/raid1/www/Hosts/bankrupt/TCRAP_Public/220113.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, January 13, 2022, Vol. 25, No. 4
Headlines
A U S T R A L I A
EMPOWER CONSTRUCTION: Commences Wind-Up Proceedings
FORCE PRECAST: Commences Wind-Up Proceedings
SYDNEY DECKING: Commences Wind-Up Proceedings
TACOMA PLUMBING: Second Creditors' Meeting Set for Jan. 20
VENUE BLAKE: Commences Wind-Up Proceedings
C H I N A
GUANGZHOU R&F: Delays Bond Maturity as Buyback Falls Short
SHIMAO GROUP: Fitch Lowers IDR to 'B-', On Watch Negative
I N D I A
ACCENT PACKAGING: Insolvency Resolution Process Case Summary
ACTION FINANCIAL: CRISIL Keeps D Debt Ratings in Not Cooperating
AMAR SINGH: CRISIL Assigns B+ Rating to INR22cr Loans
BABA AKHILA: ICRA Keeps D Debt Ratings in Not Cooperating
C K FOODS: CARE Reaffirms B+ Rating on INR11.70cr LT Loan
CANTECH ENGINEERS: CARE Keeps B+ Debt Rating in Not Cooperating
DHRUV WELLNESS: CARE Keeps D Debt Rating in Not Cooperating
DQ ENTERTAINMENT: CARE Keeps D Debt Rating in Not Cooperating
EQUIPMENT FINANCE: CRISIL Keeps B+ (SO) Rating in Not Cooperating
EQUIPMENT FINANCE: CRISIL Keeps B- (SO) Rating in Not Cooperating
GAMBS INDIA PVT: Insolvency Resolution Process Case Summary
GOMATHA COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
HARI KRIPA: ICRA Keeps D Debt Ratings in Not Cooperating
IND-BARATH THERMAL: Insolvency Resolution Process Case Summary
ISCON CRAFT: CARE Lowers Rating on INR0.99cr LT Loan to B+
KH FOGES INDIA: Insolvency Resolution Process Case Summary
MIR REALTORS PRIVATE: Insolvency Resolution Process Case Summary
NIKI AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
ORIENT COLOR: CRISIL Withdraws B+ Rating on INR1.82cr Term Loan
RAMAYANAM RAMALAKSHMI: CRISIL Assigns B Rating to INR4.75cr Loan
SUN INDUSTRIAL: CARE Keeps B- Debt Rating in Not Cooperating
TIRUPATI NIRYAT: CARE Keeps B- Debt Ratings in Not Cooperating
VODAFONE IDEA: India to Own 35.8% After Conversion of Dues
ZIPPY EDIBLE: ICRA Keeps B+ Debt Ratings in Not Cooperating
J A P A N
TOSHIBA CORP: Should Overhaul Board, Japan Pension Fund Says
N E W Z E A L A N D
BEN ALLEN: Creditors' Proofs of Debt Due on Feb. 17
ELIJAH BLUE: Commences Wind-Up Proceedings
JK'S HOSPITALITY: Creditors' Proofs of Debt Due on Feb. 28
S I N G A P O R E
DSN TRADING: Court to Hear Wind-Up Petition on Jan. 28
TRUST-LINK LOGISTICS: Court to Hear Wind-Up Petition on Jan. 21
S O U T H K O R E A
SSANGYONG MOTOR: Mahindra & Mahindra Won't Get Proceeds From Sale
- - - - -
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A U S T R A L I A
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EMPOWER CONSTRUCTION: Commences Wind-Up Proceedings
---------------------------------------------------
Members of Empower Construction (VIC) Pty Ltd, on Jan. 11, 2022,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Andre Lakomy
Cor Cordis
One Wharf Lane
Level 20, 171 Sussex Street
Sydney, NSW 2000
FORCE PRECAST: Commences Wind-Up Proceedings
--------------------------------------------
Members of Force Precast Installations Pty Ltd, on Jan. 11, 2022,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Stephen John Hundy
Daniel Ivan Cvitanovic
Worrells Solvency & Forensic Accountants
Suite 1, 151 Tongarra Road
Albion Park, NSW 2527
SYDNEY DECKING: Commences Wind-Up Proceedings
---------------------------------------------
Members of Sydney Decking Company Pty. Ltd., on Jan. 11, 2022,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Rajiv Ghedia
Shumit Banerjee
Level 5, 115 Pitt Street
Sydney, NSW 2000
TACOMA PLUMBING: Second Creditors' Meeting Set for Jan. 20
----------------------------------------------------------
A second meeting of creditors in the proceedings of Tacoma Plumbing
SEQ Pty Ltd has been set for Jan. 20, 2022, at 10:30 a.m. via
teleconference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 19, 2022, at 4:00 p.m.
Jerry Grant van der Velde and David Michael Stimpson of SV Partners
were appointed as administrators of Tacoma Plumbing on Dec. 6,
2021.
VENUE BLAKE: Commences Wind-Up Proceedings
------------------------------------------
Members of Venue Blake Pty Ltd, on Jan. 11, 2022, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Ross Stephen Thomson
Bankruptcy Advisory Centre
7/100 Hay Street
Subiaco, WA 6008
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C H I N A
=========
GUANGZHOU R&F: Delays Bond Maturity as Buyback Falls Short
----------------------------------------------------------
Bloomberg News reports that Guangzhou R&F Properties Co. succeeded
in delaying payment on a dollar bond due on Jan. 13 despite buying
back only 16% of the note, underscoring the company's liquidity
shortage.
The firm will repurchase $116.4 million of a $725 million note
under a tender offer, according to a company filing to the Hong
Kong exchange on Jan. 11, Bloomberg relays. The company last month
said it had planned to set aside about $300 million for the
buyback. As part of the offer, bondholders agreed to extend
repayment on the remaining principal by six months.
Its dollar bonds plunged last week when Guangzhou R&F said it might
have "materially less" money than expected to buy back the note,
citing delays in completing asset sales, the report relates.
Concerns about the company's financial health have been growing in
recent weeks as a historic credit crunch engulfing China's property
industry sent borrowing costs soaring and spurred defaults to a
record high.
"The tender amount is much lower than the expected amount of $300
million, indicating lower cash available than investors expected,"
according to Bloomberg Intelligence analyst Daniel Fan. While the
"low ball" offer gives the firm six months, it may need to
accelerate asset disposals to gain market confidence, he said.
Property firms are scrambling to deal with imminent payments as
falling sales further strain their finances. Prohibitively high
borrowing costs in the offshore market mean many developers have
effectively been unable to sell fresh dollar debt to roll over
their upcoming obligations.
Guangzhou R&F is making payment on about 16% of the note's
principal, Bloomberg says. Funds used to settle the repurchase,
related interest and consent fee total about $104 million, with
some notes bought at a discount to face value. Investors who
tendered their bonds to one of the two repurchase offers made by
Guangzhou R&F "will be deemed to have voted in favor" of the
six-month debt extension, according to the Dec. 15 exchange filing
unveiling the proposal.
Holders also had the option to just support a six-month payment
extension and receive no cash until July. None chose that, but now
most of the $725 million note's principal likely won't be paid
until at least then, according to Bloomberg.
"The repayment ratio of the deal is too low for it to be considered
a true tender offer," Bloomberg quotes Ting Meng, a senior credit
strategist at Australia & New Zealand Banking Group Ltd., as
saying. The capacity of Guangzhou R&F to repay the note now depends
on its asset disposal progress as its basically lost its
refinancing ability, she said.
A group of bondholders had engaged law firm Ropes & Gray LLP to
hold talks with the developer about the tender, according to a
Debtwire report dated Jan. 7 that cited two sources, Bloomberg
relays. Deutsche Bank AG is that group's leading noteholder, the
report said. Ropes & Gray and Deutsche Bank had no immediate
comment when reached by Bloomberg News on Jan. 11.
The builder is facing a series of key payment tests over the coming
months, with CNY6.6 billion (US$1.04 billion) of local notes
maturing in April and May as well as a $288 million dollar bond due
July, according to Bloomberg-compiled data. Guangzhou R&F needs to
repay or refinance some $3 billion in bonds this year excluding the
note being repurchased and extended.
About Guangzhou R&F
Guangzhou R&F Properties Co., Ltd. operates real estate businesses.
The Company provides housing renovation, housing loans, real
estate brokerage, property management, and other services.
Guangzhou R&F Properties also operates hotel management.
As reported in the Troubled Company Reporter-Asia Pacific, Moody's
Investors Service has downgraded the corporate family ratings (CFR)
of Guangzhou R&F Properties Co., Ltd. to Caa2 from B3 and R&F
Properties (HK) Company Limited (R&F
HK) to Caa3 from Caa1. The rating outlooks for both companies
remain negative.
