/raid1/www/Hosts/bankrupt/TCRAP_Public/210812.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
Thursday, August 12, 2021, Vol. 24, No. 155
Headlines
A U S T R A L I A
CCNA PTY: Second Creditors' Meeting Set for Aug. 18
CHAPEL OF ANGELS: First Creditors' Meeting Set for Aug. 18
CORONADO GLOBAL: S&P Alters Outlook to Stable & Affirms 'B-' ICR
GREENSILL CAPITAL: Credit Suisse to Pay Investors $400MM More
KINNEALLY ENTERPRISES: First Creditors' Meeting Set for Aug. 20
KYJACT PTY: Second Creditors' Meeting Set for Aug. 19
REDZED TRUST 2021-2: Moody's Assigns B1 Rating to AUD3MM F Notes
C H I N A
CHINA EVERGRANDE: NEV Business Expects Losses to Almost Double
I N D I A
AGNIBINA RICE: CARE Keeps D Debt Ratings in Not Cooperating
AISHWARYA CHICKEN: CRISIL Lowers Rating on INR10.50cr Loan to D
AISHWARYA FEEDS: CRISIL Lowers Rating on INR30cr Cash Loan to D
APOLLO SOYUZ: Insolvency Resolution Process Case Summary
BARTRONICS GLOBAL: Insolvency Resolution Process Case Summary
BHARAT UDYOG: CRISIL Moves B+ Debt Rating from Not Cooperating
CHAMPION OM: CRISIL Hikes Rating on INR14.75cr Loans to B
CHETAN OVERSEAS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
DEVANS MODERN: CRISIL Withdraws D Rating on INR119cr Loans
ERAM MOTORS: CRISIL Withdraws B Rating on INR15cr Cash Loan
GAMMON ENGINEERS: Insolvency Resolution Process Case Summary
HANS RAJ: CRISIL Withdraws B+ Rating on INR19cr Cash Loan
HMP HOTELS: CRISIL Assigns B- Rating to INR6.0cr Loans
INNOVATIVE TYRES: CRISIL Lowers Rating on INR15cr Loan to D
INTEGRATED WEAVING: CRISIL Reaffirms B+ Rating on INR15cr Loans
JAI MATADI: CRISIL Withdraws B+ Rating on INR4.75cr Cash Loan
JYOTI CHANDRASHEKHAR: CARE Withdraws D Rating on Bank Facilities
MAHARASHTRA AGRO: Insolvency Resolution Process Case Summary
MOHAN MOTOR: Insolvency Resolution Process Case Summary
MUSKAN OVERSEAS: CRISIL Withdraws B Rating on INR30cr Loans
PMT MACHINES: CARE Keeps D Debt Ratings in Not Cooperating
PRANSHI SMALL: CRISIL Assigns B Rating to INR27cr LT Loan
PRIYADHAR INTL: CRISIL Lowers Rating on INR1.7cr Cash Loan to D
R. P. STEEL: CARE Keeps D Debt Ratings in Not Cooperating
R.A. MOTORS: CRISIL Withdraws D Rating on INR7.5cr Cash Loan
RAMA KRISHNA: CARE Keeps D Debt Rating in Not Cooperating
SALASAR AUTOCRAFTS: CARE Keeps C Debt Rating in Not Cooperating
SARAIGHAT AGRO: CRISIL Assigns B+ Rating to INR15.8cr Loans
SIMOLA TILES: CRISIL Assigns B Rating to INR38cr Term Loan
SIVA ENGINEERING: CRISIL Reaffirms B+ Rating on INR17cr Loan
STERLING BIOTECH: Liquidator Seeks Bids for Co. as a Going Concern
SUPER-TECH PLASTPACK: CRISIL Withdraws B Rating on INR4.9cr Loan
SURYA PANEL: CRISIL Lowers Rating on INR21cr Loans to D
THRIMATHY CONTRACTING: CRISIL Cuts Rating on INR10cr Loan to D
UNITED COTTON: CARE Keeps D Debt Rating in Not Cooperating
UTTAM GALVA: Ind-Ra Affirms 'D' Long-Term Issuer Rating
VAIBHAVA LAKSHMI: CRISIL Withdraws C Rating on INR20cr Loans
VIRGINIA DEVELOPERS: CRISIL Lowers Rating on INR220cr Loan to D
VODAFONE IDEA: Files Review Petition in Apex Court on AGR Dues
WILLIAM INDUSTRIES: CRISIL Cuts Rating on INR7.0cr Loan to D
WINDALS AUTO: Insolvency Resolution Process Case Summary
J A P A N
[*] JAPAN: Corporate Bankruptcies Drops to 50-Year Low
N E W Z E A L A N D
AGWARE LIMITED: Placed in Liquidation Over Inability to Pay Debt
S I N G A P O R E
KITCHEN CULTURE: Unit Sues Former CEO Over Payroll Irregularities
NTEGRATOR INT'L: Receives Statutory Demand for Unpaid Fees
ЕТK TRADING: Court to Hear Wind-Up Petition on Aug. 27
- - - - -
=================
A U S T R A L I A
=================
CCNA PTY: Second Creditors' Meeting Set for Aug. 18
---------------------------------------------------
A second meeting of creditors in the proceedings of CCNA Pty Ltd,
trading as Compatible Care Nursing Services & Compatible Care
Nursing Agency, has been set for Aug. 18, 2021, at 1:30 p.m. via
teleconference facilities only.
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. 17, 2021, at 5:00 p.m.
Domenico Calabretta and Mitchell Ball of Mackay Goodwin were
appointed as administrators of CCNA Pty on July 14, 2021.
CHAPEL OF ANGELS: First Creditors' Meeting Set for Aug. 18
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Chapel of
Angels Pty Ltd, trading as The Falls Wedding Chapel Montville, will
be held on Aug. 18, 2021, at 11:00 a.m. via teleconferencing
facilities only.
Liam Bailey of O'Brien Palmer was appointed as administrator of
Chapel of Angels on Aug. 9, 2021.
CORONADO GLOBAL: S&P Alters Outlook to Stable & Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Australia-based coal
company Coronado Global Resources Inc. to stable from negative. At
the same time, S&P affirmed the 'B-' long-term issuer credit rating
on Coronado and the 'B' long-term issue rating on the guaranteed
senior secured notes due 2026.
The stable outlook reflects its view that Coronado will continue
building a liquidity buffer as met coal prices remain elevated.
Strong met coal pricing conditions support the recovery of
Coronado's earnings and cash flow generation in fiscal 2021 (ending
Dec. 31, 2021). Ongoing global industrial demand recovery and coal
supply tightness with China's import ban on Australian coal has led
to a surge in met coal price since the second quarter, with recent
premium low volume Australia benchmark prices over US$215/t. Strong
prices, coupled with normalizing production in Australia and the
U.S. should help the company's revenue recover meaningfully in the
second half of 2021, with potential upside into 2022 should the
current pricing level sustain. As its operating cash flow is highly
sensitive to pricing changes, S&P anticipates that favorable
pricing and efficiency initiatives could support US$90 million to
US$110 million of free cash inflow in fiscal 2021. Coronado's
leverage ratio, as measured by adjusted debt to EBITDA, could
therefore deleverage to about 2x in 2021 from 8.9x in 2020.
S&P said, "We see abated liquidity risks for Coronado in 2021-2022
with recent recapitalization. Coronado raised a total US$550
million via senior secured notes, asset-based loan facility, and
equity in May 2021. Repayment of its US$324 million drawn
syndicated facilities removed previous covenant pressures and
relieved liquidity challenges. We expect the company's capital
expenditure (capex) to tick up moderately to US$130 million-US$150
million in 2021 from just under US$120 million in 2020. However,
the spending should be well covered by cash generated from coal
sales, with the rest used to repair the company's financial
position. Coronado is also exploring the monetization of some
noncore assets. We view these measures as potentially supportive to
liquidity, but execution uncertainties remain. We have not factored
in any dividend distribution or large-scale acquisitions in our
base case for the next two years, and expect the company to remain
largely conservative regarding capital deployment, as the
sustainability of elevated pricing remains uncertain.
"We forecast coal price momentum to retreat starting 2022 and
Coronado's leverage to rise as a result. While we do not see an
immediate reversal of current uptrend in met coal price, our price
deck assumes the benchmark price to normalize at US$140/t in
2022-2023 as global growth normalizes and supply tightness
gradually alleviates. At that level, we forecast Coronado's annual
adjusted EBITDA to weaken, driven by its higher operating costs at
Curragh. As such, we forecast the company's adjusted debt to EBITDA
to increase to about 3x-4x in fiscal 2022.
"The stable outlook reflects our view that the company will use
elevated met coal prices to build a liquidity buffer. This should
allow management some operational flexibility if the external
operating environment were to deteriorate. We expect the company
will maintain its financial discipline while repairing its balance
sheet."
S&P could lower the rating on Coronado if:
-- Its operating performance deteriorates, which leads to material
negative free cash flows, likely due to a sharp reversal of the
coal price trend; or
-- The company is more aggressive in capital deployment than we
forecast, such as higher capex, considerable dividend distribution,
or large-scale debt-funded acquisition, eroding sources of
liquidity.
Rating upside is reliant on a commitment to conservative financial
policies, ample liquidity to comfortably withstand episodes of
sustained low prices, and sustainable free cash flow generation.
This would likely require a commitment to adjusted debt to EBITDA
less than 2.0x through the cycle.
GREENSILL CAPITAL: Credit Suisse to Pay Investors $400MM More
-------------------------------------------------------------
Law360 reports that Credit Suisse Group AG said on Friday, Aug. 6,
2021, that it will pay out $400 million to investors by Aug. 10,
2021 in its latest installment of refunds to clients who poured $10
billion into four supply-chain finance funds that were linked to
troubled Greensill Capital.
The Swiss bank's asset management arm said that it will return the
outstanding money in its latest payout after it terminated the
funds linked to Greensill in March. Credit Suisse has distributed
a total of approximately $5.6 billion to investors in the funds
since March 2021.
About Greensill Capital
Greensill is an independent financial services firm and principal
investor group based in the United Kingdom and Australia. It
offers structures trade finance, working capital optimization,
specialty financing and contract monetization. Greensill Capital
Pty is the parent company for the Greensill Group.
Greensill began to unravel in March 2021 when its main insurer
stopped providing credit insurance on US$4.1 billion of debt in
portfolios it had created for clients including Swiss bank Credit
Suisse.
Greensill Capital (UK) Limited and Greensill Capital Management
Company (UK) Limited filed for insolvency in Britain on March 8,
2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael
McCann of Grant Thornton were appointed as administrators.
Greensill Capital Pty Ltd. filed insolvency proceedings in
Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of
Grant Thornton Australia Ltd, were appointed as voluntary
administrators in Australia.
Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley,
director, signed the petition. In the petition, the Debtor listed
assets of between $10 million and $50 million and liabilities of
between $50 million and $100 million. The case is handled by Judge
Michael E. Wiles.
The Debtor tapped Segal & Segal LLP as bankruptcy counsel, Mayer
Brown LLP as special counsel, and GLC Advisors & Co., LLC and GLCA
Securities, LLC as investment bankers and financial advisors.
Matthew Tocks is the chief restructuring officer.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on April 7, 2021. The Committee is represented
by Arent Fox LLP.
KINNEALLY ENTERPRISES: First Creditors' Meeting Set for Aug. 20
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Kinneally
Enterprises Pty Ltd, trading as IGA Jubilee Central and Airlie
Beach Post & Convenience Store, will be held on Aug. 20, 2021, at
10:00 a.m. at the offices of BDO (NTH QLD), Level 1, 15 Lake
Street, in Cairns, Queensland.
