/raid1/www/Hosts/bankrupt/TCRAP_Public/220103.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
Monday, January 3, 2022, Vol. 25, No. -4
Headlines
A U S T R A L I A
FINANCIAL ADVISER: Commences Wind-Up Proceedings
KONG DEVELOPMENT: Commences Wind-Up Proceedings
SARGON CAPITAL: Court to Hear Case Filed by Founder on Jan. 28
C H I N A
BRIGHT SCHOLAR: Moody's Lowers CFR to B2, Outlook Still Neg.
CHINA EVERGRANDE: Revises Payment Plan for Wealth Mgt. Investors
CHINA: Foreign Debt Edges Up to $2.7 Trillion at End-September
HEYING COMMERCIAL 2021-2: Moody's Rates C-1 Sub. Notes 'B2'
XINJIANG GOLDWIND: Moody's Withdraws 'Ba2' Corp. Family Rating
XINJIANG GOLDWIND: S&P Withdraws 'BB+' LT Issuer Credit Rating
YANJIYOU: Bookstore Chain Closes Stores Amid Funding Crunch
[*] CHINA: Developers Face US$197BB Challenge in January
I N D I A
ADELSON PHARMA: Insolvency Resolution Process Case Summary
ALEPH ENTERPRISES: CARE Keeps D Debt Ratings in Not Cooperating
INFRASTRUCTURE LEASING: CARE Reaffirms D Rating on INR400cr Loan
KOSCA DEP: CRISIL Assigns B- Rating to INR5cr Proposed LT Loan
KRISAM AUTOMATION: CRISIL Lowers Rating on LT/ST Loan to D
MASS-TECH CONTROLS: CRISIL Cuts Rating on INR4cr Cash Loan to B
NAYAAGARH SUGAR: Insolvency Resolution Process Case Summary
NIMITAYA HOTEL: Insolvency Resolution Process Case Summary
OMKARA VIJAYALAKSHMI: CRISIL Assigns B+ Rating to INR15cr Loan
P.D. BAJORIA: CARE Keeps B- Debt Rating in Not Cooperating
RAJ ELECTRICALS: CARE Cuts Rating on INR2.25cr LT Loan to B-
RENUKA CONSTRUCTIONS: CARE Cuts Rating on INR20cr LT Loan to B-
ROMESH POWER: Insolvency Resolution Process Case Summary
S A MULLA: CARE Keeps C Debt Rating in Not Cooperating Category
S.K. RICE: CARE Keeps D Debt Rating in Not Cooperating Category
SANWARIYAJI BUSINESS: Insolvency Resolution Process Case Summary
SHRIPROP DWELLERS: CRISIL Keeps D Ratings in Not Cooperating
SHYAM MILLERS: CARE Keeps B- Debt Rating in Not Cooperating
SOIL AND ENVIRO: CARE Keeps B Debt Ratings in Not Cooperating
SUJYOT INFRASTRUCTURE Insolvency Resolution Process Case Summary
SWADESHI MARKETING: CARE Keeps B Debt Rating in Not Cooperating
UTKAL GALVANIZERS: CRISIL Hikes Rating on INR2.50cr Loan to B
VINOTH DISTRIBUTORS: CRISIL Cuts Rating on INR13cr Loans to D
WORLD WINDOW: Insolvency Resolution Process Case Summary
M A L A Y S I A
AIRASIA GROUP: Receives MYR975 Million Cash Injection
SARAWAK CABLE: Triggers Criteria But Won't be Classified as PN17
S I N G A P O R E
ENTAIL GLOBAL: Creditors' Proofs of Debt Due on Jan. 31
KHL MARKETING: Court to Hear Wind-Up Petition on Jan. 14
NAKAMA SINGAPORE: Creditors' Proofs of Debt Due on Jan. 31
V I E T N A M
VIETNAM: Failure to Manage COVID-19 Causes GDP Growth to Slow
- - - - -
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A U S T R A L I A
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FINANCIAL ADVISER: Commences Wind-Up Proceedings
------------------------------------------------
Members of Financial Adviser Standards and Ethics Authority
Limited, on Dec. 31, 2021, passed a resolution to voluntarily wind
up the company's operations.
The company's liquidator is:
Catherine Conneely
KordaMentha
Level 5 Chifley Tower
2 Chifley Square
Sydney, NSW
KONG DEVELOPMENT: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Kong Development Group Pty Ltd and Kong Contracting Pty
Ltd, on Dec. 31, 2021, passed a resolution to voluntarily wind up
the company's operations.
The company's liquidator is:
Peter Anthony Lucas
P A Lucas & Co
Level 4, 232 Adelaide Street
Brisbane, Queensland
SARGON CAPITAL: Court to Hear Case Filed by Founder on Jan. 28
--------------------------------------------------------------
Mirage News reports that the Federal Court of Australia has agreed
to hear a case filed by former Sargon Capital founder Phillip
Kingston, who is seeking an independent investigation by special
purpose liquidators whether a Chinese state-owned conglomerate
deliberately bankrupted an Australian high-profile superannuation
fintech through a complex legal trap.
With more than $55 billion in assets under trusteeship and
supervision and at a reported valuation of A$1 billion, Sargon
Capital was all of a sudden placed into receivership by China
Taiping in January, 2020 over what has since been disputed default
on interests due (about A$1.7 million each in October and December
2019) on HK$500 million investment (promissory notes – worth
about A$81 million at the time of funding), according to the
report.
Mirage News says the Melbourne-based business was ripped apart as a
result of the complex liquidation process which was later described
by former founder and CEO Phillip Kingston as "the commercial
equivalent of setting your house on fire to clean the carpet".
In August, Liberal MP Tim Wilson tabled in federal parliament a
file of documents suggesting a deliberate misdirection of interest
payment to trigger an event of default for Sargon's extraordinary
collapse last year.
In comments to Mirage News, Mr. Kingston welcomed the hearing
scheduled for January 28, doubling down on his previous assertions
that no default subsisted, all interest on the facility was paid up
as agreed and the loan facility itself was not due to mature for
almost another year.
"The documents tabled in Parliament reinforce Sargon's position
that the financing from Taiping Trustees was up to date on interest
obligations at the time China Taiping appointed receivers," the
report quotes Mr. Kingston as saying.
"The documents raise further questions arising from China Taiping's
continued insistence, via their Australian partners Ashurst and
McGrathNicol, that interest was in default, despite what appear to
be their own accounting records, bank statements and internal
emails showing otherwise."
"The goal of the Federal Court application is to enable an
independent liquidator to investigate these matters thoroughly,
including the possibility that China Taiping deliberately
misdirected funds to engineer the appearance of a default. I hope
that this investigation will lead to significant compensation for
Sargon's creditors and shareholders, but ultimately nothing can
undo the damage that's been done."
"The fact that a Chinese state-owned lender was able to appoint
receivers to an Australian company that played a key role in
Australia's retirement savings system, on the basis of nothing but
a bare assertion to their lawyers that interest was in default,
represents an apparent and concerning loophole in our legislation,"
Mr. Kingston added.
The court hearing is scheduled for Jan. 28, 2022, the report
notes.
Despite being incorporated in Hong Kong, China Taiping is a red
chip company 90% owned by China's Ministry of Finance with the rest
held by China's National Social Security Fund, the report notes.
Andrew McCabe and Joseph Hayes of Wexted Advisors were appointed as
administrators of Sargon Capital on March 8, 2020.
=========
C H I N A
=========
BRIGHT SCHOLAR: Moody's Lowers CFR to B2, Outlook Still Neg.
------------------------------------------------------------
Moody's Investors Service has downgraded Bright Scholar Education
Holdings Ltd's corporate family rating (CFR) and senior unsecured
rating to B2 from B1.
The outlook remains negative.
"The downgrade reflects the faster-than-expected discontinuation of
Bright Scholar's kindergartens and school operations, the high
uncertainties over the company's evolving business model and the
resultant weaker business profile and smaller scale," says Shawn
Xiong, a Moody's Assistant Vice President and Analyst.
"The negative outlook reflects the execution risks involved in
restructuring its business, and the time required for the recovery
of revenues in its overseas schools," adds Xiong.
On May 14, 2021, China's State Council announced "the Implementing
Regulations of the Private Education Promotion Law", which came
into effect on September 1, 2021.
On November 15, 2021, Bright Scholar announced that it would hold
an extraordinary general meeting (EGM) of shareholders on 10
December 2021 to discuss and approve a business disposal plan in
response to amendments to the regulation. On December 13, 2021, the
company announced that it had adjourned the EGM of shareholders.
On December 2, 2021, in its fiscal year 2021 results announcement,
Bright Scholar announced that it will classify a list of schools
and kindergartens, over which it had lost control on August 31,
2021, as discontinued operations.
