/raid1/www/Hosts/bankrupt/TCRAP_Public/220124.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 24, 2022, Vol. 25, No. 11
Headlines
A U S T R A L I A
ADVENTURER LEISURE: First Creditors' Meeting Set for Feb. 1
CBM SERVICES: First Creditors' Meeting Set for Feb. 1
EGL GROUP: Commences Wind-Up Proceedings
LUCIANO'S MARINA: Second Creditors' Meeting Set for Jan. 31
NUFARM LTD: S&P Assigns 'BB-' Rating on New Senior Unsecured Notes
SUN BLOCK BLINDS: First Creditors' Meeting Set for Jan. 31
C H I N A
CHINA EVERGRANDE: Hires More Legal Advisers to Tackle Debt
CHINA EVERGRANDE: Offshore Bondholders Mull Enforcement Actions
CHINA SOUTH CITY: Fitch Affirms 'B-' IDR as Bond Payment Looms
WISDOM EDUCATION: Moody's Withdraws B3 Corporate Family Rating
XINJIANG GUANGHUI: Moody's Withdraws B2 Corporate Family Rating
[*] CHINA: Property Firms Face Major Debt Squeeze in First Quarter
H O N G K O N G
GENTING HONG KONG: Still Selling Tickets After Liquidation Bid
I N D I A
AAKASH NIRMAN: CRISIL Assigns B Rating to INR100cr NCD
ACDC SAIDEEP: ICRA Withdraws B+ Rating on INR5.0cr LT Loan
AG8 VENTURES: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating
APLAB LIMITED: ICRA Keeps D Debt Ratings in Not Cooperating
ARKITON TILES: ICRA Lowers Rating on INR5.55cr Loan to B+
AXXELENT PHARMA: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
BHOLA NATH RAKESH: CRISIL Lowers Rating on INR6.02cr Loan to C
BHOLA NATH: CRISIL Lowers Rating on INR4.0cr Loans to C
CHANVIM ENGINEERING: ICRA Keeps B+ Ratings in Not Cooperating
CLASSICWIN ENGINEERING: CRISIL Keeps B+ Ratings in Not Cooperating
D.R. COATS: ICRA Keeps B+ Debt Rating in Not Cooperating
DEE VEE: Ind-Ra Keeps BB+ Loan Rating in Non-Cooperating
EMERALD ALCHYMICUS: ICRA Keeps D Debt Ratings in Not Cooperating
FLAMINGO PHARMACEUTICALS: Ind-Ra Assigns 'BB+' LT Issuer Rating
FUTURE GROUP: Mulls SC Bid to Avoid Default Tag
GAJANAN EXTRACTION: CRISIL Keeps B+ Ratings in Not Cooperating
GEMSTONE CERAMIC: ICRA Moves B+ Debt Rating to Not Cooperating
GOVARDHAN STEELS: ICRA Lowers Rating on INR10cr Loans to B+
HINDUSTAN AGENCIES: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
HINDUSTAN DISTRIBUTORS: Ind-Ra Moves BB+ Rating to Non-Cooperating
HOTEL GANESH: CRISIL Keeps B Debt Rating in Not Cooperating
ISWARYA TEXTILE: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
JASPER AUTO: Ind-Ra Assigns 'BB' Term Loan Rating, Outlook Stable
JMG AUTOMOBILES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
K.P.R. AGROCHEM: ICRA Keeps D Debt Rating in Not Cooperating
KARNATAKA STATE: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
KATARIA CARRIERS: CRISIL Lowers Rating on INR9.5cr Loans to B
KINJAL COTTON: CRISIL Keeps B Debt Ratings in Not Cooperating
KRISHNA AGRO: ICRA Keeps B- Debt Ratings in Not Cooperating
MANGALAYATAN UNIVERSITY: Ind-Ra Keeps B+ Rating in Non-Cooperating
MASTER KISHAN: Ind-Ra Keeps 'BB-' Loan Rating in Non-Cooperating
MAX INTERNATIONAL: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
PARSVNATH HOTELS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
PARTAP SPINTEX: ICRA Withdraws B+ Rating on INR90cr Loans
PATRAN FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
PERFECT MOBILE: Insolvency Resolution Process Case Summary
PRABHU AGARWALLA: ICRA Lowers Rating on INR73cr Loans to D
PRADHAMA MULTI: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
R. K. BLUE: CRISIL Keeps B+ Debt Rating in Not Cooperating
RAICHUR BIO: Ind-Ra Affirms 'B+' Issuer Rating, Outlook Stable
RAMKRISHNA AGENCIES: Ind-Ra Moves BB+ Rating to Non-Cooperating
SAFEFLEX INTERNATIONAL: ICRA Keeps B+ Rating in Not Cooperating
SAFETY CONTROLS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
SAI MAATARINI: Ind-Ra Affirms 'D' Term Loan Rating
SANKALP ENGINEERING: ICRA Keeps D Ratings in Not Cooperating
SARAVANA INDUSTRIES: Ind-Ra Moves 'B+' Rating to Non-Cooperating
SEZON PAPERS: CRISIL Keeps B Debt Ratings in Not Cooperating
SHAKTI COT: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SIRWAR RENEWABLE: ICRA Keeps B+ Rating in Not Cooperating
SPY FROZEN: CRISIL Keeps B Debt Ratings in Not Cooperating
SRIPATHI PAPER: Ind-Ra Hikes Long Term Issuer Rating to 'B+'
US SRIVASTAVA: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating
VALIKULAM RUBBER: CRISIL Keeps B Debt Ratings in Not Cooperating
VAMSI CHEMICALS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
I N D O N E S I A
PT PERUSAHAAN PENGELOLA: S&P Affirms 'BB' ICR, Outlook Negative
J A P A N
MITSUI E&S: Egan-Jones Keeps CCC- Senior Unsecured Ratings
SAPPORO HOLDINGS: Egan-Jones Keeps 'B' Senior Unsecured Ratings
TOKYU CORPORATION: Egan-Jones Keeps BB- Senior Unsecured Ratings
N E W Z E A L A N D
AIR NEW ZEALAND: Annual Net Loss to Widen, Forsyth Barr Says
DASH TRAINING: Creditors' Proofs of Debt Due on Feb. 21
SEAVIEW COTTAGE: Had NZD515,000 DOC Deal Before Collapse
Y & Z SUPERMARKET: Court to Hear Wind-Up Petition on March 11
P H I L I P P I N E S
RURAL BANK OF SAN NICOLAS: Placed in PDIC Receivership
S I N G A P O R E
ATI FREIGHT: Court Enters Wind-Up Order
BIO STATS: Court Enters Wind-Up Order
PHOENIX (S): Court to Hear Wind-Up Petition on Feb. 4
POSH CHINA: Creditors' Proofs of Debt Due on Feb. 21
TAIYO ASSET: Court to Hear Wind-Up Petition on Feb. 4
- - - - -
=================
A U S T R A L I A
=================
ADVENTURER LEISURE: First Creditors' Meeting Set for Feb. 1
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Adventurer
Leisure Hire Pty Ltd, Diamond Enterprises Australia Pty Ltd, and
Diamond Services Australia Pty Ltd will be held on Feb. 1, 2022, at
10:00 a.m. via virtual meeting facilities only.
Alan Walker of WLP Restructuring Pty Ltd was appointed as
administrator of Adventurer Leisure et al. on Jan. 20, 2022.
CBM SERVICES: First Creditors' Meeting Set for Feb. 1
-----------------------------------------------------
A first meeting of the creditors in the proceedings of CBM Services
(NSW) Pty Ltd will be held on Feb. 1, 2022, at 11:00 a.m. at the
offices of SV Partners, 22 Market Street, in Brisbane, Queensland.
Terry John Rose and David Michael Stimpson of SV Partners were
appointed as administrators of CBM Services on Jan. 19, 2022.
EGL GROUP: Commences Wind-Up Proceedings
----------------------------------------
Members of EGL Group Pty Ltd, on Jan. 21, 2022, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidator is:
Glenn Thomas O'Kearney
GT Advisory & Consulting
Level 3, 140 Bundall Road
Bundall, Qld 4217
LUCIANO'S MARINA: Second Creditors' Meeting Set for Jan. 31
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Luciano's
Marina Pier Pty Ltd has been set for Jan. 31, 2022, at 10:00 a.m.
via virtual meeting technology.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 28, 2022, at 5:00 p.m.
Dominic Charles Cantone and Nicholas David Cooper of Oracle
Insolvency were appointed as administrators of Luciano's Marina on
Dec. 17, 2021.
NUFARM LTD: S&P Assigns 'BB-' Rating on New Senior Unsecured Notes
------------------------------------------------------------------
S&P Global Ratings assigned its long-term issue credit rating of
'BB-' to Nufarm Ltd.'s (BB/Stable/--) US$350 million senior
unsecured notes due 2030. The issuance comprises tranche A for an
amount of US$105 million and tranche B for US$245 million.
S&P said, "We have assigned an issue rating of 'BB-' based on a
recovery rating of '5' to the notes, indicating modest recovery
prospects under our hypothetical default scenario. We expect a
recovery of Nufarm's European operations and the introduction of
the group's capital-management framework to benefit unsecured
creditors."
Nufarm Australia Ltd. is the issuer of the tranche A notes and
Nufarm Americas Inc. is the issuer of the tranche B notes. Nufarm
Australia and Nufarm Americas are subsidiaries of the
Australia-based agricultural chemical company Nufarm Ltd., which
guarantees the notes.
The 'BB' long-term issuer credit rating on Nufarm is unaffected by
the proposed note issuance. The rating on Nufarm continues to
reflect the company's solid position in select global
crop-protection markets and its strengthened balance sheet.
Tempering these strengths are its small scale and narrow product
focus of predominantly crop-protection products compared with its
major global competitors.
Continued attention to working-capital management and the
implementation of its capital-management framework should allow
Nufarm to accommodate inherent earnings and cash flow volatility in
the business.
Issue Ratings--Recovery Analysis
Key analytical factors
-- S&P's simulated default scenario assumes a payment default in
2026 due to a meaningful and prolonged weakening of global demand
in the agribusiness sector. Under this scenario, it considers that
Nufarm would have adequate enterprise value to provide a modest
(10%-30%; rounded estimate: 10%) recovery for the proposed senior
unsecured notes.
-- S&P values Nufarm as a going concern because it believes that
following a payment default, the company is likely to be
reorganized due to the longer-term value in its multiple business
segments and product lines.
-- S&P has applied a 5.0x valuation multiple, which reflects the
relative strength and value of the company in the global
crop-protection market.
-- S&P applies the 5.0x valuation multiple to an estimated
distressed emergence EBITDA of about A$179.9 million to estimate a
gross enterprise value of about A$899.7 million. The net enterprise
value after administrative costs is A$854.8 million.
Simulated default assumptions
-- Year of default: 2026
-- Senior secured facilities will be 85% drawn at default
-- EBITDA at emergence: A$179.9 million
-- EBITDA multiple: 5.0x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): A$899.7
million
-- Priority group trade receivables securitization debt claims:
A$205 million
-- Senior secured debt claims: A$433.2 million
-- Lease liability claims: A$147.3 million
-- Senior unsecured debt claims: A$496.2 million
-- Recovery expectation: 10%-30% (rounded estimate: 10%)
SUN BLOCK BLINDS: First Creditors' Meeting Set for Jan. 31
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Sun Block
Blinds (WA) Pty Ltd, formerly trading as "Sun Block Blinds" and
"Floor Depot WA" will be held on Jan. 31, 2022, at 2:30 p.m. via
virtual meeting.
Robert Michael Kirman and Robert Brauer of McGrathNicol were
appointed as administrators of Sun Block on Jan. 18, 2022.
=========
C H I N A
=========
CHINA EVERGRANDE: Hires More Legal Advisers to Tackle Debt
----------------------------------------------------------
South China Morning Post reports China Evergrande Group said it was
hiring more financial and legal advisers to deal with creditors'
demands, after a group of offshore bondholders warned of
enforcement action, taking it a step forward in resolving its debt
issues.
The embattled developer, struggling with CNY1.97 trillion (US$305
billion) of liabilities, said in an exchange filing on Jan. 21 that
it was seeking to hire China International Capital Corp and BOCI
Asia as financial advisers, and Zhong Lun Law Firm as legal
adviser.
"In view of the operational and financial challenges the group is
facing and in particular, the debt stress it is experiencing,"
Evergrande said it plans to hire more professionals to "assist the
company in mitigating and eliminating the risks relating to its
debts and following up with demands from the creditors."
The Post says the move comes after a group of offshore bondholders,
represented by law firm Kirkland & Ellis and investment bank
Moelis, said Evergrande had failed to substantially engage with it
on restructuring efforts.
The Post relates that the creditors warned the company that they
would "seriously consider enforcement actions" to protect their
interests and want to be consulted before any further assets are
sold.
They said they had "seen no substantive engagement with offshore
creditors to formulate a viable restructuring plan of
[Evergrande's] offshore indebtedness for the benefit of all
stakeholders" or "with the group's creditors in order to mitigate
the group's risk and protect the legitimate interest of the
parties."
In September, Evergrande had appointed US restructuring experts
Houlihan Lokey and Hong Kong-based investment bank Admiralty
Harbour Capital to assess its capital structure after the property
firm failed to pay investors who subscribed to its high yield
wealth management products, the Post notes.
The company subsequently set up a risk management committee in
December, saying it would actively engage with creditors to
formulate a viable restructuring plan.
The Post relates the developer then successfully extended a
deadline of yuan-denominated notes after talks with the onshore
bondholders in January.
However, US dollar bondholders have been irked by Evergrande's
approach to its offshore debts.
"The group's lack of engagement and opaque decision-making to date
is contrary to well established international standards in
restructuring processes of this magnitude," the creditors said in
the letter on Jan. 20.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2021, S&P Global Ratings lowered the issuer credit ratings
on China Evergrande Group and Tianji Holding Ltd. to 'SD' from
'CC'. S&P also lowered the issuer rating on Tianji's bonds due
2022 and 2023 to 'D' from 'C'. S&P subsequently withdrew all its
ratings on Evergrande, its subsidiary Hengda Real Estate Group Co.
Ltd., and Tianji, at the group's request.
The TCR-AP also reported that Fitch Ratings has downgraded to 'RD'
(Restricted Default), from 'C', the Long-Term Foreign-Currency
Issuer Default Ratings (IDR) of China Evergrande Group and its
subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding
Limited. Fitch has affirmed the senior unsecured ratings of
Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as
well as the Tianji-guaranteed senior unsecured notes issued by
Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'.
The downgrades reflect the non-payment of coupons due Nov. 6, 2021
for Tianji's USD645 million 13% bonds and USD590 million 13.75%
bonds after the grace period lapsed on 6 December. The non-payment
is consistent with an 'RD' rating, signifying the uncured expiry of
any applicable grace period, cure period or default forbearance
period following a payment default on a material financial
obligation.
CHINA EVERGRANDE: Offshore Bondholders Mull Enforcement Actions
---------------------------------------------------------------
Reuters reports a key group of China Evergrande's international
creditors said on Jan. 20 they were ready to take "all necessary
actions" to defend their rights if the property developer did not
show more urgency to resolve a default.
Evergrande is the world's most indebted property company, with more
than $300 billion in total liabilities, which include nearly $20
billion of international bonds all deemed to be in default after a
run of missed payments late last year.
According to Reuters, the creditor group, represented by law firm
Kirkland & Ellis and investment bank Moelis, said in a statement it
had to "seriously consider" enforcement action after a lack of
engagement by the firm at the heart of China's property crisis.
One of the creditor group's advisers later told Reuters
Evergrande's team had been in communication in response to the
statement, which had stressed it was prepared to take "all
necessary actions" to defend its legal rights.
Evergrande and its advisers at U.S. investment bank Houlihan Lokey
declined to comment, Reuters notes.
The property giant last month set up a risk management committee,
including officials from Chinese state entities, and it has
repeatedly said this group and the company itself would actively
engage with creditors and protect the legitimate interests of the
parties involved, Reuters recalls.
"Actions speak considerably louder than words," the creditor group
said in its statement, adding that the overriding impression was
that Evergrande "has disregarded its offshore creditors and the
legal rights of its creditors".
Despite efforts to engage in substantive dialogue, the group said,
it has "received little more than vague assurances of intent,
lacking in both detail and substance" and urged Evergrande not to
make any asset sales without consulting first, Reuters relays.
