/raid1/www/Hosts/bankrupt/TCRAP_Public/211210.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, December 10, 2021, Vol. 24, No. 241
Headlines
A U S T R A L I A
BLACK MAGIC: Second Creditors' Meeting Set for Dec. 16
CECIL DEVELOPMENTS: Second Creditors' Meeting Set for Dec. 17
INFRABUILD AUSTRALIA: Moody's Cuts CFR & Sr. Secured Notes to Caa1
MOTTLEY CREW: Second Creditors' Meeting Set for Dec. 16
ORIGINAL SAFE: Second Creditors' Meeting Set for Dec. 15
RESIMAC TRIOMPHE 2021-3: S&P Assigns B Rating on Class F Notes
C A M B O D I A
ADVANCED BANK OF ASIA: S&P Affirms 'B+' LT ICR, Outlook Stable
C H I N A
HNA GROUP: Cedes Control of Core Airline Operations
IQIYI INC: Cuts 20% of Workforce as Losses Balloon
KAISA GROUP: Moves Closer to Discussing Financing With Bondholders
KAISA GROUP: Suspends Trading Amid Uncertainty Over Debt Repayment
I N D I A
ALFARA'A INFRAPROJECTS: CRISIL Keeps D Rating in Not Cooperating
ALIENS DEVELOPERS: CRISIL Moves D Debt Rating to Not Cooperating
BMR GOLD: CRISIL Moves B+ Debt Ratings from Not Cooperating
DURGASHREE CASHEWS: CRISIL Cuts Rating on INR5cr Cash Loan to D
GITAI FARMER: CRISIL Assigns B- Rating to INR4.35cr Term Loan
GKR INFRACON: CRISIL Withdraws D Rating on INR30cr Bank Loan
GOPALA POLYPLAST: CRISIL Keeps D Debt Ratings in Not Cooperating
HANUMANT CONSTRUCTION: CRISIL Withdraws D Rating on INR33cr Loans
J.K. SILKS: CRISIL Assigns B Rating to INR10.5cr Loans
JMJ FINANCE: CRISIL Lowers Rating on INR10cr LT Loan to B+
KRISH AGRO: CRISIL Reaffirms B+ Rating on INR22cr Loans
LAKSHMI GOLD: CRISIL Keeps B Debt Ratings in Not Cooperating
MITTAPALLI AUDINARAYANA: CRISIL Reaffirms B+ Cash Credit Rating
OMKAR SPECIALITY: CRISIL Keeps D Debt Ratings in Not Cooperating
PEE CEE: CRISIL Keeps B Debt Ratings in Not Cooperating Category
RELIANCE CAPITAL: Default to Yes Bank Triggered Insolvency Process
SATYA SUBAL: CRISIL Assigns B+ Rating to INR10cr Fund Based Loan
SATYESHWAR HIMGHAR: CRISIL Assigns B+ Rating to INR10cr Loan
SHIV SHANKAR: CRISIL Lowers Rating on INR10cr Cash Loan to D
SHRIDEVI CHARITABLE: CRISIL Withdraws D Rating on INR30.46cr Loan
SOCIETY FOR SOCIAL: CRISIL Assigns B+ Rating to INR10cr LT Loan
SUNGRACIA TILES: CRISIL Hikes Rating on INR14.43cr Loan to B+
SUNITI PROVA: CRISIL Reaffirms B Rating on INR2.78cr Cash Loan
V. K. AUTOMART: CRISIL Reaffirms B+ Rating on INR6.0cr Loans
VENKATESHWARA FIBRE: CRISIL Cuts Rating on INR14.75cr Loan to B+
YOGESHWARI SUGAR: CRISIL Assigns D Rating to INR40cr Cash Loan
YUSEN LOGISTICS: CRISIL Lowers Corporate Credit Rating to B
J A P A N
SUMITOMO CHEMICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings
M A L A Y S I A
1MDB: Former Malaysia Prime Minister Loses Appeal of Conviction
[*] MALAYSIA: More than 11,000 Declared Bankrupt Since March 2020
N E W Z E A L A N D
BRENT RAFFERTY: Creditors' Proofs of Debt Due on Jan. 6
CROWN ASSET: Creditors' Proofs of Debt Due on Jan. 31
EASTERN FISHING: Creditors' Proofs of Debt Due on Jan. 28
INFOREST LOGGING: Creditors' Proofs of Debt Due on Jan. 22
S I N G A P O R E
BENDEMEER INFRASTRUCTURE: Borrelli Walsh Appointed as Liquidators
EFC FOUNDATION: Court to Hear Wind-Up Petition on Dec. 17
GRAND PARK: Court Enters Wind-Up Order
S O U T H K O R E A
KOREA GAS: Egan-Jones Hikes Local Currency Unsec. Ratings to BB-
- - - - -
=================
A U S T R A L I A
=================
BLACK MAGIC: Second Creditors' Meeting Set for Dec. 16
------------------------------------------------------
A second meeting of creditors in the proceedings of Black Magic
Plus Pty Ltd has been set for Dec. 16, 2021, at 10:30 a.m. via
virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 15, 2021, at 4:00 p.m.
Mitchell Griffiths of Rapsey Griffiths Turnaround + Advisory was
appointed as administrator of Black Magic on Nov. 16, 2021.
CECIL DEVELOPMENTS: Second Creditors' Meeting Set for Dec. 17
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Cecil
Developments Pty Limited formerly trustee for Cecil Developments
Unit Trust and Parkroyal Investments Pty Ltd has been set for Dec.
17, 2021, at 11:00 a.m. via ZOOM.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 16, 2021, at 4:00 p.m.
Mitchell Warren Ball and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of Cecil Developments on Nov. 12,
2021.
INFRABUILD AUSTRALIA: Moody's Cuts CFR & Sr. Secured Notes to Caa1
------------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and backed senior secured notes rating of InfraBuild
Australia Pty Ltd to Caa1 from B3. The outlook was changed to
negative from ratings under review. This concludes the review for
downgrade initiated on September 28, 2021.
RATINGS RATIONALE
The downgrade of InfraBuild's ratings to Caa1 reflects the
increasing refinancing risk surrounding the maturity of its AUD250
million asset-based lending facility (ABL) due October 2022.
Moody's views InfraBuild not completing its refinancing initiatives
at least one year prior to maturity, combined with the ongoing
delays relative to Moody's previous expectations, as exposing the
company to material refinancing risk. If the refinancing is not
completed ahead of maturity, Moody's expects this would
significantly reduce the company's liquidity buffer and flexibility
to deal with any material downside to Moody's current forecasts.
Liquidity risk management is a key component of financial strategy
and risk management under Moody's governance risk assessment
framework.
However, Infrabuild's execution on its initiatives to improve its
operating profile, combined with strong steel demand and pricing
conditions in Australia, have supported material earnings growth
and an ongoing trend of improving credit metrics. Moody's expects
that EBITDA generation and credit metrics for the first half of
fiscal 2022 will be ahead of the rating agency's previous
expectations and that operating conditions will support the
company's ability to sustain these levels in the second half of the
fiscal year ended June 2022 (fiscal 2022). Under the agency's base
case assumptions, InfraBuild should generate EBIT margins over 6%,
and register debt/EBITDA of around 2x and EBIT interest coverage
around 3x for fiscal 2022. The agency also expects that this strong
operating performance, combined with sustained progress on
initiatives to improve working capital and reduce capital
expenditures, should allow for solid free cash flow generation.
If operating conditions remain robust and InfraBuild further
executes on its planned working capital initiatives, free cash flow
generation should be at levels that would allow the company to
generate enough cash to repay its borrowings under the ABL facility
and provide cash backing for its letters of credit supported by the
facility. However, if this occurs Moody's would expect that overall
liquidity would be at low levels to support InfraBuild's ongoing
operations.
Under Moody's base case forecasts for this scenario, the agency
expects that total liquidity would likely reduce to around
AUD140-170 million following the repayment of the ABL and the
funding of the interest payment on its secured notes in early
October 2022. Moody's views this as an unsustainably low level of
liquidity for a business of InfraBuild's scale and working capital
needs. This level of expected liquidity would make InfraBuild
highly susceptible to any underperformance operationally, or in its
ability to achieve its working capital improvement initiatives. In
addition, if the company is unable to secure refinancing for the
ABL prior to maturity, Moody's believes that this would also
increase refinancing risk in respect of the company's USD325
million of senior secured notes, albeit the notes will not be due
until October 2024.
Moody's understands that InfraBuild is in advanced stages of
raising funding to refinance the ABL and has guided that it expects
this to be completed in the third quarter of fiscal 2022. The
agency also notes that the company has been making solid progress
on its significant initiatives to improve its working capital
position. If further upside is achieved, this could materially
increase free cash flow generation beyond the agency's current
expectations and support the sustainability of its liquidity
profile without an ABL refinancing.
Liquidity and refinancing risk have been key drivers of recent
rating downgrades. Given the strength of InfraBuild's operations
and Moody's expectations for credit metrics to be in line with
peers at higher rating levels, successful completion of a
refinancing of the ABL, and/or free cash flow generation
significantly above Moody's current forecasts, could trigger a
multiple notch upgrade as they would materially improve
InfraBuild's liquidity profile.
However, the current negative outlook reflects Moody's view that
refinancing and liquidity risk will continue to increase until the
ABL is successfully refinanced.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings are unlikely to be upgraded or the outlook stabilized
prior to the completion of its refinancing of the ABL facility.
However, a successful refinancing of the ABL would likely lead to
an upgrade of ratings by multiple notches, particularly if
liquidity is upsized as Moody's understands is the company's
target, as it would materially improve InfraBuild's liquidity
profile.
The ratings could be downgraded if InfraBuild is unable to
refinance its ABL facility and its liquidity profile weakens beyond
Moody's current expectations.
The principal methodology used in these ratings was Steel published
in November 2021.
BACKGROUND
InfraBuild Australia Pty Ltd is Australia's largest and only
vertically integrated EAF manufacturer and supplier of steel long
products. The company supplies around 2.3 million tonnes per annum
of steel long products to over 15,000 active customers in
Australia. The company's integrated operations reflect its position
as the second largest ferrous and non-ferrous recycling business in
Australia by volume and its large distribution network.
InfraBuild is a private company, and is ultimately owned by GFG
Alliance, a United Kingdom based international industrial, energy,
natural resources and financial services group.
MOTTLEY CREW: Second Creditors' Meeting Set for Dec. 16
-------------------------------------------------------
A second meeting of creditors in the proceedings of Mottley Crew
Investments Pty Ltd ATF The Mott Investment Trust has been set for
Dec. 16, 2021, at 9:00 a.m. via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 15, 2021, at 5:00 p.m.
Anne Meagher of SV Partners was appointed as administrator of
Mottley Crew on Nov. 11, 2021.