SHIMAO GROUP: Fitch Lowers IDR to 'B-', On Watch Negative
---------------------------------------------------------
Fitch Ratings has downgraded China-based property developer Shimao
Group Holdings Limited's Issuer Default Rating (IDR) to 'B-', from
'BB', and the senior unsecured rating and outstanding senior
unsecured notes to 'B-', from 'BB', and assigned a Recovery Rating
of 'RR4'. All ratings remain on Rating Watch Negative (RWN).
The downgrade is driven by Shimao's lower margin of safety in
preserving liquidity, as evidenced by an announcement by subsidiary
Shanghai Shimao Jianshe Co., Ltd (Shimao Jianshe; not rated) that a
company 30% indirectly owned by Shimao Jianshe had not paid a trust
loan. Shimao Jianshe guarantees the loan. Shimao continues to meet
its public capital-market obligations. Negative news flow continues
to affect market confidence in the company. Shimao's ability to
meet the obligations could be challenged if its access to capital
and contracted sales weaken significantly.
The RWN reflects the potential for further negative rating action
upon further deterioration in liquidity and funding access, failure
to address upcoming capital-market debt maturities, lack of
significant progress in asset disposals, and/or sustained material
decline in contracted sales.
KEY RATING DRIVERS
Lower Margin of Safety: Shimao's liquidity appears to be weakening.
Shimao Jianshe announced on 7 January 2022 that a company in which
it has an indirect 30% stake had not paid CNY155 million of trust
loans. Shimao Jianshe guarantees the loan, which was due on 25
December 2021. The borrower is negotiating with the trust company,
China Credit Trust Co., Ltd. (not rated), to resolve the issue. The
events reflect Shimao's high reliance on debt extension to maintain
liquidity at a time when its capital market access remains
limited.
The event has further diminished investor confidence and led to
further collapse in bond prices. Continued weakening of confidence
from stakeholders may lead to Shimao being unable to extend debt
and damage Shimao's liquidity position.
Debt Maturities: Fitch estimates that Shimao has around CNY20
billion of public capital-market debt maturities in 2022,
comprising onshore corporate bonds and offshore notes. It had CNY53
billion in available cash as of 1H21, excluding deposits in
regulated accounts of CNY22 billion; however, only a proportion of
this was located at the rated entity level. Shimao has other
obligations, such as trust financing and around CNY10 billion of
asset-backed securities, of which CNY5.6 billion is due in 2022.
Some of the securities are classified as trade payables.
Reliance on Asset Sales: Shimao communicated plans to improve
liquidity through a number of asset disposals, but these are likely
to take time and subject to execution risks. Shimao disposed of its
stake in a Hong Kong project for HKD2 billion in December 2021.
Even so, the proceeds are small against its capital-market
maturities in 2022.
Falling Sales: Contracted sales plunged by 50% yoy in November
2021. The drop has been steeper for Shimao than for most peers.
Shimao has maintained an average selling price, which has been less
volatile compared with peers, at around CNY17,000/square metre
(sqm) and its landbank is focused in high-tier cities, which still
benefit from fundamental demand. However, weakened buyer confidence
could weigh on sales and stifle operating cash generation.
High Joint-Venture Exposure: Shimao's implied cash collection -
defined as the change in customer deposits plus revenue booked
during the year - was CNY150 billion in 1H21 on a 12-month basis,
which was around 45% of total sales. Fitch estimates that around
60%-65% of total contracted sales came from consolidated projects,
considering the effect of value added tax on property sales.
Shimao's consolidation ratio has been consistent in the past few
years, but is lower than that of higher-rated similarly sized
peers.
ESG - Governance: Shimao's ESG Relevant Scores for Financial
Transparency and Group Structure are at '4', as Fitch believes
these ESG issues will affect Shimao's rating in combination with
other factors. The company has not fully addressed market concerns
on debt maturities amid adverse changes in access to capital. It
also has significant exposure to joint ventures and associates, and
there are some related-party transactions within Shimao entities.
DERIVATION SUMMARY
Shimao's ratings reflect decreasing margin of safety in liquidity
amid deteriorating market confidence. It is relying on asset
disposals and extending some short-term maturities to improve
liquidity.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Contracted sales estimated to have dropped to CNY270 billion-
280 billion in 2021, and will decline by 10%-15% in 2022, in
line with Fitch's view on the sector;
-- Average selling price of around CNY17,000/sqm;
-- Minimal land acquisitions in 2H21 and 1H22.
Key Recovery Rating Assumptions
-- The recovery analysis assumes that Shimao would be liquidated
in a bankruptcy because it is an asset-trading company.
-- Fitch has assumed a 10% administrative claim.
-- Fitch uses a multiple assumption tool to derive a 4x EBITDA
multiple to estimate the going concern value.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
-- 70% advance rate to accounts receivable;
-- 30% advance rate to investment properties, as the rental yield
on investment property was close to 2%;
-- 60% advance rate to land and buildings;
-- 60% advance rate to adjusted net inventory to reflect
expectation of lower EBITDA margins. A lower advance rate is
not assumed based on Fitch's view that these assets are still
readily marketable;
-- Shimao's trade payables are larger than its available cash;
Fitch adds trade payable to the credit repayment waterfall as
the highest priority creditor. Cash is given 100% advance
rate;
The allocation of value in the liability waterfall results in
recovery corresponding to 'RR2' for the senior unsecured offshore
bonds. However, the Recovery Rating is capped at 'RR4' because
under Fitch's Country-Specific Treatment of Recovery Ratings
Criteria, China falls into Group D of creditor friendliness, and
instrument ratings of issuers with assets in the group are subject
to a soft cap at the IDR.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The RWN would be removed and ratings affirmed on sustained
improvement in liquidity, access to funding and contracted
sales.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Evidence of significant deterioration in market confidence,
leading to significant deterioration in funding access and
lending relationships;
-- Failure to address upcoming capital-market debt maturities
through refinancing with long-term capital;
-- Lack of significant progress in asset sales;
-- Sustained material decline in contracted sales.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Large Maturities: Shimao has CNY8.4 billion in public
capital-market debt due in 1H22 and a further CNY11.8 billion in
2H22, in addition to other liabilities. It had CNY53 billion in
available cash, excluding deposits in regulated accounts of CNY22
billion, as of 1H21; only a proportion of this was located at the
rated entity level.
ISSUER PROFILE
Shimao is one of the largest Chinese property developers, focusing
on residential property development. It is also active in office
and mall rental, property management as well as hotel and theme
park operations.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch has excluded deposits in regulated accounts (1H21: CNY22
billion) from cash in Fitch's leverage calculation and included
this as inventory.
Restricted cash of CNY7.6 billion is included in cash to calculate
net debt, as it is mainly pledged for obtaining bank loans.
ESG CONSIDERATIONS
Shimao has an ESG Relevance Score of '4' for Group Structure. The
company has not fully addressed market concerns on debt maturities
amid adverse changes in access to capital, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.
Shimao has an ESG Relevance Score of '4' for Financial
Transparency. It has significant exposure to joint ventures and
associates, and there are some related-party transactions within
Shimao entities, which has a negative impact on the credit profile,
and is relevant to the ratings in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
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I N D I A
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ACCENT PACKAGING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Accent Packaging Private Limited
2/182 Vania Ward
Nani Daman, Daman (UT)
DD 396210
India
Insolvency Commencement Date: January 3, 2022
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: July 7, 2022
Insolvency professional: George Samuel
Interim Resolution
Professional: George Samuel
110, Atria B
Sargasan Circle
Gandhinagar
Gujarat 382421
E-mail: gsforgs@gmail.com
Last date for
submission of claims: January 17, 2022
ACTION FINANCIAL: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on the bank facilities of Action
Financial Services India Limited (AFSL) continues to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 5 CRISIL D (Issuer Not
Cooperating)
Proposed Bank 3 CRISIL D (Issuer Not
Guarantee Cooperating)
CRISIL Ratings has been consistently following up with AFSL for
obtaining information through letters dated October 29, 2021, and
December 27, 2021, among others, apart from telephonic
communication. However, the issuer has remained non-cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AFSL, which restricts CRISIL
Rating's ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AFSL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on the bank facilities
of AFSL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 1992, AFSL is in the retail broking business and
has membership of the National Stock Exchange, Bombay Stock
Exchange and National Securities Depository Ltd. It has a branch in
Mumbai, and it is actively engaged in proprietary trading. Mr.
Milan Parekh and Mr. Bakul Parekh are the promoters of the
company.
