/raid1/www/Hosts/bankrupt/TCRAP_Public/211119.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, November 19, 2021, Vol. 24, No. 226
Headlines
A U S T R A L I A
BLACK MAGIC: First Creditors' Meeting Set for Nov. 26
BLACKWATTLE TRUST 2021-2: S&P Assigns B Rating on Class F Notes
CORONADO GLOBAL: S&P Raises ICR to 'B', Outlook Stable
ENVIROCHAR PTY: First Creditors' Meeting Set for Nov. 26
GOTAGO PTY: First Creditors' Meeting Set for Nov. 26
HELIUM 3: First Creditors' Meeting Set for Nov. 25
PRIVIUM GROUP: First Creditors' Meeting Set for Nov. 29
PRIVIUM GROUP: In Administration; Owes More Than AUD28 Million
TRITON TRUST 9: Fitch Affirms B+ Rating on Series 2018-1 E Notes
C H I N A
CBAK ENERGY: Posts $20 Million Net Income in Third Quarter
CHINA AOYUAN: S&P Lowers ICR to 'CCC' on Liquidity Crunch
CHINA EVERGRANDE: Offloads Remaining Stake in Video Streaming Firm
CHINA HUARONG: Secures US$6.59-Bil. State-Led Investment
CHINA SCE: Fitch Lowers Foreign Currency IDR to 'B+'
SUNING.COM: Denies Bankruptcy Rumors on Heels of $644.68MM Q3 Loss
TD HOLDINGS: Posts $457,615 Net Income in Third Quarter
I N D I A
AJARA HEALTH: Ind-Ra Hikes Long-Term Issuer Rating to 'BB'
AKASH COTEX: CRISIL Lowers Rating on INR11cr Cash Loan to B
ALMIGHTY AUTO: CRISIL Keeps B Debt Ratings in Not Cooperating
AMP UNIVERSAL: CRISIL Keeps B Debt Ratings in Not Cooperating
BIHANI BINAYAKE: CARE Keeps B Debt Rating in Not Cooperating
CANPLY INDIA: CRISIL Lowers Rating on INR6cr Cash Loan to B
CARREG COMMODITIES: CRISIL Keeps B+ Ratings in Not Cooperating
CHEMM FINANCE: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable
EDAYAR ZINC: CARE Keeps D Debt Ratings in Not Cooperating
ESWARI EXPORTS: CRISIL Keeps B Debt Ratings in Not Cooperating
GEM CORPOCHEM: CRISIL Keeps B Debt Rating in Not Cooperating
GVG KRAFT: Ind-Ra Hikes LT Issuer Rating to 'BB+', Outlook Stable
JCO GAS: CRISIL Keeps B Debt Rating in Not Cooperating Category
KISANMITRA COLD: CARE Keeps B+ Debt Ratings in Not Cooperating
KOMMINENI INFOTECH: CARE Keeps D Debt Ratings in Not Cooperating
KRISHNASHRAY (INDIA): CARE Lowers Rating on INR10.09cr Loan to C
LAKHOTIA TRANSPORT: Ind-Ra Gives BB Issuer Rating, Outlook Stable
MAA JOYTARA: CARE Keeps B- Debt Rating in Not Cooperating
NIKKI STEELS: CARE Keeps B- Debt Rating in Not Cooperating
P. N. GAWANDE: CARE Keeps B- Debt Rating in Not Cooperating
PAITHAN MEGA: CARE Lowers Rating on INR34.76cr LT Loan to D
PEETHAMBRA GRANITES: CRISIL Lowers Rating on INR12.5cr Loan to B
PLATINUM TEXTILES: CARE Lowers Rating on INR415.53cr Loan to B+
RAJASTHAN HYBRIDS: CARE Withdraws B+ Rating on Bank Facilities
RCI INDUSTRIES: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
RKB GLOBAL: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
ROYAL CONSTRUCTION: CRISIL Lowers Rating on INR8.5cr Loan to B
RUKSON PACKAGING: CARE Keeps B Debt Rating in Not Cooperating
SAI DURGA: CARE Keeps D Debt Ratings in Not Cooperating Category
SAKA EMBROIDERY: CARE Lowers Rating on INR10.58cr Loan to B-
SANATAN MERCHANTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
SANTLAL INDUSTRIES: CARE Keeps C Debt Ratings in Not Cooperating
TRN ENERGY: Ind-Ra Affirms 'D' Term Loan Rating
UNITON INFRA: CARE Lowers Rating on INR15cr LT Loan to B-
VICHITA ESTATE: CARE Keeps B Debt Rating in Not Cooperating
I N D O N E S I A
LIPPO KARAWACI: S&P Withdraws 'B-' LongTerm Issuer Credit Rating
N E W Z E A L A N D
CARMONT FASHIONS: Creditors' Proofs of Debt Due Dec. 15
INFINITY LIFESTYLE: Creditors' Proofs of Debt Due on Dec. 21
KERERU 9: Creditors' Proofs of Debt Due on Dec. 16
S I N G A P O R E
EHT US1 INC: Mediation Nixed for Howard Wu Appeals
HUA SHENG: Creditors' Meeting Scheduled for Dec. 1
NAN ZHOU: Creditors' Meeting Scheduled for Dec. 1
NEREUS THERAPEUTICS: Commences Wind-Up Proceedings
- - - - -
=================
A U S T R A L I A
=================
BLACK MAGIC: First Creditors' Meeting Set for Nov. 26
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Black Magic
Plus Pty Ltd will be held on Nov. 26, 2021, at 10:00 a.m. via
virtual meeting technology.
Mitchell Griffiths and Rapsey Griffiths Turnaround + Advisory were
appointed as administrators of Black Magic on Nov. 16, 2021.
BLACKWATTLE TRUST 2021-2: S&P Assigns B Rating on Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its ratings to seven classes of
residential mortgage-backed securities (RMBS) issued by Permanent
Custodians Ltd. as trustee for Blackwattle Series RMBS Trust
2021-2. Blackwattle Series RMBS Trust 2021-2 is a securitization of
prime residential mortgages originated by Sintex Consolidated Pty
Ltd. (Sintex).
The ratings assigned reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each class of notes are commensurate
with the ratings assigned. Credit support is provided by
subordination, lenders' mortgage insurance (LMI), and excess
spread. S&P's assessment of credit risk takes into account Sintex's
underwriting standards and approval process, the servicing quality
of Sintex, and the support provided by the LMI policies on 1.6% of
the loans in the portfolio.
The rated notes can meet timely payment of interest and ultimate
payment of principal under the rating stresses. Key rating factors
are the level of subordination provided, the LMI cover, the
interest-rate swaps, the loss reserve, the liquidity facility, the
principal draw function, and the provision of an extraordinary
expense reserve. S&P's analysis is on the basis that the notes are
fully redeemed by their legal final maturity date, and it assumes
the notes are not called at or beyond the call-option date.
"Our ratings also take into account the counterparty exposure to
Westpac Banking Corp. as interest-rate swap provider, bank account
provider, and liquidity facility provider. Interest-rate swaps are
provided if needed to hedge the mismatch between the fixed-rate
mortgage loans and the floating-rate obligations on the notes. The
transaction documents for the swap and facilities include downgrade
language consistent with S&P Global Ratings' counterparty
criteria.
"We have also factored into our ratings the legal structure of the
trust, which is established as a special-purpose entity and meets
our criteria for insolvency remoteness."
Ratings Assigned
Blackwattle Series RMBS Trust 2021-2
Class A1, A$255.00 million: AAA (sf)
Class A2, A$21.00 million: AAA (sf)
Class B, A$8.55 million: AA (sf)
Class C, A$6.15 million: A (sf)
Class D, A$3.90 million: BBB (sf)
Class E, A$2.40 million: BB (sf)
Class F, A$1.65 million: B (sf)
Class G, A$1.35 million: Not rated
CORONADO GLOBAL: S&P Raises ICR to 'B', Outlook Stable
------------------------------------------------------
S&P Global Ratings raised its issuer credit rating to 'B' from 'B-'
on Australia-based coal company Coronado Global Resources Inc. At
the same time, S&P raised the issue-level rating on the company's
senior secured debt to 'B+' from 'B'. The recovery rating on the
senior secured debt is '2' (85%).
The stable outlook reflects S&P's view that Coronado will continue
building a liquidity buffer during the current period of elevated
met coal prices while managing its capital investments and
shareholder distributions.
S&P said, "Strong met coal pricing conditions have supported a
swift recovery in Coronado's financial position, and we anticipate
these conditions will facilitate robust cash flow generation for
the next six months at least. Ongoing global industrial demand
recovery and coal supply tightness with China's import ban on
Australian coal have led to sustained met coal prices above US$250
per ton (t) since the beginning of September 2021. The premium low
volatile Australia benchmark prices averaged about US$265/t in the
third quarter of 2021. We expect the fourth quarter average to
remain at elevated prices given prices in October were about
US$400/t. Strong prices coupled with normalizing production in
Australia and the U.S. should help the company's revenue recover
significantly in the second half of 2021, with upside forecast into
2022. As Coronado's operating cash flow is highly sensitive to
pricing changes, we anticipate that favorable pricing and
efficiency initiatives should support US$300 million to US$330
million of free cash inflow in fiscal 2021. Coronado's leverage
ratio, as measured by adjusted debt to EBITDA, could therefore
deleverage to about 0.7x-1x in 2021 from 8.9x in 2020.
"In our view, Coronado's liquidity position has materially
improved, and management is committed to upholding a more
conservative approach to liquidity management. Coronado's improved
liquidity position has allowed the company to redeem 10% of its
US$350 million senior secured notes. The company redeemed these
notes at a redemption price of 103% of the principal amount of the
notes, plus accrued and unpaid interest on the notes. Thus, US$315
million of the notes remain outstanding. Liquidity is supported by
Coronado maintaining its undrawn US$100 million asset-based loan.
Furthermore, the company announced a sale of its idled asset,
Amonate, for US$30 million, which supplements the solid operating
cash flow for fiscal 2021.
"Further upward rating momentum is dependent on re-investment into
the business to support resiliency against low pricing coupled with
capital management discipline. We expect a strong finish to fiscal
2021, which will in turn reverse the liquidity crunch in the first
half. Consequently, we anticipate that Coronado will likely
distribute dividends for the full year ending Dec. 31, 2021. Our
analysis includes cash dividend payments of about US$180 million to
US$200 million in fiscal 2022, reflecting the bottom end of the
company's dividend policy of 60%-100% of free cash flow. We
forecast Coronado to maintain robust levels of cash on balance
sheet after making these distributions.
"Our price assumptions for 2022 have the hard coking coal benchmark
falling to US$170/t for the year, then down to US$140/t thereafter.
At these prices we believe management will prioritize capital
investment in the business to improve operational efficiencies and
lower operating costs to improve resiliency against low prices.
Even so, we expect the company to maintain a disciplined approach
to capital management such that new investments would not stress
the company's liquidity.
"We note that Coronado has negotiated U.S. domestic annual contract
prices across all grades of met coal products of about US$187/t
(free-on-rail basis) for fiscal 2022. These fixed price and tonnage
contracts cover about 32% of annual U.S. production and 92% of all
U.S. operating costs. In our view, these prices are strong outcomes
for Coronado and will support cash flow certainty in the event of
falling benchmark prices, which would affect cash flow from the
wider the business.
"The stable outlook reflects our view that the company will
maintain a moderate liquidity buffer and financial discipline
toward capital management activities. This should allow management
operational flexibility if the external operating environment
deteriorates."
S&P could lower the rating on Coronado if:
-- Its operating performance deteriorates, and leads to material
negative free cash flow, likely due to a sharp reversal of the coal
price trend; or
-- The company is more aggressive in capital deployment than S&P
forecasts, by using for instance higher capital expenditure
(capex), considerable dividend distribution, or conducting a
large-scale debt-funded acquisition, thereby eroding sources of
liquidity.
Rating upside depends on an improvement in operating costs to
better absorb lower prices, a commitment to conservative financial
policies and ample liquidity to comfortably withstand bouts of
sustained low prices. This would likely require a commitment to
adjusted debt to EBITDA less than 1.0x during benign market
conditions.
ENVIROCHAR PTY: First Creditors' Meeting Set for Nov. 26
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Envirochar
Pty Ltd will be held on Nov. 26, 2021, at 10:30 a.m. via virtual
meeting technology.
Mitchell Griffiths of Rapsey Griffiths Turnaround + Advisory was
appointed as administrator of Envirochar Pty on Nov. 16, 2021.