Todd William Kelly of BDO (NTH QLD) was appointed as administrator
of Kinneally Enterprises on Aug. 11, 2021.
KYJACT PTY: Second Creditors' Meeting Set for Aug. 19
-----------------------------------------------------
A second meeting of creditors in the proceedings of Kyjact Pty Ltd
has been set for Aug. 19, 2021, at 10:00 a.m. via teleconference
only.
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. 18, 2021, at 5:00 p.m.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency
& Forensic Accountants were appointed as administrators of Kyjact
Pty on July 15, 2021.
REDZED TRUST 2021-2: Moody's Assigns B1 Rating to AUD3MM F Notes
----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by Perpetual Trustee Company Limited as
trustee of RedZed Trust Series 2021-2.
Issuer: RedZed Trust Series 2021-2
AUD562.5 million Class A-1 Notes, Definitive Rating Assigned Aaa
(sf)
AUD96.75 million Class A-2 Notes, Definitive Rating Assigned Aaa
(sf)
AUD51.0 million Class B Notes, Definitive Rating Assigned Aa2
(sf)
AUD6.75 million Class C Notes, Definitive Rating Assigned A2 (sf)
AUD12.75 million Class D Notes, Definitive Rating Assigned Baa2
(sf)
AUD9.0 million Class E Notes, Definitive Rating Assigned Ba2 (sf)
AUD3.0 million Class F Notes, Definitive Rating Assigned B1 (sf)
The AUD8.25 million of Class G-1 and Class G-2 Notes (together, the
Class G Notes) are not rated by Moody's.
The transaction is a securitisation of first-ranking mortgage loans
secured over residential properties located in Australia. The loans
were originated and are serviced by RedZed Lending Solutions Pty
Limited (RedZed, unrated).
The portfolio includes 92.6% of loans to self-employed borrowers.
89.2% were extended on alternative income documentation
verification ('alt doc') basis; and, based on Moody's
classifications, 5.2% are to borrowers with adverse credit
histories.
RATINGS RATIONALE
The definitive ratings take into account, among other factors, an
evaluation of the underlying receivables and their expected
performance, evaluation of the capital structure and credit
enhancement provided to the notes, availability of excess spread
over the life of the transaction, the liquidity facility in the
amount of 1.5% of the notes balance, the legal structure, and the
experience of RedZed as servicer.
Moody's MILAN CE — representing the loss that Moody's expects the
portfolio to suffer in the event of a severe recession scenario —
is 12.1%. Moody's expected loss for this transaction is 1.7%.
Key transactional features are as follows:
There is a pre-funding period from the closing date up to the
payment date in November 2021, during which period the issuer can
acquire additional AUD100,000,000 of mortgage receivables, by
maintaining the portfolio parameters.
While the Class A-2 Notes are subordinate to Class A-1 Notes in
relation to charge-offs, Class A-2 and Class A-1 Notes rank pari
passu in relation to principal payments, on the basis of their
stated amounts, before the call option date. This feature reduces
the absolute amount of credit enhancement available to the Class
A-1 Notes.
The servicer is required to maintain the weighted average interest
rates on the mortgage loans at least at 3.5% above one month BBSW,
which is within the current portfolio yield of 4.0% as at the
cut-off date. This generates some excess spread available to cover
losses in the pool.
Under the retention mechanism, excess spread is used to repay
principal on the Class F Notes, up to AUD750,000, thereby limiting
their exposure to losses. At the same time, the retention amount
ledger ensures that the level of credit enhancement available to
the more senior ranking notes is preserved.
The Class B to Class F Notes will start receiving their pro-rata
share of principal if certain step-down conditions are met.
While the Class G Notes do not receive principal payments until
the other notes are repaid, once step-down conditions are met,
their pro-rata share of principal will be allocated in a reverse
sequential order, starting from the Class F Notes.
Key pool features are as follows:
The pool has a weighted-average scheduled loan-to-value (LTV) of
68.0%, and 16.5% of the loans have scheduled LTVs over 80%. There
are no loans with a scheduled LTV over 85%.
Around 92.6% of the borrowers are self-employed. This is in line
with RedZed's business model and strategy to focus on the
self-employed market. The income of these borrowers is subject to
higher volatility than employed borrowers, and they may experience
higher default rates.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
December 2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement, due to sequential amortization, or
better-than-expected collateral performance. The Australian jobs
market and the housing market are primary drivers of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, a deterioration in the credit quality of
transaction counterparties, or lack of transactional governance,
and fraud.
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C H I N A
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CHINA EVERGRANDE: NEV Business Expects Losses to Almost Double
--------------------------------------------------------------
Caixin Global reports that the new-energy vehicle business of
cash-strapped real estate developer China Evergrande Group
announced that it expects a widening net loss of approximately
CNY4.8 billion (US$740 million) in the first half of this year,
citing heavy business development investments.
The preliminary net loss incurred by China Evergrande New Energy
Vehicle Group Ltd. (Evergrande NEV) is almost double the loss of
CNY2.45 billion a year earlier, Caixin discloses citing a filing to
the Hong Kong Stock Exchange on Aug. 9. The amount was mainly
attributable to the NEV business's purchase of fixed assets and
equipment, as well as research and development.
However, shares of Evergrande NEV rose 8% to close at HK$13.2 on
Aug. 10 after Reuters reported Aug. 9 that its parent is in talks
to sell stakes in its new-energy vehicle arm and its property
management business, Evergrande Property Services Group Ltd., which
is also listed in Hong Kong.
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 on Aug.
9, 2021, S&P Global Ratings, on Aug. 5, 2021, downgraded China
Evergrande Group and its subsidiaries Hengda Real Estate Group Co.
Ltd. and Tianji Holding Ltd. to 'CCC' from 'B-'. S&P also lowered
its long-term issue rating on the U.S. dollar notes issued by
Evergrande and guaranteed by Tianji to 'CCC-' from 'CCC+'.
The negative outlook reflects Evergrande's increasing strained
liquidity and nonpayment risk. It also reflects S&P's view that its
asset disposal plan, though potentially substantial, lacks
visibility or certainty.
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I N D I A
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AGNIBINA RICE: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Agnibina
Rice Mills Private Limited (ARMPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.65 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.35 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 July 14, 2020, placed the
rating(s) of ARMPL under the 'issuer non-cooperating' category as
ARMPL 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. ARMPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 30, 2021, June 9, 2021, June 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(s).
Agnibina Rice Mills Private Limited (ARMPL) was incorporated as a
Private Limited Company on May 10, 2013. However, after remaining
dormant for almost five years, the company started commercial
operation from April, 2018. The company has set up a rice milling
and processing unit at Burdwan, West Bengal with an installed
capacity of 24,000 MTPA. Mr. Nazrul Islam Miya looks after the day
to day activities of the company and has around two decades of
experience in the same line of business through other similar
companies and they are equally supported by other directors and a
team of experienced professionals who are having adequate
experience in the similar line of business.
AISHWARYA CHICKEN: CRISIL Lowers Rating on INR10.50cr Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Aishwarya Chicken (AC) to 'CRISIL D' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Open Cash Credit 10.50 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Term Loan 0.67 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Working Capital
Term Loan 2.83 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects delays in servicing debt
obligations.
The ratings continue to reflect AC's vulnerability to risks
inherent in poultry industry and intense competition and weak
financial risk profile. These weaknesses are partially offset by
the extensive industry experience of the partners.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to intense competition and to risks inherent in the
poultry industry: The poultry industry has players from both the
organized and unorganized segments leading to intense competition.
This constrains the scalability and profitability. Furthermore, the
industry is driven by regional demand-and-supply factors because of
transportation constraints and the perishable nature of products.
It is also vulnerable to outbreak of diseases, which could lead to
a decline in sales volume and realizations. Furthermore, due to
religious sentiments, demand for poultry products is seasonal.
* Weak financial risk profile: Debt protection metrics were modest,
as indicated by estimated interest coverage and net cash accrual to
adjusted debt ratio of 1.6 times and 0.06 time, respectively, in
fiscal 2020. The capital structure is moderate, as reflected in
estimated gearing of 0.93 times as of March 31, 2020 while the net
worth is moderate at INR12.21 crore.
Strength:
* Extensive industry experience of the partners: The partners'
experience of over three decades in the poultry industry has given
them an understanding of the market dynamics and helped establish
relationships with suppliers and customers.
Liquidity: Poor
* With average month-end bank limits almost fully utilized,
liquidity is likely to remain under pressure over the medium term,
mainly due to sizeable working capital requirements. Given the
economic slowdown because of Covid-19, sales have been modest
resulting in lower than expected profitability.
The company has applied for one-time restructuring of its bank
facilities on 15th June 2021 under the restructuring scheme as
prescribed by the Reserve Bank of India (RBI), in June 2021. As
confirmed by the bank, the application has been invoked and
implemented on 24th June 2021. As per terms of the OTR, overdrawn
CC limits have been converted into a funded interest term loan to
be repaid over 4 years after a 1 year moratorium. The tenure of the
existing term loan and GECL (Covid-relief) loans have also been
increased to 5.5 and 3 years respectively, after a 1 year
moratorium
Rating Sensitivity factors
Upward Factors:
* Track record of timely payments on working capital limits and
term loan obligations for more than three months
* Sustained improvement in scale of operations by 20% and
sustenance of operating margins at over 6%, leading to higher cash
accruals
* Improvement in working capital cycle
Aishwarya Chicken was set up in the year 2011. AC is engaged in the
poultry and hatchery business. AC is owned & managed by Mr. G
Nallusamy and Mr. R Gunasekaran.
AISHWARYA FEEDS: CRISIL Lowers Rating on INR30cr Cash Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Aishwarya Feeds (AF) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 30.0 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Cash Credit & 9.5 CRISIL D (Downgraded from
Working Capital 'CRISIL B+/Stable')
Demand Loan
Long Term Loan 2.21 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Packing Credit 4.00 CRISIL D (Downgraded from
'CRISIL A4 ')
Proposed Long Term 0.29 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
The rating reflects delays in the last 3 months due to poor
liquidity. This was caused by impact on operating performance due
to the second wave covid-19 pandemic.'
The rating reflect AF's susceptibility to regulatory risks and
volatility in raw material prices, geographic concentration in
revenue, limited pricing power, and weak financial risk profile.
The weaknesses are partially offset by the extensive experience of
the promoter in the breweries and distilleries industry.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in debt servicing: There has been delay in repayment of
term loan in the last 3 months mainly on account of weak liquidity
arising from pandemic led impact on the operating performance.
* Exposure to intense competition and to risks inherent in the
poultry industry: The poultry industry has players from both the
organized and unorganized segments leading to intense competition.
This constrains the scalability and profitability. Furthermore, the
industry is driven by regional demand-and-supply factors because of
transportation constraints and the perishable nature of products.
It is also vulnerable to outbreak of diseases, which could lead to
a decline in sales volume and realizations. Furthermore, due to
religious sentiments, demand for poultry products is seasonal.
* Weak financial risk profile: Debt protection metrics were modest,
as indicated by estimated interest coverage of 1.25 time and net
cash accrual to adjusted debt ratio of 0,02 time in fiscal 2021.
The capital structure is leveraged, as reflected in high gearing of
2 times as estimated on 31st March 2021.
Strengths:
* Extensive industry experience of the partners: The partners'
experience of over three decades in the poultry industry has given
them an understanding of the market dynamics and helped establish
relationships with suppliers and customers.
Liquidity: Poor
Liquidity is poor, as reflected in delays in the repayment of loans
in the last 3 months. With impact on operating performance because
of the second wave Covid-19, the working capital requirements have
increased. As a result, the firm has approached bank for
restructuring of their debt.
