/raid1/www/Hosts/bankrupt/TCRAP_Public/240101.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 1, 2024, Vol. 27, No. 1
Headlines
A U S T R A L I A
COMMUNITY CONNECTIONS: Second Creditors' Meeting Set for Jan. 8
COMPASS OFFICES: First Creditors' Meeting Set for Jan. 8
INFINITE WATER: First Creditors' Meeting Set for Jan. 8
PEPPER ASSET 1: Fitch Assigns Final 'Bsf' Rating on Class D Notes
PRM OPERATIONS: First Creditors' Meeting Set for Jan. 9
SYDNEY COLLECTIVE: First Creditors' Meeting Set for Jan. 8
C H I N A
CHINA VANKE: To Sell Shares in Banyan Tree's Mainland China Units
EHI CAR: Fitch Lowers LongTerm IDR to 'B-', On Watch Negative
I N D I A
AJARA HEALTH: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
AKSHAR COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
ANANDA EXPORTS: Ind-Ra Cuts Debts Rating to D
ANDHRA FERRO: ICRA Keeps D Debt Ratings in Not Cooperating
ATHITHEYA KSHEMA: Ind-Ra Cuts Debts Rating to D
B.V. COT SPIN: ICRA Keeps D Debt Ratings in Not Cooperating
CJS HARITHA: Ind-Ra Cuts Bank Loan Rating to D
CMC TEXTILES: Ind-Ra Keeps BB+ Issuer Rating in NonCooperating
ELEGANT SALES: Ind-Ra Cuts Debts Rating to D
GINNI GOLD: ICRA Keeps D Debt Ratings in Not Cooperating Category
GLOBAL PACKAGING: Ind-Ra Keeps BB Issuer Rating in NonCooperating
GOODLUCK CARBON: ICRA Keeps D Debt Ratings in Not Cooperating
HANUMAN MOSAIC: Ind-Ra Cuts Debts Rating to D
HEMJEE RICE: Ind-Ra Keeps B+ Issuer Rating in NonCooperating
IMPERIAL TUBES: ICRA Keeps D Debt Ratings in Not Cooperating
INDIAN STEEL: ICRA Keeps D Debt Ratings in Not Cooperating
IVRCL CHANDRAPUR: ICRA Keeps D Debt Rating in Not Cooperating
JAI BHAVANI: Ind-Ra Keeps BB- Issuer Rating in NonCooperating
JASMER FOODS: Ind-Ra Affirms BB Loan Rating, Outlook Positive
KANDUI INDUSTRIES: Ind-Ra Keeps BB Issuer Rating in NonCooperating
KHARE & TARKUNDE: Ind-Ra Cuts Bank Loan Rating to D
KIRORIMAL KASHIRAM: Ind-Ra Moves BB- Rating to NonCooperating
KRISHNA STEELAGE: Ind-Ra Keeps BB Loan Rating in NonCooperating
LEAPFROG ENGINEERING: ICRA Keeps C Ratings in Not Cooperating
LEARNET SKILLS: Ind-Ra Keeps BB Loan Rating in NonCooperating
LEVEL 9: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
LORDS INFRACON: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
MADHURI P. RURAL: Ind-Ra Cuts Debts Rating to D
MADURAI KRISHNA: Ind-Ra Keeps D Issuer Rating in NonCooperating
MAGTORQ PRIVATE: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
MANI MORE: Ind-Ra Keeps BB+ Issuer Rating in NonCooperating
MG OILS: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
MOHAN PODDAR: Ind-Ra Moves BB+ Bank Loan Rating to NonCooperating
MOOKAMBIGA SPINNING: Ind-Ra Cuts Debts Rating to D
OCTAL SALES: Ind-Ra Cuts Debts Rating to D
OSHIYA STRIPS: ICRA Keeps D Debt Ratings in Not Cooperating
OUR CO: ICRA Keeps D Debt Rating in Not Cooperating Category
P. PADMA RURAL: Ind-Ra Cuts Debts Rating to D
PENTA GOLD: Ind-Ra Cuts Debts Rating to D
POMMYS GARMENTS: ICRA Keeps D Debt Ratings in Not Cooperating
POSCO-POGGENAMP: Ind-Ra Cuts Loan Rating to D
PRAGATHI HATCHERIES: Ind-Ra Cuts Debts Rating to D
PRAKASH INDUSTRIAL: Ind-Ra Cuts Debts Rating to D
PRECISE AUTOMATION: Ind-Ra Keeps B Loan Rating in NonCooperating
PREMIER SEAFOODS: Ind-Ra Keeps BB- Issuer Rating in NonCooperating
RAIGARH FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
RAINBOW FOUNDATIONS: Ind-Ra Moves BB NCDs Rating to NonCooperating
RAMS ASSORTED: Ind-Ra Cuts Debts Rating to D
RANGANATHAN RAJESWARI: ICRA Keeps D Rating in Not Cooperating
RANGOTSAV SAREES: Ind-Ra Cuts Debts Rating to D
RBA FERRO: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
RIVER FRONT: Ind-Ra Assigns BB- LongTerm Rating, Outlook Stable
RSH AGRO: Ind-Ra Cuts Bank Loan Rating to D
SAFAL GLADEONE: Ind-Ra Withdraws BB+ Bank Loan Rating
SANDOR LIFESCIENCES: ICRA Keeps D Debt Rating in Not Cooperating
SATHLOKHAR SYNERGY: Ind-Ra Assigns BB+ Rating, Outlook Positive
TEJAS CONSTRUCTIONS: Ind-Ra Cuts Loan Rating to D
TELUGU CINE: Ind-Ra Keeps D Issuer Rating in NonCooperating
U.S. SRIVASTAVA: Ind-Ra Keeps BB Issuer Rating in NonCooperating
UTTARAYAN STEEL: ICRA Keeps D Debt Ratings in Not Cooperating
V.M.STAR: Ind-Ra Cuts Loan Rating to D
VAIBHAVRAJ ENTERPRISES: Ind-Ra Cuts Debts Rating to D
YASHODHAN HIGHWAYS: Ind-Ra Cuts Term Loan Rating to B
[*] IBBI Prepares List of 787 IPs to Expedite Resolution Process
J A P A N
JAPAN: Issues Business Improvement Order to Four Non-Life Insurers
S I N G A P O R E
GAKU SUSHI: Commences Wind-Up Proceedings
INCLUSION RESOURCES: Creditors' Proofs of Debt Due on Jan. 26
SAKURA FORTE: Commences Wind-Up Proceedings
SHANGHAI CHONG: Creditors' Meetings Set for Jan. 18
S O U T H K O R E A
TERRAFORM LABS: Heads for Crypto Trial With Jump Trading in Jan.
V I E T N A M
SHIPBUILDING INDUSTRY: Prepares for Bankruptcy Procedures
- - - - -
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A U S T R A L I A
=================
COMMUNITY CONNECTIONS: Second Creditors' Meeting Set for Jan. 8
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Community
Connections Solutions Australia Limited, trading as CCSA, has been
set for Jan. 8, 2024, at 10:30 a.m. via virtual facility only.
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. 5, 2024, at 5:00 p.m.
Aaron Kevin Lucan of Worrells was appointed as administrator of the
company on Dec. 5, 2023.
COMPASS OFFICES: First Creditors' Meeting Set for Jan. 8
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Compass
Offices (Sydney) Pty Ltd and Compass Offices Australia Pty Ltd will
be held on Jan. 8, 2024, at 10:00 a.m. and 11:30 a.m.,
respectively, via virtual facilities only.
Manuel Hanna and Renee Di Carlo of Romanis Cant were appointed as
administrators of the companies on Dec. 22, 2023.
INFINITE WATER: First Creditors' Meeting Set for Jan. 8
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Infinite
Water Holdings Ltd will be held on Jan. 8, 2024, at 2:00 p.m. at
the offices of RSM Australia Partners, Level 13, 60 Castlereagh
Street, in Sydney, NSW.
Brett Lord and Richard Stone of RSM Australia Partners were
appointed as administrators of the company on Dec. 27, 2023.
PEPPER ASSET 1: Fitch Assigns Final 'Bsf' Rating on Class D Notes
-----------------------------------------------------------------
Fitch Ratings has assigned final ratings to Pepper Asset Securities
No.1 Trust's pass-through floating-rate notes. The issuance
consists of notes backed by a pool of first-ranking Australian
automotive and equipment loan and lease receivables originated by
Pepper Asset Finance Pty Limited, a subsidiary of Pepper Money
Limited (Pepper). The notes were issued by BNY Trust Company of
Australia Limited as trustee for Pepper Asset Securities No.1
Trust.
This is a whole loan sale, where the trustee acquired all of seller
trustee's right, title and interest in the receivables using funds
provided by the investors under a whole loan pass-through
structure. All notes and units are held by investors.
The expected rating analysis conducted by Fitch did not correctly
model Fitch's interest rate stresses. This has been corrected for
the assignment of the final ratings.
Entity/Debt Rating Prior
----------- ------ -----
Pepper Asset
Securities
No.1 Trust
A1-a LT A+sf New Rating A+(EXP)sf
A1-x LT Asf New Rating A(EXP)sf
B AU3FN0083424 LT BBBsf New Rating BBB(EXP)sf
C AU3FN0083432 LT BBsf New Rating BB(EXP)sf
D AU3FN0083440 LT Bsf New Rating B(EXP)sf
G AU3FN0083457 LT NRsf New Rating NR(EXP)sf
TRANSACTION SUMMARY
The total collateral pool at the 31 October 2023 cut-off date was
sized at AUD500 million and consisted of 14,599 receivables with a
weighted-average (WA) remaining maturity of 62.8 months.
KEY RATING DRIVERS
Stress Commensurate with Ratings: Fitch has assigned base-case
default expectations and 'AAAsf' default multiples are as follows:
Novated: 1.10% (7.75x)
Non-novated Risk Tier A: 2.25% (6.0x)
Non-Novated Risk Tier B: 6.00% (4.75x)
Non-Novated Risk Tier C: 12.00% (3.75x)
The recovery base case is 30.0%, with a 'AAAsf' recovery haircut of
50.0% across all risk grades. The WA base-case default assumption
was 4.0% and the 'AAAsf' default multiple was 4.9x.
Portfolio performance is supported by Australia's continued
economic growth and tight labour market, despite multiple interest
rate hikes in 2022-2023. GDP growth in the year to September 2023
was 2.1% and unemployment was 3.7% in October 2023. Fitch expects
GDP growth to moderate to 1.7% for the full year, before falling to
1.5% in 2024, with unemployment at 3.8% increasing to 4.2% next
year. This reflects the expected impact on Australia's economy from
China's property downturn and lagged effects of tighter monetary
policy on consumption.
Excess Spread Limited by Commission Note Repayment: The transaction
includes a class A1-x note to fund the purchase-price component
related to the unamortised commission paid to introducers for the
origination of the receivables and a premium. The note will not be
collateralised, but will amortise in line with an amortisation
schedule. The note's repayment limits the availability of excess
spread to cover losses, as it ranks senior in the interest
waterfall; above the class B to G notes. The payment of the A1-x
note is not a required payment and non-payment is not event of
default.
Class A to G notes will receive principal repayments pro rata upon
satisfaction of pro rata conditions. The transaction has structural
features that include an initial loss reserve, retention and
reverse turbo mechanism that redirect available excess income not
used to reimburse losses to repay note principal balances. Fitch's
cash flow analysis incorporates the transaction's structural
features and tests each note's robustness by stressing default and
recovery rates, prepayments, interest-rate movements and default
timing.
Counterparty Risks Addressed: Counterparty risk is mitigated by
documented structural mechanisms that ensure remedial action takes
place should the ratings of the swap providers or transaction
account bank fall below a certain level. The transaction includes
interest-rate swaps with a fixed schedule, which allows for future
over- or under-hedging, depending on the level of prepayments and
defaults. Fitch conducted additional sensitivity analysis for these
hedging scenarios.
Low Operational and Servicing Risk: All receivables were originated
by Pepper Asset Finance, which demonstrated adequate capability as
originator, underwriter and servicer. Pepper is not rated by Fitch.
Servicer disruption risk is mitigated by backup servicing
arrangements. The nominated backup servicer is BNY Trust Company of
Australia Limited. Fitch undertook an operational and file review
and found that the operations of the originator and servicer were
comparable with those of other auto and equipment lenders.
No Residual Value Risk: There is no residual value exposure in this
transaction. However, 43.3% of the portfolio by loan value has
balloon amounts payable at maturity, of which 31.8% are novated
leases.
Criteria Variation: Fitch's criteria allow ratings to be assigned
one notch above or below the relevant model-implied rating. Fitch
applied a criteria variation to assign a 'Asf' on the class A1-x
note and 'Bsf' rating to the class D note, both are two notches
above the model-implied ratings of 'BBB+sf' and 'CCCsf',
respectively, after considering other quantitative and qualitative
factors. The negative interest rate scenarios driving the ratings
are unlikely scenarios given the economic forecast, and the fact
that negative interest rates have never occurred in Australia.