GOTAGO PTY: First Creditors' Meeting Set for Nov. 26
----------------------------------------------------
A first meeting of the creditors in the proceedings of Gotago Pty
Ltd will be held on Nov. 26, 2021, at 3:00 p.m. via
teleconference.
Grahame Ward and Domenic Alessandro Calabetta of Mackay Goodwin
were appointed as administrators of Gotago Pty on Nov. 17, 2021.
HELIUM 3: First Creditors' Meeting Set for Nov. 25
--------------------------------------------------
A first meeting of the creditors in the proceedings of Helium 3
Biotech Pty Ltd will be held on Nov. 25, 2021, at 10:30 a.m. via
teleconference.
David Ashley Norman Hurt and Jimmy Trpcevski of WA Insolvency
Solutions were appointed as administrators of Helium 3 on Nov. 15,
2021.
PRIVIUM GROUP: First Creditors' Meeting Set for Nov. 29
-------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Privium Group Pty Ltd
- Privium Pty Ltd
- Privium Investments Pty Ltd
- Privium Assets Pty Ltd
- Privium Civil Pty Ltd
- Impact Specs Pty Ltd
- Privium Developments Pty Ltd
- Residences on Bass Pty Ltd
- Impact Land Pty Ltd
will be held on Nov. 29, 2021, at 1:00 p.m. via online facility
only.
Joanne Emily Dunn, John Richard Park and Kelly-Anne Lavina
Trenfield of FTI Consulting were appointed as administrators of
Privium Group et al. on Nov. 17, 2021.
PRIVIUM GROUP: In Administration; Owes More Than AUD28 Million
--------------------------------------------------------------
SmartCompany reports that Queensland building group Privium has
collapsed into administration, leaving subcontractors across
Queensland, Victoria and New South Wales in the dark about the
future of hundreds of projects.
According to SmartCompany, the large residential construction
group, which reportedly has debts of more than AUD28 million, filed
for voluntary administration on Nov. 18, with Joanne Dunn, John
Park and Kelly-Anne Trenfield of the global firm FTI Consulting
appointed as administrators.
The group, led by director Rob Harder, operates in Queensland,
Victoria and NSW and has halted 160 projects while it assesses its
financial position.
SmartCompany says the group has had a turbulent year, with
directors Neil Wormwell, Donald Wormwell and James Harder leaving
their roles since August.
Following the collapse of the company this week, Privium appears to
have disabled its website.
Queensland-based John Goddard, spokesperson for the subcontractor
association Subbies United, said hundreds of subbies in the
industry will go unpaid for invoices dating as far back as
September and October, SmartCompany.
"Plasterers, roofers and carpenters will be owed money. Finishing
subcontractors, like people who do bathrooms, as well as some of
the biggest suppliers will be unpaid," Mr. Goddard told
SmartCompany.
Subbies United supports trades professionals who have concerns
about builders and developers, and urges subcontractors to lodge
complaints with their state regulator as soon as payments become
late.
In Queensland, if the Queensland Building and Construction
Commission (QBCC) receives complaints from three different
subcontractors about one company, it will launch an investigation.
SmartCompany relates that Mr. Goddard said the shortage of
construction materials "which has been pretty bad for quite a
while" has pushed prices up by 60% on some supplies, contributing
to the collapse of Privium.
The shortage of construction materials has worsened over the past
year as ongoing global supply chain issues delay shipments, pushing
the price of supplies such as timber up, the report states.
FTI Consulting is in the process of assessing Privium's balance
sheet and SmartCompany understands the first creditor meeting will
be held in late November, ahead of a second meeting in December.
TRITON TRUST 9: Fitch Affirms B+ Rating on Series 2018-1 E Notes
----------------------------------------------------------------
Fitch Ratings has affirmed five note classes from Triton Trust No.9
NTX Warehouse Series 2018-1. Fitch has also removed the class A, D
and E notes from Under Criteria Observation (UCO), on which they
were placed on 27 May 2021.
The warehouse transaction consists of notes backed by a pool of
first-ranking Australian residential mortgages originated by
Columbus Capital Pty Limited. The notes were issued by Perpetual
Corporate Trust Limited as trustee for Triton Trust No.9 NTX
Warehouse Series 2018-1.
DEBT RATING PRIOR
---- ------ -----
Triton Trust No.9 NTX Warehouse Series 2018-1
A LT AAsf Affirmed AAsf
B LT Asf Affirmed Asf
C LT BBBsf Affirmed BBBsf
D LT BBsf Affirmed BBsf
E LT B+sf Affirmed B+sf
KEY RATING DRIVERS
Resilient Asset Performance: There were no loans in 30+ day or 90+
day arrears as at end-August 2021, against 1.14% and 0.65%,
respectively, for Fitch's 2Q21 Dinkum RMBS Index. Transaction
performance has been strong, with no losses since closing.
The transaction has an availability period, therefore, Fitch's
analysis is based on a proxy pool stressed to pool parameters
provided by Columbus Capital and further stressed by Fitch. Stress
levels were defined based on originator and historical data and
Fitch's forward-looking view. Stresses were applied to a number of
portfolio characteristics to reflect the historical portfolio
composition and Fitch's expected future portfolio composition of
the pool.
The portfolio's 'AAAsf' weighted-average (WA) foreclosure frequency
of 13.8% is driven by the stressed WA unindexed loan/value ratio
(LVR) of 68.0%, stressed investment loans of 75.0% and
Fitch-adjusted 30+ day arrears of 1.6%. The 'AAAsf' WA recovery
rate of 44.8% is driven by the stressed portfolio's WA indexed
scheduled LVR of 70.6%.
Transaction Restructuring Supports Ratings: The recently signed
amendment deed has updated note limits, minimum credit enhancement,
minimum dollar subordination, pool parameters and class A note
margin. These changes have been incorporated in Fitch's asset and
cash flow models.
Full cash-flow analysis was performed for the trust utilising
documented note limits and minimum credit enhancement (CE).
Documented minimum CE percentages of the class A, B, C, D and E
notes are updated to 6.50%, 4.00%, 2.50%, 1.45% and 0.95%,
respectively, during the availability period. The transaction
employs a sequential structure after the availability period, with
no pro rata pay down permitted. The transaction also benefits from
a liquidity reserve sized at 1.4% of the outstanding note balance,
subject to a documented floor of AUD375,000.
Operational and Servicing Risk Consistent with Market Standard:
Columbus Capital is a non-bank that commenced lending in 2006.
Fitch undertook an operational review and found that the operations
of the originator and servicer were comparable with market
standards and that there were no material changes that may affect
Columbus Capital's ongoing ability to undertake origination,
administration and collection activities. The collections and
servicing activities have not been disrupted due to the Covid-19
pandemic, as staff can work remotely and are able to access the
office, if needed.
Economic Rebound in Medium-Term Supports Outlook: Portfolio
performance is supported by Australia's management of the pandemic,
including the nationwide vaccine rollout that is facilitating the
easing and removal of lockdown restrictions. Fitch expects
Australia's GDP growth to slow in 3Q21, cutting Fitch's 2021
forecast to 3.7%, with an unemployment rate of 5.2%. GDP growth
should accelerate to 4.5% in 2022 and the unemployment rate fall to
4.4%.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels
higher than Fitch's base case and are likely to result in a
decline in credit enhancement and remaining loss-coverage
levels available to the notes. Decreased credit enhancement
may make certain note ratings susceptible to negative rating
action, depending on the extent of the coverage decline.
Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions.
-- A longer pandemic than Fitch expects that leads to
deterioration in macroeconomic fundamentals and consumers'
financial positions in Australia beyond Fitch's baseline
scenario. Available credit enhancement cannot compensate for
higher credit losses and cash flow stresses, all else being
equal.
Downgrade Sensitivity
-- Note: A / B / C / D / E
-- Rating: AAsf/ Asf/ BBBsf/ BBsf/ B+sf
-- Increase defaults by 15%: AAsf/ Asf/ BBBsf/ BBsf/ B+sf
-- Increase defaults by 30%: AA-sf/ A-sf/ BBBsf/ BBsf/ B+sf
-- Reduce recoveries by 15%: AAsf/ Asf/ BBBsf/ BBsf/ B+sf
Reduce recoveries by 30%: AAsf/ BBB+sf/ BBBsf/ BBsf/ B+sf:
-- Increase defaults by 15% and reduce recoveries by 15%: AAsf/
A-sf/ BBBsf/ BBsf/ B+sf
-- Increase defaults by 30% and reduce recoveries by 30%: A+sf/
BBBsf/ BB+sf/ BBsf/ B+sf
-- The ratings on the class A, B, C, D and E notes are
independent of lenders' mortgage insurance (LMI) and therefore
not sensitive to downgrades in the LMI providers' ratings.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- An upgrade could result from macroeconomic conditions, loan
performance and credit losses that are better than Fitch's
baseline scenario or sufficient build-up of credit enhancement
that would fully compensate for credit losses and cash flow
stresses commensurate with higher rating scenarios, all else
being equal.
-- Note: A / B / C / D / E
-- Rating: AAsf/ Asf/ BBBsf/ BBsf/ B+sf
-- Reduce defaults by 15% and Increase recoveries by 15%: AAAsf/
AAsf/ AA-sf/ A+sf/ Asf
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that were
material to this analysis.
Prior to closing, Fitch sought to receive a third-party assessment
conducted on the asset portfolio information, but none was made
available for this transaction.
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of the originator's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=========
C H I N A
=========
CBAK ENERGY: Posts $20 Million Net Income in Third Quarter
----------------------------------------------------------
CBAK Energy Technology, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
of $20.02 million on $9.56 million of net revenues for the three
months ended Sept. 30, 2021, compared to net income of $41,715 on
$10.62 million of net revenues for the three months ended Sept. 30,
2020.
For the nine months ended Sept. 30, 2021, the Company reported net
income of $52.35 million on $24.87 million of net revenues compared
to a net loss of $3.51 million on $22.15 million of net revenues
for the nine months ended Sept. 30, 2020.
As of Sept. 30, 2021, the Company had $190.71 million in total
assets, $68.51 million in total liabilities, and $122.20 million in
total equity.
The Company has financed its liquidity requirements from long-term
and short-term bank loans, other short-term loans and bills payable
under bank credit agreements, advances from its related and
unrelated parties, and issuance of capital stock and other
securities to investors.
As of Sept. 30, 2021, the Company had cash and cash equivalents and
restricted cash of $17.5 million. Its total current assets were
$59.6 million and its total current liabilities were $49.4 million,
resulting in a net working capital of $10.2 million.
"We had an accumulated deficit from recurring losses from
operations and short-term debt obligations as of December 31, 2020
and September 30, 2021. As of December 31, 2020, we had a working
capital deficiency of $10.5 million. These factors raise
substantial doubts about our ability to continue as a going
concern. The report from our independent registered public
accounting firm for the year ended December 31, 2020 included an
explanatory paragraph in respect of the substantial doubt of our
ability to continue as a going concern. We are currently expanding
our product lines and manufacturing capacity and developing the new
business of producing light electric vehicles in our Dalian and
Nanjing plants, which requires more funding to finance the
expansion. We plan to renew our bank borrowings upon maturity and
raise additional funds through bank borrowings and equity financing
to meet our daily cash demands. However, there can be no assurance
that we will be successful in obtaining such financing," the
Company stated.
A full-text copy of the Form 10-Q is available for free at:
https://bit.ly/3nvYYh2
About CBAK Energy
Liaoning Province, People's Republic of China-based CBAK Energy --
www.cbak.com.cn -- is a manufacturer of new energy high power
lithium batteries that are mainly used in light electric vehicles,
electric vehicles, electric tools, energy storage including but not
limited to uninterruptible power supply (UPS) application, and
other high-power applications. Its primary product offering
consists of new energy high power lithium batteries, but it is also
seeking to expand into the production and sale of light electric
vehicles.
CBAK Energy reported a net loss of $7.85 million for the year ended
Dec. 31, 2020, compared to a net loss of $10.85 million for the
year ended Dec. 31, 2019. As of June 30, 2021, the Company had
$192.17 million in total assets, $90.34 million in total
liabilities, and $101.84 million in total equity.
Hong Kong, China-based Centurion ZD CPA & Co., the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated April 13, 2021, citing that the Company has a working
capital deficiency, accumulated deficit from recurring net losses
and significant short-term debt obligations maturing in less than
one year as of Dec. 31, 2020. All these factors raise substantial
doubt about its ability to continue as a going concern.
