/raid1/www/Hosts/bankrupt/TCRAP_Public/220117.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 17, 2022, Vol. 25, No. 6
Headlines
A U S T R A L I A
SYDNEY COACH: Commences Wind-Up Proceedings
TASMANIAN CONSTRUCTIONS: Enters Into Voluntary Liquidation
UMI SUSHI: Second Creditors' Meeting Set for Jan. 24
H O N G K O N G
R&F PROPERTIES: S&P Downgrades LT Issuer Credit Rating to 'SD
SHIMAO GROUP: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
I N D I A
ANI TECHNOLOGIES: S&P Assigns 'B-' Long-Term ICR, Outlook Stable
ARABIAN PETROLEUM: Ind-Ra Gives BB+ Issuer Rating, Outlook Stable
GOMATHA COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
HARI KRIPA: ICRA Keeps D Debt Ratings in Not Cooperating
HARIDARSHAN JEWELLERS: ICRA Keeps D Ratings in Not Cooperating
HIMALAYA FOOD: ICRA Keeps D Debt Ratings in Not Cooperating
KAFILA HOSPITALITY: Ind-Ra Gives B+ Issuer Rating, Outlook Stable
KHAYA SOLAR: ICRA Withdraws D Rating on INR54.20cr LT Loan
KHODIYAR OIL: ICRA Keeps D Debt Ratings in Not Cooperating
KOMARLA HATCHERIES: Ind-Ra Moves BB- Rating to Non-Cooperating
LANGTA BABA: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
LMJ INTERNATIONAL: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
M GANESH: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
MALLARD INKS: Insolvency Resolution Process Case Summary
MAXWORTH PLYWOODS: ICRA Keeps D Debt Ratings in Not Cooperating
MULTISTONE GRANITO: ICRA Keeps D Debt Ratings in Not Cooperating
NESTOR PHARMA: ICRA Withdraws C+ Rating on INR51cr Cash Debt
PROTAC FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
RAAJCO SPINNERS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
RAGHUVANSHI FIBERS: ICRA Keeps D Debt Ratings in Not Cooperating
S.S. CONSTRUCTION: ICRA Keeps B- Debt Ratings in Not Cooperating
SAI BALAJI SPONGE: Insolvency Resolution Process Case Summary
SARVALOKA TEXTILES: Ind-Ra Gives BB Issuer Rating, Outlook Stable
SHIV COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
SOHAM PHALGUNI: ICRA Withdraws B- Rating on INR35.23cr Loan
SOHAM RENEWABLE: ICRA Withdraws B- Rating on INR38.70cr Loan
SUDARSHAN TV: ICRA Keeps D Debt Ratings in Not Cooperating
THARU & SONS: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating
VIKAS COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
VISHWARAJ SUGAR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
I N D O N E S I A
REASURANSI NASIONAL: Fitch Lowers IFS Rating to 'BB-', Outlook Neg
N E W Z E A L A N D
LOVIN LOCAL: Creditors' Proofs of Debt Due on Feb. 7
S I N G A P O R E
EIGHT DEVONSHIRE: Court to Hear Wind-Up Petition on Jan. 28
SILVERCLOUD ENERGY: Creditors' Meetings Set for on Jan. 28
- - - - -
=================
A U S T R A L I A
=================
SYDNEY COACH: Commences Wind-Up Proceedings
-------------------------------------------
Members of Sydney Coach & Bus Tours Pty Ltd (formerly traded as
"SCBT Sydney Coach & Bus Tours"), on Jan. 14, 2022, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Stephen Wesley Hathway
Helm Advisory
Suite 2, Level 16
60 Carrington Street
Sydney, NSW 2000
Email: stephen.hathway@helmadvisory.com.au
TASMANIAN CONSTRUCTIONS: Enters Into Voluntary Liquidation
----------------------------------------------------------
NCA NewsWire reports that a woman who lost tens of thousands of
dollars to home builder Hotondo Homes has described the ordeal as
"absolutely horrific" amid revelations the Hobart franchise has
been liquidated.
Hotondo Homes in Hobart has entered receivership and left as many
as 80 contractors and 40 customers in limbo with unfinished homes
following speculation a closure was imminent, NCA NewsWire
relates.
Tasmanian Constructions, which owns the Hotondo Homes franchise in
Hobart, on Jan. 12 informed the Australian Securities and
Investments Commission (ASIC) that it was closing down.
The company had decided at a general meeting on January 4 to wind
up operations and appoint Jarvis Lee Archer of Revive Financial as
liquidator, NCA NewsWire discloses citing ASIC notice.
There are estimated liabilities of more than $1 million, not
including amounts claimed by customers.
Customer Katrina Phillips, who was building a home with Hotondo in
Magra, northwest of Hobart, paid the company AUD64,000 just one
month before it went under.
Ms Phillips, who lost her previous home to bushfires in 2019, told
ABC News that the build was meant to be completed by November
2021.
She attempted to delay payment to the company until the build
reached a certain stage but had been hounded for payment.
"There's not even a power point in the place, there's no bathroom
done, there's no carpet or tiles done anywhere . . . the ceiling on
the veranda hasn't been done," she said. "It's just horrific.
Absolutely horrific.
Dozens of construction projects have reportedly been left in limbo
and clients left out of pocket as a result of the liquidation
The Mercury reported a customer of the company received an email on
Jan. 12 stating that Hotondo Homes was placed into liquidation.
"We understand that the company was in the process of constructing
a residential dwelling for you," the email read. "We are currently
working with the company's staff and contractors to understand the
current status of each contract and the options available to you."
The company's liquidator Jarvis Archer, from Revive Financial, said
it was unclear whether creditors would get their money back.
He confirmed around five employees were also short of entitlements
such as superannuation.
Available assets are being collected and sold and the investigation
now is examining the company's affairs and causes of financial
failure.
"The director advised that despite the company's contracts being
profitable, delays to planning and construction stages, in
particular due to difficulty sourcing building materials, meant
projects couldn't progress as planned," the report quotes
Mr. Archer as saying.
"Consequently, the company was slower to reach progress milestones
and issue invoices, severely impacting cashflow and its ability to
continue operating.
"We have been obtaining information regarding the affairs and
financial position of the business and dealing with various
stakeholders."
UMI SUSHI: Second Creditors' Meeting Set for Jan. 24
----------------------------------------------------
A second meeting of creditors in the proceedings of UMI SUSHI AND
BAR PTY LTD has been set for Jan. 24, 2022, at 3:30 p.m. via
virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 21, 2022, at 5:00 p.m.
Clifford John Sanderson of Restructuring Works Pty Ltd was
appointed as administrator of Umi Sushi on Dec. 8, 2021.
=================
H O N G K O N G
=================
R&F PROPERTIES: S&P Downgrades LT Issuer Credit Rating to 'SD
-------------------------------------------------------------
S&P Global Ratings lowered our long-term issuer credit rating on
R&F Properties (HK) Co. Ltd. to 'SD' from 'CC'. S&P affirms the
rating on Guangzhou R&F Properties Co. Ltd. at 'CC' as it is not a
guarantor of R&F HK.