AFSL has two subsidiaries, Action Securities Ltd and Action
Commodities Ltd, which are yet to start full-fledged operations.
AFSL has not yet declared its financial results for the year ended
March 31, 2020.
AMAR SINGH: CRISIL Assigns B+ Rating to INR22cr Loans
-----------------------------------------------------
CRISIL Ratings has assigned its ‘CRISIL B+/Stable’ rating to
the long-term bank facilities of Amar Singh and Sons Tree Nuts LLP
(ASSTN).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 19 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Assigned)
The rating reflects ASSTN's modest scale with limited track record
of operations, susceptibility to climatic conditions and volatility
in raw material prices and large working capital requirement. These
weaknesses are partially offset by the extensive experience of the
partners in the walnut trading industry and its moderate debt
protection metrics.
Key rating drivers and detailed description
Weaknesses:
* Modest scale with limited track record of operations: The limited
track record of operations is constrained by the modest scale in
the intensely competitive walnut trading industry. The small scale
will continue to limit ASSTN’s operating flexibility. ASSTN has
booked revenue of around INR23.75 crore till November 2021.
* Susceptibility to climatic conditions and volatility in raw
material prices: The crop yield of agricultural commodities is
dependent on adequate and favourable climatic conditions. Thus,
ASSTN is exposed to the risk of limited availability of its key raw
material during unfavourable climatic conditions. Also, production
may be impacted by pests or crop infection leading to higher
unpredictability in production and pricing of agricultural
commodities and derived products.
* Working capital intensive operations: Gross current assets (GCA)
were sizeable at 181 days as on March 31, 2021 driven by inventory
and debtor days of 118 and 39, respectively. Payables of 99 days
support working capital. Operations may remain working capital
intensive commensurate with increase in scale of operations.
Strengths:
* Extensive experience of the partners: The over three decades of
experience of the partners in the walnut trading industry, their
understanding of the dynamics of the market and healthy
relationships with suppliers and customers should continue to
support the business.
* Moderate debt protection metrics: ASSTN’s debt protection
measures have been comfortable despite leverage due to moderately
healthy profitability. The interest coverage and net cash accrual
to total debt ratios were 1.90 times and 0.03 time, respectively,
for fiscal 2021. Debt protection measures are expected to remain at
similar level over the medium term.
Liquidity: Stretched
Cash accrual, expected at Rs 0.65 crore per annum over the medium
term are tightly matched against yearly debt obligation of Rs 0.55
crore. Bank limit utilisation averaged 75% for the 12 months ended
October 2021. Current ratio was moderate at 1.02 times as on March
31, 2021.
Outlook: Stable
CRISIL Ratings believes ASSTN will continue to benefit from its
longstanding relationships with principals and experience of the
management to mitigate the inherent risk in the trading business.
Rating Sensitivity Factors
Upward factors:
* Sustained revenue growth of 15-20% over the medium term along
with improvement in the financial risk profile.
* Improvement in the working capital cycle with GCAs of less than
150 days over the medium term.
Downward factors:
* Fall in revenue by 20-25% along with declining margins, leading
to lower accrual.
* If business stagnates due to week demand or stretch in
receivables or pile-up of inventory adversely affects liquidity.
Established in 2019, ASSTN is engaged in the business of processing
organic walnuts. The firm is promoted by Mr. Avelok Sing and Mr. K
B Singh and the firm is based out of Jammu & Kashmir.
BABA AKHILA: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Baba
Akhila Sai Jyothi Industries Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as [[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 18.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/CC Rating continues to remain in
the 'Issuer Not Cooperating'
category
Long Term- 12.35 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/TL Rating continues to remain in
the 'Issuer Not Cooperating'
category
Short Term- 8.45 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continues to remain in
the 'Issuer Not Cooperating'
category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in May 2005, Baba Akhila Sai Jyothi Industries Private
Limited (BASJIPL) is into manufacturing of sponge iron. The sponge
iron plant is located at village Chikka Bagnal in Koppal district
of Karnataka and the plant commenced operations from April 2009.
The installed capacity of the plant was 100TPD which was increased
to 200 TPD from April 2011. The company is managed by Mr. V Krishna
Murthy who has more than 15 years of prior experience in the sponge
iron industry.
C K FOODS: CARE Reaffirms B+ Rating on INR11.70cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of C K
Foods Industries (CKFI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 11.70 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The reaffirmation in the ratings assigned to the bank facilities of
CKFI continue to remain tempered on account of its growing albeit
nascent scale of operation, low profitability along with leveraged
capital structure with weak debt coverage indicators. The ratings
also continue to remain tempered on account of elongated operating
cycle, seasonality associated with agro commodities in the highly
fragmented and government regulated industry and its constitution
as partnership firm. The rating, however, continues to draw
comfort from the experienced promoters.
Rating Sensitivities
Positive Factors
* Increase in the scale of operations with a total operating income
exceeding INR100 crore on a sustained basis
* Improvement in profit margins with PBILDT margin exceeding 9.00%
and reporting net profit with PAT margin exceeding 1.50%
respectively on a sustained basis
* Improvement in total debt to GCA to improve and stood below 5.00x
on a sustained basis
* Improvement in the capital structure with overall gearing ratio
reaching below 2.00 on a sustained basis
Negative factors
* Significant decrease in total operating income due to adverse
climatic condition on the back of heavy or untimely monsoons
leading to unfavorable climate for paddy harvest
* Deterioration in interest coverage ratio below unity leading to
stress in debt repayment
* Any major debt funded capex putting pressure on profitability and
liquidity of the company
Detailed description of the key rating drivers
Key rating Weaknesses
* Growing albeit nascent scale of operation and low profitability:
CKFI has commenced the commercial operation of the project
undertaken towards setting up of rice mill from November 2019
onwards and during 5MFY20, CKF achieved TOI of INR13.87 crore which
has further grown to INR51.16 crore in FY21 backed by successful
commencement of project and better demand position. This has led to
higher cash accruals to Rs.1.23 crore. Further, the firm has
achieved sales of INR33.77 crore in 8MFY22 (refers to period April
1, 2021 to November 30, 2021). However, the PBILDT margin has
deteriorated and stood at 6.52% in FY21 vis-à-vis 8.35% in FY20,
wherein the dip is primarily due to increase in various overheads
expenses. The firm has reported net loss of INR0.06 crore in FY21
vis-à-vis PAT of INR0.03 crore in FY20.
* Leveraged capital structure with modest debt coverage indicators:
The capital structure of CKF remained leveraged mainly on account
of high debt level in its initial stage of operation with low net
worth base. Despite improvement in tangible net worth base, the
overall gearing has deteriorated further to 3.53x as of March 31,
2021 vis-a-vis gearing of 3.25x as on March 31, 2020 owing to
increase in debt level led by increase in term loans availed along
with higher reliance on working capital bank borrowings. Further,
on back of low profitability with leveraged gearing position backed
by higher debt along with decline in gross cash accruals, the debt
coverage indicators remained weak as marked by interest coverage
ratio of 1.58x in FY21 vis-à-vis 2.68x and total debt to GCA of
26.52x as on March 31, 2021 vis-à-vis 13.10 times as on March 31,
2020.
* Elongated operating cycle: The operating cycle stood elongated
marked by nascent stage of operations leading to higher inventory
period resulting from bulk purchase and storage of inventory to
suffice for the demand of customers. Collection days stood at 12
days however creditor days were on higher side at 56 days in FY21.
Thus, on account of the same and due to initial state of operations
of business, the working capital cycle stood elongated in FY21.
* Seasonality associated with agro commodities in highly fragmented
and government regulated industry: As the firm is engaged in the
business of processing of agriculture commodities, the prices of
agriculture commodities remained fluctuating and depend on
production yield, demand of the commodities and vagaries of
weather. Hence, profitability of the firm is exposed to
vulnerability in prices of agriculture commodities. The rice
milling industry is characterized by limited value addition, highly
fragmented and competitive in nature as evident by the presence of
numerous unorganized and few organized players. The entry barriers
in this industry are very low on account of low capital investment
and technological requirement. Due to this, the players in the
industry do not have any pricing power. Further, the industry is
characterized by high degree of government control both in
procurement and sales for rice. The government of India (GoI)
decides the Minimum Support Price (MSP) payable to farmers and also
procures rice under the levy route from rice mills.
* Constitution as a partnership concern: Being a partnership firm,
ACO is exposed to inherent risk of partners' capital being
withdrawn at time of personal contingency, and firm being dissolved
upon the death/retirement/insolvency of key partner.
Key Rating Strengths
* Experienced promoters: CKF was formed by Mr. Sunil Sharma and Mr.