ORIGINAL SAFE: Second Creditors' Meeting Set for Dec. 15
--------------------------------------------------------
A second meeting of creditors in the proceedings of:
- The Original Safe Eggs Assured Company Pty Ltd;
- Australian Pasteurised Eggs Pty Ltd;
- Safe Eggs Assured Pty Ltd; and
- National Pasteurised Eggs (Australia) Pty Ltd
has been set for Dec. 15, 2021, at 11:30 a.m. at the offices of SV
Partners, Level 3, 12 Short Street, in Southport, Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 14, 2021, at 4:00 p.m.
Matthew John Bookless and Anne Meagher of SV Partners were
appointed as administrators of Original Safe on Nov. 10, 2021.
RESIMAC TRIOMPHE 2021-3: S&P Assigns B Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2021-3. RESIMAC Triomphe
Trust - RESIMAC Premier Series 2021-3 is a securitization of prime
residential mortgage loans originated by RESIMAC Ltd. (RESIMAC).
The preliminary ratings reflect the following factors.
The credit risk of the underlying collateral portfolio and the
credit support provided to each rated class of notes are
commensurate with the ratings assigned. Subordination and lenders'
mortgage insurance (LMI) cover provide credit support. The credit
support provided to the rated notes is sufficient to cover the
assumed losses at the applicable rating stress. S&P's assessment of
credit risk takes into account RESIMAC's underwriting standards and
approval process, which are consistent with industrywide practices;
the strong servicing quality of RESIMAC; and the support provided
by the LMI policies on 26.6% of 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 cross-currency swap, the interest-rate swap, 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 does not assume the notes are called at or beyond the
call date.
S&P's ratings also take into account the counterparty exposure to
National Australia Bank Ltd. as cross-currency swap provider,
interest-rate swap provider, and liquidity facility provider, and
Westpac Banking Corp. as bank account provider.
The interest-rate swap is provided to hedge the interest-rate risk
between any fixed-rate mortgage loans and the floating-rate
obligations on the notes. A currency swap is provided to hedge the
Australian dollar receipts from the underlying assets and the yen
payments on the class A1 notes. The transaction documents for the
swaps and liquidity facility include downgrade language consistent
with S&P Global Ratings' counterparty criteria. S&P has also
factored into its ratings the legal structure of the trust, which
is established as a special-purpose entity and meets its criteria
for insolvency remoteness.
Preliminary Ratings Assigned
RESIMAC Triomphe Trust - RESIMAC Premier Series 2021-3
Class A1, JPY16,000.000 million: AAA (sf)
Class A2, A$700.000 million: AAA (sf)
Class AB, A$65.900 million: AAA (sf)
Class B, A$14.800 million: AA (sf)
Class C, A$10.900 million: A (sf)
Class D, A$3.900 million: BBB (sf)
Class E, A$2.200 million: BB (sf)
Class F, A$1.200 million: B (sf)
Class G, A$1.100 million: Not rated
===============
C A M B O D I A
===============
ADVANCED BANK OF ASIA: S&P Affirms 'B+' LT ICR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its long-term issuer credit rating on
Advanced Bank of Asia Ltd. (ABA) at 'B+'. The outlook is stable. At
the same time, S&P affirmed its 'B' short-term issuer credit rating
on the bank. S&P has also affirmed its long-term issue credit
rating on ABA's senior unsecured local currency bond at 'B+'.
The affirmation reflects S&P's view that ABA will be able to manage
its above average loan growth and business expansion. ABA's
business franchise is strengthening, underpinned by substantial
growth in its market share in terms of loans and deposits, physical
and digital distribution network, and customer base. Combined with
good operating efficiency, these factors support its superior
profitability.
S&P believes ABA's digital platforms are a competitive advantage
that supports loan and deposit expansion. The bank also employs
more sophisticated risk management systems, including cash flow
analysis to support its credit decisions, compared with domestic
peers. Nevertheless, downside risks to ABA's asset quality metrics
and profitability have become more acute, given a material amount
of restructured loans resulting from COVID-19. Another factor is
the bank's heavy loan exposure to the micro, small and midsize
business enterprise (MSME) segment.
The strong loan growth has been driven by ABA's core customer base
of MSMEs, and S&P projects that the bank will record about 35% loan
growth in 2021, even as the pandemic continues to weigh on sectors
such as tourism and transportation. However, over the next two to
three years, ABA's loan growth should gradually slow and converge
with system average given the higher base effect and strong
competition from peers.
The bank has seen only a marginal increase in nonperforming loans
(NPLs), to 0.9% of total in 2020 from 0.8% in 2019. Restructured
loans account for a sizable 15.7% of total loans, most of which is
to micro and small businesses impacted by COVID. S&P sees a risk
that the expiry of the Cambodia's loan restructuring scheme by the
end of 2021 will result in higher NPLs hospitability sectors. That
said, most borrowers are servicing their loans and paying monthly
interest under the restructured terms.
S&P said, "We forecast the bank's NPL ratio could increase to up to
4% and credit costs could peak at up to 150 basis points in 2022
after the loan restructuring scheme expires at end-2021, broadly in
line with our base case system wide forecasts.
"We view management as having the skills, capabilities, and
flexibility to navigate volatile operating conditions amid the
pandemic. We believe the oversight provided by the National Bank of
Canada, both in ABA's board and group audits, supports risk-based
decision-making at ABA.
"We anticipate ABA's capital and earnings will remain sufficient
over the next 12-18 months. We expect ABA to continue to retain
100% of its net profits and maintain access to additional capital
from its parent, the National Bank of Canada. ABA regularly
receives common equity and subordinated debt from its parent to
support rapid balance sheet growth. By our forecasts, ABA will
sustain a risk-adjusted capital (RAC) ratio of 5.5%-6.0% over the
next 12-18 months. Meanwhile, the bank's large customer deposit
base will likely continue to grow at least in line with loans,
given its strong digital platforms. Our base case is that the
bank's business franchise trajectory, capitalization, risk profile,
as well as funding and liquidity will remain broadly stable over
the next 12-18 months.
"The stable ratings outlook on ABA reflects our view that the bank
will sustainably manage rapid loan and deposit growth as Cambodia
emerges from COVID-19 pandemic. We believe asset quality will
deteriorate as the COVID loan restructuring scheme is phased out,
but remain manageable.
"We could lower the rating if asset quality, as measured by the NPL
ratio or credit costs, weakened beyond our base case. This would be
particularly likely if the deterioration were coupled by a COVID
resurgence derailing the economic recovery. We could also lower the
rating if ABA's loan growth is significantly above the industry
average, leading to a material buildup of risks or stresses on the
risk management capabilities of the bank."
S&P views an upgrade as unlikely over the next 12-18 months.
=========
C H I N A
=========
HNA GROUP: Cedes Control of Core Airline Operations
---------------------------------------------------
Bloomberg News reports that HNA Group Co. has officially handed
over control of its core airline operations to Liaoning Fangda
Group Industrial Co., marking the end of an era for the Chinese
conglomerate as it continues to restructure one of the country’s
biggest piles of corporate debt.
Gu Gang, head of a government taskforce in charge of HNA's
restructuring, will no longer serve as the group’s leading
secretary for the Communist Party after the key handover of Hainan
Airlines Holding Co., the company said in a statement on social
media Dec. 8, Bloomberg relates. The taskforce will continue its
remaining work in handling the group's reorganization, according to
the statement.
"We wish Hainan Airlines and all the brother airlines a safe
landing, and rebirth after nirvana!" the group said.
Bloomberg says the handover is the latest step in the long
dissolution of one of China's biggest conglomerates. HNA acquired
luxury properties and major stakes in firms from Deutsche Bank AG
to Hilton Worldwide Holdings Inc. several years ago after a rapid
expansion that saw it amass around $310 billion of debt. Efforts to
offload assets and refocus on aviation failed to salvage the
company, particularly as Covid wreaked havoc on airlines, leading
to HNA's epic downfall.
As well as Liaoning Fangda taking over the airline, the
restructuring also saw HNA bring in state-owned Hainan Development
Holdings Co. as a strategic investor for the airport unit,
according to Bloomberg. Once the restructuring is final, HNA and
320 related units will become six independent operations, under
airlines, airports, ship manufacturing, hotel, financial services
and others.
Headquartered in Beijing, Liaoning Fangda’s businesses include
carbon and steel manufacturing, pharmaceuticals and finance, the
report notes. It has four companies listed in mainland China and a
workforce of more than 60,000. Hainan Development is owned by the
government of Hainan and Gu is the firm’s chairman.
Hainan Airlines reported a third-quarter net loss of CNY2.56
billion ($403 million) in October, narrower than a CNY3.8 billion
shortfall the same period a year earlier. Revenue rose 10%,
Bloomberg discloses.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific, HNA
Group on Jan. 29, 2021 declared bankruptcy and restructuring after
a multi-year debt and liquidity crisis. The company was informed by
South China's Hainan High People's Court on Jan. 29 that "because
the company is unable to pay off its debts, related creditors
appealed to the court for the company's bankruptcy and
restructuring," HNA said.
According to Global Times, HNA Group said it will cooperate with
the court for judicial review, carry forward the debt disposal, and
support the court's protection of the legal rights of its creditors
so as to ensure the smooth operations of the company.
On March 15, 2021, a court in Hainan approved the merger and
restructuring of 320 affiliates of HNA Group into the parent
company, paving way for the conglomerate to eventually emerge from
bankruptcy, Caixin Global said.
HNA Group was designated as administrator of the merger, according
to a statement issued March 15 by the Hainan High People's Court.
The 320 units will be integrated into HNA group's bankruptcy
reorganization, and the group will submit a restructuring plan to
the creditor meeting for approval, the court said.
IQIYI INC: Cuts 20% of Workforce as Losses Balloon
--------------------------------------------------
Caixin Global reports that Chinese video streaming platform iQiyi
Inc. is laying off hundreds of workers as losses balloon, marking a
sharp U-turn from its previous strategy of seeking profit through
expansion.
The Baidu-backed company is laying off an average of 20% of its
workforce across departments, with firings running as high as 40%
for the least profitable divisions, several company employees told
Caixin.
iQIYI, Inc. is an innovative market-leading online entertainment
service in China. The company's platform features iQIYI original
content, as well as a comprehensive library of other
professionally-produced content (PPC), professional user-generated
content (PUGC) and user-generated content.
KAISA GROUP: Moves Closer to Discussing Financing With Bondholders
------------------------------------------------------------------
Bloomberg News reports that a group of Kaisa Group Holdings Ltd.
bondholders is close to signing non-disclosure agreements with the
developer in a move that would pave the way for discussions around
a potential financing deal for the beleaguered firm.