Further testing shows that the model-implied ratings are expected
to migrate to the assigned ratings after five months with
amortisation.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce credit enhancement
(CE) available to the notes.
Unanticipated increases in the frequency of defaults could produce
loss levels higher than Fitch's base case and are likely to result
in a decline in CE and remaining loss-coverage levels available to
the notes. Decreased CE may make certain note ratings susceptible
to negative rating action, depending on the extent of coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions. Fitch stresses the
recovery rate to isolate the effect of a change in recovery
proceeds at the borrower level.
Downgrade Sensitivity
Notes: A1-a / A1-x / B / C / D
Ratings: A+sf / Asf / BBBsf / BBsf / Bsf
Rating Sensitivity to Increased Default Rates
Increase defaults by 10%: Asf / BBBsf / BB+sf / BB-sf / less than
Bsf
Increase defaults by 25%: A-sf / BBB-sf / BBsf / Bsf / less than
Bsf
Increase defaults by 50%: BBBsf / BB+sf / BB-sf / less than Bsf /
less than Bsf
Rating Sensitivity to Decreased Recovery Rates
Recoveries decrease 10%: Asf / BBB+sf / BBB-sf / BB-sf / less than
Bsf
Recoveries decrease 25%: Asf / BBBsf / BBB-sf / BB-sf / less than
Bsf
Recoveries decrease 50%: Asf / BBB-sf / BB+sf / B+sf / less than
Bsf
Rating Sensitivity to Combined Stresses
Defaults increase 10%/recoveries decrease 10%: A-sf / BBBsf / BB+sf
/ B+sf / less than Bsf
Defaults increase 25%/recoveries decrease 25%: BBB+sf / BBB-sf /
BBsf / Bsf / less than Bsf
Defaults increase 50%/recoveries decrease 50%: BBB-sf / BBsf / B+sf
/ less than Bsf / less than Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Economic conditions, loan performance and credit losses that are
better than Fitch's baseline scenario or sufficient build-up of CE
that would fully compensate for the credit losses and cash flow
stresses commensurate with higher rating scenarios, all else being
equal.
Upgrade Sensitivities
Notes: A1-a / A1-x / B / C / D
Ratings: A+sf / Asf / BBBsf / BBsf / Bsf
Reduce defaults by 10% and increase recoveries by 10%: AA-sf / A-sf
/ BBBsf / BBsf / Bsf
CRITERIA VARIATION
Consumer ABS criteria variation where the assigned rating is two
notch difference to the MIR
DATA ADEQUACY
Fitch sought to receive a third-party assessment conducted on the
asset portfolio information, but none was made available to Fitch
for this transaction.
Fitch conducted a review of a small targeted sample of the
originator's origination files and found the information contained
in the reviewed files to be adequately consistent with the
originator's policies and practices and the other information
provided to the agency about the asset portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis, according to its applicable rating methodologies,
indicates that it is adequately reliable.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
PRM OPERATIONS: First Creditors' Meeting Set for Jan. 9
-------------------------------------------------------
A first meeting of the creditors in the proceedings of PRM
Operations Pty Ltd will be held on Jan. 9, 2024, at 11:00 a.m. at
the offices of Clifton Hall, Level 3, 431 King William Street, in
Adelaide, South Australia and via teleconference.
Simon Richard Miller and Anna Agostino of Clifton Hall were
appointed as administrators of the company on Dec. 27, 2023.
SYDNEY COLLECTIVE: First Creditors' Meeting Set for Jan. 8
----------------------------------------------------------
A first meeting of the creditors in the proceedings of The Sydney
Collective Pty Ltd will be held on Jan. 8, 2024, at 11:00 a.m. via
virtual meeting.
Adam Edward Farnsworth of Farnsworth Carson was appointed as
administrator of the company on Dec. 22, 2023.
=========
C H I N A
=========
CHINA VANKE: To Sell Shares in Banyan Tree's Mainland China Units
-----------------------------------------------------------------
South China Morning Post reports that China Vanke is selling its
stake in luxury hotel chain Banyan Tree Holdings' China units, a
deal that will generate CNY480 million (US$67 million) for the
developer seeking to weather the country's property downturn.
Vanke will sell its equity in the hotel management joint ventures
including Banyan Tree Services (China) and Banyan Tree Hotel
Management (China), according to a filing by the Singapore company
on Dec. 28, the Post relays. The shares in the units were valued in
the range of CNY440 million to CNY486 million.
According to the Post, the Chinese firm faces mounting pressure due
to debt obligations. As the nation's second-biggest developer by
sales, Vanke is burdened with sluggish sales, falling revenue and
CNY1.28 trillion in liabilities.
The company, one of the few remaining investment-grade Chinese
developers, has three notes coming due next year in March, May and
June, the Post notes.
Partly state-owned, Vanke has received more support from the
government compared with peers, according to the Post. At least two
state-backed insurers agreed to give up their right for an early
repayment on so-called non-standard debt, people familiar with the
matter said last week.
In a November meeting with Vanke's creditors, Shenzhen's
State-owned Assets Supervision and Management Commission also
expressed confidence in the developer, the report notes.
The Post says Vanke needs to navigate a challenging path ahead. The
slump in China's real estate sector is bound to extend into next
year, according to forecasts from investment banks and securities
houses including Goldman Sachs and Morgan Stanley.
About China Vanke
China Vanke Co., Ltd. operates real estate development businesses.
The Company provides housing renovation, housing loans, real estate
brokerage, and other businesses. China Vanke also operates
logistics, material supply, and other businesses.
EHI CAR: Fitch Lowers LongTerm IDR to 'B-', On Watch Negative
-------------------------------------------------------------
Fitch Ratings has downgraded eHi Car Services Limited's Long-Term
Issuer Default Rating to 'B-', from 'B'. Fitch has also downgraded
eHi's senior unsecured rating to 'B-', from 'B', with a Recovery
Rating of 'RR4'. All ratings remain on Rating Watch Negative
(RWN).
The downgrade is driven by the heightened refinancing risk for
eHi's 2024 US dollar bond due in November 2024 relative to its
currently available liquidity. Fitch believes eHi's operating cash
flow can be sustained under the current favourable operating
conditions, but its capital structure and liquidity buffer have
deteriorated due to its sustained high capex and fleet expansion.
The rating reflects the lower margin of safety and the likelihood
that the large relative size of its maturing debt combined with the
low liquidity headroom requires a combination of funding sources
for repayment or refinancing. Fitch recognises that eHi has options
to address the upcoming maturity, but Fitch may takes further
negative action if it fails to execute its refinancing plans by
1Q24.
KEY RATING DRIVERS
Execution Risk in Refinancing: Fitch believes eHi's plan to
refinance or repay its 2024 US dollar bond has inherent execution
risk due to the company's thin liquidity buffer and uncertainty
around available funding channels. eHi has been repurchasing its US
dollar bonds in 2023, but the outstanding amount of USD381.5
million as of 29 November 2023 is still large relative to its
liquidity and cash flow generation.
The large amount of the outstanding bonds means eHi is likely to
turn to a combination of funding sources, including disposing old
vehicles and discussions with onshore and offshore banks on
potential syndicated loan financing.
Limited Deleveraging Capacity: Fitch views eHi's room to deleverage
as limited based on its current capital structure. The capital
structure has become increasingly reliant on debt, particularly
non-bank debt funding. Net losses from the prolonged pandemic
lockdowns in the last several years have eroded the company's
equity base. Its operating cash flow may be sufficient to cover
cash repayments for borrowings from banks and leasing companies,
but will not be adequate to deleverage meaningfully or to rebuild a
significant equity buffer.
Thin Liquidity Buffer: Fitch believes eHi can take operational
measures to increase liquidity, such as vehicle disposals, but the
impact will be limited relative to the size of its maturing debt.
The company's readily available cash fell to CNY406 million by
end-September 2023, from CNY611 million at end-2022, as it expanded
its fleet to meet strong travel demand.
Reliance on Vehicle Disposals: eHi plans to use vehicle disposal as
one of its funding channels to repay capital market debt in 2024.
It will partly transition to utilising operating leases to rent
cars rather than purchasing to maintain a certain fleet size. Such
a transition will allow eHi to capture current growth in the market
while utilising less capital. Fitch views this as an option for eHi
to continue its business operation while replenishing liquidity for
the bond repayment.
However, Fitch expects eHi to face challenges related to the amount
raised and timing of proceeds from vehicle sales. Risks from
prolonged receivables have eased, but the discount rate of used-car
sales and collection of proceeds in China may still be affected by
volatile automotive market conditions and the financial situation
of dealers. In addition, eHi will need to spread out disposals , as
the market cannot absorb a significant number of used vehicles
within a short time, so Fitch needs to observe evidence of proceeds
starting in 4Q23.
Rental Business Stabilising: eHi's business operation normalised in
2023 amid a recovery in domestic travel. Revenue increased by 29.8%
yoy in 9M23 and EBIT margin improved to 10.1% in 9M23, from
negative in 2022. However, the company expanded its fleet to meet
rising travel demand during the period and plans to maintain this
fleet size in the near term, which requires a minimum fixed capex.
DERIVATION SUMMARY
eHi's ratings are supported by its leading market position as
China's second-largest car rental company. However, it has a
smaller operating scale and weaker financial profile than other
Fitch-rated car rental operators, such as Localiza Rent a Car S.A.
(BB+/Stable), the leading rental car operator in Brazil. eHi also
has a smaller operating scale and higher capex requirements, but a
better financial structure, than China Grand Automotive Services
Group Co., Ltd. (CCC-), one of the largest auto dealers in China.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Revenue to rebound in 2023 and stabilise over 2024-2026 (2022:
-12.7%)
- EBITDA margin to improve in 2023 and moderate from 2024 (2022:
29.9%)
- Net capex to resume in 2023 and moderate from 2024 as the company
starts to use operating leases (2022: net capex of CNY185 million)
Recovery Rating Assumptions:
- Fitch applies the going-concern value as it is higher than the
liquidation value
- A 25% discount to EBITDA in 2024
- 5x EBITDA multiple to going-concern EBITDA
- 10% administrative claim
The allocation of value in the liability waterfall results in
recovery corresponding to an 'RR4' Recovery Rating for senior
unsecured debt.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Failure to execute vehicle disposals and refinancing with
longer-term debt by 1Q24
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- The RWN will be resolved upon successful execution of the
refinancing plan for the November 2024 US dollar bond
LIQUIDITY AND DEBT STRUCTURE
Tight Liquidity: eHi had readily available cash of CNY364 million
at end-June 2023, against short-term debt of CNY2.5 billion (or
CNY2.9 billion if payables for purchase of accounts payable model
cars are included). The company has repurchased a portion of the US
dollar senior notes due in November 2024, and the outstanding
amount is USD381.5 million as of 29 November 2023.
ISSUER PROFILE
eHi is a leading car-rental and chauffeur operator in China. It had
a total fleet of more than 90,000 vehicles and covered more than
500 cities in China by end-September 2023. The company was listed
on the New York Stock Exchange before it was privatised in April
2019.
SUMMARY OF FINANCIAL ADJUSTMENTS
Payables for vehicles purchased are included as debt in Fitch's
leverage calculations, as these are interest-bearing in nature.
Capex is calculated as gross capex for car purchases net of
proceeds from used-car sales.
ESG CONSIDERATIONS
eHi Car Services Limited has an ESG Relevance Score of '4' for
Financial Transparency due to its status as a private company with
less stringent timing requirements for financial disclosures,
compared with publicly listed companies. This has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
eHi Car Services
Limited LT IDR B- Downgrade B
senior unsecured LT B- Downgrade RR4 B
=========
I N D I A
=========
AJARA HEALTH: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Ajara Health
Care and Research Centre Private Limited's instrument(s) rating in
the non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND BB/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR293 mil. Term loan due on April 30, 2026 maintained in non-
cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in June 2011, Ajara Health Care and Research Centre is
a 350-bed multi-specialty hospital in Hanumakonda, Warangal
district in Telangana. The company commenced its commercial
operations in December 2019.
AKSHAR COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term rating of Akshar Cotton Industries in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.39 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term– 0.03 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Akshar Cotton Industries, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Akshar Cotton Industries (ACI) was established in August 2011 in
Gujarat as a partnership firm. ACI is promoted and managed by Mr.
Ashok Bhai Dudhagara, Mr. Hashmukbhai Pansuriya and Mr.
Narendrabhai Virani. Firm is engaged in production of cotton bales
and cottonseeds widely used in textile and edible oil industry.
ANANDA EXPORTS: Ind-Ra Cuts Debts Rating to D
---------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ananda Exports
debt facilities to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+
(ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR70 mil. Fund-based working capital limit (Long-Term/Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Ananda Exports.
The downgrade of the bank facility ratings reflects Ananda Exports'
delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Ananda Exports'
delays in debt servicing, based on information available from
public sources. Ind-Ra has not been able to ascertain the reason
for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Established in 2010, Ananda Exports processes hair bundles at its
facility in Faridabad and exports them to wig and hair extension
manufacturers in Europe, China, Tunisia, Hong Kong and others.