Gaurav Sharma, both are jointly liable for overall management of
the firm. Mr. Sunil Sharma is graduate by profession and has
experience of more than two decades in the same industry. Mr.
Gourav Sharma is, Bachelor in Engineering (B.E.) by profession and
has experience of around 8 years in the same industry. Hence, the
promoters are well-versed with the industry which will help CKF in
establishing its customer base.
Liquidity Analysis: Poor
Liquidity remained Poor as marked by low cushion of cash accruals
against its repayment obligation, negative cash flow from
operation, low cash and bank balance on hand along with moderate
utilization of its working capital limit. Further, cash and bank
balance on hand remained low at INR0.14 crore as on March 31, 2021
vis-à-vis Rs.0.10 crore as on March 31, 2020, while its cash flow
from operating activity remained negative of INR9.75 crore in FY21
vis-a-vis negative CFO of Rs.16.91 crore in FY20. However, average
utilization of its working capital limit remained moderately high
at 80% for past one year ended November 2021. Further, CKF has
availed moratorium as per Government Guidelines under COVID relief
Package for the period of 6 months i.e. March 2020 to August 2020
in its term loan as well cash credit limit. The entity has availed
GECL (Guaranteed Emergency Credit Line) loans from Indian Overseas
Bank amounting to INR2.10 crore and State Bank of India amounting
to INR2.00 crore. Also, the firm has availed commodity pledge
limits from SBI and YES Bank amounting to INR20.00 crore.
Raisen-based (Madhya Pradesh), C K Food Industries (CKF) was
established in April, 2017 as a partnership concern by Mr. Sunil
Sharma and Mr. Gaurav Sharma sharing profit & loss in the ratio of
51:49. The firm was formed with an objective to set up a Rice Mill.
The activity includes mainly processing of rice and CKF is
operating through its sole manufacturing facility at Mandideep,
Raisen (MP) with an installed capacity of processing of 5 metric
ton per hour. It procures the raw material i.e. raw paddy from
local farmers and will sell all over India. Further, it will sell
its product under the brand name of "Golden Bird".
During FY21, CKF posted total operating income of INR51.16 crore
(vis-à-vis INR13.87 crore in FY20) whereas it reported net loss of
INR0.06 crore during FY21 vis-à-vis PAT of INR0.03 crore in FY20.
Furthermore, during the period April 1, 2021 to November 30, 2021,
the company has achieved the total sales of INR33.77 crore.
CANTECH ENGINEERS: CARE Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Cantech
Engineers Private Limited (CEPL) continues to remain in the 'Issuer
Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.34 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 12, 2021, placed the
rating(s) of CEPL under the 'issuer non-cooperating' category as
CEPL 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. CEPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 28, 2021, December 8, 2021, December 18, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Delhi-based Cantech Engineers Private Limited (CEPL) (CIN No.
U31101DL2008PTC178423) was incorporated in May, 2008. CEPL has
succeeded an erstwhile proprietorship firm established in 2002
under the name "Cantech Engineers". In May 2008, the name changed
to present one. The company is currently managed by Mr. Surender
Kumar Chaturvedy & Mr. Shashank Chaturvedy. The company is engaged
in the manufacturing of acoustic enclosures for DG sets,
furniture's & fixtures such as display stand, display wall, display
counters & industrial doors, LT & HT panels, racks, etc. and its
related sheet metal components. The company also operates as an
authorized dealer of Mahindra & Mahindra Limited (M&M) DG sets &
engines.
DHRUV WELLNESS: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dhruv
Wellness Limited (DWL) continues to remain in the 'Issuer Not
Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 30, 2020, placed
the rating(s) of DWL under the 'issuer non-cooperating' category as
DWL had failed to provide information for monitoring of the rating
for the rating exercise as agreed to in its Rating Agreement. DWL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The reaffirmation in rating factors in default in the debt
servicing and accounts of the company have been classified as
nonperforming assets (NPA).
Detailed description of the key rating drivers
At the time of last rating on December 30, 2020 the following were
the rating strengths and weaknesses (updated for the information
available from Bombay Stock Exchange and CIBIL):
Key Rating Weaknesses
* Default in debt servicing: As per the annual reports for received
for FY21, the company has defaulted on payments of interest and
installments of banks and financial institutions and all the loan
accounts are classified as Non-Performing Loans by respective
lenders before year ended March 31, 2021. Further, as per the CIBIL
records for the quarter ended September 30, 2021, the company and
director names were appeared as willful defaulter against the bank
facilities rated by CARE. Further as per the extraction from
watchoutinvestors.com on January 3, 2022 the regulatory agency has
imposed penalty/find on the company.
* Weak financial risk profile: The scale of operation of the
company remained moderate, however reflected fluctuating trend
during past four years. Further, the TOI has significantly
decreased with no revenue generated in FY21 (vis-à-vis Rs.42.36
crore in FY20). Further, the company has incurred operating and net
loss of Rs.5.15 crore and Rs.5.15 crore respectively during FY21
which resulted to distressed debt coverage indicators during FY21.
On account of the said losses, the tangible networth of the company
has eroded to negative as on March 31, 2021
* Stretched working capital cycle: The operations of KEPL are
working capital intensive in nature on account of funds being
blocked in receivables and payables. The operating cycle of the
company has significantly elongated to 156 days in FY20 from 93
days in FY19 due to stretched collection period from 69 days in
FY19 to 129 days in FY20. The inventory period has also elongated
to 56 days in FY20 from 48 days in FY19.
Established in 2005 by Mr. Pravin Kumar Prajapati as a
proprietorship entity, Dhruv Agency (DA), with Mrs. Anita Prajapati
as the proprietor) was later converted into a private limited
company and renamed as Dhruv Wellness Private Limited (DWPL) in
March 2015, thereafter which it was converted into a public limited
company and renamed as Dhruv Wellness Limited (DWL) in July 2017.
DWL is engaged in trading & distributorship of various
pharmaceutical & cosmetic products which are sold to various
retailers and wholesalers mainly in the Western suburbs of Mumbai
and outskirts also. Some of the said products are procured by the
company directly from the principal manufacturers of the same for
whom the company acts as a distributor, whereas the rest of the
products are procured from other wholesalers of the same. Moreover,
the company also undertakes manufacturing of ayurvedic medicines
under its own brand "Dhruv", however such manufacturing is
completely outsourced to Savita Health Care Private Limited.
DQ ENTERTAINMENT: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Dq
Entertainment (international) Limited (DQE) continues to remain in
the 'Issuer Not Cooperating ' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 155.58 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated March 13, 2018,
placed the rating of DQE under the 'issuer non-cooperating'
category as DQE had failed to provide information for monitoring of
the rating. DQE continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and an email dated August 28, 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).
Detailed description of the key rating drivers
At the time of last rating on October 12, 2020, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Stretched liquidity with delays in debt servicing: The company has
been facing stretched liquidity due to cashflow mismatch resulting
in delays in debt servicing.
* Subdued financial performance with continuing losses: During
FY20, the total operating income of the company declined by 47.53%
to INR48.53 crore as against INR92.49 crore during FY19. The
company continues to report net loss of INR58.11 crore for FY20
vis-à-vis loss of INR40.90 crore for FY19. The company reported
cash loss of INR42.75 crore for FY20 as against cash loss of
INR26.39 crore for FY19.
Key Rating Strengths
* Experienced promoters: The promoters Mr. Tapaas Chakravarti has
more than a decade of experience in the animation and gaming
industry. Mr. Tapaas has held senior positions in Sales and
Projects at Coats of India, (a British multinational). He was Head
of Special Projects for Sriram Group where he developed countrywide
contract manufacturing activities.
DQE was incorporated in April 2007 as Animation and Multimedia Pvt
Ltd in Hyderabad and is in the business of animation, gaming, live
action content production, licensing and distribution. The company
is based in Hyderabad and has 1,732 associates globally with
facilities for content creation and production in 2D, CGI,
3D-Stereoscopic, visual effects (VFX), Game Art. DQE is publicly
listed in BSE and NSE in India. The Company's three main products
and services are animation production services, co-owned content
development and intellectual property development & distribution.
It also provides training services for the production of animated
television series and movies as well as licenses programmed
distribution rights to broadcasters, television channels, and home
video distributors.
EQUIPMENT FINANCE: CRISIL Keeps B+ (SO) Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating for the bank facilities of Srei
Equipment Finance Limited (SEFL) continues to remain in the 'Issuer
Not Cooperating' category.