S&P said, "We lowered the rating on R&F HK following the completion
of the company's tender offer at a discount, and with a maturity
extension, for its US$725 million senior unsecured notes due on
Jan. 13, 2022.
"We view the transaction as distressed restructuring tantamount to
a default because R&F HK has insufficient resources and limited
funding options to repay the maturing notes in whole in the absence
of the transaction. Also, investors are being paid less than
originally promised due to the six-month maturity extension and the
tender price being 17% below par for one of the offer options."
The rating on Guangzhou R&F Properties Co. Ltd. remains 'CC',
because the company is a keepwell provider of the bond, not a
guarantor.
S&P said, "We will further review the credit profiles of Guangzhou
R&F and subsidiary R&F HK after we reassess the companies'
financial and liquidity positions. We will also reassess Guangzhou
R&F's parent support to R&F HK. The group companies still have
sizable onshore and offshore bond maturities, while the group faces
several hurdles to substantially improve its weak liquidity.
"The negative outlook on Guangzhou R&F reflects our view that the
company is highly vulnerable to default on its outstanding
obligations.
"We will reassess Guangzhou R&F's and R&F HK's financial and
liquidity position soon, based on the amount tendered and extended.
The reassessment will also include Guangzhou R&F's parent support
to R&F HK."
SHIMAO GROUP: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' long-term issuer credit rating
on Shimao Group Holdings Ltd. and the 'CCC+' issue rating on the
company's senior unsecured notes due in 2022, at the company's
request. All ratings were on CreditWatch with negative implications
at the time of the withdrawal.
=========
I N D I A
=========
ANI TECHNOLOGIES: S&P Assigns 'B-' Long-Term ICR, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issuer credit rating
to India-based ANI Technologies Pte. Ltd. (ANI Tech) and its 'B-'
issue rating to the senior secured loan issued by wholly owned
subsidiary Ola Netherlands B.V.
The stable outlook reflects S&P's view that ANI Tech should have
adequate liquidity buffer to withstand operating losses amid
uncertain operating conditions due to the ongoing pandemic and its
growth aspirations in international markets over the next two to
three years.
ANI Technologies, the operator of ride-hailing platform OLA Cabs,
is likely to incur negative operating cash flow over the next 24
months as the company invests in its international mobility
operations while continuing to recover from the COVID-19 pandemic.
S&P said, "The rating reflects our expectation that ANI Tech's
liquidity will cover the company's loss-making operations until at
least fiscal 2024 (ending March 31, 2024). ANI Tech's operations
should gradually strengthen and turn EBITDA positive by fiscal
2024. We estimate the company's annual EBITDA losses to be at least
Indian rupee (INR) 5 billion over the next two years. Together with
planned investments in its business, the company is likely to
report negative annual free operating cash flow of about INR14
billion over the same period.
"As of March 31, 2021, ANI Tech had INR22.3 billion in cash and
cash equivalents, which its recently issued US$500 million term
loan B will bolster. We project the company to have sufficient
liquidity to withstand cash burn until it turns profitable by
fiscal 2024. According to our base case, we forecast the company
will maintain a cash balance in excess of INR25 billion before it
generates positive EBITDA in fiscal 2024. This projection includes
the INR8.2 billion the company raised in December 2021, from a
pre-IPO round of capital raising, and no further cash proceeds from
the capital raising which has yet to close.
ANI Tech's record of strong support from investors and periodic
capital raising supports its liquidity position. The company's
ample cash balance reflects ongoing support from institutional
investors over the past decade, from which it has raised almost
US$2.6 billion. This is despite the company's cash burn over the
same period. In our view, ANI Tech's record of raising fresh
equity, including the recent pre-IPO capital raising, signals
investors' confidence in, and backing of, the company's eventual
operational turnaround. ANI Tech also plans its IPO in the first
half of fiscal 2023, which if successful, could raise additional
cash funding.
S&P said, "ANI Tech has heavily relied on funding from investors in
the form of compulsorily convertible preference shares (CCPS),
which we consider as debt-like. While a successful IPO will result
in CCPS being converted into equities, CCPS accounts for almost all
of the company's adjusted debt, which we estimate at INR185 billion
as of the end of fiscal 2021. Post the term loan issuance, we
project the CCPS to be 80% of the company's adjusted debt. We treat
the CCPS as debt in our financial ratios due to the lack of
permanence, given the presence of investor exit rights in the
absence of an IPO, even though we view the economic incentive to do
so as limited. However, our treatment of CCPS as debt does not have
an impact on the rating, which at this level is driven by the
company's liquidity position, rather than balance sheet leverage.
ANI Tech has a dominant market position in India's ride-hailing
industry, which underpins its earnings potential. The company is
the top ride-hailing platform operator in India, with a 60% market
share (by number of rides booked; according to Frost & Sullivan) in
calendar 2020. It offers various modes of transport services on its
platform, which encourages higher user stickiness. S&P sid, "We
expect ANI Tech's India mobility segment to be the key driver for
the company to attain profitability. Despite the mobility
restrictions in fiscal 2021, the segment reported a modest growth
in EBITDA (before corporate expenses) to INR2.1 billion, 18% higher
than in fiscal 2020." Due to the nationwide lockdown between
April–July 2020, the company's gross merchandise value shrunk to
0%-20% of pre-pandemic levels (February 2020) over the same period,
which highlights the risk of further movement restrictions from the
pandemic.
S&P said, "In our view, the company benefits from a growing middle
class in India, the still-developing infrastructure in several
Indian cities, and potential changes in consumer preferences due to
safety concerns stemming from the COVID-19 pandemic. That said, the
business remains exposed to evolving regulations and continued
risks of potential restrictions due to the pandemic over the next
12–18 months. While competition is intense, we believe its
nearest competitor Uber Technologies Inc., like OLA, is focusing on
profitability and shareholder returns. This will likely lead to
rational pricing unless disrupted by a new entrant.
"Having said that, we view Uber as a key competitor of ANI Tech
within the Indian mobility segment and overseas operations. Besides
being a close contender in market position domestically, Uber also
has a dominant market share in overseas markets where ANI Tech
intends to grow its presence. As a result, ANI Tech may have to
increase marketing and advertising spending, should Uber also do
so, resulting in intensifying competition. However, we view the
likelihood of increased spending to be low because Uber has shifted
its focus to attaining profitability, while ANI Tech's target is
toward attaining positive EBITDA by fiscal 2023.
"We expect ANI Tech's growth aspirations in overseas mobility
markets and adjacent verticals to drag on profitability even as the
Indian mobility segment turns profitable. The company intends to
increase its presence in international markets such as the U.K.,
Australia, and New Zealand, where Uber is the dominant player
within the ride-hailing industry. We believe the company's strategy
of achieving 20%-40% market share would require increased levels of
marketing, discounts, and incentive spending to increase brand
awareness, and platform user adoption rate. Furthermore, ANI Tech
intends to organically grow India's non-mobility segment, which
currently centers around the sale of food via cloud kitchens in
tier-1 cities, vehicle commerce operations, and digital financial
services. Cumulatively, we estimate this would consume about INR23
billion of cash over the next two to three years. Nonetheless,
rising profitability from the India mobility segment will tip the
company into consolidated profitability in fiscal 2024, according
to our base case.