The creditor group is being advised by Lazard Ltd, Bloomberg
relates. An announcement about the agreements could come as early
as Dec. 9 in Hong Kong, one of the people said. Lazard is seeking
more bondholders to join the group.
According to Bloomberg, the signing of NDAs is a crucial step as it
would allow creditors to access data and information they haven’t
yet seen. The group has been discussing various potential financing
arrangements, including creditors and other lenders providing new
money to Kaisa, a separate person with knowledge of the discussions
said, the report relays.
Bloomberg says Kaisa's creditors have yet to receive payment on a
$400 million dollar bond that matured on Dec. 7, putting the
company on the brink of becoming the second major Chinese developer
to renege on debt obligations this week.
The Shenzhen-based developer failed last week to win approval for a
debt swap that would have extended its repayment deadline. A group
of Kaisa noteholders sent the company a formal forbearance proposal
on Monday, Blomberg previously reported.
About Kaisa Group
Kaisa Group Holdings Ltd engages in real estate development in
China, including urban redevelopment projects in the GBA. As of
June 30, 2021, the company's land bank comprised an aggregate gross
floor area of 31.1 million square meters of saleable resources
across over 50 cities in China.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded the corporate family
rating of Kaisa Group Holdings Ltd to Ca from Caa1. At the same
time, Moody's has downgraded the senior unsecured rating on the
bonds issued by Kaisa to C from Caa2. The outlook remains
negative.
The TCR-AP has also reported that S&P lowered its long-term issuer
credit rating on Kaisa Group Holdings Ltd. to 'CCC-' from 'CCC+'.
The negative outlook reflects Kaisa's very high nonpayment risk and
high probability of debt restructuring. S&P subsequently withdrew
its 'CCC-' long-term issuer credit rating on Kaisa at the issuer's
request.
KAISA GROUP: Suspends Trading Amid Uncertainty Over Debt Repayment
------------------------------------------------------------------
Bloomberg News reports that Kaisa Group Holdings Ltd. has suspended
stock trading in Hong Kong amid growing concern over the Chinese
developer's ability to service its debts as distress in the
nation's property sector spreads.
The company faced repayment on a $400 million dollar bond that came
due on Dec. 7 after it failed last week to win approval for a debt
swap that would have extended its repayment deadline. A group of
Kaisa noteholders sent the company a formal forbearance proposal on
Dec. 6, people familiar with the matter said, but the outcome was
uncertain. No reason was provided for the trading suspension, which
is its second halt in just over a month.
Kaisa, which became first Chinese developer to default on dollar
debt in 2015, now risks reneging on its debt obligations again.
It's the nation's third-largest issuer of dollar notes among
property firms, and its stumble adds to contagion risk just as
investors grapple with an escalating crisis at China Evergrande
Group,, the report notes.
Like Evergrande, Kaisa has been a frequent borrower in the offshore
market with some $11.6 billion of dollar notes outstanding, even as
it ranks just 27th among China's property developer by sales. It
had attracted strong demand from global investors after it returned
in 2016 following a hiatus amid its restructuring.
About Kaisa Group
Kaisa Group Holdings Ltd engages in real estate development in
China, including urban redevelopment projects in the GBA. As of
June 30, 2021, the company's land bank comprised an aggregate gross
floor area of 31.1 million square meters of saleable resources
across over 50 cities in China.
As recently reported in the Troubled Company Reporter-Asia Pacific,
Moody's Investors Service has downgraded the corporate family
rating of Kaisa Group Holdings Ltd to Ca from Caa1. At the same
time, Moody's has downgraded the senior unsecured rating on the
bonds issued by Kaisa to C from Caa2. The outlook remains
negative.
The TCR-AP has also reported that S&P lowered its long-term issuer
credit rating on Kaisa Group Holdings Ltd. to 'CCC-' from 'CCC+'.
The negative outlook reflects Kaisa's very high nonpayment risk and
high probability of debt restructuring. S&P subsequently withdrew
its 'CCC-' long-term issuer credit rating on Kaisa at the issuer's
request.
=========
I N D I A
=========
ALFARA'A INFRAPROJECTS: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Alfara'A
Infraprojects Private Limited (AIPL) continues to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Fund Based 173.00 CRISIL D (Issuer Not
Facilities LT Cooperating)
Non-Fund Based 535.09 CRISIL D (Issuer Not
Facilities ST Cooperating)
CRISIL Ratings has been consistently following up with AIPL 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 AIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AIPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
AIPL, which was set up in 2011, undertakes civil construction
activities in India. The Alfara'a group has a long track record
of operations in the civil construction industry in the UAE, having
delivered projects both for private as well as government sectors.
ALIENS DEVELOPERS: CRISIL Moves D Debt Rating to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Aliens
Developers Private Limited (ADPL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.8 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 6.3 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 0.9 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ADPL for
obtaining information through letters and emails dated November 10,
2021 and November 15, 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 ADPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ADPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of ADPL to 'CRISIL D/CRISIL D Issuer not
cooperating'.
ADPL, incorporated in 2004, is a Hyderabad-based company that
undertakes residential real estate projects across the city and its
adjacent locations. Mr. Hari Challa and Mr. Venkata Prasanna Challa
are the promoters.
BMR GOLD: CRISIL Moves B+ Debt Ratings from Not Cooperating
-----------------------------------------------------------
Due to inadequate information and in-line with the Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated its
ratings of BMR Gold and Diamonds (BMRGAD) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
management has subsequently started sharing information, necessary
for carrying out a comprehensive review of the rating.
Consequently, CRISIL Ratings is migrating the rating on the
long-term bank facilities of BMRGAD from 'CRISIL B+/Stable Issuer
Not Cooperating' to 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 2 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Open Cash Credit 9 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
The rating reflects the firm's modest scale of operations,
susceptibility to intense competition in the jewelry retailing
business and exposure to project demand, funding and implementation
risks for the proposed real estate project. These weaknesses are
partially offset by the extensive experience of the partners and
their funding support.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Scale of operations should remain
small with expected revenue of INR25 crore in fiscal 2022. Modest
scale of operations constrains the business risk profile. Further,
the company does not have any expansion plan in jewelry business
over the next two years.
* Exposure to intense competition: Revenue and profitability will
remain susceptible to intense competition in the gold jewelry
business and to volatility in raw material prices. Because of
intense competition, players are required to continuously offer new
designs and come up with innovative marketing practices to attract
and retain customers. Further, volatility in gold prices impacts
demand.
* Exposure to high project risk: The firm plans to undertake a
residential real estate project in Ongole, Andhra Pradesh at an
estimated cost of INR150 crore. The project is yet to be launched
and funding has not been tied-up so far. Hence the firm will remain
exposed to high demand, funding and implementation risks.
Strength:
* Extensive experience of the partners and their funding support:
Over the years the partners have developed sound judgement about
the pricing and hedging of gold resulting in prudent
strategy/management of inventory. Steady promotion of the brand has
resulted in a moderate foothold in the local market. Need-based
funding support from the partners is expected to continue.
Liquidity: Stretched
Liquidity is expected to remain under pressure as the real estate
project will be highly dependent on future bookings and flow of
customer advances to fund its construction cost and service its
debt. Cash accrual from the jewellery business is expected to
remain modest on account of the small scale of operations. Bank
limit utilisation averaged a moderate 77.43% in the 12 months ended
September 2021.
Outlook: Stable
CRISIL Ratings believes BMRGAD will continue to benefit from the
extensive experience of its partners.
Rating Sensitivity factors
Upward factors:
* Significant bookings and customer advances from the real estate
project resulting in sizeable cash inflows
* Net cash accrual increases to over INR2 crore
Downward factors:
* Stretch in working capital cycle or large cash outflows due to
withdrawal of capital/unsecured loans by the partners,
* Significant time or cost overrun in the project and cash buffer
ratio declining to below 1.4 times.
Set up in 2007 as Sri Vijaya Venkata Ramana Jewellery Mart, the
name was later changed to BMR Gold and Diamonds. The firm is
engaged in retail jewelry business and its operations are managed
by Mr. Shankar Rao and his son Mr. Arjun.
DURGASHREE CASHEWS: CRISIL Cuts Rating on INR5cr Cash Loan to D
---------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Sri Durgashree Cashews to 'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.6 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Cash 5 CRISIL D (Downgraded from
Credit Limit 'CRISIL B/Stable')
Proposed Long Term 2.9 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
Term Loan 1.5 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects delays in repayment of term loan interest
and instalment for the month of October 2021, along with other
previous months. These delays are caused due to poor liquidity.
The rating continues to reflect the firm's modest scale of
operations amidst intense competition in the cashew industry, and
below-average financial risk profile. These weaknesses are
partially offset by extensive experience of partners in the cashew
processing industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in servicing debt obligation: There were delays in
repayment of term loan interest and instalment for the month of
October 2021, along with other previous months.. These delays are
caused due to poor liquidity arising from weak business
performance.
* Modest scale of operations in an intensely competitive industry:
Intense competition in the cashew processing business has kept the
scale of operations modest, as reflected in estimated revenue of
around INR2.8 crore in fiscal 2021. Modest scale and competition
from organised and unorganised players in the cashew processing
industry shall continue to constrain the business risk profile over
the medium term.
* Below-average financial risk profile: Financial risk profile is
below-average marked by a negative networth of 4.95 crore and
consequently a negative gearing as on March 31, 2021. The networth
has been eroded due to operating losses incurred in the past.
Interest coverage was modest at around 1.39 times and net cash
accrual to total debt ratio was negative in fiscal 2021 due to cash
losses. The financial risk profile is expected to gradually improve
over the medium term with moderate accretion to reserves.
Strength:
* Experience of the partners in the cashew industry: The partners,
Mr. Adarsh Hegde and Mr. Pramod Hegde were engaged in trade of raw
cashew nuts and have built healthy relationships with overseas
suppliers and clients in a short span of time. CRISIL believes that
the firm may benefit over the medium term, from the industry
experience of the promoters.
Liquidity- Poor
Bank limit utilization of INR60 lakhs of limit was high around 95
percent for the past twelve months ended October 2021. Cash accrual
is expected to remain weak at less than INR0.5 crore that shall be
tightly matched to meet repayment obligations.
Rating Sensitivity factors
Upward factors:
* Track record of timely payment of term loan instalments for a
period of 90 days
* Improvement in cash accrual to more than INR0.75 crore
* Correction in capital structure supported by improvement in
networth
SDC, set up as a partnership firm in 2012, processes raw cashew
nuts and sells cashew kernels. The firm has a facility in Udupi,
Karnataka. Operations are managed by Mr. Adarsh Hegde and Mr.
Pramod Hegde.
