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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
Friday, January 5, 2024, Vol. 27, No. 5
Headlines
A U S T R A L I A
ACCESS TEC: Commences Wind-Up Proceedings
ELERMORE VALE: Commences Wind-Up Proceedings
HIRO BRANDS: Cleaning Brand Collapses Into Administration
JUNCTION GROUP: Creditors' Proofs of Debt Due on Jan. 30
MAINSCARF PTY: First Creditors' Meeting Set for Jan. 15
NEW WILKIE: In Administration; About 300 Jobs at Risk
TOTALLY HEALTHY: Commences Wind-Up Proceedings
WAYWARD BREWING: Placed Into Voluntary Administration
C H I N A
CHINA EVERGRANDE: Main Onshore Unit Discloses $44B in Unpaid Debts
CIFI HOLDINGS: Unveils Restructuring Plan to Halve USD7-Bil. Debt
WM MOTOR: Gets Go-Ahead to Start Restructuring
I N D I A
BARUA POLYMERS: CRISIL Reaffirms B+ Rating on INR14cr Term Loan
BRL LOGISTIC: CRISIL Lowers Rating on INR5.5cr Loan to B+
EASHWARA SAI: CARE Keeps B- Debt Rating in Not Cooperating
ESSIX BIOSCIENCES: CARE Puts B+ Rating on Watch Dev. Implications
GUPTA METAL: CRISIL Lowers Long/Short Term Ratings to D
KAJJEHALLY ESTATE: CARE Keeps C Debt Rating in Not Cooperating
M. S. ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating
M.S. SOLVENT: CARE Keeps C Debt Rating in Not Cooperating Category
MADHYA PRADESH: CARE Reaffirms D Rating on INR41.31cr LT Loan
MAJUMDER AGRO: CRISIL Withdraws B Rating on INR15cr Cash Loan
MANDAKINI PACHIMATLA: CARE Keeps D Debt Rating in Not Cooperating
NICE PROJECTS: CARE Lowers Rating on INR44.00cr ST Loan to D
PATEL PHOSCHEM: CARE Keeps D Debt Rating in Not Cooperating
PAVITHRA CONSTRUCTIONS: CRISIL Withdraws 'D' LT/ST Debt Ratings
POWER ENGINEERING: CRISIL Withdraws 'C' Long/Short Term Ratings
PRAMILA PROJECTS: CARE Lowers Rating on INR13.50cr Loan to B
S.M MUSTHAFA: CARE Keeps B- Debt Rating in Not Cooperating
SANKAR COTTON: CARE Keeps D Debt Rating in Not Cooperating
SEQUENCE REALTY: CRISIL Reaffirms B Rating on INR43cr Term Loan
SHRUTHI MILK: CRISIL Lowers Rating on INR10cr Cash Loan to D
SITARAM GANESHMALL: CRISIL Withdraws B+ Rating on INR5cr Loan
SUPREME EXPORTS: CARE Keeps C Debt Rating in Not Cooperating
T M MOTORS: CARE Keeps B- Debt Rating in Not Cooperating Category
UPASANA JEWELLERS: CRISIL Withdraws B Rating on INR10cr e-DFS
VAMSADHARA GINNING: CARE Keeps D Debt Rating in Not Cooperating
I N D O N E S I A
ZENIUS EDUCATION: Temporarily Halts Operations After 20 Years
S I N G A P O R E
CENTRUM MARITIME: Creditors' Proofs of Debt Due on Jan. 29
FOOD MART: Creditors' Proofs of Debt Due on Jan. 29
FUSIONEX PTE: Court to Hear Wind-Up Petition on Jan. 12
HAVELOCK INTERNATIONAL: Commences Wind-Up Proceedings
LIPPO MALLS: Fitch Cuts IDR to 'C' on Distressed Debt Exchange
ORCHARD AVIATION: Creditors' Proofs of Debt Due on Jan. 30
S O U T H K O R E A
TAEYOUNG ENG'G: Founder Asks Creditors to Allow Debt Restructuring
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A U S T R A L I A
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ACCESS TEC: Commences Wind-Up Proceedings
-----------------------------------------
Members of Access TEC Pty Ltd on Jan. 3, 2024, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidator is:
Brent Kijurina
Hall Chadwick
Level 40, 2 Park Street
Sydney, NSW 2000
ELERMORE VALE: Commences Wind-Up Proceedings
--------------------------------------------
Members of Elermore Vale Newsagent Pty Ltd (Trading name:
NewsXpress Elermore Vale) on Dec. 22, 2023, passed a resolution to
voluntarily wind up the company's operations.