"The AHG (ad-hoc group) expects and calls on the directors (of
Evergrande) . . . to strictly comply with their fiduciary duties
which require them, amongst other things, to have regard to and act
in the best interests of their creditors".
Reuters says Evergrande's international market bonds are lower in
the legal pecking order than Chinese market bonds that the company
has been fighting hard in recent weeks to keep out of default.
The international debt is unsecured; it was issued by a Hong Kong
offshoot, meaning creditors do not automatically have the right to
seize anything on the mainland, where Evergrande has almost all of
its 1,300 projects, according to Reuters.
Those bonds are trading at just 10%-15% of their original value,
meaning that their owners may feel they now have little left to
lose by taking legal action.
Reuters relates the first step down that path would be to
'accelerate' a bond still with a future repayment date. That would
then see the bond's 'trustee' order Evergrande to pay the debt
immediately.
If the developer failed to come up with the money, a 'winding up'
order could be made against Evergrande's Hong Kong entity that
issued the debt. It would open a host of new options, although it
would still be difficult for the creditors to claim any assets in
mainland China.
"We continue to remain hopeful that they will engage
constructively," Neil McDonald, a partner at Kirkland & Ellis told
Reuters, adding: "But we will take appropriate steps to protect the
rights of creditors (if necessary)".
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific in
December 2021, S&P Global Ratings lowered the issuer credit ratings
on China Evergrande Group and Tianji Holding Ltd. to 'SD' from
'CC'. S&P also lowered the issuer rating on Tianji's bonds due
2022 and 2023 to 'D' from 'C'. S&P subsequently withdrew all its
ratings on Evergrande, its subsidiary Hengda Real Estate Group Co.
Ltd., and Tianji, at the group's request.
The TCR-AP also reported that Fitch Ratings has downgraded to 'RD'
(Restricted Default), from 'C', the Long-Term Foreign-Currency
Issuer Default Ratings (IDR) of China Evergrande Group and its
subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding
Limited. Fitch has affirmed the senior unsecured ratings of
Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as
well as the Tianji-guaranteed senior unsecured notes issued by
Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'.
The downgrades reflect the non-payment of coupons due Nov. 6, 2021
for Tianji's USD645 million 13% bonds and USD590 million 13.75%
bonds after the grace period lapsed on 6 December. The non-payment
is consistent with an 'RD' rating, signifying the uncured expiry of
any applicable grace period, cure period or default forbearance
period following a payment default on a material financial
obligation.
CHINA SOUTH CITY: Fitch Affirms 'B-' IDR as Bond Payment Looms
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer
Default Rating (IDR) of China South City Holdings Limited (CSC) at
'B-'. The Outlook remains Negative. Fitch has also affirmed its
senior unsecured ratings at 'B-', with a Recovery Rating of 'RR4'.
The affirmations reflect Fitch's view that CSC has sufficient
liquidity to address its US dollar bonds due February 2022, despite
its consent solicitation announcement to extend the bonds'
maturity. Fitch also believes an equity transaction agreement with
Shenzhen SEZ Construction and Development Group Co Ltd (SZCDG), an
enterprise wholly owned by the state under Shenzhen province's
State-owned Assets Supervision and Administration Commission, is
likely to improve its onshore funding access and funding cost.
The Negative Outlook is due to the company's continued tight
liquidity, with execution risks in terms of the timing of planned
asset sales.
KEY RATING DRIVERS
Not Distressed Debt Exchange: Fitch does not consider CSC's consent
solicitation to extend the maturity of its US dollar bonds due
February 2022 and June 2022 a distressed debt exchange (DDE) based
on Fitch's DDE rating criteria. Fitch believes the offer was not
conducted to avoid bankruptcy, insolvency or intervention
proceedings, or a traditional payment default. This is because the
company has sufficient liquidity to address the USD348 million
bonds due February, and funding access will likely improve after
its agreement with SZCDG is completed in 2Q22.
Equity Transaction with SZCDG: CSC announced on 31 December 2021 it
signed the agreement with SZCDG, which will subscribe for new CSC
shares, resulting in gross proceeds of HKD1,909.5 million. SZCDG
will become CSC's largest shareholder upon the completion of the
transaction, with a stake of up to 29.28%. Fitch thinks the status
of the new major shareholder as a state-owned enterprise will help
boost CSC's access to onshore funding.
Funding Plan for Upcoming Maturities: In addition to the USD348
million in bonds due February, CSC has USD346 million in bonds due
June and USD276.5 million in bonds due November 2022. CSC also has
CNY0.6 billion in onshore medium-term notes due April 2022 and
CNY1.4 billion in onshore corporate bonds due August 2022, some of
which may be rolled over.
CSC reported an unrestricted cash balance of HKD5.2 billion at
end-September 2021. Fitch expects the company to be able to draw
down additional bank loans to repay the USD348 million in bonds due
February, and use the equity transaction proceeds to repay most of
the other USD346 million in bonds due June if the consent
solicitation fails to go through. Fitch believes the company is
likely to collect some proceeds from asset sales in 2Q22 to
replenish its liquidity, which will address the USD276.5 million in
bonds due November 2022.
Recent Deterioration in Sales: Fitch believes CSC's contracted
sales may continue to be under pressure in the near term although
its annual property sales of about HKD10 billion remain comparable
with that of some 'B-' rated peers. CSC's sales fell to HKD2
billion in 4Q21, from HKD3 billion in 3Q21 and HKD4 billion in
2Q21. The recent deterioration was due to a broader market slowdown
as well as the Covid-19 pandemic affecting Zhengzhou and Xi'an, two
of its major markets.
Limited Land Acquisitions: CSC has been prudent in managing its
land acquisition outflows to maintain its liquidity profile. Fitch
believes CSC will not acquire any new land in the financial year
ending March 2022 (FY22), as it had sufficient unsold residential
and multi-purpose properties available for sale for the next five
years as of end-FY21.
DERIVATION SUMMARY
CSC's ratings are constrained by its tight liquidity and weakening
business profile, while the Negative Outlook reflects its potential
execution risks in the timing of its asset disposals to address its
capital-market debt maturities in 2022.
The company's contracted sales weakened recently to around HKD2
billion-3 billion per quarter, which are comparable with that of
some other 'B-' rated peers such as Guangdong - Hong Kong Greater
Bay Area Holdings Limited (B-/Stable).
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Property-development contracted sales of HKD12 billion-16
billion per year in FY22-FY24 (FY21: HKD16 billion);
-- EBITDA margin of about 30% in FY22-FY24 (FY21: 32%);
-- Non-development income to increase by 10%-15% per year in
FY22-FY24 (FY21: 15%);
-- Construction and land acquisition cash outflow to account for
60%-65% of sales proceeds in FY22-FY24 (FY21: 69%).
Recovery Rating Assumptions
-- The recovery analysis assumes that CSC will be liquidated in a
bankruptcy as it is an asset-trading company. The nature of
homebuilding means the liquidation-value approach will always
result in a much higher value than the going-concern approach.
-- Fitch has assumed 10% administrative claims.
Liquidation Approach
-- The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realized in sale or
liquidation processes conducted during bankruptcy or
insolvency proceedings and distributed to creditors.
-- Advance rate of 80%, raised from 70%, applied to account
receivables. This treatment is in line with Fitch's recovery
rating criteria.
-- Advance rate of 55%, lowered from 60%, applied to net property
inventory. CSC's inventory mainly consists of completed
properties held for sale and properties under development
(PUD). Different advance rates were applied to these different
inventory categories to derive the blended advance rates for
net inventory.
-- 60% advance rate on completed properties held for sale.
Completed commodity housing units are closer to readily
marketable inventory. CSC has a historically high gross margin
for development property of around 40%. However, the sales
performance of trade centers has deteriorated recently.
-- 50% advance rate on PUD. Unlike completed projects, PUDs are
more difficult to sell. These assets are also in various
stages of completion. The PUD balance - prior to applying the
advance rate - is net of margin-adjusted customer deposits.
-- Advance rate of 50%, lowered from 60%, applied to property,
plant and equipment, which mainly consists of buildings with
insignificant value.
-- Advance rate of 25% applied to the book value of investment
properties. CSC's investment property portfolio mainly
consists of trade centers located in the eight Tier 2 cities
it operates. The portfolio has an average rental yield of 1%-
2%, which is below industry average. Fitch considered the 25%
advance rate appropriate as the implied rental yield on the
liquidation value for the investment-property portfolio would
improve to 6%.
-- Advance rate of 0% applied to excess cash, after netting the
amount of note payables and trade payables (construction fee
and retention payables).
The allocation of value in the liability waterfall results in
recovery corresponding to an 'RR2' Recovery Rating for the senior
unsecured debt. However, the Recovery Rating for senior unsecured
debt is at 'RR4' because under Fitch's Country-Specific Treatment
of Recovery Ratings Criteria, China falls into Group D of creditor
friendliness, and the Recovery Ratings for instruments by issuers
with assets in this group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Positive rating action could be considered after the
completion of the consent solicitation and the equity
transaction with SZCDG.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Inability to address its upcoming capital-market maturities;
-- Slower-than-expected execution in its asset disposal plans and
equity transaction with SZCDG;
-- Deterioration in contracted sales and sales proceeds.
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
Tight Liquidity: CSC reported unrestricted cash of HKD5.2 billion
at end-September 2021, against HKD6.1 billion in bank and other
borrowings, CNY2.4 billion in onshore capital-market debt and
HKD6.0 billion in offshore capital-market debt maturing in the next
12 months. Fitch expects CSC to roll over a majority of the onshore
bank and other borrowings, which are mostly secured loans, and to
repay its capital-market debt with a drawdown of additional onshore
loans, the equity transaction with SZCDG and asset disposals.
ISSUER PROFILE
CSC develops and operates large-scale, integrated logistics and
trade centres in mainland China. It began operations in 2002 and
was listed on the Hong Kong Stock Exchange in September 2009. It
started the first project in Shenzhen in 2003 and has since
replicated the model into other Tier 2 Chinese cities.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets used in the leverage
calculation includes: inventory, net deposits and prepayments for
projects, investment properties, property, plant and equipment
(land and buildings), land-use rights, investments in joint
ventures (JV), net amounts due from JVs, and net amounts due from
non-controlling interests, less contract deposits and deposits
received.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
WISDOM EDUCATION: Moody's Withdraws B3 Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn the B3 corporate family
rating of Wisdom Education International Hldgs. Co Ltd. Prior to
the withdrawal, the rating outlook on Wisdom Education was
negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Wisdom Education International Hldgs. Co Ltd was founded in 2003
and was listed on the Hong Kong Stock Exchange on January 26, 2017.
XINJIANG GUANGHUI: Moody's Withdraws B2 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn the B2 corporate family
rating of Xinjiang Guanghui Industry Inv. Gr. Co., Ltd. The outlook
prior to the withdrawal was negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Xinjiang Guanghui Industry Inv. Gr. Co., Ltd (Guanghui Group) is a
private company that operates in three key segments, namely auto
dealership, energy and real estate.
[*] CHINA: Property Firms Face Major Debt Squeeze in First Quarter
------------------------------------------------------------------
Caixin Global reports analysts see China's troubled property firms
facing a tough first quarter, as they have to pay back a record
amount of offshore bonds while new home sales are depressed and
finding financing remains a challenge.
In the first three months of 2022, developers face obligations to
repay CNY117.7 billion ($18.5 billion) in maturing offshore bonds,
a record quarterly high, analysts at brokerage Huatai Securities
Co. Ltd. wrote in a report in mid-January, Caixin relates.
=================
H O N G K O N G
=================
GENTING HONG KONG: Still Selling Tickets After Liquidation Bid
--------------------------------------------------------------
Bloomberg News reports Genting Hong Kong Ltd., continues to sell
tickets for its "cruises to nowhere" after seeking court assistance
to safeguard its assets during the pandemic.
Bookings are available on Genting's website for two-and three-night
trips on its Dream Cruises from Hong Kong and Singapore through
April and September, respectively, Bloomberg notes. The ships head
out to international waters and back, with the cheapest tickets
going for HKD1,188 or SGD153 a night per person. Dream Cruises
sailings that have already been scheduled will proceed, according
to a company representative.
"Certain business activities of Genting Hong Kong, including but
not limited to the operations of cruises by Dream Cruises, will
continue in order to preserve and protect the core assets and
maintain the value of the Group," the company said in a statement
on Jan. 19.
According to Bloomberg, cruises from Hong Kong are halted at
present because of Covid-19 restrictions, but Genting is set to
resume with a sailing on Feb. 4, provided government curbs are
lifted as scheduled. The company confirmed that trips from Hong
Kong will continue through April if pandemic restrictions are
eased. Excursions for the summer season haven't been planned, the
company representative said.
Crystal Cruises, another brand operated by Genting, has suspended
its Ocean and Expedition trips through April and its River cruises
to the end of May, according to a statement cited by Bloomberg. It
is offering refunds. Vessels in operation will complete their
current voyages, with one ending on Saturday in Miami, another on
Jan. 30 in Aruba and a third in Ushuaia, Argentina, on Feb. 4.
"This was an extremely difficult decision but a prudent one given
the current business environment and recent developments with our
parent company," the report quotes Crystal Cruises President Jack
Anderson as saying.
According to Bloomberg, Genting said Jan. 19 it had filed with the
Supreme Court of Bermuda to appoint provisional liquidators after
exhausting "all reasonable efforts" to negotiate with creditors and
stakeholders. The company reported a record loss of $1.7 billion in
May as the pandemic ravaged the industry. Its German shipbuilding
subsidiary MV Werften went into insolvency earlier in January.
Cruise operators globally were among the first and hardest hit by
Covid, which wiped out travel demand and halted sailings soon after
it emerged in early 2020. Genting Hong Kong, which is majority
owned by Malaysian billionaire Lim Kok Thay, warned that cross
defaults could follow the collapse of MV Werften.
The company, which had about $453 million in cash and cash
equivalents as of June last year, has warned it will run out of
cash around the end of this month, the report notes. It already
halted payments to creditors totaling $3.4 billion in August 2020
and was in default of that amount at the end of that year.
The biggest cruise operators, including Carnival Corp. and Royal
Caribbean Cruises Ltd., have raised enough liquidity to get through
the worst of the pandemic, even if some need additional financing.
A handful of smaller ones have collapsed, including Spanish cruise
line Pullmantur Cruises SL and Asia's Jalesh Cruises. Genting has
the largest fleet and berth capacity among those that have
stumbled.
About Genting Hong Kong
Genting Hong Kong Limited is a Hong Kong-based investment holding
company principally engaged in cruise businesses. The Company
operates through two segments. Cruise and Cruise-related Activities
segment is engaged in the sales of passenger tickets, the sales of
foods and beverages onboard, shore excursion, as well as the
provision of onboard entertainment and other onboard services.
Non-cruise Activities segment is engaged in onshore hotel
businesses, travel agency, aviation businesses, entertainment
businesses and shipyard businesses, among others. The Company
operates businesses in Asia Pacific, North America and Europe,
among others.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
20, 2022, Genting Hong Kong has filed a winding-up petition in
Bermuda, after the bankruptcy of its shipyard in Germany triggered
US$2.78 billion of debt and forced Asia's largest operator of sea
cruises to be liquidated.
The owner of Dream Cruise Holding appointed Alvarez & Marsal's
Edward Simon Middleton and Tiffany Wong Wing-sze as provisional
liquidators, South China Morning Post disclosed citing a filing on
Jan. 19 to the Hong Kong stock exchange.
=========
I N D I A
=========
AAKASH NIRMAN: CRISIL Assigns B Rating to INR100cr NCD
------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
INR100 crore non-convertible debentures (NCDs) of Aakash Nirman
Udyog Private Limited (ANUPL). The rated NCDs are proposed to be
utilized to repay part of the debt in holding company, PP Jewellers
Pvt Ltd (PPJPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Non Convertible
Debentures-LT 100.0 CRISIL B/Stable (Assigned)
The rating reflects the weak business risk profile of ANUPL, as
seen in limited source of income, and debt-servicing depending on
timely fund infusion by the promoters; and weak financial risk
profile, including stretched liquidity.
Key Rating Drivers & Detailed Description
Weaknesses:
* Limited revenue streams making debt servicing dependent on timely
promoter support: The company derives revenue from rent on the two
land parcels it has leased to PPJPL, which pays INR0.02 crore per
annum to ANUPL. Though expenses are primarily property tax, the
proposed NCD issuance is expected to have an annual interest
obligation of ~Rs 1.5 crore, with a put option after three years.
Hence, ANUPL depends on timely fund infusion from the promoters to
meet the debt obligation on the proposed NCD issuance.
