/raid1/www/Hosts/bankrupt/TCRAP_Public/210723.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, July 23, 2021, Vol. 24, No. 141
Headlines
A U S T R A L I A
AVENIR PACIFIC: Second Creditors' Meeting Set for Aug. 3
DSO INVESTMENTS: Second Creditors' Meeting Set for July 29
PINDAN ASSET: Second Creditors' Meeting Set for July 29
PLENTI AUTO 2021-1: Moody's Assigns (P)B2 Rating to Class F Notes
ROSE PROJECT: Second Creditors' Meeting Set for July 29
TDG SUTHERLAND: Second Creditors' Meeting Set for July 29
C H I N A
CHINA CITIC: Moody's Gives Ba2(hyb) Rating on New AT1 Securities
CHINA EVERGRANDE: Resolves Debt Dispute with Guangfa Bank
H O N G K O N G
JIAYUAN INT'L: Fitch Rates Proposed USD Secured Bonds 'B'
I N D I A
ADITYA CHANAKYA: CARE Keeps B- Debt Rating in Not Cooperating
APPU HOTELS: NCLT Approves MGM's INR423-cr Resolution Plan
ARPEE ENERGY: CARE Lowers Rating on INR7.00cr LT Loan to D
BALAJI STEEL: CARE Keeps D Debt Rating in Not Cooperating
BOSHAN DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
CLUB 29: CARE Keeps D Debt Ratings in Not Cooperating Category
DUNGARMAL DHANRAJ: CARE Keeps B- Debt Rating in Not Cooperating
GOLD PALACE: CARE Keeps B- Debt Rating in Not Cooperating
GREEN VATIKA: CARE Keeps D Debt Rating in Not Cooperating
HINDUSTHAN NATIONAL: CARE Keeps D Debt Ratings in Not Cooperating
INDUSTRIAL PERFORATION: CARE Cuts Rating on INR3cr LT Loan to C
J P AND COMPANY: CARE Keeps C Debt Rating in Not Cooperating
KADAM AND KADAM: CARE Keeps D Debt Rating in Not Cooperating
KAMESHWAR INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
KANACHUR ISLAMIC: CARE Keeps C Debt Rating in Not Cooperating
MADAN GOPAL: CARE Keeps D Debt Rating in Not Cooperating
MALPANI COTTONS: CARE Lowers Rating on INR14cr LT Loan to C
MANJU AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category
NIRMAL CARS: CARE Keeps B- Debt Rating in Not Cooperating
RAJALAKSHMI EDUCATIONAL: CARE Cuts Rating on INR246.36cr Loan to D
RAMA POWER: CARE Lowers Rating on INR20cr LT Loan to B+
RAMA UDYOG: CARE Lowers Rating on INR25cr LT Loan to B+
RK TRADE: CARE Lowers Rating on INR8.0cr LT Loan to C
RKSK STEEL: CARE Lowers Rating on INR25cr LT Loan to B+
SHRIYA OVERSEAS: CARE Keeps D Debt Ratings in Not Cooperating
SULABH PHARMACEUTICAL: CARE Keeps D Debt Rating in Not Cooperating
SWASTIK GINNING: CARE Lowers Rating on INR7cr LT Loan to B-
THREE C HOMES: NCLAT Sets Aside Liquidation Order on Lotus City
ULTRA ALLUMINIUM: CARE Lowers Rating on INR8.30cr LT Loan to C
UTKAL METALLICS: CARE Lowers Rating on INR7.30cr LT Loan to B-
VADERA TRADELINK: CARE Lowers Rating on INR12cr LT Loan to B-
VAIBHAV COTEX: CARE Lowers Rating on INR10.70cr LT Loan to B
VAIBHAV COTGIN: CARE Lowers Rating on INR13.50cr LT Loan to B
VIDEOCON GROUP: NCLAT Stays Vedanta-led Twin Star Tech's Takeover
I N D O N E S I A
ABM INVESTAMA: Fitch Assigns B+ Rating on Proposed USD Notes
ABM INVESTAMA: Moody's Rates New USD Unsecured Notes 'B1'
S I N G A P O R E
ELLIPZ LIGHTING: Creditors' Meetings Set for July 29
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A U S T R A L I A
=================
AVENIR PACIFIC: Second Creditors' Meeting Set for Aug. 3
--------------------------------------------------------
A second meeting of creditors in the proceedings of Avenir Pacific
Pty Ltd, formerly trading as Cosme Market, has been set for Aug. 3,
2021, at 11:00 a.m. at the offices of SM Solvency Accountants,
10/144 Edward Street, in Brisbane, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 2, 2021, at 4:30 p.m.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Avenir Pacific on June 29, 2021.
DSO INVESTMENTS: Second Creditors' Meeting Set for July 29
----------------------------------------------------------
A second meeting of creditors in the proceedings of DSO Investments
Pty Ltd has been set for July 29, 2021, at 10:30 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 29, 2021, at 10:30 a.m.
David Michael Stimpson and Anne Meagher of SV Partners were
appointed as administrators of DSO Investments on June 24, 2021.
PINDAN ASSET: Second Creditors' Meeting Set for July 29
-------------------------------------------------------
A second meeting of creditors in the proceedings of Pindan Asset
Management Pty Ltd has been set for July 29, 2021, at 10:00 a.m. at
the offices of Level 5, EY Building, 11 Mounts Bay Road, Perth, WA,
6000 and via Microsoft Teams.
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 28, 2021, at 12:00 p.m.
Samuel John Freeman, Colby O'Brien and Vincent Smith of Ernst &
Young were appointed as administrators of Pindan Asset on May 18,
2021.
PLENTI AUTO 2021-1: Moody's Assigns (P)B2 Rating to Class F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to notes
to be issued by Perpetual Corporate Trust Limited in its capacity
as the trustee of the Plenti Auto ABS 2021-1 Trust.
Issuer: Plenti Auto ABS 2021-1 Trust
AUD262.5 million Class A Notes, Assigned (P)Aaa (sf)
AUD6.3 million Class A-X Notes, Assigned (P)Aaa (sf)
AUD15 million Class B Notes, Assigned (P)Aa2 (sf)
AUD6 million Class C Notes, Assigned (P)A1 (sf)
AUD7.5 million Class D Notes, Assigned (P)Baa2 (sf)
AUD5.25 million Class E Notes, Assigned (P)Ba2 (sf)
AUD2.25 million Class F Notes, Assigned (P)B2 (sf)
The AUD1.5 million Class G Notes are not rated by Moody's.
Plenti Auto ABS 2021-1 Trust (Plenti 2021-1) transaction is a
static cash securitisation of consumer auto loan receivables
extended to prime borrowers in Australia by Plenti Finance Pty
Limited (Plenti, unrated).
Plenti is a 100% owned Australian subsidiary of Plenti Group
Limited. The Plenti business was established in 2014 focusing on
unsecured consumer lending before commencing automotive lending in
2017. Following strong growth in its automotive finance book,
Plenti is issuing its inaugural auto ABS transaction. Plenti is a
technology-led lending business, offering creditworthy borrowers
automotive, renewable energy and personal loans, delivered via its
proprietary technology platform.
RATINGS RATIONALE
The limited amount of historical data. Plenti was established in
2014, with significant origination growth beginning in 2017
onwards. The collateral performance data used in Moody's analysis
reflects Plenti's short origination history and does not cover a
full economic cycle.
The evaluation of the capital structure. The transaction features
a sequential/pro rata paydown structure. The notes will be repaid
on a sequential basis until the pro rata paydown conditions are
satisfied, principal will be distributed pro rata among Class A
through Class F Notes. Following the call date, or if the pro rata
conditions are otherwise not satisfied, the principal collections
will be distributed sequentially starting with Class A Notes.
Initially, the Class A, Class B, Class C, Class D, Class E and
Class F Notes benefit from 12.50%, 7.50%, 5.50%, 3.00%, 1.25% and
0.50% of note subordination, respectively.
The Class A-X Notes are repaid according to a scheduled
amortisation profile. These notes are not collateralised and are
repaid through the interest waterfall only. The notes are sensitive
to very high prepayment rates, which could see the underlying asset
portfolio repay in full before the notes have fully amortised in
June 2024. If the deal is called by the sponsor before repayment of
the Class A-X Notes under the amortisation schedule in June 2024,
the Class A-X Notes will be made whole and repaid in full. The
notes also benefit from access to principal draw providing the
Class A Notes stated amount is above zero.
The availability of excess spread over the life of the
transaction. The portfolio yield of 6.87% providing significant
excess spread to cure portfolio losses. The transaction also
contains a loss reserve which traps excess spread up to a maximum
of AUD0.75 million if 90+ arrears are greater than 2% and class A-X
notes are outstanding.
The liquidity facility in the amount of 1.50% of the note
balances.
The interest rate swap provided by National Australia Bank Limited
("NAB", Aa3/P-1/Aa2(cr)/P-1(cr)).
The experience of Plenti as servicer, and the back-up servicing
arrangements with Perpetual Corporate Trust Limited.
MAIN MODEL ASSUMPTIONS
Moody's base case assumptions are a mean default rate of 2.80%, a
recovery rate of 35.0%, and a Aaa portfolio credit enhancement
("PCE") of 13.50%. The expected defaults and recoveries capture
Moody's expectations of performance considering the current
economic outlook, while the PCE captures the loss Moody's expect
the portfolio to suffer in the event of a severe recession
scenario. Expected defaults and PCE are parameters used by Moody's
to calibrate its lognormal portfolio default distribution curve and
to associate a probability with each potential future default
scenario in its ABSROM cash flow model.
Moody's assumed mean default rate is stressed compared to the
extrapolated observed levels of default, estimated at 0.91%. The
stress Moody's has applied in determining its mean default rate
reflects the limited historical data available for Plenti's
portfolio. It also reflects the current macroeconomic trends, and
other similar transactions used as a benchmark.
