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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
Thursday, July 15, 2021, Vol. 24, No. 135
Headlines
A U S T R A L I A
ALLOTZ.COM LIMITED: Second Creditors' Meeting Set for July 22
DSJSE PTY: Second Creditors' Meeting Set for July 27
IMAN BUSINESS: Second Creditors' Meeting Set for July 22
INVEST ONE: Second Creditors' Meeting Set for July 22
C H I N A
AUTOYIELD PTY: Second Creditors' Meeting Set for July 22
PEKING UNIVERSITY: Liquidators Pursue Assets in Hong Kong
SICHUAN LANGUANG: Misses Payment on CNY900 Million Local Bond
SICHUAN LANGUANG: S&P Lowers ICR to 'D' on Missed Bond Repayment
SICHUAN LANGUANG: S&P Withdraws 'D' LongTerm Issuer Credit Rating
I N D I A
ASP SEALING: CRISIL Lowers Rating on INR10cr Cash Loan to D
BHAGIRATHA POLYMERS: CRISIL Moves B+ Rating from Not Cooperating
CHAMPARAN COLD: CRISIL Reaffirms B Rating on INR6.67cr Term Loan
DAYANANDA COLD: CRISIL Reaffirms B+ Rating on INR4cr Loan
DWARKA METROHILLS: CARE Keeps C Debt Rating in Not Cooperating
FORTPOINT AUTOMOTIVE: CRISIL Cuts Rating on INR16.28cr Loan to D
GLUHEND INDIA: CRISIL Lowers Rating on INR35cr Loan to D
ICE TOUCH: CARE Keeps D Debt Rating in Not Cooperating Category
INDIA: Sets Up Bad Loan Bank to Free Up Lenders for Credit Push
INTERNATIONAL LAND: CARE Cuts Rating on INR33.48cr Loan to C
JKG OVERSEAS: CRISIL Withdraws B+ Rating on INR14.80cr Loans
LAKSHMI KALAVATHI: CRISIL Moves B Debt Ratings in Not Cooperating
LORD SHIVA: CARE Keeps D Debt Ratings in Not Cooperating
M.L. TRADERS: CRISIL Withdraws B Rating on INR12cr Loans
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
PADMASHRI DR: CRISIL Cuts Rating on INR300cr Cash Loan to D
R.S. GREEN: CARE Keeps D Debt Rating in Not Cooperating Category
REVASHANKAR GEMS: CARE Lowers Rating on INR40cr LT Loan to B-
RISHI ICE: CARE Keeps B Debt Rating in Not Cooperating Category
SANJAY SINGHI: CRISIL Lowers Rating on INR8cr Loans to D
SAWA CLAY: CARE Keeps D Debt Rating in Not Cooperating Category
SHINE FLEXIBLE: CRISIL Lowers Rating on INR6.5cr Loan to D
SIRI FOUNDATIONS: CRISIL Assigns D Rating to INR9.2cr LT Loan
SPES HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
STANDARD STRIPS: CRISIL Withdraws B Rating on INR27cr Loans
SUNRISE INDUSTRIES: CARE Keeps C Debt Rating in Not Cooperating
SURENDRA MULTISPECIALITY: CRISIL Assigns D Rating to INR20cr Loan
TRIVENI WIRES: CARE Keeps D Debt Ratings in Not Cooperating
TV VISION: CARE Keeps D Debt Rating in Not Cooperating Category
UNACCO FINANCIAL: CRISIL Lowers Rating on INR85cr Loans to D
V AND S INTERNATIONAL: CARE Keeps D Ratings in Not Cooperating
VALLABH STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
VINCI GLOBAL: CARE Lowers Rating on INR10cr LT Loan to D
S I N G A P O R E
BEVERLY BUILDER: Creditors' Meetings Set for July 26
HUA XIA: Court Enters Wind-Up Order
ORCHARD IVT: Creditors' Proofs of Debt Due on Aug. 13
PACIFIC MANAGEMENT: Court to Hear Wind-Up Petition on July 30
S R I L A N K A
SRI LANKA: Economy in Crisis as Debt Mounts, Reserves Dwindle
- - - - -
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A U S T R A L I A
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ALLOTZ.COM LIMITED: Second Creditors' Meeting Set for July 22
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Allotz.Com
Limited and Allotz Auto Pilot Pty. Ltd. and has been set for July
22, 2021, at 10:30 a.m. and 2:30 p.m. via telephone conference.
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 July 22, 2021, at 2:30 p.m.
Petr Vrsecky and Jason Glenn Stone of PKF Melbourne were appointed
as administrators of Allotz.Com Limited on June 17, 2021.
DSJSE PTY: Second Creditors' Meeting Set for July 27
----------------------------------------------------
A second meeting of creditors in the proceedings of DSJSE Pty Ltd
has been set for July 27, 2021, at 11:00 a.m. via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 26, 2021, at 2:00 p.m.
Stephen Wesley Hathway of Helm Advisory was appointed as
administrator of DSJSE Pty on May 14, 2021.
IMAN BUSINESS: Second Creditors' Meeting Set for July 22
--------------------------------------------------------
A second meeting of creditors in the proceedings of Iman Business
Solutions Pty Ltd has been set for July 22, 2021, at 10:30 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 July 21, 2021, at 5:00 p.m.
Peter Goodin of Magnetic Insolvency was appointed as administrator
of Iman Business on June 15, 2021.
INVEST ONE: Second Creditors' Meeting Set for July 22
-----------------------------------------------------
A second meeting of creditors in the proceedings of Invest One Pty
Ltd has been set for July 22, 2021, at 11:00 a.m. via electronic
facilities.
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 July 21, 2021, at 4:00 p.m.
David Michael Stimpson of SV Partners was appointed as
administrator of Invest One on June 24, 2021.
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C H I N A
=========
AUTOYIELD PTY: Second Creditors' Meeting Set for July 22
--------------------------------------------------------
A second meeting of creditors in the proceedings of Autoyield Pty.
Ltd. has been set for July 22, 2021, at 3:30 p.m. via telephone
conference.
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 July 21, 2021, at 4:00 p.m.
Petr Vrsecky and Jason Glenn Stone of PKF Melbourne were appointed
as administrators of Autoyield Pty on June 17, 2021.
PEKING UNIVERSITY: Liquidators Pursue Assets in Hong Kong
---------------------------------------------------------
South China Morning Post reports that as China engineers a US$11.3
billion rescue plan for the bankrupt Peking University Founder
Group, offshore creditors are wasting no time in trying to recoup
their money by seizing its assets in Hong Kong and elsewhere.
The Post relates that Derek Lai Kar-yan, one of the court-appointed
liquidators for Founder Information (Hong Kong), said he is trying
to raise cash by selling assets in the city and mainland China to
repay creditors. They include holders of the defaulted US$300
million 4.575 per cent 2020 notes issued by a unit of the
university's business arm.
Founder Information, which guaranteed several tranches of dollar
and euro-denominated bonds, owns 60 per cent of Hong Kong-listed
Peking University Resources Holdings, a stake worth about HK$616
million (US$79.3 million). Other valuable assets include its
investment and development properties in mainland China.
"We will take action to sell the assets very soon," Lai, who is
also the vice-chairman of Deloitte China, said in an interview with
the Post. "Liquidating assets in Hong Kong could start within this
month. This is to protect the interest of creditors because there
is no certainty that their debt will be repaid."
According to the Post, the liquidators won a court order in late
May to sell the 60 per cent stake in Peking Founder Resources by
private tender. Last month, they requisitioned to remove three
directors at the company and appoint its four nominees to the
board.
Holders of offshore bonds filed to wind up Founder Information in
October last year after the group defaulted on its debt. A Hong
Kong High Court appointed Lai and two others from Deloitte as
liquidators in February, the Post recalls.
While small relative to the size of the credit distress, the
seizure in Hong Kong could throw a spanner in the works as the
assets are part of debt restructuring of Peking University Founder
Group, according to the report. The business arm of the prestigious
university reorganised under Chinese bankruptcy laws in what is
China's biggest default in about two decades.
A consortium led by Ping An Insurance (Group) and Huafa Group,
controlled by Zhuhai municipal government, have agreed to bail out
the indebted group in a CNY73.3 billion (US$11.3 billion) rescue
unveiled in April. Creditors voted in favor of the proposal, which
was then approved by Beijing No. 1 Intermediate People's Court this
week, the Post notes.
According to the report, the bailout followed a decision by the
state-appointed restructuring administrator to not recognise about
US$1.7 billion worth of keepwell deed claims in bonds issued by the
troubled group. That decision in August last year sent shock waves
in the bond market because the deeds underpin more than US$90
billion of foreign-currency bonds issued by Chinese companies
offshore.
Keepwell provisions are undertakings by Chinese companies to
guarantee the solvency of their subsidiaries when they sell debt in
offshore markets, giving foreign investors assurance as they have
no recourse to onshore assets, the Post notes. They typically
contain a clause stating that they do not constitute a guarantee.
Under the rescue plan, Ping An Insurance and Huafa Group will take
up a combined 73 per cent stake in a company called New Founder
Group. Ping An Insurance said its life-insurance arm will pay as
much as CNY50.8 billion as its contribution to the bailout.
The Post relates that the new entity will assume the restructured
assets of Peking University Founder Group in the health care,
information technology, real estate and finance businesses, among
others, including those in Hong Kong.
"We are in talks with Ping An about the arrangement for the
offshore creditors," Lai said, adding they have not yet reached any
agreement and declined to elaborate on details of the discussion.
