/raid1/www/Hosts/bankrupt/TCRAP_Public/210813.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, August 13, 2021, Vol. 24, No. 156
Headlines
A U S T R A L I A
CONHUR PTY: First Creditors' Meeting Set for Aug. 23
HAIR-RASS ME: First Creditors' Meeting Set for Aug. 23
HUON VALLEY: First Creditors' Meeting Set for Aug. 23
MAJUN CONSTRUCTION: First Creditors' Meeting Set for Aug. 24
SPOTJOBS HOLDINGS: First Creditors' Meeting Set for Aug. 20
VICTOR SPORTS: First Creditors' Meeting Set for Aug. 20
C H I N A
CHINA EVERGRANDE: Gets Loan Extensions From Several Creditors
CHINA EVERGRANDE: To Sell Stakes in EV and Property Service Units
HUARONG INDUSTRIAL: Fitch Lowers Foreign Currency IDR to 'CCC'
SHINSUN HOLDINGS: S&P Rates New USD Sr. Unsecured Notes 'B-'
SUNSHINE 100: S&P Lowers ICR to 'SD' on Missed Bond Repayment
I N D I A
ADITYASAI COTSPIN: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
ADM SOLAR: CARE Keeps D Debt Rating in Not Cooperating Category
AGARWAL RUBBER: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
AHUJA AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
ARASU HI TECH: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable
EKCON INFRA: CARE Keeps B- Debt Ratings in Not Cooperating
ENERGY DEVELOPMENT: CARE Reaffirms B+ Rating on INR4cr LT Loan
FIREFLY BATTERIES: CARE Keeps D Debt Ratings in Not Cooperating
GAMMON INDIA: CARE Keeps D Debt Ratings in Not Cooperating
GAUTAMBUDH CARS: CARE Keeps B- Debt Rating in Not Cooperating
HABRA SHREE: CARE Assigns B+ Rating to INR13cr LT Loan
HI-TEC METAL: CARE Reaffirms B+ Rating on INR7.66cr LT Loan
JOHNSON JEWELERS: Ind-Ra Hikes Long-Term Issuer Rating to 'B'
KAILASHDARSHAN TILES: CARE Withdraws B+ Rating on Bank Debts
KARAN AUTOMOBILES: CARE Keeps B- Debt Rating in Not Cooperating
KARUNA VENTURES: Ind-Ra Assigns BB- Rating to Non-Convertible Debts
KPG INTERNATIONAL: CARE Keeps D Debt Ratings in Not Cooperating
LALWANI INDUSTRIES: Ind-Ra Moves BB- Rating to Non-Cooperating
LAXAI LIFE: Ind-Ra Moves B- LT Issuer Rating to Non-Cooperating
LOHIA AUTO: CARE Lowers Rating on INR30cr LT Loan to B
MAHAVIR FERRO: CARE Keeps D Debt Ratings in Not Cooperating
MGI INFRA: CARE Assigns D Rating to INR3.35cr LT Loan
NIAGARA METALS: CARE Keeps D Debt Ratings in Not Cooperating
PARAMOUNT CHEMPRO: CARE Keeps D Debt Rating in Not Cooperating
RAJARAMSEVAK MULTIPURPOSE: CARE Keeps D Ratings in Not Cooperating
RAMAKRISHNA ELECTRONICS: CARE Keeps D Rating in Not Cooperating
RATHI HATCHERIES: CARE Lowers Rating on INR9.14cr LT Loan to C
REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating
ROLTA INDIA: NCLT Mumbai Dismisses Withdrawal Plea
RSG DEVELOPERS: CARE Reaffirms B+ Rating on INR6.60cr LT Loan
SAI ESTATE CONSULTANTS: Insolvency Resolution Process Case Summary
SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
SAMIAH INT'L: Insolvency Resolution Process Case Summary
SAYA HOMES: CARE Reaffirms D Rating on INR371.86cr LT Loan
SENBO ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
SHANTI HOSPITAL: CARE Reaffirms D Rating on INR14.27cr LT Loan
SOMNATH FLOUR: CARE Reaffirms B+ Rating on INR0.44cr LT Loan
SPM MARBLES: CARE Lowers Rating on INR7cr LT Loan to B-
SWD INDUSTRIES: CARE Lowers Rating on INR6cr LT Loan to B
SWOSTI PREMIUM: CARE Lowers Rating on INR65cr LT Loan to B
VASAN EYE: Seven Bidders Show Early Interest to Buy Eye Care Chain
VIZEBH COMPOSITECH: CARE Keeps D Debt Rating in Not Cooperating
J A P A N
KYOTO CITY: Reconstruction Plan Calls for Big Spending Cuts
S I N G A P O R E
BESTOFIRE & THERMAL: Creditors' Proofs of Debt Due on Sept. 10
SS MARINE: Court to Hear Wind-Up Petition on Aug. 27
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A U S T R A L I A
=================
CONHUR PTY: First Creditors' Meeting Set for Aug. 23
----------------------------------------------------
A first meeting of the creditors in the proceedings of Conhur Pty
Ltd will be held on Aug. 23, 2021, at 2:00 p.m. via Via
teleconference only.
Marcus William Ayres & Brett Stephen Lord of Kroll were appointed
as administrators of Conhur Pty on Aug. 11, 2021.
HAIR-RASS ME: First Creditors' Meeting Set for Aug. 23
------------------------------------------------------
A first meeting of the creditors in the proceedings of Hair-Rass Me
Pty Ltd will be held on Aug. 23, 2021, at 11:00 a.m. via
teleconference facility.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Hair-Rass Me on Aug. 12, 2021.
HUON VALLEY: First Creditors' Meeting Set for Aug. 23
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Huon Valley
Timber Pty. Ltd. will be held on Aug. 23, 2021, at 3:00 p.m. via
virtual meeting technology.
Barry Kenneth Hamilton of Barry Hamilton & Associates was appointed
as administrator of Huon Valley on Aug. 11, 2021.
MAJUN CONSTRUCTION: First Creditors' Meeting Set for Aug. 24
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Majun
Construction Pty Ltd will be held on Aug. 24, 2021, at 10:00 a.m.
via teleconference facilities.
Mathieu Tribut of GTS Advisory was appointed as administrator of
Majun Construction on Aug. 12, 2021.
SPOTJOBS HOLDINGS: First Creditors' Meeting Set for Aug. 20
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Spotjobs
Holdings Pty Ltd will be held on Aug. 20, 2021, at 11:00 a.m. via
virtual means only.
Shane Leslie Deane and Nicholas Giasoumi of Dye & Co. Pty Ltd were
appointed as administrators of Spotjobs Holdings on Aug. 11, 2021.
VICTOR SPORTS: First Creditors' Meeting Set for Aug. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Victor
Sports Pty Limited will be held on Aug. 20, 2021, at 10:30 a.m. via
virtual meeting technology.
Con Kokkinos and Matthew Kucianski of Worrells Solvency & Forensic
Accountants were appointed as administrators of Victor Sports on
Aug. 11, 2021.
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C H I N A
=========
CHINA EVERGRANDE: Gets Loan Extensions From Several Creditors
-------------------------------------------------------------
Bloomberg News reports that at least three major creditors to China
Evergrande Group have given it more time to repay maturing loans,
according to people familiar with the matter, offering some relief
for the cash-strapped developer as it fends off a string of demands
for unpaid dues.
China Minsheng Banking Corp., China Zheshang Bank Co. and Shanghai
Pudong Development Bank Co. have agreed to give the developer
extensions on some project loans, according to the people familiar,
who asked not to be identified as the discussions are private,
Bloomberg relates. Zheshang Bank pushed till year-end the repayment
of two loans due in July and August, one of the people said.
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.
CHINA EVERGRANDE: To Sell Stakes in EV and Property Service Units
-----------------------------------------------------------------
Bloomberg News reports that China Evergrande Group's stock and
bonds jumped Aug. 11 after the company said it's in talks to sell
stakes in two of its units, potentially injecting fresh funds into
the cash-strapped property firm.
Bloomberg relates that the discussions involve "several independent
third-party investors," the company said in a statement to the Hong
Kong exchange on Aug. 10.
Talks involve Evergrande stakes in its electric vehicle start-up
and property services units.
Evergrande closed 7.8% higher in Hong Kong, bringing its three-day
gain to 21.7% on expectations the world's most-indebted developer
will ease its cash crunch with asset sales, Bloomberg discloses.
The electric vehicle and property services stocks also rose for a
third day. The firm's 8.75% dollar bond due 2025 rose 2 cents on
the dollar to 45 cents, Bloomberg-compiled prices show.
According to Bloomberg, the troubled property giant has been
offloading assets and listing units in an attempt to stave off a
liquidity crisis, saddled with more than $300 billion in
liabilities.
Evergrande's equity and bond holders have been rattled in recent
weeks by a slew of reports about wary banks and unpaid bills to
suppliers.
Last week, a Caixin report saying that creditor lawsuits against
Evergrande would be consolidated triggered another slump in the
developer's bonds, Bloomberg says.
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.
HUARONG INDUSTRIAL: Fitch Lowers Foreign Currency IDR to 'CCC'
--------------------------------------------------------------
Fitch Ratings has downgraded Huarong Industrial Investment &
Management Co., Ltd.'s Long-Term Foreign-Currency Issuer Default
Rating (IDR) to 'CCC' from 'BB'. Fitch has also downgraded the
rating on the outstanding senior unsecured bonds issued by Huarong
Universe Investment Holding Limited and guaranteed by Huarong
Industrial to 'CCC'/'RR4' from 'BB'. The ratings have been removed
from Rating Watch Negative (RWN).
The downgrade was driven by a revision in Huarong Industrial's
Standalone Credit Profile (SCP) to 'ccc' from 'ccc+'. This was due
to an ongoing lack of a refinancing plan for its capital market
instruments maturing in 2022, and the reassessment of the linkage
with parent China Huarong Asset Management Co., Ltd. (BBB/RWN) to
'Weak' from 'Strong' under Fitch's Parent and Subsidiary Linkage
(PSL) Rating Criteria.
Fitch thinks that Huarong Industrial's strategic ties with the
parent have weakened, as there is no information to ascertain
Huarong Industrial's status as a core subsidiary after China
Huarong embarked on the first round of asset sales on 2 August
2021, and no certainty that any government support to China Huarong
will flow through to Huarong Industrial.
KEY RATING DRIVERS
Weakening Linkage with Parent: The revision of the parent and
subsidiary linkage to 'Weak' from 'Strong' was due to Fitch's
revision of the strategic ties to 'Weak' while maintaining Fitch's
assessment of 'Moderate' legal ties and 'Strong' operational ties.
Huarong Industrial is now rated at its scp level, from a previous
three notches below the parent's IDR.
Fitch believes there is growing uncertainty over the parent's
intention to support Huarong Industrial's liquidity needs in the
future. Fitch has been unable to confirm that Huarong Industrial
remains a core subsidiary of China Huarong as China Huarong embarks
on an asset-disposal plan, shedding stakes in some of its non-core
subsidiaries. This uncertainty is heightened by the fact that China
Huarong's standalone profile is also weak, meaning any support for
Huarong Industrial would be likely to have to flow through from any
potential support that the parent receives from the government.
No Refinancing Plan: Fitch estimates that the company's
capital-market instruments - including private notes, euro bonds
and debt-financing plans - reached more than CNY6 billion by
end-1H21. While there's no refinancing plans for the capital-market
debt, Fitch expects other external financing including bank loans
will continue to be refinanced or rolled over due to Huarong
Industrial's status as a subsidiary of a government-owned entity.
Weak Credit Profile: Huarong Industrial has no commercially run
homebuilding business, and relies entirely on China Huarong for its
operational and financial health - more than 60% of its total debt
consists of shareholder loans from the parent. It has a much
smaller scale and higher leverage than Chinese homebuilding peers.
Huarong Industrial generated CNY1.6 billion in contracted sales in
2019 (2018: CNY1.0 billion). Total land bank is 4.6 million sq m,
of which half is a project in a Tier 3 city in Hunan province.
DERIVATION SUMMARY
Huarong Industrial is rated at its SCP of 'ccc', which reflects its
weak business and financial profile, and rising refinancing risk.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Around CNY1 billion contracted sales in 2021;
-- No land acquisitions in 2021.
Recovery Rating Assumptions
-- The recovery analysis is based on Huarong Industrial's 1H20
financials as no updated financials are available;
-- The analysis assumes that Huarong Industrial will be
liquidated in a bankruptcy as it is an asset-trading company;
-- Fitch has assumed 10% administration claims.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during a bankruptcy or insolvency proceeding and
distributed to creditors.
-- Advance rate of 60% to excess cash which is calculated by
available cash less the higher of three-month attributable
sales or trade payables. This treatment is in line with other
Chinese developers.
-- Advance rate of 80% applied to net property inventory. Huarong
Industrial generates an exceptionally high gross profit margin
of above 40% and EBITDA margin of above 30%. Even if the
projects are relatively concentrated in Tier-3 cities in one
to two regions, the projects are mostly distressed property
projects acquired at deep discounts, which justifies the high
advance rate.
-- Advance rate of 70% applied to accounts receivables. This
treatment is in line with other Chinese developers.
-- Advance rate of 50% applied to property, plant and equipment
as these are property assets that can be sold to repay debt
when needed. This treatment is in line with other Chinese
developers.
-- Advance rate of 72% applied to the book value of investment
properties based on a 6.5% rental yield after considering the
rental yield and locations of these assets.
-- Advance rate of 0% applied to restricted cash as Fitch has no
information about the nature of the restricted cash.
-- Advance rate of 0% applied to CNY16 billion financial assets
and other receivables as Fitch does not have sufficient
information to verify the valuation and details of the assets.
-- Offshore bonds are all directly guaranteed by Huarong
Industrial, so they are ranked at the same level as onshore
senior unsecured debt.
-- The allocation of value in the liability waterfall results in
a recovery corresponding to 'RR4' for the offshore senior
unsecured guaranteed notes.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Evidence of liquidity stress, for instance lack of a plan to
address capital market maturities
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Evidence of improved liquidity and that Huarong Industrial
remains a strategic subsidiary of China Huarong.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
ISSUER PROFILE
Huarong Industrial is China Huarong's property-development
platform, and one of three "first-level" subsidiaries of China
Huarong's distressed asset-management business. It develops
distressed property projects and provides property-related advisory
to the parent.
ESG CONSIDERATIONS
ESG - Management Strategy: Huarong Industrial has an ESG Relevance
Score of '5' for management strategy due to the uncertainty over
the asset risk associated with its parent's non-core investment
portfolio and the execution of its structuring strategy. The
scoring is in line with the parent's, and has a negative impact on
the credit profile and is highly relevant to the rating.