CHINA AOYUAN: S&P Lowers ICR to 'CCC' on Liquidity Crunch
---------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
China Aoyuan Group Ltd. to 'CCC' from 'B' and the long-term issue
rating on the company's outstanding senior unsecured notes to
'CCC-' from 'B-'.
S&P said, "The negative outlook reflects our view that Aoyuan may
face a substantial near-term liquidity strain due to dampened
access to its existing cash balance for debt repayment, sizable
maturities, and weakened cash generation.
"We downgraded Aoyuan because we believe its nonpayment risk is
considerably increasing due to dampened access to its existing cash
balance for debt repayment. In the absence of alternative
fundraising plans, the company is vulnerable to a substantial
liquidity strain given its sizable debt maturities in 2022.
"Aoyuan's accessibility to its cash for debt repayment is likely to
be low. We now believe the company needs external capital to repay
US$500 million senior notes due in January 2022, contrary to our
previous expectation of Aoyuan using internal resources for this
purpose. Aoyuan also has a further US$188 million, in 364-day
senior notes, due around the same time. The total is equivalent to
about Chinese renminbi (RMB)4.5 billion.
"The company's access to onshore cash for debt repayment seems to
be more restricted than our previous assessment, or that the
accessible cash has to fulfill other uses. This is despite
management noting that about 60% of its total cash is at the
holding company level. We believe Aoyuan's underlying liquidity is
considerably tighter than the situation depicted by its cash
coverage metrics. As such, we revised our assessment of Aoyuan's
liquidity to weak from less than adequate.
"Recent asset disposals have not fully mitigated Aoyuan's repayment
risk. Net proceeds of about HK$300 million from the sale of
Robinson Road project in Hong Kong, the potential sale of Aoyuan
Healthy's property management business, and other likely near-term
project disposals, are unlikely to fully cover the US$688 million,
or about RMB4.5 billion equivalent, in offshore maturities in
January 2022, in our view. There is not a lot of time remaining for
the company to execute the fundraising plans.
"For the rest of 2022, the company will also face US$200 million
private notes puttable maturing in June, US$250 million senior
notes due in September, as well as syndicated loans and other debt
repayments. Furthermore, we estimate cash outflow of RMB6
billion-RMB8 billion to fund the reduction of minority interests in
2022. Although the company expects to finalize more asset disposals
and funding plans soon, we see high uncertainty in the execution
and timing of such plans.
"Aoyuan's s slowing sales momentum will further weaken its cash
inflow. Despite a strong performance during the first week of
October, Aoyuan's sales declined about 50% in the month year on
year. Sales will likely remain soft over the coming six to 12
months, in our view. Therefore, we expect Aoyuan's contracted sales
to fall by 3%-5% in 2021 and 2022. This will limit Aoyuan's
capacity to address repayment pressure and restore its liquidity
with internal resources.
"The negative outlook on Aoyuan reflects our view that the company
may face a near-term liquidity crisis. We believe Aoyuan's
liquidity will remain tight due to dampened access to its existing
cash balance for debt repayment, sizable maturities, and lower cash
generation.
"We could lower the rating on Aoyuan if the prospect of debt
repayment further weakens. This may happen if Aoyuan fails to
accelerate the execution of its plans for asset disposals and other
fund raising.
"We may raise the rating if Aoyuan resolves the repayment pressure
and improves its liquidity. This could be achieved if the company
regains capital market access for refinancing, or secures
significantly more capital through asset disposals or fund raising
than we expect."
CHINA EVERGRANDE: Offloads Remaining Stake in Video Streaming Firm
------------------------------------------------------------------
Caixin Global reports that China Evergrande Group has announced it
is selling its remaining 18% stake in film and television streaming
company HengTen Networks Group Ltd. for HK$2.13 billion (US$273.2
million), in its latest move to dig itself out of debt.
The real estate developer agreed to sell around 1.66 billion
HengTen shares to Allied Resources Investment Holdings Ltd. for
HK$1.28 per share, according to a Hong Kong stock exchange filing
released before the market opened Nov. 18, Caixin relays. The
figure represents a 24.2% discount to HengTen's closing price on
Nov. 17.
Evergrande expects to eat an approximately HK$8.5 billion loss from
the deal with the Hong Kong-based investment firm, according to the
filing cited by Caixin. The developer noted that the sale could
help it improve its "liquidity issue" and said that it plans to use
the proceeds for "general working capital."
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 Sept.
30, 2021, Fitch Ratings has downgraded to 'C' from 'CC', the
Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of Chinese
homebuilder, China Evergrande Group, and its subsidiaries, Hengda
Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has
affirmed the senior unsecured ratings of Evergrande and Tianji at
'C', with a Recovery Rating of 'RR6', as well as the
Tianji-guaranteed senior unsecured notes issued by Scenery Journey
Limited at 'C', with a Recovery Rating of 'RR6'.
S&P Global Ratings' rating for China Evergrande Group and its
subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding
Ltd. was lowered to 'CC' from 'CCC' last September 15, 2021. S&P
also lowered its long-term issue rating on the U.S. dollar notes
issued by Evergrande and guaranteed by Tianji to 'C' from 'CCC-'.
CHINA HUARONG: Secures US$6.59-Bil. State-Led Investment
--------------------------------------------------------
Reuters reports that Chinese state-owned asset manager China
Huarong Asset Management said on Nov. 17 it will receive fresh
capital worth CNY42 billion ($6.59 billion) from a state consortium
led by Citic Group as part of a restructuring plan.
Reuters relates that Huarong intends to issue a maximum of 39.22
billion domestic shares and not more than 1.96 billion shares
listed on the Hong Kong exchange to a consortium of investors
including Citic Group, China Cinda Asset Management and China Life
Insurance, among others.
"It is of the view that the Issuance is the only practical measure
to solve the capital insufficiency difficulty of the company and to
satisfy the regulatory requirement," Huarong said in the filing to
the Hong Kong stock exchange.
According to Reuters, the deal would allow Citic Group to assume
the Chinese government's controlling stake in the embattled asset
manager as part of a plan by regulators to fold financially shaky
state asset managers into financial holding groups.
Citic Group would subscribe to no more than 18.82 billion shares in
Huarong while China Cinda, in a separate statement, said it would
contribute about CNY4 billion to pick up a 4.89% stake in Huarong,
Reuters relates.
Huarong, one of the four state distressed debt managers and counts
China's finance ministry as its largest shareholder, had missed a
March deadline for filing its 2020 earnings, sparking a rout in its
U.S. dollar-denominated bonds that spread to other Chinese issuers,
the report says.
Bonds rebounded in August after the state-backed rescue plan, and
its divestment deals amid a regulatory push to sell non-core assets
as part of its business revamp, Reuters has reported.
In its statement on Nov. 17, Huarong said that it would sell its
40.5% stake Huarong Xiangjiang Bank, and 79.9% stake in its
financial leasing unit, Reuters reports. It previously revealed
similar divestment plans in consumer finance unit, and securities
unit.
On Nov. 16, Huarong has been granted approval to raise CNY70
billion of financial bonds in the interbank market, as it continues
to recover its credit profile and re-focus on its main bad loan
business, adds Reuters.
About China Huarong
China Huarong Asset Management Co Ltd is a China-based company
mainly engaged in asset management business. The Company operates
through three segments. The Distressed Asset Management Operations
segment is engaged in distressed asset management, debt equity swap
asset management, the management of non-performing assets carried
out by subsidiaries distressed asset management business conducted
by its subsidiaries, distressed asset-based special situations
investments business and distressed asset-based property
development business. The Financial Services segment mainly
includes securities and futures business, financial leasing
business, banking services business and consumer finance business.
The Asset Management and Investment Operations segment is mainly
engaged in trust business, private equity funds business, financial
investments business, international business, and other businesses.
CHINA SCE: Fitch Lowers Foreign Currency IDR to 'B+'
----------------------------------------------------
Fitch Ratings has downgraded China SCE Group Holdings Limited's
Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B+' from
'BB-'. The Outlook is Stable. Fitch has also downgraded China SCE's
senior unsecured rating and the ratings on its outstanding
US-dollar senior unsecured notes to 'B+' with a Recovery Rating of
'RR4', from 'BB-'.
Fitch has removed all the ratings from Under Criteria Observation
(UCO), on which they were placed on 20 October 2021, following the
publication of its updated Corporate Rating Criteria.
The downgrade reflects China SCE's weakened financial flexibility
amid capital-market volatility and a slowdown in contracted sales.
Fitch expects China SCE to utilise its cash on hand to repay its
maturing capital-market debt, which could affect its business
profile. Its financial structure is also closer to 'B+' rated
peers, as lower leverage is offset by relatively high exposure to
joint ventures (JVs) and non-controlling interests (NCIs).
The Stable Outlook reflects Fitch's view that the company has
sufficient liquidity to address its capital-market maturities,
which are well spread out.
KEY RATING DRIVERS
Upcoming Capital Market Maturities: Fitch estimates that China SCE
has CNY6.7 billion of capital-market debt maturing or becoming
puttable through to end-2022, including USD500 million of bonds due
on 10 March 2022, and CNY1.46 billion and CNY2 billion of onshore
bonds that will become puttable in July 2022 and October 2022,
respectively.
Fitch believes capital markets are likely to remain shut for China
SCE and Fitch expects it to use its cash on hand and internal cash
flows to address the upcoming maturities. The company had
unrestricted cash of CNY15.3 billion at end-1H21, of which about
50% is held at the holding company level.
High Exposure to JVs and NCIs: China SCE's leverage, denoted by net
debt/net property assets, of 44% at end-1H21 was comparable with
'BB' category peers, but it has high exposure to JVs and NCIs. Its
consolidated leverage may not fully reflect the financial positions
of its JVs, and there could be cash leakage to minority interests.
China SCE's implied cash collection / total contracted sales was
42% at end-1H21, and the ratio of JV assets to net
development-property (DP) assets was 19%. Its NCI net claims were
equivalent to 19% of net DP assets.
Slowing Contracted Sales: China SCE's contracted sales fell by over
30% yoy in September and October, broadly in line with the overall
market. Total contracted sales rose by 13% yoy to CNY90 billion in
10M21. Assuming monthly contracted sales of CNY7.5 billion in
November and December (implying a 30% yoy decline), contracted
sales for full year 2021 would reach CNY105 billion (2020: CNY102
billion). The cash collection rate has been steady at around 75%,
but Fitch forecasts attributable contracted sales to increase to
CNY68 billion in 2021 (2020: CNY55 billion) due to higher
attributable interest.
Sufficient Land Bank: China SCE spent CNY26 billion on land
acquisitions in 1H21 and its saleable land-bank life was around
2.5-3 years at end-1H21. It has made a small number of land
acquisitions in 2H21 as these were already in advanced
negotiations, but it does not intend to purchase significant
amounts of land in the near future, as it reserves cash for
repayment of debt maturities.
DERIVATION SUMMARY
China SCE's business profile is comparable with that of Times China
Holdings Limited (BB-/Negative). China SCE's attributable
contracted sales of CNY55 billion in 2020 was comparable with Times
China's CNY62 billion. China SCE's financial structure, with
leverage of 44%, is slightly better than Times China's 47%. In
addition, China SCE's exposure to NCIs, measured by NCI net claims
/ net DP assets, of 19% is lower than Times China's (35%).
The difference in rating is primarily due to Times China's stronger
financial flexibility, as suggested by the fact that China SCE's
available cash / short-term debt ratio of 1.2x was lower than Times
China's 2.0x. Fitch places more emphasis on financial flexibility
under the current industry environment.
China SCE's attributable contracted sales were lower than China
Aoyuan Group Limited's (B+/Negative) CNY98 billion in 2020, but its
leverage was also lower than Aoyuan's 54% at end-1H21. China SCE's
exposure to NCIs was also lower than Aoyuan's NCI net claims / net
DP assets of 25%. Aoyuan's weaker bond prices also suggest that
investor sentiment toward the company has deteriorated more than
for China SCE.
Central China Real Estate Limited's (CCRE, B+/Negative) rating is
mainly constrained by its scale, with attributable contracted sales
of CNY48 billion, and its geographical concentration in Henan
province. In contrast, China SCE's scale is slightly larger and it
is diversified across several economic zones. In addition, CCRE is
highly reliant on offshore bond funding, with US dollar bonds
accounting for 65% of its total debt, compared with 34% for China
SCE.