* Capital structure to weaken significantly after the NCD issuance:
Current debt of INR0.83 crore is mainly from holding company and
directors. The company is now planning to raise INR150 crore
through the listed NCD, which will be primarily utilized to repay
the outstanding debt at parent level. Coupled with a negative net
worth, this debt addition to the books will significantly weaken
capital structure over the medium term.
Strength:
* Limited debt obligation in the near term: The proposed NCD is
structured in a way that the company will have minimal debt
obligation in the near term, which may include 1% of interest
servicing (about INR1.5 crore per annum). The remaining interest
obligation will be paid through redemption premium, which will be
funded through the proceeds from the various asset monetization
plans happening at the promoter level. The NCD is to have a tenor
of 10 years with a put option after three years.
Liquidity: Stretched
Liquidity is expected to remain constrained over the medium term.
With single-source revenue, any delay in payment is likely to
disrupt operational expenses. Though the company's operations are
insufficient to meet coupon payments of the NCD, fund infusion from
PPJPL is likely to help. ANUPL does not maintain any debt service
reserve account. The promoter group's financial flexibility has
also weakened, thereby limiting its ability to support the company
in case of any exigency.
Outlook: Stable
The company will continue to receive timely rent and cash infusion
from PPJPL.
Rating Sensitivity Factors
Upward factors:
* Sufficient liquidity, with annual coupon payment in the form of
deposit
* Improvement in financial risk profile through substantial debt
reduction by the parent company via the available call option
Downward factors:
* Delay in cash infusion by the parent resulting in further stretch
in liquidity
* Additional debt over and above the proposed NCD adversely
affecting financial risk profile
A subsidiary of PPJPL set up in 1994, holds land worth INR80 crore
and leases it to the parent company for a nominal rental fee. PPJPL
was established in 1993 and manufactures gold and diamond jewelry
for wholesale and retail customers. It is promoted by Mr. Kamal
Gupta and his two sons, Mr. Mohit Gupta and Mr. Rahul Gupta.
ACDC SAIDEEP: ICRA Withdraws B+ Rating on INR5.0cr LT Loan
----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
ACDC Saideep Buildcon Private Limited at the request of the company
and based on the No Objection Certificate/Closure Certificate
received from the 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
---------- ----------- -------
Long Term, 5.00 [ICRA] B+(Stable); ISSUER NOT
Fund based– COOPERATING; Withdrawn
Cash Credit
Short Term, 35.00 [ICRA]A4; ISSUER NOT
Non Fund Based COOPERATING; Withdrawn
Saideep Electricals is a proprietary firm of Mr. Sandeep Bhadange
and is involved in executing turnkey electromechanical projects for
state government entities such as MSEDCL, MSEB, MIDC and municipal
corporations. The firm is engaged in executing turnkey electrical
projects which involves designing, supplying, constructing, testing
and commissioning electric infrastructure. Typical projects involve
HT/LT lines, power transformers, sub stations, and also turnkey
contracts for electrification of rural areas. The firm is
registered with government bodies as an A+ contractor. The firm is
based out of Pune, and primarily operates in the Western
Maharashtra region in districts such as Pune, Ahmednagar and
Kolhapur. Saideep
Electricals was converted into a private company - ACDC Saideep
Buildcon Private Limited, in year 2018.
AG8 VENTURES: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated AG8 Ventures Ltd
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 continue to appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR1.20 bil. Long-term loan due on March 31, 2025 migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last affirmed on
November 24, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
AG8 was incorporated in 1997 with an objective to develop
residential projects in and around Bhopal.
APLAB LIMITED: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long term and short-term ratings of Aplab
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based 12.80 [ICRA]D; ISSUER NOT COOPERATING;
Limits Cash Rating continues to remain under
Credit 'Issuer Not Cooperating'
Category
Fund based– 13.20 [ICRA]D; ISSUER NOT
COOPERATING;
Working Capital Rating continues to remain under
Demand Loan 'Issuer Not Cooperating'
Category
Fund based– 11.00 [ICRA]D; ISSUER NOT
COOPERATING;
Bill Discounting Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-fund based– 14.00 [ICRA]D; ISSUER NOT
COOPERATING;
Letter of Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-Fund based– 22.00 [ICRA]D; ISSUER NOT
COOPERATING;
Bank Guarantee 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.
APLAB Limited was incorporated in the year 1962 by Mr. P.S Deodhar
and has started as a manufacturer for Test & Measurement
instruments. Originally it was called as 'Applied Electronics
Limited' which later on went on to be called as 'Applied
Electronics Lab' before the name was finally changed to 'APLAB
Limited'. The company's primary business activity involves
manufacturing electrical/electronic equipment and devices. In the
year 2000, Zee Entertainment Enterprises Limited
acquired 26% stake in the company. The company has multiple
product divisions namely Test and Measurement Instruments (T&M),
Power Conversion & Controls (PCC), Power Supply Equipment (PE) or
UPS systems, Banking and Retail Automation (BA) and Cable Fault
Locating Instruments (CFS). Recently; the company has also
diversified into Solar Power Equipment business.
ARKITON TILES: ICRA Lowers Rating on INR5.55cr Loan to B+
---------------------------------------------------------
ICRA Ratings has revised ratings on certain bank facilities of
Arkiton Tiles LLP (ATP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 5.55 [ICRA]B+ (Stable) ISSUER NOT
Term Loan COOPERATING; Downgraded from
[ICRA]BB-(Stable) and Rating
moved to the 'Issuer Not
Cooperating' category
Fund-based– 3.50 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Downgraded from
[ICRA]BB-(Stable) and Rating
moved to the 'Issuer Not
Cooperating' category
Non-fund 1.35 [ICRA]A4; ISSUER NOT
Based Bank COOPERATING; Rating
Guarantee moved to the 'Issuer Not
Cooperating' category
Unallocated 1.40 [ICRA]B+(Stable)/[ICRA]A4;
Limits ISSUER NOT COOPERATING;
downgraded from [ICRA]BB-
(Stable)/ [ICRA]A4 and rating
moved to the 'Issuer Not
Cooperating' category
Rationale
The rating downgrade is because of lack of adequate information
regarding ATP performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade.
As part of its process and in accordance with its rating agreement
with Arkiton Tiles LLP, 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. In the absence of requisite
information and in line with the aforesaid policy of ICRA, a rating
view has been taken on the entity based on the best available
information.
Established in September 2017, Morbi-based ATL is promoted by Mr.
Akash Patel, Mr. Pintubhai Kavar, Mr. Hitesh Chatrola, Mr.
Dhirajlal Barasara, Mr. Nakul Vadsola and their family members. ATL
commenced operations from September 2018 and manufactures digital
glazed wall tiles of the dimensions 12"x18" and 12"x24". ATL has
installed capacity to manufacture 60,00,000 boxes per annum
(increased from 34,00,000 boxes per annum).
In FY2020, the firm reported a profit of INR0.6 crore on an
operating income of INR38.0 crore, as compared to a net loss of
INR1.0 crore on an operating income of INR11.4 crore in FY2019.
AXXELENT PHARMA: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Axxelent Pharma
Science Private Limited (APSPL) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating action is:
-- INR670 mil. Term loan due on October 2029 assigned with IND \
BB+/Stable rating.
KEY RATING DRIVERS
The ratings reflect the time and cost overrun risks associated with
APSPL's under-construction manufacturing facility. The total capex
envisaged for the project is INR2,424 million, including funding
for abbreviated new drug applications. The project is being funded
through a promoter's equity contribution of INR884 million and the
remaining INR1,540 million through term loans from banks, where the
company has already received a sanction for an INR1,020 million
term loan and equity of INR432.70 million as of December 2021.
APSPL will complete the construction in two phases. The company is
constructing the first phase which comprises an oral dosage
manufacturing facility; this will entail a cost of around INR1,134
million and is scheduled to be completed by September 2022. The
second phase would involve constructing an injectables
manufacturing facility which will entail a cost of INR640 million
and is scheduled to be completed by December 2022. Both the
facilities will be located at Sricity Tada. The management expects
to commercialize operations at the facilities from FY23. The
company has already completed the construction of a research and
development department (part of phase one) in January 2021 where
contracts have come from customers located in Hungary, china,
United Kingdom Australia and the US.
Liquidity Indicator – Stretched: The firm has already received
the sanction of INR1,020 million term loans, out of which INR351
million has already been disbursed as of December 2021 and the rest
will be disbursed as the construction proceeds will come in. As per
the management, if in any case there is an instance of project cost
overrun, then the promoters will infuse capital through equity. The
debt repayment will start from November 2023, and the moratorium
period is three years where interest is serviced by the promoter.
Moreover, Ind-Ra expects that the debt service coverage ratio and
overall credit metrics to be weak during the initial years of
commencement of operations, before an improvement could be seen in
the ratios in line with the improvement in the scale of operations.
The ratings however are supported by the minimal off-take risk in
view of the promoter's diverse experience of over three decades in
the pharmaceutical industry. The company is leveraging the
promoter's operating track record to establish strong relationships
with its customers and thus obtain contracts. The company booked
revenue of INR5.29 million as of September 2021. The management
expects to book top line of INR15 million in FY22 and INR151
million in FY23, based on an order book of INR87.03 million as of
as of September 2021.
RATING SENSITIVITIES
Positive: Timely and successful project completion along with
substantial orders from the contract development business leading
to the visibility of a profitable business in FY23 as per the
Ind-Ra's expectations will lead to a positive rating action.
Negative: Substantial time and cost overruns in project completion
and lower-than-expected revenue visibility leading to
lower-than-expected in overall credit metrics or a continued stress
in the liquidity position will be negative for the ratings.
COMPANY PROFILE
Incorporated in October 2019 and headquartered in Chennai, APSPL is
engaged in the development and creating intellectual property, and
manufacturing of oral solid dosage, injectables, oral liquids, otic
solutions, ophthalmic and topicals.
BHOLA NATH RAKESH: CRISIL Lowers Rating on INR6.02cr Loan to C
--------------------------------------------------------------
CRISIL Ratings has revised its rating on the long-term bank
facility of Bhola Nath Rakesh Kumar (BNRK; a part of the Harshna
group) to 'CRISIL C Issuer Not Cooperating' from 'CRISIL B/Stable;
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.02 CRISIL C (ISSUER NOT
COOPERATING; Revised from
'CRISIL B/Stable' ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with BNRK for
obtaining information through letters and emails dated November 13,
2021 and January 11, 2022, 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 entity. Such
non-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. The rating with 'issuer not
cooperating' suffix lacks 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 BNRK, which restricts the
ability of CRISIL Ratings to take a forward-looking view on the
entity's credit quality. CRISIL Ratings believes that rating action
on BNRK is consistent with 'Assessing Information Adequacy Risk'.
On account of liquidity issues in the group's account conduct (as
per publicly available information), CRISIL Ratings has revised its
rating on the long-term bank facility of BNRK to 'CRISIL C Issuer
Not Cooperating' from 'CRISIL B/Stable; Issuer Not Cooperating'.
Analytical Approach
To arrive at the rating, CRISIL Ratings has combined the business
and financial risk profiles of Bhola Nath Naresh Kumar (BNNK),
Harshna Fruits (HF), Harshna Ice & Cold Storage (HICS), and BNRK.
This is because all these entities, collectively referred to as the
Harshna group, are in the same line of business, have close
intra-group operational and financial linkages, including fungible
cash flows, and are under a common management.
The Harshna group was established in 1993 by Mr. Rakesh Bhola Nath
Kohli and Mr. Naresh Bhola Nath Kohli, with the establishment of
BNRK and BNNK. Both the firms are commission agents for trading in
apples at Delhi's Azadpur mandi. To establish its own cold storage
facility in Sonipat (Haryana), the group set up HICS in 1999. HICS
has a multi-product cold-storage facility, with capacity of 11,500
tonne, along with ripening chambers. In 2004, the group set up HF,
which supplies fruits to retail stores.
BHOLA NATH: CRISIL Lowers Rating on INR4.0cr Loans to C
-------------------------------------------------------
CRISIL Ratings has revised the ratings on the bank facilities of
Bhola Nath Naresh Kumar (BNNK; part of the Harshna group) to
'CRISIL C Issuer Not Cooperating' from 'CRISIL B/Stable; Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.85 CRISIL C (ISSUER NOT
COOPERATING; Revised from
'CRISIL B/Stable' ISSUER
NOT COOPERATING)
Proposed Long Term 0.15 CRISIL C (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL B/Stable' ISSUER
NOT COOPERATING)
CRISIL Ratings has been consistently following up with BNNK for
obtaining information through letters and emails dated November 13,
2021 and January 11, 2022 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-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BNNK, which restricts CRISIL's
Ratings ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BNNK
is consistent with 'Assessing Information Adequacy Risk'.
On account of liquidity issues in group's account conduct (as per
publicly available information), the ratings on the bank facilities
of BNNK have been revised to 'CRISIL C Issuer Not Cooperating' from
'CRISIL B/Stable; Issuer Not Cooperating'.
Analytical Approach
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of BNNK, Harshna Fruits (HF),
Harshna Ice & Cold Storage (HICS), and Bhola Nath Rakesh Kumar
(BNRK). This is because all these entities, collectively referred
to as the Harshna group, are in the same line of business, have
close intra-group operational and financial linkages, including
fungible cash flows, and are under a common management.
The Harshna group was established in 1993 by Mr. Rakesh Bhola Nath
Kohli and Mr. Naresh Bhola Nath Kohli, with the establishment of
BNRK and BNNK. Both the firms are commission agents for trading in
apples in Delhi's Azadpur mandi. In 1999, the group decided to
establish its own cold storage facility in Sonipat (Haryana), for
which it set up HICS in the same year. HICS currently has a
multi-product cold-storage facility, with capacity of 11,500 tonne,
along with ripening chambers. In 2004, the group set up HF, which
supplies fruits to retail stores.
CHANVIM ENGINEERING: ICRA Keeps B+ Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long term and short-term ratings of Chanvim
Engineering (India) Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.00 [ICRA]B+ (Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Term Loan 3.50 [ICRA]B+ (Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Letter of Credit 12.00 [ICRA]A4; 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.
Established in 1987, CEPL is involved in the manufacturing of RBE
panels from its plant at Gondkhairi, Nagpur. The plant has an
installed capacity to manufacture 1.8 million RBE panels per annum.
During FY2013, CEPL completed a backward integration
project which has improved its control on raw material processing.
CEPL is part of the Borana group (founded in 1970) having interests
in plastics, aluminium and distribution of FMCG products.
CLASSICWIN ENGINEERING: CRISIL Keeps B+ Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Classicwin Engineering Private Limited (CEPL) to 'CRISIL B+/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 15 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with CEPL for
obtaining information through letters and emails dated October 29,
2021 and November 24, 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 CEPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CEPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of CEPL to 'CRISIL B+/Stable Issuer not
cooperating'.
CEPL was incorporated in 2018. CEPL has recently set a unit to
manufacture of critical parts for windmill gear box. CEPL
manufacturing facility is located in Kancheepuram District,
Chennai. CEPL is owned & managed by Mr. Chenniappan, Mr.
Vijayakumar and Mr. Keerthivasan.
D.R. COATS: ICRA Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------
ICRA has retained the long term and short-term ratings of D.R.
Coats Ink & Resins Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 12.00 [ICRA]B+(Stable); ISSUER NOT
Cash Credit COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
Fund based– 1.04 [ICRA]B+(Stable); ISSUER NOT
Term Loan COOPERATING; Rating continues to
remain under 'Issuer Not
Cooperating' category
Fund based– 3.40 [ICRA]A4; ISSUER NOT
Packing Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Non fund 9.40 [ICRA]A4; ISSUER NOT
Based limits 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.
D.R. Coats Ink & Resins Private Limited (DRCPL) was incorporated in
the year 2003. The company is in the business of manufacturing
synthetic resins such as polyamides, ketonic resins and epoxy
resins, which mainly find applications in paint & ink
manufacturing, production of adhesives, wood polish and acrylic
production. The company has steadily expanded its capacity over the
years from around 360 MTPA in 2006 to current levels of about
10,000 MTPA.
DEE VEE: Ind-Ra Keeps BB+ Loan Rating in Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Dee Vee Projects
Limited's (DVPL) rating in the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will continue to appear as 'IND BB+
(ISSUER NOT COOPERATING)' on the agency website.