ESG - Governance: Huarong Industrial has an ESG Relevance Score of
'5' for governance structure due to the weakness of its parent's
governance, leading to auditing issues. The scoring is in line with
the parent's, and has a negative impact on the credit profile and
is highly relevant to the rating.
ESG - Financial Transparency: Huarong Industrial has an ESG
Relevance Score of '5' financial transparency due to the poor
timeliness of financial disclosure at the subsidiary and the
parent. The scoring is in line with the parent's, and has a
negative impact on the credit profile and is highly relevant to the
rating.
ESG Commentary
Huarong Industrial has an ESG Relevance Score of '5' for management
strategy, governance structure and financial transparency, to be
line with the parent's score. The factors have a negative impact on
the credit profile and are highly relevant to the rating.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.
SHINSUN HOLDINGS: S&P Rates New USD Sr. Unsecured Notes 'B-'
------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issue rating to the
proposed U.S.-dollar-denominated senior unsecured notes by Shinsun
Holdings (Group) Co. Ltd. (B/Stable/--). The proceeds will be used
for refinancing the China-based company's existing offshore debt,
in accordance with company's Sustainable Finance Framework. The
issue rating is subject to its review of the final issuance
documentation.
S&P rates the proposed senior notes one notch below the issuer
credit rating on Shinsun to reflect the substantial structural
subordination risk. As of Dec. 31, 2020, Shinsun's capital
structure consisted of about Chinese renminbi (RMB) 41.9 billion in
secured debt, RMB4.4 billion in unsecured debt, and RMB944 million
in guarantees. Since Dec. 31, 2020, Shinsun has issued US$200
million senior unsecured notes; the issuance has no impact on our
subordination risk assessment because its secured debt ratio of
88.7% is still well above its notching down threshold of 50%.
The new issuance will not significantly affect Shinsun's credit
profile because the proceeds will be used to refinance existing
debt. S&P expects Shinsun will spend 50%-55% of its total
contracted sales on land replenishment in 2021-2022, resulting in a
slight increase in its debt-to-EBITDA ratio to 6.3x-6.5x during
that time, compared with 5.7x in 2020. The company is on track to
meet our projected contracted sales target of RMB83 billion-RMB85
billion in 2021, after achieving RMB49.6 billion of contracted
sales in the first six months of 2021. This is reflected in the
stable outlook on Shinsun.
SUNSHINE 100: S&P Lowers ICR to 'SD' on Missed Bond Repayment
-------------------------------------------------------------
S&P Global Ratings, on Aug. 12, 2021, lowered its long-term issuer
credit rating on China-based residential and commercial property
developer Sunshine 100 China Holdings Ltd. to 'SD' from 'CCC-'.
S&P said, "We lowered the rating because Sunshine 100 has not
repaid principal and interest of about US$52.4 million on its
convertible bond at maturity on Aug 11, 2021. This was due to a
delay in the receipt of funds under certain loan agreements.
"We do not expect Sunshine 100 to be able to repay the bond within
five business days (what we consider to be an allowable grace
period), given its exceptionally weak liquidity.
"Meanwhile, we do not anticipate a general default to be triggered
because the company is finalizing alterative short-term financing
to repay the principal and interest within 10 business days. As
such, we believe other creditors potentially affected by
cross-default provisions are unlikely to seek accelerated
repayments. The delayed amount is small compared to Sunshine 100's
overall obligations.
"We will review Sunshine 100's credit profile after the repayment
and once we reassess the company's liquidity and financial
standing. We expect Sunshine 100's exceptionally tight liquidity to
persist, given its large short-term debt, compared with its weak
cash inflow. We estimate the company had short-term debt of Chinese
renminbi (RMB) 12 billion as of end-June 2021. This amount is about
half of Sunshine 100's total debt and is significantly higher than
the company's estimated RMB2 billion in cash.
"Sunshine 100 will face a larger maturity of US$170 million in
December and the company's ability to raise funds or dispose assets
is highly uncertain, in our opinion."
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I N D I A
=========
ADITYASAI COTSPIN: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Adityasai Cotspin
Pvt. Ltd.'s Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR170 mil. Fund-based working capital limits migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 3, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2008, ACPL is promoted by the Warangal,
Telangana-based Reddy family and is engaged in cotton ginning and
pressing. The daily operations are managed by B Ravinder Reddy and
Veda Prakash. The company's facility in Warangal has capacity of
350 bales per day.
ADM SOLAR: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of ADM Solar
Power And Infrastructure Private Limited (ASPIPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.15 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated June 1, 2020, had placed the
ratings of ASPIPL under the 'Issuer Non-cooperating' category as
the company had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. ASPIPL continues to
be non-cooperative despite requests for submission of information
through phone calls and e-mails dated April 17, 2021, April 27,
2021 and May 7, 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.
Delhi-based ASPIPL was incorporated in April, 2017 and commenced
its commercial operations in March 2018. It is currently being
managed by Mr. D.K. Yadav and Mr. Mohit Yadav. The company is
engaged in manufacturing of solar panels, Junction box, batteries,
wires etc. It also provides installation and annual maintenance
services.
AGARWAL RUBBER: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Agarwal Rubber
Limited's (ARL) Long-Term Issuer Rating at 'IND BB+'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR500 mil. Fund-based working capital limits affirmed with
IND BB+/Stable/IND A4+ rating; and
-- INR330 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects ARL's continued medium scale of
operations, as indicated by the revenue of INR2,000.68 million in
FY21 (FY20: INR1,584.79 million). The revenue improved in FY21 due
to an increase in the selling price of the tires. Ind-Ra expects
the company's revenue to remain in line in FY22 due to repeated
orders from the domestic and export market. At end-1QFY22, ARL had
had booked a revenue of INR376.6 million. As of June 2021, the
company had orders worth INR683 million that are scheduled to be
executed by October 2022. As per the management, there were no
operations in April 2020 due to pandemic-led lockdown, and
operations were resumed in May 2020. The figures for FY21 are
provisional in nature.
The ratings reflect the continued modest credit metrics due to the
modest EBITDA margins. Ind-Ra expects the overall credit metrics to
improve in FY22, backed by the absence of any debt-funded capex
along with a likely improvement in the margins. Despite an increase
in the absolute EBITDA to INR173.55 million in FY21 (FY20:
INR165.22 million), the interest coverage (operating EBITDA/gross
interest expense) weakened to 1.68x (1.83x) due to an increase in
the interest expenses to INR103.29 million (INR90.09 million). The
net leverage (total debt with equity credit/operating EBITDA)
improved to 4x in FY21 (FY20:4.4x) due to a decline in the debt
levels.
The ratings continue to factor in the company's modest EBITDA
margins on account of the intense competition in the industry.
During 3MFY22, ARL reported an EBITDA margin of 9%; in FY22, the
management expects to record EBITDA margins of 10%-11%. ARL's
EBITDA margin dipped to 8.67% in FY21 (FY20: 10.43%) due to an
increase in the operating expenses and the need for repair and
maintenance of plant and machinery. The RoCE continued to be 9% in
FY21 (FY20: 9%).
Liquidity Indicator - Stretched: Ind-Ra expects the net cash
conversion cycle to remain stretched in FY22 on account of the high
debtor and inventory days. Ind-Ra believes the receipt of an
insurance claim worth INR350 million (related to a fire accident
that occurred in December 2019), which has been delayed due to
COVID-19-led disruptions, will be essential to improve the
company's liquidity profile; the management expects to receive the
claim by September 2021. ARL's average utilization of its working
capital limits was 97.4% over the 12 months ended June 2021. The
working capital cycle remained elongated but improved to 164 days
in FY21 (FY20: 230 days) on account of a decline in the inventory
holding period to 151 days (189 days) and an increase in the
creditor days to 95 days (69 days). The cash flow from operations
turned positive at INR117.55 million in FY21 (FY20: negative
INR57.72 million) owing to the increase in the operating EBITDA and
improvement in the working capital cycle.
ARL had availed the Reserve Bank of India-prescribed debt
moratorium in FY21. In addition, the company had availed a COVID-19
emergency loan of INR50 million in May 2020, and an additional
credit line of INR99 million in July 2021, which were used to pay
off the outstanding payments against creditors and letters of
credit, respectively.
The ratings, however, benefit from ARL's diversified geographical
presence. The company caters to both domestic and export markets,
which helps it to withstand any slowdown in either of the markets.
The export market contributed about 46% to ARL's revenue in FY21
(FY20: 48%), and the domestic market accounted for the balance 54%
(52%)
The ratings are also supported by ARL's promoters' experience of
more than three decades in the manufacturing of tires and tubes.
RATING SENSITIVITIES
Negative: A sharper-than-expected decline in the revenue and
operating profitability, and delay in the receipt of the insurance
claim, leading to increased likelihood of deterioration in the
liquidity profile and credit metrics, will lead to a negative
rating action.
Positive: An increase in the revenue and operating profitability,
along with the timely receipt of the insurance claim, leading to an
improvement in the liquidity profile and credit metrics, with the
interest coverage exceeding 2.5x, all on a sustained basis, will
lead to a positive rating action.
COMPANY PROFILE
Incorporated in 1983, ARL manufactures and sells tires and tubes.
Its manufacturing unit is in Patancheru, Medak District, near
Hyderabad. The company sells its products under the brand names,
ARL and Maruti.
AHUJA AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ahuja
Automobiles (AA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.30 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated July 21, 2020, had placed the
ratings of AA under the 'Issuer Non-cooperating' category as the
firm had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. AA continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated June 6, 2021, June 16, 2021
and June 26, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Established in 2008, Ahuja Automobiles (AA) is a partnership entity
based in Amritsar, Punjab. The entity is currently being managed by
Mr Harish Ahuja, Mr Gagan Ahuja and Mrs Madhu Ahuja, sharing profit
and loss in an equal proportion. The entity is operating 3S
facilities (Sales, Service and Spares) of Hyundai Motor India
Limited (HMIL), with an authorized dealership of entire range of
passenger vehicles (PV), since 2008. AA operates through its three
showrooms-cum-workshops in Amritsar and Distt. Tarn Taran, Punjab.
ARASU HI TECH: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned Arasu Hi Tech Infra
Private Limited a Long-Term Issuer Rating of 'IND B+'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR50 mil. Proposed term loan* assigned with IND B+/Stable
rating;
-- INR100 mil. Proposed fund-based facilities* assigned with IND
B+/Stable/IND A4 rating; and
-- INR50 mil. Proposed non-fund-based facilities* assigned with
IND A4 rating.
*unallocated
KEY RATING DRIVERS
The ratings reflect Arasu's small-scale operations with a revenue
of INR6 million during FY20, owing to the nascent stage of its
operation; the company started commercial operations only in
January 2020. In FY21, its first full year of operations, AHIPL
booked a revenue of INR150.7 million, due to an increase in the
order execution. At end-March 2021, the company has an outstanding
order book of INR782 million (5x of FY21 revenue), to be executed
before mid-FY23. Ind-Ra expects the company's scale of operations
to remain small over the medium term, despite an improvement in
revenue backed by high order book value, as the company has started
its operations recently.
Liquidity Indicator - Poor. Arasu does not have term loans or
fund-based facilities. However, Ind-Ra expects the company's
working capital requirements to increase significantly over the
short term to execute the ongoing projects. The company's cash
flow from operation stood at INR24.38 million in FY21 and its
absolute EBITDA came in at INR12.4 million (3MFY20: INR0.5
million). The working capital cycle improved to negative 67 days in
FY21 (FY20: 17 days) due to an improvement in the creditor days to
97 (nil) . The company had a cash balance of INR31.9 million in
FY21 (FY20: INR0.26 million).
The ratings factor in Arasu's healthy EBITDA margin of 8.2% in FY21
(FY20: 9.1%) with a return on capital employed of 105%. The return
on capital was high owing to the lower capital infused in FY21 and
the company's zero debt position. Ind-Ra expects the margin will
remain healthy in FY22, despite falling yoy owing to the increased
execution of low-margin subcontracting orders.
The company has comfortable credit metrics with an interest
coverage (operating EBITDA/interest coverage) of 1,550x in FY21
(FY20: nil) and a net leverage ((adjusted net debt/operating
EBITDA) of negative2.5x (negative 0.4x), as it did not have any
debt at FYE21 and only miniscule interest outflow due to bank
charges. Ind-Ra expects the credits to deteriorate over the near
term, owing to a drawdown of working capital limits.
The rating is supported by the promoters' experience of over two
decades in the construction of buildings and other infrastructure
development works.
RATING SENSITIVITIES
Negative: Lower-than-expected scale of operations and credit
metrics with the interest coverage falling below 1.5x, on a
sustained basis, or a further weakening of the liquidity position
will be negative for the ratings.
Positive: A substantial improvement in the scale of operations
while maintaining the EBITDA margin, leading to a sustained
improvement in the credit metrics and liquidity improvement, will
be positive for the ratings.
COMPANY PROFILE
Incorporated as a private limited in 2020, Arasu is engaged in
civil construction work such as building of colleges, hospitals and
so on.
EKCON INFRA: CARE Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ekcon Infra
projects (EIP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank
Facilities 3.00 CARE A4; ISSUER NOT
COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 1, 2020, placed the
rating(s) of EIP under the 'issuer non-cooperating' category as EIP
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. EIP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 17, 2021, May 27, 2021, June 6, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Established in 1993, M/S. EKCON Infra projects (erstwhile E. A.
Khan and Sons) got its current name in February 2, 2016 is engaged
in the civil engineering and construction (new construction of
buildings such as schools, fire brigades, staff quarters along with
structural repair activities) for Municipal Corporation of Greater
Mumbai (MCGM) (accounting for 100% of the total income in FY17
through bidding process and is registered 'AA Class' (scale of AA
to D) contractor for buildings with MCGM. The key raw material i.e.
cements and steel are sourced from local suppliers.
ENERGY DEVELOPMENT: CARE Reaffirms B+ Rating on INR4cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Energy Development Company Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 4.00 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 7.00 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of Energy Development
Company Limited continue to be constrained by volatility in revenue
streams, weak financial performance in FY21, moderate debt coverage
indicators, working capital intensive nature of operations and
significant exposure to group entities. The ratings, however,
derive strength from experience of the company in power generation,
diversified revenue stream albeit growing reliance on generation
division, comfortable capital structure and presence of long-term
power purchase agreements.
Key Rating Sensitivities
Positive Factors:
* Stable power generation in the power plants and realizing the
dues timely.