The announcement also stated that Bright Scholar was in
negotiations with the affected entities for possible future
cooperation in the provision of operation services as well as
management services such as consultation for school operations,
catering and accommodation, property management and maintenance,
administrative management, student recruiting and school branding.
RATINGS RATIONALE
Bright Scholar's B2 CFR reflects the company's asset-light business
model of operating its overseas schools, complementary education
services in China and net cash position.
The rating also considers the risks stemming from Bright Scholar's
small scale, its evolving business model and the execution risks
involved in restructuring its business.
For fiscal year ended August 31, 2021, Bright Scholar's continuing
operations contributed around RMB1.4 billion in revenue, while its
discontinued operations contributed around RMB2.3 billion. At the
same time, the company's continuing operations reported a
company-adjusted EBITDA loss of around RMB30 million for FY2021.
The discontinued operations will significantly reduce the company's
scale and shift its business model to providing management services
to the affected schools and kindergartens. These include
consultation for school operations, catering and accommodation,
property management and maintenance, administrative management,
student recruiting and school branding.
Moody's expects Bright Scholar to retain the affected schools and
kindergartens for management services due to their long-standing
relationships with them. However, its contracts with the schools
will be more susceptible to competitive bidding and pricing
pressure over the medium to long term compared with school fees.
Additionally, management services fees, which are received after
services have been rendered, are not as advantageous from a cash
flow perspective compared with school fees, which are collected in
advance.
Bright Scholar has adequate liquidity. It had a cash balance of
around RMB845 million and restricted cash of around 669 million as
of August 31, 2021. Additionally, Bright Scholar had also received
RMB2,029 million due to the company from the affected schools and
kindergartens as of December 21, 2021, according to the company's
results announcement.
As a result, Moody's expects Bright Scholar will have adequate
liquidity to cover its short-term debt of RMB754 million and its
USD300 million bonds due in July 2022.
Bright Scholar's ratings also consider the following environmental,
social and governance (ESG) factors.
From a social perspective, China's recent policy change highlighted
the regulatory risks the company is exposed to, which drove the
rating action.
The company's ownership is concentrated in its founder and
chairman, who held a stake of 77.9% as of 31 August 2020. However,
the company's listed and regulated status tempers this risk.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could return the outlook to stable if (1) Bright Scholar
successfully executes on its business restructuring; (2) the
trajectory of its revenue, earnings and cash flow profile becomes
clearer; and (3) the company maintains a net cash position with
continued funding access.
Moody's could downgrade the ratings if the company is unable to
transition to providing management services to the affected schools
and kindergartens following the disposal; if the company is unable
to access funding; or if it loses its net cash position.
Prolonged uncertainties around the company's management service
contracts will also be negative to the ratings.
Bright Scholar Education Holdings Ltd listed on the New York Stock
Exchange in May 2017. It operates several overseas schools,
for-profit kindergartens in China and offers complementary
education services. The family of Country Garden's founder and
chairman owned a 77.9% stake in Bright Scholar as of August 2020.
CHINA EVERGRANDE: Revises Payment Plan for Wealth Mgt. Investors
----------------------------------------------------------------
South China Morning Post reports that embattled China Evergrande
Group announced a new plan to repay investors in its wealth
management products, in a move designed to reduce the number of
individuals exposed to its debt crisis.
Evergrande Wealth Management said on Dec. 31 it will pay principal
first on the overdue products, with all investors receiving
CNY8,000 (US$1,259) per month until February, SCMP relates.
It replaces the company's previous plan, unveiled in mid-September,
in which it promised to pay 10 per cent of principal and interest
in the month when the products were due, and another 10 per cent in
each quarter after that, SCMP says. It also offered the option for
investors to use the overdue proceeds to obtain houses or parking
spaces and to pay the remaining balance on housing units.
Under the revised plan for the wealth management products, all
interest payments will be paused from Dec. 31, the report says.
The amended plan aims to "take into consideration all the
investors," according to an announcement on the company's website.
It will reveal a new arrangement for future payments in the second
half of March, it said, the report adds.
According to SCMP, the change of strategy came as the world's most
indebted property developer faces a growing tide of debt maturity
deadlines, unnerving tens of thousands of investors.
The dial-back of the earlier plan is seen as an attempt to reduce
the exposure of its debt woes to smaller individual investors, in
line with government guidance, the report states.
The wealth management unit and Evergrande's property subsidiary
raised about CNY200 billion (US$31 billion) in five years through
shell companies, some investors told South China Morning Post
previously, citing legal papers handed to the police in September.
Redemption of investments by 200,000 individuals, estimated at
CNY40 billion in total had been paused by the cash-starved company,
the investors said.
As the return on the investments of the wealth management branch
was "non-ideal", the previous payment proposal was hard to
implement, the company, as cited by SCMP, said.
The Shenzhen-based company is experiencing huge difficulties in
paying back its debt. It did not pay the US$255 million coupons due
on Dec. 28 for its June 2023 and 2025 bonds, Reuters reported on
Dec. 31 citing bondholders. The company has a 30-day grace period
before the bonds are declared defaulted.
Evergrande was labelled as in default by Fitch Ratings and S&P
Global Ratings earlier in December, after it missed the grace
period deadline to pay back another batch of bonds on December 6.
In the coming year, it has US$2 billion of dollar bonds due on
March 23, and US$1.45 billion of dollar bonds due on April 11,
Bloomberg data showed.
Under the revised plan for the wealth management products, previous
payments - including interest - will be counted as payment of the
principal. The company said it will also suspend redemptions for
certain current and former executives and their family members, the
report relays.
In early October, Evergrande had demanded six managers of the
wealth management arm return their redemptions, and reprimanded
them.
The wealth management unit is trying to speed up the sales of its
assets and will use all the funds for repayment of the wealth
management products, SCMP relays.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
13, 2021, Fitch Ratings has downgraded to 'RD' (Restricted
Default), from 'C', the Long-Term Foreign-Currency Issuer Default
Ratings (IDR) of Chinese homebuilder China Evergrande Group and its
subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding
Limited. Fitch has affirmed the senior unsecured ratings of
Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as
well as the Tianji-guaranteed senior unsecured notes issued by
Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'.
The downgrades reflect the non-payment of coupons due Nov. 6, 2021
for Tianji's USD645 million 13% bonds and USD590 million 13.75%
bonds after the grace period lapsed on 6 December. The non-payment
is consistent with an 'RD' rating, signifying the uncured expiry of
any applicable grace period, cure period or default forbearance
period following a payment default on a material financial
obligation.
CHINA: Foreign Debt Edges Up to $2.7 Trillion at End-September
--------------------------------------------------------------
Bloomberg News reports that China added $16.7 billion in foreign
debt in the third quarter of 2021 due in part to increased
purchases of onshore yuan-denominated bonds by foreign investors.
About 47% of China's outstanding debt of $2.7 trillion at the end
of September are medium to long-term obligations, up three
percentage points from the end of June, Wang Chunying, deputy
director and spokesman of the State Administration of Foreign
Exchange, said in a statement released on Dec. 31, according to
Bloomberg.
Bloomberg relates that offshore investors' increased holdings of
onshore bonds reflect China's achievement in opening up its
financial markets and their confidence in the country's economic
outlook, Mr. Wang was quoted as saying.
The authority will continue to closely monitor the scale and
structure of China's foreign debt and guard against risks from
cross-border capital flows, Wang said, citing challenges from the
global pandemic and expected monetary tapering by some developed
economies, Bloomberg adds.
HEYING COMMERCIAL 2021-2: Moody's Rates C-1 Sub. Notes 'B2'
-----------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to four
classes of notes issued by Heying Commercial Factoring 2021-02
All-Trust Receivables Private Asset-Backed Notes (Bond Connect)
Trust.
The complete rating action is as follows:
Deal name: Heying Commercial Factoring 2021-02 All-Trust
Receivables Private Asset-Backed Notes (Bond Connect)
RMB176,000,000 Class A-1 Senior Notes, Assigned Aa1 (sf)
RMB88,000,000 Class A-2 Senior Notes, Assigned Aa1 (sf)
RMB28,000,000 Class B Senior Notes, Assigned A2 (sf)
RMB36,000,000 Class C-1 Subordinated Notes, Assigned B2 (sf)
The RMB18,000,000 Class C-2 Subordinated Notes are not rated by
Moody's.
RATINGS RATIONALE
This securitization transaction is backed by a static portfolio of
auto leases originated and underwritten by All-Trust Leasing Co.,
Ltd. (All-Trust) and verified by Heying Commercial Factoring
(Shenzhen) Co., Ltd. (Heying) in China. All-Trust is the servicer I
and Heying is the servicer II and back-up servicer of the
transaction.
Moody's analysis focused on, among other factors, (i) an evaluation
of the underlying portfolio of auto lease receivables; (ii)
historical performance of auto lease receivables on the
originator's book; (iii) the credit enhancement provided by
subordination, over-collateralization and reserve account; (iv) an
assessment of the financial disruption risk and structural
mitigants, including a hot back-up servicer (BUS), and liquidity
support available in the transaction by way of principal to pay
interest, the reserve account and direct lease payment to the
issuer's account; and (v) the legal and structural aspects of the
transaction.