The instrument-wise rating actions are:
-- INR266 mil. (reduced from INR430 mil.) Term loan due on
December 2025 maintained in non-cooperating category with IND
BB+ (ISSUER NOT COOPERATING) rating;
-- INR160 mil. Fund-based working capital limit*# maintained in
non-cooperating category and withdrawn;
-- INR1,758.7 bil. Non-fund based working capital limit%#
maintained in non-cooperating category and withdrawn;
-- INR60 mil. Proposed fund-based working capital limit*^
maintained in non-cooperating category and withdrawn; and
-- INR691.3 mil. Proposed non-fund-based limit$^ maintained in
non-cooperating category and withdrawn.
*Maintained at IND BB+ (ISSUER NOT COOPERATING) before being
withdrawn.
%Maintained at IND BB+ (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER
NOT COOPERATING) before being withdrawn
$ Maintained at IND A4+ (ISSUER NOT COOPERATING) before being
withdrawn.
# Ratings withdrawn as the company has provided the agency with
no-objection certificates (NOCs) from the lenders and Ind-Ra is no
longer required to maintain the ratings for these facilities. For
term loans, DVPL has not provided NOCs for some of the facilities,
and their rating remains outstanding.
^The agency understands from DVPL that these facilities have not
been utilized and DVPL no longer intends to utilize the same, and
hence the ratings for the same are being withdrawn.
KEY RATING DRIVERS
The ratings continue to be in the non-cooperating category as the
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by Ind-Ra.
The current outstanding rating 'IND BB+ (ISSUER NOT COOPERATING)'
may not reflect DVPL's credit strength as the issuer has been
non-cooperative with agency since February 17, 2020. Therefore,
investors and other users are advised to take appropriate caution
while using the ratings.
COMPANY PROFILE
Incorporated in 2012, DVPL undertakes construction work of
buildings, roads, and housing projects for state government
agencies in Chhattisgarh, Madhya Pradesh, Odisha, Jharkhand, and
Maharashtra. Its corporate office is in Korba, and its registered
office is in Raipur, Chhattisgarh. Nanji Bhai Patel, promoter and
director, looks after the company's finance. The other directors,
Dinesh Patel, Vikas Ranjan Mahto, and Navin Patel contribute to the
overall management of the company.
EMERALD ALCHYMICUS: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the long term and short-term ratings of Emerald
Alchymicus 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
---------- ----------- -------
Fund based 7.50 [ICRA]D; ISSUER NOT COOPERATING;
Limits Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-Fund 5.75 [ICRA]D; ISSUER NOT COOPERATING;
based Limits 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.
Incorporated in 2003, Emerald Alchymicus P Limited (EAPL) is
involved in trading of chemicals. The company derives its revenue
from two segments viz. Stock & Sell and Commercial segment. In case
of Stock & Sell, the company imports specialty chemicals from
various overseas suppliers and maintains an inventory of the same
whereas in the case of Commercial segment, the customers place bulk
orders with EAPL for various chemicals and based on these orders,
EAPL procures the materials from the suppliers and supplies
directly to the customers.
FLAMINGO PHARMACEUTICALS: Ind-Ra Assigns 'BB+' LT Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Flamingo
Pharmaceuticals Limited (FPL) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Positive.
The instrument-wise rating actions are:
-- INR540 mil. Fund-based working capital limits assigned with
IND BB+/Positive/INDA4+ rating;
-- INR3 mil. Term loan due on FY22 assigned with IND BB+/
Positive rating; and
-- INR110 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
ANALYTICAL APPROACH: Ind-Ra has taken a consolidated view of FPL
and its 100% UK-subsidiary Flamingo Pharma (UK) Limited (FPLUK),
hereafter referred as FPL, as the entities have a common top
management and centralized treasury which lead to strong
operational and strategic ties. FPLUK was established to enable FPL
to sell its products in the UK market. Entire sales of FPLUK are
being imported from FPL's India facilities.
The Positive Outlook reflects FPL's almost complete repayment of
its term loan as of March 2021 which was taken in 2011 to set up
its two UK-MHRA and US FDA-approved manufacturing units in Nanded,
Maharashtra. While FPL had incurred a major capex of around
INR1,450 million in 2011, and completed the construction of the
facilities in 2015, the company faced a delay of two years from
2013 to 2015 in receiving the plant approvals and product approvals
from the UK-MHRA and USFDA, leading to a delay in the commencement
of operations at its plants. As FPL's repayment schedule had begun
before it started operations at its plants, the company was unable
to generate any sales revenue from the Nanded plant and incurred
heavy loss in FY17 that had to be funded in addition to the
repayment of term loans. As a result, FPL saw higher cash outflow
than inflow, leading to a delay in servicing its debt obligations.
The company remained under stress during FY16-FY20, with it
delaying its servicing of debt. However, it saw a turnaround in its
condition since October 2020, with the company starting to repay
its dues on time and also seeing an increase in its EBITDA
margins.
FPL took a term loan of INR1,150 million in 2011 which was brought
down to INR3 million as of January 7, 2022, Ind-Ra expects FPL to
pay off its term loan completely by the end of FY22. The company
has not incurred any major capex in the past four years and is not
planning to take any loans in the medium-term. Ind-Ra takes comfort
in knowing that one of its banks has sanctioned a working capital
term loan of INR200 million and cash-credit (CC) limit of INR30
million to fulfill FPL's working capital requirements, thereby
converting its short-term debt to long-term and aiding it to
improve its liquidity. As the company has received a no objection
certificate from all banks for availing these limits, Ind-Ra
expects this loan to be availed by the end of January 2022 and
thereby improving its stretched liquidity.
KEY RATING DRIVERS
Liquidity Indicator - Stretched: The ratings reflect FPL's
stretched liquidity with its maximum utilization per month for the
12 months ended December 2021 remaining at 95.17%, leaving FPL with
very little room to fund any additional working capital
requirements. The ratings also reflect occasional instances of
delays in its packing credit facility, leading to a Special Mention
Account (SMA)-0 reporting by the bank. FPL has been using internal
accruals to repay its debt obligations, leading to an increase in
its percentage of fund-based bank limit utilization (BLU). The
company's average of maximum utilization per month for the 12
months ended December 2021 was 95.17%. Ind-Ra expects this to
improve from FY23 on account of a lack of any major term loan
repayments thereby using internal accruals to fund working capital
requirements. FPL has had occasional instances of overuse of its
packing credit loan in foreign currency limits due to fluctuations
in currency rates and three instances of delays in its packing
credit loan in foreign currency account leading to a SMA-0
reporting by the bank which was rectified in 5-7 days and presently
the account is regular from October 2020, according to the bank.
There have been no other instances of delays in payments, as the
company has been making timely repayments of its term loan since
October 2020, as confirmed by the bankers.
FPL's networking capital cycle increased in FY21 to 78 days (FY20:
20 days) due to a decrease in creditor days to 158 days (202). The
company gets a 90-day credit period from its suppliers; as per the
management, the company had asked for an extended credit period due
to the delay in its shipments in few instances. Based on its H1FY22
figures, its creditors were reduced to INR404 million from INR729
million in FYE21. Its inventory days have been high in the range of
130-180 days during FY19-FY21, given its nature of business. Ind-Ra
expects the working capital cycle to remain the same.
Commoditized Products: FPL majorly manufactures older generation of
medicines like antibiotics, non-steroidal anti-inflammatory drugs,
cardiac care drugs, and anti-diabetic drugs, which have been in the
market for a long time and yield lower margins than new generation
of medicines. Also, it manufactures commoditized products which
yield lower margins than branded medicines and can be
interchangeable with other generic drugs available in the market.
However, Ind-Ra takes comfort from FPL's vast range of products,
with around 2000 registrations in various countries.
Customer Concentration Risk: FPL's top three customers contributed
around 54% to the total revenue in FY21 (FY20: 60%), but this risk
has been partially mitigated given FPL's top customer is FPL(UK)
that contributes 32% to the total revenue. Ind-Ra also takes
comfort from FPL being associated with Israel-based Teva as the
company has a 10% of contract manufacturing with the latter in the
Netherlands for the past 16 years.
Healthy EBITDA margin: FPL significantly increased its EBITDA
margin to 29.78% in FY21 (FY20: 16.58%), on account of: 1) an
increase in its share of sales to regulated markets to 58% in FY21
(FY20: 44%), mainly led by a rise in its sales to its subsidiary in
the UK to 35% of total sales (20%), and 2) a decrease in the
percentage of raw material costs to its revenue to 44% in FY21
(50%) on account of a decline in raw material prices. The margin
profile also benefited from an increase in the share of its sales
to the regulated markets in relation to un-regulated markets,
leading to higher realization. However, Ind-Ra believes the margins
would contract in FY22, because of an increase in the raw material
prices. FPL's ROCE doubled in FY21 to 22.7% (FY20: 9.23%) on
account of a significant increase in its absolute EBITDA to
INR715.8 million (INR396.27 million). Ind-Ra expects ROCE to be
normalized in FY22 due to the normalization of their EBITDA
margins.
Comfortable Credit Metrics: FPL's gross interest coverage improved
to 11.61x in FY21 (FY20: 4.52x), owing to higher absolute EBITDA
and lower its gross interest expense of INR61.64 million (INR87.73
million). Ind-Ra expects the gross interest coverage to fall in
FY22 on account of a likely decline in absolute EBITDA, as
indicated in 1HFY22 financials. This would be despite an
improvement in EBITDA in 2HFY22 due to an increase in its exports
in Q4FY22, as per the management. FPL's net leverage improved to
1.22x in FY21 (FY20: 2.45x) due to a decrease in the term loan to
INR181.46 million in FY21 (FY20: INR351.41 million) and higher
absolute EBITDA. Ind-Ra expects its net leverage to increase
marginally on account of an expected decrease in EBITDA in FY22.
From FY23, Ind-Ra expects credit metrics to improve marginally, led
by a decrease in debt and a likely increase in absolute EBITDA.
Medium Scale of Operations: Ind-Ra has taken cognizance of FPL's
ability to improve its bottom line over years despite its top line
being affected. FPL has medium scale of operations. FPL had
expected to use revenue-led cash inflow to fund its large term-loan
repayments. Instead, it had to use its internal accruals to repay
the term loan instalments and was unable to fund any additional
orders, due to delayed project completion. FPL prioritized higher
EBITDA yielding products due to limited availability of funds in
hand, resulting in its revenue being range-bound between INR 2,500
million and INR3,000 million during FY15-FY21. Ind-Ra expects FPL's
revenue to improve gradually from FY23 on account of a lack of any
huge term loan repayments; its internal accruals will be
re-directed to fund additional orders. FPL's increasing share in
the regulated markets will further boost its sales.
RATING SENSITIVITIES
Negative: Inability to improve the liquidity position or a
substantial deterioration in the credit metrics will lead to a
negative rating action.
Positive: Any improvement in liquidity while maintaining its credit
metrics will lead to a positive rating action.
COMPANY PROFILE
FPL is a formulation company specializing in the development and
manufacture of solid oral formulations. It was founded in 1985 by
Ashwin Thacker, a first-generation entrepreneur. FPL has four
plants across Maharashtra: one each in Rabale and Taloja, and two
units in Nanded. FPL's promoter has over 40 years of experience in
the pharmaceutical sector. The company, which specializes in
development and manufacturing of solid oral formulations, exports
its product to over 50 countries. It has manufacturing units with
accreditations of WHO-GMP, UKMHRA, USFDA, TGA, etc.
FPL is engaged only in formulations and its entire products are
being exported. Its all plants are either in special economic zones
or export-oriented units. FPL's top five products include
-Ibuprofen 200 mg tablets, Clotrimazole and Betamethasone 20gm
cream, Mefenamic acid capsules, Amoxycillin 500 Mg capsule &
Carbocisteine 375 mg capsules.
FUTURE GROUP: Mulls SC Bid to Avoid Default Tag
-----------------------------------------------
Reuters reports Future Group plans to challenge its own lenders
before the Supreme Court to avoid being named a defaulter for
missing payments, citing its ongoing dispute with partner
Amazon.com Inc, three sources told Reuters on Jan. 20.
Future, India's second-largest retailer, has since 2020 failed to
complete its $3.4 billion retail asset sale to a rival due to
successful legal challenges by Amazon, which argues the Indian
group violated certain non-compete contractual terms the two sides
had, the report says. Future denies any wrongdoing.
Reuters relates Future told Indian exchanges this month it was
unable to pay INR35 billion ($470 million) it owed to its lenders
on Dec. 31 as it could not sell certain small stores due to the
dispute with Amazon. It had hoped to use a 30-day grace period to
resolve the situation.
Beyond that, banks are bound by Indian law to classify Future's
accounts as a "non-performing asset", and declare it as a
defaulter, further complicating the financial position of the
debt-laden company, Reuters notes.
Sources told Reuters Future was readying an approach to the Supreme
Court within days to urge judges to stop its lenders from taking
any drastic steps and extend timelines to allow it to sell its
small stores and clear its dues. Future's 1,700 outlets include
roughly 900 small-sized stores, with the rest being large-format
hypermarkets and fashion outlets. Further, Future is also likely
to ask judges to direct the country's central bank to extend the
30-day regulatory grace period and ask the lenders to not declare
the Indian retailer as an NPA for the time being, one of the
sources said, Reuters relays.
According to Reuters, Future's plans signal growing distress at the
Indian retail group, which has said it fears liquidation and more
than 27,000 job losses at its main retail arm, Future Retail, if
its asset sale plan to rival Reliance Industries fails.
According to Reuters, one banker who has exposure to Future said
lenders will be forced to make financial provisions in their books
in line with regulations if Future does not pay up by the end of
January, unless there "is a legal angle and a court gives an order
to put a hold on it."
Amazon has long argued that Future violated the terms of a 2019
deal they had signed when the U.S. firm invested $200 million in a
Future unit, Reuters says. The U.S. company's position has so far
been backed by a Singapore arbitrator and Indian courts.
About Future Group
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
Cash-strapped Future Group owes around INR19,000 crore to banks and
INR6,000 crore to the vendors. Future Retail Limited owes INR6,278
crore debt with 28 banks, including SBI, Union Bank, Bank of India,
Bank of Baroda, Axis Bank, and IDBI Bank, among others.
Future, India's second-largest retailer, has sought to complete its
$3.4 billion retail asset sale to Reliance Retail since 2020. The
Indian Supreme Court has upheld the Singapore Emergency
Arbitrator's award against Reliance Retail's takeover of Future
group companies.
GAJANAN EXTRACTION: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Gajanan
Extraction Limited (GEL) continue to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 4.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Standby Line
of Credit 3.00 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with GEL for
obtaining information through letters and emails dated October 16,
2021 and December 04, 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 GEL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GEL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GEL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
GEL was originally incorporated as a private limited company in
1985, promoted by Mr. Purshotam Taori, Mr. Rajendra Bhala, and Mr.
Radheshyam Chandak. In 2006, it was reconstituted as a closely held
public limited company. GEL extracts and processes edible oil
(solvent oil as well as refined oil) and manufactures de-oiled
cakes. The company has its manufacturing units at Parali in Beed
district (Maharashtra).
GEMSTONE CERAMIC: ICRA Moves B+ Debt Rating to Not Cooperating
--------------------------------------------------------------
ICRA Ratings has moved ratings on certain bank facilities of
Gemstone Ceramic LLP (GCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 6.80 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Cash Credit 3.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Bank Guarantee 1.00 [ICRA]A4; ISSUER NOT
COOPERATING; Rating moved to
the 'Issuer Not Cooperating'
category
Rationale
The rating downgrade is because of lack of adequate information
regarding GCL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgraded.
As part of its process and in accordance with its rating agreement
with Gemstone Ceramic LLP, 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. In the absence of requisite information and in
line with the aforesaid policy of ICRA, a rating view has been
taken on the entity based on the best available information.
Established in March 2018, GCL is setting up a greenfield project
at Morbi to manufacture glazed wall tiles. The unit has an
estimated installed capacity of producing ~28,800 MT of tiles
annually. The firm's commercial operation commenced from February
2019. The partners have adequate experience in the ceramic industry
vide their association with another entity.
GOVARDHAN STEELS: ICRA Lowers Rating on INR10cr Loans to B+
-----------------------------------------------------------
ICRA Ratings has revised ratings on certain bank facilities of
Shree Govardhan Steels Private Limited (SGSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term– 8.00 [ICRA]B+ (Stable); ISSUER NOT
Fund Based COOPERATING; Rating downgraded
From [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Long Term– 2.00 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Rating downgraded
From [ICRA]BB- (Stable) and
continues to remain under
'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding SGSPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade. As part
of its process and in accordance with its rating agreement with
Shree Govardhan Steels Private Limited, 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. ICRA has also been sending repeated
reminders to the entity for payment of surveillance fee that became
due. However, despite multiple requests by ICRA, the entity's
management has remained noncooperative on information as well as
fees. In the absence of requisite information and in line with the
aforesaid policy of ICRA, a rating view has been taken on the
entity based on the best available information.
