority
interest make-up, it also has few well-known developers as JV
partners. At the same time, given the company does not provide
guarantee to its off-balance sheet JV projects, we expect its
look-through leverage to continue to be slightly above the
consolidated leverage."
S&P said, "We lowered our issue ratings on Redco's outstanding
senior unsecured notes to 'B-' from 'B' because of an increase in
the company's secured debt.The company's secured debt ratio is now
56%, which is above our 50% threshold for notching down the issue
rating.
"The stable outlook is based on our view that Redco will improve
its leverage through robust revenue recognition and stable
profitability, despite a sustained growth appetite to support scale
expansion over the next one to two years. We also believe Redco
will maintain prudent management of its liquidity and debt capital
structure over the same period.
"We could lower the ratings on Redco if the company's consolidated
or look-through debt-to-EBITDA ratio stays above 8x without signs
of improvement. This could happen if: (1) Redco's debt-funded
expansion is more aggressive than we expect; (2) its margins
significantly deteriorate from the current level; or (3) its
project consolidation or delivery slips such that revenue
recognition is significantly lower than our forecast.
"We could also lower the ratings if the company's liquidity
significantly worsens, with liquidity sources falling below uses by
1.2x, or if Redco faces difficulties with refinancing to tackle its
short-term debt maturities.
"We could raise the ratings if Redco continues to substantially
expand its operating scale in terms of attributable contracted
sales and revenue, as well as improve its project and geographic
diversity, such that its market position is comparable to that of
'B+' rated peers.
"At the same time, the company would also need to maintain stable
leverage, with consolidated and look-through debt-to-EBITDA ratios
below 6x, while keeping weighted average maturity of its debt
consistently above two years."
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I N D I A
=========
ALPEX SOLAR: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Alpex Solar
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:
-- INR120 mil. Fund-based working capital limit (Long-term/Short-
term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating;
-- INR80 mil. Proposed fund-based working capital limit (Long-
term/Short-term) withdrawn (the company did not proceed with
the instrument as envisaged);
-- INR250 mil. Non-fund-based working capital limit (Short-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR150 mil. Proposed non-fund-based working capital limit
(Short-term) withdrawn (the company did not proceed with the
instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
2, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1993, Alpex Solar manufactures photovoltaics solar
panels, solar modules, solar power projects, solar mobile tower
solutions, frameless solar modules, among others. It is the also
the sole distributor for Samsung Knitting Needles Company Limited's
knitting needles in north India.
ANJANEYA EXPORTS: CRISIL Lowers Rating on INR1.5cr Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Sree Anjaneya Exports - Tirupur (SAE) to 'CRISIL D/CRISIL D Issuer
Not Cooperating' from 'CRISIL B-/Stable/CRISIL A4 Issuer Not
Cooperating'. The downgrade reflects delays by SAE in servicing of
debt obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase- 1.5 CRISIL D (Issuer Not
Discounting COOPERATING; Downgraded from
Facility 'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 0.7 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Term Loan 0.3 COOPERATING; Downgraded from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Export Packing 3.5 COOPERATING; Downgraded from
Credit 'CRISIL B-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with SAE for
obtaining information through letters and emails dated November 30,
2019 and May 11, 2020 and February 22, 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 SAE, which restricts CRISIL
Rating's ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SAE
is consistent with 'Assessing Information Adequacy Risk'.
Established in 1997 as a partnership firm, SAE manufactures and
exports readymade garments. Its manufacturing facility is based out
of Tirupur, Tamil Nadu.
ASCENT BUILDTECH: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Ascent Buildtech Private Limited
G-39, Pocket A-I
Mayur Vihar, Phase-III
Delhi 110096
Insolvency Commencement Date: June 2, 2021
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: November 29, 2021
Insolvency professional: Amarpal
Interim Resolution
Professional: Amarpal
C-2, Plot No. 50
Gyan Khand-2, Indirapuram
Ghaziabad, Uttar Pradesh 201014
E-mail: amarpal@cai.org
D-27, 3rd Floor
Dayanand Block, Gali No. 2
Near Reliance Fresh
Shakarpur, Delhi 110092
E-mail: cirp.ascentbuildtech@gmail.com
- and -
The Insolvency and Bankrupty Board
of India (IBBI)
7th Floor, Mayur Bhawan
Shankar Market, Connaught Circus
New Delhi 110001
Classes of creditors: Allottee under real estate project
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Satendar Kumar
Mr. Ajay Kumar Siwach
Mr. Deepak Gupta
Last date for
submission of claims: June 16, 2021
BHARDWAJ CONSTRUCTION: Ind-Ra Keeps 'BB' Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Bhardwaj
Construction Company 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 BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR98.4 mil. Non-fund-based limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR101.6 mil. Proposed non-fund-based limits withdrawn (the
company did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 26, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Jharkhand-based Bhardwaj Construction Company was incorporated in
1977 as a partnership firm and reconstituted as a private limited
company in 1991 to execute civil construction contracts for
government entities.
BILAGI SUGAR: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bilagi Sugar Mill
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 B+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR2,446.79 bil. Term loan due on March 2028 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating; and
-- INR1,834.10 bil. Fund-based working capital limits migrated to
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
14, 2020. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2001, Bilagi Sugar Mill has an integrated sugar
plant with cane crushing capacity of 10,000 tons per day and
cogeneration capacity of 38MW at its factory in Badagandi, Bagalkot
Karnataka. The company is setting up a 60 kilo liter per day
ethanol unit.
BILPOWER LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bilpower
Limited (Bilpower) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 90 CRISIL D (Issuer Not
Cooperating)
Letter of credit 80 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Proposed Long Term 4 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Bilpower for
obtaining information through letters and emails dated November 30,
2020 and April 28, 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 Bilpower, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Bilpower is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Bilpower continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Bilpower, incorporated in 1989, manufactures transformer
laminations. It has manufacturing units at Vadodara (Gujarat),
Silvassa (Dadra and Nagar Haveli), Kanchad (Maharashtra), and
Roorkee (Uttarakhand).
CANON ENGINEERING: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Canon
Engineering Constructions' 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 now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limits maintained in
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR40 mil. Non-fund-based working capital limits maintained in
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR10 mil. Proposed fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged); and
-- INR50 mil. Proposed non-fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 8, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1985, Canon Engineering is a Maharashtra-based
engineering, procurement and construction company mainly engaged in
civil construction and foundation engineering, among others. It
mainly executes government work orders and procures contracts
through e-tendering.
DULICHAND CHEMICALS: Ind-Ra Keeps 'B+' Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shree Dulichand
Chemicals 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 B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR60 mil. Fund-based working capital limits maintained in
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING) / IND A4 (ISSUER NOT COOPERATING) rating;
-- INR15 mil. Non-fund-based working capital limits maintained in
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating;
-- INR40 mil. Proposed fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged); and
-- INR35 mil. Proposed non-fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 3, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Shree Dulichand Chemicals was incorporated on August 13, 1986 in
Secunderabad, Telangana. The company is promoted by Mrutynjai
Agarwal. It trades in chemicals and supplies the same to industries
such as oil, metal, agrochemicals, fertilizers, petrochemicals,
pharmaceutical, and polymers.
GCRG MEMORIAL: CRISIL Moves D Debt Ratings to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of GCRG
Memorial Trust (GMT) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 11.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 4.0 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Rupee Term Loan 34.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with GMT for
obtaining information through letters and emails dated February 27,
2021 and March 31, 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 GMT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GMT
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 GMT to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Established in 2008, GMT is a charitable trust that operates
educational institutions, offering both graduate and post-graduate
courses. The trust is managed by the chairman, Mr Abhishek Yadav
and his brother, Mr Mohit Yadav (secretary). GMT currently operates
seven institutes in Lucknow, within the same campus, offering B
Tech and MBA courses along with diploma and polytechnic courses.
The trust also manages a hospital within the same campus (GCRG
Memorial Hospital).
GEETANJALI GRAPHICS: Ind-Ra Moves 'D' Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Geetanjali
Graphics' 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 D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR9.83 mil. Term loan (Long-term) due on December 2021
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating;
-- INR70 mil. Fund-based working capital limits (Long-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR11 mil. Non-fund-based facilities (Short-term) migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 1, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Geetanjali Graphics was established as a partnership firm in 1979
and was reconstituted as a sole proprietorship in April 2000. The
firm is promoted by Nagasundar. It has an installed printing
capacity of 20 tons of paper per day.
GEM MOTORS: Ind-Ra Keeps 'B' LT Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Gem Motors
(India) 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 now
appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based limit maintained in Non-Cooperating
Category with IND B (ISSUER NOT COOPERATING) rating;
-- INR50 mil. Non-fund-based limit maintained in Non-Cooperating
Category with IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR150 mil. Proposed fund-based limits withdrawn (the company
did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 23, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporate in 2007, GEM is a Hyderabad-based authorized dealer of
cars manufactured by Maruti Suzuki India Limited. The company is
engaged in the sales and service of both new and old cars. The firm
is owned and promoted by the Yadav family.
HIA EXPORTS: Ind-Ra Keeps BB- LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Hia Exports'
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 BB-
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limit maintained in
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating; and
-- INR50 mil. Proposed fund-based working capital limit withdrawn
(the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 8, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Formed in 2004, Mumbai-based HIA Exports is a proprietorship
concern engaged in the manufacturing and sales of diamond and gold
jewelry.