The PCE of 13.50% is broadly in line with other Australian auto ABS
deals and is based on Moody's assessment of the pool taking into
account (i) historical data variability, (ii) quantity, quality and
relevance of historical performance data, (iii) originator quality,
(iii) servicer quality, (iv) certain pool characteristics, such as
asset concentration.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was " Moody's
Global Approach to Rating Auto Loan- and Lease-Backed ABS "
published in December 2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the ratings. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The Australian job market is a
primary driver of performance.
Down
Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The Australian job market is a
primary driver of performance. Other reasons for worse performance
than Moody's expects include poor servicing, error on the part of
transaction parties, a deterioration in credit quality of
transaction counterparties, lack of transactional governance and
fraud.
ROSE PROJECT: Second Creditors' Meeting Set for July 29
-------------------------------------------------------
A second meeting of creditors in the proceedings of Rose Project
Management Pty Ltd has been set for July 29, 2021, at 11:30 a.m.
via virtually by teleconference.
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 28, 2021, at 2:00 p.m.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency
& Forensic Accountants were appointed as administrators of Rose
Project on June 24, 2021.
TDG SUTHERLAND: Second Creditors' Meeting Set for July 29
---------------------------------------------------------
A second meeting of creditors in the proceedings of TDG Sutherland
Pty Ltd has been set for July 29, 2021, at 11:00 a.m. via virtual
meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 28, 2021, at 5:00 p.m.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency
& Forensic Accountants were appointed as administrators of TDG
Sutherland on June 24, 2021.
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C H I N A
=========
CHINA CITIC: Moody's Gives Ba2(hyb) Rating on New AT1 Securities
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 (hyb) rating to China
CITIC Bank International Limited's proposed USD-denominated,
undated, non-cumulative and subordinated AT1 capital securities
with non-viability loss absorption features. Distributions may be
cancelled in full or in part on a non-cumulative basis at the
issuer's discretion or mandatorily in the case that distributable
reserves are not sufficient.
RATINGS RATIONALE
The assigned Ba2 (hyb) rating reflects: (1) China CITIC Bank
International's Baseline Credit Assessment (BCA) and Adjusted BCA
of baa2; (2) Moody's Advanced Loss Given Failure (LGF) analysis,
resulting in a position that is three notches below the bank's
Adjusted BCA; and (3) Moody's assumption of a low probability of
support from the government of Hong Kong, China for loss-absorbing
instruments, resulting in no uplift.
China CITIC Bank International is subject to Hong Kong's Financial
Institutions (Resolution) Ordinance and Moody's considers Hong Kong
to be an Operational Resolution Regime.
Moody's uses the probability of the failure of China CITIC Bank
International taking into account potential affiliate support —
as represented by the bank's Adjusted BCA of baa2 — as the
starting point for rating the bank's AT1 securities. Moody's then
applies its Advanced LGF analysis to determine the loss given
failure of the AT1 securities.
Given limited subordination in the form of residual equity, the
Advanced LGF analysis indicates a high loss given failure for the
AT1 securities, resulting in a position that is one notch below the
bank's Adjusted BCA.
In addition, Moody's rating for the non-viability AT1 securities
also incorporates two additional notches to capture the risk of
coupon suspension on a non-cumulative basis.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
China CITIC Bank International's AT1 securities rating would be
upgraded if the bank's Adjusted BCA is upgraded.
Given that CITIC Bank International's BCA is already three notches
above that of its parent, an upgrade of the bank's BCA is unlikely
unless the parent's BCA is upgraded.
CITIC Bank International's ratings could be upgraded if the parent
bank's ratings are upgraded.
CITIC Bank International's BCA could be downgraded if (1) its asset
quality metrics deteriorate materially, with its impaired loan
ratio rising above 4.0%, (2) its capitalization falls
significantly, with its total common equity (TCE) to risk-weighted
assets (RWA) falling below 11.0%, or (3) the operating environment
in Hong Kong and China weakens significantly due to the ongoing
impact of the pandemic.
CITIC Bank International's ratings could be downgraded if (1)
government support diminishes or if the parent's ratings are
downgraded or (2) the subordination of junior liabilities leads to
a higher loss given failure.
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Banks Methodology
published in July 2021.
China CITIC Bank International Limited is headquartered in Hong
Kong and reported total assets of HKD383.9 billion as of the end of
2020.
CHINA EVERGRANDE: Resolves Debt Dispute with Guangfa Bank
---------------------------------------------------------
South China Morning Post reports that China Evergrande said on July
15 that it resolved a dispute with a bank creditor that led to
CNY132 million (US$20 million) in its assets being frozen this
month.
According to the report, the Shenzhen-based company said it
maintained a "cooperative relationship" with China Guangfa Bank and
had resolved its dispute with the bank following additional
communication.
"The two parties will continue to consolidate and deepen their
business relationship in the future," Evergrande said in a
statement on its website, the Post relays.
The Post relates that Evergrande, the world's most indebted
developer, said on July 19 that it was considering "legal
proceedings" against Guangfa Bank after the lender obtained a court
order in eastern China earlier this month freezing some of its
assets.
The developer's shares crashed in Hong Kong on July 19, falling 16
per cent and wiping US$2.7 billion off its market capitalisation
after the dispute became public and increased concerns about its
financial health, the report notes.
Shares of Evergrande jumped as much as 11 per cent in early trading
in Hong Kong on July 22 following the announcement.
Several major banks in Hong Kong stopped offering mortgage loans
for unfinished flats in its two projects in the city this week as a
result, according to people familiar with the matter, the Post
relates. The banks include Bank of China (Hong Kong), Bank of East
Asia, HSBC, Industrial and Commercial Bank of China (Asia), Hang
Seng Bank and Standard Chartered, the people said.
The projects under construction are the Emerald Bay phase two in
Tuen Mun and The Vertex in Cheung Sha Wan. Phase one of Emerald Bay
is already completed.
The 1,228-unit Emerald Bay phase two project is due to be completed
in the third quarter of this year, while the 414-unit The Vertex
will be completed in the fourth quarter.
According to the report, Bank of East Asia said on July 21 that the
policy would not affect approved applications for mortgages at
either property and it "continues to accept applications for these
projects on a first legal charge basis".
The Post adds that Evergrande said on July 21 that it was moving
forward with its Hong Kong projects on schedule and some banks
remained "positive" on accepting mortgages for presale homes. The
developer said it believed the effect of the mortgage change would
be "minor".
It also said it would review affected buyers in Hong Kong on a
case-by-case basis and extend the transaction period for up to 60
days, the Post relays.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific in early
July 2021, Moody's Investors Service has downgraded the corporate
family ratings of China Evergrande Group to B2 from B1; Hengda Real
Estate Group Company Limited to B2 from B1; Tianji Holding Limited
to B3 from B2; and the backed senior unsecured ratings of Scenery
Journey Limited to B3 from B2. The backed senior unsecured rating
on the notes issued by Scenery Journey are guaranteed by Tianji.
The notes are also supported by a keepwell deed and a deed of
equity interest purchase undertaking between Hengda, Tianji,
Scenery Journey and the bond trustee. At the same time, Moody's
has placed the ratings under review for further downgrade. The
previous ratings outlook was negative.
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H O N G K O N G
=================
JIAYUAN INT'L: Fitch Rates Proposed USD Secured Bonds 'B'
---------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Jiayuan
International Group Limited's (B/Positive) proposed US dollar
senior secured convertible bonds a rating of 'B', with a Recovery
Rating of 'RR4'. Fitch will not apply equity credit to the
convertible bonds when analysing Jiayuan's corporate ratings due to
the short tenor and Jiayuan's inability to defer payments.
The proposed bonds will be secured with equity stakes in Jiayuan's
three wholly owned investment holding subsidiaries, which hold
mainly Jiayuan's property project companies in China. The notes are
rated at the same level as Jiayuan's senior unsecured obligations
as Fitch believes normally equity is not worth much by the time of
a default.
Jiayuan's ratings are supported by the company's strong presence in
the Yangtze River Delta (YRD) and high profitability. The ratings
are constrained by a limited operational record outside the YRD,
significant related-party transactions and large near-term
capital-market maturities.
The Positive Outlook reflects Jiayuan's commitment to discipline in
acquiring new assets from sister company Jiayuan Chuangsheng
Holding Group Co., Ltd, as well as the company's efforts to address
upcoming debt maturities and improve its debt-maturity profile.
KEY RATING DRIVERS
Focus in YRD: Jiayuan has operated for more than 20 years in the
YRD, especially in Jiangsu province. The injection of
property-development (PD) projects in 2018-2021 from its largest
shareholder, which were previously held by Jiayuan Chuangsheng,
accelerated Jiayuan's expansion into Shanghai, Anhui and Shandong
province. Jiayuan has also been gradually expanding into Tier 2 and
3 cities in southern and western China, such as Guangzhou, Shenzhen
and Huizhou in Guangdong and Urumqi in Xinjiang, from 2016.
Fitch expects the YRD to continue to contribute the majority of
sales over the next one-to-two years, as nearly half of Jiayuan's
land bank was in the region at end-2020, where demand remains
robust. Jiangsu, Anhui and Shanghai contributed more than 85% of
Jiayuan's attributable sales in 2019 and 2020; Jiangsu alone
contributed 63% in 2019 and 52% in 2020.
Strong Profitability: Jiayuan's EBITDA margin (excluding
capitalised interest) has been high at above 30% due to its
penetration in the YRD and the cheap land acquired many years ago.
Its average land cost was low at CNY2,073 per sq m at end-2020,
less than 20% of the average selling price of its contracted sales
of around CNY11,000/sq m. Unrecognised contracted sales of around
CNY28 billion at end-2020 had a high gross profit margin of around
30%, ensuring Jiayuan's profitability for the next one-to-two
years.
Fitch expects Jiaiyuan's margins to decrease as it expands outside
Jiangsu and the YRD because it will have to buy more land via
fiercely competitive public auctions. Fitch forecasts the EBITDA
margin to gradually narrow to around 30% in the medium term, from
the current 35% and above.