GITAI FARMER: CRISIL Assigns B- Rating to INR4.35cr Term Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the
long-term bank facilities of Gitai Farmer Producer Company Limited
(GFPCL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B-/Stable (Assigned)
Proposed Cash
Credit Limit 3.5 CRISIL B-/Stable (Assigned)
Proposed Term Loan 1.65 CRISIL B-/Stable (Assigned)
Term Loan 4.35 CRISIL B-/Stable (Assigned)
The rating reflects exposure to risks related to initial stage of
operations and weak financial risk profile. These weaknesses are
partially offset by extensive experience of the promoters in the
agriculture industry and moderate working capital cycle.
Analytical approach
Unsecured loans (INR61 lakh as on March 31, 2021) have been treated
as neither debt nor equity as these loans are expected to remain in
the business over the medium term.
Key rating drivers & detailed description
Weaknesses:
* Modest scale of operations amid intense competition: The trading
industry is highly fragmented, and the consequent intense
competitive pressure may continue to constrain scalability, pricing
power and profitability. GFPCL began operations since January 2020,
indicating limited track record of operations. Consequently,
revenue was modest at INR9.50 crore during fiscal 2021. Though
revenues are expected to increase in the medium term, it would
continue to remain modest.
* Weak financial risk profile: Networth was low at INR1.03 crore as
on March 31, 2021, and total outside liabilities to adjusted
networth (TOL/ANW) ratio high at 5.79 times, due to the debt-funded
capital expenditure undertaken during the fiscal. The capital
structure may further weaken due to expected losses in the medium
term. Debt protection metrics are expected to be weak in fiscal
2022, given high interest on loan availed for the capex and low
operating margins.
Strengths:
* Extensive industry experience of promoters: The promoters have
over two decades of experience in the agriculture industry through
fiscal 2021. Their strong understanding of market dynamics and
healthy relations with suppliers and customers should help scale up
the business.
* Moderate working capital cycle: Gross current assets have been 82
days for as on March 31, 2021, driven by moderate inventory and low
debtors of 52 days and 26 days, respectively. The company extends
long credit to customers, in line with industry standards, to
maintain healthy relation with customers and thus working capital
cycle is expected to remain stable in the medium term.
Liquidity: Poor
Cash accrual is projected at INR5-6 lakh per annum over the medium
term, insufficient to meet the yearly debt obligation of around
INR60 lakh. Bank limit utilisation was high and has been almost
fully utilised for the 12 months through October 2021. Current
ratio was low at 0.81 time on March 31, 2021, and cash and bank
balance were INR2.89 lakh. The promoters are likely to continue
extending unsecured loans to meet working capital requirement and
repayment obligation.
Outlook: Stable
GFPCL will continue to benefit from extensive experience of the
promoters and their healthy relations with customers and
suppliers.
Rating sensitivity factors
Upward factors:
* Substantial and sustainable increase in revenue and
profitability, leading to cash accrual more than INR50 lakh
* Significant improvement in liquidity, with bank limit utilisation
below 95%
Downward factors:
* Steep decline in revenue by more than 10% or profitability,
resulting in negative cash accrual
* Decline is liquidity leading to company not able to meet its
financial obligations on time
GFPCL, incorporated in 2017, trades in fruits and vegetables; the
company commenced operations from fiscal 2020. It has a cold
storage unit at Ahmednagar (Maharashtra), which provides grading,
sorting and packaging facilities Mr. Balasaheb Sakharam Kale and
Mr. Chandrashekhar Shikare are the promoters.
GKR INFRACON: CRISIL Withdraws D Rating on INR30cr Bank Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
GKR Infracon (India) Private Limited (GKR) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 30 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Overdraft Facility 6 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Proposed Bank 35 CRISIL D/Issuer Not
Guarantee Cooperating (Withdrawn)
Proposed Overdraft 29 CRISIL D/Issuer Not
Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with GKR for
obtaining information through letters and emails dated May 29, 2020
and June 30, 2020, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GKR. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GKR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
GKR continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2012 by Mr. Gopi Krishna Lankireddy and Mr. Subba
Reddy Lankireddy and based out of Telangana, GKR Infracon India
Private Limited (GKR) is engaged in undertaking civil construction
works. The company is currently undertaking water grid projects
related to laying of pipeline and other drinking water projects.
GOPALA POLYPLAST: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Gopala
Polyplast Limited (GPL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 47.2 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.46 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 27.41 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GPL for
obtaining information through letters and emails dated August 19,
2021 and October 27, 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 GPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GPL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Originally incorporated in 1984 as a private limited company, GPL
was listed on the Bombay Stock Exchange in 1992-93 and
reconstituted as a public limited company. It manufactures
polypropylene woven sacks, primarily used for cement packaging. It
also produces woven labels used for manufacturing garments. Its
production units are in Gandhinagar and Silvassa.
HANUMANT CONSTRUCTION: CRISIL Withdraws D Rating on INR33cr Loans
-----------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Hanumant Construction Private Limited (HCPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 14 CRISIL D (ISSUER NOT
COOPERATING; Rating Withdrawn)
Cash Credit 19 CRISIL D (ISSUER NOT
COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with HCPL for
obtaining information through letters and emails dated November 28,
2020 and December 22, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HCPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on HCPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has Continues the ratings on the bank facilities of
HCPL to 'CRISIL D/CRISIL D Issuer not cooperating'.
The Raipur-based HCPL was set up in 1996, by Mr. Kamal Dayal
Choudhury. The company executes civil construction projects related
to industrial site development and construction of dams,
reservoirs, canals, road, and bridges.
J.K. SILKS: CRISIL Assigns B Rating to INR10.5cr Loans
------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' ratings to the
bank facilities of J.K. Silks Private Limited (JKSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (Assigned)
Long Term Loan 3.0 CRISIL B/Stable (Assigned)
The rating reflects JKSPL's working capital intensive operations
and weak financial profile. These weaknesses are partially offset
by its extensive industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital intensive operations: Gross current assets were
at 380-460 days over the three fiscals ended March 31, 2021. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 387 days as on March 31, 2021 as against
over 183 days GCAs of some of its peers. Its's large working
capital requirements arise from its high inventory levels.
* Weak financial profile: JKSPL has average financial profile
marked by gearing of 3 and total outside liabilities to adj
tangible networth (TOL/ANW) of 5 for year ending on 31st March
2021. JKSPL's debt protection measures have also been at weak
level in past due to high gearing and low accruals from the
operations. The interest coverage and net cash accrual to total
debt (NCATD) ratio are at 1.34 times and 0.03 times for fiscal
2021. JKSPL debt protection measures are expected to remain at
similar level with high debt levels.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 20 years in Apparel Retail industry.
This has given them an understanding of the dynamics of the market
and enabled them to establish relationships with suppliers and
customers.
Liquidity: Stretched
Bank limit utilization is high at around 99 percent for the past
twelve months ended October 2021. Cash accrual are expected to be
over INR0.7-0.8 crore which are tightly matched against term debt
obligation of INR0.6-0.8 crore over the medium term. Current ratio
is healthy at 1.64 times on March 31, 2021. The promoters are
likely to extend support in the form of unsecured loans to meet its
working capital requirements and repayment obligations
Outlook: Stable
CRISIL Ratings believe JKSPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Sustained improvement in scale of operation by 20% and sustenance
of operating margin, leading to higher cash accruals
* Improvement in working capital cycle, with gross current assets
improve to 300 days
* Improvement in liquidity profile with higher cushion in bank
limits
Downward factors:
* Decline in profitability or stretch in working capital cycle
* Decline in net cash accruals below INR0.5 crore on account of
decline in revenue or operating profits
JKSPL was incorporated in 2002. It is engaged in wholesaling and
retailing of women apparels such as silk sarees, readymade
garments, linens, uniforms & curtains, etc through its showrooms
located in Visakhapatnam- Andhra Pradesh and promoted by Mr.
Shailesh Kumar Jalan and Ms. Surekha Devi Jalan.
JMJ FINANCE: CRISIL Lowers Rating on INR10cr LT Loan to B+
----------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of JMJ
Finance Limited to 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 10 CRISIL B+ /Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Migrated from
'CRISIL BB-/Stable')
CRISIL Ratings has been consistently following up with JMJ Finance
for obtaining information through emails and letters dated
September 30, 2021, and October 29, 2021, respectively, 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 JMJ Finance, which restricts
CRISIL Rating's ability to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on JMJ Finance is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the ratings on bank
facilities of JMJ Finance migrated to 'CRISIL B+/Stable Issuer Not
Cooperating'.
Incorporated in 1996, JMJ Finance is the flagship company of the
JMJ group based in Thrissur, Kerala. Mr. Joju M J, the promoter of
the company, is the chairman and managing director. JMJ Finance is
a non-deposit taking NBFC and provides finance for gold loans and
term loans. The company has a network of 50 branches in seven
districts of Kerala, Tamil Nadu and Karnataka.
KRISH AGRO: CRISIL Reaffirms B+ Rating on INR22cr Loans
-------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Krish Agro Farms Private Limited
(KAFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (Reaffirmed)
Term Loan 10 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the company's susceptibility to
climatic conditions and volatility in raw material prices and
modest scale of operations amid intense competition. These
weaknesses are partially offset by the extensive experience of the
promoter in the agriculture industry, moderate working capital
management and the favorable location of the plant.
Analytical approach
Unsecured loan of INR4.41 crore provided by the promoter as on
March 31, 2021, has been treated as neither debt nor equity, as the
loan is expected to remain in the business.
Key rating drivers and detailed description
Weaknesses:
* Susceptibility to climatic conditions and volatility in raw
material prices: The crop yield of agricultural commodities is
dependent upon adequate and timely monsoons. Thus, the company is
exposed to the risk of limited availability of its key raw material
during a weak monsoon. Also, production may be impacted by pests or
crop infection, leading to higher unpredictability in the
production and pricing of agricultural commodities and derived
products.
* Modest scale of operations amid intense competition: Though
revenue improved in fiscal 2021, scale of operations remained
modest because of intense competition in the rice milling industry
and limited value addition. The scale is likely to improve over the
medium term.
Strengths:
* Extensive experience of the promoter: The two-decade-long
experience of the promoter in the rice milling industry, his strong
understanding of the market dynamics and healthy relationships with
suppliers and customers should continue to support the business.
* Moderate working capital management: Gross current assets were
76-125 days in the past three fiscals (79 days as on March 31,
2021) against over 120 days for some peers. The company is required
to extend a long credit period, in keeping with the industry
standards, as its customers are small and medium-sized players who
require credit. Furthermore, to meet the business requirement,
KAFPL holds moderate work-in-process and other inventory to cater
to sudden large orders.
* Favourable location of the plant: The company's processing unit
in the Hooghly district of West Bengal is close to paddy-growing
areas. This ensures easy availability of raw material.
Liquidity: Stretched
Bank limit remained fully utilized over the 12 months through July
2021. Cash accrual, expected at INR3.01 crore per annum, will
sufficiently cover yearly debt obligation of INR2.2 crore over the
medium term. Liquidity is partially supported by unsecured loans
from the promoters.