ANDHRA FERRO: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term rating of Andhra Ferro
Alloys Limited in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short-term– 8.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 30.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 15.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term/ 33.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Long-term 25.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Andhra Ferro Alloys Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1986, Andhra Ferro Alloys Limited is engaged in the
production of ferro alloys. The company has two units - unit1 is
located at Srinivasan agar, Pendurthi, Vizianagaram district
(installed capacity is 3.5-million-volt ampere (MVA)) and unit 2 is
located at Garbham, Vizianagaram district (installed capacity of
15.5MVA). The unit 1 was dismantled during February 2009 and AFAL
is setting up 11MVA capacity ferro alloy unit each at unit 1 and 2.
The total capex at unit 2 is INR26.34 crore funded by a term loan
of INR15.00 crore and is expected to be completed by April 2016.
The total capex at unit 1 is INR27.56 crore and was proposed to be
funded by term loan of INR17.00 crore; however, the company has
deferred the construction of unit 1. AFAL is promoted and managed
by Mr. Brajendra Khandelwal who has over 25 years of experience in
the ferro alloy industry.
ATHITHEYA KSHEMA: Ind-Ra Cuts Debts Rating to D
-----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Athitheya Kshema
Hotels Private Limited (AKHPL) debt facilities to 'IND D (ISSUER
NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR5 mil. Fund Based Working Capital Limit downgraded with IND
D (ISSUER NOT COOPERATING) rating;
-- INR31.70 mil. Non-Fund Based Working Capital Limit downgraded
with IND D (ISSUER NOT COOPERATING) rating; and
-- INR103.99 mil. Term Loan downgraded with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for AKHPL.
The downgrade of the bank facility ratings reflects AKHPL's delays
in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects AKHPL's delays
in debt servicing, based on information available from public
sources. Ind-Ra has not been able to ascertain the reason for the
delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Athitheya Kshema Hotels was established by Mr. Ravi and Mrs. Sudha
in 1999. The hotel has 60 rooms with two banquet/conference halls,
a board room, a health club and a multi cuisine restaurant.
B.V. COT SPIN: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term rating of B.V. Cot Spin Industries in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 18.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 3.15 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with B. V. Cot Spin Industries, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 2012, B. V. Cotspin Industries (BVCSI) is a
partnership firm with Mr. Babu Patel, Mr. Piyush Patel and Mr.
Bhavin Patel along with their family members as partners. The firm
gins and presses raw cotton to produce cotton bales and
cottonseeds. The commercial production of the firm commenced in
November 2013. BVCSI possesses 54 cotton ginning machines, with an
installed capacity of manufacturing 300-350 bales per 12 hours.
CJS HARITHA: Ind-Ra Cuts Bank Loan Rating to D
----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded CJs Haritha
Homes debt facilities to 'IND D (ISSUER NOT COOPERATING)' from 'IND
B+ (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR198.5 mil. Fund Based Working Capital Limit downgraded with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for CJs Haritha Homes.
The downgrade of the bank facility ratings reflects CJs Haritha
Homes's delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects CJs Haritha
Homes's delays in debt servicing, based on information available
from public sources. Ind-Ra has not been able to ascertain the
reason for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
The firm was set up in 2010. It is engaged in real estate
development involving construction and sale of multi-unit
residential apartments.
CMC TEXTILES: Ind-Ra Keeps BB+ Issuer Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained CMC Textiles
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB+/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR210 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR18.90 mil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR48.43 mil. Term loan due on April 30, 2023 maintained in
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2002 by Ajeet Yadav, Pawan Yadav, and Dheerendra
Yadav, CMC Textiles manufactures texturized yarn, wrap-knitted yarn
and jacquard fabrics at its Silvassa unit, which has a capacity of
12,500 million tons per year.
ELEGANT SALES: Ind-Ra Cuts Debts Rating to D
--------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Elegant Sales
and Marketing (ESM) debt facilities to 'IND D (ISSUER NOT
COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR45 mil. Fund-based working capital limit (Long-term/Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR35 mil. Non-fund-based working capital limit (Short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for ESM.
The downgrade of the bank facility ratings reflects ESM's delays in
debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects ESM's delays in
debt servicing, based on information available from public sources.
Ind-Ra has not been able to ascertain the reason for the delays, as
the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 2014 and based out in Hyderabad, Elegant Sales and
Marketing supplies and installs interior products such as glass
partitions, moveable walls, aluminum skirtings and trims, carpets
and architectural concrete.
GINNI GOLD: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term rating of Ginni Gold
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 75.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term/ 15.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Fund Based/ remain under 'Issuer Not
Non Fund Based Cooperating' Category
Others
As part of its process and in accordance with its rating agreement
with Ginni Gold Limited, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple 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, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Ginni Gold Pvt. Ltd. (GGPL), formerly known as Ginni Gold Limited
is a manufacturer, wholesaler and trader of gold, diamonds, and
silver ornaments/jewellery. GGPL has presence largely in gold
jewellery, which contributes more than 90% of revenues. The company
was incorporated in the year 2007. The company procures gold under
the Metal Loan Scheme from Bank of Nova Scotia. It gets the
jewellery manufactured on a job-work basis from the vendors based
in Mumbai and sells it to its customers after charging a margin
over cost. GGPL's customers primarily consist of wholesalers and
retailers based in New Delhi area.
GLOBAL PACKAGING: Ind-Ra Keeps BB Issuer Rating in NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Global
Packaging's instrument(s) rating in the non-cooperating category.
The issuer did not participate in the surveillance exercise,
despite continuous requests and follow-ups by the agency through
emails and phone calls. Therefore, investors and other users are
advised to take appropriate caution while using the rating. The
rating will continue to appear as 'IND BB/Stable (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR66 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR5.6 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR12.4 mil. Term loan due on April 30, 2023 maintained in
non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Global Packaging is a partnership firm incorporated in 2011 by
Kshitij Ajeet Yadav and Sumit Brijpal Yadav (holding 95% and 5%,
respectively). The firm, which has two units in Silvassa,
manufactures texturized yarn, wrap knitted yarn and jacquard
fabrics.
GOODLUCK CARBON: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term rating of Goodluck
Carbon Private Limited in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]D ISSUER NOT COOPERATING/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 30.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 72.74 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Goodluck Carbon Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
GCPL is engaged in the manufacturing of carbon black which is used
as reinforcing agent in rubber and other industries. The company
was initially engaged in trading of carbon black and diversified
into carbon black production in February 2011 after it took on
lease the production plant (located in Jitwal Kalan. Distt:
Sangrur, Punjab) of Ralson India Limited (RIL). This unit was
subsequently acquired in Mar/April 2012.
HANUMAN MOSAIC: Ind-Ra Cuts Debts Rating to D
---------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shree Hanuman
Mosaic & Marble debt facilities to 'IND D (ISSUER NOT COOPERATING)'
from 'IND B+ (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR50 mil. Fund based working capital limit (Long-Term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR3.14 mil. Term Loan (long-term) due on December 2019
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Shree Hanuman Mosaic & Marble.
The downgrade of the bank facility ratings reflects Shree Hanuman
Mosaic & Marble's delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Shree Hanuman
Mosaic & Marble's delays in debt servicing, based on information
available from public sources. Ind-Ra has not been able to
ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1995, Shree Hanuman Mosaic & Marble is a
proprietorship firm that trades tiles, marbles and sanitary ware.
HEMJEE RICE: Ind-Ra Keeps B+ Issuer Rating in NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained HEMJEE RICE
MILLS' instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on
the agency's website.
The detailed rating actions are:
-- INR67.50 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/ IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR3.5 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Hemjee Rice was established in 1982 as a partnership concern. It is
owned and managed by Sandeep Kumar Agarwala. Based in Katwa,(Purba
Burdwan, West Bengal), the firm manufactures and trades par boiled
rice. It has a total installed capacity of 60,000 tons/annum.
IMPERIAL TUBES: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term rating of Imperial Tubes
Private Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]D ISSUER NOT COOPERATING/[ICRA]D;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 50.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Imperial Tubes Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1978, ITPL is currently engaged in the
manufacturing of electric resistance welded (ERW) black pipes with
an installed capacity of 120,000 metric tonnes per annum (MTPA).
The manufacturing facility of the company is located in Howrah,
West Bengal. The company is being managed by the two directors Mr.
Pratik Sharma and Mr. Manish Sharma, who had taken over the
business from the original promoters in December 2013. The pipes
manufactured by the company have varied applications like
irrigation, water supply, sewerage system, fabrication,
construction activity, idlers/conveyors, water wells (casing pipes)
etc. and are sold under the brand name of 'Imperial'.
INDIAN STEEL: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Indian Steel
Corporation Limited in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]D ISSUER NOT COOPERATING/[ICRA]D
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 1,220.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 118.85 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term– 148.86 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 1,032.82 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Indian Steel Corporation Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 2002, ISCL is involved in manufacturing cold rolled
(CR) coils and sheets along with galvanised plain (GP), galvanised
corrugated (GC) sheets and colour-coated galvanised sheets. The
company's manufacturing facilities arelocated at Bhimasar village
near Kandla port, Gandhidham (Gujarat), in proximity to the Mundra
port. ISCL was jointly promoted by the Ruchi Group of Industries,
India, and Mitsui & Co. Ltd., Japan, in 2002. It commenced
operations from 2004. Mitsui & Co. Ltd. sold its stake in the
company in FY2021.
In FY2021, on a provisional basis, the company reported a net loss
of INR195 crore on an OI of INR776 crore, compared with a net loss
of INR67 crore on an OI of INR902 crore in the previous year.
IVRCL CHANDRAPUR: ICRA Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term rating of IVRCL Chandrapur Tollways
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 313.99 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with IVRCL Chandrapur Tollways Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in October 2010, IVRCL Chandrapur Tollways Limited
(ICTL) is a Special Purpose Vehicle (SPV) promoted by IVRCL Limited
for four-laning and improvement of Karanji-Wani-Ghuggus-Chandrapur
section of MSH- 6 & 7 of 85.11 km in Yavatmal and Chandrapur
District of Maharashtra. The project is developed on Design, Build,
Operate, Transfer basis. The project was earlier envisaged to have
a capital outlay of INR735.99 crore. However, owing to delay in
execution of the project the total cost has increased to INR882.48
crore, primarily on account of increase in interest during
construction. The revised cost is funded with a debt of INR414.70
crore, positive grant of INR199.50 crore and promoter's
contribution of INR268.28 crore.
JAI BHAVANI: Ind-Ra Keeps BB- Issuer Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Jai Bhavani
Furnishing Pvt Ltd.'s instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB-/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR80 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2011, Jai Bhavani Furnishing is engaged in the
manufacturing and trading of furnishing fabrics. Its packaging and
storing units are located in Bhiwandi, Mumbai.
JASMER FOODS: Ind-Ra Affirms BB Loan Rating, Outlook Positive
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Jasmer Foods Private Limited's (JFPL) bank facilities:
-- INR285 mil. Fund-based working capital limits affirmed;
Outlook revised to Positive from Stable with IND BB/Positive
rating; and
-- INR7.42 mil. (reduced from INR11.72 mil.) Term loan due on May
2024 affirmed; Outlook revised to Positive from Stable with
IND BB/Positive rating.
Analytical Approach: Ind-Ra continues to take a standalone view to
arrive at the rating.
The Positive Outlook reflects an improvement in JFPL's revenue in
FY23, on the back of an increase in its orders from its new and
existing customers, and increased demand for its products in the
international markets. Ind-Ra expects the revenue growth to
continue over the near- to medium term, led by an increase in its
orders and higher demand for its products.
Key Rating Drivers
JFPL's revenue surged to INR1,369.17 million in FY23 (FY22:
INR637.87 million), due to the company receiving export orders from
its new and existing customers and an increase in the sales
realization of its products. The share of the company's exports
increased to 95% of its overall revenue in FY23 (FY22: 77%). The
company booked revenue of INR1,106 million till 7MFY24. As of
October 2023, it had orders in hand of INR300 million-450 million,
which are to be executed in the next two months. Ind-Ra expects the
company's revenue growth to continue in the near- to medium term,
aided by an increase in orders from new and existing customers, and
higher demand for its products in the international markets.
However, the ratings remain constrained by the seasonal nature of
the business, exposure to commodity risks and competition in the
industry. Besides, JFPL has a single product portfolio, i.e.
basmati rice, which is sold in the domestic as well as export
markets.
The ratings reflect JFPL's continued modest EBITDA margins, which
deteriorated to 7.71% in FY23 (FY22: 10.89%), due to an increase in
the cost of goods sold. The company's profitability remains
vulnerable to a sudden and sharp volatility in raw material prices,
especially paddy, which is highly dependent on monsoon, demand,
currency fluctuations, acreage under cultivation and government
regulations. The company's return on capital employed improved to
11.7% in FY23 (FY22: 9.1%). In FY24, Ind-Ra expects the margins to
remain modest, due to its susceptibility to volatility in its raw
material prices.