The company's liquidator is:
Clifford John Sanderson
Dissolve Pty Ltd
Level 8, 80 Clarence St
Sydney, NSW 2000
HIRO BRANDS: Cleaning Brand Collapses Into Administration
---------------------------------------------------------
The Sydney Morning Herald reports that Australian shoppers will
soon be unable to buy household cleaning products from Organic
Choice, Trix, Orange Power and Aware Sensitive from Coles and
Woolworths after the cleaning brands' parent company collapsed just
days into the new year.
On January 2, Hiro Brands appointed three KPMG restructuring
partners as administrators who ceased Hiro's operations after
conducting an "urgent assessment of its financial position",
resulting in 120 job losses, SMH relates.
According to the report, KPMG restructuring partners David Hardy,
James Dampney and James Stewart have assumed day-to-day control of
the company and are seeking a buyer for the business.
"Regrettably, following our appointment it became evident the
financial position of the business would not allow the continuation
of trading activities. As a result, we have terminated most
employees' employment arrangements," the report quotes Mr. Hardy as
saying.
"We are urgently seeking buyers for the Hiro Brands Group's assets,
including brands and intellectual property. We will be working with
all stakeholders, including employees, suppliers, and customers, to
maximise the outcome."
The company targets the eco-friendly natural ingredients market and
operates skincare brands Billie Goat, Aus Medic Co, personal care
brands Bodytools, Medi Manager, Chuckies, The Wheat Bag, as well as
cosmetics brands ulta3, MUD and OZK.O Eyewear. Many of Hiro's
products are sold through Chemist Warehouse, TerryWhite and
Priceline.
The company is expected to convene a first creditors meeting on
January 11, the report notes. Before administrators were appointed,
plastic bottle manufacturer Quality Blow Moulders submitted an
application on November 6 for Hiro Brands to be wound up, according
to SMH.
This is not the first time the business has collapsed, SMH says.
The entity, formerly known as Wellness and Beauty Solutions,
operated a network of cosmetics clinics that were hit hard by the
pandemic's lockdowns, sliding into administration in March 2021 and
emerging in December that year.
During that period, external administrator Lawrence Fitzgerald of
insolvency firm William Buck issued just under AUD1.2 million in
payments, including AUD270,988.65 to employees.
The company changed its name to Hiro Brands Group on August 29,
2022, SMH adds.
JUNCTION GROUP: Creditors' Proofs of Debt Due on Jan. 30
--------------------------------------------------------
Creditors of Junction Group Pty Ltd formerly trading as "V Burger"
and "V Burger Bar" are required to file their proofs of debt by
Jan. 30, 2024, to be included in the company's dividend
distribution.
The company's liquidator is:
Shaun William Boyle
Unit 3, 99-101 Francis Street
Northbridge, WA 6003
MAINSCARF PTY: First Creditors' Meeting Set for Jan. 15
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Mainscarf
Pty Ltd (trading name: Hansen Constructions NQ) will be held on
Jan. 15, 2024, at 12:00 p.m. at Townsville RSL Club, 139 Charters
Towers Road, in Hyde Park, QLD.
David Michael Stimpson and Michael Joseph Brennan of SV Partners
were appointed as administrators of the company on Jan. 3, 2024.
NEW WILKIE: In Administration; About 300 Jobs at Risk
-----------------------------------------------------
News.com.au reports that a privately held coal company has fallen
into administration just months after it restarted operations at a
mothballed mine, putting about 300 jobs at risk.
According to news.com.au, BRI Ferrier administrators Andrew
Cummins, Jonathon Keenan, Peter Krejci and Stefan Dopking took
control of New Wilkie Energy on December 27, eight months after the
company resumed thermal coalmining at the Wilkie Creek mine near
Dalby, about 200km west of Brisbane.
It's understood mining operations will continue while the
administrators assess the business, the report says.
New Wilkie bought the mine from US coal behemoth Peabody Energy in
2021, bringing it out of care and maintenance and restarting
production in April 2023.