Rating Sensitivity factors
Upward factor
* 90-day track record of timely repayment of debt obligations
* Increase in revenue and operating margin
Established as a partnership firm in 1996, AF manufactures poultry
feed at its plant at Namakkal in Tamil Nadu. The firm also trades
in eggs in the domestic and overseas markets. Its operations are
managed by managing partner, Mr R Gunasekaran, and his family
members.
APOLLO SOYUZ: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Apollo Soyuz Electricals Private Limited
EL-74/75, Electronic Zone
Mahape, Navi Mumbai 400701
Insolvency Commencement Date: July 12, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 8, 2022
Insolvency professional: Mr. Sanjay Kumar Lalit
Interim Resolution
Professional: Mr. Sanjay Kumar Lalit
207, United Business Park 2nd Floor
Behind Old Passport Office
Road No. 11, Wagle Estate
Thane (West), Mumbai 400604
E-mail: jupiter.legal@yahoo.in
sanjay@jupiterlegal.in
Last date for
submission of claims: August 18, 2021
BARTRONICS GLOBAL: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Bartronics Global Solutions Limited
#106, Ashoka Capitol
Road No. 2, Banjara Hills
Hyderabad 500034, Telangana
Insolvency Commencement Date: August 4, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: January 31, 2022
Insolvency professional: Ramachander Rao Bikumalla
Interim Resolution
Professional: Ramachander Rao Bikumalla
8-2-401/S/2, Sheetal Enclave
Road No. 5, Banjara Hills
Hyderabad 500034
E-mail: brremailid@gmail.com
- and -
503, SS Residency
Shanti Nagar, Masab Tank
Hyderabad 500028
E-mail: cirp.bartronicsglobal@gmail.com
Last date for
submission of claims: August 20, 2021
BHARAT UDYOG: CRISIL Moves B+ Debt Rating from Not Cooperating
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with the
Securities and Exchange Board of India guidelines, had migrated its
rating on the long-term bank facilities of Bharat Udyog (BU) to
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
management has subsequently started sharing information necessary
for carrying out a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating its rating to 'CRISIL
B+/Stable' from 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 25 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING')
The rating continues to reflect BU's below-average financial risk
profile because of average capital structure and subdued debt
protection metrics, large working capital requirement, and
susceptibility of operating margin to regulatory risk pertaining to
duty structure and compliance with environmental norms. These
weaknesses are partially offset by the extensive industry
experience of the partners.
Analytical Approach
Estimated unsecured loans of INR2.9 crore (as of March 31, 2021)
from the partners have been treated as neither debt nor equity as
these are expected to be maintained in the firm.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: Networth is estimated to be
modest at INR6.92 crore while total outside liabilities to tangible
networth ratio was weak at 3.55 times (despite improving over the
years), as on March 31, 2021. Large external borrowings led to
muted debt protection metrics, with estimated interest coverage and
net cash accrual to total debt ratios of 1.07 times and 0.01 time,
respectively, in fiscal 2021. The metrics are expected to remain
average over the medium term.
* Exposure to regulatory risk pertaining to duty structure and
compliance with environmental norms: Lead is environmentally
hazardous and its recycling is subject to stringent government
regulations under the Batteries (Management and Handling) Rules,
2001, framed by the ministry of environment and forests. Any change
in regulations could negatively affect the industry and the
performance of the company. Nonetheless, the recycling segment is
considered less susceptible to regulations compared to refineries.
* Stretched working capital cycle: Gross current assets are
estimated at 200 days as on March 31, 2021, because of stretched
receivables and sizeable inventory. This is compounded by limited
credit from suppliers, resulting in high dependence on bank limit.
Strength
* Extensive experience of the partners: Presence of over 15 years
in the diversified metals and mining industry has enabled the
partners to understand market dynamics and establish strong
relationships with suppliers and customers.
Liquidity: Stretched
Bank limit was almost fully utilized (97.58%) during the 12 months
through February 2021. Expected cash accrual of over INR60 lakh
will be insufficient to meet term debt obligation of INR2.7 crore
annually, over the medium term. However, equity and unsecured loans
from the promoters will help meet working capital requirement and
debt obligation. Current ratio is estimated to be moderate at 1.4
times as of March 31, 2021.
Outlook: Stable
The firm will continue to benefit from the extensive experience of
its partners and established relationships with clients.
Rating Sensitivity Factors
Upward Factors
* Sustained growth in revenue and better operating margin leading
to sizeable cash accrual
* Improvement in financial risk profile, especially liquidity, with
NCA/RO operating above 1.1 times
Downward factors
* Weakening of operating performance leading to cash accrual less
than INR40 lakh
* Large, debt-funded capital expenditure or further stretch in
working capital cycle adversely affecting financial risk profile
Established in 2005 as a partnership firm by Mr Suresh Pal and Mr
Lalit Gupta, BU manufactures pure lead, lead alloy and lead oxide.
The firm is based in Kathua, Jammu & Kashmir.
CHAMPION OM: CRISIL Hikes Rating on INR14.75cr Loans to B
---------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Champion Om Dev Construction Ltd (CODCL) to 'CRISIL
B/Stable' from 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13.75 CRISIL B/Stable (Upgraded
from 'CRISIL D ')
Proposed Fund- 1.00 CRISIL B/Stable (Upgraded
Based Bank Limits from 'CRISIL D ')
The ratings reflect the below-average financial risk profile of the
company because of high gearing, and susceptibility to volatility
in the prices of agricultural commodities. These weaknesses are
partially offset by the industry experience and funding support of
the promoters
Analytical Approach:
Unsecured loans of INR21.44 crore (provisional) as of March 31,
2021, have been considered as neither debt nor equity as these are
from the promoters and are expected to remain in the business over
the medium term.
Key Rating Drivers & Detailed Description
Weakness:
* Below-average financial risk profile: Networth is estimated to be
small at INR7.24 crore and gearing weak at 1.95 times, as of March
31, 2021. Total outside liabilities to adjusted networth ratio was
also high at 3.74 times. Debt protection metrics were average, with
interest coverage and net cash accrual to adjusted debt ratios of
1.73 times and 0.1 time, respectively, for fiscal 2021.
* Susceptibility to volatility in raw material prices and changes
in regulations: The company is vulnerable to the risk of
unfavorable supply and price volatility of agricultural
commodities. It also faces risk related to tender-based business
for sand mining and stone crushing.
Strengths:
* Extensive experience and funding support of the promoters: The
company will continue to benefit from its promoter's industry
experience of more than a decade. The promoter has also supported
operations by extending unsecured loans.
Liquidity: Stretched
Cash accrual is expected to be over INR1.8 crore against term debt
obligation of INR0.06 crore. Fund-based bank limit was fully
utilized. Current ratio was weak at 1.26 times as of March 31,
2021.
Outlook Stable
The company will continue to benefit from the extensive industry
experience of its promoters.
Rating Sensitivity factors
Upward factors
* Increased cushion in bank limit with average bank utilization of
less than 95%
* Improvement in capital structure with reduction in debt,
resulting in lower gearing
* Better working capital with lower gross current assets (GCAs)
Downward factors
* Increase in debt or reduction in operating margin leading to fall
in interest coverage ratio below 1.5 times
* Deterioration in working capital requirement with increase in
GCAs
Incorporated in 2008 and promoted by Mrs. Neetu Singh and Mr. Ashok
Kumar Rameshwar Singh, CODCL is engaged in stone crushing at its
facility in Palamu, Jharkhand. It also trades in sand and
agricultural commodities and provides logistics for the
distribution of food grains in Bihar.
CHETAN OVERSEAS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Chetan Overseas
(Delhi) Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based facilities migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING) rating; and
-- INR120 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 5, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Chetan Overseas (Delhi) is engaged in the trading of non-ferrous
metals.
DEVANS MODERN: CRISIL Withdraws D Rating on INR119cr Loans
----------------------------------------------------------
Due to inadequate information and in line with the guidelines of
the Securities and Exchange Board of India, CRISIL Ratings had
migrated the ratings on the bank facilities and fixed deposits of
Devans Modern Breweries Ltd (DMBL) to 'CRISIL D/CRISIL D/FD Issuer
Not Cooperating'. However, the management has subsequently started
sharing the requisite information necessary for carrying out a
comprehensive review of the ratings. Consequently, CRISIL Ratings
is migrating the ratings of DMBL to 'CRISIL D/CRISIL D/FD' and is
subsequently withdrawn the ratings at the company's request and on
receipt of a no-objection certificate from the bankers. The Company
has not raised any fixed deposit nor there any outstanding dues on
deposits. The withdrawal is in line with CRISIL Ratings' policy on
withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Cash Credit 45 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Proposed Long 22.3 CRISIL D (Migrated from
Term Bank 'CRISIL D ISSUER NOT
Loan Facility COOPERATING'; Rating Withdrawn)
Term Loan 50.7 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Analytical Approach
CRISIL Ratings has consolidated the business and financial risk
profiles of DMBL and Devson Pvt Ltd (DPL) as both companies
(together referred to as the Devson group) have common promoters
and close business and operational linkages.
DMBL was set up in 1962 as a liquor-bottling unit. The company
manufactures malt spirit, beer and Indian-made foreign liquor
(IMFL). Its facilities are in Kotputli, Rajasthan, and Sambha,
Jammu.
DPL was incorporated in 1952 by the late Mr G. C. Deewan and late
Mr Baisakhi Deewan and is currently being managed by Mrs Renu
Deewan (Managing Director) and Mr Lalit Deewan (Director). The
company is a wholesaler of IMFL, country liquor and beer in the
state of Jammu and Kashmir.
ERAM MOTORS: CRISIL Withdraws B Rating on INR15cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn the ratings on certain bank facilities
of Eram Motors Private Limited, as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Withdrawn)
Cash Credit 15 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Inventory Funding 15 CRISIL B/Stable (ISSUER NOT
Facility COOPERATING; Rating Withdrawn)
Long Term Loan 17 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Long Term Loan 8 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Eram for
obtaining information through letters and emails dated December 7,
2020 and December 12, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Eram, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Eram
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Eram continue to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL Ratings has withdrawn its rating on INR9 Crore Bank
Guarantee, INR15 Crore Cash Credit, INR15 Crore Inventory Funding
Facility and INR9 Crore Long Term Loan of Eram on the request of
the company and after receiving no objection certificate from the
bank. The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Eram, incorporated in 2009, is an authorized dealer for passenger
vehicles of Mahindra & Mahindra Ltd in Kerala. Eram, a part of the
Eram group, and promoted by Dr. Sideek Ahmed, who has over 25 years
of experience across various verticals.
GAMMON ENGINEERS: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Gammon Engineers and Contractors
Private Limited
Gammon House
Veer Savarkar Marg
Prabhadevi
Mumbai 400025
Insolvency Commencement Date: July 19, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 14, 2022
Insolvency professional: Vasudev Ganesh Nayak Udupi
Interim Resolution
Professional: Vasudev Ganesh Nayak Udupi
303/305, Rajamata CHS Ltd
Near RTO, Four Bungalows
Andheri-West, Mumbai 400053
E-mail: uvnayak@gmail.com
irp.gammoneng@gmail.com
Last date for
submission of claims: August 2, 2021
HANS RAJ: CRISIL Withdraws B+ Rating on INR19cr Cash Loan
---------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on INR0.02 Crore of Bank
Guarantee, INR19 Crore Cash Credit, INR0.48 Crore of Proposed Long
Term Bank Loan Facility and INR0.5 Crore of Term Loan of Hans Raj
Agros Private Limited (HRA) on the request of the company and
receipt of a no objection certificate from the banker. The rating
action is in line with CRISIL Ratings' policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.02 CRISIL A4 (ISSUER NOT
COOPERATING, Rating
Withdrawn)
Cash Credit 19.00 CRISIL B+/Stable (ISSUER NOT
COOPERATING, Rating
Withdrawn)
Proposed Long Term 0.48 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING, Rating
Withdrawn)
Term Loan 0.50 CRISIL B+/Stable (ISSUER NOT
COOPERATING, Rating
Withdrawn)
Warehouse Receipts 10.00 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with HRA for
obtaining information through letters and emails dated October 24,
2020 and April 20, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HRA. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HRA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
HRA continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
HRA was established in 1996, by Mr Hans Raj in Fazilka, Punjab. The
company mills and markets high-grade rice like basmati. Mr Ranjam
Kamra oversees the daily operations.