It is still not known if the rescue consortium will ensure the
repayment to offshore creditors because they will acquire the
Peking University Founder Group's assets after the restructuring.
"Both Ping An and the Founder Group are state-backed giants," Lai
said. "We definitely hope that Ping An can deal with the debts
properly. Whether the agreements offshore bondholders signed are
protected under the law or not, they were agreed bilaterally.
Failing to honour them will affect the reputation of mainland
companies."
Mr. Lai is waiting for Founder Information's management team to
provide the liquidators with further relevant information,
including an update on the property projects in mainland China, the
Post relays.
"They are not very cooperative at this stage," said Lai. "Without
the documents, we can still proceed with the sale of assets. We
have received interest from various parties such as listed
companies and real estate equity funds."
About Peking University Founder
Chinese state-owned Peking University Founder Group Corp. provides
information technology services. The Company offers software
development, electronic publishing system development, smart city
solution development, data operation, and other services. Peking
University Founder Group also operates financing, medical
technology development, and other businesses.
On Feb. 19, 2020, Founder Holdings Limited received a notification
letter from Peking Founder, regarding a civil order and decision
letter received by Peking Founder from The First Intermediate
People's Court of Beijing. Pursuant to the civil order and decision
letter, the Court decided to accept the application made by Bank of
Beijing Co., Ltd. for the initiation of restructuring procedure
against Peking Founder, and appointed Peking Founder liquidation
team as the administrator of Peking Founder. The Peking Founder
liquidation team consists of, among others, the People's Bank of
China, the Ministry of Education of the People's Republic of China,
relevant financial regulators and relevant departments of Beijing
Municipal Government.
Bank of Beijing Co. Ltd., one of the creditors of Peking University
Founder Group Corp., asked a court to restructure the indebted
state-owned conglomerate in February 2020, according to Caixin
Global.
SICHUAN LANGUANG: Misses Payment on CNY900 Million Local Bond
-------------------------------------------------------------
Bloomberg News reports that Chinese builder Sichuan Languang
Development Co. failed to repay a local bond, marking its first
default in a domestic credit market grappling with rising debt
failures.
Bloomberg relates that the company was not able to raise enough
funds for the repayment on a CNY900 million ($139 million) local
bond that matured Sunday, which amounts to a default, according to
a July 12 statement from Languang to the Shanghai Clearing House.
The builder said last week it might not be able to make the
payment.
Languang is the latest Chinese developer to miss a payment this
year, with the sector driving a record surge of domestic corporate
bond defaults as Beijing has moved to curtail borrowing in the
debt-laden industry. The delinquency "will also trigger
cross-defaults" on local bonds and the firm's offshore debt, said
S&P Global Ratings. Languang has $1.05 billion of dollar bonds
outstanding, according to data compiled by Bloomberg.
"The Languang default shows the deleveraging campaign will continue
to fuel credit risk polarization in Chinese bonds," Bloomberg
quotes Natixis economist Gary Ng as saying. He said spreads could
eventually widen for offshore notes "as investors become more
selective in seeking safer investments or demanding high yields to
compensate the extra risks."
Chinese junk-rated dollar bonds, of which developers make up a
large portion, recently saw their worst selloff since the pandemic
roiled markets in March 2020, says Bloomberg. Fueling that has been
concern about heavyweight China Evergrande Group, whose leverage is
watched by the highest levels of China's government for potential
systemic risks to the economy.
Languang is one of China's bigger builders, ranked 38th by
contracted sales in 2020 according to China Real Estate Information
Corp. The developer said on July 12 it and its units had CNY4.5
billion of overdue debt. China Fortune Land Development Co., which
saw its first bond default earlier this year, in comparison
recently disclosed its delinquency total had reached CNY67 billion,
Bloomberg notes.
According to Bloomberg, S&P, which downgraded Languang to D from
CCC- on July 13, said the builder not paying the CNY900 million
bond is likely to result in a general default triggering cross
defaults and accelerated payment demands on other debt, including
dollar notes. The ratings firm also doesn't expect Languang to
repay CNY3.3 billion of domestic bonds coming due the next three
months. Questions about Languang's repayment ability prompted
several Chinese debt assessors to drop the firm deeper into junk
territory last week.
Bloomberg relates that One Languang unit disclosed on July 12 it
hired a financial adviser to explore potential options for what it
called a "consensual resolution" with holders of its three dollar
bonds, which mature in 2022 and 2023. They're all currently priced
below 30 cents on the dollar, Bloomberg-compiled data show.
"The company's refinancing in the public market has run into
trouble since the end of 2020," Languang said July 12, Bloomberg
relays. That, plus strained operating cash flow and debt
accelerations imposed by some financial institutions, led to the
missed bond payment, it added. The firm is making a "medium- to
long-term, comprehensive" plan to resolve its problems with "strong
support" from local authorities and "active coordination" of
financial regulatory institutions.
Holders of two onshore bonds will meet on July 27, according to
filings on July 13 with the Shanghai Clearing House.
Languang's shares listed in Shanghai have tumbled 41% this year,
one of the biggest decliners in the Shanghai Composite Index. China
Fortune Land is the worst at 58%, Bloomberg notes.
About Sichuan Languang
Sichuan Languang Development Co., Ltd. primarily develops
residential and commercial properties in China. The company was
founded in 1993 and listed on the Shanghai Stock Exchange in 2015
through a backdoor listing. As of December 2020, it had a total
land bank of 26.4 million square meters in terms of gross floor
area.
As reported in the Troubled Company Reporter-Asia Pacific on June
24, 2021, Moody's Investors Service has downgraded the corporate
family rating of Sichuan Languang Development Co., Ltd. (Languang
Development) to Caa3 from B3.
At the same time, Moody's has downgraded to Ca from Caa1 the backed
senior unsecured rating on the notes issued by Hejun Shunze
Investment Co., Limited, and unconditionally and irrevocably
guaranteed by Languang Development.
SICHUAN LANGUANG: S&P Lowers ICR to 'D' on Missed Bond Repayment
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Sichuan Languang to 'D' from 'CCC-'. At the same time, S&P lowered
its long-term issue rating on the China-based property developer's
senior unsecured notes to 'D' from 'CC'.
S&P said, "We lowered the ratings on Sichuan Languang following the
company's failure to repay the interest and principal of about
RMB968 million on the medium-term note due on July 11, 2021. We do
not expect the company to be able to repay the note within the
stated grace period of 10 days, given its exceptionally weak
liquidity."
Sichuan Languang's strained liquidity is highlighted by the
company's reported overdue bank and trust loans of about RMB3.6
billion. Project stakes have also been frozen by Chinese courts in
recent months owing to applications filed by trust companies. At
the same time, project disposals have been slower than S&P
expected, failing to bring in sufficient liquidity sources. As of
June 30, 2021, the company reported only RMB207 million of
accessible cash.
S&P said, "We therefore anticipate a general default by Sichuan
Languang. We do not expect the company to repay the RMB3.3 billion
in domestic bonds due over the next three months. The failure to
repay the medium-term note will also trigger cross-defaults on most
of these bonds as well as notes offshore."
SICHUAN LANGUANG: S&P Withdraws 'D' LongTerm Issuer Credit Rating
-----------------------------------------------------------------
S&P Global Ratings withdrew its 'D' long-term issuer credit rating
on Sichuan Languang Development Co. Ltd. at the company's request.
S&P also withdrew the 'D' long-term issue rating on the senior
unsecured notes guaranteed by the China-based property developer.
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I N D I A
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ASP SEALING: CRISIL Lowers Rating on INR10cr Cash Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
ASP Sealing Products Limited (ASPL) to 'CRISIL D/CRISIL D Issuer
Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' based on publicly available information. The downgrade
reflects delay in servicing of interest/installments in CC and
guaranteed emergency credit line.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Letter of Credit 12 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Long Term 11.83 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Term Loan 2.98 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ASPL for obtaining
information through letters and emails dated March 17, 2020 and
September 16, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ASPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on ASPL is consistent
with 'Assessing Information Adequacy Risk'.
ASPL was incorporated in 1989 as Anand Saiag Pvt Ltd in
technological collaboration with SAAIG Industrial SPA, Italy. In
1995, Mr Gurdeep Singh Anand and his son Mr Rishipal Singh Anand,
acquired the equity shares held by SAIIG, and the company got its
current name. ASPL manufactures ethylene propylene diene monomer
(EPDM) weather strips for automotive applications, primarily for
commercial vehicles. It also manufactures industrial rubber and
hoses. Its facilities are at Gajraula in Uttar Pradesh, and at
Udham Singh Nagar in Uttarakhand.
BHAGIRATHA POLYMERS: CRISIL Moves B+ Rating from Not Cooperating
----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
rating on the long-term bank facilities of Bhagiratha Polymers
Private Limited (BPPL) to 'CRISIL B+/Stable Issuer Not
Cooperating'. However, the company's management has started sharing
the information necessary for a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating the rating to 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING')
Long Term Loan 3.5 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING')
Proposed Long Term 3.5 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL B+/Stable ISSUER
NOT COOPERATING')
The rating reflects the company's modest scale of operations and
weak financial risk profile. These weaknesses are partially offset
by the extensive experience of the promoters in industry and
healthy orders.
Analytical Approach:
Unsecured loan of INR2.38 crore as on March 31, 2021, from the
promoters and their family members has been treated as debt as the
loan may not be retained in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Revenue was modest at INR9.98 crore
in fiscal 2021 because of the nascent stage of operations. Delay in
stabilisation of operations could weaken the company's credit risk
profile. Working capital management will be a key monitorable.