Shree Govardhan Steels Private Limited (SGSPL), incorporated in the
year 2010, is engaged in manufacturing of structural steel products
like mild steel angles, mild steel bars, steel flats, metal rolls
etc. The company's manufacturing facility is located at Kasganj
(U.P). and has an installed capacity of 30000 tons per annum.
HINDUSTAN AGENCIES: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hindustan
Agencies' 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:
-- INR269 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating; and
-- INR4 mil. Non-fund-based working capital limits migrated to
non-cooperating category with INR A4+ (ISSUER NOT
COOPERATING) rating;
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 11, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Hindustan Agencies is engaged in the distribution of food items,
mainly tin food items, for companies such as Dabur, MDH, Britania,
Nestle, Himalaya, Vicco, Coco Cola, Mother Dairy, Tata Tea,
Kellogg’s and many others, with an exclusivity arrangement for
Bhubaneshwar and also for some other brands.
HINDUSTAN DISTRIBUTORS: Ind-Ra Moves BB+ Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hindustan
Distributors' 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:
-- INR200 mil. 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
December 11, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Hindustan Distributors is engaged in the distribution business in
modern trade as well as retail channels for companies such as
Hindustan Unilever Limited, Colgate-Palmolive (India) Limited,
Cadbury, Dabur and others for the Bhubaneshwar region.
HOTEL GANESH: CRISIL Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Hotel Ganesh
Private Limited (HGPL) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Rupee 10 CRISIL B/Stable (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with HGPL for
obtaining information through letters and emails dated October 16,
2021 and December 21, 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 HGPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HGPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
HGPL, incorporated in 2006, owns a 90-room hotel at Nungambakkam in
Chennai. The hotel is currently under renovation and is expected to
resume operations in January 2017. HGPL is promoted by Mr. M. Raj
Pradeep and his family members.
ISWARYA TEXTILE: Ind-Ra Affirms BB- Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sree Iswarya
Textile Private Limited's (SITPL) Long-Term Issuer Rating at 'IND
BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR30.00 mil. Fund-based working capital limits affirmed with
IND BB-/Stable/IND A4+ rating;
-- INR270 mil. Term loans due on October 2024 affirmed with IND
BB-/Stable rating; and
-- INR150 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating.
KEY RATING DRIVERS
Liquidity Indicator - Stretched: SITPL's cash flow from operations
turned negative to INR60.21 million in FY21 (FY20: INR34.88
million) due to an increase in inventory. The net working capital
days elongated to 25 days in FY21 (FY20: negative INR32 million)
due to an increase in the inventory holding period to 137 days (42
days). SITPL's directors infused unsecured loans of INR44.26
million and the company availed a guaranteed emergency credit line
of INR55.32 million in FY21 to support its working capital
requirements. The peak average utilization of the fund-based and
the non-fund-based working capital limits was 86.89% and 67.96%,
respectively, for the 12 months ended December2021. The cash and
cash equivalents were low at INR1.62 million at FYE21 (FYE20:
INR1.03 million). SITPL has scheduled debt repayments of INR80.48
million and INR90.28 million during FY22 and FY23, respectively.
Ind-Ra expects the cash flow from operations to turn positive in
the near term owing to a likely improvement in profitability.
The ratings remain constrained by the company's small scale of
operations despite an improvement in the revenue to INR607.11
million during 9MFY22 (1HFY21: INR215 million) owing to increased
orders. During FY21, the revenue declined to INR660.76 million
(FY20: INR754.69 million) due to lower receipt of number of orders
on account of the ongoing Covid-19 pandemic. The management expects
the company to book sales of INR280 million-300 million till March
2022. SITPL is also replacing its non-compact frames with compact
frames for increased production of yarn, higher realization and
higher count strength product. Ind-Ra expects the revenue to
improve in the near term owing to stability in the textile
industry.
The ratings are also constrained by the cyclical and fragmented
nature of the spinning industry, and intense competition among
domestic spinners.
However, the ratings remain supported by AITPL's healthy EBITDA
margins of 30.56% in 9MFY22 (FY21: 32.21%, FY20: 36.05%). The
decline in margins in FY21 was owing to increase in raw material
costs and personnel expenses. EBITDA excluding windmill receipt
from the sister concern Sri Jayajothi Textile Mills Private Limited
stood at INR105.51 million in FY21 (FY20: INR146.07 million) and
margins at 15.97% (19.35%). The return on capital employed was 16%
in FY21 (FY20: 35%).
The ratings also continue to benefit from the company strong credit
metrics. The gross interest coverage (operating EBITDA/gross
interest expense) improved to 4.01x in FY21 (FY20: 2.30x) owing to
decrease in interest expenses. However, the net leverage (total
adjusted net debt/operating EBITDA) deteriorated to 2.64x in FY21
(FY20: 1.73x) due to an increase in the total debt taken during the
end of year. In 9MFY22, the gross interest coverage was 4.71x and
net leverage was 1.95x. Ind-Ra expects the credit metrics to remain
strong owing to the healthy profitability and scheduled repayment
of bank loans.
The ratings also benefit from the promoters' four decades of
experience in the manufacturing of cotton yarn, leading to
established relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: A decline in the scale of operations, leading to the net
leverage exceeding 5x and/or deterioration in the liquidity
profile, all on a sustained basis, will be negative for the
ratings.
Positive: An improvement in the scale of operations and/or
improvement in the liquidity profile, leading to an improvement in
the credit metrics, all on a sustained basis, will be positive for
the ratings.
COMPANY PROFILE
SITPL, established in 1996, manufactures cotton yarn and generates
electricity. Its day-to-day operations are managed by Sethurama
Murugan.
JASPER AUTO: Ind-Ra Assigns 'BB' Term Loan Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jasper Auto
Services Private Limited's (JASPL) term loan a rating of 'IND BB'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR110 mil. Term loan due on FY27 assigned with IND BB/Stable
rating.
Analytical Approach: Ind-Ra has taken a consolidated view of JASPL
and its subsidiaries Adithya Automotive Applications Private
Limited (70.95% stake), Jasper Auto Recyclers Private Limited
(100%) and Indicor Steel Private Limited (Indicor; 52.5%), while
assigning the ratings. The ratings also factor in support from the
Jasper group and its flagship entity, Jasper Industries Private
Limited (JIPL) on account of JASPL's strong legal and operational,
and moderate strategic linkages with JIPL.
The ratings reflect JASPL's weak credit metrics, investments in
subsidiary and customer concentration risks. However, the ratings
are supported by the company's strong legal and operational
linkages with JIPL and a likely improvement in the group's
operational performance from FY22.
KEY RATING DRIVERS
Moderate Operating Performance, Improvement Likely from FY22: The
consolidated revenue declined to INR691 million in FY21 (FY20:
INR1,525 million) owing to closure of operations at its loss-making
subsidiary Indicor during FY21 (likely to resume from FY23) and a
decline in JASPL's rental income amid the Covid-19 pandemic.
However, the consolidated EBITDA improved to INR17 million in FY21
(FY20: INR10 million) on account of reduced losses due to the
shutting down of operations at Indicor. Ind-Ra expects the group's
operational performance to improve in FY22, especially at tipper
body manufacturer, Aditya Automotive Applications Private Limited
(AAAPL), on account of a likely uptick in sale of tipper trucks
amid increased government emphasis. The agency expects the revenue
to improve to INR750 million-850 million and the EBITDA to INR30
million-40 million in FY22 on account of higher absorption of fixed
costs and the likely sharing of mall maintenance costs with tenants
from 4QFY22.
Weak Credit Metrics: The net leverage (net debt/EBITDA) stood at
5.8x in FY21 (FY20: 29.3x) and gross interest coverage
(EBITDA/gross interest) at 0.9x (0.3x). While the credit metrics
are likely to improve on account of the recovery in EBITDA levels
from FY22, it is likely to remain weak with the net leverage at
5.0x-6.0x and gross interest coverage at 1.5x-2.0x. Ind-Ra derives
some comfort from the company's adequate internal cash flows from
rental and commission income from JIPL, which would be adequate to
meet its interest and repayment obligations.
Liquidity Indicator - Stretched: JASPL does not have any standalone
working capital limits. It had a low cash balance of INR24 million
at FYE21 (FYE20: INR11 million). The company raised a term loan of
INR110 million in April 2021 to repay Indicor's debt and redeem its
non-cumulative preference shares. The working capital cycle
improved to 33 days in FY21 (FY20: 54 days; excluding built-up area
inventory relating to 20% ownership of Trendset mall of INR323.1
million) due to the closure of operations at Indicor and extension
of credit period to AAAPL amid Covid-19 and a slowdown in the
commercial vehicle (CV) segment. However, Ind-Ra expects the
working capital cycle to elongate to 45 days in FY22 on the back of
a likely increase in payables.
JASPL's cash flow from operations is likely to turn negative to
INR80 million-120 million in FY22 and negative INR10 million-25
million in FY23 (FY21: INR224 million), owing to the elongation of
the working capital cycle. Furthermore, the company has an annual
maintenance capex of INR10 million-15 million in FY22 and INR65
million-75 million in FY23 for its JARPL plant. Ind-Ra expects
AAAPL's working capital limits of INR150 million (unutilized as of
March 2021) to be adequate to finance the consolidated debt
repayment of INR17 million, and fund cash outflows and maintenance
capex in FY22. On a standalone basis, the agency expects JASPL's
rental and commission income, along with interest income to be
adequate to meet its debt repayments. On a consolidated basis, the
group could require debt funding to meet its planned capex at JARPL
as well as working capital requirements in FY23.
A further elongation of the working capital cycle or delay in
recovery of operations could lead to a stretch in JASPL's liquidity
position.
Investment at JARPL: JARPL plans to set up a plant for scrappage of
CV and passenger vehicles, for which equity of INR10.1 million has
been infused in the entity by JASPL. The estimated project cost is
INR100 million, of which INR35 million would be used for leasing of
machinery from Tata Motors Finance Limited and INR60 million will
be raised through term loans to be arranged by Tata Motors Limited
(TML); however, the loan terms are yet to be finalized. The company
expects the plant to become operational in 1QFY23 and scrap 40,000
vehicles per day on stabilization of operations, with internal cash
accruals being adequate for funding the repayments. Timely
stabilization of plant is a key rating monitorable, as JASPL's cash
flows may not be adequate to support JARPL's debt repayment.
Segment and Customer Concentration Risks: The group derives
majority of its revenue and operating profits from TML's CV
segment. AAAPL manufactures bodies for trippers of TML, and thus,
derives majority of its revenue from TML. Also, the new scrappage
plant at JARPL would provide services to TML. Moreover, JASPL
derives a majority of its revenue in the form of rental income from
leasing of showroom to JIPL and workshop to TML, as well as
commission on financing sales of JIPL. JIPL accounts for around 90%
of the group's revenue, and is a dealer of TML's CV. This exposes
the group to cyclical downturns in the CV segment, as well as lower
demand for TML's CV segment and competition from other TML CV
dealers.
Strong Linkages with JIPL: The legal linkages among JASPL, JIPL and
Jasper group are strong as JASPL's term loan (entire standalone
debt) is backed by a cross-default guarantee by JIPL. Furthermore,
the term loan is secured by collateral and corporate guarantee
provided by the group company, Jasper Auto Parts Private Limited.
JASPL's redeemable preference shares (considered 50% of the debt)
are held by JIPL. Therefore, of the consolidated adjusted debt of
INR183 million at 1HFYE22 (FY21: INR124 million), 74% (25%) is
backed by cross-default guarantees and collateral of group
companies held by JIPL.
The operational linkages are strong as all the three directors on
JASPL's board are also on the board of JIPL. Moreover, JIPL and
JASPL group have common departmental heads. The group entities have
a common treasury. Furthermore, JASPL derives more than 50% of its
standalone revenue directly or indirectly from JIPL.
The strategic linkages are moderate as JIPL remains the key entity
for the group with limited contribution from JASPL and its
subsidiaries.
Standalone Performance: JASPL reported revenue of INR23.3 million
in FY21 (FY20: INR57.3 million), EBITDA margins of 41% (69%) and
interest coverage of 3.1x (1.9x).
RATING SENSITIVITIES
Positive: A substantial growth in the profitability, leading to the
net leverage reducing below 4.0x on a sustained basis and/or
strengthening of financial/credit profile of JIPL, on a sustained
basis, would result in a positive rating action.
Negative: A decline in profitability resulting in deterioration in
the liquidity and credit metrics and/or weakening of
financial/credit profile of JIPL, all on a sustained basis, will
lead to a negative rating action.
COMPANY PROFILE
JASPL is a part of Jasper group and operates in the real estate
business. The company is one of the landowners and has a 20% share
of the total built up area of Trendset mall in Vijayawada, Andhra
Pradesh. It derives revenue primarily from rent and commissions.
JMG AUTOMOBILES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of JMG
Automobiles continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.1 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Credit 1.65 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 0.15 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 0.40 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JMG for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 JMG, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JMG
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JMG continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
JMG is an authorized dealer of two-wheelers of HMCL in Cuttack,
Odisha.
K.P.R. AGROCHEM: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the Long-Term and Short Term ratings of K.P.R.
Agrochem Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 100.00 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund based- 199.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Long-Term
Unallocated 49.50 [ICRA]D; ISSUER NOT COOPERATING;
Rating continues to remain under
'Issuer Not Cooperating'
Category
Non-Fund 150.00 [ICRA]D; ISSUER NOT COOPERATING;
Based Letter Rating continues to remain under
of Credit 'Issuer Not Cooperating'
Category
Non-Fund 1.50 [ICRA]D; ISSUER NOT COOPERATING;
Based Bank Rating continues to remain under
Guarantee '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.
K.P.R Agrochem Limited (KPR, erstwhile known as KPR Fertilisers
Limited) was setup in 2007 and is the flagship of KPR Group, which
was started by Mr. Kovvuri Papa Reddy in 1975. KPR is engaged in
manufacturing of NPK Mixtures, Agrochemicals, Di
Calcium Phosphate (DCP - animal feed), Singe Super Phosphate (SSP),
Sulphuric Acid, Di-Methyl Sulphate (DMS), LABSA, Oleum etc. It has
manufacturing facilities in Biccavolu in East Godavari District of
Andhra Pradesh and Halavarthi in Koppal District of Karnataka for
each of the major products, i.e. NPKL mixtures, SSP, DCP &
Sulphuric acid. The company has a separate manufacturing facility
for agrochemicals at Balabhadrapuram, Andhra Pradesh. KPR has also
set-up a waste heat recovery plant at its manufacturing facility at
Biccavolu and Koppal, to generate power in order to optimally use
the steam produced during the manufacturing of sulphuric acid. The
aggregate capacity of the power plants is 2.5 MW (1.5 MW at
Biccavolu and 1 MW at Koppal) which caters to the captive power
requirements. KPR has a wholly-owned subsidiary, Sri Sai Swarupa
Seeds Private Limited, which is involved in seed processing
business and has an installed capacity of 15,000 TPA.
KARNATAKA STATE: Ind-Ra Assigns BB+ Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Karnataka State Road
Transport Corporation's (KSRTC) bank facilities as follows:
-- INR2,885.50 bil. Bank loan assigned with IND BB+/Stable
rating; and
-- INR2,114.50 bil. Proposed bank loan assigned with IND BB+
/Stable rating.
Analytical Approach: Although KSRTC's policy and strategic
decisions are controlled by the government of Karnataka (GoK), the
entity does not receive any explicit financial support from the
state government to meet the debt service obligations in a timely
manner. Hence, Ind-Ra has classified KSRTC as a non-dependent
public sector entity and has applied a bottom-up approach based on
its Rating Criteria for Public Sector Entities.
KEY RATING DRIVERS
The ratings reflect KSRTC's weak standalone credit profile. Its
main source of income is traffic revenue from the sale of tickets,
followed by the revenue grants received from the GoK. The
corporation's revenue also includes non-traffic revenue, commercial
establishment revenue, and advertisements revenue. KSRTC's
operational performance deteriorated in FY21 due to the impact of
COVID-19-led disruptions. The effective kilometers (km) operated by
KSRTC fell 47.99% yoy to 5,392 lakh km in FY21, and the number of
operated schedules fell to 7,486 (FY20: 8,173). The total income
declined 39.85% yoy to INR22,768.25 million in FY21, as the traffic
revenue from the sale of tickets dropped 50.66% yoy. Ind-Ra expects
the operational performance to remain subdued in FY22 due to lower
passenger load compared to pre-pandemic levels. In the pre-COVID-19
period, KSRTC's operational performance had been comfortable, as it
operates in the largest area of the state.