Status of noncooperation with previous CRA
HRA has not cooperated with Credit Analysis & Research Limited
(CARE) which has classified it as non-cooperative vide release
dated Nov 10, 2020. The reason provided by CARE is non-furnishing
of information for monitoring of ratings.
HMP HOTELS: CRISIL Assigns B- Rating to INR6.0cr Loans
------------------------------------------------------
CRISIL Rating has assigned its 'CRISIL B-/Stable' to the bank
facilities of HMP Hotels Private Limited (HMPH).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B-/Stable (Assigned)
Long Term Loan 5.0 CRISIL B-/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 0.5 CRISIL B-/Stable (Assigned)
The ratings reflect HMPH's vulnerability to cyclicality in
hospitality industry, geographic concentration in revenue profile
and small scale of operation. These weakness are partially offset
by its extensive industry experience of the promoters.
Analytical Approach:
Unsecured loans of around INR5.2 crore (outstanding as of March,
2021) from promoters, and friends are treated as NDNE (neither debt
nor equity), as these are expected to be maintained in the business
over the medium term
Key Rating Drivers & Detailed Description
Weakness:
* Vulnerability to cyclicality in hospitality industry: The hotel
industry is vulnerable to changes in the domestic and international
economy. Typically, the industry follows a six-year cycle.
Companies which have a high financial leverage are more vulnerable
to cyclicality due to their fixed financial commitments.
* Geographic concentration in revenue profile: The entity operates
only a hotels in Punjab, any natural calamities and disasters will
impact the business adversely.
* Small scale of operation: HMPHs business profile is constrained
by its scale of operations in the intensely competitive Hotels &
Resorts industry. HMPHs scale of operations will continue limit its
operating flexibility.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of over 15 years in Hotels & Resorts industry.
This has given them an understanding of the dynamics of the market,
and enabled them to establish relationships with suppliers and
customers.
Liquidity: Poor
Bank limit utilization is high at around 90 percent for the past
ten months ended May 2021. Cash accrual are expected to be
insufficient against the term debt obligations over the medium
term. The promoters are likely to extend support in the form of
equity and unsecured loans to meet its working capital requirements
and repayment obligations. Negative net worth limits its's
financial flexibility, and restrict the financial cushion available
to the company in case of any adverse conditions or downturn in the
business
Outlook Stable
CRISIL Ratings believe HMPH will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factor
* Sustained improvement in scale of operation by 50% and sustenance
of operating margin, leading to higher cash accruals
* Improvement in working capital cycle
Downward factor
* Decline in operating profitability by over 200 basis points
* Large debt-funded capital expenditure weakens capital structure
Incorporated in 2007, HMPH, is engaged in the operation of a hotels
under a franchise agreement with Continental Hotel under the
“Continent“ brand. The hotel has 20 rooms (Standard and
Deluxe), along with 3 banquet halls, 1 conference rooms, a bar & a
restaurant. The hotel is located at Nawanshahr, Punjab. HMPH is
owned & managed by Kamaljit Singh Hayre Jaspal Nagra & Harmesh
Chand Dhiman.
INNOVATIVE TYRES: CRISIL Lowers Rating on INR15cr Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Innovative Tyres and Tubes Ltd (ITTL) to 'CRISIL D/CRISIL D' from
'CRISIL BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Downgraded from
'CRISIL A4+ ')
Cash Credit 15 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Foreign Exchange 1 CRISIL D (Downgraded from
Forward 'CRISIL A4+ ')
Letter of Credit 14 CRISIL D (Downgraded from
'CRISIL A4+ ')
Standby Line 1 CRISIL D (Downgraded from
of Credit 'CRISIL BB/Stable')
Term Loan 6.30 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Working Capital 5.77 CRISIL D (Downgraded from
Facility 'CRISIL BB/Stable')
The downgrade reflects the delay in servicing the June 2021 term
debt obligations by ITTL; the obligation remains overdue as of July
29, 2021. The irregularity is driven by poor liquidity with
disruption in sales and cash inflows amidst resurgence of COVID 19,
disruption in shipping lines.
The rating action also takes note that ITTL was already irregular
in servicing the debt obligations before applying for one-time
restructuring (under RBI framework 2 for entities facing covid
related stress). As confirmed by the bank the application is under
process.
ITTL has working capital intensive operations, low margin and weak
debt protection measures, and is exposed to intense competition in
the tire industry and volatility in raw material prices. However,
ITTL benefits from extensive promoter experience and moderate
capital structure.
Key Rating Drivers & Detailed Description
Strengths:
* Moderate capital structure: The company had a moderate capital
structure reflected in networth and gearing of INR67.7 crore and
0.3 time, respectively, as on March 31, 2021.
* Promoters' extensive experience in the tire industry and diverse
customer base: The promoters Mr Mukesh Desai and Mr Pradeep Kothari
have experience of more than 20 years in the tire industry, which
will continue to drive growth.
ITTL supplies tires to major players such as Eastman Industries
Ltd, Tionale Pte Ltd among others. Also, ITTL has been doing
jobwork for CEAT Ltd since 1996. The company enjoys geographical
diversification with export contributing almost equally as the
domestic business to revenue. The company also generates around a
fifth of revenue through sales from its own outlets.
Weaknesses
* Working capital intensive operations: ITTL's operations entail
large working capital requirements, as reflected in its high gross
current assets (GCAs) of 166 days as of March 2021. The company's
has a wide range of tires leading to high inventory levels of over
3 months. Also, receivables are moderately high, at over a month
days, as of March 31, 2021.
* Weak debt protection measures: ITTL's debt protection measures
were constrained by low operating margin of 1.5% leading to cash
loss of around INR0.5 cr in fiscal 2021.
* Exposure to intense competition and susceptibility to volatility
in raw material prices: The tire industry in India is dominated by
a few large players. This exposes ITTL to intense competition and
pricing pressures. Being a supplier to some of these players, ITTL
can grow with these players, but has limited bargaining power.
Despite widespread presence across domestic and overseas markets,
ITTL's scale of operations has remained modest, as reflected in
revenue of INR139 crore in fiscal 2021.
ITTL's profitability is vulnerable to movements in the price of key
raw materials, rubber and carbon black, which account for 65-70% of
the total cost structure of the company and have volatile prices.
This is partly reflected in the decline in margin over few years.
Liquidity Poor
ITTL's liquidity is poor reflecting in fully drawn bank limit and
delay in servicing term debt obligations. The increasing working
capital intensity, cash losses meant strain on liquidity despite
COVID-related funding of around INR5.7 cr availed by the company,
in the last one year.
Rating Sensitivity factors
Upward factors
* Track record of timely servicing of all debt obligations for at
least 90 days
* Improvement in liquidity on account of rising cash accruals or
significant infusion of funds or sharply improved working capital
cycle.
ITTL manufactures and exports bias tires. It offers a wide range of
products in the truck/bus, agricultural and OTR, and
motorcycle/three-wheeler segments. In addition to presence in
Gujarat, Maharashtra, Delhi, and Punjab, ITTL exports to more than
40 countries across 5 continents. Its manufacturing plants are at
Halol in Gujarat.
INTEGRATED WEAVING: CRISIL Reaffirms B+ Rating on INR15cr Loans
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facilities of Integrated Weaving India Private Limited (IWIPL) at
'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 10 CRISIL B+/Stable (Reaffirmed)
The Rating continues to reflect IWIPL's modest scale and exposure
to intense competition and below average financial risk profile.
These weaknesses are partially offset by the extensive experience
of the promoters and the low working capital requirement.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale and exposure to intense competition: The Company has
a modest scale of operations at about INR7.2 crore for the fiscal
2021. IWIPL's modest scale of operation in a highly competitive
textile-weaving segment shall continue to constrain its business
risk profile.
* Below-average financial risk profile: Financial risk profile is
below average marked by small networth of about INR6.3 crores and
moderate gearing of 2 times estimated as of March 31, 2021. The
debt protection metrics were moderate as reflected in its interest
coverage of about 2.7 times estimated for fiscal 2021.
Strengths:
* Extensive experience of the promoters: Benefits from the
promoters' experience of over 10 years in the textile industry, and
their keen grasp of industry dynamics, and healthy relations with
customers should continue to help IWIPL mitigate demand risk.
* Low working capital requirement: IWIPL undertakes job work, hence
its working capital requirement is low: gross current assets has
remained lower than 90 days during the last 2 years. Further the
company does not maintain any inventory and does not have payables
as it undertakes only job work and the receivables stood at about
90 days as of March 31, 2021.
Liquidity: Stretched
Liquidity is stretched. The company is estimated to generate
accruals of over INR2.2 crores against repayment obligation of
INR1.9 crores. The company also maintains cash and bank balance of
about INR80 lacs regularly which aids its liquidity further.
Outlook: Stable
CRISIL Rating on the long-term bank facilities believes that IWIPL
will continue to benefit from the extensive experience of the
promoters in the textile industry over the medium term.
Rating Sensitivity factors
Upward factors:
* Net cash accruals to repayment of over 1.5 times
* Increase in scale of operations and profitability
Downward factors:
* Net cash accrual to repayment of less than 1.1 times
* Decline in scale of operations and operating profit
Incorporated in 2016, IWIPL is based in Tamil Nadu. Mr
Krishnakumar, Mr Arun and Mr Mohan Kumar are the promoters. The
company manufactures fabric through job work for various RMG
players in Tamilnadu.
JAI MATADI: CRISIL Withdraws B+ Rating on INR4.75cr Cash Loan
-------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Jai Matadi Fashions Private
Limited (JMFPL) to 'CRISIL B+/Stable Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its rating on bank facility of JMFPL
following a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL Ratings is
migrating the ratings on bank facilities of JMFPL from 'CRISIL
B+/Stable Issuer Not Cooperating' to 'CRISIL B+/Stable'. The rating
action is in line with CRISIL Ratings' policy on withdrawal of bank
loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING Rating
Withdrawn)
Proposed Long Term 1.70 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL B+/Stable ISSUER
NOT COOPERATING Rating
Withdrawn)
Term Loan 0.55 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING Rating
Withdrawn)
JMFPL, based in Surat, Gujarat, was incorporated in 2003. The
company dyes dress material.
JYOTI CHANDRASHEKHAR: CARE Withdraws D Rating on Bank Facilities
----------------------------------------------------------------
CARE has reaffirmed and withdrawn the outstanding ratings of CARE D
assigned to the bank facilities of Jyoti Chandrashekhar Bawankule
(JCB) with immediate effect. The above action has been taken at the
request of JCB and 'No Objection Certificate' received from the
bank that has extended the facilities rated by CARE.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delays in servicing of debt obligations: There have been delays
in the servicing of interest and principal repayment on term loan
availed by the entity, the same was on account of poor liquidity
position.
Liquidity Position: Poor
Poor liquidity marked by lower accruals when compared to repayment
obligations and modest cash balance of INR0.55 crore as on March
31, 2020. This has constrained the ability of the firm to repay its
debt obligations on timely basis.