* Ability of the company to execute orders in contracts division in
timely manner and timely realization of payments from contracts
division
* Substantial reduction in Group exposure
Negative Factors:
* Further substantial increase in exposure to group companies
* Any inordinate delays in receipt of payments from
counter-parties
Detailed description of the key rating drivers
Key Rating Weaknesses
* Variability in revenue streams: EDCL faces variability in hydro
and wind power generation as the same is subject to vagaries of
nature. The units generated from Hydro & Wind power improved to
32.82 million units in FY21 compared to 28.93 million units in
FY20. In FY21, the revenue from the contract division declined by
63% to INR0.69 crore from INR1.87 crore in FY20 on account of
slowing down of construction activities due to outbreak of COVID
pandemic. Further, going ahead, revenue from contract division is
expected to be muted since the company has not bid for any new
projects currently and focused on executing projects in hand.
* Weak financial performance albeit improvement in FY21: The total
operating income witnessed y-o-y improvement of 6% from INR10.77
crore in FY20 to INR11.37 crore in FY21 on account of increase in
units generated from 28.93 mn units in FY20 to 32.82 mn units in
FY21 along with increase in average tariff from INR3.08/unit in
FY20 to INR3.25/unit in FY21. The improvement in units generated
was on account of good monsoon season as compared to previous year.
The company reported operating profit (PBILDT) of INR1.01 crore in
FY21 visà-vis operating loss of INR1.85 crore in FY20. The company
incurred net loss of INR0.50 crore in FY21 vis-a-vis net loss of
INR3.01 crore in FY20. During FY21, the company earned cash profit
(GCA) of INR2.24 crore vis-a-vis nil debt repayment
obligation.
* Elongated working capital cycle albeit improvement in FY21: The
operating cycle of the company is elongated however improved in
FY21 to 685 days vis-à-vis 851 days in FY20 on account of decline
in average collection period from 1174 days in FY20 to 1122 days in
FY21. The receivables beyond 180 days stood at INR34 cr as of March
31, 2021 which constitutes 95% of the total receivables of INR35.80
crore. Majority of receivables outstanding for more than 6 months
pertain to projects in construction sector which were executed in
the last few years. Generally, the retention money is held for one
to one and half years.
* Significant exposure to group entities: EDCL's exposure to its
subsidiary companies by way of investments and loans & advances
increased from INR108.97 crore as on March 31, 2020 to INR 114.39
cr as on March 31, 2021 accounting for 71% of its tangible net
worth as on that date. Majority of the investment was in Ayyappa
Hydro Power Ltd (AHPL) which has completed a 15 MW Hydropower
project in Kerala in May 2017.
Other than the fund-based exposure, EDCL has provided corporate
guarantee of INR95 crore for term loan availed by Ayappa for
setting up the project; the outstanding of which being INR81.98
crore as on March 31, 2021. Moratorium has been availed on IREDA's
term loan installment under Covid-19 as per RBI guidelines for
March 2020 to August 2020.
EDCL had entered into an agreement with Essel Infraprojects Ltd
(EIL) for divesting 76% of its stake in its subsidiaries setting up
projects in Uttarakhand and Arunachal Pradesh. EIL was supposed to
invest in these 15 Hydro power projects earlier held by EDCL
through its various subsidiaries. The project has been kept on
hold.
Key Rating Strengths
* Experience of the company in power generation business: EDCL is
engaged in the power generation from renewable sources (hydro and
wind) as well as execution of construction contracts since 1996.
The company has experienced management personnel on its board and
has demonstrated a track record in operating hydel power plants. In
the absence of the chairman of the company, Shri Amar Singh who
passed away on August 1, 2020 due to prolonged illness, Mrs.
Pankaja Singh Kumari, wife of Mr. Singh has become actively
involved with the day to day affairs of the company along with Mr.
Vinod Kumar Sharma, an Executive Director of the company.
* Revenue concentration: The company primarily operates in 2
business segments- Engineering (Construction) and power Generation
segment. It is currently operating 15MW of hydro power plants and
3MW of wind power plants. The engineering or the construction
sector includes construction of bridges, roads, power plants,
operation & maintenance of power plants etc. and providing
consultancy services. However, the company has not bid for new
contracts in Engineering/Construction sector in recent past. The
breakup of revenues from the various segments was 94% in FY21 (83%
in FY20) from power division and 6% in FY21 (17% in FY20) from
contract division.
* Presence of long term power purchase agreements with state
utilities: EDCL has in place long-term power purchase agreements
(PPAs) with the state utilities for the hydro and wind power
generation capacity which ensures steady revenue from sale of
power. During FY21, EDCL entered into PPA with CESIPL for supply of
electricity at a rate of INR3.95 per unit for 9 MW. The Agreement
with CESIPL came into effect from Apr 01, 2021 and shall be valid
unless mutually terminated with a minimum lock-in term of 12 months
from April 1, 2021.
* Comfortable capital structure; albeit moderate debt coverage
indicators: Debt-equity ratio moderated slightly and stood at 0.13x
as on March 31, 2021 (0.11x as on March 31, 2020) due to marginal
increase in unsecured loan and decrease in net worth due to loss
incurred in FY21. The overall gearing ratio stood at 0.13x as on
March 31, 2021. However, on adjustment in networth with respect to
long pending receivables which are outstanding for more than 180
days, the adjusted overall gearing ratio stood at 0.17x as on March
31, 2021 against 0.14x as on March 31, 2020. In spite of capital
structure continuing to remain comfortable, the debt coverage
indicators are weak due to negative cash accruals.
Liquidity – Stretched
The liquidity profile is weak with low cash balance and stuck
debtors. However, the company does not have any term loan
obligations and liquidity is supported through unsecured loans from
related parties. The company reported cash accruals of Rs. 2.24 cr
in FY21 vis-à-vis nil debt repayment obligation in FY21. Average
fund based utilization for 11 months ended Feb 28, 2021 remained
comfortable at ~34%.
Energy Development Company Limited (EDCL), incorporated in 1995, is
engaged in power generation from renewable sources (hydro and
wind), contract management in the construction sector (construction
of bridges, roads, power plants, operation & maintenance of power
plants etc.) and providing consultancy services in setting up hydro
power plants (engineering, designing, project management services,
etc). It is currently operating 15MW of hydro power plant in
Harangi, Karnataka and 3MW of wind power plant in Hassan and
Chitradurga, Karnataka. Further, the company has operational hydro
power capacity in Kerala of 15 MW and 7 MW in its subsidiaries
Ayyappa Hydro Power Ltd (AHPL) and EDCL Power Projects Ltd (EPPL)
respectively. EDCL is promoted by Late Shri Amar Singh, who was
actively involved in the management of the company. After the
demise of Shri Amar Singh on August 02, 2020, Mr. Vinod Kumar
Sharma, Executive Director in the company, who looks after the day
to day affairs, has been joined by Mrs. Pankaja Kumari Singh, wife
of Mr. Amar Singh.
FIREFLY BATTERIES: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Firefly
Batteries Private Limited (FBPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 23.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 8.70 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 16, 2020, placed the
rating(s) of FBPL under the 'issuer non-cooperating' category as
FBPL 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. FBPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 2, 2021, May 12, 2021, May 22, 2021.
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).
Ahmedabad (Gujarat) based, FBPL was established in the year 2011 as
a private limited company. FBPL (erstwhile known as Epsilon
Batteries Private Limited) is engaged in the manufacturing of
conventional lead-acid battery & carbon-foam battery with an
installed capacity of 300,000 KWH storage batteries per annum.
These batteries find application in automobile industry, renewable
energy and industrial sector such as telecom and hospitality. FBPL
is managed by experienced directors Mr. Jinal Shah & Mr. B.K.
Vaishya.
GAMMON INDIA: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gammon
India Limited (GIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 949.05 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 9,092.78 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Non Convertible 324.00 CARE D; ISSUER NOT COOPERATING;
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 23, 2020, placed the
rating(s) of GIL under 'issuer noncooperating' category as GIL had
failed to provide information for monitoring of the rating. GIL
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls dated June
1, 2021, June 22, 2021 and June 28, 2021 among others.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings consider the ongoing delays in debt servicing by the
company.
Detailed description of the key rating drivers
At the time of the last rating on June 23, 2020, the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies)
Key Rating Weakness
* Delays in Debt Servicing: There are delays in servicing of debt
obligations owing to delayed execution of projects, delays in
recoveries from customers and huge debt burden leading to
constrained liquidity position of the company.
Incorporated in 1922, GIL is the flagship company of the Gammon
group and offers services covering the whole gamut of the civil and
construction activities. GIL undertakes construction of roads,
bridges, flyovers, power plants, chimneys and cooling towers,
cross-country pipelines, structures for hydro-electric power
projects, buildings and factories. The company has also been
present in the infrastructure project development space since 2001
through GIL's subsidiary Gammon Infrastructure Projects Limited
(GIPL, 74.98% stake), which executes public-private partnership
based projects in the road, port and power sectors through
project-specific special purpose vehicles.
GAUTAMBUDH CARS: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gautambudh
Cars Private Limited (GCPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 1, 2020, placed the
rating(s) of GCPL under the 'issuer non-cooperating' category as
GCPL 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. GCPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated May 17,
2021, May 27, 2021, June 6, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Noida (Uttar Pradesh) based, Gautambudh Cars Private Limited (GCPL)
was incorporated in March, 2013 and commenced its commercial
operations in September, 2013. The company is currently being
managed by Mr. Parveen Goel and Mr. Rama Murti. GCPL is an
authorized dealer of Ford India Limited (FIL) vehicles since 2013.
The company operates though its 3S (Sales, spare service) facility
and is engaged in the sale of passenger vehicle. Rama Motors
Services Private Limited (an authorized dealer of Ford India
Limited; est. in September, 2000) and Sharnam Motor Services
Private Limited (authorized dealer of Chevrolet India; est. in
September, 2000) are the other associate concerns of GCPL engaged
in the business of auto dealership.
HABRA SHREE: CARE Assigns B+ Rating to INR13cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Habra
Shree Laxmi Food Products Private Limited (HSLF) as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 13.00 CARE B+; Stable Assigned
Short Term Bank
Facilities 1.00 CARE A4 Assigned
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of HSLF are constrained
by its project implementation risk, regulated nature of industry,
seasonal nature of availability of raw material and exposure to
vagaries of nature and intensely competitive industry. However, the
ratings drive strength from the experienced promoters and close
proximity to raw material sources.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Ability to complete the on-going project without any cost and
time overrun and thereafter derive benefit from the
aforesaid project as envisaged on a sustained basis.
Negative Factors - Factors that could lead to negative rating
action/downgrade:
* Delay in project implementation beyond three months from the
envisaged date also leading to cost overrun or under
achievement of projected turnover and profit levels beyond 30% on a
sustained basis.
Detailed description of the key rating drivers
Key Rating Weakness
* Project implementation risk: The company is currently setting up
its rice milling and processing plant at North 24 Parganas, West
Bengal with an estimated project cost of INR12.23 crore which is
estimated to be funded through term loan of INR6.30 crore and
balance of INR5.93 crore through promoter's contributions. The
financial closure for the debt portion of the project has already
been tied up. Therefore, the funding risk for the debt portion of
the project has already been taken care. Moreover, the company has
spent only INR3.92 crore in the aforesaid project till July 20,
2021 funded through term loan of INR1.67 crore and balance though
promoter's contribution. Accordingly, the project implementation
risk exits. Going forward, the ability of the company to complete
the on-going project without any major cost and time overrun and
thereafter its ability to derive benefit out of it as envisaged
will remain crucial for the company. Moreover, the commercial
operation of the plant is estimated to commence from December
2021.
* Regulated nature of the industry: The Government of India (GoI),
every year decides a minimum support price (MSP) to be paid to
paddy growers which limits the bargaining power of rice millers
over the farmers. The MSP of paddy was increased during the crop
year 2021-22 to INR1940/quintal from INR1868/quintal in crop year
2020-21. Given the market determined prices for finished product
vis-à-vis fixed acquisition cost for raw material, the profit
margins are highly vulnerable to change in government policies.
* Seasonal nature of availability of raw material and exposure to
vagaries of nature: Paddy is mainly a 'kharif' crop and is
cultivated from June-July to September-October and the peak arrival
of crop at major trading centers begins in October. The cultivation
of paddy is highly dependent on the monsoon. Unpredictable weather
conditions could affect the output of paddy and result in
volatility in price of paddy. In view of seasonal availability of
paddy, working capital requirements remain high at season time
owing to the requirement for stocking of paddy in large quantity.
Also, agro products cultivation is highly dependent on monsoons,
thus exposing the fate of the company's operation to vagaries of
nature.
* Intensely competitive industry: Rice milling industry is highly
fragmented and competitive due to presence of many small players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. West Bengal are a major
paddy growing area with many rice mills operating in the area. High
competition restricts the pricing flexibility of the industry
participants and has a negative bearing on the profitability.
Key Rating Strengths
* Experienced promoters: The key promoter, Mrs. Swopna Saha, has
over a decade of experience in milling and processing of pulses and
wheat-based products through her associate entity. She will look
after the overall management of the company supported by Mrs. Bonna
Saha.
* Close proximity to raw material sources: HSLF's plant is located
at Bagna, Jaleswar, West Bengal which is in the midst of paddy
growing area. The entire raw material requirement is met locally
from the farmers (or local agents) which helps the entity to save
transportation cost and procure raw materials at effective prices.
Further, rice being a staple food grain with India's position as
one of the largest producers and consumer, demand prospects for the
industry is expected to remain satisfactory in near to medium
term.
Liquidity: Adequate
Although the company does not have any operational track record, it
has adequate liquidity with respect to project funding. The entire
debt portion of the project has already been tied up and INR1.67
crore has been disbursed till July 20, 2021. Further, the promoters
have already infused INR2.25 crore till July 20, 2021 out of the
total proposed promoter's contribution of INR5.93 crore.
Incorporated in March 2019, Habra Shree Lakshmi Food Products
Private Limited (HSLF) id promoted by Mrs. Swopna Saha and Mrs.
Bonna Saha based out West Bengal for setting up a milling and
processing plant for rice and its by-products with a proposed
installed capacity of 48000 metric ton per annum (MTPA). The
company is currently setting up its rice milling and processing
plant at North 24 Parganas, West Bengal and the commercial
operation of the plant is estimated to commence from December
2021.