The ratings are constrained by KSRTC's weak operating
profitability. The corporation incurred an EBITDA loss of
INR2,750.74 million in FY21 (FY20: EBITDA profit of INR812.61
million; EBITDA margin of 2.15%), although expenditures fell 31.10%
yoy to INR27,416.43 million. Its EBITDA had been above INR812
million during FY18-FY20. The operating losses in FY21 resulted
from the sharp fall in income, the continued high fixed costs, and
an increase in fuel prices. The operating cost is generally high
for road transportation corporations and KSRTC cannot pass on
increased operational cost to its customers as it does not operate
with a profit maximization objective.
Liquidity Indicator – Stretched: The corporation's liquidity
profile is stretched due to the incurring of losses. KSRTC reported
a cash loss of INR3,093.79 million in FY21 against a cash profit of
INR520.81 million in FY20. Although the debtor's collection period
remained below 12 days during FY17-FY21 (FY20: 7 days), creditors
days were high at over 89 days during FY17-FY20 and stretched to
174 days in FY21 (FY20: 89 days).
During FY17-FY21, KSRTC deferred payments of suppliers to maintain
a comfortable cash position and to timely pay its debt service
commitments. Its debt service commitments accounted for just 4.15%
of the total income in FY21 and the debt service coverage ratio was
negative during the year due to the EBITDA loss. KSRTC's debt
service commitments are likely to be about INR1,040 million in FY22
and the corporation is likely to defer payments to creditors
further to timely meet its debt service requirements. The debt
service coverage ratio and debt /EBITDA stood at 0.94x and 3.96x,
respectively, in FY20.
The ratings however derive strength from the support provided by
the GoK to KSRTC in the form of revenue and capital grants, which
are part of the budgetary allocation. However, the use of capital
grants is limited to the purchase of buses under the specific
schemes and the GoK reimburses the concessional ticket charges
issued under various heads such as students passes and concession
to senior citizens.
Moreover, KSRTC executes strategically important work in the state.
Since the corporation is providing an important public mission
service, Ind-Ra considers the entity to be strategically
significant to the GoK. KSRTC is under direct supervision of the
GoK, and the strategies and policies are dictated by the GoK's
representatives on the board. In Ind-Ra's view, this indicates
substantial control of the sponsors over KSRTC.
RATING SENSITIVITIES
Positive: The following developments, individually or collectively,
could lead to a positive rating action:
- the debt service coverage ratio exceeding 1x on a sustained
basis
- an improvement in the EBITDA
- the strengthening of KSRTC's relationship with the GoK
Negative: The following developments, individually or collectively,
could lead to a negative rating action:
- a significant and unexpected increase in the debt burden,
leading to pressure on the entity's ability to service debt on a
timely basis
- any weakening of the linkages with the GoK
COMPANY PROFILE
KSRTC is a limited liability company, majorly owned by the GoK
(83.47%) and government of India (16.53%). It was formed in 1961
under Section 3 of the Road Transport Corporation Act,1950. KSRTC
operates buses and provides road transport services to public in
Karnataka and neighboring states. KSRTC's corporate office is in
Bangalore. It covers 17 districts (Bangalore Urban, Bangalore
Rural, Ramanagar, Kolar, Chickballapur, Tumkur, Chitradurga,
Davanagere, Shivamogga, Mangalore, Udupi, Chickmagalur, Hassan,
Mysore, Mandya, Chamarajnagar, Coorg) in the state under its
operational jurisdiction. KSRTC had 83 depots as of November 2021.
KATARIA CARRIERS: CRISIL Lowers Rating on INR9.5cr Loans to B
-------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Kataria Carriers (KC) to 'CRISIL B/Stable Issuer Not Cooperating'
from 'CRISIL BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 2 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Term Loan 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with KC for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 KC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KC is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of KC
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB+/Stable Issuer Not Cooperating'.
KC was set up as a partnership firm by Mr. Mahendra Kataria and his
brother, Mr. Manish Kataria. The Kanpur, Uttar Pradesh-based firm
is engaged in the road transportation business.
KINJAL COTTON: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kinjal Cotton
Private Limited (KCPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with KCPL for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 KCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KCPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2008, KCPL is promoted by Mr. Vishnubhai Patel and
his family members. The company gins and presses raw cotton and
extracts oil from cotton seeds at its unit at Sillod in Aurangabad,
Maharashtra.
KRISHNA AGRO: ICRA Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the long term and short-term ratings of Shri
Krishna Agro Industries in the 'Issuer Not Cooperating' category.
The ratings are denoted as [ICRA]B-(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based– 5.00 [ICRA]B- (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 2.00 [ICRA]B-(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING;
Ratings continue 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.
SKAI is a proprietorship firm engaged in processing of rice bran
with a product mix comprising crude rice bran oil and deoiled rice
bran. Established in September 2011, the firm operates from its
production unit located at Nissing in Karnal district of Haryana
with an installed capacity of 75,000 metric tonnes per annum
(MTPA). Mr. Ved Prakash, the promoter of the firm, has been in the
business of rice milling for over three decades by virtue of his
association with the entities named Mansa Devi Agro and M. D
Solvents (known as Mansa Group in Karnal) which are engaged in
similar line of business.
MANGALAYATAN UNIVERSITY: Ind-Ra Keeps B+ Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mangalayatan
University's bank facilities' ratings in the non-cooperating
category. The issuer did not participate in the rating exercise,
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR315.25 mil. Term loan due on March 2020 – July 2024
maintained in non-cooperating category with IND B+ (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 4, 2017. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.
COMPANY PROFILE
Manglayatan University offers undergraduate and postgraduate
courses in engineering, management, architecture, law, humanities
and others.
MASTER KISHAN: Ind-Ra Keeps 'BB-' Loan Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Master Kishan
Chand Memorial Educational & Social Welfare Society's (MKCES) bank
facility rating in the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using the ratings. The
ratings will continue to appear as 'IND BB- (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR86.52 mil. Term loan due on December 31, 2025 maintained in
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 21, 2020. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.
COMPANY PROFILE
Master Kishan Chand Memorial Educational & Social Welfare Society
(established in 2001) runs two schools under its ambit, K.C.M.
Public High School and K.C.M. World School in Palwal, Haryana. Both
schools offer kindergarten to twelfth standard education and are
affiliated to the Central Board of Secondary Education.
MAX INTERNATIONAL: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Max
International's 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:
-- INR225 mil. 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
December 11, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Max International is engaged in distribution of Samsung mobile
phones and electrical appliances. The firm is one of the Samsung
mobile dealers of Ramkrishna Agencies in Bhubaneshwar and Rourkela,
Odisha. It is also a deals in home appliances of Voltas, Whirlpool
and Hyundai, among others. The firm is also engaged in the trading
of Titan watches, Fast Track watches and sunglasses, and R-pure
masala in Bhubaneshwar, Rourkela and other regions.
PARSVNATH HOTELS: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Parsvnath Hotels
Limited's 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 D
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR116.25 mil. Term loan (long-term) due on March 2022
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 11, 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 November 2007, Parsvnath Hotels, a wholly-owned
subsidiary of Parsvnath Developers Limited, is constructing a
three-star hotel in Shirdi, Maharashtra.
PARTAP SPINTEX: ICRA Withdraws B+ Rating on INR90cr Loans
---------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Partap Spintex Private Limited at the request of the company and
based on the No Objection Certificate (NOC) 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
---------- ----------- -------
Long Term/ 88.36 [ICRA]B+ (Stable)/[ICRA]A4
Short Term- ISSUER NOT COOPERATING;
Fund Based- Withdrawn
Cash Credit
Long Term/ 1.64 [ICRA]B+ (Stable)/[ICRA]A4
Short Term- ISSUER NOT COOPERATING;
NonFund Based Withdrawn
PSPL was incorporated in the year 1989 to undertake the edible oil
processing activities. Later in the year 2006, PSPL entered into
the textile industry with its first spinning unit in Maur Mandi
(Punjab). Further, PSPL has undertaken a step towards forward
integration in the supply-chain and commenced a denim fabric
manufacturing unit in Mohra, Ambala (Haryana) in the year 2010. The
plant was initially setup with a total manufacture capacity of 10
MMPA which was increased to 30 MSMPA in the year 2014. The company
is utilizing almost entire spinning capacity for its captive
consumption. Later, PSPL expanded its denim manufacturing capacity
to 70 MMPA. The company's denim plants are located at Mohra, Ambala
(Haryana) and Dholka, Ahmadabad (Gujarat) while its spinning plant
is situated at Maur Mandi (Punjab). PSPL has an installed capacity
of producing 6,400 MT of yarn per annum. Denim fabrics manufactured
are either made up of 100% cotton yarn or mixed with Lycra,
Polyester, etc in weft depending upon the market requirement. The
main raw materials required for operations of the company are
cotton, cotton yarn and colour chemicals (Indigo-Dyestuff). Most of
the company's cotton requirement is sourced directly from ginners
in Punjab, Gujarat and Haryana. The indigo dyes are imported from
suppliers in China and indigenously.
PATRAN FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Patran Foods
Private Limited (PFPL) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B+/Stable (Issuer Not
Cooperating)
Cash Credit 13 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 0.9 CRISIL B+/Stable (Issuer Not
Cooperating)
Warehouse Financing 35 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PFPL for
obtaining information through letters and emails dated October 16,
2021 and December 04, 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 PFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PFPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
PFPL was set up as a private limited company in 1999 by Mr. Naresh
Kumar Goyal. The company processes and sells basmati rice. Its
unit, which is at Patran (Punjab), has milling capacity of 16
tonnes per hour (tph). The factory runs in two shifts of 12 hours
each.
PERFECT MOBILE: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Perfect Mobile and Communications Pvt. Ltd.
Gala No. 16, Ratna Jyoti Industrial Premises
CHS Irla Gauthan, Irla Lane
Vile Parle (West), Mumbai
Mumbai City, MH 400056
IN
Insolvency Commencement Date: January 7, 2022
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: July 11, 2022
(180 days from commencement)
Insolvency professional: Mr. Mukesh Kumar Jain
Interim Resolution
Professional: Mr. Mukesh Kumar Jain
C-203, Edge
Opposite Maruti Suzuki Arena
Vidhansabha Road
Mova, Raipur 492007
E-mail: mkj2822@gmail.com
cirp.perfectmcpl@gmail.com
Last date for
submission of claims: January 26, 2022
PRABHU AGARWALLA: ICRA Lowers Rating on INR73cr Loans to D
----------------------------------------------------------
ICRA Ratings has revised ratings on certain bank facilities of
Agarwalla Construction Private Limited (PACPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 33.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating moved to the 'Issuer Not
Cooperating' category
Non-Fund 40.00 [ICRA]D/[ICRA]D; ISSUER NOT
Based–Bank COOPERATING; Rating moved to the
Guarantee 'Issuer Not Cooperating'
Category
Rationale
The rating downgrade is because of lack of adequate information
regarding PACPL performance and hence the uncertainty around its
credit risk. ICRA assesses whether the information available about
the entity is commensurate with its rating and reviews the same as
per its "Policy in respect of non-cooperation by a rated entity"
available at www.icra.in. The lenders, investors and other market
participants are thus advised to exercise appropriate caution while
using this rating as the rating may not adequately reflect the
credit risk profile of the entity, despite the downgrade. As part
of its process and in accordance with its rating agreement with
Prabhu Agarwalla Construction Private Limited, 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. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, a rating view has been taken on the entity based on the best
available information.
Incorporated in 2003, PACPL is primarily involved in the civil
construction (roads, bridges and buildings) business in Assam. It
executes contracts for various Central and State Government
departments in the state. With effect from March 31, 2013,
PACPL took over the entire business of its Group entity, M/s.
Prabhu Agarwalla (PA), a partnership firm, which was previously
involved in the civil construction business in Assam.
PRADHAMA MULTI: Ind-Ra Moves 'D' Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Pradhama Multi
Speciality Hospital & Research Institute Ltd 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 D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR60.7 mil. Fund-based facilities (Long-term/Short-term)
migrated to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR1.273 bil. Term loans (Long-term) due on June 2027 migrated
to non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 13, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Pradhama Multi Speciality Hospital & Research Institute is a
600-bed multi-speciality hospital in Visakhapatnam (Andhra
Pradesh).
R. K. BLUE: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of R. K. Blue
Metals (RKBM; part of the RKM group) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 12.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RKBM for
obtaining information through letters and emails dated October 16,
2021 and December 04, 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 RKBM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RKBM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RKBM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of RKBM and R.K. Msand and
Aggregates (RKMSA) since they have a common management, are present
in same line of activity, and have operational synergies. They are
referred to as RKM group.
RKBM is a partnership firm, establish in 2009 by Mr. Ravi Kumar and
(his wife) Radha. RKBM operates on two quarries located Hosur
(Tamil Nadu); with a total capacity of about 400 tph
RKMSA is a proprietorship firm, establish in 1996 by Mr. Ravi Kumar
is involved in manufacturing and distribution of sand and aggregate
products used in the construction sector ; it mainly caters to
demand coming from areas surrounding. It operates two plant
located one at Bengaluru (Karnataka) and other at Hosur (Tamil
Nadu) with a total capacity of about 400 tph.
RAICHUR BIO: Ind-Ra Affirms 'B+' Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Raichur Bio
Energies Private Limited's (RBEPL) Long-Term Issuer Rating at 'IND
B+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR247 mil. Term loans due on October 2027 affirmed with IND
B+/Stable rating; and
-- INR75 mil. Fund-based working capital limits affirmed with IND
B+/Stable/IND A4 rating.
KEY RATING DRIVERS
The affirmation reflects RBPL's high receivables of INR61.27
million for FY21, leading to stretched liquidity.
Liquidity Indicator - Stretched: The cash flow from operations
turned negative INR4.39 million in FY21 (FY20: positive INR21.7
million), due to a longer receivable period of 79 days (34 days)
which is attributed to delayed payments from Bangalore Electricity
Supply Company Limited (BESCOM). The working capital days thus
stretched to 66 days in FY21 (FY20: 53 days). The cash flows were
supported by a COVID-19 loan of INR63.9 million. The cash and cash
equivalents were low at INR0.72 million in FY21 (FY20: INR0.66
million). The peak average utilization of fund-based working
capital limits was 52.58% for the 12 months ended December 2021.
Ind-Ra expects the cash flow from operations to turn positive in
FY22, owing to a reduction in the use of working capital
requirements. RBEPL infused interest-bearing unsecured loans from
related parties during 8MFY22 to the tune of INR21.56 million. The
debt obligations for FY22 and FY23 are INR41.78 million and
INR55.69 million, respectively. RBPL had availed the Reserve Bank
of India-prescribed COVID-19 led debt moratorium for the period
March to August 2020.
The ratings are constrained by RBPL's small scale of operations.
The revenue improved to INR284.38 million in FY21 (FY20: INR188.22
million) owing to higher sales because of increased power
generation amid an adequate raw material supply. As per the
management, of the total power generation, 10% is captive
consumption and the remaining power is sold to BESCOM. Ind-Ra
expects FY22 revenue to remain in line with FY21, considering the
8MFY22 sales of INR196.44 million.
The ratings are also constrained by the company's modest EBITDA
margins which deteriorated to 35.32% in FY21 (FY20: 42.77%) due to
an increase in the purchases of raw material (rice husk). The
return of capital employed was 11% in FY21 (FY20: 10%). During
8MFY22, RBPL achieved margins of 39.66% due to a decrease in raw
material cost. Ind-Ra thus expects to the margins improve in the
near term.
The ratings are however supported by RBPL's strong credit metrics.
The gross interest coverage (operating EBITDA/gross interest
expense) increased to 2.49x in FY21 (FY20: 1.76x) and net leverage
(total adjusted net debt/operating EBITDA) reduced to 3.92x
(4.76x), owing to an increase in the absolute EBITDA to INR100.45
million (INR80.51 million). Ind-Ra expects the credit metrics to
remain strong in FY22 owing to an increase in EBITDA in the near
term. During 8MFY22, the gross interest coverage was 3.69x, net
leverage was 3.13x, and absolute EBITDA was INR77.91 million.