IDEAS ENGINEERS: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Ideas Engineers'
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 BB+
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limits maintained in
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR75 mil. Non-fund-based working capital limits maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR55 mil. Proposed non-fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 22, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Set up in 2008 as a partnership firm, Ideas Engineers operates as
an engineering, procurement and construction electrical and turnkey
project contractor. It provides services to corporate, government
and semi-government sectors, and Pan India Corporation Limited.
INDICO MOTORS: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Indico Motors
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 BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR220 mil. Fund-based limits maintained in non-cooperating
category with IND BB (ISSUER NOT COOPERATING) rating;
-- INR20 mil. Non-fund-based limits maintained in non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR40 mil. Proposed fund-based limits withdrawn (the rating
has been withdrawn since the instruments were outstanding for
more than 180 days); and
-- INR50 mil. Proposed non-fund-based limits withdrawn (the
rating has been withdrawn since the instruments were
outstanding for more than 180 days).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
4, 2017. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Founded in 1989 by Sanjay Dubey, Indico Motors manufactures bodies
of heavy commercial vehicles, such as tippers, trailers and tip
trailers.
K. MAGANLAL: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated K. Maganlal
Impex'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:
-- INR110 mil. Fund-based limits migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
12, 2020. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2002, K. Maganlal Impex is a partnership firm
engaged in the importing of rough diamonds, and the manufacturing,
cutting and exporting of polished diamonds. It has its registered
office in Mumbai and a factory in Gujarat. The firm is managed by
Kalubhai Jivabhai Dudhat, Maganlal Jivabhai Dudhat and Dineshbhai
Jivabhat Dudhat.
KNK CONSTRUCTION: CRISIL Moves D Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of KNK
Construction Private limited (KNK) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 90 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 30 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Bank 25 CRISIL D (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Overdraft 30 CRISIL D (ISSUER NOT
Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with KNK for
obtaining information through letters and emails dated April 23,
2021, May 12, 2021 and May 17, 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 KNK, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KNK
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 KNK to 'CRISIL D/CRISIL D Issuer not
cooperating'.
KNK was set up in fiscal 2017 by merging the group companies, KNK
Nexgen Construction Pvt Ltd and KNK Swami and Co. It constructs
factories, industrial houses, and commercial and residential
buildings for the Government of Karnataka and private entities
outside the state.
MANIPUR TEA: CRISIL Reaffirms B- Rating on INR4.80cr Cash Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable' rating on the
long-term bank facilities of Manipur Tea Co. Pvt Ltd (Manipur Tea;
part of the Mantri group).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.80 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.66 CRISIL B-/Stable (Reaffirmed)
Working Capital
Facility 0.88 CRISIL B-/Stable (Reaffirmed)
The rating continues to reflect group's exposure to seasonality of
tea production, high operating leverage, and weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the tea industry.
Analytical Approach
For arriving at its rating, CRISIL Ratings has combined the
business and financial risk profiles of Manipur Tea with Mantri Tea
Company Pvt Ltd (Mantri Tea), Derby Plantation Pvt Ltd (Derby), and
Ruttonpore Plantations Pvt Ltd (Ruttonpore) collectively referred
to as the Mantri group. This is because these entities have a
common management, and are in the same line of business, with
operational and financial linkages.
Unsecured loans have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to seasonality of tea production and high operating
leverage: Being a seasonal product, the production of tea depends
on the monsoon and remains susceptible to adverse weather
conditions. Tea plantations also incur fixed cost, with labour
alone accounting for nearly 40% of total cost. If tea production is
lower than expected, then the group could incur operating losses,
as seen in the past. Limited pricing power further constrains the
operating margin of small players like the Mantri group.
* Weak financial risk profile: The weak financial risk profile is
reflected in below-average debt protection metrics. Interest
coverage and net cash accrual to total debt ratios were negative
0.39 times and negative 0.14 time, respectively, for fiscal 2020
and estimated at 1.06 times and 0.01 time respectively in fiscal
2021. Gearing was high estimated at 4.41 times and networth stood
at INR10.7 crore as on March 31, 2021.
Strength
* Extensive experience of the promoters in the tea industry: The
promoters have an experience of five decades in the tea plantation
business, which has helped the group sustain its position, despite
regular volatility in prices, and report stable revenue growth over
the four fiscals through 2021. They have also supported the
business with need based unsecured loans to support the liquidity.
Liquidity: Poor
Liquidity profile of the group is poor. The group had net cash loss
of INR6.2 crore in fiscal 2020. Repayments of INR1.09 crore were
funded by unsecured loans from promoters and by stretching the
working capital cycle. Going forward accruals are expected to
remain inadequate for repayment of INR1-1.7 crore annually.
Repayments are expected to be supported by further infusion of
unsecured loan and funds released from working capital cycle.
Working capital limits were used at around 95% in last 12 months
through December, 2020. Current ratio was weak estimated at 0.55
time as on March 31, 2021.
Outlook: Stable
CRISIL Ratings believes that growth in revenue along with stable
operating margin will lead to healthy financial risk profile.
Rating Sensitivity factors
Upward factors
* Sustained improvement in revenue by at least 10% and stable
operating margin, leading to higher cash accrual (in excess of debt
obligation)
* Improvement in working capital cycle, with debtors falling below
45 days
Downward factors
* Overdrawing of working capital limit for more than 30 days
* Stretch in working capital cycle leading to further pressure on
liquidity
The Mantri group was formed in 1948 by Mr Govind Prasad Mantri. The
Manipur Tea Estate, located in Assam, was its first acquisition in
1954. Subsequently, the group acquired three more tea gardens in
Assam: Ruttonpore Tea Estate in 1986, Derby Tea Estate in 2005, and
Pathini Tea Estate (MTCPL) in 2006. Daily operations are now
overseen by the second and third-generation members of the promoter
family, along with a professional management team.
MANTRI TEA: CRISIL Reaffirms B- Rating on INR6cr Cash Loan
----------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable' rating on the
long-term bank facilities of Mantri Tea Company Private Limited
(Mantri Tea; part of the Mantri group)
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B-/Stable (Reaffirmed)
Term Loan 2.21 CRISIL B-/Stable (Reaffirmed)
Credit Limit 1.53 CRISIL B-/Stable (Reaffirmed)
Working Capital
Facility 1.53 CRISIL B-/Stable (Reaffirmed)
The rating continues to reflect group's exposure to seasonality of
tea production, high operating leverage, and weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the tea industry.
Analytical Approach
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Mantri Tea with Manipur Tea Co. Pvt Ltd
(Manipur Tea), Derby Plantation Pvt Ltd (Derby), and Ruttonpore
Plantations Pvt Ltd (Ruttonpore) collectively referred to as the
Mantri group. This is because these entities have a common
management, and are in the same line of business, with operational
and financial linkages.
Unsecured loans have been treated as debt.
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to seasonality of tea production and high operating
leverage: Being a seasonal product, the production of tea depends
on the monsoon and remains susceptible to adverse weather
conditions. Tea plantations also incur fixed cost, with labour
alone accounting for nearly 40% of total cost. If tea production is
lower than expected, then the group could incur operating losses,
as seen in the past. Limited pricing power further constrains the
operating margin of small players like the Mantri group.
* Weak financial risk profile: The weak financial risk profile is
reflected in below-average debt protection metrics. Interest
coverage and net cash accrual to total debt ratios were negative
0.39 times and negative 0.14 time, respectively, for fiscal 2020
and estimated at 1.06 times and 0.01 time respectively in fiscal
2021. Gearing was high estimated at 4.41 times and networth stood
at INR10.7 crore as on March 31, 2021.
Strength
* Extensive experience of the promoters in the tea industry: The
promoters have an experience of five decades in the tea plantation
business, which has helped the group sustain its position, despite
regular volatility in prices, and report stable revenue growth over
the four fiscals through 2021. They have also supported the
business with need based unsecured loans to support the liquidity.
Liquidity: Poor
Liquidity profile of the group is poor. The group had net cash loss
of INR6.2 crore in fiscal 2020. Repayments of INR1.09 crore were
funded by unsecured loans from promoters and by stretching the
working capital cycle. Going forward accruals are expected to
remain inadequate for repayment of INR1-1.7 crore annually.
Repayments are expected to be supported by further infusion of
unsecured loan and funds released from working capital cycle.
Working capital limits were used at around 95% in last 12 months
through December, 2020. Current ratio was weak estimated at 0.55
time as on March 31, 2021.
Outlook: Stable
CRISIL Ratings believes that growth in revenue along with stable
operating margin will lead to healthy financial risk profile.
Rating Sensitivity factors
Upward factors
* Sustained improvement in revenue by at least 10% and stable
operating margin, leading to higher cash accrual (in excess of debt
obligation)
* Improvement in working capital cycle, with debtors falling below
45 days
Downward factors
* Overdrawing of working capital limit for more than 30 days
* Stretch in working capital cycle leading to further pressure on
liquidity
The Mantri group was formed in 1948 by Mr Govind Prasad Mantri. The
Manipur Tea Estate, located in Assam, was its first acquisition in
1954. Subsequently, the group acquired three more tea gardens in
Assam: Ruttonpore Tea Estate in 1986, Derby Tea Estate in 2005, and
Pathini Tea Estate (MTCPL) in 2006. Daily operations are now
overseen by the second and third-generation members of the promoter
family, along with a professional management team.