HI-TEC METAL: CARE Reaffirms B+ Rating on INR7.66cr LT Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Hi-Tec Metal Powders Private Limited (HTMPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 7.66 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of HTMPPL continues to
be constrained by its short track record with small scale of
operation, weak debt service coverage indicators, lack of backward
integration vis-à-vis volatility in raw material prices, highly
fragmented and competitive nature of the industry, cyclicality
inherent to the aluminium industry and leveraged capital structure.
However, the aforesaid constraints are partially offset by moderate
financial performance in FY21 (provisional; refers to the period
April 1 to March 31) being the first full year of operation and
high growth prospect of the industry.
Key Rating Sensitivities
Positive Factors:
* Improvement in profitability with GCA over INR0.80 crore on a
sustained basis.
* Improvement in capital structure with overall gearing ratio below
3.00x on sustainable basis.
Negative Factors:
* Any sizeable de-growth in scale of operations (total operating
income below INR15.00 crore) and resultant decline in profit level
on a sustained basis
* Deterioration in capital structure with overall gearing ratio
reaching higher than the level of 6.00x on a sustained basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Short track record with small scale of operation and low
profitability margin: Hi-Tec Metal Powders Private Limited started
commercial operation from October 2019. Hence, the company has a
very short track record of operation. The entity is a relatively
small player in manufacturing of aluminum powders having total
operating income and net profit of INR20.75 crore and INR0.01 crore
respectively, in FY21 (provisional). The PBILDT margins of the
entity remained moderately low at 5.78% with low PAT margin of
0.46% during FY21 (Provisional). The net worth of the entity was
also low at around INR1.47 crore as on March 31, 2021. Small scale
of operations with low net worth base limits the credit risk
profile of the entity in an adverse scenario.
After relaxations from lockdown due to COVID-19, the company has
started operation from April 23, 2020 onwards after maintaining
proper safety arrangements in its business premises adhering to
government guidelines. Further, the company procures raw materials
(i.e. aluminium ingots) from local suppliers which are also
available in plenty. The operation of the entity has been partially
affected by the second wave of Covid-19. The company achieved
turnover of INR5.81 Crore in Q1FY22.
* Customer/debtors recoverability risk: This apart, the company has
good customer base with the names like Keltech Energy, Solar
Industry, Oberoi Thermit, Deccan Explotech, MRP Refractories etc.
However, total debtors remained around 80% of the total current
assets in FY21 (Prov.). Although, the debtors more than six months
remained negligible during FY21 (Prov.).
* Lack of backward integration vis-à-vis volatility in raw
material prices: HTMPPL does not have any backward integration for
its basic raw material (aluminium ingots) for producing powder
flake and is required to purchase the same from open market. The
finished goods as well as raw material prices of aluminium products
are volatile in nature. The degree of backward integration defines
the ability of the company to minimize price volatility risk and
withstand cyclical downturns generally witnessed in the aluminium
industry. The company sources the same from the National Aluminium
Company Ltd. and Hindustan Aluminium Corporation Ltd. but it does
not have any long term supply arrangement with them and purchase
the same on spot price. Any adverse movement in the raw material
prices would adversely affect the profitability of the company.
* Highly fragmented and competitive nature of the industry: HTMPPL
is operating in a competitive industry marked by the presence of a
large number of players in the organized sector. In addition to the
competition in domestic market, the company also faces competition
from imports. Furthermore, the industry is characterized by low
technological inputs and standardized machinery for the production.
Thus, going forward, this gives an opportunity to mid-size players
in the unorganized segment to enter into the industry which would
further intensify the competition for the company.
* Cyclicality inherent to the aluminium industry: The aluminium
industry is sensitive to the shifting business cycles, including
changes in the general economy, interest rates and seasonal changes
in the demand and supply conditions in the market. Apart from the
demand side fluctuations, the highly capital-intensive nature of
aluminium projects along-with the inordinate delays in the
completion hinders the responsiveness of supply side to demand
movements. This results in several aluminium projects bunching-up
and coming on stream simultaneously leading to demand supply
mismatch.
* Leveraged capital structure with moderate debt coverage
indicators: Capital structure of the entity improved as marked by
long term debt equity ratio of 5.06x and overall gearing ratio of
5.83x as of March 31, 2021 as against long term debt equity ratio
of 5.81x and overall gearing ratio of 7.65x as on March 31, 2020 on
account of scheduled repayment of term loan and accretion of
profits to reserve. The debt coverage indicators remained moderate
marked by total debt to GCA ratio of 20.53x in FY21 (Provisional).
Furthermore, the interest coverage ratio remained moderate at 1.52x
in FY21 (Provisional).
Key Rating Strengths
* Moderate financial performance in FY21, being the first full year
of operation: The operating income of the company improved from
INR5 crore in FY20 to INR20.75 Crore in FY21 (Prov.) due to first
full year of operation of the company as the company started its
commercial operation from October 2019. Company was able to achieve
operating margin of 5.78% in FY21 with PAT margin of 0.46% in FY21.
The operating cycle of the company has improved in FY21 and stood
at 88 days (161 days in FY20) in FY21 on account of improvement in
average collection days and average inventory days.
* High growth prospects of the industry: The products of the
company are used in various industries like refractories,
firecracker, mining explosive and thermite welding industry.
Further, the Power & mining sector in India has emerged as the
largest end user sectors for aluminium profiles. The government's
thrust on power & mining sector & strong investment sentiment in
India will be a strong demand driver of aluminium in India.
Liquidity analysis-Stretched: Liquidity of the company is stretched
with cash balance of INR0.07 crore as on March 31, 2021. The
average utilization of cash credit was around 82% during the 12
months ended June 2021. The current ratio also remained
satisfactory at 3.23x as on March 31, 2021. The operating cycle
stood high at 88 days in FY21. Moreover, the company has not
availed moratorium over interest on working capital for the month
of March 2020 to August 2020 which could be availed under the terms
of recent RBI circular. However, the company has availed a G.E.C.L
loan of INR1.10 crore and COVID relief loan of INR0.23 crore from
its lender. However, debt repayment in FY21 was made through
internal accruals and unsecured loans from promoters. The company
expects to achieve turnover of around INR30 crore in FY22 and
already achieved turnover of INR5.81 crore in Q1FY22. DSCR is weak
but going forward, the company expects to achieve improved
profitability in FY22 which is expected to be sufficient for debt
repayment.
Hi-Tech Metals Powders Private Limited was established in March
2018 by Mr. Manav Patel and Mr. Manu Patel. It is an ISO 9001:2008
certified entity. The commercial operation started from October
2019. The entity is engaged manufacturing of Aluminium Powders. The
manufacturing unit of the entity is located at Village Sankara,
Rajnandgaon, Chhattisgarh with an installed capacity of 2400 metric
tons per annum. This apart, the company is expanding its capacity
of aluminium flake powder manufacturing capacity by 75 MTPA with an
estimated cost of INR1.5 crore entirely from its promoter's
contribution. The completion of the capacity expansion project is
expected by Sept. 2021.
Both the directors, having almost a decade of experience in a
similar line of business, look after the day-to-day operation of
the entity. They are further supported by a team of experienced
professionals. The promoters have experience in plywood
manufacturing through its company Hi-Tec Panels Pvt Ltd and also
manufactures insulation materials through its company Hi-Tec
Rockfibre Pvt. Ltd.
JOHNSON JEWELERS: Ind-Ra Hikes Long-Term Issuer Rating to 'B'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Johnson Jewelers'
Long-Term Issuer Rating to 'IND B' from 'IND B-'. The Outlook is
Stable.
The instrument-wise rating action is:
-- INR120 mil. Fund-based working capital limits upgraded with
IND B/Stable rating.
KEY RATING DRIVERS
The upgrade reflects Johnson Jewelers' higher-than-expected
revenue, profitability and credit metrics in FY21, on account of
improved demand. Although the revenue declined to INR491.49 million
in FY21 (FY20: INR1,059.90million) due to a three-month COVID-19
led lockdown, the decline was lower than the agency's expectations.
During 1QFY22, Johnson Jewelers booked revenue of INR60 million as
it operates in a highly volatile gold market, where the sales
volume is directly correlated to gold prices. Ind-Ra expects the
revenue to increase marginally in FY22, provided the firm operates
round the year and there are no lockdown-led restrictions. The
firm's scale of operations remains small.
The firm had a modest EBITDA margin of 3.55% in FY21 (FY20: 5.17%)
with a return on capital employed of 7.10% (11.70%). The decline in
the margin was due to higher fixed overheads than revenue. However,
Ind-Ra expects the EBITDA margin to improve in FY22 because the
firm intends to fix labor cost as a percentage of raw material
cost.
The ratings also factor in Johnson Jewelers' modest credit metrics.
The gross interest coverage (operating EBITDA/gross interest
expense) was almost stable at 1.07x in FY21 (FY20: 1.06x). However,
the net financial leverage (adjusted net debt/operating EBITDA)
doubled to 14.56x in FY21 (FY20: 7.13x), owing a fall in the
absolute EBITDA to INR17.43 million (INR24.14 million) and an
increase in external funding to meet working capital requirements.
The firm met its debt servicing requirements through unsecured
loans infused by the promoter. In FY22, Ind-Ra expects the credit
metrics to improve marginally, owing to a likely improvement in the
absolute EBITDA and absence of capex plans.
Liquidity Indicator - Poor: Johnson Jewelers' average maximum
utilization of the fund-based limits was 97.90% during the 12
months ended May 2021. The cash flow from operations turned
negative to INR80.44 million in FY21 (FY20: INR8.73 million), due
to unfavorable changes in working capital. Consequently, the free
cash flow turned negative to INR81.13 million in FY21 (FY20:
INR8.73 million). Furthermore, the net working capital cycle
elongated to 210 days in FY21 (FY20: 151 days), due to an increase
in the inventory holding period to 210 days (144 days). The cash
and cash equivalents stood at INR1.54 million at FYE21 (FYE20: INR
0.86 million). The firm does not have any capital market exposure
and relies on the promoter, banks and financial institutions to
meet its funding requirements.
The ratings, however, continue to benefit from the founders'
experience of over 30 years in the jewelry trading business,
leading to strong relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: A substantial decline in the scale of operations, leading
to deterioration in the overall credit metrics and weakening of the
liquidity position, all on a sustained basis, will lead to a
negative rating action.
Positive: An improvement in the liquidity position, along with a
significant increase in the scale of operation, leading to the
gross interest coverage exceeding 1.3x on a sustained basis, will
lead to a positive rating action.
COMPANY PROFILE
Incorporated by Anil Soni in 1996 as a proprietorship firm Johnson
Jewelers is engaged in the retail and wholesale trading of gold,
diamond, silver and other precious gem studded jewelry.
KAILASHDARSHAN TILES: CARE Withdraws B+ Rating on Bank Debts
------------------------------------------------------------
CARE has reviewed the rating assigned to the bank facilities of
Kailashdarshan Tiles LLP (KTL) to CARE B+; Stable/CARE A4 and has
simultaneously withdrawn it with immediate effect. The ratings
factor in its modest scale of operations and moderate
profitability, moderate capital structure and debt coverage
indicators during FY21 (Provisional, refers to period April 01 to
March 31). The rating also factors in partnership nature of
constitution, presence in a highly competitive ceramic industry and
fortunes linked to demand from cyclical real estate sector along
with susceptibility of profit margins to volatility in raw material
and fuel costs.
The ratings, however, derive strength from the experienced partners
and locational advantage in form of easy access to raw material,
fuel and labour.
The rating withdrawal is at the request of KTL 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
* Modest scale of operations and moderate profitability: During
FY21, KTL registered a growth of 20% in its scale of operations,
however continued to remain modest marked by TOI of INR18.38 crore
as against INR15.26 crore during FY20. Further, the PBILDT margin
remained moderate at 12.20% during FY21 as against 11.67% during
FY20 while the firm earned net profit of INR0.26 crore during FY21
as against net loss of INR0.56 crore during FY20.
* Moderate capital structure and debt coverage indicators: The
capital structure has continued to remain moderate marked by
overall gearing ratio of 1.81 times as of March 31, 2021 which was
in similar line at 1.86 times as of March 31, 2020. Debt coverage
indicators continued to remain moderate marked by total debt to
Gross Cash Accruals(TDGCA) of 6.28 times as on March 31, 2021 which
improved from 10.98 times as of March 31, 2020 owing to an increase
in GCA level. Interest coverage ratio also remained at 2.96 times
in FY21 as against 1.92 times in FY20.
* Partnership nature of its constitution: The constitution as a
partnership firm restricts KTL's overall financial flexibility in
terms of limited access to external funds for any future expansion
plans. Further, there is inherent risk of possibility of withdrawal
of capital and dissolution of the firm in case of insolvency of
partner or any other contingencies.
* Presence in a highly competitive ceramic industry and fortune
linked to demand from cyclical real estate sector: KTL operates in
a highly competitive segment of the ceramic industry marked by low
entry barriers, presence of large number of organized and
unorganized players with capex planned by existing players in the
industry as well as new entrants. This situation increases the
level of competition which is expected to put pressure on
profitability of the manufacturers. Further, most of the demand for
the tiles comes from the real estate industry, which, in India is
highly fragmented and cyclical. The real estate industry is also
highly sensitive to the interest rates and liquidity position in
market. Thus any negative impact on real estate industry will
adversely affect the prospects of ceramic tiles industry as well as
the firm.
* Susceptibility of profit margins to volatility in raw material
and fuel costs: Prices of raw material i.e. clay is market-driven
and puts pressure on the margins of tile manufacturers in case of
volatility into the same. Another major cost component is fuel
expenses in the gas form which is to fire the furnace. The
profitability of KTL remains exposed to volatile LNG prices, mainly
on account of its linkages with the international demand-supply of
natural gas. Hence any adverse movement in material and fuel
prices impacts profitability of the firm.
Key Rating Strengths
* Experienced partners: KTL is currently managed by four key
partners namely Mr. Shailesh Kundariya, Mr. Bhavikkumar Gopani, Mr.
Bhaveshkumar Kalariya and Mr. Bhavdipkumar Rupala. All the partners
of KTL hold an average experience of four years in similar line of
business activities.
* Location advantage: KTL is located in Morbi, a ceramic cluster,
which provides the firm with easy access to raw materials, primary
fuel and all other utilities. Further, the cluster is well
connected by a good road network which provides logistical benefits
as well.
Morbi (Gujarat) based KTL was established in April 2017 as a
limited liability partnership firm by Mr. Shailesh Kundariya, Mr.