Outlook: Stable
KAFPL will continue to benefit from the promoter's extensive
experience and healthy relationships with clients.
Rating sensitivity factors
Upward factors
* Sustained increase in revenue and stable operating margin leading
to cash accrual of above INR3.5 crore per fiscal
* Efficient working capital management
Downward factors
* Decline in profitability or revenue leading to cash accrual of
below INR2 crore per fiscal.
* Any large, debt-funded capital expenditure weakening the capital
structure
Incorporated in 2013 and owned by Mr. Chandra Jeet Shaw, KAFPL
processes and mills non-basmati and parmal rice and produces broken
rice and rice bran at its unit in Hooghly.
LAKSHMI GOLD: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Lakshmi Gold
Khazaanaa Private Limited (LGKPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 50 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 25 CRISIL B/Stable (Issuer Not
Cooperating)
Cash Credit 123.5 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 11 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 20 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 70.5 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with LGKPL 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 LGKPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LGKPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LGKPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2007 and promoted by Mr. KP Nanjundi, LGKPL retails gold
jewellery. The company is based in Bengaluru and operates eight
jewellery showrooms, spread across Karnataka.
MITTAPALLI AUDINARAYANA: CRISIL Reaffirms B+ Cash Credit Rating
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' ratings on
long term bank Facilities of Mittapalli Audinarayana Enterprises
Private Limited (MAEPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Open Cash Credit 56 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect modest scale of operations and
below average financial risk profile. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the tobacco-processing industry.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations: With revenue of INR50.08 crore in the
Fiscal 2021 the scale of operations remains modest. Modest scale of
operations limits company's ability to take advantages associated
with economies of scale that other players with large scale of
operations are able to enjoy.
* Below average financial risk profile: The Company's financial
risk profile is below-average marked by leveraged capital structure
and modest debt protection metrics. Capital structure is leveraged
marked by gearing at 4.27 time as on 31st March 2021 on account of
high working capital requirements resulting in dependence upon cash
credit limits. Debt protection metrics is modest marked by interest
coverage of 1.13 times while net cash accruals to adjusted debt
ratio is comfortable at 0.01 time.
Strengths:
* Extensive experience of promoters: Mittapalli was promoted in the
year 1964 by Mr. Mitapalli Rama Rao. It gives the promoter an
extensive experience in the tobacco processing industry which has
enabled the firm to establish strong relationships with the
customers and suppliers which ensures steady procurement of raw
material and repeated orders from the customers.
Liquidity: Stretched
Fund based limit of INR59 were fully utilized for the past 6 months
ended October 2021. Cash accrual are expected to be in the range of
INR1.5 to INR2 crore against term debt obligation of INR3.66 crores
in Fiscal 2022 and INR0.92 crore in Fiscal 2023. The promoters are
infusing unsecured loans of around INR5 crore into business to
support the repayment in fiscal 2022.
Outlook Stable
CRISIL Ratings believes that MAEPL will continue to benefit over
the medium term from its promoters' extensive industry experience
and its established relationship with customers.
Rating Sensitivity factors
Upward factors
* Sustained improvement in scale of operations and operating
margin, leading to cash accrual of INR1.5 crore.
* Sustained improvement in financial risk profile
Downward factors
* Decline in operating income or margin leading to lower than
expected accruals
* Capital Withdrawal of more than INR3 crore in Fiscal 2020
* A substantial increase in working capital requirement, or large,
debt-funded capital expenditure, thus weakening the financial
profile, especially liquidity.
MAEPL was set up as a partnership firm in 1964 by Mr. Mittapalli
Rama Rao and his sons Mr. Mittapalli Umamaheswar Rao and Mr.
Mittapalli Siva Kumar. The firm was reconstituted as a private
limited company in 2006. The company is engaged in processing and
selling of tobacco leaves and is based in Guntur, Andhra Pradesh.
OMKAR SPECIALITY: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Omkar
Speciality Chemicals Limited (OSCL) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 46 CRISIL D (Issuer Not
Cooperating)
Cash Credit 25 CRISIL D (Issuer Not
Cooperating)
Corporate Loan 50 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 60 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with OSCL for
obtaining information through letters and emails dated August 19,
2021 and October 29, 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 OSCL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OSCL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OSCL continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
For arriving at its ratings, CRISIL Ratings has combined the
business and financial risk profiles of OSCL and its erstwhile
subsidiaries, Risichem Research Ltd. (RRL) and Desh Chemicals Pvt.
Ltd. (DCPL) till fiscal 2017. These subsidiaries have been merged
with OSCL, as per the scheme of arrangement sanctioned by National
Company Law Tribunal (NCLT).
OSCL, set up in 1983, manufactures specialty chemicals, organic and
inorganic chemicals, and inorganic intermediates such as iodine,
selenium, molybdenum and their derivatives. The pharmaceutical
industry remains the major end user segment of the company,
accounting for nearly 70-75% of its revenues, with poultry, glass
and water treatment being the other major end user segments. The
company has 6 manufacturing facilities in Badlapur, Maharashtra.
PEE CEE: CRISIL Keeps B Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pee Cee Cosma
Sope Limited (PCCS) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.50 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with PCCS 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 PCCS, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PCCS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PCCS continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 1986 in Agra and promoted by Jain family, PCCS
manufactures laundry soaps, and detergent powder and cake under the
Doctor Soap brand. Units are in Malanpur, Madhya Pradesh; Dholpur,
Rajasthan; and Agra.
RELIANCE CAPITAL: Default to Yes Bank Triggered Insolvency Process
------------------------------------------------------------------
The Times of India reports that the RBI has cited Reliance
Capital's default to Yes Bank in respect of dues amounting to
INR1,417 crore as a key default while initiating insolvency
proceedings against the Anil Ambani group finance company.
The National Company Law Tribunal on Dec. 6 admitted the insolvency
proceedings and announced a moratorium in terms of the bankruptcy
code.
RCap had been classified as a defaulter by credit rating agencies
two years ago and a resolution process initiated by the debenture
trustee has been dragging on, hampered by litigation from creditors
to group companies, TOI says. In a letter dated December 2, 2021,
Yes Bank informed the RBI that it had dues of INR1,417 crore. This
was a principal amount of INR987 crore invested in the company's
debentures and INR430 crore as interest, which prompted the central
bank to act, TOI relays.
In its letter, Yes Bank submitted the report of RBI's Central
Repository of Information on Large Credits (CRILC) as on November
29, 2021, demonstrating that its exposure to RCap was classified as
'doubtful'.
Doubtful assets are those that have been classified as a
non-performing asset (NPA) for more than 12 months, in accordance
with the RBI's norms on bad loans, the report notes.
Yes Bank had earlier acquired Reliance's headquarters for INR1,200
crore, which was used to settle dues of Reliance Infrastructure,
TOI adds.
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
SATYA SUBAL: CRISIL Assigns B+ Rating to INR10cr Fund Based Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Satya Subal Himghar Private Limited
(SSHPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Fund-Based
Facilities 10 CRISIL B+/Stable (Assigned)
The rating reflects the company's weak financial risk profile and
exposure to regulatory risks and intense competition. These
weaknesses are partially offset by the extensive experience of the
promoters in the cold storage business in West Bengal.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to the highly regulated and intensely competitive cold
storage industry: The potato cold storage industry in West Bengal
is regulated by the West Bengal Cold Storage Association, with
rental rates fixed by the Department of Agricultural Marketing.
Fixed rentals limit players' ability to earn profit based on their
respective strengths and geographical advantages. Pressure to offer
discounts to ensure healthy utilization of storage capacity,
especially because of intense competition, also constrains
profitability.
* Weak financial risk profile: Networth was modest, estimated at
INR2.8 crore as of March 31, 2021, despite marginal improvement in
recent years on account of accretion to reserve. Gearing was high
at 2 times as of March 31, 2021, owing to high working capital
requirement. Debt protection metrics were subdued, reflected in
interest coverage and net cash accrual to total debt ratios of 1.9
times and 0.13 time, respectively, in fiscal 2021.
Strength:
Extensive experience of the promoters: The promoters' experience of
over two decades will continue to support the business. Their
strong relationships with potato farmers ensure healthy utilization
of storage capacity (90% on average in fiscal 2021).
Liquidity: Poor
Cash accrual is expected above INR0.6 crore per fiscal against nil
term debt obligation over the medium term. Bank limit utilization
averaged 91% over the 12 months through September 2021. Current
ratio was 0.57 time as of March 31, 2021.
Outlook: Stable
CRISIL Ratings believes SSHPL will continue to benefit from the
extensive experience of the promoters.
Rating Sensitivity Factors
Upward Factors
* Increase in rentals and optimum utilization resulting in growth
in revenue by 20%, leading to higher cash accrual
* Improvement in liquidity and financial risk profile
Downward Factors
* Decline in rentals and capacity utilization
* Weakening of the interest coverage ratio to less than 1 time
* Delay in payments by farmers
Incorporated in 2012, SSHPL operates a potato cold storage
facility. The cold storage is in Chandrakona, Mednipur West, and
has capacity of 172,000 quintals per annum. Daily operations are
managed by Mr. Bhaskar Ghosh, Mr. Dipankar Ghosh, Mr. Sasanka
Ghosh, Mr. Shankar Ghosh and Mr. Kinkar Prasad Ghosh.
SATYESHWAR HIMGHAR: CRISIL Assigns B+ Rating to INR10cr Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Satyeshwar Himghar Private Limited
(SHPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Fund-Based
Facilities 10 CRISIL B+/Stable (Assigned)
The ratings reflect weak financial risk profile and exposure to
risks relating to stringent regulations and intense competition in
the cold storage industry in West Bengal (WB). These weaknesses are
partially offset by the promoters' extensive experience.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to the highly regulated and intensely competitive cold
storage industry: The potato cold storage industry in West Bengal
is regulated by the West Bengal Cold Storage Association, with
rental rates fixed by the Department of Agricultural Marketing.
Fixed rentals limit players' ability to earn profit based on their
respective strengths and geographical advantages. Pressure to offer
discounts to ensure healthy utilization of storage capacity,
especially because of intense competition, also constrains
profitability.
* Weak financial risk profile: Networth was modest, estimated at
INR2.61 crore as of March 31, 2021, despite marginal improvement in
recent years on account of accretion to reserve. Gearing was high
at 4.34 times as of March 31, 2021, owing to high working capital
requirement. Debt protection metrics were subdued, reflected in
interest coverage and net cash accrual to total debt ratios of 1.4
times and 0.04 time, respectively, in fiscal 2021.
Strength:
* Extensive experience of the promoters: The promoters' experience
of over two decades will continue to support the business. Their
strong relationships with potato farmers ensure healthy utilisation
of storage capacity (90% on average in fiscal 2021).