MATHURAM SWASTHYA: Ind-Ra Keeps B+ Loan Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained the rating on
Mathuram Swasthya Evam Shikshan Sansthan's term loans 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 B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR106.50 mil. Term loans due on March 31, 2021 - September
30, 2023 maintained in non-cooperating category with IND B+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on June
9, 2017. Ind-Ra is unable to provide an update as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Mathuram Swasthya Evam Shikshan Sansthan, registered under the
Companies Act 1956, manages Dr. DY Patil Pushapalata Patil
International School in Kankarbagh, Patna.
NOVASYS GREENERGY: CRISIL Hikes Rating on INR15cr Loan to B+
------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facility of Novasys Greenergy Pvt Ltd (NGPL) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Long Term Loan 10 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects the expectation of improvement in the business
risk profile, driven by a timely ramp-up in operations, and
moderate revenue and operating margin of INR46 crore and around
12%, respectively, in fiscal 2021. Better capacity utilization
should lead to a ramp up in scale and hence better liquidity,
marked by higher accruals to meet repayments. Unsecured loan from
the promoters supports working capital management.
The rating reflects the modest scale of operations amid intense
competition, below-average financial risk profile and large working
capital requirement. These weaknesses are partially offset by the
extensive experience of the promoters in the energy business.
Analytical Approach
Unsecured loans of INR16.47 crore (outstanding as on March 31,
2021) have been treated as neither debt nor equity, as these loans
are expected to remain in the business over the medium term
Key Rating Drivers & Detailed Description
Weakness:
* Below-average financial risk profile: Financial risk profile is
constrained by a small networth of INR6.1 crore and high gearing of
3.44 times as on March 31, 2021. Debt protection metrics are
average with interest coverage ratio of 1.4 times and net cash
accrual to total debt ratio of 0.08 time for fiscal 2021. Large
working capital requirement may continue to strain the financial
risk profile.
* Large working capital requirement: Gross current assets were
high, estimated at 225 days as on March 31, 2021, driven by
moderate receivables of 80 days and large inventory of 100 days.
Receivables is expected to remain moderately high as the company
caters to established customers and needs to offer longer credit.
Given the nature of business, sizeable inventory is maintained.
Working capital requirement is expected to remain large over the
medium term
* Modest scale of operations amid intense competition: Intense
competition may continue to constrain scalability, pricing power
and profitability. Revenue is modest, estimated around INR46 crore
in fiscal 2021, but should improve over the medium term, aided by
better capacity utilization.
Strengths:
* Extensive experience of the promoters: Over two decades of
presence in the solar panel manufacturing industry has helped the
promoters build strong relationships with suppliers and customers,
and will continue to support the business.
Liquidity: Stretched
Expected cash accrual of INR3.2-3.4 crore should comfortably cover
the maturing debt of INR1.3-2.1 crore over the medium term. Bank
limit utilization was high, averaging around 93.12% for the 12
months ended March 31, 2021. Current ratio was healthy at 2.46
times on March 31, 2021. The promoters may extend support via
unsecured loans to cover the working capital requirement and debt
obligation. The company opted for a moratorium for servicing of
debt till August 2020.
Outlook Stable
CRISIL Ratings believes NGPL will continue to benefit from the
extensive experience of its promoters in the energy business.
Rating sensitivity factors
Upward factors
* Sustained revenue growth by 25% and stable operating
profitability
* Better working capital management, improving the overall
financial risk profile
Downward factors
* Decline in revenue (by 20%) and operating margin, leading to
lower-than-expected cash accrual
* Stretch in the working capital cycle, impacting financial risk
profile
The company was incorporated as Jiyamaa Sales & Marketing Pvt Ltd
in 2004, and was engaged in coal trading. It got its present name
in 2017 and is now being restructured to manufacture solar power
modules and offer solar power management services. Operations
started from November 2019. The registered office is in Kolkata,
West Bengal, and the manufacturing plant is coming up at Nagpur,
Maharashtra. Operations are managed by Mr Ramesh Bansal and his
family members.
PATIALA COTSPIN: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Patiala Cotspin
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 BB+ (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR70 mil. Fund-based limits maintained in non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING)/ IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR14.2 mil. Non-fund-based limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR232.31 mil. Term loan due on December 2022 maintained in
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING) rating;
-- INR45 mil. Proposed term loan withdrawn (the company did not
proceed with the instrument as envisaged) rating; and
-- INR10 mil. Proposed fund-based limits withdrawn (the company
did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 9, 2015. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2010, Patiala Cotspin manufactures yarn.
PHADNIS CLINIC: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Phadnis Clinic
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 B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR125 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND
A4 (ISSUER NOT COOPERATING) rating; and
-- INR415 mil. Term loan due on April 2033 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 8, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Pune-based PCPL is a private company incorporated on 22 March 1991.
It has a hospital that provides cardiology, orthopedics, neurology,
dental, surgeries, pediatric, gynae and obstetrics specialty
services.
PULIKKOTTIL LAZAR: CRISIL Cuts Rating on INR16.67cr Loan to B+
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Pulikkottil Lazar and Sons Jewellery Pvt Ltd (PLSJPL)
from 'CRISIL BB-/Stable' to 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term
Bank Loan Facility 16.67 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Working Capital
Term Loan 1.33 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The downgrade reflects stretch in liquidity reflected in full
utilization of bank lines and low accruals to meet repayment
obligation. Business risk profile, marked by increase in revenues
continues to support the rating.
The rating continues to reflect modest scale of operations amid
intense competition, large working capital requirement and
below-average financial risk profile. These weaknesses are
partially offset by the extensive experience of its promoters in
the retail gold jewellery segment
Analytical Approach
For arriving at its rating, CRISIL Ratings had earlier combined the
business and financial risk profiles of PLSJPL, Pulikkottil Lazar
and Sons Jewellery (PLSJ)-Kunnakulam, PLSJ-Kechery, and
PLSJ-Pattambi. However, based on management stance, CRISIL Ratings
has now taken a standalone approach for PLSJPL as the entities are
now managed independently.
Estimated unsecured loans of INR1.09 crore (as on March 31, 2021)
from the promoters have been treated as neither debt nor equity as
these are expected to be retained in the business over medium term
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Revenue was
subdued at INR38 crore in fiscal 2021, despite increase from
INR17.22 crore in fiscal 2020, due to intense competition in the
jewellery business. This leads to low pricing flexibility and
constrained profitability.
* Large working capital requirement: Gross current assets are
estimated at 108 days as on March 31, 2021, because of large
inventory (inherent in the jewellery retailing segment Operations
are likely to remain working capital intensive over the medium
term.
* Below-average financial risk profile: Gearing and total outside
liabilities to adjusted networth (TOLANW) ratio are estimated to be
weak at 3.85 times and 4.22 times, respectively, as on March 31,
2021. High reliance on working capital limit will keep capital
structure leveraged over the medium term. Debt protection metrics
remained muted due to low operating margin: estimated interest
coverage and net cash accrual to adjusted debt ratios were 1.21
times and 0.01 time, respectively, for fiscal 2021. The metrics are
likely to remain at similar levels over the medium term.
Strength:
* Extensive experience of the promoters: Presence of around four
decades in the jewellery retailing business has enabled the
promoters to successfully navigate business cycles and build
longstanding relationships with suppliers and key customers.
Liquidity Poor
Cash accrual is expected to be INR0.1-0.2 crore for fiscals 2022
and 2023 against debt obligation of INR0.22 crore and INR0.44
crore, respectively. Unsecured loans from the promoters will
provide additional support to liquidity. Fund-based limit of INR7.0
crore was fully utilised during the 10 months through January 2021.
Cash and equivalent were low at INR0.04 crore as on March 31, 2020.
Moratorium was availed by company amid COVID-19 as per RBI
guidelines.
Outlook Stable
The company will continue to benefit from the extensive experience
of its promoters
Rating Sensitivity factors
Upward factors
* Sustained growth in revenue and operating profitability leading
to increase in cash accrual to aboveINR1 crores
* Improvement in TOLANW ratio
Downward factors
* Drop in revenue and decline in operating margin below 2% leading
to lower accrual
* Increase in debt further weakening TOLANW ratio above 5 times
Set up in 2019 in Kerala by Mr Jomy Varghese and Mr Jimmy Varghese,
PLSJPL operates a gold jewellery showroom in Thrissur.
RAMKY INFRA: CRISIL Raises Rating on INR749.82cr Loan to C
----------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
Ramky Infrastructure Ltd (RIL) to 'CRISIL C' from 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 65.76 CRISIL D Withdrawn
Bank Guarantee 98.83 CRISIL C (Upgraded from
'CRISIL D ')
Bank Guarantee 749.82 CRISIL C (Upgraded from
'CRISIL D ')
Cash Credit 110.00 CRISIL C (Upgraded from
'CRISIL D ')
Cash Credit 52.31 CRISIL D Withdrawn
Cash Credit 30.47 CRISIL C (Upgraded from
'CRISIL D ')
Letter of Credit 25 CRISIL C (Upgraded from
'CRISIL D ')
Proposed Bank
Guarantee 606.07 CRISIL D Withdrawn
Proposed Cash
Credit Limit 648.43 CRISIL D Withdrawn
Proposed Working
Capital Facility 260.02 CRISIL D Withdrawn
Term Loan 440.52 CRISIL D Withdrawn
Working Capital
Loan 45.7 CRISIL C (Upgraded from
'CRISIL D ')
Working Capital
Loan 155.0 CRISIL C (Upgraded from
'CRISIL D ')
Working Capital
Loan 8.76 CRISIL D Withdrawn
CRISIL Ratings has withdrawn its rating on the term loan facility
of INR440.52 crore on the company's request and confirmation from
the statutory auditor that no long-term debt was outstanding as on
April 30, 2021. Also, CRISIL Ratings has withdrawn its rating on
the working capital facility of INR1641.35 crore basis confirmation
of sanctioned lines by the statutory auditor and on the company's
request. This is in-line with CRISIL Ratings' withdrawal policy.