Yuzhou Group Holdings Company Limited (B/Negative) and China SCE
face similar amounts of capital-market debt maturities through
end-2022, but Fitch believes both should have sufficient liquidity
to address the maturities. Yuzhou relies more heavily on
capital-market debt, which accounted for 68% of total debt at
end-1H21, compared with 42% for China SCE. Yuzhou's rating is also
constrained by its lower balance-sheet transparency as its implied
cash collection rate of 23% in 2020 was lower than the 42% for
China SCE. Yuzhou's land-bank life was 1.9 years, shorter than
China SCE's 2.7 years, while its DP revenue was smaller at CNY11.7
billion compared with China SCE's CNY19.7 billion in 1H21.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Attributable contracted sales to rise by 23% in 2021 and fall
by 8% in 2022;
-- 75% of sales proceeds spent on land acquisitions in 2021, 30%
in 2022;
-- 38% of sales proceeds spent on construction costs in 2021-
2022;
-- DP gross-profit margin of 23% in 2021 and 21% in 2022.
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that China SCE would be liquidated in
bankruptcy.
Fitch has assumed a 10% administrative claim.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
-- 60% advance rate on adjusted net inventory to reflect
expectation of lower EBITDA margins in the overall sector;
-- 30% advance rate on investment properties as the rental yield
on completed investment properties was close to 2%;
-- 60% advance rate on land and buildings;
-- 70% advance rate on receivables.
The allocation of value in the liability waterfall results in a
recovery rating of 'RR2' for the offshore senior unsecured debt.
However, the Recovery Rating for senior unsecured debt is capped at
'RR4' because under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria, China falls into Group D of creditor
friendliness, and the Recovery Ratings of issuers with assets in
this group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Leverage, measured by net debt/net property assets, sustained
below 45%, or material improvement in balance-sheet
transparency and/or exposure to NCIs;
-- Improvement in liquidity or access to capital-market funding;
-- Contracted sales remains in line with those of 'BB-' peers.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Leverage, measured by net debt/net property assets, sustained
above 55%, or material deterioration in balance-sheet
transparency and/or exposure to NCIs;
-- Deterioration in liquidity or continued lack of capital market
funding access;
-- Sustained decline in contracted sales or cash collection.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: China SCE had unrestricted cash of CNY15.3
billion as at 1H21, which was sufficient to cover short-term debt
of CNY12.5 billion (i.e. available cash/short-term debt ratio of
1.2x). The company's short-term debt included CNY5.4 billion of
bank loans, CNY3.3 billion of trust loans, and CNY3.8 billion of
bonds, including CNY540 million of onshore bonds puttable in August
that were extended for two years to August 2023, and USD500 million
of bonds maturing in March 2022.
ISSUER PROFILE
China SCE is one of China's 50 largest property developers. As of
June 2021, it had a land bank with total gross floor area of 37
million square metres. China SCE has operations in major economic
zones, including Fujian province, the Yangtze River Delta, the
Bohai Rim and Central Western China.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets includes: properties
under development, completed properties for sale, investment
properties, land and buildings, investment in JV and associates,
amount due from JV and associates, project-related restricted cash,
less contract liabilities adjusted by its gross profit margin,
payables and amount due to JV and associates. Fitch includes the
guarantee to JV and associates and related parties in net debt and
net property assets.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
SUNING.COM: Denies Bankruptcy Rumors on Heels of $644.68MM Q3 Loss
------------------------------------------------------------------
Pandaily reports that on Suning.com on Nov. 16 posted a statement
on Twitter-like social media platform Weibo, saying that the topic
reading "Suning.com to declare bankruptcy at the end of December”
was a rumor and that the company was operating normally. It has
also reported the incident to public security officials, and the
rumormongers will be investigated for legal responsibility
according to law, the report says.
At the end of October, Suning.com released its financial report for
the third quarter of 2021. The report showed that in the period,
Suning.com's revenue was about CNY21.968 billion ($344.06 million),
down 64.82% year-on-year, and its loss was CNY4.116 billion
($644.68 million), down 676.73% year-on-year, Pandaily discloses.
In the first three quarters, the revenue was CNY115.57 billion,
down 36.1% year-on-year. Total losses reached CNY7.568 billion,
down 1483.29% year-on-year.
According to the report, the third quarter of this year was the
most difficult period for Suning.com. Since June, a continuous
liquidity crisis has caused the inventory scale of the company's
core 3C home appliance business to reach the lowest value in
history, and the sales scale has dropped sharply, resulting in a
large loss in operating performance.
In addition, the report pointed out that Suning.com is still in a
difficult stage, but with the support of provincial and municipal
governments and investors from various industries, the management
team and all employees have fully promoted to the recovery of
production and operations, Pandaily relates. It is expected by the
company that the operating losses in the fourth quarter will be
greatly narrowed compared with the third quarter.
Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.
TD HOLDINGS: Posts $457,615 Net Income in Third Quarter
-------------------------------------------------------
TD Holdings, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing net income of $457,615
on $54.77 million of total revenues for the three months ended
Sept. 30, 2021, compared to net income of $546,801 on $6.87 million
of total revenues for the three months ended Sept. 30, 2020.
For the nine months ended Sept. 30, 2021, the Company reported a
net loss of $722,805 on $144.20 million of total revenues compared
to a net loss of $5.27 million on $10.02 million of total revenues
for the nine months ended Sept. 30, 2020.
As of Sept. 30, 2021, the Company had $218.79 million in total
assets, $28.13 million in total liabilities, and $190.66 million in
total equity.
A full-text copy of the Form 10-Q is available for free at:
https://bit.ly/3kLWMR6
About TD Holdings
TD Holdings, Inc. is a service provider currently engaging in
commodity trading business and supply chain service business in
China. Its commodities trading business primarily involves
purchasing non-ferrous metal product from upstream metal and
mineral suppliers and then selling to downstream customers. Its
supply chain service business primarily has served as a one-stop
commodity supply chain service and digital intelligence supply
chain platform integrating upstream and downstream enterprises,
warehouses, logistics, information, and futures trading. For more
information, please visit http://ir.tdglg.com.
TD Holdings reported a net loss of $5.95 million for the year ended
Dec. 31, 2020, compared to a net loss of $6.94 million for the year
ended Dec. 31, 2019. As of June 30, 2021, the Company had $186.59
million in total assets, $37.33 million in total liabilities, and
$149.26 million in total equity.
=========
I N D I A
=========
AJARA HEALTH: Ind-Ra Hikes Long-Term Issuer Rating to 'BB'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Ajara Health Care
and Research Centre Private Limited's (AHCRC) Long-Term Issuer
Rating to 'IND BB' from 'IND B (ISSUER NOT COOPERATING)'. The
Outlook is Stable.
The instrument-wise rating action is:
-- INR293 mil. Term loans due on April 2026 upgraded with IND BB
/Stable rating.
KEY RATING DRIVERS
The upgrade reflects an improvement in AHCRC's small scale of
operations, as indicated by revenue of INR375.44 million in FY21
(FY20: INR40.84 million). The revenue improved significantly in
FY21 as it was the first full year of operations; the hospital
commenced its operations from December 2019. Since inception, the
hospital has been functioning on average 30%-40% occupancy rate;
however, the same surged to 70% in FY21 owing to the hospital being
turned into a COVID-19 hospital. Ind-Ra expects the hospital to
maintain an occupancy of 40%-60% on account of the commencement of
functioning of operation theatres and an increase in the number of
the patients visiting the hospital as it is one of the leading
multi-speciality hospital in Warangal district. Till 6MFY22, AHCRC
booked revenue of INR270 million. FY21 financials are provisional
in nature.
The rating also factors in AHCRC's healthy EBITDA margin of 31.12%
in FY21 (FY20: 6.9%) with a return on capital employed of 14.3%
(negative 3.9%). The hospital's margin expanded in FY21 owing to an
increase in the top line, which led to increased absorption of
expenses. In FY22, Ind-Ra expects the EBITDA margin to remain at
similar level.
The rating also factors in AHCRC's comfortable credit metrics as
reflected from the interest coverage (operating EBITDA/gross
interest expenses) of 3.43x in FY21 (FY20: 0.12x) and the net
leverage (total adjusted net debt/operating EBITDAR) of 2.59x
(103.66x). The metrics improved in FY21, on account of a
significant improvement in the EBITDA. In the medium term, Ind-Ra
expects the credit metrics to improve due to an increase in the
scale of operations and reduction in debt, due to the scheduled
repayments.
The ratings are also supported by the long experience of the
promoters in healthcare industry.
Liquidity Indicator – Stretched: AHCRC does not have any capital
market exposure and relies on promoter, banks and financial
institutions to meet its funding requirements. It availed of the
Reserve Bank of India-prescribed moratorium over March-August 2020.
The company relies on a single bank to meet its funding
requirement. Its cash flow from operations declined to INR36.05
million in FY21 (FY20: INR44.69 million) due to a stretch in the
working capital management. Further, the free cash flow remained
negative at INR36.43million in FY21 (FY20: negative INR197.24
million) due to the capital expenditure incurred by the company.
The net working capital cycle stood at 3 days in FY21 (FY20:
negative 350 days) due to a decrease in the creditors. The cash and
cash equivalents stood at INR6.24 million at FYE21 (FYE20: INR7.42
million). AHCRC's average maximum utilization of the fund-based
limits was 20% during the last 12 months ended September 2021 with
no instance of overutilization. The total term loan repayment for
FY22 and FY23 are INR44.2 million and INR44.2 million
respectively.
RATING SENSITIVITIES
Positive: Sustained Ind-Ra-expected occupancy rate , leading to an
improvement in the scale of operation, along with an improvement in
the overall credit metrics and liquidity profile, on a sustained
basis, could lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics, and/or further
pressure on the liquidity position, could lead to negative rating
action.
COMPANY PROFILE
Established in June 2011, AHCRC is a 350-bed multi super speciality
hospital in Hanumakonda, Warangal District, and Telangana State.
The company began its commercial operations from December 2019.
AKASH COTEX: CRISIL Lowers Rating on INR11cr Cash Loan to B
-----------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Akash
Cotex (AC) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Term Loan 3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with AC for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AC
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
AC was set up in 2013 at Rajkot (Gujarat) as a partnership between
Mr. Rajesh Kasundra, Mr. Shivlal Vashrambhai, Mr. Shaileshbhai
Vekariya and Mr. Kalpesh Gopani The firm gins and presses raw
cotton (kapas) to produce cotton bales.
ALMIGHTY AUTO: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Almighty Auto
Ancillary Private Limited (AAPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 1.5 CRISIL B/Stable (Issuer Not
Cooperating)
Export Packing 3.5 CRISIL B/Stable (Issuer Not
Credit Cooperating)
Foreign Bill 19 CRISIL B/Stable (Issuer Not
Purchase Cooperating)
CRISIL Ratings has been consistently following up with AAPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AAPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
AAPL, incorporated in 2004 by the late Mr. Raminder Singh Mago,
manufactures linkage pins and wash and wipe systems used in heavy
vehicles, including heavy-duty trucks and buses. The founder's son,
Mr. Gunmeet Mago, manages the company's day-to-day operations.
AMP UNIVERSAL: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of AMP Universal
Realty Private Limited (AMP) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental 0.9 CRISIL B/Stable (Issuer Not
Discounting Loan Cooperating)
Proposed Long Term 17.1 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with AMP for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AMP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AMP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AMP continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2006, AMP is promoted by the Meharia consortium,
the Tavarya group, the Shanta Subhasree group, and the Shivalik
group. It was formed to develop a commercial complex, AMP Baisakhi
in Kolkata, in a joint venture with Bidhannagar Municipality.
BIHANI BINAYAKE: CARE Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bihani
Binayake Cotex Private Limited (BBCPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.39 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 November 4, 2020, placed the
rating(s) of BBCPL under the 'issuer non-cooperating' category as
BBCPL 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. BBCPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 20, 2021, September 30, 2021, October 10, 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.
BBCPL was incorporated in 2004 and is engaged in the business of
cotton ginning & pressing at its manufacturing facility based in
Marathwada (Maharashtra). The entity procures raw cotton from local
farmers and Agriculture Produce Market Committee (APMC). The major
proportion of revenue is derived from ginning process (~99%) and
rest from trading of cotton seed and cotton cake.
CANPLY INDIA: CRISIL Lowers Rating on INR6cr Cash Loan to B
-----------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Canply
India Private Limited (CIPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Foreign Letter 1 CRISIL B/Stable (ISSUER NOT
of Credit COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with CIPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
CIPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
CIPL, incorporated in 2012, is engaged in trading of wood plywood.