News.com.au relates that the company said at the time it would
produce about 2.4 million tonnes of coal a year for Asian markets.
Thermal coal is used to generate electricity and New Wilkie's
launch in 2023 coincided with a steady decline in thermal coal
prices following the Ukraine war shock in 2022 that sent prices
soaring to more than US$400 (AUD594) a tonne.
Thermal coal fetched an average of US$360 (AUD535) per tonne across
2022, according to the December 2022 Resources and Energy Quarterly
report.
The energy commodity is currently trading at US$127 (AUD189) a
tonne and the latest REQ report expects prices to drift lower into
2024-25.
New Wilkie inked a five-year contract with rail haulage company
Aurizon in August to ship its coal to port and the company had
planned to run the mine for at least 30 years, recalls
news.com.au.
A first meeting of creditors is booked for January 9.
News.com.au adds that New Wilkie also holds the Corvus Coal
metallurgical coal project near Emerald in central Queensland that
it says could produce up to 4.5 million tonnes of coking coal, or
coal used in the steelmaking process, and one million tonnes of
thermal coal per annum over a 20 to 30 year lifespan.
"The project requires further geological and environmental work to
facilitate both a bankable feasibility study and the necessary
approvals to commence mining operations," the company states.
Alongside coal, the company held ambitions to develop solar and
wind energy projects in Queensland.
TOTALLY HEALTHY: Commences Wind-Up Proceedings
----------------------------------------------
Members of Totally Healthy Pty Ltd (Trading name: Delicia Acai
O'Halloran Hill) on Jan. 4, 2024, passed a resolution to
voluntarily wind up the company's operations.
The company's liquidators are:
Stuart Otway
Alan Scott
SV Partners
Level 4, 12 Pirie Street
SA 5000
WAYWARD BREWING: Placed Into Voluntary Administration
-----------------------------------------------------
News.com.au reports that Wayward Brewing is in administration with
AUD2 million of debt and its founder has warned it's unlikely to be
the last craft brewer to hit financial trouble.
Peter Philip, who founded the Wayward brand in 2012, put the
business into voluntary administration on January 2, news.com.au
discloses.
It owes around AUD2 million in debts to trade creditors, statutory
creditors such as the Australian Taxation Office, and to
shareholders who have loaned money to the ailing business.
News.com.au relates that the brewery, which is based in the Sydney
inner-west suburb of Camperdown, is continuing to trade under
administrator Atle Crowe-Maxwell from DBA Reconstruction &
Advisory.
Mr. Crowe-Maxwell told news.com.au that the business was struggling
under the weight of cost of living pressures and the high levels of
government excise imposed on beer.
"This whole industry has just been smashed by excise," he said of
the government tax which accounts for up to a third of the cost of
beer.
He added that while government financial relief during Covid had
provided some breathing space, subsequent cost of living pressures
being felt by consumers had hurt the business, news.com.au relays.
"People are drinking Carlton not craft beer and eating at home or
Maccas not at craft breweries," the report quotes Mr. Crowe-Maxwell
as saying.
Wayward, which employs 15 full time staff members as well as a
number of casuals, opened its brewery and taproom in 2015.
The venue serves meals, hosts live music and trivia and runs
brewery tours.
According to news.com.au, Mr. Philip told The Australian that the
conditions that were affecting smaller independent brewers were a
"perfect storm" and that "consumers are not supporting us to the
extent that we need."
He said input costs had gone up 25 to 30 per cent in the past two
years, with transport up 50 per cent and electricity up 70 per
cent.
A number of craft brewers fell into administration in 2023 and Mr.
Philip, a former chairman of the Independent Brewers Association,
warned that Wayward "won't be the last," the report relays.
News.com.au relates that Mr. Crowe-Maxwell said he will seek to
restructure the business and a Deed of Company Arrangement proposal
was likely to be put forward outlining a financial return to
creditors and a way for the business to trade out of
administration.
A first meeting of creditors is scheduled for January 10, with a
second meeting, where the fate of the business will be decided, to
be held later in January.
Wayward's sister company and distribution arm Local Drinks
Collective is also in administration, news.com.au adds.
Local Drinks Collective was co-founded by fellow craft brewer Batch
Brewing Co, which is not involved in the voluntary administration
process.