Bhavikkumar Gopani, Mr. Bhaveshkumar Kalariya, Mr. Bhavdeepkumar
Rupala and other twelve partners. KTL has completed its greenfield
project for manufacturing Ceramic wall Tiles and commercial
operations from April 2018. KTL procures raw material from domestic
traders and sells its manufactured products to various domestic
dealers. KTL operates from its sole manufacturing unit located in
Morbi (Gujarat) having an installed capacity of 28,500 Metric
tonnes per annum for manufacturing Ceramic Tiles as of March 31,
2020.
KARAN AUTOMOBILES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Karan
Automobiles (A Unit of Bikaner Distributors Private Limited) (KAS)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 20, 2020, placed the
rating(s) of KAS under the 'issuer non-cooperating' category as KAS
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. KAS continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and a letter/email dated
April 5, 2021, April 15, 2021, April 25, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Jaipur (Rajasthan) based Karan Automobiles (A Unit of Bikaner
Distributors Private Limited) (KAS) was established in 2003 by Mr
Karan Chautala and Mr Mahender Sing Punia. KAS is an authorized
dealer of Hero Motor Corp Limited (HMCL) to sell and purchase of
motorcycles and spare parts. KAS also authorized to services of the
motorcycles. The showroom of KAS is located in Bikaner
(Rajasthan).
KARUNA VENTURES: Ind-Ra Assigns BB- Rating to Non-Convertible Debts
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Karuna Ventures Pvt.
Ltd.'s (KVPL) proposed non-convertible debentures (NCDs) as
follows:
-- INR500 mil. Series I NCDs coupon rate 9.40% assigned with IND
BB-/Stable rating; and
-- INR1.50 bil. Series II NCDs coupon rate 9.40% assigned with
IND BB-/Stable rating.
The rated NCDs are backed by share cover of 2.0x of the listed
equity shares of Strides Pharma Science Limited (Strides; 'IND
A+/Stable) and both principal and accrued interest would be payable
on the maturity date scheduled for the 24th and 37th month from
the date of allotment for Series I and II NCDs, respectively. The
rating addresses the timely payment of interest and principal by
the final maturity date of the NCDs, in accordance with the
transaction documents.
KEY RATING DRIVERS
Credit Linkage with the Issuer and Promoter Group Companies: Given
the cross-default clause mentioned under the event of default, the
ratings of the share-backed NCDs are capped by the standalone
credit rating of KVPL. While establishing the credit profile of
KVPL, Ind-Ra has taken comfort from the financial and managerial
flexibility amongst the promoter and his group companies, and also,
from their shareholding in two listed entities viz. Strides and
Solara Active Pharma Sciences Limited (Solara).
Security Cover: The rating of the NCDs reflects the exclusive
security package consisting of:
- a first ranking pledge over the shares of Strides in favor of
the Debenture Trustee in accordance with the terms of the share
pledge agreement; and
- the personal guarantee issued by the promoter, Arun Kumar
Pillai, in favor of the debenture trustee;
- the joint and several corporate guarantees issued by the Pronomz
Ventures LLP (PVLLP) and Karuna Business Solutions LLP (KBLLP), in
favor of the debenture trustee;
- a first ranking hypothecation over the cash collateral account
and all assets, investments, cash-flows and receivables of the
issuer, in favor of the debenture trustee in accordance with the
terms of the deed of hypothecation;
The security cover constitutes a required share collateral cover of
2.0x NCD principal amount plus the accrued interest, provided in
the form of listed shares of Strides or the cash collateral. The
share collateral cover would be calculated using the share price
lower of the closing price and volume weighted average price for
the last trading day.
Volatility of Pledged Shares: The analysis of the structure and
sufficiency of the available share cover is based on the ability of
the structure to withstand a decline in the share price
commensurate with the assigned rating, within the transaction
tenure, so as to minimize the probability of any payment shortfall
on the payment due date. Ind-Ra assesses the liquidity of the
shares, characterized by the average trading volume of the shares
in last one year. Higher liquidity reduces the number of days the
debenture trustee would take to liquidate the pledged shares in the
open market and believed to have lesser impact on the price of the
share. For the current NCDs, the share security providers have to
pledge approximately 5.19 million shares of Strides, which would
take only five days to liquidate, assuming the average trading
volume over the last one year.
Strides Pharma Science – Particulars as of July 12, 2021
-- Valuation price for estimating share cover (INR) is 771.00
-- 52-week high (INR) is 973.75
-- 52-week low (INR) is 409.60
-- Share collateral cover for this facility (x) is 2.00
-- Average of the top five intraday peak to trough in the last
one year (%) is 15.71
-- Largest one-day drop in the last one year (closing price –
opening price) (%) is 17.44
-- Number of shares pledged for this facility (million) is 5.19
-- Average of the last one-year daily trading volume (million) is
1.09
Source: Company, Ind-Ra
Strong Support from Share Security Provider: The promoter, Arun
Kumar Pillai, PVLLP and KBLLP will be accountable for covering any
shortfall on the maturity date of each series pursuant to the
personal and corporate guarantee provided as a part of the security
cover. The agency believes the promoter support to cover the
interest and principal payment is indispensable, given the low
operating profit of the issuer. The promoter along with the other
two share security providers/ guarantors have a shareholding of
21.29% of Strides. Ind-Ra considers the availability of
unencumbered shareholding of share security provider as a positive
factor, given their increased capability to sustain a price
correction and the resultant top-up requirement.
Share Security Providers' Holding (as a percentage of total shares
outstanding of Strides Pharma Science)
Particulars (in %) as of June 30, 2021
-- Holding of the share security providers as a percentage of
total shares is 21.29
-- Current pledged shares of the share security providers as a
percentage of total shares is 6.86
-- Current unencumbered shares of the share security providers as
a percentage of total shares is 14.43
Source: Company, Ind-Ra
Liquidity Indicator – Stretched: KVPL's liquidity is underpinned
by the strong financial support from the promoters and the other
group entities. KVPL has unmatched liability and cash flow profile,
as interest payments are currently being serviced from interest and
rental income coming from the other promoter group entities.
However, a significant portion of the debt is from the promoter and
the group companies, and it is unsecured in nature and subordinated
to the external debt of INR103.3 million with a tenor of 15 years.
Excluding the internal debt, the net leverage (including the
corporate guarantee given to Dairy Power Ltd) would be 1.5x at
FYE21, as per Ind-Ra's calculations. KVPL had a cash and bank
balance of INR1.56 million at FYE21. Ind-Ra believes KVPL has well
established banking relationships and prudent ability to plan ahead
for refinancing and contingencies. The company's liquidity profile
is likely to remain stretched over the medium term, resulting from
its business model, which demands the redeployment of surplus in
the new ventures of the group and sporadic returns from these
investments.
Restrictive Structural Covenants: The share -backed NCDs benefit
from the following structural covenants that safeguard the
investors' interest:
Cash collateralization events are defined as follows:
-- share security provider should collectively own at least 21.29%
of Strides' equity share capital
-- financial indebtedness (including guarantees, indemnities,
shortfall undertaking, and letter of comfort) for the promoter
group should not exceed INR5 billion
-- disposal of Solara's shares for more than INR3 billion
-- change in management control in respect of Strides or Solara
On the occurrence of the cash collateralization event, the issuer
is obliged to deposit cash equal to the total outstanding NCDs'
obligation within two business days. The issuer will have 45 days
to rectify the breach of the cash collateralization event.
Mandatory redemption events are defined as follows:
-- Credit rating withdrawal, suspension of the rating or
classification of the issuer into the non-cooperating category
-- Share price falling by over 50% of the share price calculated
three business days prior to the date of allotment
Mandatory redemption events mandate the issuer to redeem the NCDs
in full within two business days.
The key clauses in the event of default are:
-- non-payment of the NCDs on the respective maturity date;
-- cross default to the issuer or any other promoter group
companies
-- failure to deposit the upcoming NCDs obligation amount, fifteen
days prior to the NCDs' payment date
-- maintenance of adequate share security cover of 2.0x of the
NCDs' obligation amount, including failure to top-up if the share
security cover reduces to 1.82x.
-- breach of covenants
-- insolvency
On the occurrence of an event of default, the debenture trustee,
upon the written instructions of the debenture holders holding not
less than 15% in value of the NCDs' principal amount, may declare
that all or part of the outstanding debentures are payable on
demand, including the acceleration of payment.
RATING SENSITIVITIES
Positive: A significant improvement in the issuer's operating
performance, led by higher interest, dividend and rental income on
a sustainable basis, could lead to a positive rating action.
Negative: The NCD rating is sensitive to the performance of the
pledged stock, which is reflected by its average daily return,
volatility and liquidity, share cover ratios and the soundness of
the legal structure, along with the effectiveness of multiple
protection-based triggers that result in accelerated redemption
events.
In addition, developments that could, individually or collectively,
lead to a negative rating action are:
-- a significant increase in the external debt (including
corporate guarantee) to EBITDA ratio
-- the absence of adequate and timely funding support from the
promoters and other promoter group companies.
COMPANY PROFILE
Incorporated on August 7, 2009, KVPL provides management & business
consultancy services, and construction services of commercial
buildings. The company is wholly owned by Arun Kumar Pillai and his
family.
KPG INTERNATIONAL: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of KPG
International Private Limited continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.50 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 28, 2020, placed the
rating(s) of KPG under the 'issuer non-cooperating' category as KPG
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. KPG continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated April 13,
2021, April 23, 2021, May 3, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi-based, KPG International Private Limited (KPG) was
incorporated in October 2016 and commenced its commercial
operations in December 2016. The company is currently being managed
by Mr. Gaurav Mahendru and Mr. RC Mahendru. KPG is engaged in
manufacturing and trading of garments. The company procures its raw
material i.e. fabric from domestic and overseas manufacturers
(import constitutes 25% of purchases). KPG sells the product in the
brand name 'Howzat' to wholesalers and retailers located in Delhi.
LALWANI INDUSTRIES: Ind-Ra Moves BB- Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Lalwani Industries
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:
-- INR14 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR91 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
July 24, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Lalwani Industries manufactures ferro alloys including ferro silico
magnesium, ferro aluminum, ferro chrome, ferro molybdenum and
nickel magnesium. The company also trades in manganese ore, moly
oxide and nickel. Its manufacturing facility is located in South 24
Parganas, West Bengal.
LAXAI LIFE: Ind-Ra Moves B- LT Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Laxai Life
Sciences Private Limited's Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR88.9 mil. Term loan due on March 2025 migrated to non-
cooperating category with IND B- (ISSUER NOT COOPERATING)
rating; and
-- INR30 mil. Fund-based working capital limit migrated to non-
cooperating category with IND B- (ISSUER NOT COOPERATING)/IND
A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 31, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2006, Laxai Life Sciences is a contract research
company providing drug discovery and development services to
domestic and international pharmaceutical companies. It has a
research and development unit in Hyderabad, Telangana.
LOHIA AUTO: CARE Lowers Rating on INR30cr LT Loan to B
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Lohia Auto Industries (LAI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 10, 2020, placed the
rating(s) of LAI under the 'issuer non-cooperating' category as LAI
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. LAI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 26, 2021, June 5, 2021, June 15, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information.
Lohia Auto Industries (LAI) is a partnership firm set up in 2008 by
Lohia and Gupta brothers. LAI is known for the launch of two models
of electric vehicles- OMA STAR & FAME in 2008 in the automobile
industry, manufacturing unit being at Kashipur, Uttarakhand. Later,
the firm has also forayed into 3W segment with its brand of
electric and diesel three-wheelers. Their range of three-wheeler
consists of electric three-wheeler – HUMRAHI, NARAIN and diesel
three wheeler-HUMSAFAR. At present, Ayush Lohia is the CEO of LAI,
having total experience of more than 15 years in business domain.
MAHAVIR FERRO: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri
Mahavir Ferro Alloys Private Limited (SMFAPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 537.74 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 15.50 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 8, 2020, placed the
rating(s) of SMFAPL under the 'issuer non-cooperating' category as
SMFAPL 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. SMFAPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 24, 2021, May 4, 2021, May 14, 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).
Shri Mahavir Ferro Alloys Private Limited (SMFAPL), incorporated in
2001 (commenced operation from September 2013), is promoted by Mr.
Suresh Chand Jain and Mr. Vicky Jain. SMFAPL is engaged in
manufacturing of steel intermediary products. The plant is located
at Rourkela, Odisha, having sponge iron capacity of 90,000 MTPA and
MS ingot capacity of 57,600 MTPA and pellet capacity of 600,000
MTPA. The overall day-to-day affairs of the company is looked after
by Mr. Suresh Chand Jain (Chairman) and Mr. Vicky Jain (Managing
Director).
MGI INFRA: CARE Assigns D Rating to INR3.35cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of MGI
Infra Private Limited (MGIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.35 CARE D Assigned
Facilities
Long Term Bank 4.00 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING category
and Revised from CARE B-
Short Term Bank 6.35 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING category
and Revised from CARE A4
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the ratings of MGI
Infra Private Limited and in line with the extant SEBI guidelines,
CARE revised the rating of bank facilities of the company to 'CARE
B-; Stable/CARE A4; ISSUER NOT COOPERATING'. However, the company
has now submitted the requisite information to CARE. CARE has
carried out a full review of the ratings and the rating stand at
'CARE D/CARE D.
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of MGI Infra Private
Limited (MGIPL) have been revised on account of ongoing delays in
servicing of debt obligations.
Rating Sensitivities
Positive Factors
* Improvement in liquidity position of the company as marked by
timely servicing of its debt obligations.
Detailed description of key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: There have been ongoing delays
in repayment of term loans and servicing of interest obligations in
the months of April, May, and June 2021 as per the banker. The
delays are on account of stretched liquidity position as MGIPL is
unable to generate sufficient funds to serve its debt obligations
due to delays in project execution on account of the Covid-19
pandemic.
Liquidity analysis: Poor
The liquidity position of the company stood poor as marked by
ongoing delays in repayment of term loans and servicing of interest
obligations in the months of April, May and June 2021 as per the
banker. Further, the working capital limits stood almost fully
utilized for the past twelve months period ended June, 2021.
New-Delhi based, MGI Infra Private Limited (MGIIPL), was
incorporated in Oct 2011 by Mr. Hitesh Jaju & Mr. Arvind Rana. The
company is engaged in the business of design and erection of
pre-engineered steel buildings (PEB) such as residential &
commercial buildings and Light Gauge Steel Frame (LGSF) Structure
and Drywall. The client profile comprises government as well as
private sector entities. The orders executed for the government
entities comprise those obtained through direct bidding as well as
those sub-contracted by the primary contractor. It obtains the
orders directly from the private sector entities. Besides the
company also outsources the orders that it receives as the primary
contractor to other parties.