Related-Party Land Acquisitions: Jiayuan acquired PD projects from
its largest shareholder, Mr Shum Tin Ching, and Jiayuan Chuangsheng
in 2018-2019 for a total enterprise value of CNY5.5 billion,
accounting for 13% and 59% of Jiayuan's land acquisitions in 2018
and 2019 by value, respectively. Jiayuan also acquired PD projects
in Shandong from related parties in 1H21. Fitch generally considers
large related-party transactions as credit constraints, although
Jiayuan's risks are mitigated by the checks and balances in Hong
Kong's listed company rules.
Sales Growth to Slow: Jiayuan's annual attributable sales,
including Shandong, of CNY30 billion-35 billion are at the low end
for 'B+' rated peers, most of which have attributable sales of
above CNY40 billion. Fitch expects Jiayuan's sales to be supported
by robust demand in Tier 2-3 and satellite cities in the YRD and
Qingdao in the next two years. However, sales growth will slow as
it expands into lower-tier cities and less-developed regions, where
housing demand is less resilient. Land bank outside of the YRD made
up more than 40% of the total by end-2020, from nil at end-2016.
Sister Company's Weaker Credit Profile: Fitch takes into
consideration Jiayuan Chuangsheng's credit profile and assesses the
combined leverage of Jiayuan and its sister company to reflect the
moderate linkages between the two entities and Jiayuan
Chuangsheng's weaker financial profile and liquidity than Jiayuan.
Moderate Leverage: Leverage, measured by net debt/adjusted
inventory, for the combined Jiayuan and Jiayuan Chuangsheng was
around 40% at end-2020, comparable with the median of 50% for
Fitch-rated developers in the 'B' rating category. Jiayuan
Chuangsheng's leverage of 50%-55% over the past two years is higher
than Jiayuan's 30%-35%. Jiayuan Chuangsheng's liquidity, measured
by available cash to short-term debt, improved to 1.1x by end-2020
from 0.5x at end-1H20, while Jiayuan's ratio remained above 1x.
ESG - Group and Governance Structure: Jiayuan has an ESG Relevance
Score of '4' for Group Structure, to reflect the large
related-party transactions, which has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors. Jiayuan also has an ESG Relevance Score of '4' for
Governance Structure as its shareholding is highly concentrated in
its single largest shareholder, who owns a 74.93% stake after
Jiayuan's payment with shares for the Shandong projects. This has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.
DERIVATION SUMMARY
Jiayuan's business and financial profile is comparable with that of
Chinese property developers rated 'B' and 'B+'. Jiayuan's
attributable contracted sales of around CNY30 billion are smaller
than that of most peers rated 'B+', which have sales of CNY40
billion-60 billion, except for Hopson Development Holdings
Limited's (B+/Stable) CNY30 billion and Fantasia Holdings Group
Co., Limited's (B+/Negative) CNY35 billion.
Jiayuan's business profile is supported by its good-quality land
bank in the YRD that was acquired years ago, which supports a
healthy margin. Fitch forecasts its combined leverage at 40%-45%
for 2021, which is similar to the 40%-50% of most 'B+' peers, such
as Helenbergh China Holdings Limited (B+/Stable). Jiayuan's EBITDA
margin (excluding capitalised interest) of over 30% is one of the
highest among its peers, which have an average of 20%-25%,
supporting its ratings.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Attributable sales to rise by 5%-10% per year in 2021-2022;
-- Cash collection rate at 80% during 2021-2022;
-- Land premium to represent 40%-45% of sales receipts during
2021-2022 to maintain a land-bank life of around three years;
-- Construction expenditure equivalent to 40%-45% of sales
receipts during 2021-2022.
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that Jiayuan would be liquidated
in a bankruptcy because it is an asset-trading company.
-- Fitch has assumed a 10% administrative claim.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
The 80% advance rate applied to adjusted inventory is supported by
Jiayuan's high-profit products, which generate an EBITDA margin of
above 30%.
Advance rate of 70% is applied to trade receivables. This treatment
is in line with other Chinese developers.
Advance rate of 60% is applied to property, plant and equipment, as
these are property assets that can be sold to repay debt when
needed. This treatment is in line with other Chinese developers.
Advance rate of 50% is applied to the investment-property
portfolio, considering the rental yield of Jiayuan's
investment-property assets and their location.
Advance rate of 60% is applied to excess cash, which is defined as
available cash (CNY9 billion at end-2020) after deducting three
months of contracted sales of around CNY6.4 billion.
Advance rate of 100% is applied to restricted cash.
The allocation of value in the liability waterfall results in
recovery corresponding to an 'RR1' Recovery Rating for the senior
unsecured debt. However, the Recovery Rating for the senior
unsecured debt is capped at 'RR4' because under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, China
falls into Group D of creditor friendliness, and the Recovery
Ratings on instruments of issuers with assets in this group are
subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A longer record of strong corporate governance practices;
-- Successful refinancing of upcoming bond maturities and an
improvement in overall debt maturity profile;
-- Combined leverage of Jiayuan and Jiayuan Chuangsheng sustained
below 50%.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Failure to reach Fitch's Positive Outlook guidelines in the
next 18-24 months would lead to the Outlook reverting to
Stable.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Large Capital-Market Maturities: Fitch expects Jiayuan to continue
facing a large amount of capital-market debt maturities over the
next 12 months, including USD327.5 million puttable in October
2021, USD145 million due March 2022 and USD103 million due May
2022.
The high refinancing pressure is mitigated by the company's
continuous presence in the offshore debt market, sufficient lead
time to address the maturities, and its robust sales year to date.
Jiayuan issued senior notes of USD500 million in October 2020,
USD300 million in January 2021 and USD130 million in May 2021, with
tenors of 2-2.75 years to refinance its short-term capital-market
maturities.
Jiayuan had CNY9 billion in unrestricted cash as of end-2020, which
is sufficient to cover CNY7.1 billion in short-term debt.
ISSUER PROFILE
Jiayuan is a small-to-mid-sized property developer focusing on
China's Tier 2 and 3 as well as satellite cities in the YRD. The
company was listed on the Hong Kong Stock Exchange in 2016.
ESG CONSIDERATIONS
Jiayuan has an ESG Relevance Score of '4' for Group Structure to
reflect the large related-party transactions, which has a negative
impact on the credit profile, and is relevant to the rating in
conjunction with other factors.
Jiayuan has an ESG Relevance Score of '4' for Governance Structure
as its shareholding is highly concentrated in its single largest
shareholder. This has a negative impact on the credit profile, and
is relevant to the rating in conjunction with other factors.
Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of '3' - ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=========
I N D I A
=========
ADITYA CHANAKYA: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aditya
Chanakya Group (ACG) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 28, 2020, placed the
rating(s) of ACG under the 'issuer non-cooperating' category as ACG
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. ACG continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 13, 2021, April 23, 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.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
ACG was established in the year 2006 as partnership firm by Mr.
Dhananjay Shende and Mr. Janavi Yerpuda. The firm is engaged in
civil construction and within civil construction; it undertakes the
constructions of construction of buildings, and civil structures.
The firm has its presence in Maharashtra state and receives order
from private players as sub contract.
APPU HOTELS: NCLT Approves MGM's INR423-cr Resolution Plan
----------------------------------------------------------
The Hindu BusinessLine reports that the National Company Law
Tribunal, Chennai, has approved the Resolution Plan submitted by MK
Rajagopalan, Chairman and Managing Director of MGM Healthcare
Group, on the Insolvency and Bankruptcy case of Appu Hotels Ltd,
which operates Le Meridien Chennai, Coimbatore and the Riverside
Spa and Resorts.
According to BusinessLine, R Sucharitha, Member (Judicial) and Anil
Kumar, Member (Technical), NCLT, Chennai, passed the order on July
15 based on an application filed by Tourism Finance Corporation of
India (financial creditor) on May 5, 2020, initiating the corporate
insolvency resolution process in relation to Appu Hotels (debtor).
The list of financial and operational creditors were listed as on
December 14, 2020 and fair value was at INR730.88 crores and
liquidation value at INR569.33 crore, the report says. The Interim
Resolution Professional (Mukesh Kumar Gupta) received Resolution
Plans from Madhav Dhir; MK Rajagopalan and Kotak Special
Situations. Subsequently, Rajagopalan provided a detailed plan with
a total consideration of the Resolution Plan being INR423 crores,
the Order said.
One of the objectors to the Resolution Plan was the suspended
Director/Promoter (Palani G Periyasamy), who contended that there
were several procedural lacunae and misinformation in the conduct
of the Corporate Insolvency Resolution Process which was rushed and
marred with procedural inadequacies and that the Resolution
Applicant lacks the expertise to keep the Corporate Debtor as a
going concern, says BusinessLine.
It was further submitted that according to the valuation report
prepared by BVe Consulting Engineers in 2019, the total value of
the properties at Replacement Cost amounts to INR1,641 crore, which
is four times the value proposed in the Resolution Plan proposed by
the Resolution Applicant, BusinessLine discloses. It was also
submitted that the fair value and liquidation value of the
Corporate Debtor is INR724.98 crore and INR565.05 crore
respectively and the said figure is undervalued and is at least
less than 33 per cent of the valuation done by BVe Consulting
Engineers in September 2019. Even by taking into account the
prevailing Covid - 19 pandemic situation and the market shock
caused as a result of the same, a 70 per cent fall in valuation of
the Corporate Debtor is untenable and incredulous.
"Resolution Professional to finalise the further line of action
required for starting of the operation. Accordingly, the
Application IA/150/CHE/2021 (by Rajagopalan) stands allowed. All
other connected Applications, as arrayed in the cause title, stands
dismissed," the Order, as cited by BusinessLine, said. Rajagopalan
is the chairman of the Sri Balaji Educational & Charitable Public
Trust and Sri Balaji Vidyapeeth trust, which runs the Mahatma
Gandhi Medical College & Research Centre (MGMCRI) established in
Puducherry and Sathya Sai Medical College in Kanchipuram.