MAHARASHTRA AGRO: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: The Maharashtra Agro Industries
Development Corporation Limited
Krushi Udyog Bhavan
Aarey Milk Colony
Dinkarrao Desai Marg
Goregaon East
Mumbai 400065
Insolvency Commencement Date: July 16, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 12, 2022
Insolvency professional: Mr. Ashish Vyas
Interim Resolution
Professional: Mr. Ashish Vyas
B-1A Viceroy Court CHS
Thakur Village
Kandivali (East)
Mumbai Suburban
Maharashtra
E-mail: ashishvyas2006@gmail.com
- and -
Kanchansobha Debt Resolution Advisors
Private Limited
1507, B Wing
One BKC, G-Block
BKC, Bandra East
Mumbai 400051
E-mail: maidcl@kanchansobha.com
Last date for
submission of claims: August 19, 2021
MOHAN MOTOR: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Mohan Motor Dealers Pvt Ltd
9/12, Lalbazar Street
Kolkata 700001
Insolvency Commencement Date: August 3, 2021
Court: National Company Law Tribunal, Kolkata Bench
Estimated date of closure of
insolvency resolution process: January 29, 2022
(180 days from commencement)
Insolvency professional: Arun Kumar Khandelia
Interim Resolution
Professional: Arun Kumar Khandelia
'Shantiniketan'
8 Camac Street
8th Floor, Suite #807
Kolkata 700017
E-mail: arun@cskarun.com
cirp.mohanmotordealers@gmail.com
Last date for
submission of claims: August 17, 2021
MUSKAN OVERSEAS: CRISIL Withdraws B Rating on INR30cr Loans
-----------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the long term bank
facilities of Muskan Overseas Private Limited (MOPL) on the request
of the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 4.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Cash Credit 1.0 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Export Packing 24.5 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with MOPL for
obtaining information through letters and emails dated January 30,
2021 and May 19, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MOPL. This restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MOPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
MOPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
MOPL was established in 2001 as a partnership firm and was
reconstituted as a private limited company in 2010. Presently, the
promoters and directors are Mr Dinesh Gupta and Mr Manish Gupta.
MOPL undertakes processing of and trading in basmati rice in the
domestic market and mainly exports to Saudi Arabia, Dubai, Kuwait,
and Malaysia. The manufacturing unit is in Karnal, Haryana.
Status of non cooperation with previous CRA
MOPL has not cooperated with Brickwork Ratings India Private
Limited (BWR) which has classified it as non-cooperative vide
release dated 27-Nov-2020. The reason provided by BWR is
non-furnishing of information for monitoring of ratings.
PMT MACHINES: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of PMT
Machines Limited (PMT) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 428.27 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 6, 2020, placed the
rating of PMT Machines Limited (PMT) under the 'issuer
noncooperating' category as PMT had failed to provide information
for monitoring of the rating. PMT continues to be noncooperative
despite repeated requests for submission of information through
e-mails dated March 22, 2021, April 1, 2021, April 06, 2021, April
11, 2021 and phone calls.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating Users of this rating (including investors, lenders and the
public at large) are hence requested to exercise caution while
using the above rating(s).
PMT Machines Ltd (PMT) was incorporated on September 08, 1961 as
Traub India Pvt Ltd, promoted by TRAUB, a leading German Machine
Tool Company with a major shareholding of 70%, along with Mr D. L.
Shah. In 1979, TRAUB divested its entire stake in favour of Mr D.
L. Shah. Later on, in September 1989, it became deemed public
limited company and was renamed as PMT Machines Ltd. Subsequently
in 1994, Mr D. L. Shah sold the company to the Sandesara group. It
is one of the oldest machine tools producers in India. It
specializes in production of metal-working machine tools.
Sterling Biotech Ltd (SBL) is the flagship company of the
Vadodara-based Sandesara group. It is mainly engaged in the
manufacturing of pharmaceutical grade gelatin which has wide range
of applications such as capsules, tablets, etc.
PRANSHI SMALL: CRISIL Assigns B Rating to INR27cr LT Loan
---------------------------------------------------------
CRISIL Rating has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Pranshi Small Hydro Project Private Limited
(PSHPPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 27 CRISIL B/Stable (Assigned)
The rating reflect PSHPPL's susceptibility to hydrology risks,
exposure to risks related to ongoing project & expected leveraged
capital structure. These weaknesses are partially offset by
favorable regulatory requirement for renewable power producer and
adoption of latest machinery in steady industry.
Key Rating Drivers & Detailed Description
Weakness
* Exposure to risks related to ongoing project: PSHPPL is scheduled
to commence its project in March 2023. While the construction is
yet to begin, timely completion and successful stabilization of its
operations will remain a key rating sensitivity factor.
* Expected leveraged capital structure: PSHPPL is expected to have
an average financial risk profile with high gearing and moderate
debt protection metrics. The project is aggressively funded through
a debt-equity ratio 4.58 times (expected debt of INR27 crore to
fund INR32.89 total project cost).
* Susceptibility to hydrology risks. Despite a detailed hydrology
analysis to mitigate future risk, power generation will continue to
depend on availability of adequate water flow. Water level in river
depends on annual yield of rainfall from south-west monsoon
(June-November). The key risk is 'spread of rainfall' across the
monsoon: the more the even inflows into the river, the longer the
peak power generation periods and vice versa. However, this risk is
mitigated by catchment areas that are well-designed to ensure plant
operates at low PLF.
Strength
* Favorable regulatory requirement for renewable power producer and
expected long-term PPA: Demand in the renewable energy sector is
primarily led by central / state policies and renewable purchase
obligation (RPO) targets set by respective states. The RPO requires
discoms (state owned and private), open access and captive users to
purchase a fixed percentage of their power requirement through
renewable energy. The Power Purchase Agreement (PPA) is expected to
be with Himachal Pradesh Discom for a tenure of 40 years and tariff
in-line with the states' regulatory policy.
* Adoption of latest machinery in steady industry: PSHPPL is
currently in process of setting a new unit, the unit installed is
equipped with latest equipment & technology. Therefore, the
adoption of latest machinery in steady industry would support its
business profile going forward.
Liquidity: Poor
The total project cost is likely to be funded via debt to equity
ratio of 4.58 times. The term loan from bank is also pending to be
sanctioned. The promoters are likely to extend support in the form
of equity and unsecured loans in case of exigency. As of March 31,
2021, they have infused funds of around INR0.82 crore into the
business. DSCR is expected to be adequate at average 1.7 times over
the PPA tenure.
Outlook Stable
CRISIL Rating believes that PSHPPL will benefit over the medium
term from funding support from its promoters & favorable regulatory
requirement.
Rating Sensitivity factors
Upward factor
* No cost or time overruns in commissioning of the project
* Stabilises operations at its proposed plant in time, and reports
significant revenue and profitability.
Downward factor
* A considerable delay in the commencement of its operations,
* Generation significantly low cash accruals during its initial
phase of operations
PSHPPL was incorporated in 2018. PSHPPL is currently setting up a 3
MW hydro power plant on Parvati river in beas basin in Kullu
Sub-division of Kullu district Himachal Pradesh. PSHPPL is owned &
managed by Rekha Sood and Gopal Krishan Sood. The plant is expected
to be commissioned in March 2023.
PRIYADHAR INTL: CRISIL Lowers Rating on INR1.7cr Cash Loan to D
---------------------------------------------------------------
CRISIL Ratings is downgrading its ratings on the bank facilities of
Priyadhar Intl Marketing Private Limited (PIMPL) to 'CRISIL
D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 1.7 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Long Term 7.3 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
The downgrade reflects the company's overdrawn cash credit limit
for more than 30 straight days because of weak liquidity.
The ratings also reflect the company's modest scale of operations
and weak financial risk profile. These weaknesses are partially
offset by the extensive experience of the promoter in the waste
water solutions industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Overdrawn cash credit facility for more than 30 days because of
weak liquidity: Liquidity is weak, as reflected in instances of the
cash credit facility being overdrawn for more than 30 days in the
12 months through July 2021.
* Modest scale of operations: PIMPL's business risk profile remains
constrained by its modest scale of operations in the waste water
solutions industry, limiting its operating flexibilityPIMPL has
achieved revenues of around INR1.38 crores in FY20 .
* Weak financial risk profile: Debt protection measures are subdued
due to high gearing and low accrual. Interest coverage and net cash
accrual to total debt ratios were at 1.39 times and 0.04 times,
respectively, in fiscal 2020.
Strength:
* Extensive industry experience of the promoter: The promoter has
experience of over 40 years in the waste water solutions industry.
This has given him an understanding of market dynamics and helped
establish healthy relationships with suppliers and customers.
Liquidity: Poor
Poor liquidity has resulted in overutilization of the working
capital limits for more than 30 days. Operations are working
capital intensive, leading to dependence on external debt for
meeting working capital requirement.
Rating Sensitivity factors
Upward factors
* Track record of timely debt servicing for at least 90 days
* Improvement in business performance and reduction in receivables
resulting in better liquidity
Incorporated in 2017, PIMPL provides waste water treatment
solutions. The company is based in Hyderabad and promoted by Mr
Kaladhar Rao Potlapalli.
R. P. STEEL: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of R. P. Steel
Industries (RPSI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 10.00 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 June 29, 2020, placed the
rating(s) of RPSI under the 'issuer non-cooperating' category as
RPSI 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. RPSI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 15, 2021, May 25, 2021, June 4, 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.
Incorporated in 1984, R. P. Steel Industries (RPSI), managed by Mr.
Parshotam Aggarwal and his son Mr. Salil Aggarwal, is engaged in
the trading of various kinds of steel products. Originally, the
firm was constituted as a proprietorship firm with Mr. Parshotam
Aggarwal as its proprietor. From April 01, 2016 onwards, the firm
was reconstituted as partnership firm, with Mr. Parshotam Aggarwal
and Mr. Salil Aggarwal as its partners.
R.A. MOTORS: CRISIL Withdraws D Rating on INR7.5cr Cash Loan
------------------------------------------------------------
Because of inadequate information and in line with the Securities
and Exchange Board of India guidelines, CRISIL Ratings had migrated
its ratings on the bank facilities of R.A. Motors Pvt Ltd (RAMPL)
to 'CRISIL D; issuer not cooperating'. However, the management has
subsequently started sharing the information required for carrying
out a comprehensive review of the rating. Consequently, CRISIL
Rating is migrating the rating to 'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
Corporate Loan 3.0 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating Withdrawn)
CRISIL Ratings has withdrawn its rating on the bank facilities of
RAMPL at the company's request and on receipt of a no-objection
certificate from its bankers. The rating action is in line with the
withdrawal policy of CRISIL Ratings regarding bank loan
facilities.
RAMPL, incorporated in 2004, is an authorized dealer for commercial
vehicles of Tata Motors Ltd (TML), with four showrooms and nine
sales offices covering Etah, Moradabad, Badaun, Kasganj, Sambhal,
Amroha and Bareilly in Uttar Pradesh. The Etah-based company deals
in the entire range of commercial as well as passenger vehicles of
TML. Mr Ajay Chaturvedi is the promoter of the company.
RAMA KRISHNA: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rama
Krishna Spintex Private Limited (RKSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 77.02 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 29, 2020, placed the
rating(s) of RKSPL under the 'issuer non-cooperating' category as
RKSPL 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. RKSPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 14, 2021, April 24, 2021, May 4, 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).