"In our view, regulatory risk continues to pose uncertainty for ANI
Tech, given the industry's infancy. The company's disruptive
business model, particularly to the taxi industry is subject to
increased regulations, which could constrain the company's
profitability. These include recent restrictions imposed in India
that limit the company's gross take rate (GTR) of ride bookings to
a cap of 20% and restrict driver partners from working beyond 12
hours in a day with a ride-hailing app operator. ANI Tech's India
mobility segment had a GTR of 19.3% in fiscal 2021, which compares
with an average GTR of 22% over the prior two years. In more mature
markets for ride-hailing services outside India, operators face a
regulatory push to recognize its driver partners as employees,
instead of contractors. Although this is not an imminent risk in
India, a shift in regulatory stance to recognize the driver
partners as employees could result in increased compliance costs
and put pressure on ANI Tech's cost structure.
"ANI Tech will face currency risk until its overseas operations
generate sufficient foreign currency cash flow. We see some risk in
ANI Tech's capital structure stemming from unhedged currency risk.
The bulk of its earnings stream is denominated in Indian rupees
while most of the interest-bearing debt after the issuance will be
denominated in U.S. dollars. While the company's projected growth
in the international market could potentially diversify and provide
some natural hedge, we believe this is unlikely over the next two
years, given the company's relatively nascent international
operations.
"We equalize the rating on the term loan with our issuer credit
rating on ANI Tech. In our opinion, the issuer Ola Netherlands B.V.
is an integral part of India-based ANI Tech. The parent will use
Ola Netherlands as a vehicle to augment its international mobility
growth aspirations. We believe this is in line with ANI Tech's
strategy to achieve economies of scale and geographically
diversified streams of revenue. We therefore believe the
Netherlands subsidiary will continue to play an important role in
ANI Tech's growth strategy. While the rating on the secured loan is
not derived directly from the guarantee, we view the guarantee as a
strong signal of support from the guarantor group, which
encompasses ANI Tech.
"The stable outlook reflects our expectation that ANI Tech will
have sufficient liquidity over the next 24 months to support its
business improvement and growth strategies to achieve positive
profitability by fiscal 2024. The outlook also incorporates our
view that a potential failure to go public will not result in CCPS
holders exiting.
"We may lower the rating if ANI Tech's cash balance falls below its
expected cash burn without a plan to raise more capital or if the
path toward profitability by fiscal 2024 is delayed, which could
raise risks around the sustainability of its capital structure over
the next 24 months. This could happen if the company is unable to
improve its operational performance and its cash burn is faster and
more protracted than we expect.
"An upgrade is unlikely over the next 12 to 24 months because of
challenging operating conditions and ANI Tech's weak credit
measures. However, we would consider raising the rating if the
company's operating performance is significantly better than we
expect. Increased recurring active users, higher average
transaction values, and lower merchant and driver incentives that
result in stronger competitive positioning and earnings could
indicate such an assessment."
A higher rating would be reliant on a permanent improvement in ANI
Tech's capital structure, improved currency risk management, and
ample liquidity, with EBITDA interest coverage well above 2x.
ANI Tech is a mobility services firm incorporated in India that
operates the ride-hailing platform OLA Cabs. The company has
operations in India, the U.K., Australia, and New Zealand, with
India making up more than 90% of its revenue in fiscal 2021. Other
than the mobility segment, ANI Tech also has non-mobility segments
that focus on vehicle commerce, the provision of digital financial
services, as well as sale of food via its cloud kitchen model.
Founded in 2011, the company is a separate legal entity from sister
company Ola Electric, which are both associated with the founder,
Bhavish Aggarwal. ANI Tech's largest CCPS holders include Softbank,
Tencent, and Tiger Global. In fiscal 2021, the company generated
net revenue of about INR9.8 billion.
ARABIAN PETROLEUM: Ind-Ra Gives BB+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Arabian Petroleum
Limited (APL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR170.00 mil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ rating; and
-- INR39.30 mil. Term loan due on January 2025 assigned with
IND BB+/Stable rating.
KEY RATING DRIVERS
The rating reflects APL's small scale of operations even as its
revenue improved to INR1,099.87 million in FY21 (FY20: INR839.24
million), due to an increase in the demand and a wider customer
base. During 8MFY22, APL booked a revenue of INR1,220.7 million. In
FY22, Ind-Ra expects the revenue to increase yoy on account of a
further rise in the demand in the domestic market along with an
increase in the exports.
The ratings factor in APL's healthy EBITDA margin even as it
declined to 5.61% in FY21 (FY20: 6.29%) with a return on capital
employed of 15.5% (FY20:19.3%). In FY21, the EBITDA margin declined
due to the company's inability to pass on the escalated price of
the raw materials to its customers on account of high resistance
observed from the customers on account of the hike in the price of
the products in the past. In FY22, Ind-Ra expects the EBITDA margin
to remain at similar levels, backed by similar line of operations.
Liquidity Indicator - Stretched: APL's average maximum utilization
of fund-based limits was 95% and its non-fund-based limits were
fully utilized during the 12 months ended 30 November 2021, with no
instance of overutilization. The cash flow from operations turned
negative at INR38.87 million in FY21 (FY20: INR21.60 million) due
to a stretch in the working capital requirement. Furthermore, the
free cash flow remained negative at INR54 million (FY20: INR27.97
million). The net working capital cycle was moderate at 98 days in
FY21 (FY20: 77 days) due to an elongation in the inventory holding
period. The cash and cash equivalents stood at INR1.71 million at
FY21 (FY20: INR9.45 million).
Furthermore, APL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
However, the ratings also reflect APL's comfortable credit metrics
with an interest coverage (operating EBITDA/gross interest
expenses) of 5.03x in FY21 (FY20: 5.16x) and net leverage (adjusted
net debt/operating EBITDAR) of 3.53x (2.95x). In FY21, the interest
coverage deteriorated marginally due to an increase in the interest
cost and the net leverage declined due to a rise in the total debt.
In FY22, Ind-Ra expects the credit metrics to improve because of an
improved the scale of operation.
The ratings are supported by the promoters' nearly four decades of
experience in the oil and lubricant industry. This has facilitated
the company to establish strong relationships with customers as
well as suppliers.
RATING SENSITIVITIES
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics with the interest
coverage below 2.5x and/or pressure on the liquidity position,
could lead to a negative rating action.
Positive: An increase in the scale of operations, along with
maintaining the overall credit metrics and an improvement in the
liquidity profile, all on a sustained basis, could lead to a
positive rating action.
COMPANY PROFILE
Incorporated in 2006, Maharashtra-based APL is engaged in the
manufacturing of industrial and automotive lubricants, coolants and
grease under the brand of SPL and Arzol.
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/ COOPERATING; Rating continues
CC to remain under 'Issuer Not
Cooperating' category
Long-term– 4.00 [ICRA]B (Stable); ISSUER NOT
Fund based/ COOPERATING; Rating continues
TL 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.
HARIDARSHAN JEWELLERS: ICRA Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shri
Haridarshan Jewellers in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 10.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based/ Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short Term- 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continue to remain under
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.