The ratings are also supported by the company's promoter's nearly a
decade of experience in the field of power services and its
20-year-long power supply agreement with BESCOM.
RATING SENSITIVITIES
Negative: A decline in the revenue or EBITDA margins and
deterioration in the receivables, leading to deterioration in
liquidity profile, on a sustained basis, may lead to a negative
rating action.
Positive: Growth in the revenue and EBITDA margins, leading to a
reduction in the receivables, resulting in an improvement the
liquidity profile, on a sustained basis, would be positive for the
ratings.
COMPANY PROFILE
Incorporated in 2000 and commenced commercial operations in 2015,
RBPL is engaged in biomass-based power generation. It is a Rankine
cycle-based biomass power plant with water cooled condenser. The
plant load factor is 75%. The promoters are R.P Krishnamurthy,
Maram Tippanna, S Purushotam, Mylapur Laxmi Narayana and others.
RAMKRISHNA AGENCIES: Ind-Ra Moves BB+ Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ramkrishna
Agencies' 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:
-- INR430 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating; and
-- INR60 mil. Non-fund-based working capital limits migrated to
non-cooperating category with INR A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 11, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Ramkrishna Agencies is a super stockist for Samsung products for
the Odisha region as it is a Samsung preferred distributor. The
firm has a total of 72 dealers in Odisha. The firm also works as a
distributor for Priti, Phillips – home appliances and Airtel
DTH.
SAFEFLEX INTERNATIONAL: ICRA Keeps B+ Rating in Not Cooperating
---------------------------------------------------------------
ICRA has retained the long-term and short-term ratings of Safeflex
International Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 35.50 [ICRA]B+ (Stable); ISSUER NOT
Fund based/ COOPERATING; Rating continues
Term loan to remain under 'Issuer Not
Cooperating' category
Short term-
Non Fund Based 3.00 [ICRA]A4; ISSUER NOT
COOPERATING; Rating continues
To remain under 'Issuer Not
Cooperating' category
Long Term/ 31.25 [ICRA]B+ (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Fund Based Rating continues to remain
Working Capital 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.
SIL was established in March 2006 by Mr. Jitesh Agrawal, who has
long experience in the polywoven sacks/FIBC industry and has a
B.Tech (Textiles) degree from IIT Delhi. SIL has a capacity to
manufacture 4,800 Metric Tonnes Per Annum (MTPA) of FIBC at its
100% export oriented unit in Pithampur (Madhya Pradesh) Special
Economic Zone and an additional manufacturing capacity of 15,900
MTPA, at another location in Pithampur.
SAFETY CONTROLS: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Safety Controls &
Devices Private Limited's 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:
-- INR65 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating; and
-- INR355 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 14, 2021. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Safety Controls & Devices (SCDPL) was established in 1997 as a
proprietorship concern by Rajnish Chopra. It was reconstituted as a
private limited company and renamed as SCDPL in June 2015. The
company is engaged in the erection of power substations and
installation of safety equipment.
SAI MAATARINI: Ind-Ra Affirms 'D' Term Loan Rating
--------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sai Maatarini
Tollways Limited's (SMTL) term loans as follows:
-- INR13,973.5 bil. Term loans (Long-term) due on October 1, 2027
affirmed with IND D rating.
KEY RATING DRIVERS
The affirmation reflects continued delays in debt servicing by SMTL
due to a tight liquidity position. The project has been terminated
by the National Highways Authority of India ('IND AAA'/Stable) vide
its letter dated January 28, 2020, and as per the company's FY20
annual report, the assets were handed over to the NHAI on January
30, 2020. The company received the part payment of INR4,522.65
million on July 6, 2021.
The agency will continue to monitor the termination process and
take a suitable rating action.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the rating.
COMPANY PROFILE
SMTL is a special purpose vehicle, incorporated to implement a
166.17km lane expansion (two-to-four-laning) between Panikolli and
Rimuli in Odisha on National Highway 215, under a 24-year
concession agreement from the NHAI. The project has been
terminated.
SANKALP ENGINEERING: ICRA Keeps D Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the long-term ratings of Sankalp Engineering and
Services Private Limited (erstwhile Sankalp Forgings Pvt Ltd) in
the 'Issuer Not Cooperating' category. The ratings are denoted as
[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based- 45.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund based- 39.09 [ICRA]D; ISSUER NOT COOPERATING;
Term Loan 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.
Incorporated in 1996, SESPL manufactures couplings under the
tubular division and forged components under the nontubular
division. The products of SESPL find their applications in diverse
industries such as oil and gas, automobile and general
engineering. SESPL is a subsidiary of Innoventive Industries
Limited (IIL), which acquired 51% of Sankalp Engineering and
Services Private Limited's equity in the year 2008.
SARAVANA INDUSTRIES: Ind-Ra Moves 'B+' Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shri Saravana
Industries Private Limited's 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
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR45 mil. Fund-based facilities migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER
NOT COOPERATING) rating; and
-- INR205 mil. Non-fund-based facilities migrated to non-
cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last assigned on
December 4, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Founded as a proprietorship firm in 1989 by S Kandasamy,
Madurai-based Shri Saravana Industries engages in hydromechanical
operations, which involve design, procurement, fabrication,
manufacturing, installation, testing, and commissioning of complete
hydro-mechanical equipment, including penstocks, steel liners,
expansion joints, pressure shafts, and gates.
SEZON PAPERS: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sezon Papers
Private Limited (Sezon) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 9.25 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Sezon for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 Sezon, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Sezon
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Sezon continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Sezon was incorporated in 2015 and commenced operations in October
2016. The company manufactures kraft paper recycled from waste
paper following set standards. Its product has burst factor ranging
from 16 to 28 and GSM from 120 to 350. Its unit is at Kalikanagar
in Morbi.
SHAKTI COT: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shakti Cot
Fibers (SCF) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2.25 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCF for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 SCF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCF continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2013, SCF is a partnership firm promoted by Mr.
Umesh Patel and family.Located at Kadi (Gujarat), the firm is in
the business of cotton ginning and pressing.
SIRWAR RENEWABLE: ICRA Keeps B+ Rating in Not Cooperating
---------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sirwar
Renewable Energy Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable): ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+(Stable)ISSUER NOT
Fund Based COOPERATING; Rating continues
Term Loan 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.
SREPL was incorporated in 2015 by Mr. Vijaya Shankar and Mr. D
Muralidhar Reddy. SREPL had set up a 2-MW solar power plant at
Sirwar village, Manvi Taluk, Raichur district, Karnataka. The solar
power plant is spread across an area of 13.01 acres.
The total project cost of the 2-MW solar power plant was INR16.87
crore, which was funded by INR5.10- crore equity, Rs.10.00-crore
term loan and INR1.77-crore unsecured loans from Directors. The
company has signed a 25- year PPA with GESCOM in July 2015 at a
tariff of INR8.40 per unit. However, the current PPA rate is
INR6.51 per unit as the COD got delayed by 21 days and was achieved
on January 21, 2017. As per the original PPA, the scheduled COD was
December 31, 2016.
SPY FROZEN: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Spy Frozen
Foods Private Limited (SFFPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating)
Term Loan 7.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SFFPL for
obtaining information through letters and emails dated October 16,
2021 and December 4, 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 SFFPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SFFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SFFPL continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
SFFPL, incorporated in October 2016, is setting up cold chain
infrastructure (warehousing and collection centers, along with
reefer trucks) in Etawah, Uttar Pradesh. The company is promoted by
Mr. S P S Yadav.
SRIPATHI PAPER: Ind-Ra Hikes Long Term Issuer Rating to 'B+'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Sripathi Paper &
Boards Private Limited's (SPBPL) Long-Term Issuer Rating to 'IND
B+' from 'IND D'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR1.80 bil. Fund-based working capital limit upgraded with
IND B+/Stable/IND A4 rating;
-- INR775 mil. Term loan due on March 2025 upgraded with IND B+
/Stable rating; and
-- INR685 mil. Non-fund-based working capital limit upgraded with
IND A4 rating.
The upgrade reflects SPBPL's timely repayment of debt obligations
over June-December 2021.
KEY RATING DRIVERS
SPBPL was able to service its debt on time over June-December 2021
as it received a significant investment of INR2,100 million during
1HFY22 from an expected equity partner, a non-banking finance
company (NBFC). The entire amount was utilized for the repayment
of the term loans and working capital requirement. The investment
will be serviced only after SPBPL services its other debt
obligations. The management has informed Ind-Ra that around
INR1,000 million from the investment will be classified as equity
by FYE22. Any shortfall will be addressed by the NBFC.
The ratings factor in SPBPL's medium scale of operations even as
its revenue declined to INR4,953 million in FY21 (FY20: INR5,659
million) due to COVID-19-led disruptions The company's EBITDA
margins were modest at 6% in FY21 (FY20: 6.38%) with a return on
capital employed of 2.8% (3%)). During 1HFY22, the company booked a
revenue of INR3,540 million and EBITDA margins of 5%. FY21
financials are provisional.
The credit metrics remain weak as the gross interest coverage
(operating EBITDA/gross interest expense) deteriorated to 0.50x in
FY21 (FY20: 0.67x) and the net leverage (adjusted net
debt/operating EBITDA) to 16.69x (10.73x) due to a fall in the
absolute EBITDA to INR296.98 million (INR361 million).
Liquidity Indicator - Poor: The company's average maximum
utilization of the fund-based limits was 98% for the 12 months
ended September 2021. The cash flow from operations deteriorated to
negative INR1,026 million in FY21 (FY20: INR61 million), mainly due
to an increase in the working capital. The debt repayment for FY22
is INR273 million. The cash and cash equivalents at FYE21 were
INR36.4 million (FYE20: INR43.4 million).
The ratings remain supported by the promoters' experience of over
20 years in the paper industry.
RATING SENSITIVITIES
Positive: An improvement in the liquidity and credit metrics will
be positive for the ratings
Negative: Substantial deterioration in the liquidity and any
weakening of the support from the NBFC will be negative for the
ratings.
COMPANY PROFILE
SPBPL manufactures kraft paper, duplex board, writing and printing
paper, and newsprint at its manufacturing units in Sivakasi and
Sathyamangalam, Tamil Nadu. The company is wholly-owned by the
founders and their families.
US SRIVASTAVA: Ind-Ra Keeps BB Bank Loan Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained U.S. Srivastava
Memorial Educational Society's bank loan ratings in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating actions are:
-- INR42.9 mil. Term loan maintained in non-cooperating category
with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR30.0 mil. Bank overdraft facility maintained in non-
cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 8, 2015. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
The society offers various undergraduate and postgraduate
programmes in engineering, information technology, management and
pharmacy. It also has a school - Sherwood Academy - affiliated to
the Indian Certificate of Secondary Education.
VALIKULAM RUBBER: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Valikulam
Rubber Traders (VRT) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
Key Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VRT for
obtaining information through letters and emails dated October 16,
2021 and December 21, 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 VRT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VRT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VRT continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 1980 as a proprietorship by Mr. Tomy Sebastian, the
Thodupuzha, Kerala based VRT trades in rubber sheets and scrap
rubber.
VAMSI CHEMICALS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vamsi Chemicals
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 B+ (ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR27.1 mil. Proposed term loan migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR2.9 mil. Term loans due on April 2023 migrated to non-
cooperating category with IND B+ (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
Established in 2015 by Vishal Basetti, Vamsi Chemicals trades
chemical powder and water soluble fertilizers. The firm is based in
Hyderabad.
=================
I N D O N E S I A
=================
PT PERUSAHAAN PENGELOLA: S&P Affirms 'BB' ICR, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings affirmed its issuer and issue credit ratings on
the following Indonesia financial institutions. The affirmations
follow a revision to its criteria for rating banks and nonbank
financial institutions and for determining a Banking Industry
Country Risk Assessment (BICRA). The affirmations include:
-- PT Bank Negara Indonesia (Persero) Tbk. (BNI)
-- PT Bank Rakyat Indonesia (Persero) Tbk. (BRI)
-- PT Bank Mandiri (Persero) (Mandiri)
-- PT Perusahaan Pengelola Aset (Persero) (PPA)
S&P's outlooks on these entities remain unchanged.
S&P said, "Our assessments of economic risk and industry risk in
Indonesia also remain unchanged at '6' and '6', respectively. These
scores determine the BICRA and the anchor, or starting point, for
our ratings on financial institutions that operate primarily in
Indonesia. The trends we see for economic risk are negative while
industry risk remains stable.
"In addition, our stand-alone credit profiles (SACPs) for the
above-listed entities, and our assessment of the likelihood of
extraordinary external support, remain unchanged under our revised
criteria. Consequently, we have affirmed all our ratings on these
entities."
PT Bank Negara Indonesia (Persero) Tbk.
S&P affirmed its BBB-/Negative/A-3 ratings on BNI.
S&P said, "Our ratings on BNI reflect its established market
position as the fourth-largest bank in Indonesia. Its extensive
branch network and stable deposit base support its funding
structure and liquidity position. BNI's capital position should
provide an adequate cushion against high credit losses. We believe
the bank's asset quality and earnings will be under pressure over
the next 12-18 months due to the pandemic. We assess BNI's SACP as
'bbb-'."
Outlook
The negative rating outlook on BNI reflects a one-in-three chance
of a downgrade over the next 12-18 months.
Downside scenario
S&P said, "We would lower the rating on BNI by a notch if: (1) we
downgrade the sovereign rating on Indonesia by a notch; and (2)
tough operating conditions lead to a substantial rise in
nonperforming loans (NPLs) and credit costs."
Upside scenario
S&P said, "We would revise the outlook on BNI back to stable if
economic headwinds in the Indonesian banking sector abate. We could
also revise the outlook back to stable following a similar revision
in the sovereign rating if Indonesia's external or fiscal positions
improve materially from current levels."
Ratings Score Snapshot
Issuer Credit Rating: BBB-/Negative/A-3
Stand-alone credit profile: bbb-
Anchor: bb+
Business Position: Strong (+1)
Capital and Earnings: Strong(+1)
Risk Position: Moderate(-1)
Funding and Liquidity: Adequate and Strong (0)
Comparable Rating Analysis: 0
Support: 0
ALAC Support: 0
GRE Support: 0
Group Support: 0
Sovereign Support: 0
Additional Factors: 0
PT Bank Mandiri (Persero)
S&P affirmed its BBB-/Negative/A-3 ratings on Mandiri.
S&P said, "Our ratings reflect the bank's status as Indonesia's
second-largest lender by assets. Mandiri's credit profile benefits
from its strong capital buffers against downside risks, a funding
structure that leverages a stable deposit base, and its good
liquidity cushion to meet short-term obligations.
"The bank's elevated but declining level of nonperforming assets,
defined as NPLs plus restructured loans classified as performing,
and credit costs temper these strengths. We believe the bank's
credit costs will stay elevated over 2021 and 2022 due to the
pandemic weighing on its earnings. We assess Mandiri's SACP as
'bbb-'."
Outlook
The negative outlook on Mandiri reflects a one-in-three chance of a
rating downgrade over the next 12 months.
Downside scenario
S&P will lower the rating on Mandiri by a notch if: (1) S&P
downgrades the sovereign rating on Indonesia by a notch; and (2)
tough operating conditions lead to a lowering of asset quality or
capital levels.
Upside scenario
S&P said, "We will revise the outlook on Mandiri to stable if
economic headwinds in the Indonesian banking sector abate. We could
also revise the outlook back to stable following a similar revision
in the sovereign rating if Indonesia's external or fiscal positions
improve materially."
Ratings Score Snapshot
Issuer Credit Rating: BBB-/Negative/A-3
Stand-alone credit profile: bbb-
Anchor: bb+
Business Position: Strong (+1)
Capital and Earnings: Strong(+1)
Risk Position: Moderate(-1)
Funding and Liquidity: Adequate and Strong (0)
Comparable Rating Analysis: 0
Support: 0
ALAC Support: 0
GRE Support: 0
Group Support: 0
Sovereign Support: 0
Additional Factors: 0
PT Bank Rakyat Indonesia (Persero) Tbk.
S&P affirmed its BBB-/Negative/A-3 ratings on BRI.
S&P said, "We base our ratings on the bank's established franchise
in Indonesia, BRI's wide customer deposit base, and strong
liquidity. The bank's sizable exposure to the high-yielding
microfinance segment drives its superior earnings compared with
those of its peers. We believe BRI has a strong capital buffer to
absorb moderate downside risks from tough macroeconomic
conditions.