NIAGARA METALS: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Niagara
Metals India Limited (NMI) 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 5.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated June 18, 2020, had placed the
ratings of NMI under the 'Issuer Non-cooperating' category as the
company had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. NMI continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated May 4, 2021, May 14, 2021 and
May 24, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Niagara Metals India Limited (NMI) was incorporated in December,
2004 as a 100% export-oriented unit for railway components. The
company is currently being managed by Mr. Vinod Kumar Soni, Mr.
Vikram Soni (son of Mr. Vinod Kumar Soni) and Mr. Charanjit Singh.
NMI's manufacturing facility is situated at Ludhiana, Punjab. The
company was initially engaged in the manufacturing of railway
components and exported the same to the USA markets. However, in
2009, the company diversified its business and started
manufacturing auto components also, apart from manufacturing
railway components. Later on, in 2011, NMI ventured into
construction and installation of pre-engineered steel structural
buildings (PEBs) also, providing turnkey solutions in
infrastructure space and shifted its selling arrangements from
exports to domestic sales.
PARAMOUNT CHEMPRO: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Paramount
Chempro (PC) 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
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated June 26, 2020, had placed the
ratings of PC under the 'Issuer Non-cooperating' category as the
firm had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. PC continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated May 12, 2021, May 22, 2021
and June 1, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
PC was established in the year 2015 by Patel family of Nagpur. The
entity has recently (April 2018) completed its project to set up a
Formaldehyde unit at Butibori, Nagpur, Maharashtra with an
installed capacity of 24000 metric tonnes per annum. The product
i.e. Formaldehyde mainly finds application in the furniture
industry.
RAJARAMSEVAK MULTIPURPOSE: CARE Keeps D Ratings in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of
Rajaramsevak Multipurpose Cold Storage Private Limited (RMCSPL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.94 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.20 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 8, 2020, placed the
rating(s) of RMCSPL under the 'issuer non-cooperating' category as
RMCSPL 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. RMCSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 24, 2021, May 4, 2021, May 14, 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).
RMCPL was incorporated in February 2012 and presently managed by Mr
Raja Chakraborty, Mr Shyamal Kumar Dutta, Mrs Koyanta Chakraborty
and Mrs Rita Chakraborty. After remaining dormant for around two
years, it has commenced operations of cold storage services and
trading of potatoes from February 2014. The cold storage facility
of RMCPL is located at Kamarhati, Barasat (West Bengal) with
aggregate storage capacity of 18300 metric ton.
RAMAKRISHNA ELECTRONICS: CARE Keeps D Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ramakrishna
Electronics (Kurnool) (RE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.00 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 July 20, 2020, placed the
rating(s) of RE under the 'issuer non-cooperating' category as RE
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. RE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 5, 2021, June 15, 2021, and June 25, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Ramakrishna Electronics (RE), is a partnership firm established in
April, 2000by Mr. V. Raghavenrdra, Mr. V. Ravi Kumar, Mrs. V.
Rajeshwari, Mrs. V. Neelima, Mr. V Ananthakrishna, Mr. G. Ramaiah,
Mr. G. Seshamma and Mrs. V. Nagarekha. The firm is engaged in
distribution and trading (retail and wholesale) of consumer
electronic products and home appliances. It operates with a total 9
showrooms. The firm has its registered office and showroom located
at Municipal Shopping Complex, Park Road, Kurnool with other retail
showrooms located at Anathapur, Nadhyala, Madhanapally,
Thandapathi, Kadiri and Guntakal in Andhra Pradesh. The firm
distributes consumer durables of some major brands which include
Sony and LG electronics goods in and around two districts of Andhra
Pradesh.
RATHI HATCHERIES: CARE Lowers Rating on INR9.14cr LT Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Rathi Hatcheries Private Limited (RHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.14 CARE C; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B; Stable
Short Term Bank 1.60 CARE A4; ISSUER NOT COOPERATING;
Facilities Rating continues to remain under
ISSUER NOT COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated June 24, 2020, had placed the
ratings of RHPL under the 'Issuer Non-cooperating' category as the
company had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. RHPL continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated March 28, 2021, April 7, 2021
and April 17, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings have been revised on account of non-availability of
requisite information. The rating revision also takes in account
decline in scale of operations. Further, the company has also
reported a net loss in FY20.
Rathi Hatcheries Private Limited was incorporated in June, 2002 and
is currently being managed by Mr. Ramesh Kumar, Mr. Krishan Kumar
and Mr. Vinod Kumar collectively. RHPL is engaged in poultry
farming business at its poultry farm located in Jind, Haryana. The
company sells the broiler chicks (1 day old chicks) to various
poultry farmers located in Punjab, Haryana, Jammu & Kashmir, Bihar
and Uttar Pradesh. The main raw materials for feeding the chicken
are maize, soyabean and mustard. The same are procured from the
company's group concern namely Rathi Feeds India Private Limited
(RFIPL) which is engaged in manufacturing of poultry feed since
2008. Besides RHPL and RFIPL, the directors' are also engaged in
another group concern namely Gourav Poultry India Private Limited
which is into the business of poultry farming since 2011.
REDDY AND REDDY: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Reddy and
Reddy Import and Exports (RRIE) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE A4; 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 17, 2020, placed the
rating(s) of RRIE under the 'issuer non-cooperating' category as
RRIE 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. RRIE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 2, 2021, June 12, 2021, and June 22, 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).
Reddy and Reddy Import and Exports (RRIE), is a partnership firm,
incorporated in 1997 and is promoted by Mr. Goluguri Rama Krishna
Reddy, Mr. Venakata Reddy and Mr. Sri Rama Reddy. Mr. Goluguri Rama
Krishna Reddy is the firm's managing partner. The firm primarily
trades in prawn feed in and around West Godavari district, Andhra
Pradesh. The firm also derives about 10- 12% of its revenue from
manufacturing shirt buttons. RRIE belongs to Reddy and Reddy Group
which has diverse interests including trading and manufacturing of
prawns feed, authorized dealership of Maruthi Suzuki India Limited
(MSIL) and Hero Motors.
ROLTA INDIA: NCLT Mumbai Dismisses Withdrawal Plea
--------------------------------------------------
The Times of India reports that the National Company Law Tribunal
(NCLT) Mumbai on August 6 dismissed an application seeking the
closure of Rolta India's Corporate Insolvency Resolution Process
under the Insolvency and Bankruptcy Code (IBC).
A consortium of lenders to Rolta represented by advocates Rohit
Gupta and Nausher Kohli had opposed a plea for closure of the
process, saying that they have an outstanding of around INR5,400
Crores. The debt owed to them is substantial, said the public
sector lenders and financial creditors, before the NCLT bench of
Suchitra Kanuparthi, Judicial member and Chandra Bhan Singh, TOI
relates. They said withdrawal of CIRP would only lead to
multiplicity of proceedings against the corporate debtor before the
tribunal which must necessarily be avoided.
The NCLT noted that 567 employees of Rolta India also have a claim
of INR86 crore, the report relays.
According to TOI, the NCLT in a detailed order said, "the
substantial claims of Financial Creditors cannot be disregarded or
ignored in view of the purported settlement of certain employees of
the Corporate Debtor."
The tribunal had in May commenced the process on a plea by
ex-employees seeking its initiation last year and on May 25 Vandana
Garg took charge as Resolution Professional (RP) (an independent
professional to oversee affairs of the company) of Rolta, the
report notes. However, subsequent to a settlement of dues of the
ex-employees, an employee filed an application seeking withdrawal
of the company petition.
TOI relates that the employee said the settlement agreements were
signed on May 25 with ex-employees, and he had requested the RP to
seek withdrawal of the insolvency proceedings. As she did not file
such an application "immediately", the employee invoked a provision
under the IBC to seek withdrawal of the company petition filed by
some ex-employees. The financial creditors can recover their dues
via SARFAESI Act or other provisions, he said.
TOI says the promoter director Kamal Singh also confirmed execution
of settlement deed with 32 ex-employees who had moved NCLT. The
tribunal observed that the settlement provides for major part of
dues only subsequent to withdrawal of petition, providing the
corporate debtor and promotor an "escape route.''
Ex-director and promoters of Rolta represented by advocate Prateek
Seksaria supported the withdrawal plea.
Kohli said enormous public interest and public monies are involved
in the matter and therefore the application for withdrawal be
rejected, TOI relays.
The Resolution professional said 177 employees have claimed dues
and only some are settled and "sympathy cannot override the law."
The NCLT continued the CIRP against the company, adds TOI.
Rolta India is a technology company with operations in 40 locations
across India, North America, Europe, the Middle East and Australia.
It provides IT solutions to various federal, state
and local governments; defense and security agencies; utilities;
financial services, manufacturing, retail and healthcare companies;
and others.
RSG DEVELOPERS: CARE Reaffirms B+ Rating on INR6.60cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of RSG
Developers Private Limited (RSG), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 6.60 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating of RSG continues to remain constrained by small scale of
operations, elongated operating cycle, and Stretched liquidity
position. Further, the rating remains constrained on account of
Project execution risk inherent in various contracts and highly
competitive industry with business risk associated with
tender-based orders. Further, the ratings, continue to derive
comfort from experienced promoters, moderate profitability margins
and improvement in capital structure and debt coverage indicators.
Key Rating Sensitivity
Positive Factors
* Improvement in the total operating income (TOI) of the company
above INR50.00 crore on sustained basis.
* Improvement in the capital structure marked by overall gearing of
below 1.00x on a sustained basis
Negative factors
* Elongation in operating cycle to more than 300 days on a
sustained basis
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations: RSG is a small regional player
involved in executing construction contracts and maintenance works.
The ability of the company to scale up to larger-sized contracts
having better-operating margins is constrained by its small net
worth of INR5.35 crore as on March 31, 2021(Provisional) and total
operating income of INR14.24 crore in FY21 as against INR14.92
crore in FY20. The total operating income in FY21 stood in line
with FY20 however, the decline in the TOI in FY20 was on account of
decrease in tenders received and executed by the company on account
of the Covid-19 pandemic. The scale of operations of the company
generally remain in the bracket of INR20.00-25.00 crore. During
Q1FY22, the company has generated a revenue of INR3.60 crore from
the contracts executed and maintenance works done. Further, the
geographically concentration and small scale of operations in a
competitive industry limits the bidding capability, pricing power
and benefits of economies of scale.
* Elongated operating cycle: The operating cycle of RSG stood
elongated as evident from 264 days for FY21 as against 298 days in
FY20. The elongated operating cycle emanates from raw material and
WIP inventory at project site. The company maintains inventory in
the form of raw materials at different sites for smooth execution
of contracts resulting in average inventory days of 249 days in
FY21. The company raises bills on milestone basis i.e. on the
completion of certain percentage of work and thereon which gets
acknowledge by client after inspection of work done by RSG. Post
the inspection, department clears the payment within 6-7 months.
Furthermore, the company has received the mobilization of advances
from its customers which also supports the working capital
requirements of the company. Further due to healthy relationships
with the suppliers, the company receives average credit period of
around 3-4 months from its suppliers resulting in average
creditor's period of 118 days for FY21. The company allows a credit
period of around 4-5 months to its customers resulting in average
collection period of 133 days for FY21. RSG makes payments to its
suppliers once it receives the payment from its customers, thus
quite a few times, the payments made to the creditors gets delayed
due to delay in payment from its customers. The average working
capital limits of the company remained 90-95% utilized for past 12
months.
* Project execution risk inherent in various contracts: Given the
nature of projects awarded, the company is exposed to inherent risk
in terms of delays in certain projects undertaken by the company
due to delay in approvals and sanction from regulatory bodies, land
acquisition issues etc. Due to some internal discrepancies
regarding disputed land between Noida Authority and the dealing
party, the project execution got delayed. However, the contract is
still with RSG Developers Private Limited. The project is expected
to resume the work by next month. These factors expose RSG towards
the risk of delay in projects resulting in a delay in the
realization of revenue growth. Also, the company's ability to
execute a project in timely manner led by its own operational
efficiency and timely stage payments received from clients exposes
the company to potential risk.
* Highly competitive industry with business risk associated with
tender-based orders: RSG faces direct competition from various
unorganized players in the market. There are number of small and
regional players and catering to the same market which has limited
the bargaining power of the firm and has exerted pressure on its
margins. Further, the award of contracts are tender driven and
lowest bidder gets the work. Hence, going forward, due to
increasing level of competition and aggressive bidding, the profits
margins are likely to be under pressure in the medium term.
Liquidity - Stretched
The liquidity position of the company remained stretched
characterized by tightly matched accruals vis-à-vis repayment
obligations as evident from expected GCA of INR1.40 crore as of
March 31, 2022 against repayment obligations of INR1.00 crore in
the same year. Further, the working capital limits are almost 90%
utilized for the past 12 month's period ending June 2021. The
company has low cash & bank balances which stood at INR0.21 crore
as of March 31, 2020.
Key Rating Strengths
* Experienced promoters: RSG is currently being managed by Mr.
Rajeev Sharma and Mrs. Monika Sharma. Mr. Rajeev Sharma is a
postgraduate by qualification and has an experience of more than
two and half decades in this industry through his association with
other group entities and RSG. Mrs. Monika Sharma is a graduate by
qualification and has an experience of almost two decades through
her association with RSG. Moreover, RSG has a well-qualified and
experienced team of projects managers, project engineers and
dedicated purchase planning and execution department with good
experience.
* Moderate profitability margins: The profitability margins of the
company stood moderate for the last three financial years
(FY19-FY21) wherein the company reaps benefits of its established
image in the regional market. PBILDT margin of the company improved
marginally and stood at 17.62% in FY21 (prov.) as against 16.26% in
FY20 owing to execution of orders with higher profitability margins
coupled with decrease in cost of material. Similarly, PAT margin
also improved and stood at 8.98% in FY21 (prov.) as against 5.54%
in FY20 on account of decrease in interest expenses.
* Improvement in capital structure and debt coverage indicators
The capital structure of the company improved and stood leveraged
as on the past three balance sheet dates ending March 31, '19-'21
on account of high debt levels against the net worth base. The
overall gearing (Including Acceptances/Creditors on LC) ratio stood
at 2.60x as of March 31, 2021 (prov.) showing improvement from
4.12x as of March 31, 2020 mainly on account of repayment of long
term obligations of the company.
Further, on account of improvement in PBILDT and decline in debt
levels and interest expenses, the debt coverage indicators of the
company improved however, stood weak as marked by interest coverage
ratio and total debt to GCA of 4.82x and 9.74x respectively for
FY21 (prov.) as against 2.22x and 16.48x respectively for FY20.