Liquidity: Poor
Cash accrual is expected above INR0.50 crore per fiscal against nil
term debt obligation over the medium term. Bank limit utilization
averaged 91% over the 12 months through September 2021. Current
ratio was 0.70 time as of March 31, 2021.
Outlook Stable
CRISIL Ratings believes SHPL will continue to benefit from the
extensive experience of the promoters.
Rating Sensitivity factors
Upward factors
* Increase in rentals and optimum utilization resulting in growth
in revenue by 20%, leading to higher cash accrual
* Improvement in liquidity and financial risk profile
Downward factors
* Decline in rentals and capacity utilization
* Weakening of the interest coverage ratio to less than 1 time
* Delay in payments by farmers
SHPL, incorporated in 2014, is engaged in providing cold storage
facility for potato storage. The cold storage is in Chandrakona,
Mednipur West with a capacity of 178,000 quintals per annum for
storing potatoes. The day-to-day operations of the company is
managed by 5 brothers Mr. Bhaskar Ghosh, Mr. Dipankar Ghosh, Mr.
Sasanka Ghosh, Mr. Shankar Ghosh and Mr. Kinkar Prasad Ghosh.
SHIV SHANKAR: CRISIL Lowers Rating on INR10cr Cash Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded the ratings of Shiv Shankar Rice
Mills - Taraori (SSRM) to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B+/Stable Issuer Not Cooperating', as the company has
delayed in servicing of term debt-obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with SSRM for obtaining
information through letters and emails dated October 16, 2021 apart
from telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL believes that rating action on SSRM is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, CRISIL Ratings has downgraded the
ratings to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable
Issuer Not Cooperating', as company has delayed in servicing of
term debt-obligations.
Established in 2003, and managed by Mr. Anil Gupta and his wife Ms
Savita Gupta, SSRM is a partnership firm engaged in processing and
sale of basmati rice. The firm deals mainly in parboiled basmati
rice and long-grain parboiled basmati rice. It has sorting and
milling capacity of 6 tonnes per hour and its plant in Tarori,
Haryana.
SHRIDEVI CHARITABLE: CRISIL Withdraws D Rating on INR30.46cr Loan
-----------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on INR30.46 Crore Term Loan
of Sri Shridevi Charitable Trust (SSCT) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 27.54 CRISIL D (Issuer Not
Cooperating)
Term Loan 30.46 CRISIL D/Issuer Not
Cooperating (Withdrawn)
Term Loan 12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SSCT for
obtaining information through letters and emails dated October 16,
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 SSCT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SSCT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SSCT continues to be 'CRISIL D Issuer Not Cooperating'.
SSCT (previously known as Sri Shridevi Charitable Trust (R.)),
established in 1992, provides education from primary school to
graduation in engineering; it also has a medical college which
became operational in 2013-14 (refers to financial year, April 1 to
March 31). The trust's operations are managed by its managing
trustee, Dr. M R Hulinaykar.
SOCIETY FOR SOCIAL: CRISIL Assigns B+ Rating to INR10cr LT Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
proposed long-term bank facility of Society for Social Development
(SSD).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable (Assigned)
The rating reflects extensive experience of promoter and moderate
resource profile. These strengths are partially offset by small
scale of operations with geographical concentration and inherent
modest credit profile of the borrowers.
SSD is the small-sized non-profit organization and microfinance
institution (NGO-MFI), operating in Kanyakumari and Thirunelveli
districts of Tamil Nadu. Society started its microfinance operation
in 1997, and has good vintage in operating geographies. SSD is
operating with 4 branches namely, Suchindrum, Nagercoil, Thuckalay
and Valliyoor in two districts of Tamil Nadu.
Society has maintained its asset quality with nil 90+ days past due
(dpd) for the last 4-5 years. 30+ dpd was reported at 0.3% and
below last 4-5 years, asset quality is supported by the inherent
strengths of self-help groups (SHGs) and joint liability groups
(JLG). SSD provide SHG loans mainly to women's to strengthen their
financial ability and to meet their working capital requirement.
Even though Society has maintained asset quality, it will remain
vulnerable because of unsecured lending and low credit profile of
borrower.
Profitability has also affected by the Covid-19 pandemic and
localized lockdowns with the society reporting a profit INR6.3
lakhs for fiscal 2021 as against INR9.7 lakhs in previous fiscal.
Though at a pre-provisioning level, the society has reported a
profit of INR18 lakhs during fiscal 2021, the profitability has
declined mainly due to high provision of INR11.7 lakhs.
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of SSD
Key Rating Drivers & Detailed Description
Weaknesses:
* Small scale of operations with geographical concentration: SSD,
which has been in existence for over twenty years, remains a
small-sized NGO-MFI with a book size of INR6.26 crore as of March
31, 2021 and INR5.42 crore as of September 30, 2021. It mainly
provides micro finance loans to SHG loans in two districts of Tamil
Nadu. Considering the MFI does not have any aggressive plans to
scale up its business, its growth is likely to remain constrained
over the medium term.
* Inherent modest credit profile of the borrowers: The business of
these institutions entails lending to the poor and downtrodden
sections of society, MFIs will remain exposed to socially sensitive
factors, especially relating to interest rates, and, consequently,
to tighter regulations and legislation.
Strengths:
* Extensive experience of promoter: The promoter of SSD comprises
experienced professionals associated with social and developmental
activities. The board is involved in the operations and has a
strong understanding of the people and the region in which SSD
operates. Though the company has a track record of over 20 years,
which has been operational for over a two-decade. The promoters
have, therefore, developed expertise in conducting the lending
business. The management's experience will likely continue to
support the business risk profile.
* Moderate resource profile: Society is operating in MFI segment
for last two decades and was able to raised fund from banks at
competitive rate of interest. Society has received funds from 3
banks in last 3-4 years out of which one loan was sanction in
August 2021, after the second wave of pandemic. The total cost of
borrowing is at 11%-12% for the last 4-5 years.
Liquidity: Stretched
The society has a cash and cash equivalent INR4.74 crore as of
October 25, 2021, while repayment obligations for 3 months are
INR0.96 crore including operating expenses.
Outlook: Stable
CRISIL Ratings believes that SSD's scale of operations will remain
small over the medium term.
Rating Sensitivity Factors
Upward Factors
* A Significant scale-up the loan book while maintaining
operational cost and earnings
* Healthy capital position, with gearing maintained below 3 times
Substantial improvement in earnings, leading to improvement in RoA
above 1.5%
Downward Factors
* Deterioration in asset quality, with gross net performing assets
increasing to above 5% and its effect on profitability
* Inability to increase the overall scale of operations leading to
continued weakening of earnings profile
* Significant increase in adjusted gearing beyond 5 times on a
steady-state basis
About Society for Social Development
SSD was established in 1990 as Non-Profit Organisation NGO, started
its microfinance operations in 1997. SSD is operating with 4
branches in Kanyakumari and Thirunelveli district of Tamil Nadu.
Society has been operating in MFI segment for more than 2 decades
with loan portfolio of INR5.42 crore. Society has 8 members in
general body and operations are managed by 3 directors. In
addition, the society works towards creating health awareness,
skill-oriented training (computer basics, tally and other
accounting practices), self-help group (SHG) formation and credit
linkages with banks.
SUNGRACIA TILES: CRISIL Hikes Rating on INR14.43cr Loan to B+
-------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Sungracia Tiles Private
Limited (STPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating'.
However, the management has subsequently started sharing requisite
information, necessary for carrying out comprehensive review of the
rating. Consequently, CRISIL Ratings is migrating the rating on
bank facilities of STPL from 'CRISIL D/CRISIL D Issuer Not
Cooperating' to 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Cash Credit 5 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Proposed Long Term 14.43 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL D ISSUER NOT
COOPERATING')
Term Loan 10.70 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Term Loan 1 CRISIL B+/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
STPL was under 'Issuer Not Cooperative' since 2017 and eventually
it was downgraded to 'CRISIL D/CRISIL D Issuer Not Cooperating' in
January 2020 on account of continuous over-utilization of bank
lines for over 30 days. Later new management took over STPL from
NCLT in January 2021.
The rating reflects leveraged capital structure, modest scale of
operations and working capital intensive operations. These
weaknesses are partially offset by its extensive industry
experience of the promoters and strategic location of manufacturing
unit.
Key Rating Drivers & Detailed Description
Weaknesses:
* Leveraged capital structure: Though networth is modest at 6.81
crore, STPL is expected to have an average financial risk profile
with high gearing and moderate debt protection metrics as company
has taken loan to fund the capex in FY 2022 and also FY 2021 being
1st year of operation under new management.
* Modest scale of operations: STPL's business profile is
constrained by its scale of operations in the intensely competitive
ceramic tiles industry. STPL's scale of operations will continue
limit its operating flexibility. Under the new management, company
has achieved revenue of over INR7 crore as on date and expecting
over INR18 crore in FY22 and scale of operation expected to remain
modest.
* Working capital intensive operations: Operations are expected to
remain working capital intensive with gross current assets of over
140 days due to moderate debtor and inventory levels over the
medium term. It is required to extend long credit period.
Furthermore, due to its business need, it holds large work in
process & inventory.
Strengths:
* Extensive industry experience of the promoters: New management
have an experience of over decades in ceramic industry through
group company, Sepal tiles private limited. This has given them an
understanding of the dynamics of the market and enabled them to
establish relationships with suppliers and customers.
* Strategic location of manufacturing unit: The manufacturing unit
of STPL is located in Morbi which is tile manufacturing cluster.
The placement of the company in strategic location ensures the
availability of raw materials and labor easily.
Liquidity: Poor
Liquidity profile is expected to be poor with expected net cash
accrual over INR3 crore against term debt obligation of INR1.70-2
crore in near term. Repayment of term loan expected to start from
January 2022. Promoters have also provided unsecured loans of
INR4.2 crore to support the operations.
Outlook: Stable
CRISIL Ratings believes that STPL will benefit from extensive
experience of new management over the medium term.
Rating Sensitivity Factors
Upward factors:
* Significant increase in revenue with operating margin of over 9%
* Improvement in financial risk profile
Downward factors:
* Decline in interest coverage below 1.2 times on sustained basis
* Stretched working capital cycle
Incorporated in 2012, by Mr. Bharat Dhirajlal Sarsavadiya, Mr.
Manojkumar Govindbhai Patel and Mr. Jainendra Kapoorchand Malesha.
STPL manufactures ceramic wall tiles. During January 2021, new
management took over STPL from NCLT and currently manged by Mr.
Chirag Dava, Mr. Shanikumar Aghara, Mr. Sanjay Makasana and Mr.
Nirav Bhadja.