The company is promoted by Mr. M J Robert and Mrs Varna Simple
Truman. The company is based out of Bangalore, Karnataka.
CARREG COMMODITIES: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Carreg
Commodities Private Limited (Carreg) continue to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 5 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with Carreg for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Carreg, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Carreg is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Carreg continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Carreg was incorporated in November 2010, promoted by Ms Jacintha
Panickeer. The company, based in Mangaluru, Karnataka, trades in
diverse commodities such as coal, rice, and spices.
CHEMM FINANCE: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Chemm Finance
Limited (CFL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR250 mil. Non-convertible debentures (NCDs)* assigned with
IND BB/Stable rating; and
-- INR50 mil. Bank loans* assigned with IND BB/Stable rating.
*Yet to be issued
KEY RATING DRIVERS
Modest Scale of Operations to Continue over Near Term; High
Geographical Concentration: The company's loan book grew moderately
at a CAGR of 12% over FY17-FY21 (FY17: INR234 million; FY21: INR
362 million) even on a small asset under management (AUM) base.
Since gold loans are short-tenor loans with an average residual
tenor of four-to-six months, the disbursement momentum is critical
for the loan book growth. Moreover, the company does not plan any
major scale up in the AUM over the medium term and aims to maintain
loan growth at a 10%-15% CAGR over FY21-FY23. Moreover, CFL is
exposed to high geographical concentration risk with all its 23
branches located in Karnataka. The promoters do not intend to
expand the portfolio to other states over the near term. Ind-Ra
opines that a strengthened franchise and a sustainable scale up in
the AUM, while maintaining the asset quality, capitalization and
liquidity are key rating monitorables.
High Leverage; Promoters Committed to Infuse Capital to Keep
Leverage below 6x: At FYE21, the company's net worth was INR62.3
million, with a leverage ratio of 5.0x. The company had a total
capital adequacy ratio of 16.2% at FYE21. The promoters plan to
infuse adequate capital over the near term and maintain an adequate
cushion above the regulatory capital adequacy requirement (12%).
Improvement in Scale Critical for Stable Profitability: The
company's operating expense is on the higher side as it is yet to
attain economies of scale. The entire operation is manual and so,
90% of the total collections happens in cash mode. While the net
interest income/average assets of the company remained healthy at
9.5% in FY21 (FY20: 9.1%, FY19: 9.7%, FY18: 9.4%), the higher
operating cost/average assets of 7.9% (8.7%, 9.5%, 9.6%) led to low
and volatile return on assets of 1.5% (0.03%, 0.1%, negative 1.3%).
Ind-Ra opines that the scaling up of the operations remains
critical to achieve stability in the profitability over the medium
term and thus a key rating driver.
Concentrated Funding Profile: At end-March 2021, CFL's borrowings
were concentrated with 79.1% of the total funding constituted by
NCDs, which are subscribed by retail investors. Bank overdraft,
fixed deposits from related parties and inter-corporate deposits
contributed 15.1% , 4.2% and 1.5% respectively, to the overall
borrowings at end-March 2021. A diversification of the funding
profile is critical to reduce CFL's dependency on NCDs (both in
terms of exposure and number of banks) and thus is a key
near-to-medium term monitorable.
Established Presence in the Business of Gold & Bullion : CFL is
promoted by George Chemmanur (Chairman) who is also the founder of
the Chemmanur Group of companies. Chemmanur Group has a vintage of
more than 50 years in the business of traditional gold jewelry
under the name of Chemmanur Jewelers. The group is extending loans
against gold for more than 28 years through CFL. CFL's operations
are driven by Anoop Chemmanur (advisor, largest shareholder and son
of George Chemmanur). He is supported by the chief executive
officer Shyaman P, who has an extensive experience as an
ex-banker.
Liquidity Indicator - Adequate: On 31 March 2021, the company had
asset liability management mismatches in the one-to-three-month
buckets on a cumulative basis with individual mismatches in the
0-60 days buckets. However, the company had a cumulative surplus of
15.6% of the total outflows. Given the shorter tenor of gold loans
and CFL having an average collection of INR60 million on a monthly
basis, its disbursement requirements are covered by the collections
itself, on an ongoing basis. According to the company, it had a
cash and bank balance of INR6.8 million at end-September 2021. The
company has a debt repayment obligation of INR17.4 million over
2HFY22. Against this, it has an overdraft limit of INR50 million,
which was unutilized at end-September 2021. Thus, the liquidity
position is adequate even without considering any inflows from
collections.
Stable Asset Quality: CFL extends gold loans with a tenor up to
12-month with bullet principal repayments, while interest accrues
on a monthly basis. The average loan-to-value ratio of the overall
book is 70% with a maximum cap of 75%. CFL's gross non-performing
assets stood at 0.15% at FYE21 (FYE20 and FYE19: nil). The total
overdue (i.e. principal and accrued interest) in terms of 0+ days
past due stood at 3.5% of the overall AUM at end-March 2021. The
company provides a notice to customers who complete 12 months in
overdue and an auction is conducted at the end of the 15th month to
recover the dues.
RATING SENSITIVITIES
Positive: A significant scale-up in the AUM while maintaining the
asset quality metrics; modest leverage; healthy profitability and
diversification in funding will be positive for the ratings.
Geographic diversification while maintaining the asset quality on a
sustainable basis could also lead to a positive rating action.
Negative: A significant dilution in the tangible networth, the
leverage exceeding 6x over the near-to-medium term, deterioration
in the asset quality and profitability could lead to a negative
rating action. Any challenges faced by the entity in terms of
regulatory compliance or in case of material fraud could also
entail a negative rating action.
COMPANY PROFILE
CFL was incorporated in 1993 and got registered with the Reserve
Bank of India as a deposit-taking non-banking finance company on 27
February 1998. It is mainly engaged in providing loans against gold
assets collateral, also in the form of household jewelry. The
company's corporate office is in Bangalore and it belongs to the
Chemm Group. As on 31 March 2021, the major shareholders of the
company were Anoop Chemmanur, with a 44.9% holding, Megha Anoop
with 29.1% and George Chemmanur with around 21.9%.
EDAYAR ZINC: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Edayar Zinc
Limited (EZL) 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
Short Term Bank 247.00 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 November 11, 2020, placed
the rating(s) of EZL under the 'issuer non-cooperating' category as
EZL 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. EZL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 27, 2021, October 7, 2021, October 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.
Edayar Zinc Limited (EZL), a subsidiary of Binani Industries
Limited (BIL), has been in operations since 1967. The company is
engaged in the manufacture of zinc with an installed capacity of
38,000 Tonne Per Annum (TPA) at its plant located at Binanipuram in
Kerala. The company also produces sulphuric acid and cadmium which
are generated as by-products.
ESWARI EXPORTS: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Eswari
Exports Private Limited (EEP) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.7 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 10.3 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with EEP for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of EEP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EEP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EEP continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
EEP, set up in 2005 by Mr. K Ravi Kumar and his family members,
exports porcelain tiles. It is based in Hyderabad.
GEM CORPOCHEM: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Gem Corpochem
Private Limited (GCPL) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GCPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GCPL continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
GCPL, set up in 2013, trades in almonds and chemicals. While
almonds account for 60% of total revenue, the chemical segment
constitutes the balance. The Mumbai-based company has been promoted
by Mr. Bharat Shah.
GVG KRAFT: Ind-Ra Hikes LT Issuer Rating to 'BB+', Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded GVG Kraft Private
Limited's (GKPL) Long-Term Issuer Rating to 'IND BB+' from 'IND
BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR9 mil. (reduced from INR9.43 mil.) Term loan due on June
2024 upgraded with IND BB+/Stable rating; and
-- INR60 mil. Fund-based facilities Long-term rating upgraded;
short-term rating affirmed with IND BB+/Stable/IND A4+
rating.
The upgrade reflects an increase in GKPL's revenue and an
improvement in its EBITDA margins and credit metrics along with
continued positive cashflow from operations during FY21.
KEY RATING DRIVERS
GKPL's revenue increased 20% yoy to INR443.6 million in FY21,
mainly due to a rise in its sales realization to 26,396 per ton
(FY20: 22,918 per ton). This was because the company was able to
pass on the increase in raw materials prices to the end-consumers
along with increased demand. However, the scale of operations
remains small. The company achieved a revenue of INR270 million and
sales realization of 34,843 per ton (up 32% yoy) during 1HFY22. In
FY22, the management expects the revenue to increase to INR510
million, owing to a further increase in demand, coupled with a
further rise in the sales realization. FY21 financials are
provisional in nature.
The ratings reflect GKPL's healthy EBITDA margins as they increased
to 7.10% in FY21 (FY20: 4.91%) on the improved revenue. The return
on capital was 17.1% in FY21 (FY20: 7.4%). However, in FY22, the
management expects the EBITDA margin to decrease yoy due to
increased raw material prices, despite higher revenue.
GKPL's credit metrics improved yoy in FY21 as indicated by the
interest coverage (operating EBITDA/gross interest expense) of 7.5x
(FY20: 3.01x) and net leverage (adjusted net debt/operating EBITDA)
of 2.11x ( 4.91x). The improvement in the credit metrics was mainly
due an increase in the absolute EBITDA to INR31.5 million in FY21
(FY20: INR18.07 million) and a decline in the debt to INR67.1
million (INR89 million). However, in FY22, Ind-Ra expects the
credit metrics to deteriorate yoy, due to reduced EBITDA, increased
interest expenses and a marginal increase in the total debt.
Liquidity Indicator – Stretched: GKPL's cash and cash equivalents
remained low at INR0.58 million in FY21 (FY20: INR0.45 million).
The working capital days were stagnant at 95 in FY21 (FY20: 96).
However, the company's cash flow from operations increased to
INR25.76 million in FY21 (FY20: INR4.4 million), due to the
increase in the operating EBITDA. Furthermore, the free cash flow
stood at INR17.48 million in FY21 (FY20: INR4.32 million). The
company has a repayment obligation of INR3.5 million in FY22 and
FY23 each. GKPL's peak average utilization of the fund-based
facilities was 74.2% during the 12 months ended September 2021.
Furthermore, GKPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. GKPL availed the Reserve Bank of India-prescribed
moratorium from March-May 2020.
The ratings remain supported by the promoters' three-decade-long
experience in the paper industry.
RATING SENSITIVITIES
Positive: Significant growth in the revenue and operating
profitability while improving/maintaining the credit metrics, along
with an improvement in the liquidity will lead to a positive rating
action.
Negative: Any decline in the revenue or operating profitability or
any debt-led capex leading to deterioration in the credit metrics
with the net leverage exceeding 4x, along with a further stretch in
the liquidity position will lead to a negative rating action.
COMPANY PROFILE
Incorporated in 2015, GKPL is engaged in the manufacturing of
packing kraft with a total manufacturing capacity of 1,800 tons per
month. The packing kraft can be used to manufacture kraft boxes,
paper bags and thick bags. Historically, the company has been
utilizing around 75% of its total capacity. The company has its
registered office at Udumalpet and a manufacturing unit 15km away
from Udumalpet.
JCO GAS: CRISIL Keeps B Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of JCO Gas Pipe
Limited continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 15 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with JCO for
obtaining information through letters and emails dated August 31,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JCO, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JCO
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JCO continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2006, JCO is a New Delhi-based company promoted by
D.P Jindal Group and Chokhani Group. The company manufactures
Seamless and ERW pipes with its plant located near Nagpur.
KISANMITRA COLD: CARE Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kisanmitra
Cold Storage Private Limited (KCSPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.80 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 October 29, 2020, placed the
rating(s) of KCSPL under the 'issuer non-cooperating' category as
KCSPL 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. KCSPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 14, 2021, September 24, 2021, October 4, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Incorporated in 2013, KCSPL is engaged in the business of trading
of agro commodities and providing cold storage facility to farmers.
The company has one central unit consisting of multi-chambered and
multi-commodity cold storage having a storage capacity of 12000
metric tons (MT).