Shri Haridarshan Jewellers (SHJ) was established in 1990 by Mr.
Kaushik Patadia. The firm is engaged in manufacturing and wholesale
of gold jewellery with operations based in Ahmedabad. The firm
currently operates out of its wholesale unit based in C.G. Road.
SHJ also owns three workshops situated in Manekchowk which employs
about 100 artisans who manufacture gold jewellery for SHJ on job
work basis.
HIMALAYA FOOD: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Himalaya
Food International Ltd. in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 61.64 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based/ Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term– 136.11 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based/ Rating continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 7.00 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continue to remain under
the 'Issuer Not Cooperating'
category
Short Term- 1.25 [ICRA]D; ISSUER NOT COOPERATING;
Non Fund Based Rating continue to remain under
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.
Himalya International Limited (HIL) was promoted by Mr. Man Mohan
Malik and Mr. Sanjay Kakkar in 1992 as Himalya Cement & Calcium
Carbonate Private Limited (HCC) for manufacturing precipitated
calcium carbonate and hydrate of lime. HCC was reconstituted as a
public limited company with its current name in 1994. In 1998-99,
these operations were discontinued. Currently, HIL cultivates
mushrooms and manufactures canned mushrooms, canned soups, ready to
eat and other processed food items, cottage cheese, yoghurt,
sweets, snacks, and breaded appetizers (French Toast Sticks, Bites,
Veg Patty, Samosa). HIL has its manufacturing facility in Sirmaur
(Himachal Pradesh) and Mehsana (Gujarat).
KAFILA HOSPITALITY: Ind-Ra Gives B+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kafila Hospitality
and Travels Private Limited (KHTPL) a Long-Term Issuer Rating of
'IND B+'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR425 mil. Fund-based limit assigned with IND B+/Stable
rating.
KEY RATING DRIVERS
The ratings reflect KHTPL's small scale of operations as the
revenue declined to INR140.48 million in FY21 (FY20: INR316.12
million), due to COVID-19-led lockdown as the company could only
book sales for three months during the year. During 8MFY22, KHTPL
booked a revenue of INR194.6 million. The management expects the
revenue to improve in FY22 on account of an improved execution of
orders post the COVID-19 outbreak.
The ratings also factor in KHTPL's modest EBITDA margin of 20.4% in
FY21 (FY20: 10.94%) with a return on capital employed of 5.5%
(8.1%). In FY21, the EBITDA margins improved due to lower
operating expenses. In FY22, Ind-Ra expects the EBITDA margin to
decline on increased operating expenses.
The ratings also reflect KHTPL's modest credit metrics with
interest coverage (operating EBITDA/gross interest expenses) of
1.12x in FY21 (FY20: 0.92x) and net leverage (adjusted net
debt/operating EBITDAR) of 14.93x (6.08x). In FY21, the interest
coverage improved due to a decline in the interest expense and the
net leverage deteriorated due to an increase in the total debt. In
FY22, Ind-Ra expects the credit metrics to improve due to a rise in
the absolute EBITDA as result of higher revenue.
Liquidity Indicator - Stretched: KHTPL's average maximum
utilization of the fund-based limits was 85% during the 12 months
ended November 2021. The cash flow from operations stood at
negative INR224.92 million in FY21 (FY20: negative INR31.47
million) and the free cash flow stood at negative INR225.10 million
(negative INR31.47 million). The net working capital cycle improved
to negative 19 days in FY21 (FY20: negative 12 days) due to an
increase in the creditor days to 35 (18). The cash and cash
equivalents were INR70.75 million at FYE21 (FYE20: INR97.81
million). KHTPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. It had availed a guaranteed emergency credit line of
INR30 million in March 2021.
However, the ratings are supported by the promoters' more than 10
years of experience and benefit from the company's established
network of agents and healthy relationships with domestic
airlines.
RATING SENSITIVITIES
Negative: A significant decline in the scale of operations, leading
to deterioration in the credit metrics with the interest coverage
below 1.1x or further deterioration in the liquidity position could
lead to a negative rating action.
Positive: An increase in the scale of operations, along with an
improvement in the credit metrics and liquidity, could lead to
positive rating action.
COMPANY PROFILE
Based in Delhi, KHTPL was established in 2008 by Pradeep Chadda. It
undertakes airline ticket and hotel bookings through the
business-to-business and business-to-consumer models, and runs a
27-room guest house based in Delhi. The company has also entered
into the railway booking segment.
KHAYA SOLAR: ICRA Withdraws D Rating on INR54.20cr LT Loan
----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Khaya Solar Projects Private Limited based on the No Objection
Certificate from the Banker and in accordance with ICRA's policy on
withdrawal and suspension. However, ICRA does not have information
to suggest that the credit risk has changed since the time the
rating was last reviewed. The Key Rating Drivers, Key Financial
Indicator, Liquidity Position, Rating Sensitivities, and the
related instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 54.20 [ICRA]D; Withdrawn
Fund Based–
Term Loan
Khaya Solar Projects Private Limited (KSPL) is a special purpose
vehicle (SPV), promoted by Lanco Solar Energy Private Limited
(LSEPL, subsidiary of Lanco Infratech Limited) and Lanco Infratech
Limited for setting up 5 Megawatts (MW) solar power plant in the
Jaisalmer district of Rajasthan. The project has been set up under
center's Jawaharlal Nehru National Solar (JNNSM) Policy with NTPC
Vidyut Vyapar Nigam Limited (NVVN) being the designated nodal
agency to implement the policy framework.
The SPV has entered into a 25-years power purchase agreement (PPA)
with NVVN. The feed in tariff is INR11.50 per unit for entire term
of the agreement (i.e. 25 years). The total project cost was
INR82.2 crores which was funded in a debt-equity ratio of 2:1.
KHODIYAR OIL: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Khodiyar Oil Industries in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based: 15.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continue to remain under
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.
Shree Khodiyar Oil Industries (SKOI) was established as a
partnership firm in 1997 as a cottonseed crushing unit with the
operations located at Jambuda, Gujarat. However, the present
management had purchased the firm in the year 2003 and later it has
augmented its operating sphere by backward integration into cotton
ginning. The manufacturing facility of the firm is currently
equipped with 24 ginning machines and 8 expellers with an installed
capacity of 8,000 TPA and 1,950 TPA of ginned cotton and wash oil
respectively. From November 2013, the firm has diversified in
groundnut seed crushing also. The firm is currently headed by Mr.
Sanjay J Lakkad along with other six partners, having an experience
of more than three decades in cotton and ginning activities.
KOMARLA HATCHERIES: Ind-Ra Moves BB- Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Komarla
Hatcheries' (KH) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR166.0 mil. Term loan due on May 2026 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR95.0 mil. Fund-based facilities migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 7, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
KH is a Bengaluru-based partnership firm engaged in the poultry
business in Karnataka, Tamil Nadu and Kerala.
LANGTA BABA: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sri Langta Baba
Steels Private Limited's (SLBSPL) Long-Term Issuer Rating at 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR350 mil. (increased from INR275 mil.) Fund-based limit
affirmed with IND BB+/Stable/IND A4+ rating;
-- INR75 mil. Non-fund-based limit affirmed with IND A4+ rating;
and
-- INR10 mil. (reduced from INR85.5 mil.) Term loan due on June
2026 affirmed with IND BB+/Stable rating.