SUNITI PROVA: CRISIL Reaffirms B Rating on INR2.78cr Cash Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
bank facilities of Suniti Prova Cold Storage (SPCS).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.78 CRISIL B/Stable (Reaffirmed)
Long Term Loan 1.42 CRISIL B/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 0.80 CRISIL B/Stable (Reaffirmed)
The rating reflects the firm's susceptibility to regulatory changes
in the cold storage industry in Assam. This weakness is partially
offset by the extensive industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to regulatory changes in the cold storage industry
in Assam: The cold storage industry is regulated by state cold
storage associations. Rental rates are fixed by the Department of
Agricultural Marketing. In addition to rentals, the firm receives
marketing, drying and insurance charges per quintal. As part of the
central government's initiative to support agriculture, banks
extend financial assistance to farmers storing produce in private
cold storages against pledge of cold storage receipt. The cold
storage takes loans from banks on behalf of the farmers and extends
these loans to them. However, the primary responsibility of
repaying the bank loan along with interest remains with the cold
storages. Farmers have to clear their dues (loans and storage
charges) before withdrawing their stock from the cold storage.
However, if the material is not lifted by farmers or traders due to
low prices of the commodity, the loss has to be borne by the cold
storage.
Strength:
* Extensive industry experience of the promoters: The promoters
have been in the cold storage business for over 15 years and have
experience of over two decades in the potato trading business as
well. Over the years, they have developed healthy relationships
with traders and farmers and strong understanding of the industry,
which has helped SPCS ensure healthy utilization of its storage
capacity. Average utilization of SPCS's storage capacity in the
2020-21 season was around 90%.
Liquidity: Stretched
Liquidity is stretched because of high bank limit utilization. Cash
accrual is expected at a modest INR0.48 crore per fiscal over the
medium term against debt obligation of INR0.30 crore.
Outlook: Stable
CRISIL Ratings believes SPCS will continue to benefit from its
promoters' extensive industry experience and healthy relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Sustained increase in operating margin and revenue (20%), leading
to higher cash accrual
* Efficient working capital management
Downward factors:
* Decline in revenue (20%) and profitability, leading to lower net
cash accrual
* Substantial increase in working capital requirement, weakening
the liquidity and financial risk profile
Incorporated in 2009 by Mr. Gautam Dutta and Ms Kajal Dutta, SPCS
operates a cold storage unit in Sonitpur, Assam, with capacity of
10,500 quintals in two chambers.
V. K. AUTOMART: CRISIL Reaffirms B+ Rating on INR6.0cr Loans
------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of V. K. Automart Private Limited
(VKAPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B+/Stable (Reaffirmed)
Term Loan 0.25 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the company's modest scale of
operations, low bargaining power, exposure to intense competition
in the automobile (auto) dealership business and average financial
risk profile. These weaknesses are partially offset by the
experience of the promoters in the auto dealership business and the
benefits of association with a strong principal supplier, Hyundai
Motor India Ltd (HMIL; 'CRISIL AAA/Stable/CRISIL A1+').
Analytical Approach
Of the unsecured loan of INR1.06 crore as on March 31, 2021, from
the promoters, INR79.89 lakh has been treated as equity as it is
subordinate to bank debt, interest-free and likely to remain in the
business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and low bargaining power: Intense
competition and early stage of operations constrain scalability,
reflected in revenue of INR25.64 crore in fiscal 2021, and
bargaining power. Also, the trading business and limited value
addition restricted operating margin to 4.85% in fiscal 2021.
However, sales have picked up in the first seven months of fiscal
2022 and should grow further in this fiscal.
* Exposure to intense competition: The company faces competition
from other dealers of HMIL as well as from dealers of other
automakers. The principal supplier faces competition from other
four-wheeler manufacturers, including Maruti Suzuki India Ltd,
Renault India Pvt Ltd, Tata Motors Ltd and Ford India Pvt Ltd.
Intense competition has compelled automakers to cut costs,
including commissions to dealers.
* Average financial risk profile: The financial risk profile was
constrained by modest networth and high total outside liabilities
to adjusted networth ratio of INR0.97 crore and 5.81 times,
respectively, as of March 31, 2021. Debt protection metrics were
modest, indicated by interest coverage and net cash accrual to
total debt ratios of 2.99 times and 0.17 time, respectively, in
fiscal 2021.
Strengths:
* Experience of the promoters: The promoters' experience of around
eight years in the auto dealership business through another entity
(non-operational) will continue to support the business.
* Benefits derived from association with a strong principal
supplier: HMIL has a dominant market position, and is the
second-largest player in the passenger vehicle segment. New
vehicles launched by HMIL should continue to support the market
position.
Liquidity: Stretched
Bank limit utilization was moderate at 75.35% on average for the 12
months through August 2021. Cash accrual, expected at INR0.93-1.33
crore per fiscal, will sufficiently cover yearly term debt
obligation of INR0.12-0.88 crore over the medium term; the surplus
will cushion liquidity. Current ratio was moderate at 0.93 time as
of March 31, 2021.
Outlook: Stable
CRISIL Ratings believes VKAPL will continue to benefit from the
experience of the promoters and established relationship with
HMIL.
Rating Sensitivity factors
Upward factors:
* Sustained revenue growth of 35% and stable profitability
* Improvement in the financial risk profile
Downward factors:
* Decline in revenue or profitability, leading to cash accrual of
less than INR40 lakh
* Stretched working capital cycle, sizeable additional debt or
withdrawal of unsecured loan weakening the liquidity
Incorporated in 2015 by Mr. Abhimanue Gupta and his family members,
VKAPL is an authorized dealer for HMIL's cars and spares and
services passenger vehicles. Its showroom in Udhampur, Jammu and
Kashmir, is equipped with 3S (sales, service and spares)
facilities. Commercial operations began in July 2016.
VENKATESHWARA FIBRE: CRISIL Cuts Rating on INR14.75cr Loan to B+
----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Venkateshwara Fibre Glass
(Chennai) Private Limited (VFGPL) to 'CRISIL BB-/Stable/CRISIL A4+
Issuer Not Cooperating'. However, the management has subsequently
started sharing requisite information, necessary for carrying out
comprehensive review of the rating. Consequently, CRISIL Ratings
is migrating the rating on bank facilities of VFGPL from 'CRISIL
BB-/Stable Issuer Not Cooperating' to 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 14.75 CRISIL B+/Stable (Migrated
from 'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Cash Credit 5.50 CRISIL B+/Stable (Migrated
from 'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Long Term Loan 2.75 CRISIL B+/Stable (Migrated
from 'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
Proposed Long Term 21.00 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL BB-/Stable ISSUER
NOT COOPERATING')
The rating reflects VFGPL's vulnerability to cyclicality in
end-user industry and working capital-intensive operations. These
weakness are partially offset by the promoters' extensive industry
experience and average financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to cyclicality in end user industry: VFGPL's
operation remains susceptible to cyclicality in end-user industry.
The company's products find application in the windmill, newsprint
and paper industries. Any downward trend in economic cycle could
impact its business risk profile.
* Working capital intensive operations: The company has a working
capital intensive nature of operations which is reflected in its
gross current assets (GCA) of 393 days as of March 31, 2021. Its
large working capital requirements arise from its high debtor and
inventory levels of 109 days and 242 days respectively as on March
31, 2021. It is required to extend long credit period. Furthermore,
due to its business need, it hold large work in process inventory.
Strengths:
* Promoters' extensive industry experience: Promoters' 2 decades of
experience in manufacturing of fiber-reinforced plastic products
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers.
* Average financial risk profile: The company's financial risk
profile is average.Net worth stood at INR 19 crore as on 31st March
2021. Gearing is moderate at 1.7 times as of 31st March 2021. Debt
protection metrics are average with interest coverage and net cash
accruals to total debt at 2 times and 0.11 times respectively in
FY2021.
Liquidity: Stretched
VFGPL's liquidity is stretched marked by tightly matched cash
accrual for meeting debt repayment, and high utilization of the
bank limits. The company is expected to generate cash accrual of
around INR3.5-4 crore per annum over the medium term that is likely
to be tightly matched against repayment obligations of around
INR3.5 crore. The company has access to INR5.50 crores crore of
bank limits, which is utilized at around 95 percent over the last
twelve months through October 2021. However, the liquidity is
supported by need-based funding support from promoters, which stood
at INR10.03 crore as of March 31, 2021.
Outlook: Stable
CRISIL Ratings believe VFGPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors
* Significant improvement in scale of operation by 50% and
sustenance of operating margin, leading to higher than expected
cash accruals
* Improvement in working capital cycle
Downward factors
* Decline in net cash accruals below INR3.5 crore on account of
decline in revenue or operating profits.
* Further stretch in its working capital requirements thus
weakening its financial profile especially liquidity.
VFG was incorporated in 2005 to take over the business of
partnership concern, Venkateshwara Fibre Glass Industries, which
was set up in 1985 by Mr. T V Shrinivas and Mr. T V
Chandirasekaran. The company promoted by Mr. T V Shrinivas
manufactures fiber glass-molded products and fiberglass reinforced
plastic products that find application in the windmill, newsprint,
and paper industries.
YOGESHWARI SUGAR: CRISIL Assigns D Rating to INR40cr Cash Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL D' rating to the long-term
bank loan facilities of Yogeshwari Sugar Industries Private Limited
(YGSIL). The company has delayed its interest payment due on term
loan on account of poor liquidity.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 40 CRISIL D (Assigned)
Term Loan 5.88 CRISIL D (Assigned)
Term Loan 3.50 CRISIL D (Assigned)
Term Loan 4.62 CRISIL D (Assigned)
The rating reflects weak operating performance and its
susceptibility to cyclicality associated with sugar industry along
with weak financial risk profile. These weakness are partially
offset by its extensive industry experience of the promoters and
benefits derived from YGSIL's strategic location.
Analytical Approach
CRISIL Ratings has treated unsecured loan (USL) from promoters
(INR12.35 crore as on March 31, 2021 as debt in absence of track
record of non-withdrawal.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in servicing debt obligation: There have been delays in
servicing of interest on term loan obligations by the company.
* Weak operating performance and its susceptibility to the
cyclicality associated with sugar business: Company's operating
performance is weak indicated by modest scale of operations and low
operating margin (Rs 71.18 crore and 3.2%, respectively for fiscal
2021). Further, the sugar industry is cyclical in nature which can
result in significant volatility to operating profitability of
sugar manufacturers. Cushion between accruals and repayment
obligation is sensitive to operating profits.
* Weak financial risk profile: Company's financial risk profile is
weak indicated by cash losses over the years which has resulted in
complete erosion of networth. Further, low operating profits has
resulted in interest coverage ratio to remain below unity
indicating inadequacy to meet interest obligations.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of over 2 decades in Sugar industry. This has
given them an understanding of the dynamics of the market, and
enabled them to establish relationships with suppliers and
customers.