MGM Healthcare a quaternary care 400 bedded hospital was
established to enter the Chennai healthcare market in 2018.
ARPEE ENERGY: CARE Lowers Rating on INR7.00cr LT Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Arpee Energy Minerals Private Limited (AEMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 16, 2020, placed the
rating(s) of AEMPL under the 'issuer non-cooperating' category as
AEMPL 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. AEMPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2021, May 12, 2021, May 22, 2021 and July 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(s).
The rating assigned to the bank facilities of AEMPL have been
revised on account of on-going delays in debt servicing recognized
from publicly available information.
Arpee Energy Minerals Private Limited (AEMPL) was incorporated in
March 2006 by Mr. Praveen Kumar Agarwal and Mr. Raman Mehra. The
company is engaged in the business of coal trading. The company
procures its trading material from Central coalfields limited,
Bihar foundry & castings ltd etc. and sells the same to various
industries like steel, power etc. The day-to-day affairs of the
company are looked after by Mr. Praveen Kumar Agarwal (Director)
with adequate support from other director- Mr. Raman Mehra and a
team of experienced personnel.
BALAJI STEEL: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Balaji Steel (SBS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.80 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
rating(s) of SBS under the 'issuer non-cooperating' category as SBS
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. SBS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 12, 2021, April 22, 2021, May 2, 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).
SBS is based out of Nagpur, Maharashtra is a proprietorship entity
promoted by Mr. Radheshyam Sarda and commenced operation in January
1981. SBS is engaged in trading of iron &steel products such as
Thermo Mechanically Treated (TMT) bars, round bars, angles,
channels, beams, flats, sheets, etc. which find application in
industries like construction, infrastructure and engineering.
BOSHAN DEVELOPERS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Boshan
Developers Private Limited (BDPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.40 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 11, 2020, placed the
rating(s) of BDPL under the 'issuer non-cooperating' category as
BDPL 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. BDPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email 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
Established in the year 1996, BDPL is engaged in the business of
real estate development. Further from FY16, the company also
ventured into hospitality business and is managing a hotel at Goa.
The income from hotel business contributed around 15% of total
operating income in FY16 and remaining was contributed by real
estate business.
CLUB 29: CARE Keeps D Debt Ratings in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Club 29
Private Limited (CPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.13 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 May 14, 2020, placed the
rating(s) of CPL under the 'issuer non-cooperating' category as CPL
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. CPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 30, 2021, April 9, 2021, April 19, 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.
CPL incorporated in January 2012, is a Mont Vert Group venture
based out of Wakad, Pune and is focused on providing a recreational
indoor centre. Club29 is a recreational facility that provides
facilities such as restaurant banquets halls, gymnasium facility,
sports lounge consisting of badminton court, squash court,
Table-Tennis tables, swimming pool, bowling alley, billiards tables
and fuzz ball tables etc.
DUNGARMAL DHANRAJ: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dungarmal
Dhanraj and Company (DDC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 23, 2020, placed the
rating(s) of DDC under the 'issuer non-cooperating' category as DDC
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. DDC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 9, 2021, May 19, 2021, May 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).
M/s. Dungarmal Dhanraj & Co. (DDCO) was established by Kella family
in 1986 as a partnership firm with three partners. Thereafter, it
was converted into a proprietorship firm with Mr. Lalit Kella as
the proprietor. The firm is engaged in trading of sugar. The firm
procures sugar from sugar mills and sells it to government
warehouses i.e. District Supply Officer (DSO) controlled warehouses
and other private players. The proprietor's father, Mr. Dhanraj
Kella, operates a group entity in the same line of business, viz.,
M/s. Dhanraj & Co. (DCO).
GOLD PALACE: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gold Palace
Jewellers (GPJ) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 9, 2020, placed the
rating(s) of GPJ under the 'issuer non-cooperating' category as GPJ
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. GPJ continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 25, 2021, May 5, 2021 and May 15, 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).
Gold Palace Jewellery (GPJ) is a partnership firm established in
the year 1997. The partners of the firm are Mr. Shaik Allabaksh and
Ms. Dilshad Begum. GPJ deals in gold, silver and diamond jewellery
retailing business. The firm is running the business from its two
showrooms located at Bangalore i.e. one is located at Dispensary
Road and the other at Shivajinagar.
GREEN VATIKA: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Green
Vatika Constructions Private Limited (GVCPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 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 May 7, 2020, placed the
rating of GVCPL under the 'issuer non-cooperating' category as
GVCPL 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. GVCPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated March
23, 2021, April 02, 2021, April 12, 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.
Jharkhand based Green Vatika Constructions Pvt. Ltd. (GVCPL) was
incorporated in July 2012 by Mr. Rajesh Agarwal, Mr. Ajay Agarwal,
Mrs. Sumita Agarwal and Mrs. Sonam Agarwal. The company is engaged
in development of residential projects. The company has executed
only one residential project 'Daffodils' so far.
HINDUSTHAN NATIONAL: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hindusthan
National Glass & Industries Ltd. (HNG) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2,063.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 600.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Non-Convertible 200.00 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 22, 2020, continued the
ratings of HNG under the 'issuer non-cooperating' category as HNG
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. HNG continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated June 7, 2021 and
June 27, 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 ratings.
HNG, incorporated in February 1946, was promoted by late Mr. C. K.
Somany of the Kolkata-based Somany family. The company is a leading
manufacturer of container glass with seven manufacturing units,
spread across the country having an aggregate installed capacity of
1,569,500 tpa (tonne per annum), the largest in the country.
INDUSTRIAL PERFORATION: CARE Cuts Rating on INR3cr LT Loan to C
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Industrial Perforation (India) Private Limited (IPIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Short Term Bank 10.00 CARE A4; 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 29, 2020, placed the
ratings of IPIPL under the 'issuer non-cooperating' category as
IPIPL 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. IPIPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated April
14, 2021, April 24, 2021, May 4, 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 ratings.
The revision in the long-term rating takes into account the
deterioration in debt coverage indicators along with incurred
operating and net losses during FY20 audited.
Industrial Perforation (India) Private Limited (IPIPL) was
initially set up as a partnership firm, "Industrial Perforation" in
1981 by two friends Shri Ashis Kumar Saha and Smt. Alpana Kundu of
Kolkata, West Bengal. Subsequently, the firm was reconstituted as
Private Limited Company in 1991 with its name changed to the
current one. Since inception, IPIPL has been engaged in
manufacturing and supply of steel cable trays, power transmission
cable trays, earthling materials and accessories for power
transmission and distribution companies. The company primarily
focuses on specialty cable trays, which are designed as per the
customer's specifications and are largely order-driven. The
manufacturing facilities of IPIPL is located in Kolkata (unit-I at
Dum Dum R.N. Guha Road and Unit-II at Ganganagar, Katakhal) with an
aggregate installed capacity of 16,000 MTPA.
J P AND COMPANY: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of J P and
Company (JPC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 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 July 1, 2020, placed the
rating(s) of JPC under the 'issuer noncooperating' category as JPC
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. JPC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 17, 2021, May 27, 2021, June 6, 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).
Indore-based JPC was originally formed in 2013 as a partnership
concern by Maltani Family. However, in December, 2015, the firm was
taken over by Wadhwani Family. JPC was established with an
objective to set up a hotel in Indore (Madhya Pradesh). The hotel
will have facility of total 121 rooms includes; 89 Typical Rooms,
30 Jr. Suite rooms, 2 Suite rooms along with separate Vegetarian
and Non-Vegetarian restaurant, Gym, Swimming Pool, 3 banquet hall
and bar. JPC has envisaged that project will be completed in the
month of May, 2017 and is expected to commence its operations from
May, 2017.
KADAM AND KADAM: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kadam And
Kadam Jewellers Private Limited (KKJPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 60.00 CARE D; ISSUER NOT COOPERATING
Short Term Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 25, 2020, placed the
rating(s) of KKJPL under the 'issuer non-cooperating' category as
KKJPL 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. KKJPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 10, 2021, April 20, 2021, 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).
Kadam and Kadam Jewellers Pvt Ltd (KKJPL) was established in the
year 2000 in Mumbai by Mr. Nitin Kadam, who is also one of the
founder directors of The All India Gems & Jewellery Trade
Federation. KKJPL is in the business of manufacturing and trading
of gold/silver/diamond studded jewellery and sells them to
retailers, wholesalers and traders across India. KKJPL has recently
set up a subsidiary company named "Kadam & Kadam International
DMCC" in Dubai during FY17.
KAMESHWAR INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kameshwar
Industries (KI) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.45 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 10, 2020, placed the
rating(s) of KI under the 'issuer noncooperating' category as KI
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. KI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 26, 2021, May 6, 2021, May 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).
Kadi based (Gujarat) KI was established in June, 2013 as a
partnership firm to carry on the business of cotton ginning and
pressing. It is currently managed by 6 partners and operates from
its sole manufacturing plant situated in Kadi, Gujarat with an
annual installed capacity of 66,00,000 Kg. of cotton bales and
1,25,00,000 Kg. of cotton seeds as on March 31, 2017. Partners
purchase raw material in bulk quantity from farmers locally.
KANACHUR ISLAMIC: CARE Keeps C Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kanachur
Islamic Education Trust (KIET) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 140.00 CARE C; 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 19, 2020, placed the
rating(s) of KIET under the 'issuer non-cooperating' category as
KIET 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. KIET continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 4, 2021, April 14, 2021, and April 24, 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 2001, KIET was founded by Mr U. K. Monu along with
his family members, to set up educational institute in Mangalore.
Initially it started with a school (affiliated to CBSE board) in
the year 2001, and over the years, it has started two new
educational institutes, Kanachur PU College and Kanachur Institute
of Management Science. In the year 2016-17, the Trust started
medical college and hospital. The Trust's campus is spread across
25 acres in the outskirts of Mangalore and runs about 7 educational
institutions.