Moody's has considered, among other things, the transaction's
following key strengths:
(1) Static structure with fast amortization and no revolving
period. As a result, the transaction is only exposed to the default
risk of the leases in the cutoff pool. Furthermore, the transaction
will follow a turbo payment structure, under which all interest and
principal lease payments are used to repay the rated notes in order
of the notes' seniority, from the first monthly payment date until
they are repaid in full.
(2) Strong credit enhancement: The rated notes are protected by the
class of notes that rank junior to each of them,
over-collateralization, a fully-funded non-amortizing cash reserve
account at closing and any excess spread received, which can all be
used to repay the notes' principal by their maturity.
(3) Direct payments into issuer's account: At lease origination,
the lessees have authorized Heying and the trustee to direct debit
lease payments. Lease payments will be paid into the issuer's trust
account directly starting from the closing date. This largely
reduces the risks of lease payments being commingled with
servicers' funds and reduces the risk of cash flow disruption even
if a servicer termination event occurs.
(4) Favorable pool characteristics: The pool of lessees is
granular, with about 4,600 leases with lessees across 31 regions in
China, and leased vehicles from over 100 brands. All the leases are
fully amortizing and do not have residual value risk or balloon
repayments on the last installment date. All the leases have a
contract tenor of no more than three years and are at fixed
interest rates.
Moody's has also considered the following credit challenges:
(1) Operational risk: All-Trust, the originator/servicer I, is
unrated. The servicing disruption risk is largely mitigated by (i)
the appointment of a hot BUS, Heying (unrated), at closing with a
robust preparation for servicing transition, where the BUS is
immediately and automatically obliged to take over all the key
obligations of the nonperforming servicer I; (ii) pre-authorization
by obligors to transfer lease payments directly from obligors'
accounts into the issuer's trust account from the closing date and
(iii) a non-amortizing reserve account fully funded at closing,
together with the lease payments received in the prior month, will
be sufficient to cover at least three months of senior fees,
expenses and notes' interest payments in case of servicer
disruption.
(2) Lease termination risk: If the originator becomes bankrupt and
its bankruptcy administrator decided to terminate the leases early,
the issuer would lose the future lease payments. Lease termination
risk is mitigated in this deal as the originator irrevocably
transferred the ownership of the leased vehicles to the issuer on
the closing date. This removes the bankruptcy administrator's main
incentive to terminate the securitized leases, because the leased
vehicles will not form part of the bankruptcy estate of the
originator and the bankruptcy administrator will not have rights to
repossess the vehicles.
(3) Very limited seasoning of the leases and high exposure to used
vehicle leases: 46% of the pool of leases are secured by used
vehicles. The weighted average seasoning of the pool is short, at
around two months as of the pool cutoff date and around six months
as of the closing date. All the leases in the pool have at least
made one installment.
(4) Class C-1 notes will defer the majority of their interest
payments until the latter part of the transaction, with no interest
on deferred interest payments due on the Class C-1 notes. Only a
small portion of interest due on Class C-1 notes is paid on each
note's payment date. The majority of the interest due on Class C-1
notes is deferred until all the rated notes (including the Class
C-1 notes) are repaid in full and no interest on deferred interest
is due on the Class C-1 notes. Moody's has modeled the cash flows
allocated to the Class C-1 notes accordingly and considered the
absence of interest on deferred interest.
MAIN MODEL ASSUMPTIONS
Moody's has assumed a mean default rate of 8.25% and a portfolio
credit enhancement (PCE) of 32% for the securitized auto lease
receivables pool. A recovery rate of 5% is used as the other main
input for Moody's cash flow model. These assumptions are made
according to (i) Moody's analysis of the characteristics of the
securitized pool, (ii) the historical performance of auto lease
receivables on the originator's book and similar securitization
transactions, (iii) Moody's current expectation of future economic
conditions in China, (iv) the origination history and experience of
the originator, and (v) other qualitative considerations.
Considering all these factors, Moody's lifetime loss expectation
for the pool - portfolio's mean default rate of 8.25% and PCE of
32% - is higher than the average for Chinese auto loan/lease ABS.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the rating of the Class
A-1 notes and the Class A-2 notes include a decrease in the
transaction's financial disruption risk.
Factors that could lead to an upgrade of the rating of the Class B
notes and the Class C-1 notes include a significant,
better-than-expected performance of the pool, with an increase in
the credit enhancement of the notes.
Factors that could lead to a downgrade of the ratings include (1)
an increase in financial disruption risk linked to a deterioration
in the credit quality of transaction's counterparties, and (2) a
decline in the pool's overall performance.
The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. Performance that falls outside the given range may
indicate that the collateral's credit quality is stronger or weaker
than what Moody's had previously anticipated.
The Company
The originator and servicer I, All-Trust Leasing Co. Ltd., is a
non-financial auto leasing company established in 2011 in China. It
is wholly owned by China Grand Automotive Services Grp Co., Ltd.
(China Grand Auto, B1). China Grand Auto is one of the largest
automobile dealers in China and is listed on the Shanghai Stock
Exchange.
The seller, servicer II and back-up servicer, Heying Commercial
Factoring (Shenzhen) Co., Ltd., is a non-financial factoring
company established in 2018 in China. It is ultimately wholly owned
by WeShare Holdings Limited.
XINJIANG GOLDWIND: Moody's Withdraws 'Ba2' Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn Xinjiang Goldwind Science &
Technology Co Ltd's Ba1 corporate family rating.
The rating outlook on Goldwind was stable prior to the withdrawal.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
Goldwind is the largest manufacturer of wind turbine generators
(WTGs) in China. The company develops, manufactures, assembles and
installs WTGs with rated outputs ranging from 1.5 megawatts (MW) to
8.0 MW.
As of the end of June 2021, the company was 12.11% owned by
Xinjiang Wind Power Co, Ltd, which is ultimately owned by the
State-owned Asset Supervision and Administration Commission of the
Xinjiang Uygur Autonomous Region and China Three Gorges Corporation
(A1 stable); 13.50% by Hexie Health Insurance Co., Ltd.; and 10.53%
by China Three Gorges Renewables (Group) Co., Ltd.
XINJIANG GOLDWIND: S&P Withdraws 'BB+' LT Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings has withdrawn its 'BB+' long-term issuer credit
rating on Xinjiang Goldwind Science & Technology Co. Ltd. at the
company's request. The outlook was stable at the time of the
withdrawal.
YANJIYOU: Bookstore Chain Closes Stores Amid Funding Crunch
-----------------------------------------------------------
Shanghai Daily reports that popular bookstore operator Yanjiyou is
reported to have closed stores in several cities, including Beijing
and Shanghai, due to a funding crunch.
From eight stores in Beijing, Yanjiyou has only three still
operating, namely the Wukesong and Guanshe stores, and the
Financial Street (Jinrongjie) store, an officer at the firm's
headquarters told Shanghai Daily on Dec. 31.
Shanghai Daily relates that the Yanjiyou Today Reading store, the
company's first outlet located in Zhongguancun Chuangye Street in
Beijing is reported to have closed long ago.
According to Shanghai Daily, consumers in Shanghai are advised to
visit four stores in Hongqiao hub, Chamtime Square, Bailian Shiji
Shopping Mall and Qibao Powerlong City, which are still opened for
business, a shop assistant at Hongqiao store said.
A search on Dianping.com showed Yanjiyou's stores in Rainbow City
and Hubindao mall in Xintiandi have closed. The Binjiang Vanke
Center store was found to have failed to pay rent, the report
says.
The company once had 10 stores in Shanghai, according to data from
its official website.
In addition, some of Yanjiyou's stores in Chengdu, Guangzhou, Xi'an
and other cities have also been closed or temporarily suspended,
including three in Chengdu IFS, Guangzhou K11 and Xi'an Maike
Center, Shanghai Daily discloses citing media reports.
Amid the waves of closures, Yanjiyou had recently opened a new
store in the northeastern city of Changchun, the report notes.
Founded in 2013, the Chengdu-based company opened its first store
in Beijing in 2014 before expanding rapidly into some 58 stores in
major cities across China. Yanjiyou became popular by combining
books spaces with art displays and a cafe, and also providing
readers with cultural lifestyle products including stationery, home
accessories and drinks.
[*] CHINA: Developers Face US$197BB Challenge in January
--------------------------------------------------------
Bloomberg News reports that China's property developers have
mounting bills to pay in January and shrinking options to raise
necessary funds.
The industry will need to find at least $197 billion to cover
maturing bonds, coupons, trust products and deferred wages to
millions of migrant workers, according to Bloomberg calculations
and analyst estimates. Beijing has urged builders like China
Evergrande Group to meet payrolls by month-end in order to avoid
the risk of social unrest.