Rama Krishna Spintex Private Limited (RKSPL), based in Bathinda
(Punjab), was set up in Feb-2007 as a private limited company. It
commenced operations in Jan-2008. The company is currently being
managed by Mr. Makhan Lal Mangla, Mr. Mahavir Kumar, Mr. Siddharth
Mangla and Mr. Parvesh Mangla. RKS is engaged in the business of
manufacturing of cotton yarn such as stubbed cotton yarn, grey
cotton yarn and waxed cotton yarn. The plant is located in
Bathinda, Punjab, with total installed capacity of 28 MT (Metric
tonnes) of cotton yarn per day.
SALASAR AUTOCRAFTS: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Salasar
Autocrafts Private Limited (SAPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.75 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 22, 2020, placed the
rating(s) of SAPL under the 'issuer non-cooperating' category as
SAPL 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. SAPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 07, 2021, April 17, 2021, April 27, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in February 2017 as a private limited company, Salasar
Autocrafts Private Limited (SAPL) is an authorized dealer of
Mahindra and Mahindra Ltd. (Mahindra) and is engaged in the
business of trading and servicing the passenger vehicles of
Mahindra along with sale of spare parts. SAPL was incorporated in
February 2017 and commenced its operations in August 2017. SAPL has
1 showroom located at thane spread over 3500 sq ft. & 2 workshops
at Thane & Bhiwandi.
SARAIGHAT AGRO: CRISIL Assigns B+ Rating to INR15.8cr Loans
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facilities of Saraighat Agro (SA).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10.8 CRISIL B+/Stable (Assigned)
Working Capital
Term Loan 5.0 CRISIL B+/Stable (Assigned)
The rating reflects the susceptibility of SA to risks related to
the ongoing project and an expected leveraged capital structure.
These weaknesses are partially offset by the extensive experience
of the partners in agricultural-based industries and benefits of
adopting latest machinery in a steady industry.
Analytical approach: Not applicable
Key rating drivers & detailed description
Weaknesses
* Exposure to risks related to ongoing project: SA is scheduled to
commence its project in March 2022. Timely completion and
successful stabilization of operations at the new unit will remain
key rating sensitivity factors. Further, demand risk is expected to
be moderate as the industry is highly fragmented owing to low entry
barriers with small capital and technological requirements. Intense
competitive pressure will constrain scalability, pricing power and
profitability.
* Expected leveraged capital structure: Financial risk profile is
expected to be average, with high gearing and moderate debt
protection metrics. The project is aggressively funded through a
debt-equity ratio of 2:1 time.
Strengths
* Extensive experience of partners: The partners have over a decade
of experience in running various firms and exposure in different
types of industries: agricultural-based, retailing and wholesaling.
Their strong understanding of market dynamics and healthy
relationships with suppliers and customers should support the
business.
* Adoption of latest machinery in steady industry: SA is setting up
a new unit, which is to be equipped with the latest equipment and
technology. Adoption of the latest machinery in the steady rice
mill industry will boost business growth.
Liquidity: Poor
SA is in the project stage and has not yet started generating any
revenue. However, it has tied up with North Eastern Development
Finance Corporation Ltd for completion of the project. The partners
have brought in their share of capital and are expected to extend
timely, need-based funding support.
Outlook: Stable
SA will benefit over the medium term from extensive experience of
its partners.
Rating sensitivity factors
Upward factors
* Timely commencement of the mill, as per schedule
* Turnover of more than INR30 crore, leading to cash accrual of
INR2 crore
Downward factors
* Considerable delay in the commencement of operations
* Sizeable stretch in the working capital cycle
SA was set up as a partnership form on 1st February 2021. The firm
is setting up a modern parboiled rice mill at Kamrup, Assam. It is
expected to commence operations from March 2022.
SIMOLA TILES: CRISIL Assigns B Rating to INR38cr Term Loan
----------------------------------------------------------
CRISIL Rating has assigned its 'CRISIL B/Stable/CRISIL A4' ratings
on the bank facilities of Simola Tiles LLP (STL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL A4 (Assigned)
Cash Credit 15 CRISIL B/Stable (Assigned)
Term Loan 38 CRISIL B/Stable (Assigned)
The ratings reflect leverage financial risk profile, working
capital intensive operations, high bank limit utilisation and
sizable term debt repayment. These rating weaknesses are partially
offset by promoters' extensive experience.
Key Rating Drivers & Detailed Description
Weakness:
* Leverage financial risk profile: Financial risk profile remain
average with Networth of INR22.64 crore and adjusted gearing of
3.05 times as on March 31, 2021. Debt protection metrics also
remain satisfactory as reflected in interest coverage and net cash
accrual to adjusted debt ratio of 2.14 times and 0.04 time,
respectively, in fiscal 2021. In absence of large debt funded
capex, it is expected to improve over the medium term.
* Working capital intensive operations, high bank limit utilisation
and sizable repayment: The operations are working capital intensive
as reflected in GCA days of 224 days in FY21 due to inventory of
137 days and debtors of 99 days. Working capital is expected to
remain over 200 days over the medium term. Subsequently reliance on
bank lines are high. Also, term debt obligation of company expected
in range of INR7-9 crore as against expected accruals of INR10-12
crore over the medium term, indicating lower buffer.
Strengths:
* Extensive experience of the management: The management has
extensive experience in ceramic industry. This has given them an
understanding of the dynamics of the market, and enabled them to
successfully ramp up scale of operation backed by established
relationships with suppliers and customers.
Liquidity: Stretched
The liquidity is stretch with expected accruals over INR10-12 crore
to meet debt obligation of INR7-9 crore over the medium term. The
firm has access to bank limits of INR15 crore, which was utilized
99% on an average over the six months through May 2021
Outlook Stable
CRISIL Ratings believes the STL will continue to benefit from the
extensive experience of its promoter.
Rating Sensitivity factors
Upward factors
* Sustained improvement in net cash accruals over INR11 crore
* Improvement in financial risk profile
Downward factors
* Decline in interest coverage ratio below 1.5 times
* Large debt-funded capex and/or capital withdrawal weakening
TOL/ANW ratio
STL established in 2016 and manufactures glazed vitrified tiles
which are sold under the brand name, Simola. The manufacturing
facility is at Morbi.
SIVA ENGINEERING: CRISIL Reaffirms B+ Rating on INR17cr Loan
------------------------------------------------------------
CRISIL Ratings has reaffirmed the ratings on certain bank
facilities of Siva Engineering Company (Siva), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.34 CRISIL B+/Stable (Reaffirmed)
Secured Overdraft
Facility 17 CRISIL B+/Stable (Reaffirmed)
Working Capital
Term Loan 3 CRISIL B+/Stable (Reaffirmed)
CRISIL Ratings rating's on the bank facility of Siva Engineering
Company (Siva) continues to reflect moderate scale of operation and
susceptibility to risks inherent in tender-based operations in a
highly competitive segment. These weaknesses are partially offset
by the extensive experience of the partners and moderate financial
risk profile.
CRISIL Ratings had on June 24, 2021, upgraded the rating on the
long term bank facility of Siva to 'CRISIL B+/Stable' from 'CRISIL
B-/Stable' while the short term rating is reaffirmed at 'CRISIL
A4'.
Key Rating Drivers & Detailed Description
Weakness:
* Moderate scale of operation: The business risk profile is
constrained by moderate scale of operations in the intensely
competitive infrastructure construction sector. Revenues stood at
INR82 crores for fiscal 2021. Business performance continues to
improve despite disruptions due to COVID backed by healthy order
book position. The moderate scale will continue to limit operating
flexibility.
* Susceptibility to risks inherent in tender-based operations in a
highly competitive segment: Revenue and profitability depend
entirely on ability to win tenders. Also, entities in this segment
face intense competition, and have to bid aggressively to get
contracts, which restricts the operating margin. Also, given the
cyclicality inherent in the construction industry, ability to
maintain profitability through operating efficiency becomes
critical.
Strengths:
* Extensive industry experience of the promoters: The promoters'
experience of over three decades in the infrastructure construction
business which has given them an understanding of the dynamics of
the market, and enabled them to establish relationships with
suppliers and customers.
* Moderate financial risk profile: The financial risk profile is
moderate marked by moderate capital structure, as indicated by
estimated networth and gearing of INR16.26 crore and 1.57 times,
respectively, as on March 31, 2021. Debt protection metrics is also
moderate, as reflected in estimated interest coverage ratio of 2.26
times and net cash accruals to adjusted debt ratio of 0.1 time for
fiscal 2021.
Liquidity Stretched
Bank limit utilization of INR17 crore is moderate at around 70
percent for the past twelve months ended May-2021. Cash accrual is
expected to be in the range of INR3.5 to 4.5 crore which are
adequate against term debt obligation of INR0.67 crore in Fiscal
2022 and INR1 crore in Fiscal 2023.
Outlook Stable
CRISIL Ratings believe Siva will continue to benefit from the
extensive experience of its promoters and their established
relationships with clients.
Rating Sensitivity factors
Upward factors
* Sustenance of revenue and improvement in operating profitability
leading to cash accruals of more than INR2.5 crore
* Sustained improvement in financial risk profile
Downward factors
* Decrease in revenues to less than INR50 crore and/or decline in
profitability leading to lower than expected cash accruals
Deterioration in liquidity and financial risk profile due to
substantial increase in working capital requirement or debt-funded
capex plans.
Siva, set up in 1978 as a partnership firm, constructs bridges,
buildings, and water-treatment plants, primarily in Tamil Nadu. Its
operations are managed by Mr R Muthuswamy and Mr Siva Subramaniam.
STERLING BIOTECH: Liquidator Seeks Bids for Co. as a Going Concern
------------------------------------------------------------------
The Economic Times reports that the liquidator of Gujarat-based
Sterling Biotech, which owes more than INR8,100 crore to lenders,
has initiated a liquidation process of the company as a going
concern at a reserve price of INR548.46 crore.
"The company is the world's sixth-largest manufacturer of Gelatin
and has already seen interest from about a dozen companies," a
person connected with the matter told ET, on the condition of
anonymity. "Even when the company is facing liquidation, it has
retained its licences and approvals and there are about 1,000
people on its rolls."
Sterling Biotech Ltd is the flagship company of the Vadodara-based
Sandesara group. SBL, a listed company, is mainly engaged in the
manufacturing of pharmaceutical grade gelatin which has wide range
of applications such as capsules, tablets, etc. It is one of the
leading manufacturers of pharmaceutical grade gelatin in India with
good presence in U.S.A. which is the largest market for
Pharmaceuticals. It also manufactures Di-calcium Phosphate (DCP, a
by-product of gelatine) and Co-enzyme Q10 (CoQ10).
On June 10, 2018, Sterling Biotech was admitted by the NCLT Mumbai
bench under the corporate insolvency debt resolution process (CIRP)
for defaulting on more than INR5,400 crore of debts to various
lenders, according to LiveMint.
On June 11, 2018, the Mumbai bench of NCLT admitted the insolvency
petition filed by lead lender Andhra Bank against the company.
In May 2019, the Bench of the National Company Law Tribunal (NCLT)
here ordered the liquidation of the company.
The pharmaceutical firm owes around INR5,400 crore to various
lenders, LiveMint disclosed.
SUPER-TECH PLASTPACK: CRISIL Withdraws B Rating on INR4.9cr Loan
----------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Super-Tech Plastpack Private Limited (SPPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.8 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Term Loan 4.9 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with SPPL for
obtaining information through letters and emails dated August 29,
2020 and September 25, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SPPL. This restricts CRISIL
Ratings' ability to take a forward-looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on SPPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
SPPL to 'CRISIL B/Stable Issuer not cooperating'.
Incorporated in 2017, Rajkot, Gujarat-based SPPL, promoted by Mr
Jignesh Barasiya, Mr Sandeep Barasiya, and Mr Amit Vagadiya, has
set up a plant to manufacture plastic caps, which commenced
operations in April 2019.