The upgrade factors in a track record of more than three months in
timely debt servicing. The company does not have long-term loan
outstanding as on April 30, 2021. Debt servicing on working capital
demand loan (WCDL) and cash credit facilities have been timely.
While there are instances of overutilisation of WCDL, it is due to
interest charged on the last day of the month, which is recovered
from the cash credit lines on the next working day. As confirmed by
all the lenders this is an operational issue.
The ratings continue to reflect the company's modest debt
protection metrics and working capital intensive operations. These
weaknesses are partially offset by RIL's established position in
the construction industry, and improvement in capital structure.
Analytical Approach
CRISIL Ratings has combined the business and financial risk
profiles of RIL and its special purpose vehicle (SPV) Sehore Kosmi
Tollways Ltd where the company has extended corporate guarantee of
INR5.12 crore. The company has also extended corporate guarantee to
its SPV, Srinagar Banihal Expressway Ltd. However, given the
validity of the same is being contested in the High Court, the debt
of these SPVs have not been consolidated with RIL. CRISIL Ratings
has moderately combined the business and financial risk profiles of
RIL with its subsidiaries to the extent of support requirement.
CRISIL Ratings has considered interest-bearing unsecured loans from
the promoters/subsidiaries or inter corporate deposits from related
parties as debt (INR405 crore as on March 31, 2020).
Key Rating Drivers & Detailed Description
Strengths:
* Established position in the construction industry, and moderate
revenue visibility: The experience of over two decades of the
promoters (in the construction of roads and buildings, power, and
in irrigation and water projects), established execution
capabilities, and healthy relationship with customers, should
continue to support the business. The group manages projects
efficiently, backed by its trained labour force, adequate
equipment, and good sub-contracting management systems.
Operating performance in fiscal 2021 was impacted because of the
lockdown imposed by the central government to curb Covid-19 –
revenue declined by around 32% in 9MFY21 as compared to 9MFY20.
Revenue was impacted in the first and second quarters of fiscal
2021, operations reached pre-Covid levels in the third and
continued at a similar pace in the fourth. Operating performance is
expected to remain under pressure in this fiscal as well given the
second wave of the pandemic. However, orders of ~Rs 2600 crore
outstanding as on December 31, 2020 are to be executed in the next
2-3 years. Order book to revenue (fiscal 2020) ratio is about ~2
times, which gives visibility for the near-to-medium term.
* Improvement in capital structure: Debt has reduced substantially
in the last two fiscals as reflected in the sharp reduction in
total outside liabilities to adjusted networth ratio to 2.8 times
as on March 31, 2020 (estimated at a similar level for fiscal 2021)
from 9.26 times as on March 31, 2017. The company has relied on
unsecured loans from the promoters/subsidiaries and sales proceeds
from monetising assets including sale of NAM Expressways to reduce
debt. Unsecured loans from promoters/subsidiaries have increased
from INR136 crore as on March 31, 2017 to INR405 crore as on March
31, 2020. Additionally, external debt has come down from INR1200
crore to INR350 crore for the same period (Rs 300 crore as on
December 31, 2020). There is no long-term loan outstanding as on
April 30, 2021.
Weakness:
* Modest debt protection metrics: While the debt has come down to
around INR300 crore as on December 31, 2020, moderate accrual
limits the improvement in debt protection metrics. Interest
coverage stood at 1.5 times during the first nine months of fiscal
2021 (it has remained at 1.0-1.5 times in the past three years).
Also net cash accrual to total debt ratio has remained low at
0.5-0.10 time in the last three fiscals.
* Working capital intensive operations: Operations remain working
capital intensive with gross current assets of around 272 days as
on March 31, 2020 driven by large debtors of ~125 days and
inventory days of around 95.
Liquidity: Poor
There is no buffer in the fund-based working capital limits and
unencumbered cash balances are minimal. Fund-based limit was
utilised 97% on average in the six months ended March 2021.
Further, unencumbered cash balances were low at around INR12 crore
as on March 31, 2021. The company however does not have any
repayment obligations (term loan is nil as on April 30, 2021).
Rating Sensitivity factors
Upward factors
* Improvement in operating performance while sustaining operating
margin of above 5% on annual basis.
* Maintaining an adequate financial risk profile
Improvement in liquidity and working capital cycle
Downward factors
* Significant deterioration in operating performance
* Stretch in the working capital cycle
RIL, the flagship company of the Ramky group, was incorporated as
Ramky Engineers Pvt Ltd in 1994 to provide civil and environmental
engineering consultancy services. In 1998, it started executing
civil and environmental engineering, procurement, and construction
projects, primarily in the water and waste-water sector.
Subsequently, it expanded into road, building, irrigation, and
industrial construction. In 2003, the company got its present name
and was thereafter reconstituted as a public limited company. RIL
principally operates in two business segments: construction (under
RIL) and development (under SPVs). In the development business, the
group constructs roads under built-operate-transfer (BOT modes,
industrial parks, special economic zones, and bus terminals.
RIL's debt was restructured in June 2015 by the Joint Lenders Forum
comprising seven lenders.
For nine months ended December 31, 2020, the company reported
topline of INR658 crore against net profit of INR6 crore as
compared to topline and net loss of INR972 crore and INR9 crore,
respectively, for the corresponding period last year.
RUBBER PRODUCTS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of The Rubber
Products Limited (RPL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4.50 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 1.25 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 3.50 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RPL for
obtaining information through letters and emails dated February 22,
2021 and April 28, 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 RPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
RPL was originally set up by the late Mr. Narayan Shetty in 1966
and reconstituted as a public listed company with the present name
in 1989. In 2006, the late Mr. Sadanand Shetty (friend of Mr.
Narayan Shetty) acquired a majority shareholding in the company.
RPL manufactures rubber products such as sheets, hoses, coated
fabric, extruded rubber products, boats and jackets, mini water
tanks (collapsible ponds), and inflammable storage spaces. Its
overall operations are managed by Ms. Sucharita Hegde, daughter of
Mr. Sadanand Shetty.
RUTTONPORE PLANTATIONS: CRISIL Reaffirms B- Rating on INR7cr Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B-/Stable' rating on the
long-term bank facilities of Ruttonpore Plantations Pvt Ltd
(Ruttonpore; part of the Mantri group).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B-/Stable (Reaffirmed)
Working Capital
Facility 0.37 CRISIL B-/Stable (Reaffirmed)
Proposed Cash
Credit Limit 0.37 CRISIL B-/Stable (Reaffirmed)
The rating continues to reflect group's exposure to seasonality of
tea production, high operating leverage, and weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the tea industry.
Analytical Approach
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Ruttonpore with Manipur Tea Co. Pvt Ltd
(Manipur Tea), Mantri Tea Company Pvt Ltd (Mantri Tea) and, Derby
Plantation Pvt Ltd (Derby), collectively referred to as the Mantri
group. This is because these entities have a common management, and
are in the same line of business, with operational and financial
linkages.
Unsecured loans have been treated as debt.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to seasonality of tea production and high operating
leverage: Being a seasonal product, the production of tea depends
on the monsoon and remains susceptible to adverse weather
conditions. Tea plantations also incur fixed cost, with labour
alone accounting for nearly 40% of total cost. If tea production is
lower than expected, then the group could incur operating losses,
as seen in the past. Limited pricing power further constrains the
operating margin of small players like the Mantri group.
* Weak financial risk profile: The weak financial risk profile is
reflected in below-average debt protection metrics. Interest
coverage and net cash accrual to total debt ratios were negative
0.39 times and negative 0.14 time, respectively, for fiscal 2020
and estimated at 1.06 times and 0.01 time respectively in fiscal
2021. Gearing was high estimated at 4.41 times and networth stood
at INR10.7 crore as on March 31, 2021.
Strength
* Extensive experience of the promoters in the tea industry: The
promoters have an experience of five decades in the tea plantation
business, which has helped the group sustain its position, despite
regular volatility in prices, and report stable revenue growth over
the four fiscals through 2021. They have also supported the
business with need based unsecured loans to support the liquidity.
Liquidity: Poor
Liquidity profile of the group is poor. The group had net cash loss
of INR6.2 crore in fiscal 2020. Repayments of INR1.09 crore were
funded by unsecured loans from promoters and by stretching the
working capital cycle. Going forward accruals are expected to
remain inadequate for repayment of INR1-1.7 crore annually.
Repayments are expected to be supported by further infusion of
unsecured loan and funds released from working capital cycle.
Working capital limits were used at around 95% in last 12 months
through December, 2020. Current ratio was weak estimated at 0.55
time as on March 31, 2021.