Bloomberg says policy for the property market remains tight even
after China in December pivoted toward supporting economic growth.
Future focus is likely to be on ensuring homes are delivered, and
the country's central bank is encouraging financial firms to help
acquisition activity in the real estate sector. Bond payments for
stressed firms are larger this month than November and December
combined.
According to Bloomberg, calculations of January's bill include:
* Worker wages: CNY1.1 trillion ($173 billion), estimate according
to Nomura Holdings Inc. economists
* Dollar bonds: $6.04 billion in principal payments and $1.7
billion in coupons, according to data compiled by Bloomberg
* Onshore notes: CNY37.2 billion in principal payments and 6.6
billion yuan in coupons, Bloomberg-compiled data show
* Trust products: CNY60.2 billion come due, according to data
tracker Use Trust
* There's also interest payments on local and offshore bonds, bills
to suppliers and potential hidden debt
For smaller or struggling firms it's unclear where the cash will
come from, Bloomberg notes. Yields have been so elevated offshore
that the dollar bond market remains effectively shut for
refinancing, a situation that HSBC Holdings Plc analysts predict
will continue for at least another six months. Only a handful of
the strongest private-sector builders have recently tapped the
interbank credit market onshore, while low stock valuations limit
the scope for equity financing.
Generating higher revenue from a weakening property market remains
a challenge. Also, companies like Evergrande have struggled to sell
non-core assets, the report adds.
=========
I N D I A
=========
ADELSON PHARMA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Adelson Pharma Private Limited
Plot No. 84 F/2
Kasturaba Nagar
Hirapura, Ward No.14
Jaipur Rajasthan 302019
Insolvency Commencement Date: December 21, 2021
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: June 19, 2022
Insolvency professional: Mr. Mahendra Prakash Khandelwal
Interim Resolution
Professional: Mr. Mahendra Prakash Khandelwal
202, Prism Tower
Opp. Rajasthan Police
Mukhaliya, Gate No. 2
Lalkothi, Jaipur
Rajasthan 302015
E-mail: mahendra927@gmail.com
adelson.ibc@gmail.com
Last date for
submission of claims: January 4, 2022
ALEPH ENTERPRISES: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aleph
Enterprises (AE) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 7.00 CARE D; ISSUER NOT COOPERATING
Short Term Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 10, 2020, placed
the rating(s) of AE under the 'issuer noncooperating' category as
AE had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. AE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 26, 2021, November 5, 2021, and November 15, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Aleph Enterprises (AE) was established in 1996 as a proprietorship
concern for processing and exports of cashew. Mrs. Leelama John is
the proprietor. The operations are also supported by her husband
Mr. John. M. George. The firm owns three processing units located
in Mampuzha, Puthensagatm and Villur in Kerala with a combined
installed capacity of 2000 MT (80 kg per bag). All the three
processing units are semi-automated. AE also purchases and sells
cashew kernel from other processing units in Kerala when the
particular variety ordered by customers is not available with APE
and to fulfil the demand of customers in a timely manner. Some of
the cashew varieties processed is white wholes (W180, W210, W240,
W280, W320, and W450), butts, splits, pieces, small pieces, baby
bits etc. The products are packed in 25 and 50 pounds packs and
then into cartons and exported depending upon the requirement of
customers.
INFRASTRUCTURE LEASING: CARE Reaffirms D Rating on INR400cr Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Infrastructure Leasing and Financial Services Limited (IL&FS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 400.00 CARE D Reaffirmed
Long Term/
Short Term
Bank Facilities 200.00 CARE D Reaffirmed
Redeemable
Preference
Shares 1,500.00 CARE D (RPS) Reaffirmed
Subordinate Debt 6.85 CARE D Reaffirmed
Non-Convertible
Debentures 9,641.94 CARE D Reaffirmed
Commercial Paper 2,500.00 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers and Detailed description of
the key rating drivers
The reaffirmation of ratings of various debt instruments and bank
facilities of Infrastructure Leasing and Financial Services Limited
(IL&FS) is on account of continued instances of irregularities in
servicing of debt by the company.
Based on the petition filed by the Union of India, the National
Company Law Tribunal (NCLT) vide its order dated October 1, 2018
suspended the erstwhile Board and appointed the New Board proposed
by the Union of India which took charge of the
company from October 04, 2018. Further, vide the order passed by
the NCLT on October 9, 2018, the newly constituted Board of IL&FS
was empowered to replace the directors of subsidiary companies of
IL&FS including IL&FS Financial Services Limited
(IFIN). The new Board of IL&FS has been working on the Resolution
Plan of the IL&FS Group.
The entities in the IL&FS group, have been classified into Indian
and offshore entities. The Indian entities in the IL&FS group have
been classified, by an independent third party, into three
categories based on the basis of a 12-month cash flow-based
solvency test viz 'Green', 'Amber' and 'Red', indicating their
ability to repay both financial and operating creditors, only
operating creditors, or only going concern respectively.
Based on this classification the New Board has put in place a
payment protocol for the IL&FS group during the resolution process.
IFIN is classified as a 'Red' entity, indicating that it is not
able to meet all obligations (financial and operational)
including the payment obligations to senior secured financial
credito INR
The New Board of Directors of the Company, as part of the
resolution process, has submitted several progress reports to the
NCLT, including a framework for a resolution plan and process,
steps undertaken for monetization of assets, appointment of
consultants, and classification of group entities based on their
abilities to meet various financial and operational obligations,
measures for cost optimization and protocol for making payments
beyond certain limits.
As per the disclosures by the company, IL&FS group debt was around
INR99,000 crore and the Board of the company expects recovery of
around INR61,000 crore (i.e. 61%) with the recovery estimates
including both, resolution and liquidation. Till November 2, 2021,
debt of around INR52,200 crore was representing 86% of the overall
estimated resolution value of INR61,000 crore and 53% of total
debt. The group estimates to resolve around INR57,000 crore debt
by March 2022. The aggregate debt addressed of INR52,200 crore
till-date comprises INR14,100 crore of debt discharged; available
cash balance of INR16,700 crore; INR13,200 crore from cases
approved by the Courts, pending transaction closure; and balance
INR8,200 crore from applications filed with courts which are
pending approval. The company has been making some recoveries and
the funds are used for making payments are made mostly to meet
operational expenses to ensure the going concern status of the
company and no money has been distributed to the creditors yet and
the funds are maintained in FD & T-Bills under lien/favour of
Creditors to be distributed as per NCLT/NCLAT directive, under
group resolution.
Rating Sensitivities
Positive Factors - Factors that could lead to positive rating
action/upgrade:
* Timely servicing of debt for a period of three consecutive
months
Negative Factors- Factors that could lead to negative rating
action/downgrade:
* Not Applicable
Liquidity: Poor
The liquidity profile of the company is severely constrained
leading to the company continuing to default on its debt
obligations
IL&FS is an infrastructure development and finance company promoted
by the Central Bank of India (CBI), Housing Development Finance
Corporation (HDFC) and Unit Trust of India (UTI). IL&FS was
established with twin mandates of providing financial services and
to develop infrastructure projects under a commercial format. The
shareholding of the company is held by Life Insurance Corporation
of India (LIC) – 25.3%, Orix Corporation, Japan – 23.54%, IL&FS
Employee Welfare Trust – 12.00%, Abu Dhabi Investment Authority
(ADIA) – 12.56%, Central Bank of India (CBI)– 7.67% and State
Bank of India (SBI) – 6.42%. IL&FS published its financial
results for FY19 (refers to period from April 01 to March 31) where
it reported net loss of INR22,401 crore (standalone) (under Ind
AS). The recasting of financials from FY14 to FY18 following order
from NCLT is in progress for IL&FS, IFIN and IL&FS Transportation
Network Limited (ITNL) is in progress.
KOSCA DEP: CRISIL Assigns B- Rating to INR5cr Proposed LT Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the
long-term bank facility of Kosca Dep India Private Limited
(KDIPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 5 CRISIL B-/Stable (Assigned)
The rating reflects KDIPL's susceptibility to risks inherent in
tender-based business, modest scale of operations and weak
operating efficiency. These weaknesses are partially offset by the
extensive experience of the promoters in the interior designing
business.
Key rating drivers and detailed description
Weaknesses:
* Modest scale of operation: Scale of operations has remained
modest as reflected in revenue of INR20 crore for fiscal 2021. The
small scale constrains business risk profile given the intense
competition and dependence on winning tenders.
* Weak operating efficiency: The small scale of operations has
limited bargaining power of KDIPL, thereby restricting its
operating flexibility. KDIPL incurred operating loss in fiscal 2021
and is likely to do so in fiscal 2022 as well.