Trust Name: IIALRT-I Trust
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Series A PTCs 175.25 CRISIL B+ (SO)/Watch
Negative/ISSUER NOT
COOPERATING; Continues
on 'Rating Watch with
Negative Implications'
CRISIL Ratings has been consistently following up with Srei
Equipment Finance Limited (SEFL) through emails dated March 26,
2021, April 2, 2021, July 21, 2021, October 4, 2021 and January 7,
2022. However SEFL has been unable to provide up to date
information on an ongoing basis.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive adequate information on the performance
of the obligors in the pool and its reconciliation with the payouts
done. CRISIL Ratings believes that the rating action is consistent
with ‘Assessing Information Adequacy Risk’.
CRISIL Ratings has noted recent development that on October 04,
2021, RBI superseded the Board of Directors of SIFL and SEFL owing
to governance concerns and payment defaults by SREI Group
Companies. Through an order on October 08, 2021, NCLT Kolkata bench
initiated corporate insolvency resolution process against SREI
Group Companies under the Insolvency and Bankruptcy Code 2016. Any
further development in this relation shall be closely monitored by
CRISIL.
On account of continued weakness in the credit profile of the
servicer, rating on Series A pass-through certificates (PTCs)
issued by 'IIALRT-I Trust’ remains at 'CRISIL B+ (SO) Issuer Not
Cooperating'. The rating continues on 'Rating Watch with Negative
Implications'.
The PTCs are backed by IT, Healthcare and Construction Equipment
rental receivables leased out by SREI Equipment Finance Limited
(SEFL) to corporate lessees. The transaction has a timely interest
and ultimate principal structure.
CRISIL Ratings’ methodology for rating PTCs factors the credit
risk profile of the originator/servicer along with the expected
collection performance of the underlying pool. Linkage to servicer
is critical from two aspects: 1) Collections or recovery from
underlying contracts and 2) Bankruptcy-remoteness of cash
collateral. CRISIL Ratings has noted that there was a judicial
precedent on access to cash collateral for securitised pools in one
specific originator / servicer. Hence, CRISIL Ratings’ believes
that weakening of the credit risk profile of the servicer reduces
the extent of de-linkage of securitised pool rating from the
servicer credit profile.
Key Rating Drivers & Detailed Description
Strengths:
* Credit support available and strong performance: Cash collateral
of INR 22.96 crore (60.1% of future investor payouts) is available
in the structure and there has been no cash collateral utilization
till date.
Weakness:
* Credit quality of the servicer/lessor: All the corporate lessees
directly deposit the lease rentals into the C&P account except ECI
Telecom India who deposit with SEFL hence servicing risks in this
transaction is considerably lower than that in typical
securitization transactions. However, servicing remains critical as
recoveries post-default of any of the lessors will be dependent on
the ability of the servicer to effect roll-backs and settlements
with the defaulting parties. Heightened Fixed Deposit (FD)
accessability risk: Trustee's ability to access credit collateral
by getting approval from SEFL is a key monitorable.
* Borrower concentration: The pool is concentrated with top 10
lessees constituting the major proportion. Receivables are
non-financial obligations of the obligors: The lease rentals are
operating obligations of the lessees and not financial obligations.
As per the lease agreements, the lease obligations are
non-cancellable, absolute and unconditional obligations of the
lessees, which provides comfort regarding the lease repayments.
Only in contracts accounting for 1.9% of initial pool receivables,
lessee has the right to terminate the contract if the lessor is in
financial disability.
Liquidity: Poor
Liquidity is poor given that the credit enhancement in the
structure may not be available to cover pool losses even at the
level of currently estimated base shortfalls
CRISIL Ratings has adequately factored these aspects in its rating
analysis
Rating Sensitivity factors
Upward factors
* Trustee able to demonstrate access to cash collateral in a timely
manner.
Downward factors
*Inability of the Trustee to access cash collateral as set out
under transaction terms
* Deterioration in pool performance
About the Pool
The pool comprises rental receivables from construction, IT and
healthcare equipment leases originated by SEFL.
About the Originator
Srei Equipment Finance Limited (SEFL) is registered with RBI as a
non-deposit taking NBFC (Category-Asset Finance) and provides
financial products and services to a wide spectrum of assets such
as construction and mining equipment, information technology
equipment and solutions, healthcare equipment and farm equipment.
It is a wholly-owned subsidiary of Srei Infrastructure Finance
Limited (SIFL).
SEFL was a 50:50 joint venture between SIFL, India's only private
sector infrastructure finance company; and BNP Paribas Lease Group
(BPLG), one of the largest leasing groups in Europe. Pursuant to
share purchase agreement dated December 29, 2015, executed between
SIFL, BPLG, SEFL, SREI Growth Trust, Mr. Hemant Kanoria, and Mr.
Sunil Kanoria, BPLG agreed (i) to acquire 2,51,54,317 equity shares
of SIFL representing 5% of total paid up equity share capital and
(ii) in lieu thereof, sell its entire shareholding of 2,98,30,000
equity shares in SEFL representing 50% of the total paid-up equity
share capital to SIFL in accordance with applicable laws. The
transaction was completed on June 17, 2016, when SEFL became a
wholly-owned subsidiary of SIFL.
EQUIPMENT FINANCE: CRISIL Keeps B- (SO) Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating for the bank facilities of Srei
Equipment Finance Limited (SEFL) continues to remain in the 'Issuer
Not Cooperating' category.
Trust Name: IIERT Oct 2018 - II
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Series A PTCs 315.44 CRISIL B- (SO)/Watch
Negative/ISSUER NOT
COOPERATING
CRISIL Ratings has been consistently following up with Srei
Equipment Finance Limited (SEFL) through emails sent on March 26,
2021, April 2, 2021, July 21, 2021, October 7, 2021 and January 7,
2022. However, SEFL has not provided the requisite data on an
ongoing basis.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive adequate information on the portfolio and
the contract level pool performance on an ongoing basis. CRISIL
Ratings believes that the rating action is consistent with
‘Assessing Information Adequacy Risk’.
CRISIL Ratings has noted recent development that on October 04,
2021, RBI superseded the Board of Directors of SIFL and SEFL owing
to governance concerns and payment defaults by SREI Group
Companies. Through an order on October 08, 2021, NCLT Kolkata bench
initiated corporate insolvency resolution process against SREI
Group Companies under the Insolvency and Bankruptcy Code 2016. Any
further development in this relation shall be closely monitored by
CRISIL.
On account of continued weakness in the credit profile of the
servicer and weak pool collections, rating on Series A pass-through
certificates (PTCs) issued by 'IIERT Oct 2018 - II’ remains at
'CRISIL B- (SO) Issuer Not Cooperating'. The rating continues to be
on ‘Rating Watch with Negative Implications’.
The pool comprises receivables from largely construction equipment
loans and few healthcare equipment loans originated and serviced by
SREI Equipment Finance Limited (SEFL). The transaction has a timely
interest and ultimate principal structure.
CRISIL Ratings’ methodology for rating PTCs factors the credit
risk profile of the originator/servicer along with the expected
collection performance of the underlying pool. Linkage to servicer
is critical from two aspects: 1) Collections or recovery from
underlying contracts and 2) Bankruptcy-remoteness of cash
collateral. CRISIL Ratings has noted that there was a judicial
precedent on access to cash collateral for securitised pools in one
specific originator / servicer. Hence, CRISIL Ratings believes that
weakening of the credit risk profile of the servicer reduces the
extent of de-linkage of securitised pool rating from the servicer
credit profile.
Key Rating Drivers & Detailed Description
Strengths:
* Credit support available: Credit enhancement of INR 4.55 crore
(38.4% of PTC principal) is available in the structure.
Weakness:
* Weakening credit risk profile of the servicer: Any deterioration
in servicing capability negatively impact the credit quality of the
PTCs.
* Weak pool collections: On a monthly basis collections from the
pool are released for principal payouts on the PTCs. The current
rate of collections is adequate by a small margin to avoid default
on the PTCs. The monthly future billings is not shared with CRISIL
Ratings.
* Heightened CC accessability risk: Trustee holds the CC in Trust
Account and is using the same for interest payouts on the PTCs.
Continued accessability of the same is a key monitorable.
Liquidity: Poor
Liquidity is poor given that the credit enhancement available in
the structure may not be able to cover pool losses at the level of
currently estimated base shortfalls.
CRISIL Ratings has adequately factored these aspects in its rating
analysis
Rating Sensitivity factors
Upward factors
* Better than expected performance of the underlying contracts in
the pool
Downward factors
* Inability of the Trustee to access cash collateral as set out
under transaction terms
* Further deterioration in collections on the pool
Srei Equipment Finance Limited (SEFL) is registered with RBI as a
non-deposit taking NBFC (Category-Asset Finance) and provides
financial products and services to a wide spectrum of assets such
as construction and mining equipment, information technology
equipment and solutions, healthcare equipment and farm equipment.