Outlook Stable
CRISIL Ratings believes that growth in revenue along with stable
operating margin will lead to healthy financial risk profile.
Rating Sensitivity factors
Upward factors
* Sustained improvement in revenue by at least 10% and stable
operating margin, leading to higher cash accrual (in excess of debt
obligation)
* Improvement in working capital cycle, with debtors falling below
45 days
Downward factors
* Overdrawing of working capital limit for more than 30 days
* Stretch in working capital cycle leading to further pressure on
liquidity
The Mantri group was formed in 1948 by Mr Govind Prasad Mantri. The
Manipur Tea Estate, located in Assam, was its first acquisition in
1954. Subsequently, the group acquired three more tea gardens in
Assam: Ruttonpore Tea Estate in 1986, Derby Tea Estate in 2005, and
Pathini Tea Estate (MTCPL) in 2006. Daily operations are now
overseen by the second and third-generation members of the promoter
family, along with a professional management team.
S.A.AANANDAN: Ind-Ra Corrects June 10, 2021 Rating Release
----------------------------------------------------------
India Ratings and Research (Ind-Ra) rectified S.A. Aanandan
Spinning Mills Private Limited's (SASMPL) rating release published
on June 10, 2021 to correctly state the figures in the financial
summary section.
The amended version is:
India Rating and Research (Ind-Ra) has upgraded SASMPL Long-Term
Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR66 mil. Term loan due on March 2026 upgraded with IND BB/
Stable rating;
-- INR500 mil. Fund-based facilities Long-term upgraded; short-
term affirmed with IND BB/Stable /IND A4+ rating; and
-- INR55 mil. Non-fund-based facilities affirmed with IND A4+
rating.
The upgrade reflects SASMPL's stronger-than-expected performance in
FY21.
KEY RATING DRIVERS
Despite the impact of COVID-19-led disruptions, SASMPL's revenue
rose to INR1,376 million in FY21 (FY20: INR1,356 million), against
Ind-Ra's expectations of a decline in the same, due to an increase
in the number of orders received by the company and an increase in
realizations. The scale of the operation continued to be medium.
The figures for FY21 are provisional in nature. Ind-Ra expects the
revenue to grow slightly in the near-to-medium term due to a likely
increase in demand for the finer yarn counts.
Also, while SASMPL's EBITDA margin declined to a modest 6.7% in
FY21 (FY20: 7.3%), the fall was not as sharp as that expected by
Ind-Ra (5.9%). The EBITDA margin fell because of an increase in raw
material prices. The return on capital employed was 10% in FY21
(FY20: 9%). Ind-Ra expects the EBITDA margin to dip slightly in
FY22 due to a continued increase in raw material prices.
With respect to the credit metrics, the interest coverage
(operating EBITDA/gross interest expense) improved to 1.9x in FY21
(FY20: 1.5x), against Ind-Ra's expectation of a deterioration in
the same to 1.06x, due to a fall in the interest expenses to INR49
million (INR69 million). The net leverage (adjusted net debt/
operating EBITDAR) deteriorated to only 5.7x in FY21 (FY20: 5.4x)
against the agency's expectation of 9.4x. The leverage weakened
owing to a decline in the absolute EBITDA to INR93 million
(INR100 million). Ind-Ra expects the credit metrics to improve
marginally in FY22 due to the likely reduction of the debt through
the scheduled repayments.
Liquidity Indicator – Stretched: Ind-Ra expects SASMPL's
liquidity position to improve in FY22 due to a likely continued
improvement in the net working capital cycle and an increase in the
absolute EBITDA. SAMPL's average utilization of the fund-based
limits was 83% during the 12 months ended March 2021. The cash flow
from operations decreased to INR8.5 million in FY21 (FY20: INR58.2
million) due to an unfavorable change in the net working capital.
The net cash cycle remained elongated but improved to 128 days in
FY21 (FY20: 136 days) owing to a decrease in the inventory period
to 127 days (143 days). The company had a cash balance of INR4
million at FYE21 (FYE20: INR8 million). SASMPL has repayment
obligations of INR29.6 million each for FY22 and FY23, which will
be met through net cash accruals. The company had availed the
Reserve Bank of India-prescribed debt moratorium for
April–September 2020; it has repaid the entire moratorium
outstanding.
The ratings, however, continue to be supported by the promoters'
two-decade-long experience in the cotton yarn manufacturing
business
RATING SENSITIVITIES
Negative: A decline in the scale of operations and EBITDA margin,
leading to deterioration in the credit metrics on sustained basis,
and/or weakening of the liquidity profile, will be negative for the
ratings.
Positive: An improvement in the scale of operations or EBITDA
margin, leading to an improvement in the credit metrics, with the
interest coverage exceeding 2.0x on sustained basis, will be
positive for the ratings.
COMPANY PROFILE
Incorporated in 1996, SASMPL manufactures cotton yarn in the count
range of 20s-80s. It has an annual installed capacity of 21,250
spindles.
S.K. AGARWAL: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained S.K. Agarwal &
Co.'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 now appear as 'IND BB
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR745 mil. Fund-based limits maintained in non-cooperating
category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER
NOT COOPERATING) rating; and
-- INR50 mil. Proposed bank facilities withdrawn (The ratings
have been withdrawn since the instruments were outstanding
for more than 180 days).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 6, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
S.K. Agarwal & Co. is a partnership firm engaged in the trading of
steel products such as mild steel plates, chequered plates,
hot-rolled sheets and coils, cold-rolled coils and structural steel
products. The firm is a distributor of JSW Steel Limited and Jindal
Steel & Power Limited in northern India.
SDS INFRATECH: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of SDS Infratech
Private Limited (SIPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 11 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SIPL for
obtaining information through letters and emails dated December 18,
2020 and April 20, 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 SIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIPL continues to be 'CRISIL D Issuer Not Cooperating'.
SIPL, formed in 2008 and based in Delhi, undertakes real estate
development. The company is promoted by Mr. Deepak Bansal. It is
developing two residential projects, both under NRI residency, at
Noida and Greater Noida.
SHREEDHAR MILK: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shreedhar
Milk Foods Limited (SMFL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 165 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 81.26 CRISIL D (Issuer Not
Cooperating)
Proposed Cash
Credit Limit 83.74 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SMFL for
obtaining information through letters and emails dated December 18,
2020 and April 28, 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 SMFL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMFL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SMFL continues to be 'CRISIL D Issuer Not Cooperating'.
SMFL was incorporated as A Kumar Milk Foods Pvt Ltd in Delhi in
2005; it was renamed in 2011. The company processes milk and sells
milk and milk products. The promoters, Mr Shyam Goel and his son,
Mr Anirudh Goel, manage the operations.
SHRESHT INDUSTRIES: CRISIL Moves D Debt Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Shresht Industries Private Limited (SIPL) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SIPL for
obtaining information through letters and emails dated April 23,
2021, May 12, 2021 and May 17, 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 SIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIPL
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 SIPL to 'CRISIL D Issuer not cooperating'.
SIPL, based in Hyderabad and incorporated in 2013, manufactures
water purifiers for domestic and industrial use, under the Shresht
RO brand. The company is promoted by Mr Pattela Gaurav and his
family.
SIDHANATH SUGAR: CRISIL Moves D Debt Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Sidhanath Sugar Mills Limited (SSML) to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Pledge Loan 75 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Working
Capital Facility 20 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Rupee Term Loan 10 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Sugar Pledge 40 CRISIL D (ISSUER NOT
Cash Credit COOPERATING; Rating Migrated)
Term Loan 25 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SSML for
obtaining information through letters and emails dated May 12, 2021
and May 17, 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 SSML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSML
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 SSML to 'CRISIL D Issuer not cooperating'.
Incorporated in 2000 and promoted by Mr Dilip Mane, SSML
manufactures sugar at its plant in Tirhe, Maharashtra, which has an
installed capacity of 6,000 tonne crushing per day. It also has a
26-megawatt co-generation power plant.
SIKKIM FERRO: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sikkim Ferro
Alloys Limited (SFAL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 300 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 140 CRISIL D (Issuer Not
Cooperating)
Standby Letter
of Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFAL for
obtaining information through letters and emails dated March 31,
2021 and April 28, 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 SFAL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFAL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SFAL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SFAL was founded in 1998 by Mr Kamlesh Kanungo, a first-generation
entrepreneur. The company trades in ferroalloys, steel scrap, and
related products. It has also undertaken factory dismantling and
ship breaking to generate and sell scrap.
Mr Kanungo also established Trisons Impex (rated 'CRISIL D Issuer
not cooperating') as a sole proprietorship firm in 2001; the firm
operates in the same line of business.
Mr Kanungo oversees the operations of the two entities. The Kanungo
family has various business interests, such as real estate
development and movie production.
SITARAM GEMS: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sitaram Gems'
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:
-- INR350 mil. Fund-based limit* maintained in the non-
cooperating category and withdrawn;
-- Non-fund-based limit** maintained in the non-cooperating
category and withdrawn.
* Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being
withdrawn.
** Maintained at '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.
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 2001, Sitaram Gems is a partnership firm engaged in
diamond manufacturing, and rough diamond cutting and polishing.