* Susceptibility to risks inherent in tender-based business:
Revenue and profitability depend entirely on the ability to win
tenders Also, intense competition requires aggressive bidding to
get contracts, which restricts the operating margin. Given the
cyclicality inherent in the industry, ability to maintain
profitability through operating efficiency is critical.
Strength:
* Extensive industry experience of the promoters: The promoters
have experience of over 20 years in providing interior designing
services across Asia and have a major presence in South Korea.
Also, the promoters have longstanding association with large
players such as Samsung.
Liquidity: Poor
The company does not have any long-term debt or working capital
limit. Working capital requirement is largely met through advances
from customers.
Outlook: Stable
CRISIL Ratings believes KDIPL will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating sensitivity factors
Upward factors:
* Sustained increase in revenue and operating margin of 4-5%
leading to higher cash accrual.
* Improvement in the financial risk profile.
Downward factors:
* Decline in revenue by more than 20% and in profitability
* Substantial increase in working capital requirement weakening
liquidity and financial risk profile
Incorporated in 2017 and based in Uttar Pradesh, KDIPL provides
interior design services to factories across India. The company is
promoted by Mr. Soukchoun Nam and Mr. Young Kim.
KRISAM AUTOMATION: CRISIL Lowers Rating on LT/ST Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Krisam Automation Private Limited (KAPL) to 'CRISIL D/CRISIL D'
from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4+')
The downgrade reflects instances of delay in repayment of the term
loan interest. The delay was due to weak liquidity on account of
stretched receivables.
The rating also factors in weak financial risk profile and working
capital-intensive operations. These strengths are partially offset
by extensive experience of promote INR
Key Rating Drivers & Detailed Description
Weakness:
* Weak Financial Risk Profile: Financial risk profile is weak
marked by leveraged capital structure and moderate debt protection
metrics. The company relies significantly on working capital loans
to meet its working capital requirements which has led to high
gearing. Debt protection metrics were also have remained moderate.
* Working capital-intensive operations: Operations are capital
intensive marked by stretched debtors and high inventory levels.
However, the same was supported by extended credit support from
creditors.
Strengths:
* Extensive experience of promoters: The promoters' experience of
more than two decades, their strong understanding of local market
dynamics and healthy relationships with suppliers and customers
should continue to support the business.
Liquidity: Poor
Liquidity is poor, as reflected in the delays in debt servicing in
the month of November and December 2021 due to poor liquidity on
account of stretched receivables. The working capital limit has
been fully utilized in the past 6 months.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least 90 days
Improvement in the working capital cycle
KAPL was established initially as a proprietorship concern named
Krisam Automation (KA) by Mr. T V Ravi Kumar in 1995. Later in
2013-14 (refers to financial year, April 1 to March 31), the
existing business of KA was taken over by KAPL. The company
manufactures capital equipment used in the automation of assembly
systems, testing systems, and laser welding, cutting, and marking
applications.
MASS-TECH CONTROLS: CRISIL Cuts Rating on INR4cr Cash Loan to B
---------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Mass-Tech Controls Private Limited (MTCPL) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable', while reaffirming its 'CRISIL
A4' rating on the short-term bank facilities of the entity.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Cash Credit 4 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Inland/Import 1.25 CRISIL A4 (Reaffirmed)
Letter of Credit
Term Loan 0.20 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects weakening of liquidity profile as indicated
by insufficient cash accrual against the sizeable repayment
obligation and consistently high bank limit utilization due to
elongated working capital cycle.
The ratings continue to reflect modest scale of operations, working
capital-intensive operations and below-average financial risk
profile. These weaknesses are partially offset by extensive
experience of the promoters in the electrical tools manufacturing
industry.
Analytical Approach
Unsecured loans (INR2.12 crore as on March 31, 2021) extended by
the promoters have been treated as neither debt nor equity as these
loans are estimated to be retained in the business over the medium
term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: The electrical components
manufacturing industry is highly fragmented, and the consequent
intense competitive pressure may continue to constrain pricing
power with customers and suppliers, and scalability. Revenue was
modest at INR29.72 crore in fiscal 2021. Going forward, it is
expected to be on a similar level on account of subdued demand due
to pandemic.
* Working capital-intensive operations: Gross current assets were
high at 331 days as on March 31, 2021, driven by receivables of 71
days (high credit offered to customers) and inventory of 234 days
(as a huge stock of imported components has to be maintained). This
leads to high dependence on credit from suppliers, payables stood
at 281 days as on March 31, 2021.
* Below-average financial risk profile: Financial risk profile is
constrained by high debt; however, it will be partially supported
by the absence of any large, debt-funded capital expenditure
(capex). Networth was low at INR6.03 crore as on March 31, 2021,
with total outside liabilities to adjusted networth ratio high at
3.45 times. Debt protection metrics were subdued, with interest
coverage and net cash accrual to total debt ratios of 1.62 times
and 0.11 time, respectively, for fiscal 2021. Financial risk
profile is expected to remain constrained over the medium term.
Strength:
* Extensive experience of promoters: The promoters have been in the
electrical components manufacturing industry for over two decades;
their strong understanding of market dynamics and healthy
relationships with suppliers and customers should continue to
support the business. Clientele comprises reputed players such as
Reliance Industries Ltd, Bharat Heavy Electrical Ltd and NTPC Ltd.
Liquidity: Poor
Expected cash accrual for fiscals 2022 and 2023 would be
insufficient to meet the yearly term debt obligation of INR1.77
crore and INR1.23 crore, respectively. Fund-based limit of INR10
crore was extensively utilized, at 97% on average over the 12
months through August 2021, with instances of over utilization.
Timely, need-based funds extended by the promoters will partially
aid financial flexibility.
Outlook: Stable
CRISIL Ratings believes MTCPL will continue to benefit from
extensive experience of its promote INR
Rating Sensitivity factors
Upward factors:
* Revenue growth and steady operating margin, leading to cash
accrual of more than INR2 crores
* Significant improvement in the working capital cycle below 250
days
Downward factors:
* Decline in revenue and operating margin, resulting in
lower-than-expected cash accrual
* Further deterioration in working capital cycle, leading to bank
limit utilization of above 100%.
MTCPL was incorporated in 1993 by Mr. Subash Patil and Ms Smita
Patil. The company assembles and designs direct current power
systems, battery chargers, convertors, and low-voltage switch gear
and control panels used in industrial setups. The manufacturing
unit is at Jalgaon, Maharashtra.
NAYAAGARH SUGAR: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Nayaagarh Sugar Complex Limited
Plot No. 191, 4th Floor
Kharvel Nagar, Unit-III
Bhubaneswar, Odisha 751001
Insolvency Commencement Date: December 22, 2021
Court: National Company Law Tribunal, Cuttack Bench
Estimated date of closure of
insolvency resolution process: June 20, 2022
Insolvency professional: Mr. Devendra Umrao
Interim Resolution
Professional: Mr. Devendra Umrao
B-43A, First Floor
Kalkaji
New Delhi 110019
E-mail: devumraoibc@gmail.com
- and -
107, 1st Floor
New Delhi House
Barakhamba Road
Connaught Place
New Delhi 110001
E-mail: cirp.nscl@gmail.com
Last date for
submission of claims: January 5, 2022
NIMITAYA HOTEL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Nimitaya Hotel & Resorts Limited
Registered office:
6 No. Golden Gate
Westend Greens, Rajokari
New Delhi 110038
Principal office:
Radisson Hotel, Sector 49
Gurugram, Haryana 122018
Insolvency Commencement Date: December 24, 2021
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: June 22, 2022
Insolvency professional: CA Navneet Gupta
Interim Resolution
Professional: CA Navneet Gupta
#1598, Level 1
Sector 22-B
Chandigarh 160022
E-mail: navguptaca@gmail.com
ip.nimitaya@gmail.com
Last date for
submission of claims: January 10, 2022
OMKARA VIJAYALAKSHMI: CRISIL Assigns B+ Rating to INR15cr Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' ratings to the
bank facilities of Omkara Vijayalakshmi Strips Private Limited
(OVSPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B+/Stable (Assigned)
Proposed Fund-
Based Bank Limits 3 CRISIL B+/Stable (Assigned)
Term Loan 2 CRISIL B+/Stable (Assigned)
The rating reflects OVSPL's nascent stage of operations,
susceptibility to volatility in raw material prices and below
average financial risk profile owing to a leveraged capital
structure. These weaknesses are partially offset by the extensive
industry experience of its promote INR
Key Rating Drivers & Detailed Description
Weaknesses:
* Nascent stage of operations: Since the firm started commercial
operations in May 2021, it has limited track record. Consequently,
scalability is constrained, as reflected estimated revenue of INR18
crore for FY 2022. Nascent and limited capacities will continue to
limit scalability over the medium term.
* Susceptibility to volatility in raw material prices: As raw
material (steel) accounts for 60% of production cost, the operating
margin will remain exposed to sharp volatility in raw material
prices. Operations are non-integrated and restricted to the
downstream stage of the steel value chain. The margin is also
susceptible to changes in market prices according to demand-supply
situations.