JFPL has modest credit metrics, owing to its high debt level (FY23:
INR720.77 million; FY22: INR510.48 million). The gross interest
coverage (EBITDA/gross interest expense) improved to 2.94x in FY23
(FY22: 2.41x; FY21: 2.34x) and the net leverage (adjusted net debt/
EBITDAR) reduced to 6.75x (7.27x), mainly due to an increase in its
EBITDA to INR105.52 million (INR69.45 million). In FY24, Ind-Ra
expects the credit metrics to remain at the similar level, due to
its nature of operations and the absence of any major debt-funded
capex plans.
Liquidity Indicator - Stretched: JFPL's average maximum monthly
utilization of the fund-based limits was around 92.47% for its cash
credit limits and 66.34% for the packing credit for the 12 months
ended October 2023. The net working capital cycle reduced to 237
days in FY23 (FY22: 388 days), mainly due to a reduction in the
inventory holding period to 175 days (310 days). However, the
inventory holding period remained elongated, due to the seasonal
nature of the product. The company had cash and cash equivalents
of INR8.08 million at FYE23 (FYE22: INR5.36 million). The company
has INR17.30 million and INR12.10 million of debt repayment
obligations for FY24 and FY25, respectively. The cash flow from
operations remained negative at INR194.09 million in FY23 (FY21:
negative INR72.2 million), due to high working capital requirement.
However, the company does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
However, the ratings continue to be supported by the promoter's a
decade-long experience in the rice processing and milling
industry.
Rating Sensitivities
Positive: A significant improvement in the scale of operations,
leading to an improvement in the liquidity position and the credit
metrics with the net leverage reducing below 3.7x on a sustained
basis, may lead to a positive rating action.
Negative: A significant decline in the scale of operations and the
profitability, leading to deterioration in the overall credit
metrics, and/or deterioration in liquidity, could lead to the
Outlook being revised to Stable.
Company Profile
Incorporated in June 2011, Kurukshetra-based JFPL is engaged in
milling, processing and manufacturing of basmati rice in a fully
integrated setup with a capacity of around 200 metric tons per day.
Jatinder Singh, Harminder Singh and Ravinder Singh are the
directors.
KANDUI INDUSTRIES: Ind-Ra Keeps BB Issuer Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kandui
Industries Pvt Ltd.'s instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR290 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB/Positive (ISSUER NOT
COOPERATING) rating;
-- INR170 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR108.90 mil. Term loan due on April 30, 2025 maintained in
non-cooperating category with IND BB/Positive(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Established in 2006, Kandui Industries manufactures master batches
that are used in the plastic and polyester industries for adding
color shades to the final product.
KHARE & TARKUNDE: Ind-Ra Cuts Bank Loan Rating to D
---------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Khare & Tarkunde
Infrastructure Private Limited debt facilities to 'IND D (ISSUER
NOT COOPERATING)' from IND BB+ (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR425 mil. Fund-based working capital limit (Long-term/Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR1,003.1 bil. Non-fund-based working capital limit (Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR181 mil. Term loan (Long-term) downgraded with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Khare & Tarkunde Infrastructure Private Limited.
The downgrade of the bank facility ratings reflects Khare &
Tarkunde Infrastructure Private Limited's delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Khare &
Tarkunde Infrastructure Private Limited's delays in debt servicing,
based on information available from public sources. Ind-Ra has not
been able to ascertain the reason for the delays, as the issuer has
been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Khare & Tarkunde Infrastructure primarily focuses on designing and
constructing bridges for governments or government enterprises.
KIRORIMAL KASHIRAM: Ind-Ra Moves BB- Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kirorimal Kashiram
Marketting & Agencies Pvt Ltd.'s (KKAMPL) bank facilities to the
non-cooperating category as the issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency through emails and phone calls. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND BB-/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR495 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR148.2 mil. Term loan due on July 2027 migrated to non-
cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information.
The ratings were last reviewed on October 27, 2022. Ind-Ra is
unable to provide an update, as the agency does not have adequate
information to review the ratings.
Company Profile
Incorporated in 1995, KKAMPL is primarily engaged in processing and
trading of basmati rice and pulses.
KRISHNA STEELAGE: Ind-Ra Keeps BB Loan Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shri Krishna
Steelage Private Limited's bank loan facilities in the
non-cooperating category and has simultaneously withdrawn the same.
The detailed rating actions are:
-- INR130 mil. Fund-based limits* maintained in non-cooperating
category and withdrawn; and
-- INR40 mil. Non-fund-based working limit** maintained in non-
cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based
on the best available information
*Maintained at 'IND BB (ISSUER NOT COOPERATING)'/Stable/'IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
**Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
Ind-Ra has maintained the ratings in the non-cooperating category
because SKSPL did not participate in the rating exercise despite
requests by the agency through emails and phone calls, and has not
provided information pertaining to the audited financials for FY23,
interim financials, management certificate, and bank limit
utilizations. This is in accordance with Ind-Ra's policy of
Guidelines on What Constitutes Non-cooperation.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Company Profile
Incorporated in 2004, SKSPL, managed by Vinod Gautam and Surender
Kumar, manufactures heavy gauge stainless steel (SS) cold patti
products derived from stainless steel flats. The company's
manufacturing facility is located at Sirmour District in Himachal
Pradesh and has annual installed capacity of 9,000 tons per annum.
Bulk of the revenue is derived from manufacturing of steel and
around 10% from trading of stainless steel.
LEAPFROG ENGINEERING: ICRA Keeps C Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term rating of Leapfrog Engineering Services
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]C; ISSUER NOT COOPERATING.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.00 [ICRA]C; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 4.00 [ICRA]C; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Leapfrog Engineering Services Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Leapfrog Engineering Services Pvt (LESPL) Limited was incorporated
by Mr Prabhav N Rao in 2005, in Bangalore, Karnataka. It currently
has four Directors and is an integrated Engineering Services
Company based out of Bangalore. The vision of the company is to
provide 'Design Build' solutions to its clients and to become a
reputed integrated engineering services company.
LEARNET SKILLS: Ind-Ra Keeps BB Loan Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Learnet Skills
Limited (Formerly IL&FS Skills Development Corporation Limited)'s
instrument(s) rating in the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on
the agency's website.
The detailed rating action is:
-- INR100 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Learnet Skills is a joint venture between Schoolnet India Limited
and National Skill Development Corporation (19.99%). The company
addresses training needs across government organizations, private
companies, international bodies and trainees themselves.
LEVEL 9: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Level 9 Biz Private
Limited's (Level) bank facilities as follows:
-- INR60 mil. Fund-based working capital limits assigned with IND
BB/Stable/IND A4+ rating; and
-- INR140 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
Analytical approach: Ind-Ra has taken a standalone view of Level.
Key Rating Drivers
The ratings reflect Level's small scale of operations, as indicated
by its revenue of INR469.69 million in FY23 (FY22: INR255.23
million; FY21: INR198.80 million). The revenue had increased yoy in
FY23 owing to a rise in the number of orders executed. Level is an
engineering, procurement and construction (EPC) contractor that
executes projects, mainly civil work for the government, and bids
for tenders from Central Public Works Department work and state
Public Works Department. In 7MFY24, Level earned a revenue of
INR280.54 million. Level had an outstanding order book of INR962.6
million at end-November 2023. In FY24, Ind-Ra expects the revenue
to improve due to the orders in hand.
The ratings also reflect Level's modest credit metrics with an
interest coverage (operating EBITDA/gross interest expenses) of
3.99x in FY23 (FY22: 2.23x) and a net leverage (adjusted net
debt/operating EBITDAR) of 5.56x (10.55x). The metrics had improved
in FY23, due to an increase in the absolute EBITDA to INR28.10
million in FY23 (FY22: INR14.15 million). Ind-Ra expects the credit
metrics to remain at similar levels in FY24 and in FY25, due to the
absence of any debt-led capex plans.
The ratings also factor in Level's average EBITDA margin of 5.98%
in FY23 (FY22: 5.54%) with a return on capital employed of 12.7%
(6.9%). The margin increased slightly yoy in FY23 due to a
high-margin tender order executed during the year. Ind-Ra expects
the EBITDA margin to remain range-bound in FY24 and FY25, due to
the similar nature of orders in hand.
Liquidity Indicator - Poor: The elongated networking cycle improved
206 days in FY23 (FY22: 369 days), mainly on account of a decrease
in the inventory days to 247 (348). Level's debt obligations in
FY24 and FY25 are INR6.3 million and INR6.3 million, respectively.
Level does not have any capital market exposure and relies on a
single banker for its funding requirement. In FY23, the cash flow
from operations stood INR13.89 million (FY22: negative INR26.13
million) mainly on account of a decrease in the working capital
requirements. Moreover, the free cash flow remained negative at
INR9.78 million in FY23 (FY22: negative INR26.83 million). The
average maximum utilization of Level's fund-based working capital
limits was around 98.43% over the 12 months ended October 2023. The
cash and cash equivalents were INR12.62 million in FY23 (FY22:
INR8.29 million).
The ratings are, however, supported by the promoters' nearly 10
years of experience in the EPC industry. This has facilitated the
company to establish strong relationships with customers as well as
suppliers.
Rating Sensitivities
Positive: A significant increase in the scale of operations, along
with an improvement in the overall credit metrics with the net
leverage falling below 4.5x and an improvement in the liquidity
profile, all on a sustained basis, could lead to a positive rating
action.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and liquidity profile,
all on a sustained basis, could lead to a negative rating action.
Company Profile
Level was incorporated in 2014, as an EPC contractor. It is based
out of Mohali. Yashbir Singh is the founder and director of the
company.
LORDS INFRACON: Ind-Ra Assigns BB- Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Lords Infracon
Private Limited's (LIPL) bank facilities as follows:
-- INR200 mil. Fund-based working capital limit assigned with
IND BB-/Stable/IND A4+ rating; and
-- INR450 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
Analytical Approach: Ind-Ra has assessed the company on a
standalone basis while assigning the ratings.
Key Rating Drivers
Liquidity Indicator - Poor: LIPL does not have any capital market
exposure and relies on banks and financial institutions to meet its
funding requirements. LIPL's average maximum utilization of the
fund-based limits and non-fund-based limits was 93.23% and 90.55%
during the 12 months ended October 2023. The cash flow from
operations remained negative at INR87.23 million in FY23 (FY22:
negative INR21.42 million) due to an increase in the working
capital requirements with the rise in scale. The free cash flow
remained negative at INR205.04 million in FY23 (FY22: negative
INR27.87 million) due to the capex undertaken by the company. The
company had low cash and cash equivalents of INR0.07 million at
FYE23 (FYE22: INR0.15 million), against scheduled debt repayment
obligations of INR92.66 million and INR50.47 million in FY24 and
FY25, respectively. In FY23, despite a fall in debtor days to 120
days (FY22: 186 days), the net working capital cycle stretched to
20 days (negative two days) because of a decline in creditor days
to 106 days in (199 days).
The ratings reflect LIPL's small scale of operations, as indicated
by revenue of INR836.53 million in FY23 (FY22: INR430.82 million).
The revenue grew 94.17% yoy in FY23, as the company started
receiving work contracts from the government of Odisha during the
year. The company achieved a revenue of INR571.07 million during
7MFY24. Furthermore, as on 31 October 2023, the company had an
unexecuted order book of INR1,906.3 million, providing a revenue
visibility of 2.28x of FY23 revenue. The orderbook is scheduled to
be executed by FY26. In FY24, Ind-Ra expects the revenue to improve
on a yoy basis, supported by the moderate orderbook size and the
company's increased biddings in the tenders raised by the
government of Odisha.
The ratings also reflect LIPL's moderate credit metrics, with net
financial leverage (total adjusted net debt/operating EBITDAR) of
3.55x in FY23 (FY22: 3.97x) and interest coverage (operating
EBITDA/gross interest expense) of 2.65x (4.15x). In FY23, the
interest coverage deteriorated due to an increase in the interest
expense to INR34.97 million (INR11.68 million), mainly on account
of higher bank charges. Despite a rise in the total debt to
INR328.33 million in FY23 (FY22: INR192.36 million), the net
leverage improved during the year due to an increase in the
absolute EBITDA to INR92.52 million (INR48.44 million). Ind-Ra
expects the interest coverage to weaken further in FY24 owing to
increased utilization of the fund-based and non-fund-based limits,
but the net leverage is likely to improve slightly due to an
increase in the absolute EBITDA.
The ratings factor in LIPL's average EBITDA margins. The margin
dipped slightly to 11.06% in FY23 (FY12: 11.24%) due to an
increase in operating expenses. The ROCE was 14.1% in FY23 (FY22:
7.7%). The EBITDA margins are susceptible to the company's
aggressive biddings to compete against other players in the
industry. Ind-Ra expects the EBITDA margin to remain at similar
levels in FY24, given the similar nature of operations.