SUKRA JEWELLERY: CRISIL Lowers Rating on INR5cr Cash Loan to B
--------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Sukra
Jewellery (SJ) to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 5 CRISIL B/Stable (ISSUER NOT
Overdraft facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
CRISIL Ratings has been consistently following up with SJ for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 SJ, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJ is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SJ
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
SJ was set up in 2007 as a proprietorship by Mr A Kalkiraju, and is
engaged in retailing of silver jewellery and artefacts. It has a
retail store located in Chennai.
SUN BLUES: CRISIL Lowers Rating on INR12cr Cash Loan to B
---------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Sun
Blues (SB) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable ((ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with SB for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 SB, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SB is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SB
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB/Stable Issuer Not Cooperating'.
SB, promoted by Mr K Sabapathy and Mrs Ritha Sabapathy,
manufactures blue metals and M-sand. The firm operates eight
quarries in and around Vellore, Tamil Nadu.
SUVIDHA PARKLIFT: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Suvidha Parklift Limited
202, 2nd Floor, Raj Tower-1 G-1
Alaknanda Community Centre
New Delhi 110019
India
Insolvency Commencement Date: May 31, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: November 26, 2021
Insolvency professional: Mr. Nishant Gaurav Gupta
Interim Resolution
Professional: Mr. Nishant Gaurav Gupta
"Siddhant Advocates"
Flat No. 542, 1st Floor
DDA SFS Flats, Sector 22
Pocket 1, Dwarka
New Delhi 110077
E-mail: nishantgaurav@outlook.in
spl.ibc@outlook.in
Last date for
submission of claims: June 16, 2021
SYBLY INDUSTRIES: CRISIL Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sybly
Industries Limited (SIL) continue to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL C (Issuer Not
Cooperating)
Proposed Long Term 4 CRISIL C (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SIL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 SIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SIL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SIL continues to be 'CRISIL C Issuer Not Cooperating'.
Established in May 1988, SIL is promoted by Mr Mahesh Chand Mittal
and his son, Mr Nishant Mittal. It manufactures polyester yarn and
trades in cotton fabrics. SIL's plant is in Muradnagar, Uttar
Pradesh. The company is listed on the Bombay Stock Exchange.
SYNDICATE JEWELLERS PVT: CRISIL Moves D Rating to Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Syndicate Jewellers Private Limited (SJPL; part of the Syndicate
group) to 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 62 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SJPL for
obtaining information through letters and emails dated February 27,
2021 and March 31, 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 SJPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJPL
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 SJPL to 'CRISIL D Issuer not cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of SJPL and Syndicate
Jewellers (SJ), as the two entities, together referred to as the
Syndicate group, are under a common management and have strong
operational and financial linkages.
Incorporated in 2001 and promoted by Mr Rajendra Tosawad and Mr
Amar Singh Tosawad, SJPL retails gold and diamond ornaments,
premium watches, platinum jewellery, and other lifestyle items. SJ,
a proprietorship firm of Mr Rajendra Tosawad, has been operating a
jewellery showroom in Bhubaneswar since 1988.
SYNDICATE JEWELLERS: CRISIL Moves D Rating to Not Cooperating
-------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Syndicate Jewellers (SJ; part of the Syndicate group) to 'CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SJ for
obtaining information through letters and emails dated February 27,
2021 and March 31, 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 SJ, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJ 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 SJ to 'CRISIL D Issuer not cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of SJPL and SJ, as the two
entities, together referred to as the Syndicate group, are under a
common management and have strong operational and financial
linkages.
Incorporated in 2001 and promoted by Mr Rajendra Tosawad and Mr
Amar Singh Tosawad, SJPL retails gold and diamond ornaments,
premium watches, platinum jewellery, and other lifestyle items. SJ,
a proprietorship firm of Mr Rajendra Tosawad, has been operating a
jewellery showroom in Bhubaneswar since 1988.
TEMPLE CITY: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Temple City
Developers Private Limited (TCDPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TCDPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 TCDPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TCDPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TCDPL continues to be 'CRISIL D Issuer Not Cooperating'.
TCDPL, based in Odisha, was established in 1995 and was taken over
by Mr. Pradeep Kumar Mangaraja in 2003-04 (refers to financial
year, April 1 to March 31) from its earlier promoters. The company
commenced operations in April 2013. TCDPL trades in iron ore fines
and construction materials; its operations are managed by Mr.
Pradeep Kumar Mangaraja and Mr. Bijaya Kumar Pradhan.
UNNATI WRITING: CRISIL Moves D Debt Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Unnati
Writing Products Private Limited to 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with Unnati for
obtaining information through letters and emails dated April 23,
2021, May 12, 2021 and May 17, 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 Unnati, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Unnati 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 Unnati to 'CRISIL D Issuer not cooperating'.
Unnati was set up as a partnership firm by Mr Sudarshan Gupta, his
brother Mr Suranjan Gupta, and Mr Raj Kumar Goel in 2001. It was
reconstituted as a private limited company in 2009. The company
manufactures ball pens, fountain pens, roller pens, and gel pens.
VIJAYAWADA ELECTRICITY: CRISIL Moves D Rating to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of The
Vijayawada Electricity Employees Co-Operative Credit Society
Limited (TVECSL) to 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 10 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with TVECSL for
getting information and has requested cooperation and information
from the issuer through letters dated March 31, 2021, and April 20,
2021, apart from telephonic communication. However, the issuer has
continued to be 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 TVECSL, restricting the ability
of CRISIL Ratings to take a forward-looking view on the entity's
credit quality. The rating action on TVECSL is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the ratings on bank facilities of TVECSL migrated to
'CRISIL B+/Stable Issuer Not Cooperating'.
TVECSL caters only to Southern Discom employees, and its scope of
operations is thus, restricted to the Krishna district of Andhra
Pradesh. It had a base of about 1,160 members as on September 30,
2019. The society collects thrift and other mandatory deposits from
its members and accepts fixed deposits from, and extends loans to,
them. Monthly thrift, other mandatory deposits and loan instalments
are collected directly via salary deductions, which are remitted to
the society. As on March 31, 2019, the society's total member
deposits stood at INR12.8 crore, with a loan portfolio of INR31.0
crore.
ZEE FABRICS: Ind-Ra Cuts Long-Term Issuer Rating to 'BB+'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Zee Fabrics'
(ZF) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR380.0 mil. Fund-based facilities downgraded with IND BB+/
Stable/IND A4+ rating.
The downgrade reflects a significant decline in ZF's top-line in
FY21, and deterioration in the liquidity profile, resulting from
elongation in the working capital cycle.
KEY RATING DRIVERS
ZF's revenue plummeted by 40% yoy to INR1,980 million in FY21
(provisional figures) due to the impact of COVID-19-led
disruptions. Furthermore, its main brand, Mafatlal, contributed 59%
to the total sales in FY21 (FY20:45%). However, the firm has been
leveraging Mafatlal's strong brand presence in the uniform fabric
market to obtain orders from new customers across different
segments, as it offers various types of uniform apparels for
schools, corporates, industries and hospitals. As a result, Ind-Ra
expects the firm's revenue to remain stable in FY22.
Liquidity Indicator-Stretched: The cash flow from operations
turned negative at INR21.86 million in FY21 (FY20:INR182 million)
due to an elongation in the working capital cycle to 137 days (75
days) and decline in the absolute EBITDA by 39% yoy to INR116.28
million. The working capital cycle deteriorated because of an
increase in the inventory holding days to 117 days in FY21 (FY20:
72days) and a rise in the debtor days to 49 days (34 days). The
free cash flow turned negative at INR36.10 million in FY21 (FY20:
INR175.51 million) owing to the undertaking of regular capex of
INR14.24 million. The average maximum utilization of the
fund-based limits was 80% over the 12 months ended April 2021.
Against a cash balance of INR70.34 million at FYE21 (FYE20:
INR31.07 million), the firm has annual repayment obligations of
INR25.2 million and INR6.5 million for FY22 and FY23, respectively.
The firm had availed the Reserve Bank of India-prescribed
moratorium over April-August 2020. In addition, during FY21, the
company had availed a COVID-19 emergency credit facility of INR38
million under the guaranteed emergency credit line scheme to
support the working capital requirements. Ind-Ra expects the cash
flows from operations and free cash flows to remain negative in
FY22. Also, the working capital cycle likely to remain stretched in
FY22 because of the overall economic slowdown and the impact of
COVID-19-led disruptions.
The ratings reflect the modest EBITDA margins due to the nature of
the business. Ind-Ra expects the margins to remain stable in FY22
owing to the firm's decision to opt for order-backed inventory as a
measure to reduce the costs resulting from the impact of the
pandemic-related issues. In FY21, despite the sharp fall in the
revenue, the margin remained stable at 5.87% (FY20: 5.85%) on the
back of reduction in manufacturing expenses, material costs and
labor costs. The ROCE stood at 11% in FY21 (19%) The movements in
the firm's EBITDA margins are determined by the expenses, primarily
of job work charges for conversion of yarn to fabric, as it does
not have a manufacturing unit.