* Below average financial risk profile: The financial risk profile
is expected to remain below average during the initial years of
operations, owing to small scale and modest net worth resulting in
high gearing and weak debt protection metrics.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 10 years in steel 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 with month end average utilization
of around 95.5 percent for the seven months ended November 2021.
Cash accruals are expected to be over INR0.4-0.9 crore which are
just adequate against term debt obligation of INR0.4-0.9 crore over
the medium term.
Current ratio is expected to be moderate at 1.06 times as on March
31, 2022.
Outlook: Stable
CRISIL Ratings believes OVSPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Ramp up in operations resulting in significant revenue and
profitability
* Moderate capital structure with gearing less than 3 times and
improvement in overall financial risk profile
Downward factors:
* Generates significantly low cash accruals during its initial
phase of operations
* Substantial increase in its working capital requirements thus
weakening its liquidity & financial profile
OMSPL was incorporated in 2017. It has recently set up steel pipe,
galvanized pipes, PPGL roofing sheet manufacturing unit at
Vijayawada-Andhra Pradesh. OMSPL has started its commercial
operation from May 2021 and promoted by Mr. Bhanu Prasad Kota and
family members.
P.D. BAJORIA: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of P.D.
Bajoria Tea And Agro Products Private Limited (PBTAPPL) continues
to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.48 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.35 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 14, 2020, placed
the rating(s) of PBTAPPL under the 'issuer non-cooperating'
category as PBTAPPL had failed to provide information for
monitoring of the rating and had not paid the surveillance fees for
the rating exercise as agreed to in its Rating Agreement. PBTAPPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 30, 2021, November 9, 2021, November 19,
2021.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
P.D. Bajoria Tea and Agro Products Pvt Ltd. (PBTAPPL) was
incorporated in March 2010 to initiate a tea processing business at
Siliguri in West Bengal. After remaining dormant for over six
years, during FY16, the company has installed a tea manufacturing
unit at Jaipaiguri in West Bengal with installed capacity of
12,00,000 kg per annum. The commercial operation has started from
November 2016. Currently the company is engaged in procuring
processed tea leaf from local tea plants. The day-to-day affairs of
the company are looked after by Mr. Vikash Agarwal, director, with
the help of the other directors and a team of experienced
personal.
RAJ ELECTRICALS: CARE Cuts Rating on INR2.25cr LT Loan to B-
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Raj
Electricals (RE), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.25 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Long Term/Short 6.50 CARE B-; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and revised from
CARE B+; Stable/CARE A4
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 11, 2021, placed the
rating(s) of RE under the 'issuer noncooperating' category as RE
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. RE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 27, 2021, December 7, 2021, December 17, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of RE have been revised
on account of non-availability of requisite information.
Jaipur-based (Rajasthan) RE was formed in 2011 by Mr. Anurag Sharma
as a proprietorship concern. RE is registered as an 'A' class
(second highest in the scale of AA to E) contractor with Rajasthan
State Electricity Boards. It executes electrical contracts for
Jaipur Vidyut Vitran Nigam Limited (JVVNL), Jodhpur Vidyut Vitran
Nigam Limited (JdVVNL), Ajmer Vidyut Vitran Nigam Limited (AVVNL)
and contract work includes erection of power line with material and
without material. It also undertakes the turnkey projects given by
the power department where work includes survey, erection of power
lines, supply of material (transformer, power pole, power lines).
RENUKA CONSTRUCTIONS: CARE Cuts Rating on INR20cr LT Loan to B-
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Renuka Constructions (RC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 24, 2020, placed
the rating(s) of RC under the 'issuer non-cooperating' category as
RC had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. RC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 9, 2021, November 19, 2021, November 29, 2021.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The Ratings assigned to the bank facilities of RC have been revised
on account of non-availability of requisite information.
Renuka Construction (RC) is a proprietorship firm set up by Mr.
Babu Mhetre in 1998 in Pune. The firm has been carrying out
development of residential and commercial projects in Pune majorly
focused in the Pimpri-Chinchwad area. The firm has now undertaken
development of a residential project "Renuka Glorify" in Ravet
which is on the outskirts of Pune.
ROMESH POWER: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Romesh Power Products Private Limited
203, Tikkar Mal Lane
Kishanpole Bazar
Jaipur 302001
Rajasthan, India
Insolvency Commencement Date: December 21, 2021
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: June 19, 2022
Insolvency professional: Mr. Rajendra Singh Sunda
Interim Resolution
Professional: Mr. Rajendra Singh Sunda
22/9/3, Swaran Path
Mansarovar, Jaipur 302020
E-mail: rssunda@gmail.com
- and -
B-30, Hill View Apartment
Vasant Vihar, New Delhi 110057
E-mail: cirprpp@gmail.com
Last date for
submission of claims: January 4, 2022
S A MULLA: CARE Keeps C Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of S A Mulla
(SAM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 4, 2020, placed the
rating(s) of SAM under the 'issuer noncooperating' category as SAM
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SAM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 20, 2021, October 30, 2021 and November 9, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of SAM have been
revised on account of non-availability of requisite information.
S A Mulla was incorporated as a Partnership firm by Mr. Saifuddin
Appalal Mulla and Mr. Moinuddin Saifuddin Mulla in 2014. The firm
is engaged in the business of civil construction such as laying of
roads and construction of buildings and bridges in the states of
Karnataka and is registered contractor with Public Works Department
(PWD) and Road and Building Departments (R&B), Karnataka.
S.K. RICE: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of S.K. Rice
industries (SRI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain under
ISSUER NOT COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 9, 2020, placed the
rating(s) of SRI under the 'issuer non-cooperating' category as SRI
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SRI continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 25, 2021, November 4, 2021 and November 14, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
S.K. Rice Industries was Established in the year 2008 as a
partnership firm. The firm is engaged in the milling of paddy for
producing raw rice. SRI is promoted by Mr. Syed Altaf Ahmed
(partner), Mr. Syed Israr Ahmed (Partner) and Mrs. Syed Rehana
(Partner). Mr. K. Syed Altaf Ahmed has over two decades of
experience in rice milling industry as he was in the same business
with his father. The rice mill is located at Davangere district,
Karnataka.
SANWARIYAJI BUSINESS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Sanwariyaji Business Venture Private Limited
59, Mansarovar Colony
Kalwar Road, Jhotwara
Jaipur 302012 Rajasthan
Insolvency Commencement Date: December 23, 2021
Court: National Company Law Tribunal, Jaipur Bench
Estimated date of closure of
insolvency resolution process: June 21, 2022
Insolvency professional: Prashant Agrawal
Interim Resolution
Professional: Prashant Agrawal
P. Agrawal & Associates
F-106, I Flr.
Sumer Complex, Gautam Marg
C-Scheme, Jaipur
Rajasthan 302001
E-mail: ippagrawal@gmail.com
cirp.sanwariyaji@gmail.com
Classes of creditors: Home Buyers
Insolvency
Professionals
Representative of
Creditors in a class: Mr. Brij Kishore Sharma
AB-162, Vivekanand Marg
Nirman Nagar, Near DCM
Ajmer Road, Jaipur 30219
E-mail: bksharma162@gmail.com
Mr. Shyam Sundar Maheshwari
35, Flat No. F-2
Shanti Vihar, Kalyan Nagar
Tonk Road, Jaipur
Rajasthan 302029
E-mail: mhswr.shyam@gmail.com
Mr. Rajneesh Singhvi
36A, Suraj Nagar (East)
Civil Lines
Jaipur 302006 Rajasthan
E-mail: rajneesha1@gmail.com
Last date for
submission of claims: January 6, 2022
SHRIPROP DWELLERS: CRISIL Keeps D Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings has continued its rating on the non-convertible
debentures (NCDs) of Shriprop Dwellers Private Limited (SDPL) at
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible 50 CRISIL D (ISSUER NOT
Debentures- COOPERATING)
Series II
Non Convertible 21.7 CRISIL D (ISSUER NOT
Debentures- COOPERATING)
Series I
CRISIL has been following up with SDPL for getting information
through letter and emails, dated September 27, 2021, and November
29, 2021 among others, apart from telephonic communication.
However, the issuer has remained non-cooperative.
'Investors, lenders, and all other market participants should
exercise due caution while using 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-cooperation 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 the company, which restricts
CRISIL Ratings ability to take a forward-looking view on its credit
quality. The rating action on SDPL is consistent with 'Assessing
Information Adequacy Risk.' However, investor as well as management
have indicated that all NCDs issued by the company have been
redeemed. Nevertheless, documentation regarding redemption of NCDs
is in process of being shared and CRISIL Ratings will take
appropriate rating action once it is received.