SURYA PANEL: CRISIL Lowers Rating on INR21cr Loans to D
-------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long term bank loan
facilities of Surya Panel Private Limited (SPPL) to 'CRISIL D' from
'CRISIL B-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Working 3 CRISIL D (Downgraded from
Capital Facility 'CRISIL B-/Stable')
Term Loan 13 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The downgrade reflects the delay in servicing the June 2021 term
debt obligations. This is on account of poor liquidity owing to
weak operating performance due to Covid-19 pandemic. In July 2021,
SPPL has applied for one-time restructuring (OTR) of its loans,
under the Reserve Bank of India's (RBI's) guidelines issued on May
5, 2021, called Resolution Framework 2.0 for Covid-19-related
Stress, enabling lenders to permit one-time restructuring of loans
to corporates (subject to certain conditions) amid the Covid-19
pandemic. Formal approval is awaited from the lender.
The rating continues to reflect the company's modest scale of
operations and below average financial risk profile. These
weaknesses are partially offset by the experience of its
promoters.
Analytical Approach
CRISIL Ratings has continued treating unsecured loans from
promoters as on 31st March 2020 of INR13.95 crore as neither debt
nor equity as it is expected to be retained in the company over the
medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Instance of delay in repayment of term debt obligations: There
has been delays in the payment of term debt obligations on the term
loans due in June 2021. This is on account of poor liquidity owing
to weak operating performance due to Covid-19 pandemic.
* Modest scale of operations: SPPL commenced operations only from
the end of fiscal 2018. The modest scale of operations is reflected
in the turnover of around INR9 crore for fiscal 2020 and it is
estimated to be at INR8.4 crore for fiscal 2021. The scale of
operations is expected to remain modest over the medium term.
* Below average financial risk profile: SPPL's financial risk
profile is below average marked by a leveraged capital structure
and weak debt protection metrics. The networth was negligible on
account of accumulated losses. Interest coverage was below 1, due
to high reliance on debt to fund working capital requirement;
resulting in high interest costs.
Strength:
* Extensive experience of promoters: The promoters have experience
for around 20 years in the construction and building products
industry, which is expected to support the company. The promoters
also hold stake in other group companies engaged in similar
business. The extensive experience of the promoters shall aid the
company's business risk profile over the medium term.
Liquidity: Poor
SPPL's liquidity is poor marked by delay in repayment due in June
2021 and high utilization of the bank limits. The working capital
limits have been utilized at an average of around 90 - 95% for the
6 months ended July 2021. The company continued to report cash
losses for fiscal 2020 and 2021. The promoters have been infusing
unsecured loans. Improvement in liquidity shall remain a key
monitorable over the medium term.
Rating Sensitivity factors
Upward Factors:
* Track record of timely payment for 3 months
* Improvement in interest coverage to more than 2 times
* Improvement in capital structure
Incorporated in December 2014 and promoted by Mr Sudharshan
Hadihalli Byregowda and Mr Rushil Krupesh Thakkar, SPPL is setting
up a manufacturing facility for high-density fiber boards and
medium-density fiber boards.
THRIMATHY CONTRACTING: CRISIL Cuts Rating on INR10cr Loan to D
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Thrimathy Contracting
Company (TCC) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'. However, the management has subsequently started
sharing requisite information, necessary for carrying out
comprehensive review of the rating. Consequently, CRISIL Ratings is
downgraded the ratings on the bank facilities of TCC from 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating' to 'CRISIL D/CRISIL D.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D (Downgraded from
'CRISIL A4 ISSUER NOT
COOPERATING')
Bill Discounting 10 CRISIL D (Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Overdraft Facility 10 CRISIL D (Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
The rating reflects instances of delay by TCC in servicing its
interest obligations towards working capital facilities. The delays
were owing to weak liquidity caused by the delay in clearances of
bills from customers.
The rating continues to reflect exposure to intense competition and
modest scale of operations along with susceptibility to volatility
in raw material prices. These weaknesses are partially offset by
the extensive experience of its proprietor.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in debt servicing: TCC has been delaying debt servicing
owing to weak liquidity. The interest for the month of May and June
2021 remain unpaid as on date. Owing to delays in receivables and
resultant pressure on liquidity the company has been unable to
service debt on time.
* Exposure to intense competition and modest scale of operations:
TCC has to compete with large and small players in the civil
construction segment. Also, entire revenue comes from government
projects which are tender-based, exposing TCC's business profile to
intense competition.
* Susceptibility to changes in raw material prices: Total input
(bitumen and cement) cost increased to around 84% in fiscal 2017
from 79% in the previous year, thereby affecting operating margin.
Strengths:
* Extensive experience of proprietor: Presence of around two
decades has enabled the proprietor and his family to establish
healthy relationship with suppliers. Also, the firm benefits from
its proven track record of executing projects for public entities.
Liquidity: Poor
Bank limit utilization is high around 94 percent for the past
twelve months ended June 2021. The same were over-utilized in some
months owing to intense working capital requirement.
Current ratio are estimated to be healthy at 1.53 times on
March 31, 2022.
Rating Sensitivity Factors
Upward factors:
* Timely debt servicing for at least 90 days
* Sustained improvement in scale of operation by 20% and sustenance
of operating margin, leading to higher cash accruals along with
improvement in working capital cycle
Incorporated in 2001 as a proprietorship concern by late Mr V P
Thrimathy, Malappuram (Kerala)-based TCC is a civil contractor that
primarily constructs roads and bridges for Public Works Department,
Kerala. Operations are managed by proprietor's son, Mr. V. P.
Harshad.
UNITED COTTON: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of United
Cotton Extract Private Limited (UCEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.49 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 2, 2020, placed the
rating(s) of UCEPL under the 'issuer non-cooperating' category as
UCEPL 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. UCEPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email
dated April 18, 2021, April 28, 2021, May 8, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
United Cotton Extract Private Limited (UCEPL) was incorporated in
2007 by Mr. Ghansham M. Bafna, Mr. Naseem M. Yaqub and Mr. Upendra
V. Mehta and is engaged in cotton ginning & pressing (since 2008)
and processing of cotton seeds to produce cotton seed oil and oil
cake since (since 2011). Its plant is located at Malegaon, Nasik
with installed capacity for cotton lint - 4,000 MTPA, cotton seeds
- 7,000 MTPA, cotton seed oil - 700 MTPA and oil cake 5,600 MTPA.
UTTAM GALVA: Ind-Ra Affirms 'D' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Uttam Galva Steels
Ltd's (UGSL) Long-Term Issuer Rating at 'IND D (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise despite requests and follow-ups by the agency. Thus, the
ratings are on the basis of the best available information.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR28.4 mil. Long-term loans (Long-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR4 mil. Fund-based limit (Long-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR24.4 mil. Non-fund-based limit (Short-term) affirmed with
IND D (ISSUER NOT COOPERATING) rating;
-- INR1 mil. Short-term debt (Short-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating;
-- INR2 mil. Standby limits (Short-term) affirmed with IND D
(ISSUER NOT COOPERATING) rating; and
-- INR2 mil. Proposed non-fund-based limit (Short-term) affirmed
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best-available information.
KEY RATING DRIVERS
The affirmation reflects UGSL's continued delays in debt servicing
for over a month, the details of which are not available. UGSL has
been classified as a non-performing asset by its bankers. Further,
the company has not shared the SEBI-mandated no-default statements
with the agency for the last 12 months.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months would lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1985, UGSL manufactures cold-rolled sheets,
cold-rolled close annealed sheets, galvanized plain and corrugated
sheets, and color-coated lines.
VAIBHAVA LAKSHMI: CRISIL Withdraws C Rating on INR20cr Loans
------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Sri Vaibhava Lakshmi Enterprises Private Limited (SVLEPL) on the
request of the company and after receiving no objection certificate
from the bank. The rating action is in-line with CRISIL Rating's
policy on withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 17.2 CRISIL C (ISSUER NOT
COOPERATING; Rating Withdrawn)
Open Cash Credit 2.8 CRISIL C (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with SVLEPL for
obtaining information through letters and emails dated February 22,
2021 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVLEPL. This restricts CRISIL
Ratings' ability to take a forward-looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on SVLEPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
SVLEPL to 'CRISIL C Issuer not cooperating'.
Set up in 2013, SVLEPL is engaged in the poultry business. It has
farms in Nandigama Village, Krishna District (Andhra Pradesh). Mr.
Venkata Narayan and his family are the promoters.
VIRGINIA DEVELOPERS: CRISIL Lowers Rating on INR220cr Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Virginia Developers Private Limited (VDPL) to 'CRISIL
D' from CRISIL B-/Negative.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental 220 CRISIL D (Downgraded from
Discounting Loan 'CRISIL B-/Negative')
The downgrade reflects delay in debt servicing due to weak
liquidity. The downgrade is in line with CRISIL's approach to
Covid-19-related restructuring. CRISIL Ratings had on, 1st July
2021, removed VDPL's rating from watch following rejection of the
company's request for restructuring by lenders. VDPL was expected
to pay off the liabilities to the lenders by July 2021. Since the
company has not been able to pay off liabilities to the lenders
within the grace period offered to it post rejection of request,
the same is being construed as an event of delay by CRISIL
Ratings.
The rating continues to reflect weak financial risk profile,
expected weakening of revenue and profitability and exposure to
contract renewal and interest rate risks. However, the weaknesses
are partly mitigated by extensive industry experience of the
promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: The company has not serviced its debt
obligations post its one-time restructuring (OTR) proposal was
rejected on 28 June 2021. Since majority of the revenue is derived
from rental inflows from the mall, the operating performance of the
company has been impacted resulting in poor liquidity on account of
Covid-19 impact.
* Weak financial risk profile: Gearing was at 33.4 times as of
March 31, 2020, from 29.96 times a year earlier. Interest coverage
and NCATD was at 1.81 times and 0.01 as of March 31, 2020.
* Modest scale of operations and subdued profitability: VDPLs
business profile is constrained by its modest scale of operations.
In fiscal 2021, there were no major inflows from the lease rental
contracts the company had given the economic slowdown because of
Covid-19 and lockdown led restrictions. This is likely to lead to
poor fixed cost absorption and severe impact on the cash accruals.
Strength:
* Extensive industry experience of the promoters: Industry presence
of around two decades of the promoters, their understanding of
market dynamics will continue to support the business
Liquidity: Poor
No major rental income was collected from fiscal 2021 since the
nationwide lockdown announced in April 2020 which led to shutting
down of the mall for patrons. Even though the mall reopened on
September 4, 2020, footfall was low. The company had no major cash
inflows to support repayment obligations as many tenants closed the
rental agreements due to pandemic. This led to low inflows and poor
liquidity, as reflected in the company not being able to service
its debt obligations post rejection of its OTR proposal on 28th
June 2021.
Rating Sensitivity factors
Upward factors:
* Track record of timely repayment of debt for at least 90 days
* Increase in revenue by 50% as well as timely receipt of rentals
* Improvement in business risk profile with better DSCR
VDPL, promoted by Ms. Banu Ramaswamy owns and operates the Virginia
mall in Whitefield, Bengaluru. Operations are managed by the
promoters along with a professional team.
VODAFONE IDEA: Files Review Petition in Apex Court on AGR Dues
--------------------------------------------------------------
Business Standard reports that debt-laden Vodafone Idea (Vi), which
is struggling for survival, moved the Supreme Court on Aug. 10,
seeking a review of its July 23 order that dismissed the petitions
of telecom firms for a re-computation of adjusted gross revenue
(AGR) dues. Airtel, too, is likely to move the court for relief,
sources said.