* Weak financial risk profile: Gearing was high at 5.39 times as on
March 31, 2021, constrained by small networth. Debt protection
metrics were modest, indicated by interest coverage and net cash
accrual to adjusted debt ratios of 1.89 times and 0.05 time,
respectively, in fiscal 2021.
Strengths:
* Extensive experience of the promoters and healthy orders: The
promoters' experience of two decades, strong understanding of local
market dynamics and healthy relationships with customers and
suppliers will continue to support the business. Unexecuted orders
worth INR29.2 crore provide medium-term revenue visibility.
Liquidity: Stretched
Bank limit utilization was 91% on average over the 12 months
through May 2021. Expected cash accrual of INR1-1.2 crore per
fiscal will just about cover yearly term debt obligation of INR65
lakh over the medium term. The promoters will likely continue to
extend support through unsecured loans to fund the working capital
requirement and debt obligation. Current ratio was healthy at 2.02
times as on March 31, 2021.
Outlook: Stable
CRISIL Ratings believes BPPL will continue to benefit from the
extensive experience of the promoters.
Rating Sensitivity factors
Upward factors
* Growth in revenue by 40% and stable operating margin, leading to
higher cash accrual
* Improvement in the capital structure
Downward factors
* Decline in revenue by 20% and fall in operating margin to less
than 8%, leading to net cash accrual below INR75 lakh
* Weakening of the financial risk profile because of increase in
working capital requirement
Incorporated in 2017, BPPL manufactures and trades in high-density
polyethylene (HDPE) pipes. Its unit in Ongole, Andhra Pradesh, has
capacity of 500 kg per hour. Mr Ramanjaneyulu Bommineni, Mr Ankamma
Chowdary Bommineni and Mr Ashok Chakravarthi Bommineni are the
promoters.
CHAMPARAN COLD: CRISIL Reaffirms B Rating on INR6.67cr Term Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Champaran Cold Storage Pvt Ltd
(CCSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 1.11 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.22 CRISIL B/Stable (Reaffirmed)
Term Loan 6.67 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect exposure to risks arising from
intense competition and stringent regulations and the company's
weak capital structure. These weaknesses are partially offset by
the extensive experience of the promoters in the cold storage
industry and company's comfortable debt protection metrics.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to risks arising from intense competition and stringent
regulations: The Company's cold storage unit is in Bihar, where the
industry is highly regulated. High fragmentation limits the
bargaining power and forces players such as CCSPL to offer
discounts to ensure healthy capacity utilisation.
* Weak capital structure: Networth and gearing are estimated at
around INR4 crore and 2.3 times, respectively, as on March 31,
2021. The networth is expected to remain at similar level in fiscal
2022, with muted accretion to reserve. Gearing, however, is
expected to improve with gradual repayment of loans.
Strengths:
* Extensive experience of the promoters: The four-decade-long
experience of the promoters and their healthy relationships with
farmers and traders should continue to support the business.
* Comfortable debt protection metrics: Debt protection metrics
continues to be above average, with interest coverage and net cash
accrual to total debt ratios estimated at around 7.2 times and 0.15
time, respectively, in fiscal 2021. The debt protection metrics is
expected to remain comfortable over the medium term.
Liquidity: Stretched
Cash accrual, expected to be more than INR1.4 crore per fiscal,
should remain tightly matched with yearly debt repayment obligation
of around INR1.3 crore over the medium term. Bank limit utilisation
averaged 78% over the 12 months through December 2020. Current
ratio is estimated at around 1.3 times as on March 31, 2021.
Outlook Stable
CRISIL Ratings believes CCSPL will continue to benefit from the
promoters' extensive experience.
Rating Sensitivity factors
Upward factors
* Net cash accruals increasing to more than INR2 crore over the
medium term
* Improvement in networth and gearing
* Prudent working capital management
Downward factors
* Decline in rental rates and capacity utilisation
* Weakening of the interest coverage ratio to less than 1 time
* Delay in payments by farmers
Incorporated in 1974, CCSPL provides cold storage facilities to
potato and fruit farmers and traders in Bihar. The company has
installed capacity of 1 lakh quintal per annum. Mr Rajendra Gupta
manages the operations.
DAYANANDA COLD: CRISIL Reaffirms B+ Rating on INR4cr Loan
---------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Dayananda Cold Storage Pvt Ltd
(DCSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.65 CRISIL B+/Stable (Reaffirmed)
Term Loan 3.05 CRISIL B+/Stable (Reaffirmed)
Working Capital
Facility 0.3 CRISIL B+/Stable (Reaffirmed)
The rating reflects DCSPL's weak capital structure and exposure to
intense competition and to regulatory risks in the West Bengal cold
storage industry. These weaknesses are partially offset by the
extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Weak capital structure: Financial risk profile is likely to
remain weak over the medium term, driven by limited accretion to
reserve and no plans of equity infusion. Networth is estimated to
remain low at around INR2.3 crore as of March 31, 2021, with
gearing high at around 3.5 times. Gearing may moderate going
forward, with gradual repayment of debt.
* Exposure to intense competition and to regulatory changes: The
potato cold storage industry in West Bengal is regulated by the
West Bengal Cold Storage Association. Rental rates are fixed by the
state department of agricultural marketing, which limits players'
ability to earn profit based on individual strengths and
geographical advantages. Furthermore, the industry is highly
fragmented, with the largest player having a market share of less
than 0.5%. This further limits bargaining power and forces players
to offer discounts to ensure healthy capacity utilization.
Strength:
* Extensive experience of the promoters: Benefits from the
promoters' experience of over 25 years, their strong understanding
of local market dynamics, and healthy relationships with potato
farmers and other traders should continue to support the business.
Liquidity: Stretched
Liquidity will, likely, continue to remain stretched. Cash accrual
expected at around INR60-70 lakh per fiscal should remain tightly
matched with debt repayment obligation of around INR47 lakh per
annum over the medium term. Bank limit utilization averaged 71%
over the 12 months through March 2021. Current ratio is estimated
at around 1.34 times as of March 31, 2021.
Outlook: Stable
CRISIL Ratings believes DCSPL will continue to benefit from the
extensive experience of the promoters.
Rating sensitivity factors:
Upward factors:
* Higher than expected topline or profitability leading to net cash
accruals higher than INR1 crore
* Infusion of equity or unsecured loan thereby improving the
capital structure.
Downward factors:
* Lower than expected topline and profitability leading to net cash
accruals below INR0.5 crore.
* Debt-funded capex plan affecting the financial and liquidity
profile.
DCSPL, incorporated in 2016, provides cold storage services to
potato farmers and traders. The unit in Paschim Medinipur (West
Bengal) has potato storage capacity of 140,000 quintals. Mr Uday
Chandra Ghosh, Mr Tarun Kumar Ghosh, and Ms Shraboni Ghosh are the
promoters.
DWARKA METROHILLS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dwarka
Metrohills Hospital Private Limited (DMH) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.35 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 28, 2020, placed the
ratings of DMH under the 'issuer non-cooperating' category as DMH
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. DMH continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated June 15,
2021, May 3, 2021 and April 23, 2021, etc.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on May 28, 2020, the following were the
rating strengths and weaknesses:
(Updated for the information available from the Registrar of
Companies).
Key Rating Weaknesses
* Timely completion and implementation risk associated with the
project: The company had undertaken a project to setup a hospital.
The total cost of the green-field project (Phase-1 and Phase-2) was
estimated at INR6.25 crore, being funded by term loan of INR3.85
crore, unsecured loans from promoters' and other related parties of
INR0.25 crore and remaining from the promoters' contribution in the
form of capital. As on January 31, 2018 DMH had incurred an
expenditure of INR4.12 crore towards the project; funded through
the promoters' contribution of INR1.46 crore in the form of
capital, unsecured loans from promoters' of INR0.25 crore and bank
term loan of INR2.41 crore. 96% of the construction work was
complete and the commercial operations of Phase-1 was supposed to
begin from April 2018 while Phase 2 was expected to be completed by
March 2019. Thus, implementation risk along with risk of timely
completion is associated with the project.
* Geographical concentration risk: DMH has presence in Chandauli,
Uttar Pradesh only, thus exposing it to geographical concentration
in its revenue profile, unlike other large chains in this industry
which have presence in major cities. However, the hospital is
centrally located, making it strategically located for carrying out
healthcare business. Furthermore, fortunes of the company are
restricted to a single property site. The single-site operations
will expose the company's revenue and profitability margins to
happening of unfavorable event in relation to hospital property or
city.
* Reputation risk: Healthcare is a highly sensitive sector where
any mishandling of a case or negligence on part of any doctor
and/or staff of the unit can lead to distrust among the masses.
Thus, all the healthcare providers need to monitor each case
diligently and maintain standard of services in order to avoid the
occurrence of any unforeseen incident. They also need to maintain
high vigilance to avoid any malpractice at any pocket.
* Highly fragmented and competitive nature of the industry: The
company operates in a highly competitive industry. There are
various organized and unorganized players in the market. It faces
stiff competition from other hospitals and private clinics in the
area. The nature of healthcare industry is highly fragmented. Thus,
differentiating factors like range of services offered, quality of
service, pedigree of doctors, success rate in the treatment of
complex cases, word of mouth, etc. would be crucial in order to
attract patients and increase occupancy levels. Moreover, the
hospital has to remain very careful with its operations and has to
follow various regulations imposed by the government.