The ratings are supported by the promoters' experience of more than
two decades in civil construction industry, which has helped LIPL
establish strong relationships with customers as well as
suppliers.
Rating Sensitivities
Negative: Deterioration in the scale of operations, leading to
deterioration in the credit metrics, with the interest coverage
falling below 1.8x or further deterioration in the liquidity
profile, all on a sustained basis, will be negative for the
ratings.
Positive: An increase in the scale of operations, leading to an
improvement in the credit metrics, while improving the liquidity
profile and improved financial reporting, all on a sustained basis,
will be positive for the ratings.
Company Profile
Incorporated in 2014, LIPL is a Jamshedpur-based company, primarily
engaged in civil construction work, including canals, roads and
buildings, for the government of Jharkhand and the government of
Odisha. The entity was started as a sole proprietorship in the
year 2000, with Mahendra Gope as the proprietor, and it was later
converted into a private company in 2014. The company existing
directors are Mahendra Gope, Urmila Devi and Nilamber Kumar.
MADHURI P. RURAL: Ind-Ra Cuts Debts Rating to D
-----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Madhuri P. Rural
Godowns debt facilities to 'IND D (ISSUER NOT COOPERATING)' from
'IND B+ (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR96.90 mil. Term loan (Long-term) due on March 2025-
February 2028 downgraded with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Madhuri P. Rural Godowns.
The downgrade of the bank facility ratings reflects Madhuri P.
Rural Godowns' delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Madhuri P.
Rural Godowns' delays in debt servicing, based on information
available from public sources. Ind-Ra has not been able to
ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Established in 2013, Madhuri P. owns an 11,000-metric-ton warehouse
in Nagireddy Pally, Telangana. It provides warehouse rental
services to Food Corporation of India and Telangana State
Warehousing Corporation.
MADURAI KRISHNA: Ind-Ra Keeps D Issuer Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Madurai Krishna
Network Private Limited's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR30 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR4 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR30 mil. Term loan due on March 31, 2024 maintained in non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Madurai Krishna Network is engaged in the distribution of cable
networks and has three satellite channels in Tamil Nadu.
MAGTORQ PRIVATE: Ind-Ra Moves BB+ Issuer Rating to NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
MAGTORQ PRIVATE LIMITED to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time., Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR140 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR60 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Company Profile
Incorporated in 1989, MPL is into the designing, development and
manufacturing of customized gear boxes at its facility at SIPCOT,
Tamil Nadu. It mostly supplies the end-products to the defense
sector. It also caters to industries such as sugar and material
handling.
MANI MORE: Ind-Ra Keeps BB+ Issuer Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Mani More
Synthetics Private Limited's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND BB+/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR60 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR1 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR20.1 mil. Term loan due on April 30, 2023 maintained in
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 1999 and headed by Ajeet Udaiveersingh Yadav and
Pawan Yadav, Mani More Synthetics has units having a capacity of
3,900MT/year in Silvassa and Daman to manufacture texturized yarn,
wrap knitted yarn.
MG OILS: Ind-Ra Keeps BB+ Loan Rating in NonCooperating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained MG Oils'
instrument(s) rating in the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND BB+/Stable (ISSUER NOT COOPERATING)' on
the agency's website.
The detailed rating action is:
-- INR220 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2013 as partnership firm, MG Oils provides refining
and trading of edible oil. The firm has its refining plant in
Madhya Pradesh.
MOHAN PODDAR: Ind-Ra Moves BB+ Bank Loan Rating to NonCooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Mohan Poddar's
(MP) bank loan rating to the non-cooperating category and has
simultaneously withdrawn it.
The detailed rating actions are:
-- INR90 mil. Fund-based working capital limit* migrated to non-
cooperating category and withdrawn; and
-- INR410 mil. Non-fund-based working capital limit** migrated to
non-cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
9, 2023. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
*Migrating to 'IND BB+ (ISSUER NOT COOPERATING)'/Stable/'IND A4+
(ISSUER NOT COOPERATING)' before being withdrawn
**Migrating to 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
Ind-Ra has migrated the ratings to the non-cooperating category
because the issuer did not participate in the rating exercise,
despite repeated requests by the agency through emails and phone
calls, and has not provided information about the audited
financials, interim financials, sanctioned bank facilities and
utilization, business plan, information on corporate governance,
and management certificate.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender. This is
consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra
will no longer provide analytical and rating coverage for the
company.
Company Profile
MP was incorporated as a proprietorship firm in 1994 and was
converted into a partnership firm in 2002. It is a class-A
contractor that undertakes civil construction contracts of roads,
buildings and bridges from the government in Jharkhand, Odisha and
Chhattisgarh.
MOOKAMBIGA SPINNING: Ind-Ra Cuts Debts Rating to D
--------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shri Mookambiga
Spinning Mills Pvt Ltd debt facilities to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR230 mil. Fund-based working capital limit (Long Term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR24.5 mil. Term loan (long Term) downgraded with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Shri Mookambiga Spinning Mills Pvt Ltd.
The downgrade of the bank facility ratings reflects Shri Mookambiga
Spinning Mills Pvt Ltd.'s delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Shri Mookambiga
Spinning Mills Pvt Ltd.'s delays in debt servicing, based on
information available from public sources. Ind-Ra has not been able
to ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1983, Shri Mookambiga Spinning Mills manufactures
cotton yarn at its 12,000kg/day facility in Tamil Nadu.
OCTAL SALES: Ind-Ra Cuts Debts Rating to D
------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Octal Sales
Private Limited debt facilities to 'IND D (ISSUER NOT COOPERATING)'
from 'IND B- (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR70 mil. Fund-based working capital limit (Long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Octal Sales Private Limited.
The downgrade of the bank facility ratings reflects Octal Sales
Private Limited's delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Octal Sales
Private Limited's delays in debt servicing, based on information
available from public sources. Ind-Ra has not been able to
ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1997, OSPL trades jute. It forayed into the mining
of stones in 2017. The company is managed by Sajan Bajaj and has
its registered office in Kolkata.
OSHIYA STRIPS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term rating of Shree Oshiya
Strips Impex Private Limited in the 'Issuer Not Cooperating'
category. The rating are denoted as "[ICRA]D; ISSUER NOT
COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Short-term 21.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Shree Oshiya Strips Impex Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in April 2010, Shree Oshiya is primarily involved in
the trading of various iron and steel products such as hot rolled
(HR) coils, mild steel (MS) sheets, steel plates/rods, cold rolled
(CR) coils, sheets, bars, galvanised pipes, beams and ferrous metal
scrap. The company started its trading operations in February,
2011. The company is a part of the Shree Oshiya Group of industries
which refers to a consortium of companies promoted and managed by
the Ranka family.
OUR CO: ICRA Keeps D Debt Rating in Not Cooperating Category
------------------------------------------------------------
ICRA has kept the Long-Term rating of Our Co. Infrastructure
Developers Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 84.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Our Co. Infrastructure Developers Private Limited, ICRA has
been trying to seek information from the entity so as to monitor
its performance. Further, ICRA has been sending repeated reminders
to the entity for payment of surveillance fee that became due.
Despite multiple 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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
OCIDPL is a private limited company established on September 13,
2007 with an aim of taking up construction projects for Mother's
Pride Group across Delhi –NCR region. The company was inactive in
the initial years and was looking at land in Delhi where itcould
set up the building and infrastructure for a Mother's Pride school.
Land of 4.5 acre was purchased in 2013 in sector 57, Gurgaon where
it was proposed to set up 'Presidium' brand of school. Initially,
it was proposed to construct two Blocks namelyBlock A and Block B
(Phase –I). Subsequently, in August 2013, Bank of India
sanctioned a term loan of INR35 crore and the Company started
working on the project. However, expecting more demand, the Company
proposed to expand its school operations and build additional
infrastructure to support this demand. In this expansion, the
Company has envisaged some additional infrastructure in Blocks A &
B, and a whole new Block C having classrooms and facilities for
extra-curricular activities (like sports, music etc.) (Phase
–II).
P. PADMA RURAL: Ind-Ra Cuts Debts Rating to D
---------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded P. Padma Rural
Godowns debt facilities to 'IND D (ISSUER NOT COOPERATING)' from
'IND B+ (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR97.4 mil. Term loan (Long-Term) due on March 2025- February
2028 downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for P. Padma Rural Godowns.
The downgrade of the bank facility ratings reflects P. Padma Rural
Godowns' delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects P. Padma Rural
Godowns' delays in debt servicing, based on information available
from public sources. Ind-Ra has not been able to ascertain the
reason for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Established in 2013, P. Padma Rural Godowns owns an 11,000MT godown
at Nagireddy Pally, Telangana. It provides godown rental services
to Food Corporation of India and Telangana State Warehousing
Corporation.
PENTA GOLD: Ind-Ra Cuts Debts Rating to D
-----------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Penta Gold
Limited (PGL) debt facilities to 'IND D (ISSUER NOT COOPERATING)'
from IND BB (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR380 mil. Fund-based working capital limit (Long-term/Short
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for PGL.
The downgrade of the bank facility ratings reflects PGL's delays in
debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Penta Gold
Limited's delays in debt servicing, based on information available
from public sources. Ind-Ra has not been able to ascertain the
reason for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 2012 as a private limited company and converted to
a closely held public limited company in March 2017, Penta Gold
manufactures and sells gold jewelry in the domestic and
international markets.
POMMYS GARMENTS: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Pommys Garments (India)
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 26.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 3.38 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Pommys Garments (India) Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Pommys Garments (India) Limited ("PGIL") was set up in 1998 as a
partnership firm with the present directors as the partners. The
company was converted from a private limited company to a public
limited company in November 2017 and the name changed from Pommys
Garments (India) Private Limited to Pommys Garments (India)
Limited. Initially, PGIL was involved in the manufacturing of
women's night wear had diversified during the recent years to also
manufacture women's tops and leggings. The Company procures raw
material (cloth) in bale form from suppliers in Gujarat, Mumbai,
Tirupur and Rajasthan. The Company has an in house capacity to
produce 5000 pieces per day. The Company has also recently entered
into newer segments like women's innerwear, salwars and men's
shirts.
The Company also has retail presence through 19 showrooms across
Tamil Nadu and Pondicherry and also plans to open 5 more showrooms
in during 2016-17. Currently PGIL sells its products through ~300
retail showrooms across Tamil Nadu, Kerala, Karnataka and Andhra
Pradesh under the brand "Pommys".
POSCO-POGGENAMP: Ind-Ra Cuts Loan Rating to D
---------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Posco-Poggenamp
Electrical Steel Private Limited's (PPESPL) debt facilities to 'IND
D (ISSUER NOT COOPERATING)' from IND BB (ISSUER NOT COOPERATING).'
The detailed rating action is:
-- INR200 mil. Fund Based Working Capital Limit downgraded with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for PPESPL.
The downgrade of the bank facility ratings reflects PPESPL's delays
in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects (PPESPL) delays
in debt servicing, based on information available from public
sources. Ind-Ra has not been able to ascertain the reason for the
delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Established in 2010, PPESPL is a joint venture between Poggenamp
Nagarsheth Powertronics and POSCO India Pune Processing Centre Pvt.
Ltd., a 65% subsidiary of South Korea-based POSCO.
PPESPL manufactures cut-to-length transformer lamination sheets. It
has an installed capacity of 24,000 metric tons per annum. As of
March 2019, PPESPL was 51% held by PANPPL, followed by Posco India
Pune (26%) and the promoters of PANPPL (23%).
PRAGATHI HATCHERIES: Ind-Ra Cuts Debts Rating to D
--------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Pragathi
Hatcheries debt facilities to 'IND D (ISSUER NOT COOPERATING)' from
'IND B (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR46.08 mil. Term loan (Long-term) due on April 30, 2022
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR75 mil. Fund-based working capital limits (Long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Pragathi Hatcheries.
The downgrade of the bank facility ratings reflects Pragathi
Hatcheries' delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Pragathi
Hatcheries' delays in debt servicing, based on information
available from public sources. Ind-Ra has not been able to
ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
PH operates a poultry farm and manufactures poultry feed for own
consumption.
PRAKASH INDUSTRIAL: Ind-Ra Cuts Debts Rating to D
-------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Prakash
Industrial Infrastructure Private Limited (PIIPL) debt facilities
to 'IND D (ISSUER NOT COOPERATING)' from 'IND B (ISSUER NOT
COOPERATING)'.
The detailed rating actions are:
-- INR100 mil. Fund-based working capital limit (Long Term/Short
Term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR93.7 mil. Term Loan (Long Term) downgraded with IND D
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for PIIPL.
The downgrade of the bank facility ratings reflects PIIPL's delays
in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects PIIPL's delays
in debt servicing, based on information available from public
sources. Ind-Ra has not been able to ascertain the reason for the
delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Established in 1975, PIIPL is primarily engaged in industrial civil
construction for the private sector. The company is promoted by Mr.
Dinesh Agrawal.