The ratings factor in the moderate credit metrics due to the modest
margins and increase in debt levels (FY21: INR512.81million; FY20:
INR442.44million). The credit metrics weakened in FY21 in line with
Ind-Ra's expectations and are likely to deteriorate further in
FY22, as the firm's utilization of the working capital limits is
likely to increase, owing to the need to fund its order-backed
inventory business, and the EBITDA levels are likely to remain
stable. The credit metrics weakened in FY21 due to an increase in
the overall debt levels, and hence, the interest expenses. The debt
levels increased due to an increase in the unsecured loans from
promoters and relatives, bearing interest of 12%, to
INR153.8million in FY21 (FY20:INR26.44 million). Moreover, the
interest expenses increased owing to a rise in the interest paid to
partners as well. The net leverage (total adjusted net
debt/operating EBITDA) was 3.8x in FY21 (FY20:2.15x) and the gross
interest coverage (operating EBITDA/gross interest expense) was
1.48x (2.54x).
The ratings also factor in the inherent risks associated with the
partnership nature of the business, including the risk of capital
withdrawal by the partners at the time of personal contingency.
However, the same has been mitigated to some extent by the infusion
of funds by partners into the business.
The ratings continue to draw comfort from ZF's strategic
association with an established uniform apparel brand, Mafatlal,
with sole distributorship rights across India. This offers
stability to its operations and curtails off-take risks.
The ratings are also supported by the promoters' experience of four
decades in the uniform apparel trading business, leading to
established relationships with customer and suppliers. Moreover, ZF
has ramped up its operations steadily since inception, supported by
the growing demand for uniform apparel in the Indian market.
RATING SENSITIVITIES
Negative: A substantial decrease in the scale of operations along
with deterioration in the liquidity and business profile, leading
to the interest coverage remaining below 1.5x, could be negative
for the ratings
Positive: A substantial increase in the scale of operations along
with an improvement in the liquidity and business profile, leading
to the interest coverage exceeding 2.25x, on a sustained basis,
could be positive for the ratings.
COMPANY PROFILE
Established in November 2012, ZF is a partnership firm and is the
sole distributor of uniforms apparels of Mafatlal Industries
Limited in India. The uniforms are sold all across India through a
network of dealers. The firm has a warehouse in Bhiwandi (Thane
district in Maharashtra) and Bhilwara (Rajasthan).
=================
I N D O N E S I A
=================
BUMI SERPONG: Moody's Affirms Ba3 CFR on Good Marketing Sales
-------------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 corporate family
rating of Bumi Serpong Damai TBK (P.T.) (BSD).
At the same time, Moody's has affirmed the Ba3 backed senior
unsecured rating of the 2023 notes and 2025 notes issued by Global
Prime Capital Pte. Ltd., a wholly owned subsidiary of BSD. The
notes are guaranteed by BSD and a few of its subsidiaries.
The outlook on all ratings remains stable.
"The rating affirmation reflects BSD's established position as one
of the largest property developers in Indonesia, and its ability to
alter products to changing market demand, which supports its track
record of good marketing sales despite a difficult operating
environment," says Jacintha Poh, a Moody's Vice President and
Senior Credit Officer.
"The stable outlook reflects our expectation that BSD will maintain
financial discipline and very good liquidity as it pursues growth.
Credit metrics will stay weak in 2021 as the company proceeds with
the debt-funded construction of a toll road but will improve to
levels appropriate for its Ba3 rating in 2022," adds Poh.
RATINGS RATIONALE
In the first quarter of 2021, BSD achieved IDR1.5 trillion of
marketing sales, excluding sales from joint venture projects, such
as Nava Park and The Zora. This level is on track to meet the
company's full-year target of IDR6 trillion and Moody's expectation
of around IDR5.8 trillion. Both the company's and Moody's
expectations incorporated around IDR1 trillion from the sale of
land to BSD's 40-60 joint venture with Mitbana Pte Ltd for
Transit-Oriented Developments.
Despite operational disruptions caused by the pandemic, BSD
achieved IDR5.4 trillion of marketing sales in 2020, a slight
improvement from IDR5.3 trillion in 2019. BSD's flexibility to
alter its products to changing market demand have supported its
ability to achieve good marketing sales.
Moody's expects BSD's credit metrics to improve over the next 12-18
months as debt normalizes following the maturity of its $300
million bond in April 2021. Still, the company's credit metrics in
2022 will be weaker than those in 2019 because BSD will be drawing
down on its new IDR3.2 trillion loan facility to fund the
construction of a toll road. Leverage, as measured by
debt/homebuilding EBITDA, will be around 4.3x in 2021 and 3.3x in
2022, while EBIT interest coverage will be around 2.4x in 2021 and
3.0x in 2022. For the 12 months that ended March 31, 2021, BSD's
adjusted debt/homebuilding EBITDA was 5.6x and homebuilding
EBIT/interest was 2.2x.
BSD's liquidity will remain very good in 2021 and 2022, supported
by its large cash holdings. As of March 31, 2021, the company had
cash and cash equivalents of IDR12.5 trillion, versus total
reported debt of IDR17.6 trillion. While Moody's forecasts BSD will
generate around IDR500 billion of operating cash flow from April 1,
2021 to December 31, 2022, the company has sufficient cash to cover
maturing debt obligations of around IDR7.6 trillion, dividend
payment of around IDR200 billion and capital spending of around
IDR4.0 trillion.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the founding family's concentrated ownership
of BSD, through Sinarmas Land Limited, and its board composition
that only has two independent commissioners out of a five-member
board.
The governance concerns are partially balanced by the company's
track record of strong marketing sales execution, good liquidity
and modest dividend payouts. Also, Sinarmas Land Limited has
supported BSD through multiple equity injections; the latest was a
full subscription of BSD's non-preemptive rights for IDR1.2
trillion in 2020.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely over the next 12-18 months as BSD proceeds
with the debt-funded construction of a toll road. However, BSD's
rating could be upgraded if the company can execute its business
plans, improve its credit metrics and maintain good liquidity.
Credit metrics that would support an upgrade include adjusted
debt/homebuilding EBITDA below 2.5x and adjusted homebuilding
EBIT/interest expense above 5.0x. An upgrade will also require the
recurring cash flow to cover at least 1.0x of interest expense.
BSD's rating could be downgraded if the company fails to implement
its business plans; there is a deterioration in the property
market, leading to protracted weakness in the company's operations
and credit quality; or there is evidence of cash leakage from BSD
to fund affiliated companies, for example, through intercompany
loans, aggressive cash dividends or investments in affiliates.
Credit metrics indicating a downgrade include adjusted
debt/homebuilding EBITDA over 4.0x and adjusted homebuilding
EBIT/interest expense below 3.0x on a sustained basis.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Established in 1984, Bumi Serpong Damai TBK (P.T.) (BSD) is the
largest developer listed on the Indonesia Stock Exchange by market
capitalization. The company and its subsidiaries are engaged in the
development, management and operation of residential townships,
condominium towers, office buildings, retail malls and hotel
properties. The company is sponsored by Sinarmas Land Limited,
which held around a 60% interest in BSD as of March 31, 2021.
GAJAH TUNGGAL: Moody's Puts Caa1 CFR Under Review for Upgrade
-------------------------------------------------------------
Moody's Investors Service has placed the Caa1 corporate family
rating of Gajah Tunggal Tbk (P.T.) (GJTL) and the Caa1 rating on
its $250 million senior secured notes due in August 2022 on review
for upgrade, following GJTL's announcement of its refinancing
plans. Concurrently, Moody's has also assigned a Caa1 rating to the
proposed senior secured notes due in 2026. The proposed notes have
also been placed on review for upgrade.
The outlook has been changed to ratings under review from
negative.
RATINGS RATIONALE
On June 9, 2021, GJTL announced plans to issue new senior secured
notes and a tender offer to purchase its existing 2022 notes at
102.09375%. Proceeds from the proposed bond, together with IDR1.5
trillion ($105 million) from a senior secured bank loan, will be
used to fully refinance its existing $250 million notes maturing in
August 2022.
"The proposed refinancing will extend GJTL's debt maturity profile,
thereby alleviating liquidity concerns arising from its upcoming
bond maturity in August 2022," says Stephanie Cheong, a Moody's
Analyst.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The review for upgrade will focus on GJTL's ability to execute its
refinancing plan. In particular, Moody's will assess the company's
capital structure, credit profile and interest burden following the
completion of the refinancing exercise.
"Upon successful completion of its refinancing exercise, GJTL's CFR
and the proposed notes will likely be upgraded by one notch to B3
reflecting the company's improved credit metrics and reduced
refinancing risk," adds Cheong, who is also Moody's lead analyst
for GJTL.
The rating on the 2022 notes will be withdrawn upon redemption.
On the other hand, the ratings will likely face downward pressure
if the proposed transaction is delayed and the company fails to
refinance its existing notes by August 2021.
The review will conclude once the transaction completes and the
2022 notes are fully repaid.
GJTL's CFR reflects its leading position in the Indonesian domestic
tire market and its balanced sales mix.
GJTL reported strong credit metrics for the last twelve months
ended March 31, 2021, including debt/EBITDA of 3.1x and EBITDA
margins of over 17.5%, both of which exceeded Moody's
expectations.
Although its credit metrics will likely moderate in 2021-22 as raw
material prices increase, Moody's expects the company's leverage
will remain strong for its rating at around 3.8x over the next two
years.
At the same time, GJTL's ratings are constrained by the company's
exposure to cyclical raw material prices and foreign exchange
movements, which lead to volatile financial performance, increased
reliance on short-term funding and reduced covenant cushion during
periods of margin pressure.
The ratings also incorporate governance risks arising from the
company's concentrated ownership structure, weak financial
management and increasing related party transactions.
The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.