MADAN GOPAL: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Madan
Gopal Bhikam Chand Marketing Private Limited (SMGBCMPL) continues
to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 10.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 18, 2020, placed the
rating(s) of SMGBCMPL under the 'issuer non-cooperating' category
as SMGBCMPL 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. SMGBCMPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 3, 2021, April 13, 2021, April 23, 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).
Jaipur (Rajasthan) based, Sri Madan Gopal Bhikam Chand Marketing
Private Limited (SMPL) was established in 2006 as a private limited
company by Mall Family. SMPL is engaged in trading and exports of
agricultural products, such as spices, animal feeds, and herbs. It
also trades in lac, used in bangles and paints, in the domestic
market. SMPL exports to Srilanka, Bangladesh and Dubai. In domestic
market SMPL serving mainly Rajasthan and Madhya Pradesh.
MALPANI COTTONS: CARE Lowers Rating on INR14cr LT Loan to C
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Malpani cottons Private Limited (MCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 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 May 13, 2020, placed the
rating(s) of MCPL under the 'issuer non-cooperating' category as
MCPL 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. MCPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2021, April 8, 2021, and April 18, 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 assigned to the bank facilities have been revised on
account of non-availability of requisite information.
Malpani Cottons Private Limited (MCPL) was incorporated in the year
2005 by Mrs. Mohini Devi, Mr. Mukesh Malpani and Mr. Manish
Malpani. The company is engaged in trading of cotton bales and
lint. However the company also undertakes processing of Kapas to
produce cotton bales, and processing of cotton seeds to produce
cotton seed oil & cotton seed oil cake through its sister concern
Sri Siddhi Vinayak Industries. MCPL's unit is located at Adilabad,
Telangana. The key raw material, kappas is procured from local
traders/farmers while, MCPL markets its products across various
states.
MANJU AGRO: CARE Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Manju Agro
Private Limited (MAPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.50 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 May 20, 2020, placed the
ratings of MAPL under the 'issuer non-cooperating' category as MAPL
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. MAPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls dated April
5, 2021, April 15, 2021 and April 25, 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 ratings
Manju Agro Private Limited (MAPL) was incorporated on January 10,
1996 by Mr. Rajendra Kumra Daga and Mr. Ravi Daga (son of Mr.
Rajendra Kumar Daga). Since its inception, the company has been
engaged in rice milling and processing business at its plant
located in Raipur district of Chhattisgarh with aggregate installed
capacity of 43,200 metric tons per annum. The company mainly deals
with raw and parboiled rice.
NIRMAL CARS: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nirmal Cars
Private Limited (NCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 10.00 CARE B-; Stable; ISSUER NOT
COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 15, 2020, placed the
rating(s) of NCPL under the 'issuer non-cooperating' category as
NCPL 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. NCPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2021, April 10, 2021, April 20, 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.
Jaipur (Rajasthan) based Nirmal Cars Private Limited (NCPL) was
incorporated in February 2011 by Late Mr. Rajan Mehra and Mr. Sai
Giridhar. The company was engaged in the business of automobile car
dealership and has dealership of Renault India Private Limited
(RIPL) for the state of Rajasthan. NCPL has nine sales, service and
spares (3S) outlets and four showrooms across Rajasthan. The
promoters have also promoted other companies namely, Shriya
Overseas Private Limited through which they have a dealership of
Renault India Private Limited for the four regions of Rajasthan and
of Hyundai Motor India Ltd. for Udaipur region (under SOPL's
wholly-owned subsidiary Triumph Motors Pvt. Ltd.) and Khushi Cars
Private Limited (KCPL) through which they operate a showroom of
high-end Isuzu brand vehicles.
RAJALAKSHMI EDUCATIONAL: CARE Cuts Rating on INR246.36cr Loan to D
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Rajalakshmi Educational Trust (RET), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 246.36 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING
category and Revised from
CARE BB+; Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of RET
takes into account the overdraws exceeding 30 days on the Overdraft
facilities of the trust. The overdrawal was on account of RET's
tight liquidity following delays in fee collections.
Rating sensitivities
Positive Factors – Factors that could lead to positive rating
action/upgrade
* Satisfactory track record of timely servicing of debt obligations
for a period of 90 days.
* Improvement in liquidity position with sustained higher
enrollment levels and regular collection of fees.
Detailed description of the key rating drivers
Key Rating Weaknesses
Liquidity - Poor
The trust has been facing delays in fee collection, primarily
attributed to the COVID related disturbances which has affected the
liquidity position and a resultant overdrawal in the Overdraft
account for a period exceeding 30 days.
* Intermittent cash flow mismatch associated with educational
institutes: The cash flow management practice adopted by RET
assumes significance in light of the intermittent nature of cash
inflows as nearly 80% of the fee receipts are collected during the
months of June to August (in every academic year) while the trust
incurs regular stream of payments for meeting staff salary,
maintenance activities, interest expenses, term loan repayments,
etc. The intermittent cash flow mismatches faced by the trust
throughout the year are bridged by working capital facilities in
the form of overdraft facility and unsecured loans from the
trustees.
* Exposure to group companies: RET has invested a sum of Rs.24.2
crore during FY2016 in group entity Rajalakshmi Medical Education
and Research Foundation (RMEF) in a bid to acquire a Medical
College. The trust is likely to infuse additional amounts in forth
coming years of FY22 & FY23 to complete its acquisition, thereby
increasing the overall exposure to the group entities which is
likely to impose strain on the leverage and liquidity position of
the trust. Apart from this the trust also has group exposure in the
nature of loans and other advances for maintenance of hostel,
canteen and other amenities.
* Moderate-size of operations of the trust with single revenue
stream: The trust has been in operation for more than two decades
and the scale of operations continuous remain moderate with major
dependence on one institute (REC) for its revenue stream. For FY20,
REC's fee receipts contributed nearly 96% to the trust's total
income with remaining from RSA. Nevertheless, the risk is mitigated
to an extent by the favourable brand image and consistently high
student enrolment levels at REC.
* Highly regulated nature of industry: The outlook of educational
sector remains bright in light of rising population with growing
middle-class proportion, increase in income levels, and consequent
private spend on education, increase in variety of courses offered
by colleges and universities, growing emphasis of government on
developing Indian education, etc. Higher education sector is one of
the highly regulated sectors with both state and central government
regulating the industry directly and/or indirectly through various
bodies including UGC (University Grants Commission) and AICTE (All
India Council for Technical Education). The operating and financial
flexibility of the higher education sector are limited, as
regulations govern almost all aspects of operations, including fee
structure, number of seats, changes in curriculum and
infrastructure requirements.
Key Rating Strengths
* Long standing operations of the institute with established brand
name and healthy students' enrolment level: Rajalakshmi Engineering
College (REC) is the flagship institute of the Rajalakshmi group of
educational institutions. REC has been operational since 1997 in
Chennai, with affiliation to Anna University. In AY2017-18, the
college attained autonomous status from UGC. This allows the
college to formulate new courses/programmes or restructure the
existing courses/programmes, with complete administrative autonomy.
REC garners near 100% students' enrolment level every year driven
by its established brand name and track record for campus
placements. For the past five academic batches ended AY2020-21,
RECs first year students' enrolment level for UG courses have been
in the range of 90%-97%.
Rajalakshmi Educational Trust (RET) is a minority charitable trust
established in November 1995 by Dr. Thangam Meganathan, the
Chairperson & Managing Trustee. RET operates two colleges near
Chennai, Tamil Nadu - Rajalakshmi Engineering College (REC) and
Rajalakshmi School of Architecture (RSA). REC is an autonomous
institution, affiliated to Anna University, Chennai and offers
under-graduate (UG), post-graduate (PG) and doctoral (Ph.D)
programmes in the engineering domain.
RAMA POWER: CARE Lowers Rating on INR20cr LT Loan to B+
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Rama
Power & Steel Private Limited (RPSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 1, 2020, placed the
rating(s) of RPSPL under the 'issuer non-cooperating' category as
RPSPL 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. RPSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 17, 2021 & May 7, 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).
The ratings have been revised on account of non-availability of
adequate information thereby leading to uncertainty around its
credit risk.
RPSPL, incorporated in 2008, is engaged in manufacturing of MS
billets and TMT bars with an installed capacity of 15,000 MTPA and
1,20,000 MTPA respectively at its manufacturing facility in Raipur,
Chhattisgarh. The company brands its products under the brand name
of "RAMA TMT". The other major companies of the group are RUPL, is
engaged in manufacturing of sponge iron and MS Billets with
installed capacity of 60,000 MTPA and 28,800 MTPA respectively at
its manufacturing facility in Raipur, Chhattisgarh. Further it has
a waste heat recovery based power plant (WHRB) with installed
capacity of 8 MW for captive consumption. RKSK Steel India Pvt Ltd.
incorporated in 1985 is engaged in trading of MS Plate, Ingot, MS
Coil, TMT bars and structural steels product of Steel Authority of
India Ltd (SAIL), TATA Steel Ltd (TATA), and others.
RAMA UDYOG: CARE Lowers Rating on INR25cr LT Loan to B+
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Rama
Udyog Private Limited (RUPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 13, 2019, placed the
rating(s) of RUPL under the 'issuer non-cooperating' category as
RUPL 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. RUPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls dated April 17, 2021 & May
7, 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).
The ratings have been revised on account of non-availability of
adequate information thereby leading to uncertainty around its
credit risk.
RUPL was incorporated in Mar 2016 by Raipur based Rama Group to
take over the existing business of Baldev Alloys Pvt. Ltd (BAPL).
It is engaged in manufacturing of sponge iron and MS. Billet. The
manufacturing facility of RUPL is located at Raipur, Chhattisgarh.
The company brands its products under the brand name of "RAMA
TMT".
RK TRADE: CARE Lowers Rating on INR8.0cr LT Loan to C
-----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of RK
Trade Vision Private Limited (RKTVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 18, 2020, placed the
rating of RKTVPL under the 'issuer non-cooperating' category as
RKTVPL 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. RKTVPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated April
3, 2021, April 13, 2021, April 23, 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.