KEY RATING DRIVERS
The affirmation reflects SLBSPL's medium scale of operations,
despite the revenue improving 29.04% yoy to INR2,436.37 million due
to an increase in the sales volume backed by a rising end-product
demand. Ind-Ra expects the revenue to rise in FY22 as well, in view
of the 8MFY22 figure of around of INR2,090.45 million. SLBSPL has
key sales presence in Jharkhand; Bihar; West Bengal and Odisha. It
has an existing dealer network of over 700 that helps the entity
reach out to different market sections and segments that helps
maintain continuous orders.
The ratings further reflect the company's continued average EBITDA
margin, which fell to 5.46% in FY21 (FY20: 6.65%) mainly due to an
increase in the raw material prices. The return on capital employed
for FY21 was 13.6% (FY20: 14.4%). Ind-Ra however expects the
margins to improve for FY22 in view of 8MFY22 figure of around
7.27%.
Liquidity Indicator - Stretched: The company's average use of its
fund-based limits stood at 90.09% during the 12 months ended
November 2021. The cash flow from operations deteriorated to
INR87.9 million in FY21 (FY20: INR112.10 million) due to
unfavorable changes in working capital. Furthermore, the free cash
flow deteriorated to negative INR48.54 million in FY21 (FY20:
INR36.85 million). The net working capital cycle remained elongated
113 days in FY21 (FY20: 132 days) due to high inventory days of 140
(144 days).The cash and cash equivalents stood at INR47.93 million
in FY21 (FY20: INR64.09 million). However, SLBSPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
The ratings however are supported by the company's comfortable
credit metrics, supported by a low debt. The interest coverage
(operating EBITDA/gross interest expense) was 4.88x in FY21 (FY20:
3.19x) and net leverage (net debt/operating EBITDA) was 2.3x
(2.36x). The improvement in the ratios was driven by a rise in the
absolute EBITDA to INR133.13 million in FY21 (FY20: INR125.65
million), driven by better realizations, volumes and business
prospects. Ind-Ra expects the credit metrics to improve in FY22 as
well, due to steady growth in the absolute EBITDA.
The ratings are also supported by the company's promoters' more
than a decade of experience in the steel industry.
RATING SENSITIVITIES
Positive: A positive rating action could result from a substantial
rise in the revenue and the EBITDA margin, along with an
improvement in the overall credit metrics, on a sustained basis.
Negative: A negative rating action could result from a decline in
the scale of operations, leading to deterioration in the overall
credit metrics, with the interest coverage reducing below 2.5x, on
a sustained basis.
COMPANY PROFILE
Incorporated in 2005, SLBSPL runs a fully automatic steel
re-rolling mill in Jharkhand to manufacture MS billets (90,000
metric tons per annum) and thermo-mechanically treated bars (90,000
metric tons per annum). It also has a slag crushing capacity of
7,200 metric tons per annum. It sells its products under the brand
name TUFCON.
LMJ INTERNATIONAL: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained LMJ
International Limited's (LMJ) Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR1.840 bil. Fund-based limits (Long-term/short-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR3.60 bil. Non-fund-based working capital limits (Short-
term) maintained in non-cooperating category with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 1, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
LMJ International trades agricultural and non-agricultural
commodities in domestic and international markets.
M GANESH: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of M Ganesh
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable)/A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 3.00 [ICRA]B+ (Stable); ISSUER NOT
Fund based/ COOPERATING; Rating continues
CC to remain under 'Issuer Not
Cooperating' category
Long/Short 2.00 [ICRA]B+ (Stable)/[ICRA]A4;
Term-Non Fund ISSUER NOT COOPERATING;
Based 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.
M Ganesh was incorporated as a proprietorship firm in 2004 and is
involved in the business of construction and repair of roads. The
firm is a Class I contractor which undertakes works for government
departments such Public Works Department (PWD), National Highways,
National Bank for Agriculture and Rural Development (NABARD) and
Karnataka Rural Development among others in and around Kolar,
Bangalore and Chikkaballapur regions.
MALLARD INKS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Mallard Inks Private Limited
Galileo no. 2, Shed no. 5
Parvesh Marg
New Friends Colony
Faridabad 121001
HR
Insolvency Commencement Date: January 7, 2022
Court: National Company Law Tribunal, Chandigarh Bench
Estimated date of closure of
insolvency resolution process: July 9, 2022
Insolvency professional: Anruag Nirbhaya
Interim Resolution
Professional: Anruag Nirbhaya
204, Sagar Plaza
Plot No. 19
District Centre
Laxmi Nagar
New Delhi 110092
E-mail: anurag@canirbhaya.com
cirp.mallard@gmail.com
Last date for
submission of claims: January 25, 2022
MAXWORTH PLYWOODS: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Maxworth
Plywoods 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– 3.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based/ Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term/ 3.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term- COOPERATING; Rating continues to
Unallocated 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.
Maxworth Plywoods Private Limited was incorporated in the year 1995
in Visakhapatnam by Mr. Rajiv Agarwal and Ms. Nidhi Agarwal. The
company is engaged in manufacturing of plywood, block boards, flush
doors and is also engaged in trading of veneers, timber and resins
& chemicals.
MULTISTONE GRANITO: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Multistone
Granito (P) Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based: 32.40 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating continue to remain under
the 'Issuer Not Cooperating'
category
Fund Based: 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Working Capital Rating continue to remain under
Limits the 'Issuer Not Cooperating'
category
Non-fund Based 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Bank Guarantee Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-fund Based 0.42 [ICRA]D; ISSUER NOT COOPERATING;
Credit Exposure Rating continues to remain under
Limit '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 2016, Multistone Granito (P) Limited (MGPL)
commenced commercial production from April 2018 with its product
profile comprising double charged vitrified tiles of 600X600 mm and
800X800 mm. MGPL's manufacturing unit is located at Wankaner,
Morbi, the ceramic tile manufacturing hub of Gujarat. MGPL is
equipped to manufacture 73,800 metric tonnes (MT) of tiles per
annum. In FY2018 (eight months of operations), on a provisional
basis, it reported a net loss before depreciation and taxation of
INR6.64 crore on an operating income of INR14.23 crore.
NESTOR PHARMA: ICRA Withdraws C+ Rating on INR51cr Cash Debt
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Nestor Pharmaceuticals Limited at the request of the company and
based on the No Objection Certificate received from its banker.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the rating was last reviewed. The
Key Rating Drivers, Liquidity Position, Rating Sensitivities, Key
financial indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 51.00 [ICRA]C+ ISSUER NOT COOPERATING;
Cash Credit Withdrawn
Non-Fund 16.00 [ICRA]A4 ISSUER NOT COOPERATING;
Based Bank Withdrawn
Guarantee/
Letter of
Credit
Unallocated 8.00 [ICRA]C+/[ICRA]A4; ISSUER NOT
Limits COOPERATING; Withdrawn
Incorporated in 1975 by the Sehgal family, NPL manufactures and
markets a wide range of branded and generic formulations. Nestor
has two umbrella brands under which products are marketed globally
- 'Nestor' which is an established brand and 'Steriheal' which is
being developed as 'hygiene for health' brand.