It is a wholly owned subsidiary of Srei Infrastructure Finance
Limited (SIFL).
SEFL was a 50:50 joint venture between SIFL, India's only private
sector infrastructure finance company; and BNP Paribas Lease Group
(BPLG), one of the largest leasing groups in Europe. Pursuant to
share purchase agreement dated December 29, 2015, executed between
SIFL, BPLG, SEFL, SREI Growth Trust, Mr. Hemant Kanoria, and Mr.
Sunil Kanoria, BPLG agreed (i) to acquire 2,51,54,317 equity shares
of SIFL representing 5% of total paid up equity share capital and
(ii) in lieu thereof, sell its entire shareholding of 2,98,30,000
equity shares in SEFL representing 50% of the total paid-up equity
share capital to SIFL in accordance with applicable laws. The
transaction was completed on June 17, 2016, when SEFL became a
wholly owned subsidiary of SIFL.
GAMBS INDIA PVT: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Gambs India Pvt. Ltd.
CTS No. 714, Plot No. 508
Nr National College
V.P. Road, Bandra West Mumbai
Mumbai City, MH 400050
IN
Insolvency Commencement Date: January 7, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: July 6, 2022
Insolvency professional: Mr. Saket Shantilal Jain
Interim Resolution
Professional: Mr. Saket Shantilal Jain
Office No. 70, 2nd Floor
Empire Building
134 D N Road
Fort, Mumbai 400001
E-mail: cajainsaket@gmail.com
cirp.gambs@gmail.com
Last date for
submission of claims: January 21, 2022
GOMATHA COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term ratings of Gomatha Cotton
Industries in the 'Issuer Not Cooperating' category. The ratings
are denoted as [[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B (Stable); ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]B (Stable); ISSUER NOT
Fund Based/TL COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Gomatha Cotton Industries (GCI) is a partnership firm set up in
April 2016 by Mr Gunda Srinivas and Mr Gourishetty Srinivas along
with 13 other partners. The firm is planning to set up cotton
ginning and pressing unit in Husnabad, Karimnagar with 44 ginning
machines for producing cotton bales. The partners of the firm have
prior experience in the cotton ginning industry and have planned to
set up their own ginning unit.
HARI KRIPA: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Hari
Kripa Business Ventures Private Limited in the 'Issuer Not
Cooperating' category. The ratings are denoted as [[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 11.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/ Rating continues to remain under
Term loan 'Issuer Not Cooperating'
Category
Long Term- 20.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based/ Rating continues to remain under
Cash credit 'Issuer Not Cooperating'
Category
Short Term/ 3.00 [ICRA]D/[ICRA]D; ISSUER NOT
Long Term– COOPERATING; Rating continues
to
Non-Fund Based remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.
The rating action has been taken in accordance with ICRA's policy
in respect of non-cooperation by a rated entity available at
www.icra.in.
Hari Kripa Business Venture Private Limited (HKBV) was established
in 2008 at Kaladera in Jaipur. The company started its commercial
production in September 2012. The company is promoted by Mr.
Mahendra Kumar Agarwal, Mr. Raghuveer Agarwal along with the other
members of the family. HKBV manufactures Mild Steel (MS)
ingots/billets, pipes, and flats. In FY2013, the company forward
integrated and commenced the manufacturing of MS flats and other
rolled products, wherein the key raw materials (billets and ingots)
used were captively produced.
IND-BARATH THERMAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: M/s Ind-Barath Thermal Power Limited
House No. 8-5-210/43, Plot No. 44
Shiva Enclave Old Bowenpally
Secunderabad Rangareddi
Telangana 500011
Insolvency Commencement Date: December 30, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: June 28, 2022
(180 days from commencement)
Insolvency professional: Sudip Bhattacharya
Interim Resolution
Professional: Sudip Bhattacharya
903 Queensgate CHS
Hiranandani Estate
Off Ghodbander Road
Thane-West
Mumbai 4000607
E-mail: resolutionsudip@gmail.com
- and -
Exceror Resolvency Private Limited
Peninsula Business Park
Tower B, 19th Floor
Lower Parel (West)
Mumbai City
Maharashtra 400013
E-mail: ibtpl.cirp@gmail.com
Last date for
submission of claims: January 20, 2022
ISCON CRAFT: CARE Lowers Rating on INR0.99cr LT Loan to B+
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Iscon Craft Paper Mill Private Limited (ICPMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 0.99 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-; Stable
Long Term/ 8.75 CARE B+; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
category and Revised from
CARE BB-; Stable/CARE A4
Short Term 0.50 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; 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 ICPMPL under the 'issuer non-cooperating' category
as ICPMPL 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. ICPMPL 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 09, 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).
The ratings assigned to the bank facilities of ICPMPL have been
revised on account of non-availability of requisite information.
The ratings also factored in decline in scale of operations,
profitability as well as capital structure during FY19-FY21.
Vadodara-based (Gujarat) 'Iscon Craft Paper Private Limited'
(ICPMPL) was incorporated in September 2011. ICPMPL is engaged into
manufacturing of absorbent craft paper which is used as raw
material in lamination industry from its sole
manufacturing facility located at Karjan, Vadodara with an
installed capacity of 140 Mt per day as on March 31, 2019.
KH FOGES INDIA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: KH Foges India Private Limited
203, Joshi Chambers
Ahmedabad Street
Carnac Bunder, Masjid (East)
Mumbai City, MH 400009
IN
Insolvency Commencement Date: December 13, 2021
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: July 6, 2022
(180 days from commencement)
Insolvency professional: Mr. Navin Khandelwal
Interim Resolution
Professional: Mr. Navin Khandelwal
206, Navneet Plaza
5/2 Old Palasia
Indore 452018
E-mail: navink25@yahoo.com
cirpkhfoges@gmail.com
Last date for
submission of claims: January 21, 2022
MIR REALTORS PRIVATE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: M/s MIR Realtors Private Limited
41/2030, M M Buildings 1st Floor
Kalabhavan Road
Cochin 682018
Insolvency Commencement Date: December 18, 2021
Court: National Company Law Tribunal, Kochi Bench
Estimated date of closure of
insolvency resolution process: June 16, 2022
Insolvency professional: P T Joy B. Com
Interim Resolution
Professional: P T Joy B. Com
P T Joy & Associates
Chartered Accountants
34/306 C, 1st Floor
J B Plaza, Near NSS Hostel
Edapally Tripunithura Road
Oberon Mall Jn
Padivattom Kochi 682024
E-mail: joyptca@yahoo.co.in
Tel: 0484-2807097
Classes of creditors: Allottees of Residential/Commercial
under Real Estate Project of the
Corporate Debtor
Insolvency
Professionals
Representative of
Creditors in a class: CA Krishna Raj
Tel: 9809779839
CA Vibin Vincent
Tel: 9400072188
CA K. Parameswaran Nair
Tel: 9567875348
Last date for
submission of claims: January 1, 2022
NIKI AGRO: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Niki Agro
Products Private Limited (NAPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.24 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 January 20, 2021, placed the
rating(s) of NAPPL under the 'issuer non-cooperating' category as
NAPPL 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. NAPPL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
December 6, 2021, December 16, 2021, December 30, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Incorporated in 2001, NAPPL is a Jalgaon-based company promoted by
Mr. Kantilal Jain and Mr. Deepak Jain. The company is engaged in
the processing and trading of pulses comprising of Toor dal, Moong
dal, Urad dal, Masoor dal, Lobia, Chana, Rajma, dried peas etc.
ORIENT COLOR: CRISIL Withdraws B+ Rating on INR1.82cr Term Loan
---------------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of Orient
Color Art Printers Private Limited (OCAPPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.15 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Cash Credit 1.06 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
Foreign Bill 1.75 CRISIL A4/Issuer Not
Discounting Cooperating (Withdrawn)
Packing Credit 2.50 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Term Loan 1.82 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with OCAPPL for
obtaining information through letters and emails dated September
29, 2021 and October 16, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
‘The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of OCAPPL. This restricts CRISIL
Ratings’ ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
OCAPPL is consistent with ‘Assessing Information Adequacy
Risk’. Based on the last available information, the ratings on
the bank facilities of OCAPPL continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
CRISIL Ratings has withdrawn its ratings on the bank facilities of
OCAPPL on the request of the company and receipt of a no objection
certificate from its bank. The rating action is in line with CRISIL
Ratings' policy on withdrawal of its ratings on bank loans.
OCAPPL started in 2011 is a private limited company engaged in
printing of diaries, calendars, notebooks, labels and other
products. Mr. N. V. Muralitharan, the current director manages the
day to day operations of the company and is B.E Mechanical graduate
and has extensive experience of more than two decades in the
printing business.