Key Rating Strengths
* Experienced and qualified promoters: DMH is being managed by Mr.
Vishal Kumar Singh, Mr. Vinit Kumar Singh, Mrs. Rita Singh and Mrs.
Monika Singh. Mr. Vishal Kumar Singh has an industry experience of
8 years in the neurosurgical field and is also a director in G.V.
Meditech Private Limited (Surya Hospital, Varanasi). Mr. Vinit
Kumar Singh has an industry experience of 4 years gained through
his association with Anandmai Hospital in Varanasi, he is currently
pursuing Master of Surgery (MCH) course in Urology. Mrs. Rita Singh
has 10 years of experience in project management and has worked in
various projects for a number of years in and outside Uttar
Pradesh. The management has adequate acumen about various aspects
of business which is likely to benefit the company in the long
run.
Varanasi based, Dwarka Metro Hills Hospital Private Limited (DMH)
was incorporated in December 2011 as a private limited company by
the name of Metro Heart Hospital Private Limited, however, the name
was changed to its current name, Metro Hills Hospital Private
Limited in October 2012 which was further changed to Dwarka Metro
Hills Hospital Private Limited in FY19. DMH is currently being
promoted by Mr. Vinit Kumar Singh, Mrs. Rita Singh and Mrs. Monika
Singh. The company will operate a multispecialty hospital having
various departments for general medicine, general surgery, urology,
neurology, radiology, gynecology, nephrology, ophthalmology,
orthopedics, physiotherapy, etc. along with 24 hours pharmacy and
lab services and is located in Chandauli (Uttar Pradesh) with
proposed capacity of 160 beds.
FORTPOINT AUTOMOTIVE: CRISIL Cuts Rating on INR16.28cr Loan to D
----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Fortpoint Automotive Mumbai Private Limited (FAMPL) to 'CRISIL D
Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not
Cooperating' based on publicly available information. The downgrade
reflects overdrawals in cash credit account for over 30 days.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Inventory Funding 15 CRISIL D (ISSUER NOT
Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 16.28 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with FAMPL for
obtaining information through letters and emails dated March 1,
2020 and September 16, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FAMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FAMPL
is consistent with 'Assessing Information Adequacy Risk'.
FAMPL, incorporated in 2006 by Mr. Sandeep Bafna, is an authorized
dealer of Eicher in Mumbai. FAMPL operates through its showroom and
workshop in Mumbai.
GLUHEND INDIA: CRISIL Lowers Rating on INR35cr Loan to D
--------------------------------------------------------
CRISIL Ratings has downgraded its rating on the short-term bank
facility of Gluhend India Private Limited (GIPL; part of the Sage
group) to 'CRISIL D' from 'CRISIL A4'. The downgrade reflects delay
in meeting debt obligation due on June 30, 2021.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Post Shipment 35 CRISIL D (Downgraded from
Credit 'CRISIL A4')
The rating reflects the group's average financial risk profile,
susceptibility to volatility in raw material prices and foreign
exchange (forex) rates, and large working capital requirement.
These weaknesses are partially offset by established relationships
with key customers and diversified product profile and clientele.
Analytical Approach
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of GIPL and its wholly-owned
subsidiary, Sage International Inc (SII). These entities, together
referred to as the Sage group, have common management, and SII
functions as an extended marketing arm of GIPL in the US.
CRISIL Ratings has considered the entire preference share capital
as 100% equity as these shares are exclusively issued to group
companies by Delos Capital. These are compulsorily convertible with
0.0001% coupon rate.
Key Rating Drivers & Detailed Description
Weaknesses
* Average financial risk profile: The total outside liabilities to
tangible networth ratio was high at negative 3.35 times as on March
31, 2020. Debt protection metrics were weak owing to high gearing
and low cash accrual from operations. The interest coverage and net
cash accrual to total debt ratios were 0.91 time and negative 0.01
time, respectively, for fiscal 2020. The metrics will remain stable
over the medium term on account of sizeable debentures.
* Susceptibility to volatility in raw material prices and forex
rates: Operating margin was 11-20% in the four fiscals through
2020. The margin is vulnerable to volatility in raw material prices
and London Metal Exchange metal/alloy prices, where realizations
are based on the previous month's price. On account of various
initiatives by the management, the margin is expected to be stable,
but will remain vulnerable to any increase in raw material prices
and forex movements, over the medium term.
* Large working capital requirement: Gross current assets were
high at 200 days as on March 31, 2020 (230 days a year earlier),
driven by inventory and receivables of 106 and 66 days,
respectively (153 and 68 days), owing to the large product
portfolio. The working capital cycle was aided by credit of 120-140
days from suppliers. With greater focus on export and commensurate
increase in revenue, working capital requirement may further
increase over the medium term.
Strengths
* Established relationships with key customers: The group is one of
the leading players in the castings business, as reflected in the
healthy operating income of INR592 crore in fiscal 2020. Presence
of more than three decades in the industry has helped the group to
build healthy relationships with customers. Key customers include
Halex, Thomas and Betts Ltd, Orbit Industries Inc and Zurn
Industries Inc.
* Diversified product profile and clientele: The group manufactures
industrial castings, sanitary drainage fittings and electric
fittings for different industries in the domestic as well as
overseas markets. Diversity in clientele and products helps
maintain growth in revenue and profit even during fall in demand
from a particular segment. The established relationships with
customers and diversified product portfolio will provide stability
to revenue over the medium term.
Liquidity: Poor
Liquidity is poor with insufficient cash accrual and liquid funds
to meet due debt obligations on June 30, 2021.
Rating Sensitivity factors
Upward Factors
* Track record of timely debt servicing for at least 90 days
* Significant improvement in financial and liquidity risk profiles
GIPL, incorporated on December 22, 2017, is a wholly-owned
subsidiary of Delos Capital. The company manufactures, imports,
exports, provides consultancy services and deals in electrical
wiring accessories and fittings. The debt securities are listed on
the Bombay Stock Exchange.
SII, incorporated in July 1999 in the US, is a wholly-owned
subsidiary of GIPL and acts as its marketing arm in the US.
ICE TOUCH: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ice Touch
Resort Private Limited (ITRPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 2, 2020, placed the
ratings of ITRPL under the 'issuer non-cooperating' category as
ITRPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. ITRPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated June 18,
2021, May 8, 2021 and April 28, 2021, etc. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on June 2, 2020, the following were the
rating strengths and weaknesses: (Updated for the information
available from the Registrar of Companies).
Key Rating Weaknesses
* Residual project execution and stabilization risk: ITRPL had
undertaken a project to build a new hotel in Kufri. The total cost
of the green-field project was estimated at INR18.98 crore,
financed through term loan of INR6.00 crore and remaining through
promoter's contribution of INR12.98 crore in the form of equity and
unsecured loans. As on September 30, 2017, ITRL had incurred
INR9.92 crore towards the project which was supposed to be funded
through term of INR2.00 crore and balance through promoter's
contribution. The soft launch was expected in April 2019 with
full-fledged commercial operation expected to be commenced from
October 2019. Execution of project within envisaged time and cost
remains a risk for the company. Further, streamlining of revenue
also remains a concern with respect to the credit risk profile. In
the absence of latest details, CARE is unable to comment on the
same.
* Seasonality associated with hotel industry: The demand for hotel
room changes direction in direct relation to the economy, as both
business and pleasure travel are easy expenditures to eliminate in
declining economy. Although in any local market, the hotel business
is likely to have its own dynamics. The hotel business in India is
seasonal in nature, with September-March being the peak period.
This is primarily due to the increased leisure tourism during this
season. April–August is a lean period for the hotel business due
to the summer heat and monsoons. For ITRPL's the peak period is
October to March, shoulder season is September to April and average
season is May to August.
* Competitive nature of industry: The Indian hotel industry is
highly fragmented in nature with the presence of a large number of
organized and unorganized players spread across various regions.
Presently, there are number of hotels operational in Kufri and
nearby region, out of which more than three-fourth are unorganized
players and rest is organized. Due to the competitive nature of
hotel industry and presence of numerous players will limit the
pricing flexibility of the company. However, with limited
competition in Kufri in 4-Star category, the company is expected to
achieve sound operating metrics.
Key Rating Strengths
* Change in ownership and management of the company: ITRPL was
promoted by Mr. Narender Uppal & Ms. Savita Uppal and Ms. Kareena
Sharma., The company ownership was taken over by Mr. Ramesh Chandra
Khanna, Mr. Vinod Nagrath and Mr. Rakesh Kumar Sehgal during FY17.
Mr. Ramesh Chandra Khanna, Mr. Vinod Nagrath and Mr. Rakesh Kumar
Sehgal are graduates by qualification and has an overall experience
of around two decades in hospitality industry, manufacturing, real
estate businesses through their association with other associate
concerns.
* O&M Tie-ups with the reputed Carlson Hotels (South Asia) Private
Limited: ITRPL has tied-up with Carlson Hotels (South Asia) Private
Limited for branding, operating and marketing of the hotel under
their 'Radisson Blu' brand for an initial period of 10 years. ITRPL
would pay operating and marketing fees along with incentive to
Carlson (2% of hotel revenue for 10 years). Club Carlson (Carlson
group), a global leading hospitality group with around 1,000
properties worldwide, is one of the world's most recognized hotel
brands with a global reputation for service, comfort and value.
*Location advantage along with good quality amenities of the hotel:
The project is located at Kufri, 13 Kms away from Shimla which is
one of the popular tourist attractions in India. The hotel location
provides enhanced connectivity and accessibility from all prominent
catchment areas. In the months of January to March, winter sports
carnival is held at Kufri which attracts many tourists from
different parts of the country.