KOMMINENI INFOTECH: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kommineni
Infotech Private Limited (KIPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
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 its press release dated October 29, 2020, placed the
rating(s) of KIPL under the 'issuer non-cooperating' category as
KIPL 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. KIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 14, 2021, September 24, 2021, and October 4, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kommineni Infotech Private Limited (KIPL) was incorporated in the
year 1998 as a Private Limited company. Presently, the directors
of the company are Mr. Praveen Kumar (Managing Director), Mrs Uma
(Director), Mrs Y. Saila Rani(Director) and Mr. Ajay Kumar
(Director). KIPL has its registered office located at Hyderabad and
is engaged in supply, installation and maintenance of computers,
laptops, printers, networking products and related computer
peripherals. The company receives the orders from State and Central
government through participating in tenders (online and offline
bidding) for supply, repairs and annual maintenance services (AMC)
services. The company supplies its products and renders services to
government departments like Andhra Pradesh State Road Transport
Corporation (APSRTC), Telangana State Power. However as per MCA
website Mr. K Srinivas (Director) and Mr. K Raghu Ramu (Additional
Director).
KRISHNASHRAY (INDIA): CARE Lowers Rating on INR10.09cr Loan to C
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Shri
Krishnashray (India) Private Limited (SKPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.09 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 18, 2020, placed
the rating(s) of SKPL under the 'issuer non-cooperating' category
as SKPL 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. SKPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 4, 2021, October 14, 2021, October 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.
Incorporated in 2001 by Mr. Jagat Killawala with his wife Mrs Charu
Killawala, SKIPL (erstwhile Shri Krishnashray, proprietorship
entity established in 1996, later converted into a private limited
company in 2001) is engaged in the manufacturing of modular
switches, step lights and LED lights at its manufacturing facility
located at Bhimpore, Nani Daman, possessing a capacity to
manufacture approx. one crore switches per annum. The modular
switches and LED lights find a wide range of applications in the
residential & commercial real estate sector, whereas the step
lights find application in the theaters and auditoriums. Further,
the company procures its raw materials viz. electronic components,
solid brass components, hardware, polymer & plastic granules, etc.,
from the local players mainly based out of Mumbai.
LAKHOTIA TRANSPORT: Ind-Ra Gives BB Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Lakhotia Transport
Co. Pvt Ltd a Long-Term Issuer Rating of 'IND BB'. The Outlook is
Stable.
The instrument-wise rating actions are:
-- INR460 mil. Fund-based limit assigned with IND BB/Stable
rating.
KEY RATING DRIVERS
The rating reflects the company's modest scale of operations as
reflected from its revenue of INR1,824 million in FY21 (FY20:
INR2,058 million). The revenue declined in FY21 due to COVID-19 led
nation-wide lockdown. However, with the easing of lockdown across
the country and the resultant increase in orders, the management
expects FY22 revenue to be similar to that of FY21. During 1HFY22,
the company has achieved a revenue of INR774 million. FY21 numbers
are provisional.
The rating also factors in the company's moderate credit metrics
with interest coverage (operating EBITDA/gross interest expense) of
1.48x in FY21 (FY20: 1.59x) and high net financial leverage (total
adjusted net debt/operating EBITDA) of 5.67x (5.05x). The credit
metrics deteriorated in FY21 due to a decline in the absolute
EBITDA (FY21: INR78.76 million; FY20: INR97.79 million).
The rating is also constrained by the company's modest margin of
4.3% in FY21 (FY20: 4.8%) and return on capital employed of 9%. The
margin contracted slightly in FY21 due to an increase in its hire
charges. The company's margin remain low due to intense competition
in the transportation business.
Liquidity Indicator- Poor: The liquidity profile of the company is
poor with maximum average fund-based limit utilization of 95% over
the last 12 months ended September 2021, along with regular
instances of over utilization which has been regularized within
one-to-six days. The company has been sanctioned temporary over
drafts and has also availed of RBI prescribed emergency line of
credit. The company does not have any capital market access. The
cash flow from operations turned positive during FY21 to INR36.25
(FY20: negative INR103.1 million) due to lower unfavorable changes
in the working capital cycle. The company's working capital cycle
has increased to 109 days in FY21 (FY20: 92 days) due to an
increase in the debtor days. The cash and cash equivalent stood at
INR22 million at FYE21.
The rating, however, derives support from the company's promoters'
vast experience in logistics solutions business and
long-established relation with reputed customers. It also has
reputed clientele, namely Hindustan Unilever Limited and Jindal
Steels Limited.
RATING SENSITIVITIES
Positive: An improvement in the scale of operations and liquidity
and the interest coverage exceeding 2x on a sustained basis can
lead to a positive rating action.
Negative: Further deterioration in liquidity or a decline in the
scale of operations can lead to a negative rating action.
COMPANY PROFILE
LTCPL was incorporated in 1962 and was converted into a private
limited company in 2001. The company provides logistics solutions
through road for various entities. LTCPL has 30 branches across the
country.
MAA JOYTARA: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Maa Joytara
Rice Mill Private Limited (MJRMPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.83 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.17 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 December 1, 2020, placed the
rating(s) of MJRMPL under the 'issuer non-cooperating' category as
MJRMPL 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. MJRMPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 17, 2021, October 27, 2021, November 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).
MJRMPL was initially set up as a proprietorship firm in 1993 by the
Ghosh family of West Bengal. However, it was reconstituted as a
private limited company in October 2004. Since its inception, the
company has been engaged in rice milling business and its plant is
located in Malda, West Bengal with aggregate installed capacity of
46, 800 metric ton per annum. The company has also set up a rice
bran oil extraction unit with aggregate installed capacity of
45,000 metric ton per annum and the same became operational from
July 2014. The company procures its raw material (paddy) from local
market and sells its finished products within Eastern India. Rice
bran, a by-product obtained during rice milling process, is used
for oil extraction.
NIKKI STEELS: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nikki
Steels Private Limited (NSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.00 CARE B-; 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 October 27, 2020, placed the
rating(s) of NSPL under the 'issuer non-cooperating' category as
NSPL 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. NSPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 12, 2021, September 22, 2021 and October 2, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Nikki Steels Private Limited (NSPL), based in Ghaziabad, Uttar
Pradesh was incorporated in June, 2006 by Mr. Neeraj Gupta and Mr.
Sharad Gupta. NSPL is primarily engaged in trading of iron and
steel products such as coil, bars, wire rods and plates and
procures the traded product directly from suppliers such as Steel
Authority of India Limited (SAIL), National Steel Supplier, K. S
Steels etc. The company caters to various construction and private
infrastructure companies such as JCL Infra Limited, J Kumar Infra
projects Limited, Dadu Pipes Pvt Ltd etc.
P. N. GAWANDE: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of P. N.
Gawande Ginning Pressing And Oil Mill Private Limited (PNGGPOMPL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 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 October 28, 2020, placed the
rating(s) of PNGGPOMPL under the 'issuer non-cooperating' category
as PNGGPOMPL 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. PNGGPOMPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 13, 2021, September 23, 2021, October 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.
PNGGPOMPL was incorporated in the year 2016 and is engaged in the
business of cotton ginning and pressing. In FY17, the Company was
in the process of setting up its oil extraction unit at Bazargaon,
Nagpur.
PAITHAN MEGA: CARE Lowers Rating on INR34.76cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Paithan Mega Food Park Private Limited (PMFPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 34.76 CARE D Revised from
Facilities CARE BBB (CE)@; Stable
@ Based on the credit enhancement in the form of an unconditional
and irrevocable corporate guarantee provided by Nath Bio Genes
India Limited for the bank facilities of Paithan Mega Food Park
Private Limited.
Unsupported Rating Withdrawn
Detailed Rationale & Key Rating Drivers
The revision in the rating to the long-term bank facilities of
PMFPPL is pursuant to the CARE Ratings' updated default recognition
policy dated September 1, 2021 and continuous delays in debt
servicing.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Improvement in liquidity profile of the company leading to timely
repayment of debt obligations.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt servicing: There are ongoing delays in
debt servicing due to the stressed liquidity position of the
company.
PMFPPL is an SPV formed in 2011 for setting up a mega food park
under the 11th five-year plan as approved by Ministry of Food
Processing of India (MOFPI). The company was formed as an SPV of
Nath Group. The current shareholding of PMFPPL is Nath Bio-Genes
(India) Limited (NBGIL- holding 19.98% stake as on March 31, 2020),
Agri Tech India Limited (ATIL - holding 49.20% as on March 31,
2020) and balance by Nature Tech Foods Private Limited (NTFPL-
holding 25.60% as on March 31, 2020) and others.
PEETHAMBRA GRANITES: CRISIL Lowers Rating on INR12.5cr Loan to B
----------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Peethambra Granites Private Limited (PGPL) to 'CRISIL B/Stable
Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 12.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Term Loan 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with PGPL for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PGPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB+/Stable Issuer Not Cooperating'.
PGPL, incorporated in 1988, is an Uttar Pradesh-based company that
extracts and sells red granite; it also operates eight windmills in
Gujarat, Tamil Nadu, and Maharashtra, Rajasthan and Madhya Pradesh
and two solar plants in Madhya Pradesh. Mr. Atul Sharma and his
wife, Ms Neha Sharma, are the promoters.
PLATINUM TEXTILES: CARE Lowers Rating on INR415.53cr Loan to B+
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Platinum Textiles Limited (PTL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 415.53 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 November 27, 2020, placed
the rating(s) of PTL under the 'issuer non-cooperating' category as
PTL 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. PTL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 13, 2021, October 23, 2021, November 2, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings have been revised on account of non-availability of
requisite information. The ratings also consider a decline in scale
of operations and net loss reported in FY20 as compared to FY19.
Platinum Textiles Limited is a flagship company of Shri Vallabh
Pittie group. The company was incorporated in September 1993 under
the name of Neha Furnishings Pvt Ltd. Subsequently, it was renamed
as PTL with effect from December 31, 2009. PTL is engaged in the
business of manufacturing of cotton, polyester and polyester &
cotton blended yarn with installed capacity of around 101,000
spindles. Besides, it also uses another 112,000 spindles on
job-work/lease basis. PTL is presently managed by Mr. Chirag
Pittie.
RAJASTHAN HYBRIDS: CARE Withdraws B+ Rating on Bank Facilities
--------------------------------------------------------------
CARE has reviewed the rating assigned to the bank facilities of
Rajasthan Hybrids Private Limited (RHPL) at CARE B+; Stable; Issuer
not cooperating and has simultaneously withdrawn it, with immediate
effect. The rating factors in its modest scale of operation with
moderate profitability margins, moderate debt service coverage
indicators and stretched liquidity position during FY20 (Audited,
refers to period April 1 to March 31). The rating, however, derive
strength from the experienced promoters along with Operation &
Maintenance Agreement with reputed customers.
The rating withdrawal is at the request of RHPL 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
* Moderate scale of operations with moderate profitability: TOI of
RHPL has decreased and remained at INR20.79 crore during FY21 as
against 24.54 crore during FY20 (INR26.94 crore during FY19).
Further, during FY20, PBILDT margin continued to remain moderate at
8.94% as against 8.05% during FY19. PAT margin nominally increased
and stood at 0.61% during FY20 from 0.41% in FY19.
* Moderate debt coverage indicators: The debt coverage indicators
of RHPL remained moderate marked by Total Debt to Gross Cash
Accruals (TDGCA) of 6.79 years as of March 31, 2020 which improved
from 7.56 years as of March 31, 2019 owing to decrease in total
debt level. The interest coverage ratio improved marginally to 2.39
times in FY20 as against 1.97times during FY19 owing to increase in
operating profitability.
Key Rating Strengths
* Experienced management of the company: Mr. R C Ralhan, Managing
Director & Chief Executive Officer, is a B.Tech. in electronics &
communication engineering and has been associated with the industry
since last three decades. He looks after the overall affairs of the
company. Mr. N C Ralhan, director, has more than two decades of
experience in the telecom industry and looks after finance function
of the company. Further, the promoters of the company are assisted
by Mr. Prem Bhandula, Director in Training and Mr. Sunil Jain,
Chief Operating Officer. Both are associated with NRSPL since more
than a decade and hence, also possess rich experience in this
field.
* Operation & Maintenance Agreement with reputed customers: Owing
to long-standing presence in the telecom industry, the promoters
have established relationship with large and reputed companies such
as Nokia Siemens Network, NNPL, Ericsson, and Huawai
Telecommunication India Private Limited.
* Comfortable capital structure: The capital structure of RHPL
marked by overall gearing continued to remain comfortable at 0.99
times as on March 31, 2020 as against 0.93 times as on March 31,
2019.