The rating has been revised on account of incurred operating as
well as cash losses during FY20 along with decline in total
operating income during FY20. Due diligence with the banker and
auditor could not be conducted.
RK Trade Vision Private Limited (RKTV) was incorporated during
September 2010 to initiate an agro commodity related business at
Raipur in Chhattisgarh. The area and the surrounding districts are
important agricultural and commercial areas where availability of
various types of pulses and demand of same and related products are
increasing. After incorporation, the company remained dormant for
five years and subsequently started to set up a Dal milling unit.
RKSK STEEL: CARE Lowers Rating on INR25cr LT Loan to B+
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of RKSK
Steel India Private Limited (RKSK), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 25.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 13, 2019, placed the
rating(s) of RKSK under the 'issuer non-cooperating' category as
RKSK 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. RKSK continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 14, 2021 & May 7, 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).
The ratings have been revised on account of non-availability of
adequate information thereby leading to uncertainty around its
credit risk.
RKSK Steel India Pvt Ltd. incorporated in 1985 belongs to Rama
Group of Raipur, Chhatisgarh and is engaged in trading of MS Plate,
Ingot, MS Coil, TMT bars and structural steels product of Steel
Authority of India Ltd (SAIL), TATA Steel Ltd (TATA), and others.
SHRIYA OVERSEAS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shriya
Overseas Private Limited (SOPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.10 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 12.50 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 May 15, 2020, placed the
rating(s) of SOPL under the 'issuer non-cooperating' category as
SOPL 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. SOPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2021, April 10, 2021, April 20, 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).
Shriya Overseas Private Limited (SOPL) was incorporated in May 1991
by Mr. P. K. Jain and Mr. Bhagat Ram Goyal having its registered
office in Delhi. In 1997, there was a change in promoters with Late
Mr. Rajan Mehra and his family taking over the management of the
company. SOPL had started dealership of General Motors India
Private Limited (GM) for their 'Chevrolet' brand of cars in October
2003. However, in May, 2017 General Motors decided to close its
operations in India. Subsequently, SOPL under its subsidiary i.e.
Triumph Motors Pvt. Ltd has been awarded dealership of Hyundai
Motor India Ltd. for Udaipur in August, 2017. Further, SOPL was
awarded dealership of Renault India Pvt. Ltd., under which the
company operates three 3S outlets out of which two are at Jaipur,
one at Dausa, and further operates 1S(Showrooms) outlets at Dholpur
and Bharatpur each. SOPL was also awarded for the dealership of
Suzuki Motorcycle India Private limited for Jaipur, Dausa, Kota,
Chaksu, and Chomu. The promoters also have other companies namely,
Nirmal Cars India Private Limited through which they had dealership
of Renault India Private Limited for the selected regions of
Rajasthan and Khushi Cars Private Limited (KCPL) through which they
operate a showroom of highend Isuzu brand vehicles.
SULABH PHARMACEUTICAL: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sulabh
Pharmaceutical Private Limited (SPPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 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 May 26, 2020, placed the
rating(s) of SPPL under the 'issuer non-cooperating' category as
SPPL 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. SPPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 11, 2021, April 21, 2021, May 1, 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).
Established in March 2012, Sulabh Pharmaceutical Pvt Ltd. is
promoted by Mr. Pravinkumar N. Prajapati and Mrs. Anita P.
Prajapati. SPPL is a distributor of pharmaceuticals products
especially in the western region of Mumbai covering areas up to
Mira Road. Furthermore, SPPL manufactures pharmaceutical products
(manufacturing contributes to 5% of the business operations) under
its brand name on loan and license basis (outsourced) from units
situated in Baddi, Himachal Pradesh and distributes the same to
various stockists in Mumbai. The entity has tie-up with more than
500 major retailers in the entire Mumbai City. On December 31,
2016, the promoters have merged its group entity Jayesh
Distributors (JD) which was into existence since 1997 and engaged
in wholesale trading of pharmaceutical products of well-known FMCG
firms/companies namely Godrej, Emami, Medimix, Fog, DABUR, HUL &
Procter & Gamble. SPPL has three warehouses spread around 6000 sq.
ft. (3000 sq. ft. per floor) situated in Bhiwandi, Thane District,
Maharashtra.
SWASTIK GINNING: CARE Lowers Rating on INR7cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Swastik Ginning and Pressing Industries (SGPI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 21, 2020, placed the
rating(s) of SGPI under the 'issuer non-cooperating' category as
SGPI 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. SGPI continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated April 6,
2021, April 16, 2021, April 26, 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 rating assigned to the bank facilities of SGPI have been
revised on account of non-availability of requisite information.
Yavatmal (Maharashtra) based SGPI was established as a partnership
concern in the year 2008. The entity is engaged in the business of
cotton ginning and pressing at its manufacturing facility located
at Yavatmal, Maharashtra, having an installed capacity to gin and
press 30,000 bales per annum. SGPI procures raw material i.e. raw
cotton from the local farmers based out in Yavatmal district. SGPI
operates for 5-6 months in a year based on the availability of raw
material during the season. The firm supplies the finished
products to spinning mills and oil mills located PAN India.
THREE C HOMES: NCLAT Sets Aside Liquidation Order on Lotus City
---------------------------------------------------------------
VCCircle reports that a higher appellate tribunal has set aside a
liquidation order passed by the National Company Law Tribunal
(NCLT) against Lotus City, a stuck residential project developed by
realtor Three C Homes Pvt Ltd (3C).
According to VCCircle, the Delhi-NCR-based real estate developer
once sought after by multiple private equity investors, was headed
for liquidation following an NCLT order earlier this year.
After 3C Homes went into bankruptcy in September 2019 on a plea by
a homebuyer, one resolution applicant Ace Infrastructure submitted
a resolution plan which was approved with 62.9% voting share.
VCCircle relates that the bankruptcy tribunal had rejected a
resolution offer of INR95 crore by Ace Infrastructure over a period
of two years as it was less than 20% of the liquidation value of
INR480.70 crore.
Under the plan, farmers were to forgo their claim of INR71.66 crore
in exchange of the Ace Infrastructure's promise to spend a sum of
INR15 crore towards the development of village Salarpur, which the
court termed as amateurish.
However, Ajay Chaudhary, MD, Ace Group and Lotus City Plot Buyers
Welfare Association had challenged the liquidation.
VCCircle says the Lotus City Plot Buyers Welfare Association,
represented by advocate Piyush Singh of PSP Legal among others,
contested that the NCLT did not include INR211 crore i.e. the
quantum of debt due to allottees, as per an Economic Times report.
It also did not include discounts of INR8.18 crore along with
INR38.75 crore waived off in satisfaction of interest due to the
allottees and additional INR50.70 crore agreed by Ace
Infrastructure to pay to the ex-management of 3C Homes, the report
said.
It further quoted the NCLAT order stating, "While the resolution
plan will generally provide a higher value than the liquidation
value but in case of real estate project may not be always feasible
and homebuyers are in dire need of getting their homes at the
earliest, VCCircle relays.
However, in this case certain reconciliation are required that what
is the actual realisable value which the homebuyers are getting
whether it is below liquidation value or above it."
Liquidation is the last resort and this programme of homebuyers
needs some calibration and proper evaluation, the court, as cited
by VCCircle, added.
There is also a need for Yamuna Expressway Industrial Development
Authority (YEIDA) to ascertain status of dispute with farmers and
its consequential impact, if any, VCCircle states.
The admitted claims of the homebuyers (financial creditors) stood
at INR118 crore of the claimed INR128 crore, VCCircle discloses.
ULTRA ALLUMINIUM: CARE Lowers Rating on INR8.30cr LT Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ultra Alluminium Private Limited (UAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.30 CARE C; ISSUER NOT COOPERATING
Facilities 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 May 18, 2020, placed the
rating of UAPL under the 'issuer non-cooperating' category as UAPL
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. UAPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated April
3, 2021, April 13, 2021, April 23, 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.
The rating has been revised on account of incurred cash losses
during FY20 audited. Further, due diligence with the banker and
auditor could not be conducted.
Ultra Alluminium Private Limited (UAPL) was incorporated in
September, 2009 and currently it is managed by Mr. Jaya Dayal Kedia
and Mr. Prem Dayal Kedia. Since its incorporation the company has
been engaged in the business of manufacturing of aluminium products
like angles, channels, shafts, extrusions etc. The manufacturing
plant of the company is located at Raipur, Chhattisgarh with an
installed capacity of 4,000 metric ton per annum.
UTKAL METALLICS: CARE Lowers Rating on INR7.30cr LT Loan to B-
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Utkal Metallics Limited (UML), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.30 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 0.40 CARE A4; 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 27, 2020, placed the
ratings of UML under the 'issuer noncooperating' category as UML
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. UML continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls dated April 12, 2021,
April 22, 2021 and May 2, 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 ratings.
The ratings have been revised on account of non-availability of
adequate information thereby leading to uncertainty around its
credit risk.
Incorporated in January 2003, Utkal Metallics Limited (UML) was
promoted by Mr. Manjit Singh Panesar, Mr. Sarabjit Singh Panesar,
Mr. Bipin Kumar Gupta, Mr. Ram Kumar Agarwal, and Mr. Hardeep Singh
to set up a manufacturing plant for sponge iron. The company has
started its commercial operations from November 2003 onwards and it
has been engaged in manufacturing of sponge iron at its plant
located at Rourkela, Odisha with aggregate installed capacity of
24000 metric tons per annum.
VADERA TRADELINK: CARE Lowers Rating on INR12cr LT Loan to B-
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vadera Tradelink Private Limited (VTPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Short Term Bank 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated May 19, 2020, had placed the
ratings of VTPL 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. VTPL continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated April 4, 2021, April 14, 2021
and April 24, 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 VTPL have been
revised on account of non-availability of requisite information.