RAMAYANAM RAMALAKSHMI: CRISIL Assigns B Rating to INR4.75cr Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
bank facilities of Ramayanam Ramalakshmi (RR).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.75 CRISIL B/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 1.50 CRISIL B/Stable (Assigned)
Working Capital
Term Loan 0.75 CRISIL B/Stable (Assigned)
The rating reflects RR's modest profitability, risks inherent in
the seafood industry, and weak financial risk profile. These
weaknesses are partially offset by its extensive industry
experience of the promoters, efficient working capital cycle and
sound operating efficiency.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest profitability and its susceptibility to risks inherent in
the seafood industry: RRs business profile is constrained by its
scale of operations in the intensely competitive marine products
industry. Further, shrimp prices depend on the availability of
shrimp during a particular period, therefore margins for the
players in the segment are exposed to volatility in the prices of
shrimp. Revenue registered during the 3 fiscals ended March 31,
2021 remained in the range of INR45-60 crore with operating margin
of 1.5-2.5%; any adverse regulatory changes, such as the levy of
anti-dumping duties by importing countries, can have an adverse
impact on the profitability of the player.
* Weak financial profile: Gearing of 5.17 times and total outside
liabilities to adj tangible networth (TOL/ANW) of 5.17 times for
year ending on 31st March 2021 indicates firm's limited financial
flexibility. RR's debt protection measures have also been at modest
level in past due to low accruals from the operations with interest
coverage and net cash accrual to total debt (NCATD) ratio are at
1.31 times and 0.03 times for fiscal 2021. RR's debt protection
measures are expected to remain at similar level with moderate
accretion to reserves over the medium term.
Strengths:
* Extensive industry experience of the promoters and sound
operating efficiency: The promoters have an experience of over a
decade in marine products industry. This has given them an
understanding of the dynamics of the market and enabled them to
efficiently manage the capital employed, marked by return on
capital employed (RoCE) around 17% in fiscal 2021. The firm is
expected to continue to benefit from the experience of its
proprietor in sustaining its operating efficiency.
* Efficient working capital cycle: Gross current assets were in the
range of 33-42 days over the three fiscals ended March 31, 2021.
GCA is efficient marked by efficient debtor's collection cycle and
low levels of inventory, at 14 days and 19 days respectively in
fiscal 2021. Efficient working capital management remains critical
to liquidity.
Liquidity: Stretched
Bank limit utilisation is high at around 97.92 percent for the past
twelve months ended November 2021. Cash accrual are expected to be
over INR24-26 lakhs per fiscal which are sufficient against term
debt obligation of INR15-25 lakhs over the medium term. Current
ratio is moderate at 1.03 times on March 31, 2021.
Outlook: Stable
CRISIL Ratings believe RR will continue to benefit from the
extensive experience of its proprietor.
Rating Sensitivity Factors
Upward factor
* Sustained improvement in scale of operation and/or sustenance of
operating margin in range of 2-3%, leading to higher cash
accruals.
* Improvement in working capital management leading to cushion in
bank lines.
Downward factor
*Decline in profitability leading to net cash accruals lower than
INR26 lakhs over the medium term.
*Witnesses a substantial increase in its working capital
requirements weakening liquidity & financial profile.
RR established in 2016, is located in Andhra Pradesh. RR is owned &
managed by R.Rama Lakshmi and it is engaged in trading of frozen
seafood products like shrimps.
SUN INDUSTRIAL: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sun
Industrial Automation and Solutions (SIAS) 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 3.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 3, 2020, placed the
rating(s) of SIAS under the 'issuer non-cooperating' category as
SIAS 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. SIAS continues to be
non-cooperative 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 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).
Chennai Based, Sun Industrial Automation and Solutions (SIAS) was
established in the year 2000. Currently, the firm is managed by its
partners Mr. Venkataramanan and Mrs. V Manjula. The firm is engaged
in assembling and trading of Power Factor Meters, Temperature
Indicators and Tachometers by purchasing raw materials like Panels,
Enclosures, and Cables, Lugs and Meters from Schneider Electric
India Private Limited (Purchase 75% of material) and some other
local suppliers. The firm sells its products to L & T
Infrastructure Projects Developments Limited, Megha Engineering and
Infrastructure Limited, Mahindra and Mahindra Limited, Ashok
Leyland Limited and Tamil Nadu Water Supply Board.
TIRUPATI NIRYAT: CARE Keeps B- Debt Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tirupati
Niryat Private Limited (TNPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 2.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated December 7, 2020, placed the
rating(s) of TNPL under the 'issuer non-cooperating' category as
TNPL 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. TNPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 23, 2021, November 2, 2021, November 12, 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).
Tirupati Niryat Private Limited (TNPL), incorporated in July 1993,
was taken over by Mr Aditya Sarda of Kolkata in the year 2006.
Since 2010 the company is engaged in trading of raw jute. Prior to
this the company was engaged in the business of infrastructure and
real estate activities.
VODAFONE IDEA: India to Own 35.8% After Conversion of Dues
----------------------------------------------------------
TechCrunch reports that Vodafone Idea said on Jan. 11 it is giving
the Indian government a 35.8% stake in the company after its board
approved conversion of dues and spectrum auction installments into
equity to save the third-largest telecom operator in the country
from collapsing.
TechCrunch relates that the operator, a joint venture between the
British telecoms group Vodafone and local billionaire Kumar
Mangalam Birla's conglomerate, has been attempting to avoid a
collapse for several years after the arrival of Reliance Jio, which
undercut the competitors with cheap data and free calls offering.
Vodafone Idea, additionally, owed New Delhi dues of roughly $6.76
billion, TechCrunch discloses. Following the conversion into
equity, Vodafone Group's shareholding will be diluted to 28.5%
while Aditya Birla Group's will shrink to 17.8%. The Indian
government will become the largest shareholder in the wireless
telecom operator.
Bharti Airtel, the second largest telecom operator which also owes
dues to the government, said last week it won't be converting the
interest on deferred spectrum related payments and government dues
into equity, according to TechCrunch.
Jan. 11's announcement comes months after the Indian government
gave operators more time to pay dues on a two-decade dispute last
year. TechCrunch says the Indian government and telecom operators
have for a decade disputed how gross revenue should be calculated.
The government has mandated the license and spectrum fee to be paid
by operators as a share of their revenue. Telcos had argued that
only core income accrued from use of spectrum should be considered
for calculation of adjusted gross revenue.
TechCrunch relates that the rescue plan, nonetheless, was critical
to both the telecom operators that have been hurt by the arrival of
Jio, run by Asia's richest man Mukesh Ambani, which has become the
top Indian telecom operator with over 400 million subscribers in
just five years.
Many private phone operators have exited the market, merged with
rivals or filed for bankruptcy in recent years as Jio lured away
subscribers. Vodafone Idea hasn't reported annual profits since
2017, the report notes.
Airtel and Vodafone Idea had sought relief on the $14 billion they
owe the government, a plea the Indian Supreme Court rejected last
year, the report notes. Vodafone Idea executives said in September
last year that the company was hopeful of successfully raising
funds to pay the dues.
Analysts were expecting that Vodafone Idea won't have to resort to
diluting its dues into equity, the report states. "With the recent
~20% tariff hikes and Vi having likely tied up the funding for
repaying the non-convertible debentures maturing between December
2021 and February 2022, its prospects have improved. In our view,
Vi is likely to continue its fund-raising efforts from its
promoters and other investors rather than letting the government
acquire a significant stake," brokerage firm IIFL said on Jan. 10.
Vodafone Idea Limited operates as a telecom service provider. The
Company offers 2G, 3G, and 4G mobile services, as well as mobile
payments, advanced enterprise offerings, and entertainment.
Vodafone Idea serves customers in India.
ZIPPY EDIBLE: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long-term ratings of Zippy Edible Products
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based 2.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Fund-based 14.00 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
ZEPPL was incorporated in August 2013 and is engaged in the
manufacturing of pasta and vermicelli. The commercial production
commenced from April 2015. The unit is located in Jaspur in
Uttarakhand and has a total production capacity of 18,120 Metric
Tons Per Annum. The main raw materials required for manufacturing
semolina which is coarse and is derived by purified wheat middlings
of durum wheat. The company sells its products directly in the
local markets in Uttar Pradesh, Uttrakhand and Delhi under its
brands "Digraono" and "Dilizia.
=========
J A P A N
=========
TOSHIBA CORP: Should Overhaul Board, Japan Pension Fund Says
------------------------------------------------------------
Reuters reports that Toshiba Corp's proposal to split itself into
three companies won't solve its governance issues and the
conglomerate should prioritise an overhaul of its board and
management, said a senior executive at one of Japan's largest
pension funds.