New Delhi-based, Ice Touch Resorts Private Limited (ITRL) was
incorporated in 2005. The company is currently promoted by Mr.
Ramesh Chander Khanna, Mr. Rakesh Sehgal, Mr. Vinod Nagrath, Mr.
Ghanshyam Kapoor and Mr. Rajinder Kumar Malhotra. ITRL is setting
up a four-star hotel “Radisson Blu” in Kufri near Shimla. The
proposed hotel is being developed on a land parcel of 7,700 sq
mtrs. The hotel would consist of 2 main blocks & conference block
wherein, the main blocks will consist of 76 deluxe rooms, reception
area, lobby, restaurant etc.
INDIA: Sets Up Bad Loan Bank to Free Up Lenders for Credit Push
---------------------------------------------------------------
Suvashree Ghosh at Bloomberg News reports that India has formally
set up a bad loan bank as part of the nation's ongoing efforts to
remove one of the world's largest piles of soured debt from the
balance sheet of financiers and accelerate lending.
The firm was registered as the National Asset Reconstruction
Company Ltd. on July 7 with Padmakumar Madhavan Nair as the
managing director, Bloomberg discloses citing filings with the
Registrar of Companies, where firms must register before becoming
operational.
NARCL's paid-up capital is INR746 million ($10 million), according
to the filing. Nair previously worked at the State Bank of India
where he handled stressed assets resolution.
Sunil Mehta, chief executive officer of the Indian Banks'
Association, will be a director, while SBI's Salee Sukumaran Nair
and Canara Bank's Ajit Krishnan Nair are nominee directors on the
board, according to the filing cited by Bloomberg.
Bloomberg relates that the bad loan bank will provide a much-needed
relief to Indian lenders struggling to bring down their massive
problem debt pile that has eroded profit and constrained their
ability to lend. It's intended as a fillip to Prime Minister
Narendra Modi's attempts to boost credit flow to pump up the South
Asian economy that has shrunk the most in nearly seven decades as a
fallout of the pandemic.
The government's decision to start the bad loan bank comes after an
overhauled bankruptcy process rolled out in 2016 saw only muted
success, says Bloomberg.
According to Bloomberg, the bad loan bank will be owned by
government-run and private sector lenders and will allow financiers
to transfer as much as INR2 trillion of soured loans and
effectively free them from years of carrying and providing for
these loss-making assets. The announcement of such an entity was
first made by India's Finance Minister Nirmala Sitharaman in her
budget speech in February.
Investors will be watching whether the bad loan bank manages to
actually resolve the assets rather than keeping them like a
warehouse, and whether its team includes appropriate industry and
turnaround experts, Bloomberg adds.
INTERNATIONAL LAND: CARE Cuts Rating on INR33.48cr Loan to C
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
International Land Developers Private Limited (ILDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 33.48 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 11, 2019; placed the
rating of ILDPL under the 'issuer non-cooperating' category as
ILDPL had failed to provide information for monitoring of the
rating. ILDPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated April
10, 2021; April 20, 2021 and April 30, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which, however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
information due to non-cooperation by ILDPL. CARE views information
availability risk as a key factor in its assessment of credit
risk.
Detailed description of the key rating drivers
At the time of last rating on May 25, 2020 the following were the
rating strengths and weaknesses:
Key Rating Weakness
Key Rating Weaknesses
* High project execution risk with ongoing projects at nascent
stages of development: ILDPL is currently developing two group
housing projects namely, 'ARETE' located at Sector 33, Gurgaon and
'GSR Drive' located at Sector 36, Gurgaon. For ARETE project, the
company has incurred only 43% of the total cost of the project as
on December 31, 2017 (34% as on March 27, 2017); majorly comprising
of land cost, statutory fees for approvals and excavation. In 'GSR
Drive', the company has incurred INR60 cr out of total estimated
project cost of INR739 cr as on December 31, 2017 i.e. about 8% of
total cost. The slowdown in construction can be attributed to lower
sales & collections owing to lower demand as a result of overall
slowdown in the real estate sector. Overall, the company remains
exposed to execution risk and the completion of projects within
envisaged cost and timelines remain a key rating sensitivity.
Moreover, with most part of balance cost to be incurred is planned
to be funded through customer advances, the funding risk for the
projects also continues to remain at high level.
* Significant project off-take risk: The projects of ILDPL are at
nascent stage of operation and carry off-take risk. ARETE project
was launched in January 2014 and as on Dec 31, 2017 the company has
sold 4.06 lsf of area as compared to 3.98 lsf as on Jan 31, 2017,
out of a total saleable area of 8.65 lsf. The company has sold only
0.06 lsf area during last 11 months ending Dec 31, 2017 on account
of low demand due to slowdown in industry. GSR Drive has been
recently launched with about 0.73 lsf area sold till Dec-17 out of
a total saleable area of 15.55 lsf. With slow sales progress, the
offtake risk of the projects remains high. Also, with the current
demand slowdown in the real estate market especially in the Delhi
and NCR region, the ability of the company to sell the inventory as
envisaged remains crucial for timely completion of this project.
* Inherent risk associated with the real estate industry - Industry
Risk: The real estate sector is moving towards a more rational
regime where developers now focus on project execution and
delivery. 2018 is expected to gradually move towards better home
sales and see a spurt in launches in some locations. The year will
also see the sector moving from an investor-driven to an end-user
driven cycle. As per market sentiments the India Real Estate Market
may not witness a sharp reversal in 2018 but its long term the
growth prospects remain strong. As the sector continues to remain
troubled with issues of high unsold inventory, delayed delivery of
projects and financial stress on developers, the broader market
opinion is that while the long term story for residential market
remains strong; the short term is expected to be sluggish.
Key Rating Strength
* Experienced promoters and proven track record of project
execution: ILDPL was promoted by Mr. Alimuddin Rafi Ahmed with
experience of more than 12 years in the real estate industry. The
company belongs to ILD group involved in real estate business.
Other companies of the group are ALM Infotech City Private Limited
and ILD Millenium Private Limited. In the past the group have
completed and delivered two real estate projects including an
Industrial Township in Manesar and a commercial project in Gurgaon
with the total saleable area of 83lsf. The group is currently
executing four residential group housing project in its group
companies: ILD Grand, Gurgaon (ALM Infotech City Pvt. Ltd.), ILD
Spire Greens, Gurgaon (ILD Millennium Pvt. Ltd.), Arete, Gurgaon
and GSR Drive at Sector 36, Gurgaon (ILD).
Incorporated in July 2006, International Land Developers Pvt. Ltd.
(ILDPL) is a Gurgaon-based real estate developer promoted by Mr.
Alimuddin Rafi Ahmed. The company is a part of ILD group. Other
companies of the group are ALM Infotech City Private Limited
(Withdrawn in Mar-16 at CARE BB) and ILD Millenium Private Limited
(Withdrawn in Mar-16 at CARE BB) are also engaged in real estate
development. In the past, the group has delivered two real estate
projects including an industrial township in Manesar (58 lsf) and
ILD Trade Centre, Gurgaon (25 lsf). ILDPL is currently developing
two group housing project located at Sector 33, Gurgaon and Sector
36, Gurgaon.
JKG OVERSEAS: CRISIL Withdraws B+ Rating on INR14.80cr Loans
------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
JKG Overseas Private Limited (JKG) on the request of the company
and after receiving no objection certificate from the bank. The
rating action is in-line with CRISIL Rating's policy on withdrawal
of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Proposed Long Term 12.05 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with JKG for
obtaining information through letters and emails dated December 18,
2020 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JKG. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on JKG is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
JKG to 'CRISIL B+/Stable Issuer not cooperating'.
Incorporated in 2014, JKG is engaged in processing and selling of
basmati rice. It is promoted by Nipun Garg, Mayank Garg, Shubham
Garg, and Sobir Garg. Its facility is at Taraori, Karnal (Haryana).
LAKSHMI KALAVATHI: CRISIL Moves B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Sri
Lakshmi Kalavathi Cotton Company (SLKCC) to 'CRISIL B/Stable Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit & 9 CRISIL B/Stable (ISSUER NOT
Working Capital COOPERATING; Rating Migrated)
Demand Loan
Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SLKCC for
obtaining information through letters and emails dated May 31,
2021, June 11, 2021 and June 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 SLKCC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SLKCC
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 SLKCC to 'CRISIL B/Stable Issuer not
cooperating'.
SLKCC was set up in 2016 as a partnership between Mr Balarama
Krishnaiah and Mrs Seetaravamma. This Guntur (Andhra Pradesh)-based
firm presses raw cotton and trades in cotton lint and seeds.
LORD SHIVA: CARE Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Lord Shiva
Construction Co Private Limited (LSC) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 7.50 CARE D; ISSUER NOT COOPERATING
Short Term Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
Category
Short Term Bank 1.38 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 13, 2020, placed the
rating(s) of LSC under the 'issuer non-cooperating' category as LSC
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. LSC
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and emails dated
April 18, 2021, April 8, 2021 and March 29, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Haryana-based Lord Shiva Construction Co. Pvt. Ltd. (LSC) was
incorporated in July 1992 and is currently being managed by Mr.
Anil Jain and his wife Mrs Sunita Jain. The company is engaged in
construction works which involve construction of roads and civil
construction (buildings). In road segment, LSC executes contracts
mainly for PWD (Public Work Department), Haryana, and in civil
construction the company had constructed buildings for government
colleges based out of Haryana.