The current financial situation is a substantial decline for
Wayward, with Mr. Philip telling a brewing industry publication he
was looking at a future initial public offering (IPO) – or
stockmarket listing – for the business in 2022.
"Our intention is that we would like to move to an IPO in the next
two to three years," the report quotes Mr. Philip as saying at the
time. "We've got some big growth plans over the next couple of
years - we have our sights set on being a top-10 Australian
brewery."
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C H I N A
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CHINA EVERGRANDE: Main Onshore Unit Discloses $44B in Unpaid Debts
------------------------------------------------------------------
Mingtiandi reports that the primary mainland unit of China
Evergrande has reported more than CNY316 billion (US$44.3 billion)
in unpaid due debts, as 2023 drew to a close without completion of
a restructuring deal for the world's most leveraged developer.
The unit, Hengda Real Estate, also disclosed CNY205.5 billion in
overdue commercial bills and 2,053 pending litigation cases
involving a total amount of CNY490 billion, Mingtiandi relates
citing a filing with the Hong Kong stock exchange.
The figures are current up to the end of November, a month that saw
101 new enforcement cases against Hengda involving a total amount
of CNY13 billion, plus 54 new cases in which equity interests in
subsidiaries and investee companies held by Hengda were frozen.
In addition, Hengda had completed the disposal of 80 real estate
projects as of the end of November, Evergrande said in the filing.
According to Mingtiandi, the group chaired by Xu Jiayin also issued
an update on Jan. 1 confirming that a deal which would see
Dubai-headquartered NWTN (pronounced "Newton") subscribe to shares
of electric car division Evergrande NEV had lapsed at the end of
2023.
The parties to the share subscription and loan conversion deals
with NWTN, led by Chinese businessman Alan Wu, failed to reach an
agreement to extend the long stop dates, which expired on December
31, Mingtiandi relays.
Last August, China Evergrande announced plans to sell a 27.5
percent stake in Evergrande NEV to NASDAQ-listed NWTN for $500
million, recalls Mingtiandi. Under the terms of the agreement, the
UAE-based car maker would have gained the right to nominate a
majority of Evergrande NEV's board of directors.
Mingtiandi adds that the transaction was expected to close in the
fourth quarter, contingent on the progress of the parent company's
ongoing debt restructuring and the confirmation of a debt repayment
plan by "a certain creditor" of Evergrande NEV, as well as
regulatory and shareholder approvals.
About China Evergrande
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
China Evergrande Group, the second largest real estate developer in
China, and certain of its affiliates sought creditor protection in
the United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-11332) on Aug. 17, 2023.
Evergrande, widely known as the most leveraged company in the
world, and its affiliates are asking the U.S. Bankruptcy Court for
the Southern District of New York for recognition of foreign
proceedings as "foreign main" proceeding under Chapter 15.
Evergrande is in the midst of a highly complex restructuring of
around $20 billion in offshore debt. In total, the Company has
more than $300 billion in liabilities.
Evergrande is incorporated in the Cayman Islands as an exempted
company with limited liability, with its principal place of
business located at 15th Floor, YF Life Centre, 38 Gloucester Road,
Wanchai, Hong Kong. It is subject to a restructuring proceeding
entitled In the Matter of China Evergrande Group, concerning a
scheme of arrangement between Evergrande and certain Scheme
Creditors pursuant to the relevant provisions of the Hong Kong
Companies Ordinance (Chapter 622 of the Laws of Hong Kong),
currently pending before the High Court of Hong Kong (Case Number
HCMP 1091/2023.
Affiliate Tianji Holding Limited is incorporated in Hong Kong as a
limited liability company, with its principal place of business
located at 17th Floor, One Island East, Taikoo Place, 18 Westlands
Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring
proceeding entitled In the Matter of Tianji Holding Limited,
concerning a scheme of arrangement between Tianji and certain
Scheme Creditors, pursuant to the relevant provisions of the Hong
Kong Companies Ordinance and currently pending before the Hong Kong
Court (Case Number HCMP 1090/2023).