Barmer-based (Rajasthan) Vadera Tradelink Private Limited (VTPL)
was incorporated in 2008 as a private limited company by Mr Bhoor
Chand Jain along with other family members. The company has
diversified business structure ranges in being a registered 'AA'
class (highest in the scale of AA to E) contractor with Public
Works Department, Rajasthan (PWD) to trading of plastic goods,
paper goods and agricultural produces. It also provides the cold
storage facility having collaboration with Rajasthan University
having a capacity of 4000 metric tonne.
VAIBHAV COTEX: CARE Lowers Rating on INR10.70cr LT Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vaibhav Cotex Private Limited (VCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.70 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 21, 2020, had placed the
ratings of VCPL 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. VCPL continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated April 6, 2021, April 16, 2021
and April 26, 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 VCPL have been
revised on account of non-availability of requisite information.
Incorporated in 2008, VCPL is engaged in ginning and pressing of
cotton and extraction of oil from cotton seeds. The ginning and
pressing unit and oil extraction unit is located at Yavatmal,
Maharashtra with an installed Capacity of processing 42,000 cotton
bales per annum and to extract 1,40, 000 quintals of oil per
annum.
VAIBHAV COTGIN: CARE Lowers Rating on INR13.50cr LT Loan to B
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vaibhav Cotgin Private Limited (VCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.50 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 21, 2020, had placed the
ratings of VCPL 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. VCPL continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated April 6, 2021, April 16, 2021
and April 26, 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 VCPL have been
revised on account of non-availability of requisite information.
VCPL was incorporated as a private limited company in May, 2016.
The company is engaged in ginning and pressing of cotton and
extraction of oil from cotton seed. The ginning and pressing unit
and oil extraction unit is located at Chandrapur, Maharashtra. The
company has an installed capacity to gin and press 2,25,000
quintals of cotton and to extract 1,00,000 lakh liters of oil per
annum. VCPL procures raw material i.e. raw cotton from the local
farmers and sell its final product i.e. cotton bales and cotton oil
through brokers and agents across Maharashtra and other parts of
India.
VIDEOCON GROUP: NCLAT Stays Vedanta-led Twin Star Tech's Takeover
-----------------------------------------------------------------
CNBC-TV18.com reports that the National Company Law Appellate
Tribunal (NCLAT) on July 19 stayed the implementation of the
resolution plan for Videocon Group companies which was earlier
approved by a lower court, based on an appeal by two dissenting
creditors.
CNBC-TV18.com relates that the tribunal stayed the resolution plan
after two dissenting creditors - Bank of Maharashtra and IFCI-
raised concerns about the low value ascribed to the company, and
pointed out to the NCLT order to show a "breach of confidentiality
clause with regard to the liquidation value", highlighting how the
resolution plan value and liquidation value were "surprisingly very
close."
According to the report, the National Company Law Tribunal (NCLT)
on June 8 had approved Vedanta Group’s Twin Star Technologies’
resolution plan for 13 Videocon Group companies under the
Insolvency and Bankruptcy Code at close to the liquidation value.
Twin Star's plan entailed a repayment of only INR2,962.02 crore or
4.15 percent of the total admitted claim amount of INR64,838.63
crore, with the total haircut for creditors at 95.85 percent,
CNBC-TV18.com discloses. According to the valuation reports of the
company, the fair value of the group companies was INR4,069.95
crore, and the liquidation value was INR2,568.13 crore.
CNBC-TV18.com relates that the resolution plan proposed to pay the
assenting secured financial creditors INR2,779.05 crore against
their admitted claims of INR56,215.66 crore, leading to a paltry
4.89 percent recovery. The secured dissenting financial creditors
with INR2,306.63 crore of admitted claims were proposed to be paid
INR105.23 crore, translating to a 4.56 percent recovery.
Of this, financial creditors would be paid only INR200 crore
upfront, INR2,700 crore in the forms of NCD's (carrying a coupon of
6.65 percent), available cash balances, and 8 percent equity
shares.
The assenting unsecured financial creditors were proposed to be
paid INR15.72 crore against their admitted claims of INR2,523.63
crore (0.62 percent recovery), and dissenting unsecured financial
creditors were to be paid nothing against their admitted claims of
INR727.09 crore, CNBC-TV18.com says.
NCLAT has now stayed the implementation of the resolution plan for
Videocon until the next hearing on September 7 and ordered the
resolution professional to continue running the operations of the
companies, according to CNBC-TV18.com.
At the time of approving the resolution plan, NCLT had observed
that the successful resolution applicant was "paying almost
nothing" to acquire the companies.
Further, it is also observed that by just paying only INR262 crore
(8.84 percent of total plan value) (Cash balance available with the
corporate debtors is approximately INR200 crore), the successful
resolution applicant will get possession of all the 13 corporate
debtors to run these units and the first payment of INR200 crore as
part redemption amount of NCDs will be paid within 25 months from
the closing date and the balance amount of INR6,25,00,00,000/- each
is spread over in four installments starting from the 3rd year
onwards up to the sixth year from the closing date and the interest
rate for the NCDs is also a nominal of only 6.65 % P.A. payable
annually. It may also be noted that at the time of granting loan,
restructuring, approving the resolution plan with such a huge hair
cut also the financial institutions, the committee of creditors
consisting of 35 members exercised their commercial wisdom. Since
this is the commercial Wisdom of the COC and as per the various
judgments of the Supreme Court and by following the judicial
precedents, discipline the Adjudicating Authority approves the
resolution plan of the successful resolution applicant with a
suggestion," NCLT had said.
The 13 Videocon group companies include Videocon Industries,
Videocon Telecommunications, Electroworld Digital Solutions, Value
Industries, Evans Fraser & Co, CE India, Millennium Appliances
(India), SKY Appliances, PE Electronics, Techno Electronics,
Applicomp India, Techno Kart India and Century Appliances.
SBI, IDBI Bank, Union Bank of India, Central Bank of India, Bank of
Baroda, ICICI Bank, PNB, Indian Bank, EXIM Bank, Bank of India,
Canara Bank, IOB are among key lenders to the Videocon Group.
About Videocon Industries
Videocon Industries sells consumer products like color televisions,
washing machines, air conditioners, refrigerators, microwave ovens
and many other home appliances in India.
Videocon was among the first 12 companies pushed into bankruptcy
after directions from the Reserve Bank of India in 2017.
On June 6, 2018, National Company Law Tribunal (NCLT), Mumbai
bench, admitted a petition for initiating insolvency resolution
process against the company under the Insolvency and Bankruptcy
Code, 2016.
The company's total debt stood at over INR635 billion in 2019,
Business Standard discloses citing bankruptcy case related
disclosures on the company's website.
=================
I N D O N E S I A
=================
ABM INVESTAMA: Fitch Assigns B+ Rating on Proposed USD Notes
------------------------------------------------------------
Fitch Ratings has assigned a rating of 'B+' with a Recovery Rating
of 'RR4' to Indonesia-based PT ABM Investama Tbk's (B+/Stable)
proposed US dollar notes. The proposed notes are rated at the same
level as ABM's Issuer Default Rating, as they constitute its
direct, unsubordinated and unsecured obligations. ABM plans to use
the proceeds from the proposed notes to primarily repay its only US
dollar note of USD350 million.
ABM's rating reflects its position as an integrated coal producer.
Its coal-contracting business and coal mines, which together
account for more than 65% of EBITDA, benefit from synergies with
and diversification from its logistics and engineering arms.
Fitch expects further volume growth after a strong improvement in
ABM's coal contracting business in the past year, led by new
contracts and a ramp-up in production by existing customers
following a decline in 2020. This will support operating cash flow
and partly offset the deterioration in the mining segment's
profitability. Fitch expects ABM's leverage to improve modestly and
remain adequate for the rating over the next three years, excluding
any acquisitions.
KEY RATING DRIVERS
Improved Contracting Volume: Fitch expects the overburden (OB)
removal volume at PT Cipta Kridatama (CK), ABM's coal-contracting
subsidiary, to rise to about 200 million bank cubic metres (mbcm)
in the next three-to-four years. CK recorded 140mbcm in OB volume
in 2020, higher than Fitch's expectation and similar to 2018 before
CK lost its key customer, Toba Bara, in early 2019. CK's new
contracts are signed for the mines' life, providing better
long-term volume visibility and lower renewal risk than its earlier
short-term contracts.
Weakening Coal Mining Profitability: Fitch expects the mining
segment's profitability (EBITDA/tonne) over the medium term to
decline by almost half from around USD8 in 2021 due to lower
production volume at ABM's PT Tunas Indi Abadi (TIA) mine. ABM's
other mines - PT MIFA Bersaudara and PT Bara Energi Lestari (BEL) -
produce lower calorific value coal, resulting in lower
profitability. Fitch expects production volume to rise to about 15
million tonnes (MT) in the next two-to-three years (1Q21: 3.6MT,
2020: 12MT), with higher volume at MIFA and BEL offsetting TIA's
decline.
Acquisition an Event Risk: ABM plans to acquire a coal mine to
improve the profile of its coal mining portfolio and replenish the
depleting coal reserves at its key mine, TIA, but has not yet
finalised any deal. TIA has only a three-year reserve life at 2020
production levels of 3.4MT. Fitch has not factored in any
acquisitions in Fitch's assessment and will treat them as an event
risk. MIFA and BEL had coal reserves of about 203MT and 32MT,
respectively, as of end-2020.
Stronger Cash Flow: Fitch expects higher coal contracting volume to
improve ABM's operating cash flow, despite weaker profit from the
coal mining segment, based on Fitch's coal-price assumptions. Fitch
forecasts ABM's EBITDAR will range between USD220 million-260
million (1Q21: around USD76 million) over the next three years
after deteriorating to around USD130 million over the past two
years.