PRECISE AUTOMATION: Ind-Ra Keeps B Loan Rating in NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Precise
Automation and Control Private Limited's instrument(s) rating in
the non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND B/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR35 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND B/Stable(ISSUER NOT
COOPERATING)/ IND A4 (ISSUER NOT COOPERATING) rating;
-- INR14.50 mil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND A4 (ISSUER NOT
COOPERATING) rating; and
-- INR9.42 mil. Term loan due on August 31, 2024 maintained in
non-cooperating category with IND B/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in March 2007, Precise Automation and Control is
engaged in the business of designing, engineering and manufacturing
of all kinds of electrical distribution panel. It also deals with
electrical industrial motors, frequency drives, MCC panels, PCC
panels, DCS and SCADA systems. The registered office is located at
Vadodara, Gujarat. The directors are Darshak Kumar Sheth and
Kaminiben Sheth. The promoter is in this business from last 25
years.
PREMIER SEAFOODS: Ind-Ra Keeps BB- Issuer Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Premier Seafoods
Exim Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND
BB-/Stable(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR180 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2000, Kerala-based Premier Seafoods Exim processes
sea-caught and cultured shrimps. The company has two processing
units, one each in Cochin (Kerala), and Aroor (Alappuzha). It
primarily caters to customers in Europe, Japan and other Asian
countries.
RAIGARH FOODS: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Raigarh Foods & Hotel Business Private Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 7.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Raigarh Foods & Hotel Business Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Raigarh Foods & Hotel Business Private Limited (RFHBPL) was
incorporated as a private limited company in 1996 by Mr. Subhash
Agarwal based in Raigarh, Chhattisgarh. The company is primarily
engaged in the milling of raw and par-boiled rice.
RAINBOW FOUNDATIONS: Ind-Ra Moves BB NCDs Rating to NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated the rating on
Rainbow Foundations Limited's (RFL) proposed non-convertible
debentures (NCDs) to the non-cooperating category as the issuer did
not participate in the rating exercise despite continuous requests
and follow-ups by the agency through emails and phone calls.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating action is:
-- INR1.750 bil. Proposed NCDs migrated to non-cooperating
category with IND BB/Stable (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. The ratings were last reviewed on
January 12, 2023. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated in June 1994, RFL is engaged in the construction of
commercial and residential projects across Tamil Nadu under the
Rainbow brand. So far, the company has completed 36 projects and
has six ongoing projects. Its shares are listed on BSE Ltd.
RAMS ASSORTED: Ind-Ra Cuts Debts Rating to D
--------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Rams Assorted
Cold Storage Limited (RACSL) debt facilities to 'IND D (ISSUER NOT
COOPERATING)' from IND BB+ (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR350 mil. Fund Based Working Capital Limit downgraded with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for RACSL.
The downgrade of the bank facility ratings reflects RACSL's delays
in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Rams Assorted
Cold Storage Limited's delays in debt servicing, based on
information available from public sources. Ind-Ra has not been able
to ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1986, Ram's Assorted Cold Storage is engaged in
seafood processing and exports.
RANGANATHAN RAJESWARI: ICRA Keeps D Rating in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term rating of Ranganathan Rajeswari
Charitable Trust in the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]D: ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 8.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Ranganathan Rajeswari Charitable Trust, ICRA has been trying
to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple 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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Ranganathan Rajeswari Charitable Trust ("RRCT") was established in
2006 to impart professional education to students in Tamil Nadu.
The trust owns and manages 'Ranganathan Engineering College'
("REC"), 'Ranganathan Architecture College' ("RAC") and
'Ranganathan Polytechnic College' ("RPC") situated in Coimbatore,
Tamil Nadu. The promoters of the trust are Dr. R. Murugesan, Dr. P.
Tamilarasi Murugesan, Mr. R. Karuna Boopathy, Mrs. K. Tamilarasi,
Mr. R. Subramanian, Mrs. B. Ezhilarasi and Mrs. M. Praveena. The
promoters have more than 30 years of professional experience in the
education sector.
RANGOTSAV SAREES: Ind-Ra Cuts Debts Rating to D
-----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Rangotsav Sarees
Pvt Ltd (RS) debt facilities to 'IND D (ISSUER NOT COOPERATING)'
from 'IND BB- (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR140 mil. Fund-based working capital limit (Long term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR10 mil. Non-fund based working capital limit (standby line
of credit) (Short Term) downgraded with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR7.5 mil. Non-fund-based working capital limit (Short term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for RS Pvt Ltd.
The downgrade of the bank facility ratings reflects RS's delays in
debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects RS's delays in
debt servicing, based on information available from public sources.
Ind-Ra has not been able to ascertain the reason for the delays, as
the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
RS was incorporated in June 1999. The company manufactures and
trades sarees and salwar suits.
RBA FERRO: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated RBA Ferro Industries
Private Limited's (RFIPL) bank facilities as follows:
-- INR780 mil. Fund-based limit assigned with IND BB/Stable/IND
A4+ rating; and
-- INR184 mil. Term loan due on November 2029 assigned with IND
BB/Stable rating.
Analytical Approach: Ind-Ra has assessed the company on a
standalone basis while assigning the ratings.
Key Rating Drivers
Liquidity Indicator - Poor: Although the company's average
utilization for the cash credit account amounting to INR10 million
stood around 68% for the 12 months ended October 2023, there have
been EMI cheque bounce instances in the month of March 2023 and May
2023. Since then, EMI payments have been timely. Also, while cash
and cash equivalents improved to INR20.8 million at FYE23 (FYE22:
INR3.18 million) and cash flow from operations turned positive at
INR141 million (negative INR271.2 million) on the back of improved
operating profitability and positive working capital changes, the
company has sizeable repayment obligations of around INR67 million
and INR76.5 million in FY24 and FY25, respectively. The net working
capital cycle, although improved, stood elongated at 171 days in
FY23 (FY22: 179 days), due to high debtor days of 84 (117), high
inventory days of 110 (116) and low creditor days of 23 (54).
The ratings also reflect RFIPL's weak credit metrics, as reflected
in its high adjusted net leverage (total adjusted net
debt/operating EBITDA) of 4.16x at FYE23 (FY22: negative 14.53x).
However, the interest coverage ratio (operating EBITDA/ gross
interest expenses) became comfortable after improving to 3.49x at
FYE23 (FYE22: negative 1.28x). The improvement in credit metrics
was brought about by higher EBITDA of INR178 million in FY23 (FY22:
negative INR56 million) and lower gross debt levels of INR1,364.4
million (INR1,489.3 million). RFIPL raised a term loan of INR184
million in May 2023 for funding capex worth INR262.5 million during
FY24, for importing a molding machine from Denmark to enhance its
manufacturing capacity to 34,320MT per annum from 18,240MTPA.
Consequently, Ind-Ra expects the credit metrics to remain stressed
in the near to medium term with average operating profitability. A
sustained improvement in the operating profitability thus is
critical to a steady improvement in the company's credit metrics.
The company expects the enhanced capacity to start generating
revenue from FYE25 or FY26.
Notably, the major portion of debt comprises a non-interest-bearing
unsecured loan of INR655.2 million, infused by the company's
promoters, where there are no repayment obligations.
The ratings factor in RFIPL's modest operating margin which rose to
6.14% in FY23 (FY22: negative 2.12%; FY21: 5.4%) due to higher
revenue, with ROCE at 4.8% (negative 8.4%, 2%). The company does
not maintain any hedging policy, despite an export-oriented
manufacturing focus, and relies on natural hedging. Notably, the
company benefitted from a foreign exchange gain. The operating
profitability was subdued during FY22 amid the spike in
manufacturing costs and shipping freights combined with the
inability of the company to pass on price increases due to the
absence of price escalation clauses. Ind-Ra expects a slightly
lower margin of around 5% in the near to medium term.
The ratings reflect RFIPL's medium scale of operations with its
revenue increasing to INR2,900 million in FY23 (FY22: INR2,639
million; FY21: INR1,835 million), supported by quantity as well as
price improvements. Exports account for major operations (FY23:
96%; FY22: 95%) and increased to INR2,743 million in FY23 (FY22:
INR2,475 million). Ind-Ra expects the revenue to marginally decline
in FY24, due to muted production in 1H, albeit partially offset by
increased realizations per MT. During 1HFY24, the company recorded
revenue of INR1,240 million. Ind-Ra expects the medium-term revenue
to benefit from the increased licensed capacity (expected by FYE24)
and expansion in manufacturing facility.
The ratings are supported by RBA's promoters over three decades of
experience in similar/ related industry in the domestic and
overseas markets, leading to established relationships with
customers and suppliers. The company sells its products under the
brand name RBA, which is registered in India, Oman and UAE, while
the products in other countries are sold through distributors.
Rating Sensitivities
Positive: A substantial improvement in the scale of operations and
operating profitability and liquidity position, all on a sustained
basis, could lead to a positive rating action.
Negative: A substantial decline in the scale of operations or
operating profitability with interest coverage falling below 2.0x
on a sustained basis or deterioration in liquidity profile, on a
sustained basis, could lead to a negative rating action.
Company Profile
Founded in 1986 and promoted by Omprakash Agarwal and Harsh Vardhan
Agarwal, RFIPL is a manufacturer and exporter of a diverse range of
iron castings including manhole covers & frames, grate & frames,
linear trench gratings, surface boxes, industrial pumps & valves,
bearing housings, auto & railway parts and various original
equipment manufacturer products in both grey & ductile Iron. The
company is ISO 9001, ISO 14001 & ISO 45001 certified and has three
manufacturing facilities - two in Howrah and one in Rourkela.
RIVER FRONT: Ind-Ra Assigns BB- LongTerm Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated River Front
Developers Private Limited's (RFDPL) long-term debt as follows:
-- INR850 mil. Proposed term loan assigned with IND BB-/Stable
rating.
ANALYTICAL APPROACH To arrive at the ratings, Ind-Ra continues to
take a standalone view of RFDPL.
Key Rating Drivers
The rating reflects RFDPL's high offtake risk for its ongoing
projects Dion's Twin Tower and Dion's Skywalk as only 228 units
were booked of the total 662 units at end-November 2023. Dion's
Twin Tower and Dion's Skywalk were registered with Real Estate
Regulatory Authority in August 2022 and May 2022, respectively.
Ind-Ra expects the booking velocity to increase from 3QFY23 and the
bookings to improve as the projects approach completion by June
2026.
Even though the project construction is in line with the execution
schedule, there exists time and cost overrun risks. The total cost
of the ongoing units is estimated to be INR4,310 million, which is
to be funded by the promoter's contribution of INR240 million
(5.56%), customer advances of INR2,700 million (62.65%), unsecured
loan from promoters of INR520 million (12.06%) and a term loan of
INR850 million (19.72%). As on 30 June 2023, RFDPL's total cost
incurred was INR720 million (promoter's contribution: INR240
million; unsecured loan form promoters: INR330 million; customer
advances: INR150.00 million). Also, given the aggressively
improving supply scenario, there is significant competition.
Liquidity Indicator - Stretched: RFDPL's ratings are constrained by
the likely cash flow-mismatch risk, if the advances from customer
are lower than Ind-Ra's expectations. The minimum debt service
coverage ratio, as per the management, will be 1.96x in FY28. The
ratings are further constrained by the company's lack of access to
the capital market. Furthermore, the debt tie-up is yet to be
completed.
However, the rating supported by the prime location of the project
in Cuttack.
The rating also factors in the management's experience of more than
a decade in the real estate business.
Rating Sensitivities
Positive: An improvement in the sales and the timely receipt of
advances from customers, leading to stronger cash flows,
achievement of breakeven and visibility of means of finance and
debt tie up for new project could lead to a positive rating
action.
Negative: Lower-than-Ind-Ra expected sales volume or lower
realization from bookings or time or cost overruns, leading to
stressed cash flows, could lead to a negative rating action.
Company Profile
RFDPL is as a consortium of Dion Infratech Pvt Ltd and SCS
Constructions India Pvt Ltd incorporated in August 2020 promoted by
Manoj Sahoo. The company is constructing two residential and
commercial real estate projects in Cuttack.
RSH AGRO: Ind-Ra Cuts Bank Loan Rating to D
-------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded R.S.H. Agro
Products Limited (RSHAPL) debt facilities to 'IND D (ISSUER NOT
COOPERATING)' from IND BB+ (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR250 mil. Fund-based working capital limit (long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR161.24 mil. Non-fund-based working capital limit (short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR38.75 mil. Term loan (long-term) issued on March 2022
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for RSHAPL.
The downgrade of the bank facility ratings reflects RSHAPL's delays
in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects RSHAPL's delays
in debt servicing, based on information available from public
sources. Ind-Ra has not been able to ascertain the reason for the
delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 2012, R.S.H. Agro Products manufactures mustard oil
and oil cakes at its unit in Guwahati, Assam, which has a crushing
capacity of 21,000 metric tons per annum.