Therefore, based on the last available information, CRISIL Ratings
has continue its rating on the non-convertible debentures (NCDs) of
SDPL at 'CRISIL D Issuer Not Cooperating'
Analytical Approach
CRISIL Ratings has evaluated the project risk for the entire
Shriram Summitt project and has used that as a surrogate for the
project risk of Shriprop. This is because Shriprop houses only
units from Shriram Summitt.
Shriprop, a special-purpose vehicle incorporated on August 18,
2014, is engaged in the real estate business, and holds units in
SPPL's Shriram Summitt project. Shriprop funded the purchase of
these units through inter-corporate deposits (ICDs) from Piramal
Estate Private Limited; the ICDs were subsequently replaced with
NCDs from Piramal Estate Pvt Ltd. The NCDs are to be serviced from
the proceeds of the sale of Shriprop's share of units in Shriram
Summitt.
Incorporated in 1995, SPPL is part of the Shriram group, and has
projects in Bengaluru, Chennai, Vishakhapatnam, Coimbatore,
Hyderabad and Kolkata. It develops residential and commercial real
estate projects, especially integrated townships, commercial spaces
and SEZs.
SHYAM MILLERS: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Shyam
Millers Private Limited (SSMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE B-; ISSUER NOT COOPERATING;
Facilities Rating continues to remain under
ISSUER NOT COOPERATING category
Short Term Bank 0.05 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 24, 2020, placed
the rating(s) of SSMPL under the 'issuer non-cooperating' category
as SSMPL had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SSMPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 9, 2021, November 19, 2021, November 29, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SSMPL, incorporated in February 2005 by Mr Manoj Kumar Fogla and Mr
Manish Kumar Agarwal based out of Purulia, West Bengal is engaged
in the processing and milling of rice with an installed capacity of
25,920 Metric Tonne Per Annum (MTPA). The milling unit of the
company is located at Purulia, West Bengal.
SOIL AND ENVIRO: CARE Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Soil And
Enviro Industries Private Limited (SEIPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/Short 1.50 CARE B; Stable/CARE A4;
Term Bank ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 4.00 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 3, 2020, placed the
rating(s) of SEIPL under the 'issuer non-cooperating' category as
SEIPL had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SEIPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 19, 2021, October 29, 2021, November 8, 2021.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2004, Soil and Enviro Industries Private Limited
(SEIPL) was promoted by Mr. Atit Kumar Talukdar, Mr. Tapa Talukdar
and Mr. Asit Talukdar. Since its inception, the company has been
engaged in design, engineering, fabrication, erection,
manufacturing, supply, installation and maintenance of air
pollution control equipment & systems and executes projects on
turnkey basis. The manufacturing facilities of the company are an
ISO 9001:2015 certified which enables wide acceptance of its
products in the market. In the past the company has executed
projects for foreign clients mainly in Thailand, Saudi Arabia,
Kenya and Uganda. The domestic client of the company includes
reputed names like Steel Authority of India Ltd., Exide Industries
Ltd., Drinking Water & Sanitation Department, Government of
Jharkhand, The West Bengal, Power Development Corporation Ltd.;
Bharat Aluminium Company Ltd. (BALCO).
SUJYOT INFRASTRUCTURE Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Sujyot Infrastructure Private Limited
F/103, Satellite Center
Opp. Satellite Tower
Premchand Nagar Road
Vastrapur, Ahmedabad
GJ 380015
IN
Insolvency Commencement Date: December 22, 2021
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: June 19, 2022
(180 days from commencement)
Insolvency professional: Parag Sheth
Interim Resolution
Professional: Parag Sheth
404, Sachet-II
Opp. GLS University
Maradia Plaza Lane
C.G. Road
Ahmedabad 380006
E-mail: pksheth@hotmail.com
cirp.sujyot@gmail.com
Last date for
submission of claims: January 12, 2022
SWADESHI MARKETING: CARE Keeps B Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Swadeshi
Marketing Private Limited (SMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 24, 2020, placed
the rating(s) of SMPL under the 'issuer non-cooperating' category
as SMPL had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SMPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 9, 2021, November 19, 2021, November 29, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kolkata based Swadeshi Marketing Private Limited (SMPL) was
incorporated in 1978 to initiate a trading business. The company is
currently managed by Mr. Sanjay Rasiwasia and Mr. Debashis Kundu
based out of West Bengal. The company mainly deals in base oils,
bitumen, slack wax and polyvinyl (PVC) resins, ceramic items, etc.
which are procured from Malaysia, Taiwan, China and other European
countries. The company sells its products across India through
dealers as well as direct sales.
UTKAL GALVANIZERS: CRISIL Hikes Rating on INR2.50cr Loan to B
-------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Utkal Galvanizers Limited
(UGL) to '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 the long term bank
facilities of UGL from 'CRISIL D Issuer Not Cooperating' to 'CRISIL
B/Stable' and reassigned its 'CRISIL A4' rating to short-term bank
facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.50 CRISIL B/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Proposed Fund- 2.88 CRISIL B/Stable (Migrated
Based Bank Limits from 'CRISIL D ISSUER NOT
COOPERATING')
Rupee Term Loan 3.97 CRISIL B/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Short Term Loan 2.00 CRISIL A4 (Reassigned)
Term Loan 4.65 CRISIL B/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
The rating migrated reflects timely regularisation of CC limits
over the last 3 months ended November 2021 supported by improvement
in liquidity and also timely repayment of term loans. Improvement
in liquidity is supported by improvement in order flow and
additional bank funding in the form of Emergency Credit Line
Guarantee Scheme (ECLGS).
The rating reflects UGL's presence exposure to intense competition,
modest scale of operation and working capital intensive operations.
These weaknesses are partially offset by its extensive industry
experience of the promote INR
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operation: UGLs business profile is constrained
by its scale of operations in the intensely competitive
transmission towers industry. UGLs scale of operations will
continue limit its operating flexibility.
* Working capital intensive operations: Gross current assets were
at 245-530 days over the three fiscals ended March 31, 2021. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 288 days as on March 31, 2021. Its's large
working capital requirements arise from its high debtor and
inventory levels. It is required to extend long credit period.
Furthermore, due to its business need, it holds large work in
process & inventory.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 54 years in transmission towe INR This
has given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and custome
INR
Liquidity: Poor
Bank limit utilisation is high at around 100 percent for the past
eleven months ended November 2021. Cash accrual are expected to be
over INR1.1 crore to 2.1 crore which are sufficient against term
debt obligation of INR1-2 crore over the medium term. In addition,
it will be act as cushion to the liquidity of the company. Current
ratio is healthy at 1.82 times on March31, 2021.
Outlook: Stable
CRISIL Ratings believe UGL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward factors:
* Improvement in financial profile marked by significant reduction
in debt leading to significant cushion between net cash accrual &
repayment.
* Sustained improvement in scale of operation by 25% and sustenance
of operating margin, leading to higher cash accruals
Downward factors:
* Decline in operating profitability by over 350 basis points on a
sustainable basis
* Witnesses a substantial increase in its working capital
requirements thus weakening its liquidity & financial profile
Incorporated in 1979, UGL undertakes designing, galvanising, and
fabrication of transmission line tower structures, substation
structures, transmission line poles, street lighting poles, and
high masts for lighting. It was initially promoted by Odisha-based
Mr. K K Mohanty, and was acquired by Kolkatabased Mr. Rajesh
Agarwal in 2016 from the State Bank of India against a one-time
settlement. Mr. Agarwal, Mr. Tushar Kanta Sahoo, Mr. Nandan
Mohanty, and Ms Sudha Agarwal are the directors of the company.
VINOTH DISTRIBUTORS: CRISIL Cuts Rating on INR13cr Loans to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Vinoth Distributors (VD) to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Downgraded from
'CRISIL B/Stable')
Term Loan 1 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects VD's poor liquidity, as evidenced by
instances of delay in servicing of its debt obligations for the
term loan facility in the month of November 2021 as account has
classified as SMA 1 category.
The rating also reflects its modest scale of operations and
below-average financial risk profile, marked by small net worth,
high external indebtedness, and weak debt protection metrics. These
rating weaknesses are partially offset by the extensive experience
of VD's promoters in the agricultural commodities industry.
Analytical Approach:
Unsecured loan from partners of INR2.17 crore, outstanding as on
March 31, 2021, have been treated as neither debt nor equity as
they are expected to remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: VD has a modest scale of operations,
with a turnover at around INR40.89 crore in Fiscal 2021 despite
being in operations for close to a decade. The modest scale limits
the advantages of economies of scale available to players with
larger volumes. Furthermore, the rice industry is fragmented and
there is increasing competition from several domestic as well as
international players. Besides, the resilience of a player with a
larger scale of operations to external shocks is significantly
higher than a player with a smaller scale of operations.
* Below average financial risk profile: VD's financial risk profile
is marked by a small net worth, high total outside liabilities to
tangible net worth (TOLTNW), and subdued debt protection metrics.