PROTAC FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Protac
Foods International Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 4.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based/ Rating continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 18.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund Based Rating continue to remain under
Term Loan 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 February 2014, PFIPL started its commercial
operations from July 2016. The company is engaged in processing of
poultry birds for production of dressed and frozen chicken. The
product portfolio of the company consists of fresh chilled chicken,
frozen chicken, chicken cut parts (whole, boneless and portions)
and ready to eat product(marinated chicken pieces). The company's
processing plant is located in Kolar district of Karnataka and has
an installed capacity of processing 6000 birds per hour. However,
with certain capital expenditure yet to undertaken, the current
operational capacity stands at 2500 birds per hour. As per
provisional results for FY2017, the company reported a net loss of
INR5.64 crore on an operating income of INR10.96 crore for the
period from July 2016 to November 2016.
RAAJCO SPINNERS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Raajco Spinners
Private Limited's (RSPL) Long-Term Issuer Rating of 'IND BB-' to
the non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR283.8 mil. Term loan* due on August 2024 migrated to non-
cooperating category and withdrawn;
-- INR230 mil. Fund-based working capital limits** migrated to
non-cooperating category and withdrawn; and
-- INR40 mil. Non-fund-based working capital limits*# migrated to
non-cooperating category and withdrawn.
* Migrated at 'IND BB- (ISSUER NOT COOPERATING)' before being
withdrawn
** Migrated at 'IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
*# Migrated at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
The ratings have been migrated to the non-cooperating category as
the company did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Ind-Ra is no
longer required to maintain the ratings, as the agency has received
no-objection certificates from all the issuer's lenders. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 2015, Tamil Nadu-based RSPL is engaged in yarn
spinning.
RAGHUVANSHI FIBERS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Raghuvanshi Fibers Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]D/[ICRA]D;ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based: 1.50 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating continue to remain under
the 'Issuer Not Cooperating'
category
Fund Based: 25.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continue to remain under
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 2007, Shree Raghuvanshi Fibers Private Limited
(SRFPL) is involved in the ginning and pressing of raw cotton to
process cottonseeds and produce cotton bales, as well as in the
crushing of cottonseeds for the production of cottonseed oil and
oil cake. The company is jointly managed by three directors,
Bhavesh Shelani, Gopal Shelani and Harshad Shelani. The
manufacturing unit of the company is located at Gondal (Gujarat)
and is equipped with 36 ginning machines and 11 expellers. The
manufacturing unit has a processing capacity of ~63,500 metric
tonnes per annum of raw cotton and 95 MT per day of cottonseed
oil.
S.S. CONSTRUCTION: ICRA Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of S.S.
Construction in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B- (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 5.95 [ICRA]B- (Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non-fund based 2.05 [ICRA]B- (Stable); ISSUER NOT
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.
S.S. Construction (SSC) is a proprietorship firm based in
Ghaziabad, Uttar Pradesh and was set up in 2007. The firm is
promoted by Mr. Ravi Chaudhary. SSC undertakes civil construction
work for state and Central Government agencies. It is registered as
an 'A' class contractor with UP State Power Utilities, UPSIDC Ltd,
Kanpur, Ghaziabad Development Authority, Hapur Pilkhuwa Development
Authority, Kanpur Development Authority, Bulandshahr Development
Authority etc. The company has worked in various towns of UP,
including Ghaziabad, Kanpur, Moradabad, Noida, Agra, Meerut,
Bulandshahr, Hapur, Bareilly etc. The firm has completed two small
real estate projects with a saleable area of 13,600 sq. ft. each,
costing INR5.28 crore and INR5.29 crore respectively in February
2017. Project I consists of 16 3BHK flats with sales value of
INR8.0 crore, and project II consists of 24 2BHK flats with the
sales value of INR7.5 crore.
SAI BALAJI SPONGE: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s Sai Balaji Sponge Iron Private Limited
Sy No. 36, Hiredehal Village D
Hirehal Mandalam, Rayadurga Taluka
Anantapur, Andhra Pradesh 515865
India
Insolvency Commencement Date: January 5, 2022
Court: National Company Law Tribunal, Amaravati Bench
Estimated date of closure of
insolvency resolution process: July 4, 2022
(180 days from commencement)
Insolvency professional: Maligi Madhusudhana Reddy
Interim Resolution
Professional: Maligi Madhusudhana Reddy
MMR Lion Corp, 4th floor
HSR Eden, Beside Cream Stone
Road No. 2 Banjara Hills
Hyderabad, Telangana 500034
E-mail: mmreddyandco@gmail.com
Last date for
submission of claims: January 19, 2022
SARVALOKA TEXTILES: Ind-Ra Gives BB Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shree Sarvaloka
Textiles Private Limited (SSTPL) a Long-Term Issuer Rating of 'IND
BB'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR655.00 mil. Term loan due on July 2029 assigned with IND BB
/Stable rating.
The ratings reflect SSTPL's small scale of operations, stretched
liquidity position, healthy EBITDA margins, and comfortable credit
metrics.
KEY RATING DRIVERS
The rating reflects SSTPL's small scale of operations, as indicated
by its revenue of INR64.07 million in FY21 (FY20:INR15.45 million).
In FY21, the revenue surged by a remarkable 314% yoy due to the
increase in job work as well as sales agency commission. In 1HFY22,
SSTPL booked a revenue of INR51.29 million. In FY22, Ind-Ra expects
the revenue to improve further on a yoy basis, led by a continued
increase in agency commission and demand for job work. In addition,
SSTPL is setting up a cotton yarn manufacturing unit in Madurai,
which is likely to commence commercial operations by August 2022.
This would give a significant boost to the revenue in the
subsequent years. This new plant, which would have an installed
capacity of 25,536 spindles, will provide the primary raw material
(cotton yarn in the counts of 50s and 60s) for its associate
concern, Paramount Textile Mills Private Limited.
Liquidity Indicator - Stretched: The cash flow from operations
increased to INR34.39 million in FY21 (FY20: INR1.43 million) due
to an increase in the operating EBITDA by 360% yoy to INR31.03
million. The free cash flow turned positive at INR9.96 million in
FY21 (FY20: negative INR6.81 million). The net working capital
cycle stood negative at 44 days in FY21 (FY20: one day) on account
of an increase in creditor days to 44 days (zero day). The cash and
cash equivalents stood at INR11.82 million in FY21 (FY20: INR1.85
million). The loan repayment is scheduled to start from FY23. SSTPL
has scheduled debt repayments of INR48 million and INR78 million
for FY23 and FY24, respectively. SSTPL does not have any capital
market exposure and relies on banks and financial institutions to
meet its funding requirements.
The ratings are supported by SSTPL's healthy EBITDA margins. The
margin rose to 48.43% in FY21 (FY20: 43.61%) owing to higher
absorption of fixed and variable costs due to the growth in
revenue. The ROCE was 126.5% in FY21 (FY20: 102.5%). During 1HFY22,
SSTPL achieved EBITDA margins of 42.52%. Ind-Ra expects the EBITDA
margin to be fairly stable on a yoy basis in FY22, and then decline
subsequently in FY23 due to an increase in the cost of goods sold
and other expenses post the commencement of its manufacturing
division.