SAFAL GLADEONE: Ind-Ra Withdraws BB+ Bank Loan Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Safal Gladeone
Estate's (SGE) bank loan rating as follows:
-- The IND BB+/Stable rating on the INR300 mil. Term loan due on
March 31, 2026 is withdrawn.
Analytical Approach: NA
Key Rating Drivers
Ind-Ra is no longer required to maintain the ratings, as SGE has
completely repaid its outstanding debt and the agency has received
no-dues certificates from the lenders. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings.
Company Profile
SGE is a partnership firm established by the promoters of
Ahmedabad-based BSafal group. The firm has purchased a land parcel
in Sanand, Gujarat. In the current phase, SGE is constructing 160
villas and a resort with a golf course.
SANDOR LIFESCIENCES: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------------
ICRA has kept the long-term rating for the Debenture Programme of
Sandor Lifesciences Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 35.00 [ICRA]D ; ISSUER NOT
COOPERATING;
Debenture Rating continues to remain under
'Issuer Not Cooperating' category
As part of its process and in accordance with its rating agreement
with Sandor Lifesciences Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Promoted by Mr. Rajeev Sindhi, Sandor Lifesciences Private Limited
(SLPL), provides services in medical genetics, cellular biology,
proteomics, genomics etc. The company is also a provider of trained
scientists and research assistants to the Centre for DNA
Fingerprinting and Diagnostics, operated by the Department of
Biotechnology, Ministry of Science and Technology and University of
Delhi. The company also provides biorepository services following
standard protocols for inventory and tracking solutions. Also, the
R&D department of SLPL is recognized by the Department of
Scientific and Industrial Research.
SATHLOKHAR SYNERGY: Ind-Ra Assigns BB+ Rating, Outlook Positive
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sathlokhar Synergys
Private Limited's (SSPL) bank facilities as follows:
-- INR200 mil. Fund-based working capital limits assigned with
IND BB+/Positive/INDA4+ rating.
Analytical approach: Ind-Ra has assessed the company on a
standalone basis.
The Positive Outlook reflects SSPL's comfortable liquidity position
at end-November 2023 and the likelihood of an improvement in the
revenue visibility, given the orders of INR4,824 million in the
pipeline, which are yet to be confirmed.
Key Rating Drivers
The rating reflects SSPL's small scale of operations even as its
revenue increased to INR871.09 million in FY23 (FY22: INR833.99
million) due to improved order execution and a healthy order book
in hand. During 7MFY24, SSPL earned a revenue of INR954.08 million.
The company had an order book of INR5,077 million in hand at
end-November 2023, a majority of which is to be executed by
December 2024 ,providing a low visibility beyond 3QFY25. Ind-Ra
expects the revenue to improve significantly in FY24 and FY25. SSPL
has orders worth INR4,824 million in the pipeline are which are yet
to be confirmed. Securing orders from the pipeline will be a key
monitorable by Ind-Ra.
The rating is constrained by SSPL's customer and project
concentration risk, as it derives its revenue from three to four
major projects. However, this risk is mitigated as these projects
are from strong counterparties such as Muthiah Beverage and
Confectionary Private Limited (debt rated at IND BBB-/Stable)
enabling SSPL to receive payments within a stipulated period.
Liquidity Indicator - Adequate: The company's average peak
utilization of its fund-based working capital limits was 61.33%
during the 12 months ended November 2023. The cash and cash
equivalents stood at INR22.47 million at FYE23 (FYE22: INR0.1
million). The company's net working capital cycle remained
elongated despite shortening to 106 days in FY23 (FY22: 126 days).
The working capital cycle improved yoy in FY23 due to a shorter
inventory holding period of 133 days (FY22: 171 days). The cash
flow from operations deteriorated to INR20.88 million in FY23
(FY22: INR39.72 million) due an increase in SSPL's working capital
requirements. Furthermore, the free cash flow declined to INR18.09
million in FY23 (FY22: INR38.99 million). The company has
repayment obligations of INR3.02 million in FY24 and INR0.61
million in FY25, which will be met through internal accruals. SSPL
does not have any capital market exposure and relies on a single
bank to meet its funding requirements.
The rating is, however, supported by SSPL's healthy EBITDA margins
of 9.54% in FY23 (FY22: 3.05%) with a return on capital employed
of 46.30% (12.70%). In FY23, the EBITDA margins improved due to a
decrease in the operational expenses. During 1HFY24, SSPL had
booked margins of 8.88% (INR41.22 million). In FY24, Ind-Ra expects
the operating margin to remain at similar levels as 1HFY24, due to
no major change in the cost structure of company.
The rating also reflects SSPL's healthy credit metrics as reflected
by a gross interest coverage (operating EBITDA/gross interest
expense) of 8.66x in FY23 (FY22: 3.81x) and a net leverage
(adjusted net debt/operating EBITDAR) of 0.52x (3.29x). In FY23,
the credit metrics improved yoy on account of an increase in the
EBITDA to INR83.09 million in FY23 (FY22: INR17.81 million). In
FY24, Ind-Ra expects the credit metrics to remain stable, on
account of the absence of any debt-led capex plan by the company.
The promoters of the company have an experience of more than one
decade in the construction business, which enables timely execution
of projects.
Rating Sensitivities
Positive: An improvement in the revenue visibility, backed by
confirmed orders beyond FY25, while achieving Ind-Ra-expected scale
of operations and maintaining the overall credit metrics as well as
the liquidity position, all on a sustained basis, could lead to a
positive rating action.
Negative: A significant decline in the scale of operations and
lower-than-expected revenue visibility, leading to deterioration in
the overall credit metrics and/or deterioration in the liquidity
position, could lead to the Outlook being revised to Stable.
Company Profile
SSPL was incorporated in 2008 by G. Thiyagu and T Sangeetha. The
company is engaged in engineering procurement and construction of
turnkey projects and construction of buildings, warehouses,
commercial buildings, hospitals , marriage halls, hotels/resorts
and solar power projects. The head office is located at Chennai.
SSPL's projects are geographically diversified and are spread
across Mysuru, Uttar Pradesh and Hubli.
TEJAS CONSTRUCTIONS: Ind-Ra Cuts Loan Rating to D
-------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Tejas
Constructions & Infrastructure Private Limited debt facilities to
'IND D (ISSUER NOT COOPERATING)' from IND BB (ISSUER NOT
COOPERATING).'
The detailed rating actions are:
-- INR330 mil. Fund-based working capital limit (long-term/short
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR700 mil. Non-fund-based working capital limit (short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Tejas Constructions & Infrastructure Private Limited.
The downgrade of the bank facility ratings reflects Tejas
Constructions & Infrastructure Private Limited's delays in debt
servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Tejas
Constructions & Infrastructure Private Limited's delays in debt
servicing, based on information available from public sources.
Ind-Ra has not been able to ascertain the reason for the delays, as
the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 2007, Tejas Constructions & Infrastructure
constructs industrial complexes for sugar plants, power plants and
spinning mills, and undertakes turnkey water supply and sanitation
projects.
TELUGU CINE: Ind-Ra Keeps D Issuer Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Telugu Cine
Workers Cooperative Housing Society Limited's instrument(s) rating
in the non-cooperating category. The issuer did not participate in
the surveillance exercise, despite continuous requests and
follow-ups by the agency through emails and phone calls. Therefore,
investors and other users are advised to take appropriate caution
while using the rating. The rating will continue to appear as 'IND
D (ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR500 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Telugu Cine Workers Cooperative Housing Society is registered under
the Andhra Pradesh Co-Operative Societies Act 7 of 1964. It was
established in 1991 for the construction and handover of housing
units in Chitrapuri Colony, Hyderabad.
U.S. SRIVASTAVA: Ind-Ra Keeps BB Issuer Rating in NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained U. S. Srivastava
Memorial Educational Society's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND BB/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR30 mil. Bank Overdraft maintained in non-cooperating
category with IND BB/Stable (ISSUER NOT COOPERATING) rating;
and
-- INR42.9 mil. Term Loan maintained in non-cooperating category
with IND BB/Stable (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
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.
UTTARAYAN STEEL: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term rating of Uttarayan Steel Private
Limited in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.50 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Long-term– 8.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Uttarayan Steel Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
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, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Uttarayan Steel Private Limited (USPL) is engaged in the
manufacturing of mild steel ingots. The firm was acquired by
members of the Goel and the Singhal family around the year 2006 and
its manufacturing facility is located in Roorkee (Uttarakhand) with
an installed annual capacity of 22000 MTPA.
V.M.STAR: Ind-Ra Cuts Loan Rating to D
--------------------------------------
India Ratings and Research (Ind-Ra) has downgraded V.M.Star debt
facilities to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER
NOT COOPERATING).'
The detailed rating action is:
-- INR150 mil. Foreign documentary bill purchase (Short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for V.M.Star.
The downgrade of the bank facility ratings reflects V.M.Star's
delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects V.M.Star's
delays in debt servicing, based on information available from
public sources. Ind-Ra has not been able to ascertain the reason
for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Incorporated in 1993, V.M.Star is engaged in the trading of
diamonds.
VAIBHAVRAJ ENTERPRISES: Ind-Ra Cuts Debts Rating to D
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vaibhavraj
Enterprises debt facilities to 'IND D (ISSUER NOT COOPERATING)'
from 'IND BB- (ISSUER NOT COOPERATING)'.
The detailed rating action is:
-- INR74 mil. Fund based working capital limit (Long-Term/Short-
Term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Vaibhavraj Enterprises.
The downgrade of the bank facility ratings reflects Vaibhavraj
Enterprises' delays in debt servicing
Key Rating Drivers
The downgrade of the bank facility ratings reflects Vaibhavraj
Enterprises' delays in debt servicing, based on information
available from public sources. Ind-Ra has not been able to
ascertain the reason for the delays, as the issuer has been
non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Bengaluru-based Vaibhavraj Enterprises was established as a
partnership firm in 2013 by Mr. Laxman Rathod, Mr. Shankarappa
Rathod and Ms. Roopa P. The firm is engaged in the supply and
installation of submersible pump sets and accessories. It also
undertakes civil construction works for the state government.
YASHODHAN HIGHWAYS: Ind-Ra Cuts Term Loan Rating to B
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Yashodhan
Highways Private Limited's (YHPL) term loan rating to 'IND B' from
'IND BB-', while resolving the Rating Watch with Negative
Implications. The Outlook is Negative.
The detailed rating action is:
-- INR2.60 bil. Term loan due on January 2037* downgraded; Off
Rating Watch with Negative Implications with IND B/Negative
rating.
*Tentative; will be confirmed upon achievement of commercial
operations date (COD)
Analytical Approach: Ind-Ra continues to take a standalone view of
YHPL to arrive at the rating because of the restricted payment
conditions and waterfall arrangements, as per the financing
documents. Any contribution by the sponsor, DRN Infrastructure
Private Limited (DRN; debt rated at 'IND C/IND A4'), in the form of
unsecured loans will be subordinated to the senior debt and any
interest/principal payable on the same from the project cash flows
will be made only after the complying with the restricted payment
conditions.
The rating action reflects the downgrade of credit rating of YHPL's
sponsor-cum-engineering, procurement and construction (EPC)
contractor, DRN, and the presence of a cross-default risk with the
sponsor, as per the loan agreement. The project is behind schedule
with 57.5% progress achieved as of October 2023, against the
earlier planned progress of 90% despite the commencement of
disbursement of term loan and 100% equity injection in March 2023.
However, the management has indicated that the same was partially
on account of procedural-related land issues that were not
addressed within the agreed date of June 30, 2023 by the National
Highways Authority of India (NHAI; 'IND AAA'/Stable) and unseasonal
rains. Ind-Ra takes note of the minutes of meeting with NHAI's
officials post the recent site inspection in November 2023, in
which the authority has indicated YHPL to expedite the progress to
complete 30.925 km (86% of the total length in all aspects) by
February 28, 2024 and the remaining by 31 May 2024, giving
additional time. However, residual construction risk remains high
with significant physical progress remaining (65% EPC progress
achieved until November 10, 2023) amid the weak credit profile and
poor liquidity of the EPC contractor.
Key Rating Drivers
Poor Liquidity of Sponsor-cum-EPC Contractor: DRN delayed interest
payment on overdraft loan in FY23 and a portion of interest
servicing remains due as of September 29, 2023. DRN had free cash
and cash equivalents of around INR0.21 billion at FYE23 (FYE22:
INR0.33 billion), against debt repayment obligations of INR0.34
billion for FY24. The sponsor's average monthly utilization of the
fund-based working capital limits was 99.2% during the 12 months
ended March 2023.
DRN had modest credit metrics and medium scale of operations in
FY23 and 1HFY24. DRN's revenue declined to INR6.4 billion in FY23
(FY22: INR10.2 billion), owing to a slower execution of its ongoing
projects, particularly its group hybrid annuity mode projects and
Versova sewage treatment plant project, which is in the preliminary
stages. The overall EBITDA declined to INR1.1 billion in FY23
(FY22: INR1.2 billion), due to lower operating revenue. The profit
after tax declined sharply to INR0.13 billion in FY23 (FY22:
INR0.51 billion). In 1HFY24, the company generated revenue of
INR2.30 billion, EBITDA of INR0.48 billion and incurred PAT-level
losses of INR0.03 billion. The net leverage (net debt/EBITDA)
increased to 4.8x in FY23 (FY22: 3.4x) and the net leverage
including external debt remained high at 3.6x (3.2x).