VD's net worth as on March 31, 2021, was INR6.70 crore. The net
worth has remained constrained, largely on account of VD's modest
scale of operations and low profitability. Consequently, its TOLTNW
remains high at 2.40 times as on March 31, 2021. Interest coverage
was subdued at 1.25 times during the fiscal 2021 and is expected to
remain weak due over the medium term
Strength:
* Extensive experience of promoters in rice trading industry: The
firm is promoted by Mr. K.R. Padmanabhan and his family membe INR
In 2013, Mr. Vinoth Kumar took the partnership interest from Mr.
K.R. Padmanabhan. The promoters have close to three decades of
experience in this industry which has enabled the firm to establish
strong relationship with many clients.
Liquidity: Poor
There has been an instance of delay in repayment of term loan in
the month of November 2021 and account has classified as SMA 1
category. Also, cash credit limit was fully utilized during the
past twelve months ended November 2021 further constraining its
liquidity.
Rating Sensitivity factors
Upward factors:
* Timely debt repayment with a track record of 90 days
* Efficient working capital management leading to moderation in
bank limit utilization
Set up in 2009 as a partnership firm and promoted by Mr. K R
Padmanabhan and his family members, VD trades in rice. The firm is
a distributor of Kohinoor Specialty Foods India Pvt Ltd. In 2013,
Mr. Vinoth Kumar was inducted as a partner in the firm. Mr. Kumar
oversees the firm's day-to-day operations.
WORLD WINDOW: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: World Window Impex India Private Limited
F-35/4, Ground Floor
Okhla Industrial Area
Phase-II, New Delhi 110020
Insolvency Commencement Date: December 23, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: June 20, 2022
Insolvency professional: Mr. Sanjay Gupta
Interim Resolution
Professional: Mr. Sanjay Gupta
Primus Insolvency Resolution and
Valuation Pvt. Ltd.
C-4-E/135 Janak Puri
New Delhi 110058
E-mail: sanjay@sgaindia.in
wwipl@primusresolutions.in
Last date for
submission of claims: January 7, 2022
===============
M A L A Y S I A
===============
AIRASIA GROUP: Receives MYR975 Million Cash Injection
-----------------------------------------------------
The Star reports that AirAsia Group Bhd's financial health seems
less life-threatening now that it has an injection of about MYR975
million cash into the company.
The airline group completed its rights issue on Dec. 30, 2021,
raising MYR974.5 million, to support its overall fundraising
strategy.
This includes the full subscription for their entitlements by its
two largest shareholders Tony Fernandes and Kamarudin Meranun,
which would cost them MYR257.3 million, The Star relates.
With the additional cash of MYR975 million on top of the earlier
MYR500 million loan from Danajamin, MYR300 million from Sabah
Development Bank and MYR336.5 million raised via private placement,
the cash crunch resulting from the lockdown and the pandemic is no
longer as alarming, TA Research said.
It believes this new capital can help the group weather through the
darkness until it sees lights at the end of the tunnel, the report
states.
For the third quarter of financial year 2021 (FY21), the group
incurred MYR676.9 million in core losses compared to a MYR867.4
million loss in the third quarter of FY20, The Star discloses.
For the first nine months of 2021, its core loss was at MYR2
billion versus MYR2.6 billion reported a year earlier.
"Will AirAsia be classified as a PN17 company after the 18-month
relief period granted by Bursa Malaysia due in January 2022? We
view that chances for AirAsia to reverse its MYR5.9 billion deficit
in shareholders' funds by then are slim.
"Having said that, we do not think this would be disastrous as
AirAsia has been sorting its way out of the woods," TA Research
said in a report.
About AirAsia
AirAsia Berhad provides low-cost air carrier service. The company
provides services on short-haul, point-to-point domestic and
international routes. AirAsia, headquartered in Malaysia, operates
from hubs in Malaysia, Thailand, Indonesia, Philippines and India.
As reported in the Troubled Company Reporter-Asia Pacific on July
9, 2020, auditor Ernst & Young said the carrier's ability to
continue as a going concern may be in "significant doubt." In a
statement to the Kuala Lumpur stock exchange, Ernst & Young said
AirAsia's current liabilities already exceeded its current assets
by MYR1.84 billion at the end of 2019, a year when it posted a
MYR283 million net loss, Bloomberg News disclosed. That was before
the coronavirus crisis, which has further hit the carrier's
financial performance and cash flow.
SARAWAK CABLE: Triggers Criteria But Won't be Classified as PN17
----------------------------------------------------------------
theedgemarkets.com reports that Sarawak Cable Bhd (SCB) has
triggered the suspended criteria of Practice Note 17 (PN17), but
will not be classified as a PN17 company, thanks to Bursa
Malaysia's relief measures.
In a filing, the cable manufacturer said it triggered the PN17
criteria as its shareholders' equity on a consolidated basis is 50%
or less of its share capital, based on its financial results for
the quarter ended Nov. 30, 2021 announced on Dec. 30, according to
theedgemarkets.com.
SCB added that its external auditor, Ernst & Young PLT, had
highlighted a material uncertainty related to its going concern in
the group's financial statements for the financial year ended Dec
31, 2020, and as such, the group has triggered the PN17 suspended
criteria, theedgemarkets.com relays.
SCB will however not be classified as a PN17 company, in line with
Bursa Malaysia's relief measures for the period from July 1 to Dec.
31, 2021, under which affected groups will be accorded relief from
complying with the PN17 obligations for a period of 18 months.
"SCB will reassess its condition and announce whether it continues
to trigger any of the PN17 suspended criteria upon the expiry of
the 18 months," it added.
For the quarter ended Nov. 30, 2021, SCB reported a net loss of
MYR11.34 million with a revenue of MYR175.08 million,
theedgemarkets.com discloses. The quarter is classified as "other",
as the group had recently changed its financial year end from Dec.
31 to May 31.
Sarawak Cable's share price closed unchanged at 30.5 sen on Dec.
30, valuing the group at MYR119.73 million. The stock has fallen
32.22% since the start of this year, the report notes.
=================
S I N G A P O R E
=================
ENTAIL GLOBAL: Creditors' Proofs of Debt Due on Jan. 31
-------------------------------------------------------
Creditors of Entail Global Macro Economic Fund VCC and Entail
Global Macro Economic Fund – USD (SF-1), which are 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's liquidators are:
Goh Yeow Kiang Victor
Khor Boon Hong
C/o Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
KHL MARKETING: Court to Hear Wind-Up Petition on Jan. 14
--------------------------------------------------------
A petition to wind up the operations of KHL Marketing Asia-Pacific
Pte Ltd will be heard before the High Court of Singapore on Jan.
14, 2022.
Kim Hup Lee & Co (Pte.) Ltd filed the petition against the company
on Dec. 13, 2021.
The Petitioner's solicitors are:
LVM Law Chambers LLC
160 Robinson Road
#13-02 SBF Center
Singapore 068914
NAKAMA SINGAPORE: Creditors' Proofs of Debt Due on Jan. 31
----------------------------------------------------------
Creditors of Nakama Singapore Pte Ltd, 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. 27, 2021.
The company's liquidator is:
Mr. Farooq Ahmad Mann
M/s Mann & Associates PAC
c/o 3 Shenton Way
#03-06C Shenton House
Singapore 068805
=============
V I E T N A M
=============
VIETNAM: Failure to Manage COVID-19 Causes GDP Growth to Slow
-------------------------------------------------------------
Deutsche Presse reports that Vietnam's gross domestic product (GDP)
growth slowed to just 2.58 per cent in 2021 as the effects of the
pandemic hit the country's economy, marking a steep decline from
the 7.02-per-cent growth recorded in 2019, a government report said
on Nov. 29.
Vietnam's GDP actually grew by 5.64 per cent in the first half of
2021, but the country's failure to contain Covid-19 in the second
half of the year led to repeated lockdowns and factory closures
that inflicted serious socio-economic damage, Deutsche Presse
relates citing report published by Vietnam's General Statistics
Office.
According to the report, Vietnam had been praised for its response
to the pandemic, recording only a handful of Covid-19 cases in 2020
and just 35 deaths, but numbers spiked in April 2021, leading to
more than 1.6 million cases and 31,000 deaths being recorded to
date.
Import and export activities offer some hope for the nation's
economy, though, with foreign trade worth a record USD668 billion,
marking a rise of 22.6 per cent on the same period last year.
However, retail sales of goods and services were badly affected by
lockdowns and social distancing, with logistics shrinking by over 5
per cent and accommodation falling by over 20 per cent compared to
the same period in 2020, Deutsche Presse relays.
Deutsche Presse adds that the International Monetary Fund had
predicted a 6.8-per-cent GDP growth for Vietnam in 2021. The
National Assembly, Vietnam's principal legislative body, has now
set a GDP growth target of 6 to 6.5 per cent for 2022.
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S U B S C R I P T I O N I N F O R M A T I O N
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