Headquartered in Jakarta, Indonesia, Gajah Tunggal Tbk (P.T.)
(GJTL) is Southeast Asia's largest integrated tire manufacturer,
with the installed capacity to produce 55,000 passenger car radial
(PCR) tires, 14,500 bias tires, 95,000 motorcycle tires, and 2,000
truck and bus radial (TBR) tires per day. The company also has the
capacity to produce 40,000 tons of tire cord and 75,000 tons of
synthetic rubber per year for both internal consumption and
third-party sales.
GJTL's key shareholders include Denham Pte Ltd (49.5%), a
subsidiary of Chinese tire manufacturer Giti Tire, and Compagnie
Financiere Michelin (10%). The remaining shares are publicly traded
on the Indonesian Stock Exchange.
REJEKI ISMAN: Creditors Submit About $1.4BB in Outstanding Claims
-----------------------------------------------------------------
Tassia Sipahutar at Bloomberg News reports that creditors of PT Sri
Rejeki Isman, Indonesia's biggest listed clothing firm, have
submitted about IDR20 trillion ($1.4 billion) of outstanding claims
as part of a debt-restructuring process.
The claims include about IDR700 billion submitted by secured
creditors and around IDR19 trillion from unsecured creditors as of
June 10, according to Alfin Sulaiman, a member of an administrator
team appointed by Indonesia's Semarang commercial court, Bloomberg
relays. Verification is ongoing and the final amount will be
released soon, Sulaiman said on June 11.
Bloomberg relates that the company, known as Sritex, was put under
a debt suspension process last month by a court following a
petition filed by business partner CV Prima Karya, who stated that
the clothing maker owed IDR5.5 billion. It had paused payments on a
dollar loan and was in the middle of preparing a restructuring
proposal for lenders when Prima Karya filed the petition.
Sritex has also fallen into distress in credit markets, where its
2025 and 2024 notes are the worst-performing Indonesian corporate
dollar securities this year, Bloomberg relays.
Indonesian clothing firms' exports declined 17% last year because
of the pandemic, and the global resurgence of the Covid-19 virus
threatens the industry's recovery, Bloomberg notes. PT Pan
Brothers, Sritex's rival and Indonesia's second-biggest listed
apparel company, is also facing a debt suspension petition
submitted by PT Bank Maybank Indonesia at the Central Jakarta
commercial court.
Joy Citradewi, head of corporate communications at Sritex, said on
June 11 that the company could not provide details on the
creditors' claims as it was still waiting for the administrators to
complete verification, according to Bloomberg.
Sritex has asked the Semarang court to extend the debt suspension
process by 120 days, from an initial period of 45 days that will
end on June 21, because it needs additional time to carry out a
comprehensive review of the group's business and operations, it
said a filing. It expects to present final composition plan to
creditors on Oct. 7 and to hold voting on Oct. 14, Bloomberg adds.
About Sritex
PT Sri Rejeki Isman Tbk is an Indonesia-based company primarily
engaged in integrated textile and garment industry. Its business
activities are spinning, weaving, greige dyeing, bleaching and
printing as well as garment manufacturing. Its products include
yarn, comprising rayon, cotton and polyester yarn; greige; finished
fabric, and garments. Its manufacturing plants are located in
Sukoharjo and Semarang, Indonesia.
As reported in the Troubled Company Reporter-Asia Pacific on May 6,
2021, Fitch Ratings has downgraded Sritex's Long-Term Issuer
Default Rating (IDR) to 'RD' (Restricted default) from 'C'. At the
same time, Fitch Ratings Indonesia has downgraded Sritex's National
Long-Term Rating to 'RD(idn)' from 'C(idn)'. Fitch has affirmed
Sritex's outstanding US dollar notes at 'C' with a Recovery Rating
of 'RR4'.
Sritex missed the interest payment of around USD850,000 on its
USD350 million syndicated loan, which was due 23 April 2021, and
the banks did not roll over the revolver that was due on the same
day. The downgrade follows the expiry of the five-business-day cure
period allowed for the interest payment.
'RD' National Ratings indicate an issuer that, in Fitch's opinion,
has experienced an uncured payment default on a bond, loan or other
material financial obligation but that has not entered into
bankruptcy filings, administration, receivership, liquidation or
other formal winding-up procedure, and has not otherwise ceased
business.
=========
J A P A N
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KAWASKI KISEN: Egan-Jones Hikes Senior Unsecured Ratings to B+
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 2, 2021, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Kawasaki Kisen Kaisha, Ltd. to B+ from CCC.
Headquartered in Chiyoda City, Tokyo, Japan, Kawasaki Kisen Kaisha,
Ltd. operates marine cargo and passenger transportation around the
world.
=================
S I N G A P O R E
=================
HYFLUX LTD: Utico Has 'No Impact' on Winding Up Bid, JM Says
------------------------------------------------------------
The Business Times reports that the judicial managers of Hyflux
have stated that the beleaguered water treatment company's
white-knight suitor Utico remains unable to meet the minimum
conditions required to consider an offer, just as it was before
their previous discussions were terminated.
BT relates that in a bourse filing on June 10, judicial managers
Borrelli Walsh (BW) said that while Utico had contacted BW after
the latter had filed the winding up application on June 4, it
maintained that "Utico's recent contact and the associated press
reports have no impact" on its application to wind up Hyflux.
The announcement comes days after The Business Times (BT) on June 7
reported that Utico's chief executive Richard Menezes was
attempting to offer the crisis-hit company a rescue deal.
Mr. Menezes told BT that he had written to BW to "save the company
and make it equitable", and that "liquidation should be the last
option".
According to the report, Mr. Menezes said the latest proposal will
see Hyflux's unsecured senior creditors receive five cents on the
dollar - while retail investors in Hyflux's preference shares and
perpetual securities will receive four cents.
BW had previously declined to comment at the time when reached by
BT.
A virtual town-hall meeting will be held for all Hyflux
shareholders on June 18, 2021 at 1:00 p.m., where BW will provide
updates regarding the judicial management and winding up
application, BT notes.
Those who are interested in joining must register by 7:00 p.m. on
June 15 at the registration site. Successful registrants will
receive an email by June 17 which will grant them access to the
meeting, BT says.
About Hyflux Ltd
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
On Nov. 17, 2020, the High Court of Singapore appointed Hamish
Alexander Christie and Patrick Bance of Borrelli Walsh Pte. Limited
as joint and several judicial managers of Hyflux Ltd.
Borrelli Walsh is the financial adviser of an unsecured working
group of banks comprising Mizuho, Bangkok Bank, BNP Paribas, CTBC
Bank, KfW, Korea Development Bank, and Standard Chartered Bank,
according to The Business Times. The group had applied to put the
ailing water treatment firm under judicial management, BT said.
NEW SILKROUTES: SGX Queries on Liquidation of Oil-Trading Unit
--------------------------------------------------------------
The Business Times reports that the Singapore Exchange (SGX) has
raised queries regarding New Silkroutes Group's wholly-owned
oil-trading subsidiary, International Energy Group (IEG), which the
group had not been successful in disposing.
The agreement for the disposal of IEG to TK Energy lapsed on June
30 last year, after the buyer failed to disburse loans to New
Silkroutes Capital and IEG.
In a regulatory filing on June 9, New Silkroutes said that in view
of the global pandemic and the challenging energy market, the
management and the board believe that the energy business is not
sustainable and that IEG will not be able to fulfil its debt
obligations - and this is after taking into account the cash flow
projections commencing in the second quarter of 2021, according to
BT.
"In view of that, the board took the difficult decision that a
creditors voluntary liquidation of IEG was appropriate and
appointed provisional liquidators," said New Silkroutes.
BT says New Silkroutes also disclosed to the local bourse that it
is a corporate guarantor to a loan extended from Ocap Management to
IEG.
IEG is also a corporate guarantor to the lease-financing
arrangement of the bare boat charter agreement entered into by its
subsidiary TXZ Tankers. If IEG defaults, New Silkroutes will become
a corporate guarantor to the lease financing arrangement and its
contingent liabilities, BT relays.
On the impact of the liquidation on the company, New Silkroutes
said: "The board of directors feels that while there will be a
liquidity crunch due to the creditors' voluntary liquidation of
IEG, the impact will be minimised by the continuous operations and
growth of the healthcare arm of the company together with corporate
finance activities."
BT relates that the group also said that after reviewing the
financial forecast and cash flow projections, the board is of the
view that the group can continue as a going concern. It added that
the group has sufficient working capital and financial resources to
meet its obligations as and when they fall due in the next 12
months.
Among reasons to support this view were the cost-cutting measures
it has implemented, as well as the positive outlook for its
healthcare operations.
In response to SGX regarding whether a trading suspension is
required, New Silkroutes said it is not necessary, given that the
group is still in operation, BT says. It added that its health and
healthcare subsidiaries contributed US$13.62 million (SGD18.06
million) in revenue in the first quarter of 2021 and is looking to
grow its healthcare business.
Based in Singapore, New Silkroutes Group Limited (SGX:BMT) --
http://www.newsilkroutes.org/-- is an investment holding company
focused on healthcare and energy. The Company owns and operates
primary care medical and dental facilities in Singapore and
Vietnam, as well as pharmacy management systems in Singapore and
China. New Silkroutes's energy division is involved in physical oil
trades in SEA and North Asia.
*********
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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