Moderate Capex, Improving Credit Metrics: Fitch expects average
annual capex of about USD75 million (2020: USD71 million) over the
next four years. The capex will mainly be for CK's maintenance and
capacity expansion. The moderate capex and stronger operating cash
flow will help funds from operations (FFO) adjusted net leverage
improve to and remain below 2.0x (2020: 2.9x) over the next three
years. However, rising operating lease expense, part of ABM's
asset-light strategy, will constrain average FFO fixed-charge
coverage to 3.0x (2020: 2.2x).
Integrated Business Model: ABM benefits from an integrated business
model, with four businesses across the value chain. These
businesses - coal mining contracting, coal mining, logistics and
engineering - create synergies and enable ABM to offer services
across the value chain.
Affiliate Relationships: ABM benefits from relationships with
affiliated companies, including PT Trakindo Utama, a long-term
distributor of Caterpillar Inc. (A/Stable), which provides most of
the equipment, spare parts and servicing for ABM's coal contracting
business. Trakindo is also an important customer of ABM's logistics
and engineering businesses.
Exposure to Cyclical Coal Industry: ABM is vulnerable to the
commodity cycle, as around 80% of its EBITDA and cash flow is
derived from the coal industry. This risk is mitigated by its
integrated business model.
DERIVATION SUMMARY
ABM's closest peer is PT Bukit Makmur Mandiri Utama (BUMA,
BB-/Negative). ABM benefits from diversification across business
segments and a stronger financial profile, but its core contracting
business is weaker than BUMA's, justifying a notch of difference in
its credit assessment, in Fitch's view. BUMA has higher market
share and a better customer base. It is Indonesia's second-largest
mining contractor, with annual OB volume that is almost twice that
of ABM. The Negative Outlook on BUMA's rating reflects its low
rating headroom, as Fitch expects its credit metrics to remain
close to its negative sensitivities.
ABM can be compared with coal mining peer PT Golden Energy Mines
Tbk (B+/Stable), which Fitch assesses based on the consolidated
credit profile of parent Golden Energy and Resources Limited (GEAR,
B+/Stable). GEAR has a longer reserve life, higher operational
flexibility and a lower cost position than ABM, but ABM benefits
from a portfolio of diversified businesses.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Newcastle coal price in line with Fitch's price deck - 2021:
USD81/tonne; 2022: USD70/tonne, 2023: USD68/tonne and 2024:
USD66/tonne. ABM's coal prices are adjusted for calorific
value;
-- OB volume to increase by 23% to around 170mbcm in 2021
followed by average annual increase of 3% for the next three
years;
-- Coal mining sales volume to increase by 15% in 2021 and about
8% in 2022, and declining thereafter;
-- Cumulative capex of around USD300 million in 2021-2024.
Key Recovery Rating Assumptions:
-- The recovery analysis assumes that ABM would be reorganised as
a going-concern (GC) in bankruptcy rather than liquidated.
-- Fitch has assumed a 10% administrative claim.
-- Fitch has assumed ABM's 2021-2024 EBITDA (average of
USD157million) after a haircut of 15% as its GC cash operating
profit. The GC EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganisation EBITDA level upon which Fitch
bases the enterprise valuation.
-- An enterprise value/EBITDA multiple of 3.0x is applied to the
GC EBITDA to calculate a post-reorganisation enterprise value.
Fitch uses a multiple of 3.5x for BUMA; hence, a 3x multiple
for ABM is justified.
-- In the distribution waterfall, Fitch has considered USD40
million of a short-term loan that was outstanding at end-2020.
The assumptions result in a recovery rate corresponding to a
Recovery Rating of 'RR1'. However, ABM operates in Indonesia, which
Fitch classifies as under Group D of jurisdictions; as a result,
the Recovery Rating for ABM's senior debt is capped at 'RR4'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- An upgrade is unlikely over the short term, although a
material improvement in ABM's coal contracting or mining
business, while maintaining an appropriate financial profile
in relation to the business profile, may lead to an upgrade.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in the company's core operating segment,
including failure in retaining major customers;
-- Cash flow generation falling short of Fitch's expectations,
leading to a sustained deterioration in credit metrics,
including FFO adjusted net leverage above 3.0x and FFO fixed
charge cover below 2.0x.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Refinancing Due in 2022: ABM had cash and cash equivalents of
around USD117 million as of end-March 2021, against outstanding
short-term debt of USD40 million. The company's short-term
liquidity is supported by a total of USD95 million of undrawn
amounts under its committed revolving facility and a working
capital loan it entered during 1H21 with a 12-month maturity. ABM's
proposed US dollar notes, if successful, will address its only
material debt maturity, the outstanding amount on its USD350
million note in 2022, as Fitch believes it will have insufficient
internal cash flow to cover the repayment.
ABM's refinancing pressure has lessened after two local banks
agreed to extend a long-term facility of up to USD200 million that
can be utilised to refinance existing US dollar notes. However, the
facility's finalisation is subject to certain conditions, including
the issuance of new US dollar notes of at least USD200 million. The
company says it has received a waiver for breaching a covenant on
one of its working capital loans in FY20 and at end-March 2021.
ISSUER PROFILE
ABM is an Indonesian integrated company with businesses spanning
coal mining, mining contracting, and logistics, engineering and
fuel services. ABM is majority-owned and controlled by the Hamami
family, with about 21% of its shares listed on the Jakarta Stock
Exchange.
CRITERIA VARIATION
Fitch applied a variation under Fitch's Corporate Rating Criteria
by using multiple-based lease-adjusted credit metrics to assess
ABM's rating, instead of unadjusted ratios as defined in the
criteria, to better reflect ABM's financial profile, given its
strategy of using operating leases for its core assets in its
mining contracting business.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
ABM INVESTAMA: Moody's Rates New USD Unsecured Notes 'B1'
---------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the proposed
US dollar senior unsecured notes to be issued ABM Investama Tbk
(P.T.) (B1 ratings under review). In connection with Moody's
ongoing review of ABM's ratings, the B1 rating assigned has also
been placed on review for downgrade.
ABM plans to use the net proceeds from the proposed notes to fund
its tender offer to fully redeem its $350 million outstanding
senior notes due on August 1, 2022.
"The ratings remain on review for downgrade as ABM's ability to
raise enough funds to eliminate near-term refinancing risk remains
uncertain as the planned issuance is still subject to market
conditions and investor appetite," says Maisam Hasnain, a Moody's
Assistant Vice President and Analyst.
RATINGS RATIONALE
On July 21, 2021, ABM announced plans to issue new senior unsecured
notes and a tender offer to purchase its existing 2022 notes at
101.781% of par value.
"Proceeds from the proposed notes issuance are essential for ABM to
alleviate the refinancing risk associated with its large near-term
debt maturity," adds Hasnain, who is also Moody's lead analyst for
ABM.
This is because ABM's internal cash balance of around $117 million
as of March 2021 and projected cash from operations will be
insufficient to meet its cash needs over the next 12-15 months,
including its $350 million notes maturity next August.
Pursuant to an indicative term sheet, Bank Mandiri (Persero) Tbk
(P.T.) (Baa2 stable) and Bank Negara Indonesia (Persero) Tbk (P.T.)
(Baa2 stable) have agreed to extend up to $200 million in new loans
to ABM, of which up to $150 million are earmarked for the partial
refinancing of its existing notes (Tranche A), and up to $50
million are for capital spending (Tranche B). However, definitive
agreements are yet to be signed and the loans are subject to
certain conditions, which include ABM's ability to raise at least
$200 million in new notes.
The proposed notes are currently rated in line with ABM's B1
corporate family rating (CFR), as Moody's expects unsecured debt to
constitute a majority of ABM's total debt over the next 12-18
months.
Tranche B, which will be secured against operating assets, Tranche
A of ABM's new loans will only be secured against a debt service
reserve account and a debt service accrual account. However, in an
event of default, to the extent that Tranche A's outstanding loan
balance exceeds the balance of these two accounts, the residual
Tranche A loan will rank pari passu with the company's senior
unsecured debt including the proposed notes.
The proposed notes are also guaranteed by most of ABM's operating
subsidiaries. While its 70%-owned subsidiary PT Media Djaya Bersama
(MDB), which owns ABM's coal mining operations in the Aceh
province, is not a guarantor of the proposed notes, Moody's expects
MDB to continue operating with no external debt, thus mitigating
subordination risk for ABM's noteholders.
As per its March 2021 financial statements, ABM had around $130
million undrawn under working capital facilities. These facilities
could help meet a temporary liquidity shortfall but would not
alleviate refinancing risk, because the drawn-down portion of the
facilities will be due in 12 months. ABM is also reliant on a
covenant waiver on one of these facilities -- its $50 million
working capital facility with Bank Mandiri, of which $5 million has
been drawn as of March 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could confirm the ratings if ABM fully addresses its US
dollar notes maturity while maintaining enough internal cash
sources to meet its cash needs over the next 12-18 months.
Moody's could downgrade the rating by at least two notches if ABM
is unable to raise sufficient funds with the proposed US dollar
notes to eliminate the refinancing risk associated with its
existing notes at least 12 months ahead of their scheduled
maturity.
The principal methodology used in this rating was Mining published
in September 2018.
Listed on the Indonesian Stock Exchange since 2011, ABM Investama
Tbk (P.T.) is an integrated energy company with investments in coal
mining, mining services, engineering and logistics, and power
generation.
The Hamami family controls 79% of ABM through PT Tiara Marga
Trakindo (23%) and Valle Verde PTE LTD (56%). The remaining shares
are held by the public.
=================
S I N G A P O R E
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ELLIPZ LIGHTING: Creditors' Meetings Set for July 29
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Ellipz Lighting Pte Ltd, which is in compulsory liquidation, will
hold a meeting for its creditors on July 29, 2021, at 3:00 p.m.,
via via video-conference and/or tele-conference.
Agenda of the meeting includes:
a. to update on the liquidation administration;
b. to approve the final professional fees and liquidation
expenses;
c. to approve the Liquidator’s application to Court for
release
& discharge; and
d. any other matters.
The company's liquidator is Lim Loo Khoon.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
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