Kota (Rajasthan) based Rajasthan Hybrid Private Limited (RHPL) was
incorporated in 1992 as a private limited company by Mr. Ramesh
Chander Ralhan (RC Ralhan) and Mr. Naresh Chander Ralhan (NC
Ralhan) to provide services in the telecom industry. Currently,
RHPL provides Operation and Maintenance (O&M) services to telecom
services providers and also manages service resource base which
will further convert on task base. The company also provides
services to Government of Rajasthan, Department of Science &
Technology for site maintenance of village panchyat samiti level of
state remote sensing application center.
RHPL has O&M subcontract agreement with Nokia Network Private
Limited (NNPL) for sites of BSNL of Gujarat circle which is
renewable on yearly basis.
RCI INDUSTRIES: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained RCI Industries &
Technologies Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are as follows:
-- Proposed long-term loan maintained in non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating;
-- INR1.010 bil. Fund-based limits (long-term) maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR250 mil. Proposed fund-based limits (long-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR1.090 bil. Non-fund based limits (short-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
October 28, 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 1992, RCI Industries & Technologies is listed on
the Bombay Stock Exchange. The company manufactures copper wires
(24,000 million ton (mt) capacity), copper/brass strips (15,000mt
capacity) and TIN solder strips/bars (1,200mt capacity). Its items
include annealed copper wire, bunched copper wires ropes and copper
ingots.
RKB GLOBAL: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RKB Global Limited
(RKBGL) a Long-Term Issuer Rating of 'IND B+' and placed it on
Rating Watch Negative (RWN).
The instrument-wise rating actions are:
-- INR575 mil. Fund-based limit assigned and placed on RWN with
IND B+/RWN/IND A4/RWN; and
-- INR1.150 bil. Non-fund-based limit assigned and placed on RWN
with IND A4/RWN.
Analytical approach: Ind-Ra has taken a consolidated view of RKBGL
and its 100% subsidiary RKB Steel Pvt Ltd due to the strong legal
and operational linkages between them.
The RWN follows RKBGL's application to its lender for an extension
on the payment of the packing credit loans in foreign currency
(PCFCs) that are overdue.
KEY RATING DRIVERS
The ratings reflect RKBGL's modest EBITDA margins of 2.3% in FY21
(FY20: 1.7%) with a return on capital employed of 6.0% (3.8%). The
margins improved yoy in FY21 on account of a reduction in the cost
of goods sold and an increase in the high-margin export sale.
Ind-Ra expects the margins to improve further yoy in FY22, on
account of an increase in export as well as in manufacturing
activities. FY21 numbers are provisional.
The ratings also reflect RKBGL's weak credit metrics with interest
coverage (operating EBITDA/gross interest expense) of 1.7x in FY21
(FY20: 2.7x) and net leverage (adjusted net debt/operating EBITDAR)
of 21.51x (34.27x). In FY21, the interest coverage deteriorated yoy
due to the increased interest cost and the net leverage improved
due to an increase in the absolute EBITDA. In FY21, the unsecured
loans from directors and relatives (interest-free and
unsubordinated) were INR30.26 million (FY20: INR219.8 million),
which, as per the management, might be stable in FY22. Ind-Ra
expects the credit metrics to remain weak in FY22, on account of an
addition of new term loans for the purchase of machineries for
existing and new units.
Liquidity Indicator - Poor: RKBGL's fund-based limits and
non-fund-based limits were almost fully utilized over the 12 months
ended September 2021. The cash and cash equivalent remained low at
INR1.5 million in FY21 (FY20: INR1.3 million). The cash flow from
operations reduced to INR160.6 million in FY21 (FY20: INR230.1
million), on account of the unfavorable changes in the working
capital. In FY21, the net cash conversion cycle deteriorated to 27
days (FY20: 11 days) on account of a reduction in the creditor days
to 119 (181).
The ratings factor in RKBGL's medium scale of operations with a
revenue of INR3,848.6 million in FY21 (FY20: INR3,376.0 million).
In FY21, the revenue increased mainly on account of a rise in the
export sale to INR380 million (INR170 million). The revenue rise
was supported by the start of operations at the company's new
manufacturing unit at Wada (Palghar - Maharashtra) and an increase
in the demand for goods. The net revenue achieved in 1HFY22 was
INR2,330 million. In FY22, Ind-Ra expects the revenue to increase
yoy on account of the revenue achieved in 1HFY22 and increased
demand for end products.
The ratings are supported by RKBGL's promoter Virat Sevantilal
Shah's experience of over four decades in the steel industry.
RATING SENSITIVITIES
The RWN indicates that ratings may be downgraded or affirmed.
Ind-Ra will resolve the RWN after getting more clarity on the
bank's approval for the PCFCs overdue.
COMPANY PROFILE
RKBGL was established as a partnership firm named M/s Rajankumar
and Bros. (Impex) in 1973. The partnership firm was converted into
a private limited company named RKB Global Private Limited in
December 2013 and was then converted to RKBGL (unlisted) in August
2018. It is into trading, manufacturing and also undertakes mining
activities at Kalne Mines. It is involved in the trading of bare
galvalume coils, hot rolled coils, among others and the
manufacturing of roofing sheets, galvanized & corrugated sheets
and electric resistance welded pipes. Its head office is located at
Mumbai (Maharashtra).
ROYAL CONSTRUCTION: CRISIL Lowers Rating on INR8.5cr Loan to B
--------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Royal
Construction - Jamnagar (RC) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with RC for
obtaining information through letters and emails dated August 19,
2021 and October 6, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of RC
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB/Stable Issuer Not Cooperating'.
Formed in 1995 by Mr. Manikandan Kunhunni Nair, RC is into
construction and infrastructure related activities (mainly road
works, earthen embankment and other allied construction
activities).
RUKSON PACKAGING: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rukson
Packaging Private Limited (RPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.10 CARE B; 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 November 30, 2020, placed
the rating(s) of RPPL under the 'issuer non-cooperating' category
as RPPL 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. RPPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 16, 2021, October 26, 2021, November 5, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Established in 1986 as a private limited company in the name of
Jaykesh Salf-Lock Packaging Pvt. Ltd., was taken over by Mr. Kishin
Panjabi and renamed as Rukson Packaging Pvt. Ltd. (RPPL) on April
22, 2008. RPPL was promoted by Mr. Kishin Panjabi, Mr. Gobind
Panjabi, Ms. Poonam Panjabi & Ms. Anita Panjabi. RPPL is engaged in
manufacturing of Cartons & Offset printing on Cathcover, Labels,
Leaflets, Posters etc. and its plant is located at MIDC Rabale in
Navi Mumbai with an installed capacity to print around 3 crore
impressions per annum.
SAI DURGA: CARE Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Sai
Durga Infratech India Private Limited (SSDIIPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 23.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities 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 its press release dated October 28, 2020, placed the
rating(s) of SSDIIPL under the 'issuer non-cooperating' category as
SSDIIPL 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. SSDIIPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 13, 2021, September 23, 2021, and October 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).
Sri Sai Durga Infratech India Private Limited (SSDIIPL) was
incorporated in September 2010 to take over the business of Sri Sai
Durga Constructions, a partnership firm started in 2008 by Mr.
Chandra Rangarao and Mrs. Chandra Satvika. The company is engaged
in the civil construction segment with work orders spanning across
construction of building works, water supply works, electrical
works and irrigation works etc.
SAKA EMBROIDERY: CARE Lowers Rating on INR10.58cr Loan to B-
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Saka
Embroidery Private Limited (SEPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.58 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 October 30, 2020, placed the
rating(s) of SEPL under the 'issuer non-cooperating' category as
SEPL 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. SEPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 15, 2021, September 25, 2021, October 5, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of SEPL have been
revised on account of non-availability of requisite information.
The ratings also consider significant decline in scale of
operations as well as an increase in overall debt in FY20 over
FY19.
Established in 1999 by Mr. Satish Rathod and his family members,
SEPL is a distributor and retailer of sarees and dress materials.
SEPL operates through an owned warehouse at Narayan Peth in Pune
having area 2000 sq ft.
SANATAN MERCHANTS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sanatan Merchants
Private Limited's (SMPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable.
The instrument-wise rating action is:
-- INR149.5 mil. Fund-based facilities affirmed with IND BB/
Stable/IND A4+ rating.
KEY RATING DRIVERS
The affirmation reflects SMPL's continued small scale operations,
as indicated by its revenue of INR905.14 million in FY21 (FY20:
INR780.58 million) .The revenue increased on a sustainable basis in
FY21 because of higher demand, resulting from the company's
expanding presence in its existing markets in the states of Assam,
Tripura, Manipur and Bihar. In 1HFY22, the company booked a revenue
of INR365 million. The management expects the revenue to grow
further in FY22, backed by a continued increase in demand.
The ratings reflect SMPL's modest EBITDA margins due to the trading
nature of business. The margin fell to 3.77% in FY21 (FY20: 4.41%)
due to an increase in other operating expenses. The RoCE was 10.4%
in FY21 (FY20: 11%). Ind-Ra expects the margin to remain stable in
FY22
The ratings are constrained by the moderate credit metrics due to
high debt levels (FY21: INR 205.77 million; FY20: INR183.67
million). The gross interest coverage (operating EBITDA/gross
interest expense) improved marginally to 1.59x in FY21 (FY20: 1.4x)
owing to a fall in the interest costs, resulting from a decline in
the interest rates. The net leverage (total adjusted net
debt/operating EBITDAR) deteriorated to 5.91x in FY21 (FY20: 5.3x)
because of increased external borrowings towards the year-end. Ind
Ra expects the credit metrics to improve in the near term owing to
the absence of any debt-led capex plans.
Liquidity Indicator - Stretched: The average maximum utilization of
the fund-based facilities was 86.5% over the 12 months ended
September 2021 . The cash flow from operations deteriorated further
to a negative INR38.39 million in FY21 (FY20: negative
INR1.31million). The free cash flow deteriorated to a negative
INR38.98 million in FY21 (FY20: negative INR4.26million). The cash
and cash equivalent stood at INR4.13million at FYE21 (FYE20:
INR1.68 million). The company does not have any capital market
access and depends on one bank for funding.
The ratings continue to be supported by the promoter's experience
of over three decades in the trading hand tools and power tools
like marble, stone, granite, wood, etc cutting machine, pesticide
sprayer, rice processing machine, etc., personal care products and
agricultural equipment.
RATING SENSITIVITIES
Negative: The interest coverage ratio remaining below 1.6x and
further stress on the liquidity position will be negative for the
ratings.
Positive: Improvement in the credit metrics as well as the
liquidity profile, on a sustained basis, will be positive for the
ratings.
COMPANY PROFILE
Incorporated in 1994 and with its registered office in Kolkata,
SMPL deals in trading of hand tools and power tools such as marble,
stone cutting machines, granite cutting machines, wood cutting
machines, pesticide sprayers and rice processing machines, and
trades writing, stationary, personal care products and other
accessories. The company is managed by its three directors - Binod
Maroti, Nirav Maroti and Anil Gupta.
SANTLAL INDUSTRIES: CARE Keeps C Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Santlal
Industries Limited (SIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 60.00 CARE C; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 37.00 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 October 30, 2020, placed the
rating(s) of SIL under the 'issuer non-cooperating' category as SIL
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. SIL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 15, 2021, September 25, 2021 and October 5, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Santlal Industries Ltd (SIL), incorporated in the year 1999 by Mr.
Anand Swaroop Agarwal, Mr. Anil Agarwal and Mr. Sunil Agarwal, is
engaged in milling, processing and manufacture of Basmati rice at
Mainpuri, Uttar Pradesh. The company commenced its operations in
2000 and has an installed capacity of 96,000 Metric Tonnes Per
Annum (MTPAs) as on March 31, 2015. The company is a part of
Santlal Group, which started its business with fertilizers & cloth
trading in 1935 as Santlal Agarwal & Sons.
TRN ENERGY: Ind-Ra Affirms 'D' Term Loan Rating
-----------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed TRN Energy Private
Limited's (TRNEPL) debt instruments as follows:
-- INR28,156.90 bil. (INR26,457.9 bil. outstanding as of June 30,
2021) Term loan (Long-term) due on January 15, 2038 affirmed
with IND D rating;
-- INR2,412.5 bil. (USD38.21; reduced from USD53.58) External
commercial borrowing (ECB; long-term)^ affirmed with IND D
rating;
-- INR2,050.0 bil. Fund-based limits (Long-term) affirmed with
IND D rating;
-- INR2,250.0 bil. Non-fund based limits (Long-term) affirmed
with IND D rating; and
-- INR700 mil. Loan equivalent risk (Long-term) affirmed with
IND D rating.