M.L. TRADERS: CRISIL Withdraws B Rating on INR12cr Loans
--------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
M.L. Traders (MLT) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL Rating's policy on withdrawal of its rating
on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Warehouse Receipts 10 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with MLT for
obtaining information through letters and emails dated February 12,
2020 and August 15, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MLT. This restricts CRISIL
Ratings' ability to take a forward-looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on MLT is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
MLT to 'CRISIL B/Stable Issuer not cooperating'.
MLT was formed as a Hindu Undivided Family in 2012 by Mr Makhan Lal
Garg. The firm processes rice at its plant in Mansa, Punjab, which
has capacity of 1 tonne per hour. MLT also trades in rice and rice
bran.
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nakkheeran
Publications (NP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.95 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 30, 2020, placed the
rating(s) of NP under the 'issuer non-cooperating' category as NP
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. NP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2021, May 26, 2021 and June 5, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Chennai-based, Nakkheeran Publications (NP) was incorporated in the
year 1988 by Mr. Nakkheeran Gopal. The firm is engaged in printing
of magazines and journals.
PADMASHRI DR: CRISIL Cuts Rating on INR300cr Cash Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Padmashri Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana
Limited (PDVR) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL
B/Stable Issuer Not Cooperating' based on publicly available
information. The downgrade reflects delays in debt servicing by
PDVR from public sources.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 300.00 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 35.46 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Term Loan 72.54 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with PDVR for
obtaining information through email dated July 7, 2021, 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 PDVR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PDVR
is consistent with 'Assessing Information Adequacy Risk'.
Set up in 1950 by the Late Dr Vitthalrao Vikhe Patil, PVVPL is a
co-operative sugar mill in Ahmednagar (Maharashtra). PVVPL
manufactures sugar and allied products, including country liquor,
rectified spirit, and ethanol. The society has recently leased out
a nearby sugar unit with 1,750 tonne crushing per day (TCD) for
eight years. Mr Sujay R Vikhe Patil is the current chairman.
R.S. GREEN: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R.S. Green
Foods Private Limited (RGF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.47 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 12, 2020 placed the
rating(s) of RGF under the 'issuer non-cooperating' category as RGF
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. RGF
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated June 30, 2021, April 17, 2021, and April 17, 2021. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
R.S. Green Foods Private Limited (RGF) was incorporated in December
2011 and the operations of the company are currently being managed
by Ms. Balwant Kaur and Mr. Taman Raj. The company is engaged in
processing as well as trading of paddy at its manufacturing unit
located at Patiala, Punjab with total installed capacity of 36,000
metric ton per annum (MTPA), as on September 30, 2017. The company
also undertakes milling of rice for government and other private
entities.
REVASHANKAR GEMS: CARE Lowers Rating on INR40cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Revashankar Gems Limited (RGL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 40.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated May 22, 2020, had placed the
ratings of RGL under the 'Issuer Non-cooperating' category as the
company had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. RGL continues to be
noncooperative despite requests for submission of information
through phone calls and e-mails dated April 7, 2021, April 17, 2021
and April 27, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings assigned to the bank facilities of RGL have been
revised on account of non-availability of requisite information.
Incorporated in 1995, Revashankar Gems Limited (RGL) erstwhile
operated as partnership since 1961. RGL is engaged in the business
of processing and exporting of cut and polished diamonds of size of
0.01 to 0.10 carats. RGL has its processing plant located at Surat
(Gujarat). RGL imports rough diamonds from Belgium and Israel.
RISHI ICE: CARE Keeps B Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rishi Ice
and Cold Storage Private Limited (RICSPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.76 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 11, 2020, placed the
rating(s) of RICSPL under the 'issuer non-cooperating' category as
RICSPL had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. RICSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails dated March 27, 2021, April 6, 2021,
April 16, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in the year 2002 and commenced commercial operations
in March 2006, Rishi Ice & Cold Storage Private Limited (RICSPL) is
engaged in the business of providing cold and dry storage service
for various products such as grains, spices, dates, dry fruits and
milk products. The company has a multi-purpose storage facility
having storage capacity of 20,000 MTPA located in Navi Mumbai,
Maharashtra.
SANJAY SINGHI: CRISIL Lowers Rating on INR8cr Loans to D
--------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Sanjay Singhi (SS) to
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
management has subsequently started sharing requisite information,
necessary for carrying out comprehensive review of the rating.
Consequently, CRISIL Ratings is downgraded the rating on bank
facilities of SS from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' to 'CRISIL D/CRISIL D'. The rating reflects delay in
servicing of debt obligations in the term loans, due to stretched
liquidity of the firm.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5.5 CRISIL D (Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 2.5 CRISIL D (Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Also, the firm's is susceptibility to tender-based operations and
competition in a fragmented industry, has working capital intensive
and modest scale of operation. Its partners have extensive
experience in the construction industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in servicing of debt obligations: The firm hasn't paid
their repayment obligations on the term loan from Reliance Home
Finance.
* Susceptibility to tender-based operations and competition in a
fragmented industry: Revenue and profitability entirely depend on
the ability to win tenders. Also, entities in this segment face
intense competition which has large organized and unorganized
players, thus requiring the firm to bid aggressively to get
contracts, which restricts the operating margin.
* Large working capital intensive operations: Operations are
working capital intensive as reflected in gross current asset of
592 days as of March 31, 2021, mainly driven by high inventory days
of 196 days. Also, the retention money and earnest money deposits
with government authorities.
* Modest scale of operations: Firm's business profile is
constrained by its modest scale of operations, reflected in revenue
of INR15.33 crore in fiscal 2021. Modest scale in intensely
competitive industry restricts bargaining power and will continue
to constrain the business profile.
Strengths:
* Extensive experience of partners: The partners have an experience
of over 25 years in road construction industry. This has given them
an understanding of the dynamics of the market and enabled them to
establish relationships with suppliers and customers.
Liquidity: Poor
The firm is delaying its repayment obligations. Bank limit
utilization is high at around 95.44% for the past twelve months
ended May 2021.
Rating Sensitivity factors
Upward factor
* Timely repayment of debt obligations for 90 days
* Improvement in working capital cycle, leading to better
liquidity
SS was established in 1990 as a partnership firm. It is engaged in
civil construction activities such as road contractor for
government construction projects located in Chhattisgarh and Madhya
Pradesh. It is owned and managed by Mr. Sanjay Singhi and his wife
Mrs. Rekha Singhi.
SAWA CLAY: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of MS Sawa
Clay and Minerals Private Limited (MSCMPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.27 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 7, 2020, placed the
rating(s) of MS Sawa Clay and Minerals Private Limited (MSCMPL)
under the 'issuer non-cooperating' category as MSCMPL had failed to
provide information for monitoring of the rating and had not paid
the surveillance fees for the rating exercise as agreed to in its
Rating Agreement. MSCMPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails
dated March 23, 2021, April 2, 2021, April 12, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Chittorgarh (Rajasthan) based M S Sawa Clay & Minerals Private
Limited (MSSCM) was incorporated in 2012. The company is managed by
Mrs. Tamana Begam along with her sons, Mr. Juned Khan, Javed Khan
and Mr. Saeed Khan. The project of MSSCM is completed in April 2016
and started commercial operation. The company will purchase silica
sand and kaolin from its group company, Progressive and Popular
Minerals Private Limited (PPMPL). PPMPL has eight mines on lease
having mineral reserve of red ochre, silica sand and china clay
spread across Chittorgarh region. Further, it has two clay washing
plant and two grinding powder plants for processing of minerals to
produce more finesse products and minerals which find its
applications in various industries.
SHINE FLEXIBLE: CRISIL Lowers Rating on INR6.5cr Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Shine Flexible Print And Packs Private Limited to
'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Long Term
Bank Loan Facility 0.86 CRISIL D (Downgraded from
'CRISIL B/Stable')
Term Loan 1.64 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by Shine in
servicing its interest and principal obligations for its term loan
facility in the month of May 2021, owing to weak liquidity.
The rating continues to reflect SHINE's modest scale of operations
and intensive working capital requirement. These weaknesses are
partially offset by extensive experience of the promoters in the
polyester packaging industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: SHINE has a modest scale of
operations as reflected in its estimated revenue of less than INR11
crore in FY 2021. The same is due to intense competition from both
established as well as small players, in the highly fragmented
industry. The business risk profile is expected to remain
constrained by the company's modest scale of operations, over the
medium term.
* Large working capital requirements: SHINE's operations are
working capital intensive in nature, as reflected in its estimated
gross current assets of more than 200 days as of March 31, 2021.
Working-capital-intensive operations are on account of high debtors
and inventory days of about 100 days and 150 days, respectively as
of March 31, 2021. CRISIL believes that Shine's operations will
remain working capital intensive in nature, over the medium term
Strength:
* Promoter's extensive experience in packaging industry: set up in
2006, SHINE is promoted by Mr. KS Lalu. Over the years, the
promoter has developed healthy relations with key customers,
resulting in repeat orders from them, thereby ensuring a stable
topline. The credit profile is expected to continue benefiting from
the promoter's extensive industry experience, over the medium
term.
Liquidity: Poor
Accounting to weak operating efficiency SHINE has availed debt
restructuring for its bank facilities during November, 2020 under
the Reserve Bank of India's (RBI's) guidelines issued on August 6,
2020, called resolution framework for Covid-19 related stress. Bank
limit utilization remained almost fully utilized due to large
working capital requirement. Estimated net cash accruals in the
range of Rs.25 to 30 lakh along with unsecured loans from promoter
remains tightly matched against repayment obligations in the range
of Rs.50-60 lakh per annum. Estimated current ratio as of March 31,
2021 remains modest at less than 1 times.