* Benefits derived from YGSIL's strategic location: Crushing
facility is strategically located nearby to raw material sources
which enables a healthy availability of sugarcane during the
crushing season.
Liquidity: Poor
Liquidity is poor given continued cash losses as against repayment
obligation of around INR3.4 crore per annum in fiscal 2022.
Accordingly, there have been delays in servicing of interest
obligations for term loan by the company. No major capex is
expected over the medium term. Liquidity is partially supported by
USL from partners and family, which stood at around INR12.35 crore
as on March 31, 2021. Reliance on fund support from promoters to
meet repayment obligations is expected to continue. The company
also had cash and bank balances (both encumbered and unencumbered)
of INR9.38 crore as of March 31, 2021 utilized to meet working
capital requirements.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Significant improvement in liquidity on back of substantial
improvement in operating performance, restructuring of debt or
infusion of equity.
YGSIL was incorporated in 2000. YGSIL is promoted by Mr. Rohidas
Tatayasaheb Deshmukh.YGSIL manufactures sugar and has its plant at
Parbhani District in Maharashtra with installed capacity of 1500
tonnes crushing per day (TCD).
YUSEN LOGISTICS: CRISIL Lowers Corporate Credit Rating to B
-----------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Yusen
Logistics (India) Private Limited (YLIN) to 'CCR B/Stable Issuer
Not Cooperating' from 'CCR BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Credit - CCR B/Stable (ISSUER NOT
Rating-LT COOPERATING; Revised from
'CCR BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with YLIN for
obtaining information through letters and emails dated August 19,
2021 and October 29, 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 YLIN, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YLIN
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YLIN Revised to 'CCR B/Stable Issuer Not Cooperating' from 'CCR
BB+/Stable Issuer Not Cooperating'.
YLIN, incorporated in 1998, is a step-down subsidiary of Nippon
Yusen Kabushiki Kaisha, Japan which with its global presence has
diversified operations in the logistics and shipping industry. YLIN
is a multimodal transport operator offering freight forwarding,
logistics and warehousing services in India. The company is managed
by a team of key professionals under guidance and directions of
Japanese Expats in India.
=========
J A P A N
=========
SUMITOMO CHEMICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on November 9, 2021, maintained its
'BB+' local currency senior unsecured ratings on debt issued by
Sumitomo Chemical Company, Limited.
Headquartered in Chuo City, Tokyo, Japan, Sumitomo Chemical
Company, Limited manufactures chemical products.
===============
M A L A Y S I A
===============
1MDB: Former Malaysia Prime Minister Loses Appeal of Conviction
---------------------------------------------------------------
The Wall Street Journal reports that former Malaysian Prime
Minister Najib Razak lost an appeal against his conviction last
year on charges related to his role in one of the world's largest
financial scandals, dealing a setback to the disgraced ex-leader
amid a resurgence of his political clout.
Malaysia's appellate court struck down the appeal on Dec. 8,
upholding Mr. Najib's conviction last year on all seven of the
charges in question, including abuse of power, money laundering and
criminal breach of trust, the Journal relates. Justice Abdul Karim
Abdul Jalil said the court's three-member bench was unanimous in
its decision.
"There is no error in the judgment of the High Court," the Journal
quotes Mr. Abdul Karim as saying at a hearing held on the
virtual-conference platform Zoom, referring to the body that
convicted Mr. Najib. He called Mr. Najib's actions a "national
embarrassment."
The Journal relates that the appeals court granted a request by Mr.
Najib's lawyers to stay his sentence as they submit a final appeal
to Malaysia's Federal Court, the country's highest judicial
authority. Mr. Najib is to remain free on bail throughout the
appeal, which could take months or years, during which he will
still be eligible to hold public office. Mr. Najib is currently a
member of parliament, the report notes.
In a press conference after the hearing, Mr. Najib said he was
disappointed with the judgment and pledged to continue his fight
against the charges, the Journal says. He denies all wrongdoing.
About 1MDB
Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) is an insolvent
Malaysian strategic development company, wholly owned by the
Malaysian Minister of Finance. 1MDB was established in 2009 to
foster long-term economic development for the country by forging
global partnerships, particularly in energy, real estate, tourism,
and agribusiness.
The Company was founded shortly after Dato Sri Najib Razak became
Prime Minister of Malaysia in July 2009. Najib said the
establishment of 1MDB into a federal entity was to benefit a
majority of Malaysians.
1MDB is said to have raised billions of dollars in bonds, for
investment projects and joint ventures, between 2009 and 2013.
Among those projects are the Tun Razak Exchange, Tun Razak
Exchange's sister project Bandar Malaysia, and the acquisition of
three independent power producers.
The Company came into heavy scrutiny in 2015 for suspicious money
transactions and evidence pointing to money laundering, fraud and
theft. The corruption scandal in 1MDB has implicated high-level
officials, including Prime Minister Najib Razak, as wells as banks
and financial institutions around the world.
In 2016, the U.S. Department of Justice filed a lawsuit, alleging
that at least US$3.5 billion has been stolen from 1MDB. In
September 2020, the alleged amount stolen had been raised to US$4.5
billion and a Malaysian government report listed 1MDB's outstanding
debts to be US$7.8 billion.
Malaysia has been filing lawsuits over the years in an effort to
recover the missing billions of dollars. Among others, in May
2021, Malaysia filed 22 civil suits against entities and people
involved in the corruption scandal, including units of Deutsche
Bank and JP Morgan.
Malaysia said in September 2020 it has so far recovered about $3.24
billion in assets linked to the 1MDB matter. This amount includes
about US$600 million cash and assets returned by U.S. authorities;
about $2.5 billion paid by Goldman Sachs as settlement; as well as
$780 million in settlement amounts from Malaysian banking group
AmBank and audit firm Deloitte.
[*] MALAYSIA: More than 11,000 Declared Bankrupt Since March 2020
-----------------------------------------------------------------
The New Straits Times reports that more than 11,000 people were
declared bankrupt in Malaysia since the pandemic struck in March
2020.
According to the report, Minister in the Prime Minister's
Department(Parliament & Law), Datuk Seri Dr Wan Junaidi Tuanku
Jaafar told the Dewan Rakyat that the Insolvency Department
recorded 11,207 cases of bankruptcy between March 2020 and October
2021.
He said there were 6,344 cases recorded between March to December
2020 and 4,863 cases recorded between January to September 2021.
NST relates that Wan Junaidi said that it takes around a year from
default in payments to see the true effect of Covid-19 on debtors
as their lenders can only petition for bankruptcy
proceedings/filings to take place six months after the person is
found to be insolvent.
He said default on payments were likely to have occurred after the
six months moratorium for loans between April 2020 and Sept 2020
ended, or after the six month targeted moratorium ended in March
2021, or after the additional six-month moratorium that was given
on application from July ended, NST relays.
"As such the department would look through bankruptcy cases that
are filed in these periods and would take the appropriate
administrative action," he said in a written parliamentary reply to
Dr Lee Boon Chye(Gopeng-PH) on the number of Malaysians who were
declared bankrupt since the pandemic struck.
=====================
N E W Z E A L A N D
=====================
BRENT RAFFERTY: Creditors' Proofs of Debt Due on Jan. 6
-------------------------------------------------------
Creditors of Brent Rafferty Builders Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Jan. 6,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 3, 2021.
The company's liquidator can be reached at:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour, Auckland 0751
New Zealand
CROWN ASSET: Creditors' Proofs of Debt Due on Jan. 31
-----------------------------------------------------
Creditors of Crown Asset Management Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Jan. 31,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 6, 2021.
The company's liquidator can be reached at:
John Howard Ross Fisk
Richard John Nacey
PwC
PO Box 243, Wellington 6140
New Zealand
EASTERN FISHING: Creditors' Proofs of Debt Due on Jan. 28
---------------------------------------------------------
Creditors of Eastern Fishing Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Jan. 28,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 3, 2021.
The company's liquidator can be reached at:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana, Porirua 5247
New Zealand
INFOREST LOGGING: Creditors' Proofs of Debt Due on Jan. 22
----------------------------------------------------------
Creditors of Inforest Logging Limited, which is in liquidation, are
required to file their proofs of debt by Jan. 22, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 6, 2021.
The company's liquidators can be reached at:
Rhys Cain
Larissa Logan
EY
Level 4, 93 Cambridge Terrace (PO Box 2091)
Christchurch
New Zealand
=================
S I N G A P O R E
=================
BENDEMEER INFRASTRUCTURE: Borrelli Walsh Appointed as Liquidators
-----------------------------------------------------------------
Messrs. Cosimo Borrelli and Patrick Bance of Borrelli Walsh Pte
Limited (trading as Kroll), on Dec. 3, 2021, were appointed as
liquidators of:
- Bendemeer Infrastructure Pte Ltd
- Hydrochem Desalination Technologies (Singapore) Pte Ltd
- Hyflux Capital (Singapore) Pte Ltd
- Hyflux Ip Resources Pte Ltd
- Hyflux Water Trust Management Pte Ltd
- Newspring Utility Pte. Ltd.
- Hyflux Sip Pte Ltd
- Hyflux Utility (India) Pte Ltd
The liquidators can be reached at:
Messrs. Cosimo Borrelli
Patrick Bance
Borrelli Walsh Pte Limited (trading as Kroll)
1 Raffles Place Tower 2, #10-62
Singapore 048616
EFC FOUNDATION: Court to Hear Wind-Up Petition on Dec. 17
---------------------------------------------------------
A petition to wind up the operations of EFC Foundation Ltd will be
heard before the High Court of Singapore on Dec. 17, 2021, at 10:00
a.m.
Volatility Token Master Fund filed the petition against the company
on Nov. 26, 2021.
The Petitioner's solicitors are:
Virtus Law LLP
One Raffles Place
#18-61 Tower 2
Singapore 048616
GRAND PARK: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Nov. 26, 2021, to
wind up the operations of Grand Park OR Pte. Ltd.
New Park Property Pte. Ltd filed the petition against the company.
The company's liquidators are:
Mr. Aw Eng Hai
Mr. Kon Yin Tong
c/o Foo Kon Tan LLP
24 Raffles Place #07-03
Clifford Centre
Singapore 048621
=====================
S O U T H K O R E A
=====================
KOREA GAS: Egan-Jones Hikes Local Currency Unsec. Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on November 3, 2021, upgraded the local
currency senior unsecured ratings on debt issued by Korea Gas
Corporation to BB- from BBB-. EJR also downgraded the rating on LC
commercial paper issued by the Company to B from A2.
Headquartered in Daegu, South Korea, Korea Gas Corporation
manufactures, wholesales, and distributes liquefied natural gas
(LNG) and liquefied petroleum gas (LPG) throughout South Korea.
*********
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 ***