Business Standard relates that the appeal has been filed even as
the telecom department is considering measures to provide financial
relief for the sector. With an accumulated debt of about Rs 1.8
trillion, Vi is likely to be the most adversely hit by the Supreme
Court verdict, the report says.
According to the report, Vi had calculated its remaining AGR dues
at around Rs21,500 crore after making a payment of INR7,800 crore.
However, the telecom department (DoT) arrived at around INR58,000
crore as the total AGR liability for the firm.
During the hearing, senior counsel Mukul Rohatgi, who appeared for
Vi, had argued that the AGR figures were not cast in stone and that
the Supreme Court had powers to correct the "arithmetic error".
Business Standard relates that the AGR calculation row surfaced
after the Supreme Court on September 1, 2020, allowed telecom
companies to pay their AGR dues to the government in instalments
spread over a 10-year period, beginning with an upfront payment of
10 per cent of the total. The payment timeline started from
April 1, 2021.
Last week, Kumar Mangalam Birla stepped down as non-executive
chairman of Vi after offering to give up his stake in the telecom
company, Business Standard recalls. Himanshu Kapania, a telecom
industry veteran and a nominee of Aditya Birla Group on the board,
will take over the chairman's post.
In his letter written on June 7, Birla said he was willing to offer
his stake to any government or domestic financial entity to keep Vi
afloat, Business Standard relates.
Vodafone Idea Limited operates as a telecom service provider. The
Company offers 2G, 3G, and 4G mobile services, as well as mobile
payments, advanced enterprise offerings, and entertainment.
Vodafone Idea serves customers in India.
WILLIAM INDUSTRIES: CRISIL Cuts Rating on INR7.0cr Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
William Industries Private Limited (WIPL) to 'CRISIL D/CRISIL D'
from 'CRISIL B-/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.4 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 7.0 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term 2.6 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B-/Stable')
The downgrade reflects irregularities in cash credit facility for
more than 30 days because of poor liquidity arising from
deteriorating business risk profile. Revenue declined from INR18.4
crores in fiscal 2020 to INR7.05 crores in fiscal 2021 with an
operating loss estimated at INR1.14 crores as against and operating
margins of 6.41% in fiscal 2020.
The ratings continue to reflect modest scale of operations amid
intense competition, large working capital requirement and weak
financial risk profile. The above weaknesses are partially offset
by longstanding presence of promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in debt servicing: There have been irregularities in cash
credit facility for more than 30 days with utilization in the
account being higher than the available drawing power. These
irregularities have now been regularized in the last week of July
2021.
* Modest scale of operations amid intense competition: The turnover
has remained modest at estimated INR18.4 crore in fiscal 2020. This
has further reduced to INR7.05 crores as estimated for fiscal 2021.
This is mainly because of low demand and COVID-19 pandemic-induced
lockdown and economic disruptions. Also, textile industry being
highly fragmented due to low entry barrier creating high
competition. The company is estimated to have incurred loss at
operating levels of around INR1.14 crores in fiscal 2021. Even in
the earlier three fiscals ending fiscal 2020, operating margins
have fluctuated in the range of 1.2-6.4%, due to volatility in raw
material prices.
* Large working capital requirement: Operations are working capital
intensive, as reflected in estimated gross current asset (GCA) of
over 900 days, which emanates from receivable cycle of over 300
days and inventory of over 500 days estimated as on 31st March
2021. This is estimated on a low turnover base of INR7 crores for
fiscal 2021.
* Weak financial risk profile: Adjusted net worth and total
outside liabilities to adjusted net worth are estimated at INR1.89
crore and over 10 time respectively estimated as on March 31, 2021.
Debt protection metrics are weak with negative interest cover of
2.5 times and negative 0.12 times net cash accruals to adjusted
debt ratio estimated as on March 31, 2021. Financial risk profile
is expected to remain weak over the medium term. However, supported
through INR4.5 crore of equity infusion from promoters in fiscal
2021.
Strength:
* Longstanding presence of promoters: Presence of more than six
decades in the socks manufacturing business has enabled the
promoters to establish their brand: Anchor and forge business ties
with reputed clientele such as D-Mart, Vishal Megamart, Adlabs
IMAGICA and Raymond, etc. Promoters have supported the business
through USL of INR6.3 crore as of March 31, 2021 and equity
infusion of INR4.5 crores in fiscal 2021.
Liquidity: Poor
Liquidity is poor with Net Cash Accruals (NCA) insufficient against
term debt repayments over medium term. Company had minimal
unencumbered cash and bank balance INR0.12 crore on March 31, 2021.
Bank limits were utilized above the drawing power for more than 30
days. Liquidity is partially supported by USL from promoters,
amounting to INR6.3 crore as of March 31, 2021 and equity infusion
of 4.5 crores by the promoters in fiscal 2021.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Improvement in operating performance and liquidity profile
Incorporated in 1958 and promoted by Mr Vivek Juneja and Mr Manoj
Juneja, WIPL manufactures cotton and nylon socks for men, women,
and kids.
WINDALS AUTO: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Windals Auto Private Limited
Unit No. 5/B, 5th Floor
Goldline Business Centre
Near Chincholi Fire Brigade
Link Road, Malad (W)
Mumbai 400064
Maharashtra
Insolvency Commencement Date: August 2, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 29, 2022
(180 days from commencement)
Insolvency professional: Mr. Arun Bagaria
Interim Resolution
Professional: Mr. Arun Bagaria
701, Stanford Building
Junction of S.V. Road and
C D Burfiwala Marg
Andheri (W)
Mumbai 400058
E-mail: arun@bagariaco.com
bagaria.arun@gmail.com
Last date for
submission of claims: August 18, 2021
=========
J A P A N
=========
[*] JAPAN: Corporate Bankruptcies Drops to 50-Year Low
------------------------------------------------------
Reuters reports that the number of corporate bankruptcies in Japan
fell at the fastest rate this year to hit the lowest in 50 years
for a July, thanks to funding support from the government and
banks, a private-sector credit research firm said on Aug. 10.
There were 476 company bankruptcies in July, down 40% from the same
month a year ago, Tokyo Shoko Research showed, pointing to
government help for corporate financing amid a resurgence of the
COVID-19 pandemic, Reuters discloses.
That was less than the previous July low of 482 in 1990, during the
peak of Japan's asset bubble economy, based on comparable data
available since 1972, Reuters relates.
According to Reuters, it was the lowest corporate bankruptcy total
in 50 years for the month of July, the credit research firm said,
with the amount of liabilities at JPY71.5 billion (US$647 million)
down 30% from a year earlier.
However, pandemic-induced bankruptcies amounted to 138 in July,
compared with 98 in the same month a year ago and bringing the
total for January-July to 900, above the roughly 800 recorded in
February-December 2020, it said.
With the prolonged pandemic undermining corporate financing,
analysts don't expect bankruptcies to remain low indefinitely, adds
Reuters.
=====================
N E W Z E A L A N D
=====================
AGWARE LIMITED: Placed in Liquidation Over Inability to Pay Debt
----------------------------------------------------------------
Riley Kennedy at Otago Daily Times reports that a Dunedin taxi
company has been forced into liquidation after failing to pay its
debts. On July 29, AGWare Limited - which traded as Southern City
Taxis - was liquidated in the High Court at Dunedin by the Inland
Revenue Department (IRD).
ODT relates that IRD counsel David Tasker confirmed to the court
that the debt remained unpaid.
According to the report, the company did not make an appearance in
court on July 29 and owner Anthony "Starsky" Ware said in a
statement it was sad to announce the liquidation of the company.
He believed it was one of the few private, locally owned companies
left in New Zealand.
"But due to the changing lifestyle of many after lockdown, the new
relaxed laws in the taxi industry, experiencing a time of costly
mismanagement and being a small company having to provide a living
wage to staff when the work is not constant has just become
unsustainable," the report quotes Mr. Ware as saying. "A
continuing shortage of drivers and a decrease in work resulted in a
Catch-22 situation," he said.
According to the companies office website, the business was first
registered in 2016, ODT notes.
In 2018, Mr. Ware and his wife, Janet Ware, purchased City United
Taxis out of liquidation.
The business would continue to trade.
Vivian Fatupaito and Elizabeth Keen were appointed liquidators, ODT
discloses.
=================
S I N G A P O R E
=================
KITCHEN CULTURE: Unit Sues Former CEO Over Payroll Irregularities
-----------------------------------------------------------------
The Business Times reports that a subsidiary of Kitchen Culture
Holdings has sued its former chief executive officer Lim Wee Li and
two foreign nationals, Du Kun and Wang Yanchao, to recover
SGD520,000 from the trio.
The suit was launched before Singapore's High Court on Aug. 10, BT
notes. The subsidiary, KHL Marketing Asia-Pacific, is alleging
that M. Lim had breached his duties to KHL and conspired with
Mr. Du and Mr. Wang to make these payments to them for a wrongful
purpose and with no justification, the board of Kitchen Culture
said in a bourse filing on Aug. 10, BT relays.
According to BT, the group, which is in the business of supplying
kitchen equipment, had lodged a police report on July 31, 2021, in
relation to "suspected payroll irregularities" concerning two
former employees, which amounted to about SGD520,000.
Kitchen Culture had earlier dismissed Mr. Lim over "grave
misconduct" affecting the company's business. This, it said, was
due to findings in an interim report from Baker Tilly Consultancy,
which had raised questions over potential breaches by officers and
employees of the company.
Catalist-listed Kitchen Culture called for a trading halt on July
7. Its shares last traded at SGD0.08, BT notes.
Singapore-based Kitchen Culture Holdings Ltd. --
https://www.khlmktg.com/ -- sells and distributes imported kitchen
systems, kitchen appliances, wardrobe systems, and household
furniture and accessories under the Kitchen Culture brand name. It
operates through Residential Projects, and Distribution and Retail
segments.
Kitchen Culture reported three consecutive net losses of SGD4.22
million, SGD3.87 million, and SGD4.74 million for years ended June
30, 2018, 2019 and 2020, respectively.
NTEGRATOR INT'L: Receives Statutory Demand for Unpaid Fees
----------------------------------------------------------
The Business Times reports that Ntegrator International on Aug. 11
said it was served a letter of statutory demand for SGD177,432.06
from its previous sponsor, the lawyers of Asian Corporate Advisors,
for alleged fees owed by the company.
BT relates that the amount includes fees related to the company's
annual general meeting on April 28, its extraordinary general
meeting, its acquisition of Fund Joy and its placement of
subscription shares to Zhou Qilin.
It also includes fees for the works for the period May 22 to July
12, and fees related to the termination of sponsorship, in-lieu of
the one-month notice period.
In a bourse filing, Ntegrator said the previous sponsor has
demanded for payment within three weeks of receipt of the letter of
statutory demand - which was served on August 6 - failing which it
may commence winding-up proceedings against the company, BT relays.
BT adds that Ntegrator said it disputes, inter alia, the alleged
fees owed by the company, and is seeking legal advice to determine
its next course of action. It added that it intends to "strenuously
defend any winding-up proceedings if such proceedings are commenced
by the previous sponsor against the company".
Ntegrator International Ltd is a network infrastructure integration
and voice communication systems specialist. The Company specializes
in designing, installing, and implementing data, video, fiber
optic, wireless, and cellular network and voice communications
systems.
ЕТK TRADING: Court to Hear Wind-Up Petition on Aug. 27
--------------------------------------------------------
A petition to wind up the operations of ЕТK Trading Private
Limited will be heard before the High Court of Singapore on Aug.
27, 2021, at 10:00 a.m.
Rosneft Oil Company filed the petition against the company on Aug.
2, 2021.
The Petitioner's solicitors are:
Dentons Rodyk & Davidson LLP
80 Raffles Place
#33-00 UOB Plaza 1
Singapore 048624
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