Rating Sensitivity factors
Upward Factors:
* Track record of timely debt servicing.
* Efficient working capital management and improvement in operating
performance
Incorporated in 2006, the company is engaged in manufacturing of
flexible packaging materials. The company has manufacturing
facility based in Aluva (Kerala).
SIRI FOUNDATIONS: CRISIL Assigns D Rating to INR9.2cr LT Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL D' rating to the long-term
bank facility of Siri Foundations (SF).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 9.2 CRISIL D (Assigned)
The rating reflects non-repayment (interest & principal) of term
debt obligation by SF for April and May 2021. There were also
delays observed from July 2020 to March 2021.
The rating also considers the exposure of SF to risks related to
timely renewal of lease contract and modest scale of operations.
These weaknesses are partially offset by extensive experience of
promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Delay in payment of principal and interest on term loan: The
economic slowdown led by the nationwide lockdown imposed to curb
the spread of Covid-19 constrained liquidity, resulting in delayed
repayment of the term loan from July 2020 to March 2021. Further,
repayment has not yet been done in full for April and May 2021.
* Exposure to risks related to timely renewal of lease contracts:
Lease agreements in this industry are long-term (20 years). The
clients could potentially move out on expiry of the contract,
adversely impacting the lease rental income of the firm. However,
this risk is mitigated by the competitive rates offered by the firm
and the considerable fit-out charges incurred by the client.
* Modest scale of operations: The real estate operating companies
industry is highly fragmented and the consequent intense
competition may continue to constrain scalability, pricing power
and profitability.
Strength
* Extensive experience of promoters: The promoters have more than
three decades of experience in the educational services industry.
Liquidity: Poor
Liquidity should remain weak, driven by delays in servicing debt
repayment during the past 12 months and with non-repayment in April
and May 2021, amidst the ongoing pandemic. The firm did not avail
of any moratorium as per the Covid-19 Regulatory Package approved
by the Reserve Bank of India. The pandemic-led lockdown
significantly impacted fee collections of clients, who in turn
delayed the payment of rent to SF.
Rating Sensitivity factors
Upward factors
* Timely servicing of debt obligation for at least three months
* Improvement in liquidity, supported by timely collection of rent
SF was set up as a partnership firm in 2018 by Ms P Komalatha, Mr P
Umapathy and Mr P Vidya Sagar. The firm derives its revenue from
leasing out commercial property located at Venugopal Nagar in
Anantpur, Andhra Pradesh.
SPES HOSPITAL: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Spes
Hospital (SH) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.83 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 27, 2020, placed the
ratings of SH under the 'issuer noncooperating' category as SH had
failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. SH continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and emails dated June 22,
2021, May 2, 2021 and April 22, 2021, etc.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SPES Hospital was established in November 2014 as a partnership
firm by Dr. Rakesh, Dr. Manoj and Mr. Manjeet Singh. It is located
in Bhiwani, Haryana with capacity of 100 beds. The operations of
the hospital commenced from December 2015. The hospital covers all
the basic departments, such as neurology, cardiology, general
surgery, ortho, plastic surgery, pediatrics, x-ray, medicine,
Ear-Nose-Throat (ENT), Maternity Gynecology, plastic surgery,
trauma center, etc. The hospital is also associated with
third-party insurance companies.
STANDARD STRIPS: CRISIL Withdraws B Rating on INR27cr Loans
-----------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Standard Strips India
Limited (SSIPL) to 'CRISIL B/Stable Issuer not cooperating'. CRISIL
Ratings has withdrawn its rating on bank facility of SSIPL
following a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL Ratings is
migrating the ratings on bank facilities of SSIPL from 'CRISIL
B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'. The rating
action is in line with CRISIL Rating's policy on withdrawal of bank
loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 7 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING'; Rating
Withdrawn)
Cash Credit 20 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING'; Rating
Withdrawn)
Incorporated in 2004 and promoted by Mr Anil Mendiratta and his
cousin, Mr Sunil Mendiratta, SSIPL is the exclusive dealer of
galvanized steel products of Essar Steel Ltd in Faridabad, Haryana.
It also deals in similar products of JSW Steel Ltd, Bhushan Steel
Ltd, SAIL Ltd, and Uttam Galva Steel Ltd.
SUNRISE INDUSTRIES: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sunrise
Industries (Delhi) (SI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 2, 2020 placed the
ratings of SI under the 'issuer non-cooperating' category as SI had
failed to provide information for monitoring of the rating for the
rating exercise as agreed to in its Rating Agreement. SI continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated June 25,
2021, May 8 and 2021, May 3, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
New Delhi-based, Sunrise Industries was established in 2011 as a
partnership. The firm is currently being managed by Mr. Dinesh
Kumar, Mr. Nirmal Kumar and Mr. Prem Sagar sharing profit and loss
equally. The firm is engaged in manufacturing of tobacco products
such as catechu (katha). The firm has an installed capacity to
manufacture 1950 boxes of katha 20 kg each per month from its
manufacturing facility located in Haridwar, Uttarakhand as of March
31, 2018. The key raw material for manufacturing of katha is Khair
wood (scientifically called senegalia catechu) (in which white
substance catechu is found); which the firm solely procures via
auctions conducted by Uttarakhand Forest Development Corporation.
SURENDRA MULTISPECIALITY: CRISIL Assigns D Rating to INR20cr Loan
-----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL D' rating to the long-term
bank facilities of Surendra Multispeciality Hospital (SMH).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 20 CRISIL D (Assigned)
The rating reflects instances of delays in repayment of term loan
installments in the months of February and March 2021 due to delay
in commencement of operations of the hospital due to Covid-19 led
disruptions. Initially, the hospital was planned to commence in H1
of Fiscal 2021 however the operations commenced from April 2021.
The rating reflects SMH's exposure to stabilization risks with
exposure to intense competiton and expected leveraged capital
structure. These weakness are partially offset by the extensive
experience of the partners in the hospital industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: Instances of delays in repayment of
term loan installments in the months of February and March 2021 due
to delay in commencement of operations of the hospital due to
Covid-19 led disruptions.
* Exposure to stabilization risks with exposure to intense
competition: SMH commenced its operations in April 2021 which
exposes it to risk related to start-up phase amid intense
competition. Also, stabilization of operations, adequate ramp-up in
revenue, and generation of cash accrual remain critical. The
hospital is also vulnerable to competition from entry of other big
players in its region. Successful stabilization of its operations
will remain a key rating sensitivity factor.
* Expected leveraged capital structure: SMH is expected to have a
below-average financial risk profile with high gearing and subdued
debt protection metrics since around 80 percent of the project is
funded through term loan.
Strength:
* Extensive experience of the partners: The extensive experience of
the partners in the health care - hospital industry for over 35
years, their understanding of the dynamics of the market should
continue to support the business profile.
Liquidity: Poor
Liquidity is Poor, as reflected in the delays in debt servicing in
February and March 2021 due to the delay in commencement of
operations. However, currently, the firm has availed moratorium for
2 years and repayment will commence from June 2023. Cash accrual,
expected at INR0.5 crore per annum will be sufficient to meet
yearly debt obligation of INR0.32 crore.
Rating Sensitivity factors
Upward factors
* Track record of timely repayment for 3 months
* Faster ramp-up of operations
Established in 2018, SMH commenced its multi-speciality hospital in
April 2021. SMH, a partnership firm set up in Tamil Nadu, is owned
and managed by Dr PA. Rajendiran and his family members.
TRIVENI WIRES: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Triveni
Wires Private Limited (TWPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 35.79 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 6, 2020, placed the
rating(s) of TWPL under the 'issuer non-cooperating' category as
TWPL had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. TWPL continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and emails dated March 7,
2021 and July 1, 2021 among others.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in the year 1981, TWPL is engaged in the manufacturing
of galvanized iron wires, barbed wires, and chain links amongst
others. The company is using patented Electro Plasma Technology
(EPT) to clean and coat metals which uses electricity and benign
electrolytes for cleaning thereby eliminating the need for strong
acids. The manufacturing facility of the company is located at
Butibori, Nagpur with an installed capacity to manufacture 36000
MTPA.
TV VISION: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of TV Vision
Ltd. (TVVL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 24.39 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 3, 2018, placed the
rating of TVVL under the 'issuer noncooperating' category as TVVL
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. TVVL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated May 10,
2021 and May 30, 2021 among others. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
TV Vision Ltd is engaged in the business of broadcasting. The
company has channels like Mastiii, Dabangg, Maiboli, Dhamaal and
Dillagi. Mastiii is music channel for pan India. Dabangg and
Dhamaal are R-GECs catering to the Hindi-speaking belt of Bihar,
Uttar Pradesh and Jharkhand and Gujarat respectively. Maiboli is a
regional Marathi channel for Maharashtra while Dillagi is a
dedicated TV channel for small towns and villages of India. At
present, the group operates in two major segments i.e. (i) content
production and distribution/syndication and (ii) broadcasting.