Reuters relates that Ken Hokugo, corporate governance director at
the Pension Fund Association (PFA), said the interests of Toshiba
management and shareholders are "not aligned".
"The most orthodox solution to the discrepancy is to bring onto the
board someone who can monitor and discipline management, and to let
the revamped board to select the new chief executive," he said in
written responses to Reuters queries.
Hokugo declined to comment on how the PFA, which owns an
undisclosed amount of shares in Toshiba, would vote on the
conglomerate's plan to break up into three companies - one for
energy and infrastructure, another for electronic devices and a
third to house its flash memory chip assets, Reuters relays.
Nonetheless, his comments highlight broad shareholder concern about
Toshiba, marking a rare public pronouncement from an influential
Japanese pension fund, part of an industry that typically stays
silent about companies they invest in, according to Reuters.
The PFA, which provides benefits to people who have left their
employee pension programmes, is one of the country's largest
pension funds with JPY12.5 trillion (US$108 billion) in assets.
Reuters says foreign shareholders have, however, been more vocal
about their concern, with several of them having a tense
relationship with Toshiba management after it was found by a
shareholder-commissioned investigation last year to have colluded
with the trade ministry to blunt their influence.
Toshiba has argued its break-up plan is aimed at maximising
shareholder value, the report notes.
Hokugo noted successful turnarounds at Olympus Corp and chip
materials maker JSR Corp, which both invited shareholder ValueAct
Capital to take a board seat. "As a result of overhauls assisted by
a ValueAct partner, their corporate values shot up," he said.
Some Toshiba shareholders have told Reuters they are publicly or
privately pushing the firm to do a more thorough review that would
take into account potential private-equity bids.
Toshiba failed to formally solicit buyout offers during a
five-month strategic review before deciding on the break-up, giving
the impression that a split was a foregone conclusion for
management, Hokugo said, Reuters relays.
He also said it was understandable that some shareholders wanted to
see a private equity deal as taking Toshiba private could allow for
drastic measures that may be not possible for a listed company.
Reuters relates that Hokugo also stressed that it should be up to
shareholders, not management, to decide on the best option to
increase corporate value.
Toshiba plans to hold an extraordinary shareholder meeting in March
to gauge shareholder support for the break-up plan, but the exact
date and what the bar will be for shareholder approval have yet to
be decided, the report says.
Years of accounting scandals and governance issues have seen
Toshiba's market value more than halve to around $18 billion from
an early 2000s peak, Reuters notes.
About Toshiba Corp.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/--
manufactures and markets electrical and electronic products. The
Company's products include digital products such as PCs and
televisions, NAND flash memories, and system LSIs (large-scale
integrated), as well as social infrastructures such as power
generators, medical equipment, and home appliances.
As reported in the Troubled Company Reporter-Asia Pacific on Nov.
18, 2021, S&P Global Ratings has placed its 'BB+' long-term issuer
credit rating on Toshiba Corp. on CreditWatch with negative
implications. At the same time, S&P affirmed its 'B' short-term
issuer credit and commercial paper program ratings.
=====================
N E W Z E A L A N D
=====================
BEN ALLEN: Creditors' Proofs of Debt Due on Feb. 17
---------------------------------------------------
Creditors of Ben Allen Transport Limited, Shodan Investments
Limited, Whitby Financial Services Limited, Sunlight Investments
Limited, and K L R & Company Limited (formerly Wellington
Lightweight Roofing Limited) (in voluntary liquidation) are
required to file their proofs of debt by Feb. 17, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 15, 2021.
The company's liquidators are:
Iain Bruce Shephard
Jessica Jane Kellow
BDO Wellington
Business Restructuring
Level 1, 50 Customhouse Quay
Wellington 6011
ELIJAH BLUE: Commences Wind-Up Proceedings
------------------------------------------
Members of Elijah Blue Limited, on Dec. 21, 2021, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Grant Reynolds
Reynolds & Associates Limited
PO Box 259059
Botany, Auckland 2163
JK'S HOSPITALITY: Creditors' Proofs of Debt Due on Feb. 28
----------------------------------------------------------
Creditors of JK'S Hospitality Limited (trading as Mink Cafe), which
is in voluntary liquidation, are required to file their proofs of
debt by Feb. 28, 2022, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 10, 2022.
The company's liquidators are:
Simon Dalton
Benjamin Francis
Gerry Rea Partners
PO Box 3015, Auckland
=================
S I N G A P O R E
=================
DSN TRADING: Court to Hear Wind-Up Petition on Jan. 28
------------------------------------------------------
A petition to wind up the operations of DSN Trading Links Pte Ltd
will be heard before the High Court of Singapore on Jan. 28, 2022,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Jan. 3, 2022.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road #18-00
AIA Tower
Singapore 048542
TRUST-LINK LOGISTICS: Court to Hear Wind-Up Petition on Jan. 21
---------------------------------------------------------------
A petition to wind up the operations of Trust-Link Logistics Pte
Ltd and Trust-Link Freight & Trade Pte Ltd will be heard before the
High Court of Singapore on Jan. 21, 2022, at 10:00 a.m.
Trust-Link Freight & Trade Pte. Ltd filed the petition against the
company on Dec. 16, 2021.
The Petitioner's solicitors are:
Coleman Street Chambers LLC
77 High Street
#03-13/14 High Street Plaza
Singapore 179433
=====================
S O U T H K O R E A
=====================
SSANGYONG MOTOR: Mahindra & Mahindra Won't Get Proceeds From Sale
-----------------------------------------------------------------
The Hindu BusinessLine reports that the proposed sale of the
troubled Korean SUV maker SsangYong Motor Company (SYMC) won't
fetch its largest shareholder Mahindra & Mahindra (M&M) any
proceeds. SYMC has been under a court-led rehabilitation process
since December 2020.
BusinessLine says M&M has been informed by a court-appointed
receiver that a consortium led by South Korean electric bus maker
Edison Motors Co. has agreed to acquire SYMC for KRW304.858 billion
through a primary equity investment.
"Subject to a rehabilitation plan reflecting the terms of the
Edison Motors Co's investment being approved at an interested
parties' meeting of SYMC which is expected to take place in some
months from now and pursuant to primary investment by Edison Motors
Co. and certain expected capital restructuring undertaken as part
of the rehabilitation process of SYMC, the company's holding in
SYMC will reduce," M&M said in a statement.
BusinessLine relates that the Edison-led consortium has asked for a
stake of 95 per cent in SYMC against their investment and SYMC has
agreed to make best efforts to meet the said request.
While M&M holds 74.65 percent in SYMC, the Mumbai-based company
ceased consolidating SYMC and its subsidiaries as subsidiaries from
December 28, 2020 and has classified it as discontinued operations.
SYMC and its four subsidiaries, however, are considered as
subsidiaries of M&M under the Companies Act, 2013.
"The Company will not receive any consideration on account of the
proposed primary investment being made by a consortium led by
Edison Motors Co in SYMC," M&M clarified.
The offer made by the Edison-led consortium is nearly the same as
M&M's purchase price inked in late 2010. The Mumbai-based SUV
specialist had paid INR2,100 crore ($462 million at the then
exchange rates) for a 70 per cent stake in SYMC. The SYMC buyout
was the biggest outbound deal by M&M.
During FY20, M&M wrote off investments of around INR2,000 crore it
made in SsangYong after putting its entire stake in the Korean
company for sale in February that year, the report says. Also, in
April 2020, M&M announced that it will not make any further
investments in SYMC and declined SYMC's request for fund infusion
following the business disruption caused by the Covid-19 pandemic.
About SsangYong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of Rexton Sports, Korando,
Korando Sports, Korando Turismo, Tivoli, Tivoli Air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
Mahindra & Mahindra Ltd. acquired a 70% stake in SsangYong for
KRW523 billion in 2011 and now holds a 74.65% stake in the
carmaker.
On Dec. 21, 2020, SsangYong Motor filed for court receivership as
it struggles with snowballing debts amid the COVID-19 pandemic,
according to Yonhap News Agency. The decision comes after SsangYong
Motor failed to pay KRW60 billion (US$54.8 million) worth of debts
to its three creditor banks.
On April 15, 2021, SsangYong Motor Co. was placed under court
receivership as its Indian parent Mahindra & Mahindra failed to
attract an investor amid the prolonged COVID-19 pandemic and its
financial status is further worsening.
SsangYong and its lead manager, the EY Hanyoung accounting firm,
recently selected a local consortium led by Edison Motors Co. as
the preferred bidder for the debt-laden carmaker.
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