Liquidity Indicator - Poor: While 100% equity injection, subsequent
debt disbursements and remaining construction grants to be received
from the NHAI provide visibility for funding, however, modest
credit profile with poor liquidity of the EPC contractor is a
concern.
Moderate Debt Structure: The rated term debt features a waterfall
mechanism and any upstreaming of cash flow will be subject to the
meeting of restricted payment conditions. It also features a debt
service reserve (DSR) equivalent to six months of debt service
obligations, and a major maintenance reserve as per the base case
business plan. The DSR is a part of the project and to be created
at the time of COD. The debt is amortizing in nature with 26
structured half-yearly instalments post the COD, leaving a tail
period of four annuities.
Low Revenue Risk: Post the commissioning of the project, YHPL will
receive revenue from three streams from the NHAI: a) 60% of the bid
project cost adjusted for the Price Index Multiple until the time
of the COD in the form of biannual annuity instalments over 15
years; b) interest on outstanding annuity amount on a reducing
balance basis at the interest rate equal to bank rate plus 3%; and
c) inflation-adjusted operations and maintenance expense of INR90
million per annum. The Price Index Multiple comprises 70% of
Wholesale Price Index and 30% of Consumer Price Index.
Rating Sensitivities
Positive: Project completion within the stipulated timeline and
estimated costs, and an improvement in the credit profile of the
sponsor will lead to an Outlook revision to Stable.
Negative: Any further significant delay in the project progress,
leading to cost overrun and/or any delays or deductions in the
receipt of construction grant from the authority can lead to a
negative rating action.
Company Profile
YHPL is special purpose vehicle incorporated by DRN. The NHAI has
granted a 17-year concession period (including two-year
construction period) for four laning of 36.505km
Kamalapuram-Oddanchatram section of National Highway - 209km from
0km to 35+822km on hybrid annual model basis in Tamil Nadu. The
concession agreement was signed on 5 December 2019.
[*] IBBI Prepares List of 787 IPs to Expedite Resolution Process
----------------------------------------------------------------
The Economic Times reports that the bankruptcy regulator has firmed
up a provisional list of 787 insolvency professionals (IPs) that it
will share with the adjudicating authority to choose from to
oversee various cases of resolution or liquidation.
ET relates that the move is aimed at avoiding administrative delays
in the appointment of IPs to expedite insolvency resolution and
prevent further erosion of stressed asset value, said a senior
official.
Separately, the Insolvency and Bankruptcy Board of India (IBBI) has
also picked up 31 Insolvency Professional Entities (IPEs) --
usually comprising a group of such professionals -- that have also
registered themselves as IPs to oversee resolution. The lists are
provisional and will be updated periodically, ET relays.
IPs are the backbone of any insolvency ecosystem, as they take on
the important roles of resolution professionals or liquidators or
bankruptcy trustees.
According to ET, the latest list comes on top of a similar "common
panel" of about 400 IPs and 17 IPEs prepared by the regulator in
June in a first of its kind move.
Prior to this move, the regulator was required to recommend the
IP's name only after receiving reference from the National Company
Law Tribunal (NCLT) in a corporate insolvency resolution process
(CIRP), which was contributing to the delay in resolution and
resultant erosion of stressed asset value.
ET says the selected IPs were eligible for appointment between July
1 and December 31 this year. The IBBI had, earlier this year, asked
insolvency professionals and such entities who wished to make it to
the first list to submit a formal expression of interest.
Those on the list are eligible for appointment as interim
resolution professionals (in corporate insolvency resolution
process), resolution professionals (in individual insolvency
cases), liquidators and bankruptcy trustees under various sections
of the Insolvency and Bankruptcy Code (IBC).
=========
J A P A N
=========
JAPAN: Issues Business Improvement Order to Four Non-Life Insurers
------------------------------------------------------------------
Reuters reports that Japan ordered four major non-life insurance
companies to improve business practices in connection with
anti-competitive activity that aimed to keep premiums high, Finance
Minister Shunichi Suzuki said on Dec. 26.
The order was issued to Aioi Nissay Dowa Insurance, Sompo Japan
Insurance, Tokio Marine & Nichido and Mitsui Sumitomo Insurance,
Mr. Suzuki said, Reuters relays.
According to Reuters, the four had been asked to report to the
regulator on whether they engaged in prior consultations with each
other when preparing contracts for clients, domestic media have
reported.
Statements from the four insurers said they take the government
order seriously and will work to restore trust.
"With this order, we urged them to make it clear where management
responsibility lies and to thoroughly revamp management controls,"
Mr. Suzuki told reporters.
He said the four insurers engaged widely in activities that were
incompatible with the spirit of Japan's antitrust law.
"We will demand that each of these companies takes this matter
seriously and seek thorough responses to prevent a recurrence."
=================
S I N G A P O R E
=================
GAKU SUSHI: Commences Wind-Up Proceedings
-----------------------------------------
Members of Gaku Sushi Bar Pte Ltd, on Dec. 22, 2023, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Oon Su Sun
Finova Advisory
c/o 182 Cecil Street
#30-01 Frasers Tower
Singapore 069547
INCLUSION RESOURCES: Creditors' Proofs of Debt Due on Jan. 26
-------------------------------------------------------------
Creditors of Inclusion Resources, Private Limited are required to
file their proofs of debt by Jan. 26, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 21, 2023.
The company's liquidators are:
Paresh Tribhovan Jotangia
Ho May Kee
c/o Grant Thornton Singapore
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
SAKURA FORTE: Commences Wind-Up Proceedings
-------------------------------------------
Members of Sakura Forte Central Kitchen Pte Ltd, on Dec. 22, 2023,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Oon Su Sun
Finova Advisory
c/o 182 Cecil Street
#30-01 Frasers Tower
Singapore 069547
SHANGHAI CHONG: Creditors' Meetings Set for Jan. 18
---------------------------------------------------
Shanghai Chong Kee Furniture & Construction Pte Ltd will hold a
meeting for its creditors on Jan. 18, 2024, at 2:30 p.m. via
audio-visual conference.
Agenda of the meeting includes:
a. to receive a statement of the Company's affairs together
with a list of creditors and the estimated amounts of their
claims;
b. to appoint Liquidators;
c. to appoint a Committee of Inspection if deemed necessary;
and
d. any other business.
Lin Yueh Hung and Yap Hui Li of RSM Singapore were appointed as
Provisional Liquidators of the companies on Dec. 21, 2023.
=====================
S O U T H K O R E A
=====================
TERRAFORM LABS: Heads for Crypto Trial With Jump Trading in Jan.
----------------------------------------------------------------
Bloomberg News reports that Terraform Labs and the US Securities
and Exchange Commission (SEC) will head to trial in January, with
Jump Trading swept up in the mix, after a judge ruled that the
SEC's fraud case against Terraform must be tried by a jury.
According to Bloomberg, US District Judge Jed S. Rakoff ruled in
favor of the regulator on Dec. 28, agreeing that Terraform is
liable for selling unregistered securities, though he threw out
allegations that it had made transactions in unregistered
security-based swaps. The civil trial is set to begin on Jan. 29 in
Manhattan federal court.
The SEC sued Terraform and co-founder Do Kwon in February, alleging
they offered and sold unregistered securities as part of a
fraudulent scheme that wiped out at least US$40 billion in market
value, Bloomberg recalls.
Bloomberg relates that the trial will be a test of the SEC's
aggressive enforcement strategy across the crypto industry. It is
also likely to reveal fresh details of Jump's role as a key trader
of Terraform's algorithmic stablecoin TerraUSD and Luna tokens. The
SEC claims Terraform secretly entered into an arrangement with the
Chicago-based trading firm to prop up TerraUSD a year before it
collapsed.
In his ruling, Judge Rakoff said the SEC's evidence about the
alleged arrangement is "compelling but circumstantial, relying in
large part on the testimony of Jump whistle-blowers whose
credibility the jury will need to determine".
Jump has not been accused of any wrongdoing in the case, Bloomberg
notes.
A Terraform spokesperson said the company strongly disagrees with
the ruling and does not believe that the TerraUSD stablecoin "or
the other tokens at issue are securities".
"Further, the SEC's fraud claims are not supported by evidence, and
we will continue to vigorously defend against those meritless
allegations at trial," the spokesperson said in a statement.
Regulatory civil suits are usually delayed to allow criminal cases
to play out in court first, the report says. But while Kwon has
been indicted on fraud charges in the United States, he is still in
custody in Montenegro, where he was caught travelling with a fake
passport. Kwon is also wanted in his native South Korea.
Bloomberg says Judge Rakoff's ruling cited a sworn declaration by a
former Jump employee turned SEC whistle-blower that a co-founder of
Jump, who was not identified, played a part in the firm's decision
to restore TerraUSD's peg to the US dollar in May 2021. Jump was
founded in 1999 by traders Paul Gurinas and Bill Disomma, who met
in the Deutsche Mark pit at the Chicago Mercantile Exchange.
Bloomberg relates that the whistle-blower heard Jump's co-founder
said "he was willing for Jump to risk about US$200 million to help
restore the peg", according to the document. The whistle-blower
also saw Jump's co-founder direct traders "to adjust the parameters
of the (Jump) trading models to control the price, quantity and
timing of UST orders", referring to TerraUSD.
Days after TerraUSD returned to its US$1 peg, the whistle-blower
recalled hearing Jump's co-founder advising the Jump crypto team to
"not cause another de-peg by selling too quickly".
About Terraform Labs
Based in Seoul, Korea, Terraform Labs Pte. Ltd. operates a
price-stable cryptocurrency. The Company seeks to power the
next-generation payment network and grow the real GDP of the
blockchain economy. Terraform labs provides financial
infrastructure for the next generation of decentralized
application.
=============
V I E T N A M
=============
SHIPBUILDING INDUSTRY: Prepares for Bankruptcy Procedures
---------------------------------------------------------
Vietnam News reports that the Vietnam Government has greenlit a
bankruptcy resolution plan for the Shipbuilding Industry
Corporation (SBIC) and its seven subsidiary companies.
In recent conclusions reached by the Political Bureau, the ongoing
resolution process for SBIC and its subsidiaries involves the
retrieval of assets and property rights of both SBIC and its seven
affiliated companies, all in accordance with prevailing legal
regulations, VNS relates.
According to VNS, the primary objective during the SBIC bankruptcy
is to maximise the recovery of capital and assets while minimising
the reliance on state budgets. Any use of state funds must strictly
adhere to legal provisions, with a focus on reducing financial
losses for the state, related organisations and individuals,
particularly within the shipbuilding and repair sector.
To execute this plan, the government has mandated a thorough
assessment of each entity's current status, prompting the
development of specific action plans, VNS says. For SBIC and its
seven subsidiaries, including shipbuilding companies such as Hạ
Long, Pha Rung, Bạch Dang, Thịnh Long, Cam Ranh, Saigon
Shipbuilding Industry Co Ltd, and Saigon Shipbuilding and Marine
Industry, an urgent review is required. The completion of necessary
documentation and legal procedures for bankruptcy proceedings is
expected by the first quarter of 2024, the report notes.
Regarding Song Cam Shipbuilding JSC, the Government aims to recover
the capital contribution from its parent company, SBIC, VNS
relates. The subsidiary company Bach Dang Shipbuilding, a
one-member limited liability company, will adhere to the bankruptcy
procedures outlined in the law, including regulations related to
the transfer of state capital. The anticipated timeframe for this
process is the second quarter of 2024.
For businesses under the structure of the Vietnam Shipbuilding
Industry Group (Vinashin) that were previously identified as not
remaining in the SBIC structure, but have yet to complete
restructuring, further action is required to recover assets and
property rights during the bankruptcy and capital transfer process.
The expected timeline for implementation is the second quarter of
2024, according to VNS.
VNS relates that the Government has also called for a study to
apply appropriate mechanisms and policies within its jurisdiction
and various ministries. Proposals will be made to the National
Assembly, Supreme People's Court, and Supreme People's Procuracy to
promptly issue guidelines, mechanisms, and policies to address
difficulties and challenges arising in the SBIC and its seven
subsidiaries bankruptcy proceedings.
Additionally, there is an emphasis on reviewing and accurately
assessing the current situation, comprehensively calculating the
assets, finances, and debt obligations of SBIC, VNS states. A plan
will be devised to settle the government's debt obligations at
SBIC. Simultaneously, efforts will be directed towards enhancing
the capabilities of domestic shipbuilding companies, accompanied by
increased information dissemination to garner widespread public
support.
The Government underscores its commitment to safeguarding the
legitimate rights and interests of workers, preventing negative
moral impacts, and avoiding disturbances to political stability and
social order.
*********
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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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