Noida-based RSG Developers Private Limited (RSG) was incorporated
in October 2004 as a private limited company and is currently being
managed by Mr. Rajeev Sharma and Mrs. Monika Sharma. The company is
engaged into large scale construction of commercial, infrastructure
and civil construction works such as construction of commercial
buildings, roads, interior projects and finishing & maintenance
activities for both government and private companies. The raw
materials namely, bricks, sand, cement, steel, tiles, plywood,
electrical fittings, etc. which the company procures from various
domestic manufacturers and wholesalers. The company operates
primarily in Northern India and has completed projects in various
states including Haryana, Punjab, Uttar Pradesh and Uttarakhand.
SAI ESTATE CONSULTANTS: Insolvency Resolution Process Case Summary
------------------------------------------------------------------
Debtor: Sai Estate Consultants Chembur Private Limited
Office No. 9, Neelkanth Commercials
Co-op Soc. Ltd., Plot No. 40
Chembur Govandi Road
Chembur, Mumbai 400071
Insolvency Commencement Date: August 2, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 1, 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: uvnayak2004@yahoo.co.in
irp.saiestate@gmail.com
Last date for
submission of claims: August 18, 2021
SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sai Poultry
Farm (SPF) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.30 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 8, 2020, placed the
rating(s) of SPF under the 'issuer noncooperating' category as SPF
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. SPF continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 24, 2021, June 3, 2021, and June 13, 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).
SPF is a partnership firm incorporated in the year 1983 by Mr. R
Chinnapa Gounder and his son Dr C K Samy. Currently, the firm has
four active partners namely Mr R Chinnapa Gounder, Dr C K Samy, Dr
S Senthil kumar (son of Dr C K Samy) and Dr S Shornalatha (wife of
Dr S Senthil kumar). The firm is engaged in the sale of eggs and
cull birds. As on January 31, 2017, SPF has around 7 lakh hens at
its four farms spread across 28 acres in Chittode, TamilNadu (TN).
SPF sells around 4 lakh eggs per day.
SAMIAH INT'L: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Samiah International Builders Limited
Registered office:
G-74, 1st Floor
Right Side Shaheen Bagh
Abul Fazal Enclave
Part-II, Jamia Nagar
New Delhi 110025
Corporate office:
Samiah House, A-35
Sector-63, Noida
Uttar Pradesh
Insolvency Commencement Date: August 3, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: January 30, 2022
Insolvency professional: Mrs. Shruti Gupta
Interim Resolution
Professional: Mrs. Shruti Gupta
227, Sharda Niketan
Pitampura, Delhi 110034
E-mail: guptashrutica@gmail.com
samiahinternationalkgs@gmail.com
- and -
K.G. Somani Isolvency Professionals
Private Limited
3/15, 4th Floor
Asaf Ali Road
Delhi 110002
Last date for
submission of claims: August 17, 2021
SAYA HOMES: CARE Reaffirms D Rating on INR371.86cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Saya
Homes Private Limited (SHPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 371.86 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING category
and Reaffirmed
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the ratings of
Saya Homes Private Limited and in line with the extant SEBI
guidelines, CARE revised the rating of bank facilities of the
company to 'CARE D; ISSUER NOT COOPERATING'. However, the company
has now submitted the requisite information to CARE. CARE has
carried out a full review of the ratings and the rating stand at
'CARE D'.
Detailed Rationale and key rating drivers
The ratings assigned to the bank facilities of Saya Homes Private
Limited continue to remain constrained by delays in debt servicing
by the company on account of stretched liquidity position.
Key Rating Sensitivity
Positive Factors
* Timely repayment of its debt on timely basis.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: There have been delays in the
servicing of debt obligation by SHPL as confirmed by the banker of
the company. The company has made delayed payment of Jun'21
interest due on Jun 30, 2021, on July 22, 2021.
* Project Execution Risk: SHPL is currently executing six projects
with total salable area of 25.80 lsf. All the necessary approvals
for the said projects have already been acquired phase I and OC
certificate for phase II will be received in first week of August
2021. Further, SHPL has already sold inventory of around 75% of its
total inventory. Since the company is successfully executing the
projects and the past experience of the promoters of delivery of
projects mitigates risks of project execution to some extent.
* Subdued real estate scenario coupled with impact of Covid-19: In
Real estate sector, prices are likely to remain stagnant and
developers will continue to focus on clearing existing inventory
rather than launching new projects as they continue to grapple with
regulatory changes like Real estate (regulation and development)
Act, 2016 (RERA), goods and services tax (GST) and overall subdued
demand. In fact, 2020 is expected to be another tough year for real
estate developers, given the ongoing liquidity problem, owing to
the NBFC crisis. Now, in light of the situation which was created
by COVID-19 it had worsened the persisting liquidity crunch in the
real estate sector. Various restrictions imposed by the Indian
Government to curb the pandemic had also led to a temporary halt in
ongoing real estate projects which also had a domino effect w.r.t.
the large-scale reverse migration of labourers and disruption in
supply chain of materials.
Liquidity Position: Stretched
The liquidity profile of Saya Homes Private Limited remains weak.
Due to mismatch between project receipts vis a vis the debt
repayment obligations the liquidity of Saya Homes Private Limited
remains constrained. Further, SHPL has availed moratorium as
offered by banks under RBI guidelines for COVID 19 pandemic.
Key Rating Strengths
* Experienced promoters and track record in real estate business:
Saya Homes Private Limited (SHPL) was incorporated on Dec. 3, 2010
for the development of residential/group housing project. SHPL is a
part of Saya Group which has been engaged in real estate
developments since 2006. The group has delivered 2 projects (total
saleable area of 9.74 lsf) in the past in North India. The promoter
of the company, Mr Vikas Bhasin has more than two decades of
experience in the field of construction and marketing. Apart from
the promoter, the management team consists of Mr Manoj Jain, who
has more than 20 years of experience in finance and Mr Shivendra
Nath, who has more than 15 years of expertise in architecture.
Currently, the company is developing a residential housing project
namely Saya Gold Avenue in Indirapuram with a saleable area of
25.80 lsf.
SHPL was incorporated on Dec 03, 2010 for the development of
residential/group housing project. SHPL is a part of Saya Group
which has been engaged in real estate developments since 2006. The
group has delivered 2 projects (total saleable area of 9.74 lsf) in
the past in North India. The promoter of the company, Mr Vikas
Bhasin has more than two decades of experience in the field of
construction and marketing. Apart from the promoter, the management
team consists of Mr Manoj Jain, who has more than 20 years of
experience in finance and Mr Shivendra Nath, who has more than 15
years of expertise in architecture.
SENBO ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Senbo
Engineering Limited (SEL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 142.68 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 157.32 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 10, 2020, placed the
rating(s) of SEL under the 'issuer non-cooperating' category as SEL
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. SEL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 26, 2021, May 6, 2021, May 16, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Senbo Engineering Limited (SEL) was initially established as Senbo
& Company, a proprietorship entity by one Mr. Kajal Sengupta in
Kolkata, West Bengal. The entity was reconstituted as private
limited company on July 13, 1990 and later incorporated as a public
limited company in April, 2005. SEL is engaged in construction of
underground tunnelling, station for metro railways, flyovers and
bridges. Over the decades, it has executed few medium sized metro
railways contracts in Kolkata and New Delhi, besides completing few
flyover projects. Further, SEL also execute work orders in joint
venture with other companies. Currently, the day to day affairs of
the company is looked after by Mr. Kajal Sengupta (chairman and
managing director) well supported by other directors.
SHANTI HOSPITAL: CARE Reaffirms D Rating on INR14.27cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shanti Hospital (SH), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.27 CARE D Rating removed from
Facilities ISSUER NOT COOPERATING category
and reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the bank facilities of SH continuous to be
tempered by its stretched liquidity resulting delay in term loan
repayments during last 12 months by 1-3 days. While the firm has
been regular in repayments for past 3 months, but with relatively
high upcoming repayments and weak debt coverage indicators, firm's
ability to maintain delay free track record on sustained basis
remains to be seen and therefore rating is re-affirmed at CARE D.
The rating also factors in decline in scale of operations, weak
debt coverage indicators, project risk, highly vulnerability to
treatment-related risks and regulatory related risks, highly
competitive due to organized and established players and
constitution of the entity as a partnership firm with inherent risk
of withdrawal of capital. The ratings, however, derive benefit from
qualified and experienced partners for more than three decades in
health care services.
Rating Sensitivities
Positive Factors
* Delay free debt service track record on sustained basis
Negative Factors: Not applicable
Detailed description of the key rating drivers
Key Rating Weaknesses
* Debt servicing track record: Delays are observed in term loan
repayments during the last 12 months by 1-3 days due to stretched
liquidity. While the firm has been regular in repayments for past 3
months, but with relatively high upcoming repayments and weak debt
coverage indicators, firm's ability to maintain delay-free track
record on sustained basis remains to be seen.
* Decline in scale of operations: The coronavirus pandemic has
dented the performance of the hospital with significant decline in
occupancy. Elective surgeries which contributes for 60-70% revenue
was postponed by the patients due to lockdown constraints and fear
of catching covid infection. The scale of operations of the firm
declined to INR6.55 Cr during FY21 from INR10.65 Cr in FY20.
However, the revenue has seen improvement during Q1FY22 with TOI of
INR2.65 Cr.
* Weak debt coverage indicators: The debt coverage indicators of
the firm remained weak reflected by interest coverage ratio of
3.73x as on March 31, 2021 deteriorated from 10.13x (PY) due to
increase in interest cost on account of ongoing capex. Further,
total debt to GCA stood low at 11.14x in FY21.
* Project risk: The firm has started setting up a new super
speciality hospital at Navanagar, Bagalkot in 2018 to expand its
scale of operations with aggregate cost of INR 18.00 cr and the
same was supposed to be completed by December 2019. However, the
firm has revised the project by adding two more floors to the
proposed building with an additional cost of INR4.92 crore. As per
the revised terms, the total project cost is INR22.92 crore and was
expected to be completed by January 2021. The cost of the project
has been further revised by INR1.84 cr due to increase in building
cost of phase 1 and 2. The revised expected cost of the project is
INR24.76 cr and is expected to be completed by end of September
2021 and the firm is expecting its operations to commence from
first week of October 2021.
* High vulnerability to treatment-related risks and regulatory
risks: Healthcare is a highly sensitive sector where any
mishandling of a case or negligence on the part of any doctor
and/or staff of the unit can lead to distrust among the masses.
Thus, all the healthcare providers need to monitor each case
diligently and maintain high operating standard to avoid the
occurrence of any unforeseen incident which can damage the
reputation of the hospital to a large extent. Further, the
operations of hospital are subject to various rules and regulations
laid by respective authorities at State and Central government
level. Any instance of non-compliance of these rules and
regulations would impact the operations of hospital resulting into
deterioration of financial risk profile of the
company.
* Highly competitive due to organized and established players: The
hospital industry is highly competitive with a large number of
established organized players and their growing network. The
healthcare and specialty hospitals sector mainly comprises of large
national level players, organized regional players, government
hospitals, charitable trusts and a large number of nursing home and
Multi-specialty clinics making it highly competitive.
* Constitution of the entity as a partnership firm with inherent
risk of withdrawal of capital: The firm being a partnership firm is
exposed to inherent risk of capital withdrawal by the partners, due
to its nature of constitution. Further, any substantial withdrawals
from capital account would impact the net worth and thereby the
financial profile of the firm.
Key Rating Strengths
* Qualified and experienced partners for more than three decades in
medical professional services: SH is promoted by Dr. Rajendra Patil
and Dr. Sunil Biradar Patil. Dr. Rajendra Patil and Dr. Sunil
Biradar Patil both are Pediatricians, and have more than three
decades of experience and more than one decade of experience
respectively with this entity. The firm has well-qualified and
experience staff to serve its patients.
* Wide range of healthcare services: The hospital provides services
in about 12 departments including, Pediatrics, Otolaryngology,
Gastroenterology, General Medicine, General Surgery, Neonatology,
Neurosurgery, ophthalmology, Pediatric Cardiology, Pediatric
Surgery, Pediatric Neurology and Orthopedic Surgery among others.
This wide range of services offered by firm at competitive rates
resulted in fair occupancy rate in recent past.
Liquidity: Stretched
Liquidity is marked by tightly matched accruals to repayment
obligations, low cash balance of INR 0.11 Crore and below unity
current ratio of 0.18x as of March 31, 2021 and higher working
capital utilization of 90% during the last twelve months. Further,
the firm has availed GECL term loan of INR1.2 Cr.
Shanti Hospital (SH) initially started its operations in 1986, with
a constitution of Hindu Undivided Family (HUF), and was then known
as Shanti Children Hospital. Later, the entity was converted into
Partnership firm in 2008. In 2011 the firm changed its name to
current nomenclature. Currently, SH has 100 beds, operational in
Bagalkot, Karnataka and is promoted by Dr. Rajendra Patil and Dr.
Sunil Biradar Patil. It is a Multi-Specialty Hospital spread across
a cumulative area of 35,000 sq. ft. with modern equipment and
infrastructure.
SOMNATH FLOUR: CARE Reaffirms B+ Rating on INR0.44cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Somnath Flour Mills Private Limited (SFMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 0.44 CARE B+; Stable Reaffirmed
Short Term Bank
Facilities 7.00 CARE A4 Reaffirmed
Detailed Rationale & Key Rating Drivers
The ratings assigned to the Bank Facilities of SFMPL continue to be
constrained by its small scale of operations, volatility in
agro-commodity (flour) prices with linkages to vagaries of the
monsoon, regulated nature of the industry, intensely competitive
nature of the industry along with presence of many unorganized
players, client concentration risk. However, the ratings derive
strength from experience of the promoters, stable financial
performance in FY21 (Provisional) (refers to the period April 01 to
March 31), comfortable debt protection metrics, reduction in
working capital requirement due to change in regulatory framework
and stable demand outlook.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Sizeable increase in scale of operations from present level
(Total Operating Income above INR15.00 crore) on a sustainable
basis
Negative Factors - Factors that could lead to negative rating
action/downgrade:
* Any sizeable de-growth in scale of operations from present level
(Total operating income below INR10.00 crore) on a sustained basis
* Deterioration in capital structure with overall gearing ratio
reaching higher than the level of 1.50x on a sustained basis
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operation: SFMPL is a relatively small player in
flour industry involved in custom milling and the small size
restricts the financial flexibility of the company in terms of
stress and deprives it from benefits of economies of scale.