The ratings also benefit from SSTPL's comfortable credit metrics
due to the healthy EBITDA margins. The company turned net cash
positive in FY21 (net leverage (total adjusted net debt/operating
EBITDA) in FY20: 0.96x) due to decrease in debt levels to INR6.63
million (FY20: INR8.32million) and increase in the operating
EBITDA. However, Ind-Ra expects the credit metrics to weaken over
the medium term due to the availing of the term loan for the new
project, which entails a total capex of around INR875 million.
SSTPL plans to fund this project mainly through secured loans worth
INR655 million and remaining through equity, intercorporate loans
and internal accruals.
The ratings derive comfort from the corporate guarantee given by
Paramount Textile Mills. The ratings also factor in the operational
linkages between the entities, as SSTPL caters to the input
requirements of Paramount Textile Mills, and furthermore, the
promoters and chief financial officer are common.
The ratings are also supported by the promoters' experience of 15
years in the textiles industry.
RATING SENSITIVITIES
Negative: Any delays in the commencement of operations and
achievement of stability in the operating performance post
commencement, affecting the company's debt serviceability, along
with the weakening of the credit profiles of any key customers
could lead to a negative rating action.
Positive: The timely commencement of operations and the subsequent
achievement of stable operating profitability could lead to a
positive rating action.
COMPANY PROFILE
SSTPL was incorporated in 2019 in Madurai. The company acts as a
commission agent for its associate concern and is also involved in
job work and sale of indigenous cloths. SSTPL is setting up a new
unit in Madurai.
SHIV COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shiv
Cotton Industries- Tankara in the 'Issuer Not Cooperating'
category. The rating is denoted as [ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based: 1.50 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating continue to remain under
the 'Issuer Not Cooperating'
category
Fund Based: 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continue to remain under
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.
Shiv Cotton Industries (SCI) was established as a partnership firm
in May 2013. SCI commenced its operation in January 2014. The firm
is engaged in ginning and pressing of raw cotton. SCI's
manufacturing facility is located at Tankara, in Rajkot district of
Gujarat and is equipped with 24 ginning machines and one pressing
machine to produce cotton bales and cottonseeds.
SOHAM PHALGUNI: ICRA Withdraws B- Rating on INR35.23cr Loan
-----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Soham Phalguni Renewable Energy Private Limited based on the No
Objection Certificate from the Banker and in accordance with ICRA's
policy on withdrawal and suspension. However, ICRA does not have
information to suggest that the credit risk has changed since the
time the rating was last reviewed. The Key Rating Drivers,Key
Financial Indicator, Liquidity Position, Rating Sensitivities, and
the related instruments are being
withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 35.23 [ICRA]B-(Stable); ISSUER NOT
COOPERATING; Withdrawn
Soham Phalguni Renewable Energy Private Limited (SPREPL) is part of
the Soham group which operates hydro power projects with a capacity
of 53.5 MW under several special purpose vehicles (SPVs). SPREPL
currently operates a 10.5 MW small hydro power project in
Karnataka. The project is a gated diversion weir being built across
the river Phalguni and commenced commercial operations in June
2015. In FY2020 (provisional), the company reported a net loss of
INR0.14 crore on an operating income (OI) of INR7.19 crore compared
with a net loss of INR0.53 crore on an OI of INR6.78 crore in the
previous year.
SOHAM RENEWABLE: ICRA Withdraws B- Rating on INR38.70cr Loan
------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Soham Renewable Energy India Private Limited based on the No
Objection Certificate from the Banker and in accordance with ICRA's
policy on withdrawal and suspension. However, ICRA does not have
information to suggest that the credit risk has changed since the
time the rating was last reviewed. The Key Rating Drivers, Key
Financial Indicator, Liquidity Position, Rating Sensitivities, and
the related instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 38.70 [ICRA]B-(Stable); ISSUER NOT
COOPERATING; Withdrawn
Incorporated in November 1991, Soham Renewable Energy India Private
Limited (SREIPL) is the holding company of Soham group, which
operates hydro power projects with a cumulative capacity of 53.5 MW
in Karnataka. SREIPL operates a mini hydro power project of 6 MW
capacity in Mandya District, Karnataka. The project is a gated
diversion weir built across the river Cauvery and commenced full
scale commercial operations in September 2015. In
FY2020(provisional), the company reported a net loss of INR3.16
crore on an operating income (OI) of INR4.82 crore compared with a
net loss of INR4.78 crore on an OI of INR2.45 crore in the previous
year.
SUDARSHAN TV: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sudarshan
TV Channel Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 16.40 [ICRA]D; ISSUER NOT
COOPERATING;
Fund Based Rating continues to remain under
'Issuer Not Cooperating'
Category
Short-Term
Fund based 3.50 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Unallocated 1.98 [ICRA]D/[ICRA]D; ISSUER NOT
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.
Sudarshan TV Channel Limited (STCL) is a public limited company,
incorporated in 2007 by Mr. Suresh k. Chavhanke and his wife Mrs.
Maya Chavhanke. STCL has an experience of 5 years in the business
of television media. STCL is performing both tasks i.e. collection
of news content as well as broadcasting; however some work of
up-linking and down-linking has been outsourced. Presently, the
company is running two news channels, Surdashshan News from 2007
and A to Z News m from 2009; and one devotional channel, Sai Tv
from 2014. Sudarshan News is concentrating on urban area as well as
rural area and A to Z is concentrating only on urban area.
Sudarshan News channel is available in all over India through DTH
services of Videocon, Dish TV and Big TV as well as through
digitized cable service providers like Den, Hathway, Win etc.
THARU & SONS: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Tharu & Sons'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND BB (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR10 mil. Fund-based limits Migrated to non-cooperating
category with IND BB (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR75 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR115 mil. Proposed non-fund-based limits migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 27, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1998 in Kerala, Tharu & Sons is a partnership firm
engaged in providing laundry services, and cleaning of railway
coaches and railway stations.
VIKAS COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Vikas
Cotton Ginning & Pressing in the 'Issuer Not Cooperating' category.
The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based: 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continue to remain under
the 'Issuer Not Cooperating'
category
Unallocated 5.10 [ICRA]D; ISSUER NOT COOPERATING;
Limits Rating continue to remain under
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.
Established in 2006, Vikas Cotton Ginning & Pressing (VCGP) is a
partnership firm owned and managed by Mr. Mahmadrafik Allarakha
Kaladiya, Mr. Afzal Allarakha Kaladiya and Mr. Amin Allarakha. The
manufacturing facility of the firm, located at Surendranagar,
Gujarat, is equipped with 42 ginning and one fully automatic
pressing machine to produce cotton bales and cottonseeds. The firm
also has five expellers for cottonseed crushing. It also trades in
castor seeds, cumin seeds, wheat, coriander and other
agro-products.