^Conversion rate as per hedged rate of USD1 = INR63.13
KEY RATING DRIVERS
The affirmation reflects TRNEPL's continued delays in debt
servicing in FY22, owing to its poor liquidity position stemming
from high receivables from Uttar Pradesh distribution companies
(discoms) and the shutdown of its Unit-II since December 2020.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the ratings.
COMPANY PROFILE
TRNEPL, a special purpose vehicle, 74% owned by ACB (India) Power
Limited, a step-down subsidiary of ACB (India) Ltd (ACBIL; 'IND
BB'/RWN) was incorporated on 17 November 2006. It has developed a
600MW (2 x 300MW) coal-based thermal power plant in Raigarh
district, Chhattisgarh. The project achieved commercial operations
date on 1 May 2017 (Unit-I was commissioned in August 2016 and
Unit-II in May 2017). The company has signed a 20-year fuel supply
agreement with South Eastern Coalfields Limited for 2.6 million
tons per annum of coal. TRNEPL has signed 390MW with PTC India Ltd,
which in turn has signed back-to-back power purchase agreements
with the four Uttar Pradesh discoms. TRNEPL also has a perpetual
power purchase agreement to supply 5% of net generation to
Chhattisgarh State Power Trading Company at a variable tariff. The
balance power generated post deduction of auxiliary consumption is
sold on merchant basis.
ACBIL, a flagship company of the Aryan Group, was incorporated in
March 1997. ACBIL has six coal washeries, with an installed
capacity of 33.33 million tons per annum. In addition, ACBIL is
engaged in power generation.
UNITON INFRA: CARE Lowers Rating on INR15cr LT Loan to B-
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Uniton Infra Private Limited (UIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
To remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 28, 2020, placed the
rating(s) of UIPL under the 'issuer non-cooperating' category as
UIPL 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. UIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 13, 2021, September 23, 2021, and October 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).
The ratings assigned to the bank facilities of UIPL have been
revised on account of non-availability of requisite information.
The ratings also factored in decline in scale of operation,
Profitability, capital structure and debt Coverage indicators
during FY20 over FY19.
Uniton Infra Private Limited (UIPL) was incorporated in the year
2017 with its registered office at Banjara Hills, Hyderabad. The
promoters of the company are Mr. Mahesh Bigala (Managing Director)
and Mrs. Shalini Bigala (Director). They have experience of more
than two decades in Construction Industry. The company is primarily
engaged in construction of buildings, apartments and other
infrastructure works. The company procures its work orders through
online tenders from Greater Hyderabad Municipal Corporation (GHMC),
Telangana.
VICHITA ESTATE: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vichita
Estate and WareHousing Private Limited (VEWPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.90 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 November 11, 2020, placed
the rating(s) of VEWPL under the 'issuer non-cooperating' category
as VEWPL 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. VEWPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
September 27, 2021, October 7, 2021, October 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.
Established in February 1989, Vichita Estate and Warehousing
Private Limited (VEWPL) as a private limited company and was
engaged in providing warehousing facility of Chemicals till 2006.
In the year 2006 the aforesaid company was taken over by Mr.
Varinderkumar Sohanlal Arora & Mr. Ravikumar Sohanlal Arora and was
kept idle from 2006 till March 2017. In April 2017, the promoters
of the company planned to set up a cold storage plant at MIDC, TTC
Industrial Area, Village Bonsari & Kukshet, Juinagar, Navi Mumbai
with an installed capacity to store around 2500 MT of agricultural
produce such as Dates, Pulses & Potatoes.
=================
I N D O N E S I A
=================
LIPPO KARAWACI: S&P Withdraws 'B-' LongTerm Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' long-term issuer credit rating
on PT Lippo Karawaci Tbk. and the 'B-' long-term issue rating on
the Indonesia-based company's outstanding senior unsecured notes
due 2025 and 2026. The ratings were withdrawn at the issuer's
request. The outlook on the issuer credit rating was stable at the
time of the withdrawal.
=====================
N E W Z E A L A N D
=====================
CARMONT FASHIONS: Creditors' Proofs of Debt Due Dec. 15
-------------------------------------------------------
Creditors of Carmont Fashions Limited and Waglands Dogs’ Holiday
Retreat Limited, which is in liquidation, are required to file
their proofs of debt by Dec. 15, 2021, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Nov. 10, 2021.
The company's liquidators are:
Iain Bruce Shephard
Jessica Jane Kellow
BDO Wellington
Business Restructuring
Level 1, 50 Customhouse Quay
Wellington 6011
New Zealand
INFINITY LIFESTYLE: Creditors' Proofs of Debt Due on Dec. 21
------------------------------------------------------------
Creditors of Infinity Lifestyle Group NZ, which is in liquidation,
are required to file their proofs of debt by Dec. 21, 2021, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 2, 2021.
The company's liquidators are:
Abuthahir Abdul Gafoor
Yessica Budiman
Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road (PO Box 15543)
Tauranga 3144
New Zealand
KERERU 9: Creditors' Proofs of Debt Due on Dec. 16
--------------------------------------------------
Creditors of Kereru 9 Limited, which is in voluntary liquidation,
are required to file their proofs of debt by Dec. 16, 2021, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 15, 2021.
The company's liquidators are:
Gareth Russel Hoole
Clive Robert Bish
Ecovis KGA Limited
PO Box 37223
Parnell, Auckland 1151
New Zealand
=================
S I N G A P O R E
=================
EHT US1 INC: Mediation Nixed for Howard Wu Appeals
--------------------------------------------------
Debtors EHT US1, Inc., et al. and Bank of America, N.A., in its
capacity as Administrative Agent under a Credit Agreement dated as
of May 19, 2019, request all three appellate cases be withdrawn
from mandatory mediation:
(A) HOWARD WU, et al., Appellants, v. EHT US1, Inc., et al.,
Appellees, C.A. No. 21-1413-MN (D. Del.).
With respect to 21-1413 MN, on September 14, 2021, Howard Wu filed
a letter with the Bankruptcy Court [docket at 1163], requesting an
extension of time to respond to the Debtors' Third Omnibus
Objection (Substantive) to Proofs of Claims filed by Master Lessees
Pursuant to Bankruptcy Code Section 502 and Bankruptcy Rule 3007.
On the same date, Luc A. Despins, on behalf of the Debtors, filed a
response. On September 17, 2021, the Bankruptcy Court entered an
Order Denying Extension of Time Requested. Howard Wu, et al.,
noticed an appeal of the Denial Order on October 1, 2021.
(B) HOWARD WU, et al., Appellants, v. EHT US1, Inc., et al.,
Appellees, C.A. No. 21-1414-MN (D. Del.).
As to 21-1414 MN, on August 21, 2021, EHT US1, Inc. and its
affiliated debtors filed Debtors' Third Omnibus Objection
(Substantive) to Proofs of Claims filed by Master Lessees Pursuant
to Bankruptcy Code Section 502 and Bankruptcy Rule 3007. On
September 18, 2021, the Bankruptcy Court entered an Order Granting
Debtors' Third Omnibus Objection (Substantive) to Proofs of Claims
filed by Master Lessees pursuant to Bankruptcy Code Section 502 and
Bankruptcy Rule 3007 (the Third Omnibus Order). Howard Wu et al.
noticed an appeal of the Third Omnibus Order on October 1, 2021.
(C) HOWARD WU, et al., Appellants, v. EHT US1, Inc., et
al. and BANK OF AMERICA, N.A., Appellees, C.A. No.
21-1415-MN (D. Del.).
Regarding 21-1415 MN, on August 31, 2021, Bank of America, N.A.
filed its Omnibus Objection (Substantive) to Master Lessee Claims
and Joinder to Debtors' Third Omnibus Objection (Substantive) to
Proofs of Claims filed by Master Lessees Pursuant to Bankruptcy
Code Section 502 and Bankruptcy Rule 3007, referred to as the "BoA
Order". Howard Wu, et al. noticed an appeal of the BoA Order on
October 4, 2021.
The parties advised that there is a fourth pending appeal in these
matters, specifically 21-1467 MN, which Appellants will seek to
consolidate with the three Appeals. Although Appellees agree to the
consolidation of the three Appeals, that is, 21-1413, 21-1414 and
21-1415, all assigned to Judge Noreika, they do not agree to the
consolidation of the fourth appeal, because the Debtors filed a
motion to dismiss this fourth appeal based on untimely filing. On
October 29, 2021, the Bankruptcy Court denied Appellants' motion to
extend the deadline to file a late appeal. That motion to dismiss
is pending decision in the District Court.
Counsel for the Debtors, the Prepetition Agent and Appellants
conferred regarding mediation in the three present appeals.
Appellees believe that mandatory mediation would not be productive
nor lead to resolution because the nature of the issues involved do
not lend themselves to mediation or settlement. They, therefore,
request, that the District Court excuse these appeals from
mediation. Appellants' preference is to proceed with mediation in
the District Court for a possible global resolution of the issues
between the parties.
The parties agree that consolidation is appropriate for both
procedural purposes and to submit consolidated briefs on appeal.
Accordingly, the Chief Magistrate Judge of the United States
District Court for the District of Delaware recommended that,
pursuant to paragraph 2(a) Procedures to Govern Mediation of
Appeals from the United States Bankruptcy Court for this District
and 28 U.S.C. Section 636(b), these matters be withdrawn from the
mandatory referral for mediation and proceed through the appellate
process of this Court.
A full-text copy of the Recommendation dated November 3, 2021, is
available at https://tinyurl.com/wu3sb37m from Leagle.com.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust and Eagle Hospitality Business Trust. Based in Singapore,
Eagle H-REIT is established with the principal investment strategy
of investing on a long-term basis in a diversified portfolio of
income-producing real estate, which is used primarily for
hospitality or hospitality-related purposes as well as real
estate-related assets in connection with the foregoing, with an
initial focus on the United States.
EHT US1, Inc. and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1 estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP and Cole Schotz P.C. as their
bankruptcy counsel, FTI Consulting Inc. as restructuring advisor,
and Moelis & Company LLC as an investment banker. Rajah & Tann
Singapore LLP and Walkers serve as Singapore Law counsel and Cayman
Law counsel, respectively. Donlin, Recano & Company, Inc. is the
claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on Feb. 4, 2021. The committee tapped Kramer
Levin Naftalis & Frankel, LLP as bankruptcy counsel, Morris James
LLP as Delaware counsel, and Province, LLC as financial advisor.
LVM Law Chambers LLC serves as the Debtor's Singapore law conflicts
counsel.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' Chapter 11 cases. Thomas D. Bielli, Esq., at Bielli &
Klauder, LLC, is the fee examiner's legal counsel.
HUA SHENG: Creditors' Meeting Scheduled for Dec. 1
--------------------------------------------------
Creditors of Hua Sheng Shipping (Pte) Ltd will hold a meeting on
Dec. 1, 2021, at 10:00 a.m.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to appoint liquidators;
c. to consider the judicial managers' remuneration and expenses
as an expense of the winding-up; and
c. to be authorised to appoint solicitors to (i) assist the
liquidators in the liquidators' duties; and/or (ii) to bring
or defend any action or legal proceeding in the name and on
behalf of the Company.
Paresh Tribhovan Jotangia and Ho May Kee of Grant Thornton
Singapore on Nov. 3, 2021, were appointed as provisional
liquidators of Hua Sheng Shipping.
The provisional liquidators can be reached at:
Paresh Tribhovan Jotangia
Ho May Kee
Grant Thornton Singapore
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
NAN ZHOU: Creditors' Meeting Scheduled for Dec. 1
-------------------------------------------------
Creditors of Nan Zhou Maritime (Pte) Ltd will hold a meeting on
Dec. 1, 2021, at 10:45 a.m.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to appoint liquidators;
c. to consider the judicial managers' remuneration and expenses
as an expense of the winding-up; and
c. to be authorised to appoint solicitors to (i) assist the
liquidators in the liquidators' duties; and/or (ii) to bring
or defend any action or legal proceeding in the name and on
behalf of the Company.
Paresh Tribhovan Jotangia and Ho May Kee of Grant Thornton
Singapore on Nov. 3, 2021, were appointed as provisional
liquidators of Nan Zhou Maritime.
The provisional liquidators can be reached at:
Paresh Tribhovan Jotangia
Ho May Kee
Grant Thornton Singapore
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
NEREUS THERAPEUTICS: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Nereus Therapeutics Pte Ltd, on Nov. 15, 2021, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is Ms. Valerie Lim Lee Huang.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***