* Client Concentration risk: The company is exposed to client
concentration risk as it is not allowed to make open market sale
since 2019 and can only sell the output to Food & Supplies
Department, Cooch Behar District, Government of West Bengal. The
company receives the raw materials from the government and has to
process it and give it back, in lieu of which it receives
processing charges. The payment of processing charges is generally
received with 40-60 days. The company enters into an agreement with
the government which is valid for one year and has to be renewed
every year. In case the company wishes to be relieved of the
agreement, it can express its desire in writing by giving at least
thirty days' notice to the concerned authority and the agreement
shall stand terminated.
* Volatility in agro-commodity (flour) prices with linkages to
vagaries of the monsoon and regulated nature of the industry: SFMPL
is primarily engaged in the processing of wheat products under its
roller mills. Wheat being an agricultural produce and staple food,
its price is subject to intervention by the government. In the
past, the prices of wheat have remained volatile mainly on account
of the government policies in respect of Minimum Support Price
(MSP) & controls on its exports. Further to be noted, the prices of
wheat are also sensitive to seasonality, which is highly dependent
on monsoon. Any volatility in the wheat prices will have an adverse
impact on the performance of the flour mill.
There was also a change in West Bengal government regulation
wherein the company had been restricted from open market sale and
had to supply only to the government of West Bengal. The raw
material was being provided by the government and the company had
to process it and supply it back to the government in lieu of
processing charges.
* Intensely competitive nature of the industry along with presence
of many unorganized players: Flour milling industry is highly
fragmented and competitive due to presence of many players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. West Bengal and nearby
states are a major wheat-growing area with many flour mills
operating in the area. High competition restricts the pricing
flexibility of the industry participants and has a negative bearing
on the profitability.
Key Rating Strengths
* Experienced promoters: Somnath Flour Mills Private Limited
started its business from February 2007 and thus has satisfactory
track record of operations. Mr. Brij Mohan Agarwal and Mr. Gaurav
Dalmia having around 32 years and 17 years of experience
respectively in the flour mill business, look after the business.
The company is further supported by a team of experienced
personnel. The promoters had also infused INR2.45 crore during FY21
to meet GST liability which was levied retrospectively by the
department.
* Stable financial performance in FY21 with improved profitability:
The operating income has declined from INR13.03 crore in FY20 to
INR9.89 crore in FY21 (Prov). The total operating income of the
company has declined in FY21 as the company has been restricted
from open market sale and has to supply only to government of West
Bengal. This allows the company to book only processing charges in
revenue as compared to sale of flour earlier. Earlier, the company
used to procure the raw material and sell the finished goods to the
government after processing. However, since 2019 the raw material
is provided by the government and the company needs to process it
only and give it back to the government, in lieu of which it
receives processing charges at a rate of INR136/quintal. Change in
government regulation has reduced the inventory holding requirement
thereby resulting in lower working capital requirement and lower
interest cost. This has led to improvement in PBIDT margins 7.19%
in FY19 to 9.32% in FY21 (Prov). PAT margin has also improved 1.01%
in FY19 to 3.40% in FY21 (prov). The company has reduced its
working capital limits from INR3.55 crore to INR0.44 crore from
October 2020 due to reduced inventory holding requirements.
* Comfortable debt protection metrics: The capital structure of the
company continues to remain comfortable as marked by overall
gearing ratio of 0.20x as of March 31, 2020, as against 0.60x as of
March 31, 2021 (Provisional) on account of infusion of unsecured
loan from promoters during the year. Interest coverage ratio also
remained comfortable at 4.41x during FY21 (Provisional) as against
2.30x during FY20.
* Stable demand outlook of the products: Wheat-based products, viz.
Maida, Suji, flakes and Atta have large consumption across the
country in the form of bakery products, cakes, biscuits and
different types of food dishes in homes and restaurants. The demand
has been driven by the rapidly changing food habits of the average
Indian consumer, dictated by the lifestyle changes in the urban and
semiurban regions of the country. Further, the company's unit has
close proximity to local grain markets and major raw material
procurement destinations. Further, West Bengal and nearby states
are one of the major wheat-producing area in India. Accordingly,
SFMPL has locational advantage in terms of proximity to raw
material. This apart, the plant is located in the vicinity of
industrial area of West Bengal, having good transportation
facilities and other requirements like good supply of power, water
etc.
Liquidity: Adequate
Liquidity is marked by adequate cushion in accruals vis-à-vis no
debt repayment obligation. Cash Balance including liquid
investments stood at INR1.98 crore as on March 31, 2021. The
company has investments in FD's of INR1.88 crore out of which
INR1.61 crore is lien marked as on March 31, 2021 (Prov.) The
average monthly working capital utilization stood at around 26% for
the last 12 months ended June 2021. The promoters have also infused
funds of INR2.45 crore in FY21 as the company had to pay GST
liability of around INR3 crore which was levied retrospectively at
a rate of 18%. The company is eligible for a GST refund of around
INR2.66 crore as the GST rate applicable is only 5%. The refund is
expected to be received with the next 3 months.
Somnath Flour Mills Private Limited (SFMPL) was incorporated in
February 2007 with an objective to enter into the flour milling
business. The manufacturing unit of the company is located at Bokna
Bandha, Ranirhat, Coochbehar, West Bengal. The current installed
capacity of the unit is 48600 Metric Tonnes Per Annum (MTPA). The
company processes the raw material i.e. wheat which is supplied by
Food & Supplies Department, Coochbehar District, Government of West
Bengal and supplies the finished goods i.e. flour to them. Earlier,
the company used to procure raw wheat from the local farmers and
used to supply the finished products to the Food & Supplies
Department, Coochbehar District, Government of West Bengal. Mr.
Brij Mohan Agarwal (Director) along with Mr. Gaurav Dalmia
(Director), having around 32 years and 17 years of experiences,
respectively, are looking after the day-to-day operations of the
company. The company is further supported by a team of experienced
personnel.
SPM MARBLES: CARE Lowers Rating on INR7cr LT Loan to B-
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of SPM
Marbles Private Limited (SMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 8, 2020, placed the
rating(s) of SMPL under the 'issuer non-cooperating' category as
SMPL 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. SMPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 24, 2021, May 4, 2021, May 14, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of SMPL has been revised
on account of non-availability of requisite information to carryout
review.
Kishangarh (Rajasthan) based SPM Marbles Private Limited (SMPL),
incorporated in 2002, were promoted by Mr. Ashish Bakliwal, Mr.
Sanjay Kawad and Mr. Bhagwan Das Biyani along with his son, Mr.
Abhishek Biyani. SMPL is engaged in the business of processing of
marble blocks as well as trading of finished marble slabs and
tiles. The processing plant of the company is located at Kishangarh
and has an installed capacity to process 2.04 LSMPA of marble slabs
and tiles.
SWD INDUSTRIES: CARE Lowers Rating on INR6cr LT Loan to B
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of SWD
Industries, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Short Term Bank 1.21 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 1, 2020, placed the
rating(s) of SWD under the 'issuer noncooperating' category as SWD
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. SWD continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 17, 2021, May 27, 2021, June 6, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of SWD has been revised
due to non-availability of requisite information.
SWD Industries (SWD) was established in the year 1999 (formerly
named as Silvassa Wooden Drums) by three partners Mr. R. C.
Khandelwal, Mr. A. P. Khandelwal and Mrs. Sunita Khandelwal. SWD is
engaged in manufacturing of Galvanized Steel Tapes (GS Tapes),
Galvanized Iron Wires/ Strips (GW/GS) and Cold Rolled Cold Annealed
(CRCA) coils and slits which mainly find application in power cable
manufacturing and telephone cable manufacturing business. SWD's
plants are located at Silvassa and Dadra & Nagar Haveli with the
installed capacity of 18,000 MTPA. Moreover, it also commenced the
manufacturing of Electrical Resistance Welding (ERW) pipes in March
2016, with an installed capacity of 3,000 MTPA. Besides undertaking
manufacturing activity for own sales, the firm also provides
job-work services for galvanizing wires and strips.
SWOSTI PREMIUM: CARE Lowers Rating on INR65cr LT Loan to B
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Swosti Premium Limited (SPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 65.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 6, 2020, placed the
rating(s) of SPL under the 'issuer non-cooperating' category as SPL
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. SPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 22, 2021, July 23, 2021, June 11, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SPL have been
revised on account of non-availability of requisite information.
Swosti Premium Limited (SPL) was incorporated under the guidance of
Mr. J.K. Mohanty as Swosti Plaza Ltd in March, 1997. Later it was
rechristened as Swosti Premium Limited in 2009. The company started
its operation in November 2000. The hotel currently has 147 rooms
comprising 76 standard rooms, 48 superior rooms and 23 suites.
Besides, SPL has 2 convention halls, 8 modern conference halls for
small groups, an exhibition hall, 3 restaurants and a bar. The
company has started another hotel named “Swosti Chilika Resort”
in January 2018. The hotel has 78 rooms consisting of 36 luxury
rooms, 36 villas, 5 pool villas and 1 Presidential suite. Besides
it also has 2 convention halls, 3 modern conference halls, 4
restaurants and a bar.
VASAN EYE: Seven Bidders Show Early Interest to Buy Eye Care Chain
------------------------------------------------------------------
The Times of India reports that there are seven bidders, including
a couple of Asset Reconstruction Companies, who have expressed
preliminary interest to take over the beleaguered eye care chain
Vasan Eye. The last date for submission of early interest ended
July 19.
The NCLT appointed resolution professional had called for early
interest for Vasan Eye Care, the report says. India's largest eye
care chain Dr Agarwal's Eye and MGM Hospital's promoter MK
Rajagopalan, Dr GSK Velu's MaxiVision are among the list of
bidders. Dr Amar Agarwal and MK Rajagopalan did not wish to comment
on the bid.
Poster boy of aggressive expansion, Vasan Eye went into insolvency
process after it failed to repay debts of nearly INR1,628 crore and
its creditors dragged the company to the National Company Law
Tribunal (NCLT) to recover their dues, TOI notes. Its misery was
compounded after regulatory authorities initiated probes into
investments made by politicians. It further went down the spiral
after its promoter Dr Arun died last November, pulling the company
into insolvency courts. Two attempts to find a suitor didn't make
any progress and the current one is the third.
"Our eye care business MaxiVision has submitted its interest. It is
a long shot. Our logic is simple: we are strong in Andhra Pradesh
and Telangana. Vasan has a strong presence in other southern
states. Vasan has 94 units operational and earned nearly INR140
crore in revenues last year. And since the process is driven by
NCLT, legal issues will be dealt with and the asset will come clean
to the buyer," the report quotes Dr. Velu as saying.
VIZEBH COMPOSITECH: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vizebh
Compositech Private Limited (VCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 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 12, 2020, placed the
rating(s) of VCPL under the 'issuer non-cooperating' category as
VCPL 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. VCPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 28, 2021, May 8, 2021, May 18, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Gujarat (Vadodara) based VCPL was incorporated in October, 2013 by
Mr.Pradeep Mahalik, Mr.Amrish Patel, and Mr.Jinesh Patel. VCPL is
into manufacturing of different variants of composites, including
non-composites, sheet-molding compound/dough-molding
compound/bulk-molding compound, fiber-reinforced polymers, carbon
composites, composites advanced material, and thermoplastic polymer
products. The company has started its commercial production in
March 2016.
=========
J A P A N
=========
KYOTO CITY: Reconstruction Plan Calls for Big Spending Cuts
-----------------------------------------------------------
The Japan Times reports that facing possible bankruptcy, the city
of Kyoto has drafted a financial restructuring plan that would trim
its bureaucracy, reduce the number of elderly residents eligible
for bus and subway discounts and cut spending on day care centers.
"I deeply regret the fact that we've been forced to rely on special
measures in order to manage our finances," the report quotes Kyoto
Mayor Daisaku Kadokawa as saying on Aug. 10 when announcing the
plan. "We'll tackle all manner of reforms without making anything
sacred."
Kyoto faces a financial shortfall of nearly JPY280 billion over the
next five years, the report says. In April, Kadokawa warned the
city could be looking at possible bankruptcy unless it figured out
a way to come up with JPY160 billion in either cost cuts or
additional revenue by the end of fiscal 2025.
The Japan Times relates that the plan, which must be approved by
the Kyoto Municipal Assembly this autumn, calls for reducing the
city bureaucracy by more than 550 employees and raising the minimum
age of those eligible for discounted fares on public transport from
70 to 75.
In addition, subsidies to day care centers will be reviewed, the
report notes. Parents could face higher fees or the loss of some
services if the city cuts funding. Kyoto provides subsidies of
about JPY24 million per day care center, which are used to help
finance the salaries of workers.
Other proposals to raise revenue include increasing the fees for
municipal facilities. The city is also looking into raising
transportation fares, the report relays.
These cost cuts and possible price hikes are necessary, Kadokawa
said, due to past projects that are in the red - two municipal
subway lines, for example, are JPY5.4 billion in debt. The
construction costs for one of them - the Tozai Line, which connects
Kyoto station with the city center - were JPY546.1 billion, or 1.4
times the initial price tag, and the line has since been
underutlized.
According to the report, the coronavirus pandemic has brought
Kyoto's tourism industry to a standstill, and neither subway line
is generating the revenue it did in the pre-pandemic years when
Kyoto was booming as a domestic and international tourist
destination.
In 2019, Kyoto drew 53.5 million tourists, of which about 8.8
million were from abroad. Together, they spent around JPY1.2
trillion — the fourth straight year the figure had topped JPY1
trillion.
The Japan Times says the city also faces challenges in gaining
additional revenue by other methods, such as increasing local
property taxes. Kyoto's temples and shrines, the reason so many
tourists visit, as well as wooden buildings such as traditional
machiya, have lower property tax rates than more modern buildings,
but it is difficult politically - as well as not that significant
financially - to raise revenue that way.
Nor is the city considering placing additional taxes on
universities, the report notes. University students make up about
10% of the city's population and also receive various kinds of
assistance from the city, which will be reviewed, however.
=================
S I N G A P O R E
=================
BESTOFIRE & THERMAL: Creditors' Proofs of Debt Due on Sept. 10
--------------------------------------------------------------
Creditors of Bestofire & Thermal Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Sept. 10,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 11, 2021.
The company's liquidators are:
Ng Kian Kiat
Oon Su Sun
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
SS MARINE: Court to Hear Wind-Up Petition on Aug. 27
----------------------------------------------------
A petition to wind up the operations of SS Marine Engineering Pte
Ltd will be heard before the High Court of Singapore on Aug. 27,
2021, at 10:00 a.m.
DBS Bank Ltd filed the petition against the company on Aug. 4,
2021.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
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