UNACCO FINANCIAL: CRISIL Lowers Rating on INR85cr Loans to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Unacco Financial Services Private Limited (UFSPL) to CRISIL D
Issuer Not Cooperating from 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 25 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
Term Loan 60 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with UFSPL for
getting information. UFSPL's rating was migrated to 'CRISIL
B/Stable Issuer Not Cooperating' in June 2020. CRISIL Ratings has
once again requested cooperation and information from the issuer
through its emails dated July 2, 2021, July 5, 2021, July 6, 2021
and July 7, 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 the financial
performance of UFSPL, restricting the ability of CRISIL Ratings to
take a forward-looking view on the entity's credit quality. CRISIL
Ratings believes that rating action on UFSPL is consistent with
'Assessing Information Adequacy Risk'.
Based on publically available information, CRISIL Ratings has
downgraded its rating on the bank facilities of UFSPL to CRISIL D
Issuer Not Cooperating from 'CRISIL B/Stable Issuer Not
Cooperating'. As per data in public domain, the company has delayed
repayment of term loans since June-2021 and is classified as
Special Mentioned Account category; further the cash credit account
was overdrawn. The downgrade is in line with CRISIL Rating's
approach to recognizing default.
Analytical Approach
For arriving at the rating, CRISIL Ratings has considered the
standalone business and financial risk profile of UFSPL.
UFSPL, the erstwhile Shavi Trexim & Holdings Pvt Ltd (STHPL), is a
non-deposit taking NBFC. STHPL, registered with the Reserve Bank of
India in 1992, used to trade in shares and finance hire purchase.
The company was taken over by the present owners in 2008 to use it
as a vehicle for delivering microfinance services and the name was
changed to UFSPL in 2008, reflecting new ownership. UFSPL entered
the microfinance business in July 2008 and provides microcredit as
a source of financial services for small entrepreneurs and
businesses in the Northeast, where access to banking and related
services are very limited. The managing director and co-founder, Mr
N Iranbanta Singh, has about a decade of experience in
microfinance.
UFSPL follows joint liability group model and lends to women groups
for income-generating business purpose. The loan size varies from
INR5,000-50,000, depending on the repayment capacity of individual
clients, number of loan cycles, and type of activity. The loans
have a tenure of 12-24 months with fortnightly or weekly repayment
installments.
V AND S INTERNATIONAL: CARE Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of V And S
International Private Limited (VSI) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 34.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 2, 2020 placed the
rating(s) of VSI under the 'issuer non-cooperating' category as VSI
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. VSI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated June 30, 2021, May 08, 2021, and May 3, 2021. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further
banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Delhi-based, V and S International (VSI) was incorporated on August
14, 1992. VSI is currently being managed by Mr. Chander Parkash
Gauba and Mrs. Neeta Gauba with the help of qualified management.
VSI is engaged in manufacturing, dyeing and knitting of fabric and
manufacturing of readymade garments. The manufacturing facility is
located in Gurgaon, Haryana. VSI exports 100% of its production to
manufacturing units based in US and UK. The company procures raw
materials such as yarn and chemicals etc. from manufactures and
traders located in the domestic and overseas market.
VALLABH STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Vallabh Steels
Limited (VSL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 39 CRISIL D (Issuer Not
Cooperating)
Letter of credit 26.5 CRISIL D (Issuer Not
& Bank Guarantee Cooperating)
Proposed Long Term 4.8 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VSL for
obtaining information through letters and emails dated November 21,
2020 and May 19, 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 VSL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VSL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VSL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1968, VSL manufactures cold-rolled (CR) coils,
automotive (auto) rims, and electric resistance welded pipes. Most
of the company's revenue and profit is derived from the sale of CR
coils to local manufacturers of bicycles and auto ancillary units.
VINCI GLOBAL: CARE Lowers Rating on INR10cr LT Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vinci Global Private Limited (VGPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE BB-; Stable
Short Term Bank
Facilities 14.00 CARE D; ISSUER NOT COOPERATING
Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE A4
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 26, 2021 placed the
rating(s) of VGPL under issuer NonCooperation category.In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
The revision in the ratings assigned to bank facilities of Vinci
Global Private Limited is on account of liquidity issues faced by
the company during December 2020 for a period of two months,
resulted in overdrawing's in the overdraft account. The company has
availed interest deferment on working capital loans from March 2020
to August 2020 and as confirmed by the banker, they have converted
the accumulated interest for the deferment period up to 31.08.2020
into FITL and same has been repaid.
Vinci Global Private Limited (VGPL) was incorporated in the year
May 2016, by Mr. Vishnu Prasad and Mr. Sailesh Arvapalli. The
company is engaged in executing civil construction projects like
construction of water pipeline, rural electrification and power
transmission works, roads and others. VGPL participate in online
tenders and undertakes the works as principal and sub-contractors.
Furthermore, the company also gets the work done through
sub-contracting. The promoters of the company have more than one
decade of experience in civil construction works. The company
recently appointed new director Mr. Janardhan Reddy Somireddy in
FY19.
=================
S I N G A P O R E
=================
BEVERLY BUILDER: Creditors' Meetings Set for July 26
----------------------------------------------------
Beverly Builder Pte Ltd, which is in compulsory liquidation, will
hold a meeting for its creditors on July 26, 2021, at 3:00 p.m.,
via Zoom platform.
Agenda of the meeting includes:
a. to lay before the creditors a full statement of the affairs
of the Company, showing the assets and liabilities of the
company; and
b. to appoint a Committee of Inspection if deemed necessary;
and
c. discuss other business.
The company's liquidator can be reached at:
Don M Ho
C/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
HUA XIA: Court Enters Wind-Up Order
-----------------------------------
The High Court of Singapore entered an order on July 9, 2021, to
wind up the operations of Hua Xia Tian Jian Pte Ltd.
Tendcare Medical Group Holdings Pte Ltd (formerly known as Tian
Jian Hua Xia Medical Group Holdings Pte Ltd) and Yit Chee Wah As
Judicial Manager of Tendcare Medical filed the petition against the
company.
The company's liquidators are:
Joshua James Taylor
Chew Ee Ling
c/o Alvarez & Marsal (SE Asia) Pte. Ltd
Six Battery Road
#16-01/02
Singapore 049909
ORCHARD IVT: Creditors' Proofs of Debt Due on Aug. 13
-----------------------------------------------------
Creditors of Orchard IVT Pte. Ltd. (formerly known as Orchard ILS
Pte. Ltd.) Pte Ltd, which is in voluntary liquidation, are required
to file their proofs of debt by Aug. 13, 2021, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on June 24, 2021.
The company's liquidators are:
Lin Yueh Hung
Oon Su Sun
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
PACIFIC MANAGEMENT: Court to Hear Wind-Up Petition on July 30
-------------------------------------------------------------
A petition to wind up the operations of Pacific Management Pte Ltd
will be heard before the High Court of Singapore on July 30, 2021,
at 10:00 a.m.
Norvic Shipping International Ltd filed the petition against the
company on July 6, 2021.
The Petitioner's solicitors are:
Allen & Gledhill LLP
One Marina Boulevard #28-00
Singapore 018989
=================
S R I L A N K A
=================
SRI LANKA: Economy in Crisis as Debt Mounts, Reserves Dwindle
-------------------------------------------------------------
Channel News Asia reports that Sri Lanka has cut back on imports of
farm chemicals, cars and even its staple spice turmeric as its
foreign exchange reserves dwindle, hindering its ability to repay a
mountain of debt as the South Asian island nation struggles to
recover from the pandemic.
Toothbrush handles, venetian blinds, strawberries, vinegar, wet
wipes and sugar are among the hundreds of foreign-made goods that
were banned or made subject to special licensing requirements meant
to chip away at a trade deficit that has been deepening the
country's financial quandary for years.
According to the report, shortages are pushing prices higher for
many consumer goods, from bread to construction materials to
gasoline, triggering protests among Sri Lankans fed up with the
prolonged crisis.
Thusitha Vipulanayake ran out of motorcycles to sell in August
2020. Usually able to sell at least 30 a month, and a dozen
motorized trishaws, he now gets by selling bottled, locally grown
turmeric paste and LED lightbulbs.
"This is something we never expected," Vipulanayake said as he sat
at his empty motorcycle showroom along a road outside the capital
Colombo, CNA relays.
CNA notes that Sri Lanka was in trouble before the pandemic struck,
laying low a tourism industry that is a vital source of foreign
exchange earnings. It normally provides jobs for more than 3
million people and accounts for about 5 per cent of GDP.
Visitors already were staying away after deadly suicide bombings on
Easter Day 2019 killed more than 250 people. But efforts to revive
the industry are falling flat as the country endures another wave
of COVID-19 infections.
Now, the country's foreign exchange reserves have dwindled to
barely enough to pay for three months of imports at a time when big
repayments of its foreign debts are falling due, straining its
financial system. The Petroleum Minister, Udaya Gammapilla,
recently said the country lacked enough cash to pay for oil
imports, CNA relays.
To conserve precious foreign exchange, the government has limited
US dollar transactions. Despite the limits imposed last year,
imports still outpace the country's exports of tea, rubber, seafood
and garments, the report says.
"The condition of the economy is in dire straits, there is no doubt
about it" the report quotes Muttukrishna Sarvananthan, head of the
economic research group Point Pedro Institute of Development, as
saying.
Sri Lanka needs to make foreign debt payments totaling US$3.7
billion this year, having paid US$1.3 billion so far, CNA
discloses. That's in addition to local debt, according to the
central bank. Its currency has been gradually weakening against
other major currencies, making such repayments more costly in local
terms.
Fitch Ratings has downgraded Sri Lanka to its CCC category,
indicating a real possibility of default. It said the country's
foreign debt obligation will balloon to US$29 billion over the next
five years.
*********
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,
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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.
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