"BRI's higher credit costs relative to peers' temper these
strengths. We believe the bank's asset quality and earnings will be
under pressure over the next 12 months due to the COVID-19
pandemic."
S&P assesses the bank's SACP to be 'bbb-'.
Outlook
The negative outlook on BRI reflects a one-in-three chance of a
downgrade over the next 12 months.
Downside scenario
S&P will lower the rating on BRI by a notch if: (1) it downgrades
the sovereign credit rating on Indonesia by a notch; and (2) tough
operating conditions lead to a deterioration in the bank's asset
quality or capital.
Upside scenario
S&P said, "We will revise the outlook on BRI to stable if economic
headwinds in the Indonesian banking sector abate. We could also
revise the outlook to stable following a similar revision in the
sovereign credit rating if Indonesia's external or fiscal positions
improve materially."
Ratings Score Snapshot
Issuer Credit Rating: BBB-/Negative/A-3
Stand-alone credit profile: bbb-
Anchor: bb+
Business Position: Strong (+1)
Capital and Earnings: Strong(+1)
Risk Position: Moderate(-1)
Funding and Liquidity: Adequate and Strong (0)
Comparable Rating Analysis: 0
Support: 0
ALAC Support: 0
GRE Support: 0
Group Support: 0
Sovereign Support: 0
Additional Factors: 0
PT Perusahaan Pengelola Aset (Persero)
S&P affirmed its BB/Negative/B ratings on PPA.
S&P said, "The ratings reflect our view that PPA is a
government-related entity with a high likelihood of receiving
government support in the event of financial distress. As a result,
the ratings incorporate a three-notch uplift for government
support. Our SACP assessment for PPA is driven by its niche role as
a distressed state-owned enterprise (SOE) manager, its adequate
capital levels, material exposure to riskier SOEs, and high
reliance on wholesale funding sources including bank loans and
bonds.
"We expect PPA to expand its balance sheet and funding sources as
part of its transformation into a more diversified financial
services firm, while maintaining adequate capitalization over the
next 12-18 months."
Outlook
The negative outlook on PPA reflects S&P's negative outlook on the
sovereign credit rating on Indonesia, and its negative trend on the
country's economic risk, with a one-in-three chance of a downgrade
over the next 12-18 months.
Downside scenario
S&P said, "We will lower the rating on PPA by a notch if: (1) we
downgrade Indonesia by a notch; (2) we lower our economic risk
assessment on the banking sector; or (3) strategic or execution
missteps during PPA's transformation phase led to lapses in risk
management or unexpected losses."
Upside scenario
S&P said, "We will revise the outlook on PPA to stable if: (1) we
take a similar action on the sovereign credit rating on Indonesia;
and (2) credit risks in the country's financial sector from the
negative effects of the pandemic show sustainable signs of
recovering to pre-pandemic levels."
Ratings Score Snapshot
Issuer Credit Rating: BB/Negative/B
Stand-alone credit profile: b
Anchor: bb-
Business Position: Adequate (0)
Capital and Earnings: Adequate (0)
Risk Position: Constrained(-2)
Funding and Liquidity: Adequate and Adequate (0)
Comparable Rating Analysis: 0
Support: 3
ALAC Support: 0
GRE Support: 3
Group Support: 0
Sovereign Support: 0
Additional Factors: 0
Ratings List
RATINGS AFFIRMED
PT BANK MANDIRI (PERSERO)
Issuer Credit Rating BBB-/Negative/A-3
PT BANK RAKYAT INDONESIA (PERSERO) TBK.
Issuer Credit Rating BBB-/Negative/A-3
PT BANK NEGARA INDONESIA (PERSERO) TBK.
Issuer Credit Rating BBB-/Negative/A-3
PT PERUSAHAAN PENGELOLA ASET (PERSERO)
Issuer Credit Rating BB/Negative/B
=========
J A P A N
=========
MITSUI E&S: Egan-Jones Keeps CCC- Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on December 20, 2021, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by Mitsui E&S Holdings Co., Ltd. EJR also maintained
its 'C' rating on commercial paper issued by the Company.
Headquartered in Chuo City, Tokyo, Japan, Mitsui E&S Holdings Co.,
Ltd. offers shipbuilding services.
SAPPORO HOLDINGS: Egan-Jones Keeps 'B' Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on December 22, 2021, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Sapporo Holdings Ltd. EJR also maintained its 'C'
rating on commercial paper issued by the Company.
Headquartered in Tokyo, Japan, Sapporo Holdings Limited produces
and sells alcoholic and non-alcoholic beverages.
TOKYU CORPORATION: Egan-Jones Keeps BB- Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on December 14, 2021, maintained its
'BB-' foreign currency and local currency senior unsecured ratings
on debt issued by Tokyu Corporation. EJR also maintained its 'B'
rating on commercial paper issued by the Company.
Headquartered in Shibuya City, Tokyo, Japan, Tokyu Corporation
provides railway services.
=====================
N E W Z E A L A N D
=====================
AIR NEW ZEALAND: Annual Net Loss to Widen, Forsyth Barr Says
------------------------------------------------------------
Stuff.co.nz reports Air New Zealand's outlook remains bleak this
year with the growing threat of an Omicron outbreak likely to delay
the border opening, analysts at Forsyth Barr said on Friday.
The airline's forecast pre-tax loss was expected to widen to NZD791
million for the 12 months to the end of June, following its
NZD439.7m pre-tax loss last year, Stuff discloses.
"Air New Zealand's near term outlook remains challenged with the
Government's recent border reopening deferral and the threat of an
Omicron outbreak impacting the demand outlook," Stuff quotes
analysts Andy Bowley and Matt Noland as saying in a research note.
Air New Zealand posted an annual net loss last year of NZD288.7
million, which Forsyth Barr expected to widen to NZD569.3 million
this year. In 2020 the national carrier posted its first annual
loss in 18 years.
Stuff relates the airline would continue to lose money and burn
through cash at "elevated rates" this year, because of the threat
of Omicron and the Government's response including strict border
controls to prevent the spread of the virus, they said.
Businesses were bracing for the spread of the highly contagious
Covid strain Omicron. Prime Minister Jacinda Ardern warned on Jan.
20 that the country would move to the most stringent "red" traffic
light setting within 48 hours of a community outbreak.
Air New Zealand's outlook remains bleak this year with an Omicron
outbreak likely to delay the border opening, Forsyth Barr says.
"An outbreak is likely given the very transmissible nature of
Omicron but is not a certainty," Messrs. Bowley and Noland said.
"The longer New Zealand can keep Omicron out, the bigger the dent
in near term demand for aviation as border restrictions are likely
to be prolonged."
In late November, the Government said a staged border re-opening
would start on January 17, then bumped that to late February in
light of the spread of Omicron overseas.
"This remains the Government's stated timeframe albeit we see
reasonable risk that it is deferred further," Bowley and Noland
said, Stuff relays.
Shares in Air New Zealand were trading at a big 233% premium to
their estimated value at the end of the financial year, and the
analysts believed "there remains a wide gap between the economic
reality of AIR and its current share price," Stuff states.
Air New Zealand's share price and recovery had lagged other
full-service airlines around the world through the pandemic,
reflecting New Zealand's more stringent border controls holding
back its recovery, they said.
"While some airlines globally are profitable again (for example US
carrier Delta Airlines has recorded two consecutive quarters of
profits), AIR remains heavily loss-making and reliant on borders
reopening before it moves back into the black."
However, looking further ahead, the analysts upgraded their
forecast of a small loss to a small profit next financial year, and
increased profits the year after with passenger numbers tipped to
recover faster than previously expected, Stuff notes.
Air New Zealand has been hard hit by the Covid-19 pandemic, forced
to cut thousands of jobs and park up many of its planes as
international tourism ground to a halt and domestic tourism was
also disrupted, Stuff adds.
About Air New Zealand
Based in Auckland, Air New Zealand Limited operates scheduled
passenger flights to 20 domestic and 32 international destinations
in 20 countries, primarily around and within the Pacific Rim.
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
27, 2021, Stuff.co.nz said Air New Zealand has reported an after
tax loss of NZD289 million for the year to June 30, its first full
year result operating in a Covid-19 environment. In 2020, the
national carrier posted a NZD454 million loss, its first annual
loss in 18 years.
DASH TRAINING: Creditors' Proofs of Debt Due on Feb. 21
-------------------------------------------------------
Creditors of Dash Training Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Feb. 21,
2022, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Jan. 17, 2022.
The company's liquidator is:
Meizi Xu
Duberly Vincent Associates
PO Box 305527, Triton Plaza
Auckland 0757
New Zealand
SEAVIEW COTTAGE: Had NZD515,000 DOC Deal Before Collapse
--------------------------------------------------------
Stuff.co.nz reports Seaview Cottage Construction Ltd had landed a
NZD500,000 contract with the Department of Conservation before its
demise.
According to the report, the company was incorporated in March
2017, but was put into liquidation in July 2020, with unsecured
creditors owing NZD464,470 and the preferential creditor, the IRD,
owed NZD274,252.
At its peak, the company, which was founded by Campbell Romeril,
employed 20 people, had a fleet of vans, branded clothes, held a
board meeting in the Cook Islands and secured a DOC contract on
Stewart Island. Details of that contract have now been released
under the Official Information Act, according to Stuff.
Stuff relates the NZD515,836 contract was for the construction of
north arm wardens quarters/grey water system, and upgrade of three
other campsites, which took place at the end of 2018.
Asked whether DOC was satisfied with the company's work, director
operations southern South Island Aaron Fleming said: "Numerous
issues with the performance of the contractor were evident".
Those were mostly over the construction of the wardens
quarters/grey water system and "broadly relate to quality of
workmanship".
DOC paid Seaview NZD473,077 for its work, retaining NZD35,130 as
part of the contract. DOC confirmed of that withheld amount,
NZD11,061 was paid to the liquidator in May 2021 as the 12-month
defects' liability period on the contract had expired.
Mr. Fleming noted some of the defects notified to Seaview had been
rectified by the time the company went into liquidation, Stuff
relays.
Mr. Romeril's other company, Thrive Homes, of which he was sole
director, also collapsed, owing NZD167,938 to creditors. Last
month he told Stuff he had "lost everything". That included his
companies, livelihood, house and marriage, while his mental health
had also been affected.
"I am in no position to blame anyone," he said.
Y & Z SUPERMARKET: Court to Hear Wind-Up Petition on March 11
-------------------------------------------------------------
A petition to wind up the operations of Y & Z Supermarket Limited
will be heard before the High Court at Auckland on March 11, 2022,
at 10:00 a.m.
Sunmax Trading Limited filed the petition against the company on
Oct. 18, 2021.
The Petitioner's solicitor is:
Alden Ho
Crimson Legal
Level 1, 19 Mauranui Avenue
Epsom, Auckland
=====================
P H I L I P P I N E S
=====================
RURAL BANK OF SAN NICOLAS: Placed in PDIC Receivership
------------------------------------------------------
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited Rural Bank of San Nicolas (Pangasinan), Inc. from doing
business in the Philippines through MB Resolution No. 72.B dated
January 20, 2022 which also directed the Philippine Deposit
Insurance Corporation (PDIC), as Receiver, to proceed with the
takeover and liquidation of the bank.
The PDIC took over the bank on January 21, 2022.
For the safety of the bank clients and local residents, the PDIC
field personnel complied with the health, quarantine and travel
protocols in accordance with Resolution No. 98-A issued by the
Inter-Agency Task Force for the Emerging Infectious Disease (IATF).
The same Resolution also authorized the PDIC personnel to travel on
official business unimpeded to ensure that the PDIC is able to
fulfill its mandates under the law.
Rural Bank of San Nicolas (Pangasinan), Inc. is a single-unit rural
bank with Head Office located in Rizal St., Brgy. Poblacion East,
San Nicolas, Pangasinan. Latest available records show that as of
30 September 2021, Rural Bank of San Nicolas (Pangasinan), Inc. has
200 deposit accounts with total deposit liabilities of P8.3
million, of which 89.4% or P7.4 million are insured deposits.
The PDIC assured depositors that all valid deposits and claims will
be paid up to the maximum deposit insurance coverage of P500,000
per depositor.
Individual account holders of valid deposits with balances of
PHP100,000 and below, who have no outstanding obligations or have
not acted as co-makers of obligations with Rural Bank of San
Nicolas (Pangasinan), Inc. are not required to file deposit
insurance claims. These individual depositors must ensure that they
have complete and updated addresses with the bank. Depositors may
update their addresses by submitting a Mailing Address Update Form
(MAUF) until January 31, 2022, either through the drop box
available at the bank premises, or by sending a scanned copy of
said Form and valid ID to email address, nicolas-pad@pdic.gov.ph.
MAUF will be made available at the bank premises or may be
downloaded from the PDIC website at www.pdic.gov.ph. Insurance
payments for valid deposits with balances of PHP100,000.00 and
below will be made through postal money order and targeted to be
sent via mail starting on February 9, 2022.
For business entities and all other depositors who are required to
file claims for insured deposit, receiving of claims is targeted to
start by February 15, 2022. Details will be announced through the
PDIC website www.pdic.gov.ph, and PDIC's official Facebook page,
www.facebook.com/OfficialPDIC.
Borrowers are likewise reminded to continue paying their loan
obligations with the closed Rural Bank of San Nicolas (Pangasinan),
Inc. and to transact only with designated PDIC representatives. The
procedures for settlement of loan obligations are available in the
PDIC website.
For more information on the requirements and procedures for filing
deposit insurance claims and settlement of loan obligations,
depositors and borrowers of the bank are enjoined to attend the
virtual Depositors-Borrowers' Forum scheduled on February 8, 2022.
Details of the Forum will also be announced in the PDIC website and
Facebook page.
As provided for by the PDIC Charter, the PDIC shall likewise accept
Letters of Intent from interested banks and non-bank institutions
for possible purchase of assets and assumption of liabilities (P&A)
as a mode of liquidating Rural Bank of San Nicolas (Pangasinan),
Inc. Letters of intent should be submitted within 60 days from
takeover date subject to compliance with the requirements
prescribed under the Guidelines in Pre-qualifying Proponents and
Evaluating the Proposals for Purchase of Assets and Assumption of
Liabilities Mode of Liquidating Closed Banks which can be accessed
in the PDIC website.
To ensure the safety of all concerned and observance of health
protocols, all clients of the bank may communicate with PDIC
through any of the following modes: Public Assistance Hotline
during office hours at (02) 8841-4141, Toll-Free Hotline at
1-800-1-888-PDIC (7342) during office hours for those outside Metro
Manila, e-mail to nicolas-pad@pdic.gov.ph or Facebook private
message. In view of the strict health protocols, visits to the PDIC
will be on appointment basis only. Appointment schedule may be
secured through telephone, email or Facebook private message.
=================
S I N G A P O R E
=================
ATI FREIGHT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on Dec., 2021, to wind
up the operations of ATI Freight Pte. Ltd.
Florens Asset Management Company Limited filed the petition against
the company.
The company's liquidators are:
Mr. Gary Loh Weng Fatt
Mr. Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
BIO STATS: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on Jan. 14, 2022, to
wind up the operations of Bio Stats Technology (S) Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidators are:
Mr. Gary Loh Weng Fatt
Mr. Leow Quek Shiong
c/o BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
PHOENIX (S): Court to Hear Wind-Up Petition on Feb. 4
-----------------------------------------------------
A petition to wind up the operations of Phoenix (S) Singapore Pte
Ltd will be heard before the High Court of Singapore on Feb. 4,
2022, at 10:00 a.m.
DBS Bank Ltd filed the petition against the company on Jan. 14,
2022.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
POSH CHINA: Creditors' Proofs of Debt Due on Feb. 21
----------------------------------------------------
Creditors of Posh China Pte Ltd, which is in voluntary liquidation,
are required to file their proofs of debt by Feb. 21, 2022, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Jan. 14, 2022.
The company's liquidators are:
Victor Goh
Khor Boon Hong
C/o Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
TAIYO ASSET: Court to Hear Wind-Up Petition on Feb. 4
-----------------------------------------------------
A petition to wind up the operations of Taiyo Asset Management Pte
Ltd will be heard before the High Court of Singapore on Feb. 4,
2022, at 10:00 a.m.
D&R Asset Management Group Co Ltd filed the petition against the
company on Dec. 1, 2021.
The Petitioner's solicitors are:
M/s RHTLAW ASIA LLP
1 Paya Lebar Link
#06-08, PLQ 2 Paya Lebar Quarter
Singapore
*********
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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***