VISHWARAJ SUGAR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vishwaraj Sugar
Industries Limited's (VSIL) Long-Term Issuer Rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR2.150 bil. Fund-based working capital limits migrated to
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 9, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1995, VSIL has an integrated sugar plant with a
cane crushing capacity of 11,000 tons cane per day, a distillery
capacity of 100 kilo liters per day and a co-generation capacity of
36.4MW in Bellad-Bagewadi, Karnataka. The company also has a
vinegar manufacturing unit with a capacity of 75 kilo liters per
day at the plant.
=================
I N D O N E S I A
=================
REASURANSI NASIONAL: Fitch Lowers IFS Rating to 'BB-', Outlook Neg
------------------------------------------------------------------
Fitch Ratings has downgraded PT Reasuransi Nasional Indonesia's
(Nasional Re) Insurer Financial Strength (IFS) Rating to 'BB-'
(Moderately Weak) from 'BB+'(Moderately Weak). At the same time,
Fitch Ratings Indonesia has downgraded the National IFS Rating to
'A(idn)' from 'AA-(Idn)'. The Outlooks are Negative.
'A' National IFS Ratings denote a strong capacity to meet
policyholder obligations relative to all other obligations or
issuers in the same country or monetary union, across all
industries and obligation types.
KEY RATING DRIVERS
The downgrade reflects sharp deterioration in its solvency position
and financial results due to significant reserve adjustment and
accumulated loss, based on the audited 2020 financials which were
published in November 2021. It also reflects Fitch's 'Less
Favourable' corporate governance assessment for the reinsurer as a
result of the limited quality and timeliness of financial
disclosures and limited governance structure.
The Negative Outlook incorporates heightened risk to Nasional Re's
capital position on potential claims and reserve uncertainty
stemming from its credit insurance business.
Fitch views the company's capitalisation as 'Weak'. Nasional Re's
end-2020 regulatory risk-based capital (RBC) ratio was revised to
6% in the audited report 2020 from 203% in an unaudited report. It
was caused by a change in the reserve calculation method to the
triangulation method from the loss ratio method to match its 'long
tail' exposure including the credit and life insurance business.
The company also rectified several data omissions during 2018 to
2020. These changes and net loss in 2020 led to the realisation of
material accumulated losses amounting to IDR 980 billion at
end-2020.
In June and September 2021, the company obtained a subordinated
loan with a total of IDR1,020 billion from PT Asuransi Kredit
Indonesia, its parent company, to support capitalisation. The
company's RBC ratio recovered to 121%, marginally above 120%
regulatory RBC ratio, in November 2021. Nasional Re's Fitch Prism
Model score was 'Weak', based on the audited 2020 financials and
interim November 2021.
Fitch sees Nasional Re's financial performance as 'Moderately
Weak.' Its non-life 'combined ratio' increased to 118% in 2020
(2019 restated: 88%) on a higher claim ratio and reserves top-ups
while premiums stagnated, leading to a net loss of IDR543 billion,
compared to a net profit of IDR409 billion in 2019. The company
booked a net profit of IDR116 billion in 11M21 with a combined
ratio of 102% as a result of positive life insurance underwriting
result and higher investment income.
However, potential volatility from the credit insurance business,
which accounted for 26% of total gross written premium in 11M21
(2020: 24%), could lead to higher claims as a result of the
lingering weak economic conditions.
Fitch assesses Nasional Re's company profile as 'Moderate', based
on a 'Moderate' business profile and 'Less Favourable' corporate
governance, compared with that of all other insurers in Indonesia.
Nasional Re's 'Moderate' business profile ranking reflects its
large market share among Indonesian reinsurers, somewhat higher
risk appetite compared with peers, and somewhat diversified
business mix. Its gross premium market share fell to 23% in 2020
from 31% in 2019 due to tougher competition as a new competitor
entered the market.
Nasional Re's 'risky assets' ratio increased to 161% in 2020 from
82% in 2019, due mainly to its low capital base. The company faces
challenges in managing its risky-asset exposure and maintaining the
proportion of stocks, as it has to consider capital charges and
local solvency margin requirements.
The company mainly uses excess-of-loss treaties to mitigate
catastrophe exposure, and regularly monitors its risk accumulation.
The reinsurer also periodically collaborates with external brokers
to assess its catastrophe exposure through modeling tools. However,
Fitch believes that the low capital position could be a challenge
for the company to keep up with the catastrophe impact due to its
concentration in the catastrophe-prone Indonesian archipelago.
RATING SENSITIVITIES
IFS and National IFS Ratings
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Significant deterioration in capitalisation, with a regulatory
RBC ratio persistently below 120%;
-- A weakening company profile in terms of market franchise and
corporate governance;
-- Significant deterioration in operating performance, with a
non-life combined ratio above 110% over a prolonged period.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained improvement in capitalisation, with its regulatory
RBC ratio consistently above 150%;
-- Maintenance of Nasional Re's company profile, including market
position and corporate governance;
-- Maintaining operating performance, with a non-life combined
ratio consistently below 100%.
ESG CONSIDERATIONS
Nasional Re has an ESG Relevance Score of '4' for exposure to
environmental impact because most of the company's premium income
derives from the domestic market, which has a negative impact on
the credit profile and is relevant to the international IFS Rating
in conjunction with other factors. Indonesia is geographically
widespread and faces multiple hazards, including flooding,
earthquakes, landslides, tsunamis and volcanoes.
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. For more information on Fitch's ESG
Relevance Scores, visit
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond 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.
ESG CONSIDERATIONS
PT Reasuransi Nasional Indonesia has an ESG Relevance Score of '4'
for Exposure to Environmental Impacts due to {DESCRIPTION OF
ISSUE/RATIONALE}, which has a negative impact on the credit
profile, and is relevant to the rating[s] 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.
=====================
N E W Z E A L A N D
=====================
LOVIN LOCAL: Creditors' Proofs of Debt Due on Feb. 7
----------------------------------------------------
Creditors of Lovin Local Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Feb. 7,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 20, 2021.
The company's liquidator is:
Tony Maginness
Baker Tilly Staples Rodway Auckland Limited
PO Box 3899
Auckland 1140
=================
S I N G A P O R E
=================
EIGHT DEVONSHIRE: Court to Hear Wind-Up Petition on Jan. 28
-----------------------------------------------------------
A petition to wind up the operations of Eight Devonshire Management
Pte Ltd will be heard before the High Court of Singapore on Jan.
28, 2022, at 10:00 a.m.
Toe Teow Heng filed the petition against the company on Jan. 6,
2022.
The Petitioner's solicitors are:
Loo & Partners LLP
160 Robinson Road
#15-06 SBF Centre
Singapore 068914
SILVERCLOUD ENERGY: Creditors' Meetings Set for on Jan. 28
----------------------------------------------------------
Silvercloud Energy Pte Ltd will hold a meeting for its creditors on
Jan. 28, 2022, at 3:00 p.m., via electronic means.
Agenda of the meeting includes:
a. to receive a copy of the statement of the Company's affairs
together with a list of creditors and the estimated amounts
of their claims;
b. to confirm the appointment of the Joint and Several
Liquidators nominated by the Company or nominating another
person or persons as Liquidator(s) for the purpose of
winding up the affairs of the Company and their remuneration
thereof;
c. any other business.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9482.
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*** End of Transmission ***