Affiliate Scenery Journey Limited is incorporated in the British
Virgin Islands as a limited liability company, with its principal
place of business located at 2nd Floor Water's Edge Building,
Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is
subject to a restructuring proceeding entitled In the Matter of
Scenery Journey Limited, concerning a scheme of arrangement between
Scenery Journey and certain Scheme Creditors, pursuant to section
179A of the BVI Business Companies Act, 2004, and currently pending
before the High Court of the Eastern Caribbean Supreme Court (Case
Number BVIHCOM 2023/0076).
U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15
proceedings.
Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji.
Maples BVI is the British Virgin Island Counsel to Scenery
Journey.
CIFI HOLDINGS: Unveils Restructuring Plan to Halve USD7-Bil. Debt
-----------------------------------------------------------------
Yicai Global reports that CIFI Holdings Group has released a
preliminary proposal for a restructuring plan that would about
halve the struggling Chinese real estate developer's USD7 billion
overseas debt.
Creditors can convert their debts into new bonds with terms of two
to nine years and nominal interest rates of 2 percent to 4 percent
to expand debt maturities and cut debt principals, the
Shanghai-based developer said in a filing to the Hong Kong Stock
Exchange on Jan. 3, Yicai relays. The plan would cut CIFI's
overseas debt to between USD3.3 billion and USD4 billion.
Yicai relates that the new bonds, which will all have the same
guaranteed portfolio to ensure credit enhancement, will be linked
to future contract sales and have a deferral mechanism, CIFI noted,
adding that the deferred interest rates will be paid to creditors
in a lump sum or after the last installment.
CIFI has CNY19.2 billion (USD2.7 billion) cash and CNY45.6 billion
property investment, the filing showed. Yicai says the firm can
earn CNY12 billion to CNY14 billion in liquidity by selling some
properties and overseas assets, raising its cash flows that can be
used to repay overseas debts to between CNY30 billion and CNY35
billion.
CIFI's revenue rose 5.4 percent to CNY31.3 billion in the first
half of last year from a year earlier. It turned CNY1.9 billion
(USD267.3 million) net profit into CNY9.1 billion net loss in the
period, Yicai discloses.
Last year, CIFI delivered 118,000 properties, a new record since it
was established in 2000. The company expects to deliver 80,000
properties with a construction and installation cost of over CNY30
billion this year.
Yicai says CIFI extended the maturities of four domestic debts
worth a total of CNY7.2 billion last year, after starting overseas
debt restructuring efforts in November 2022.
About CIFI Holdings
CIFI Holdings (Group) Co. Ltd. is an investment holding company
principally engaged in property businesses. The Company mainly
operates through three segments. Property Development segment is
engaged in the development and sales of office properties,
commercial properties and residential properties in China. Property
Investment segment is engaged in the leasing of investment
properties developed or purchased by the Company for the rental
income and the appreciation of the properties' values. Property
Management, Project Management and Other Property Related Services
segment is engaged in property management and project management in
China.
As reported in the Troubled Company Reporter-Asia Pacific, in
October 2022, Fitch Ratings has downgraded China-based property
developer CIFI Holdings (Group) Co. Ltd.'s Long-Term Foreign- and
Local-Currency Issuer Default Ratings to 'CC' from 'BB-'. Fitch has
also downgraded CIFI's senior unsecured rating and the ratings on
the outstanding notes to 'CC' with a Recovery Rating of 'RR4', from
'BB-'. All the ratings have been removed from Rating Watch
Negative.
The downgrade reflects CIFI's rising liquidity risks, amid market
reports that it failed to make an interest payment for its
convertible bonds (maturing April 8, 2025) that was due in early
October, and that it was also seeking to delay certain principal
and interest payment for other financial obligations.
The TCR-AP also reported on Oct. 19, 2022, that Moody's Investors
Service has downgraded CIFI Holdings (Group) Co. Ltd.'s corporate
family rating to Ca from B3 and senior unsecured rating to C from
Caa1. The outlook remains negative.
WM MOTOR: Gets Go-Ahead to Start Restructuring
----------------------------------------------
Yicai Global reports that WM Motor, a struggling Chinese electric
vehicle startup, has made progress in getting its restructuring
started to bring in investors to continue operations.
Yicai relates that the pre-restructuring application, filed in
October, was approved by a court in Shanghai, the Shanghai-based
firm announced on Weibo Jan. 3. WM has completed audit evaluation,
debt declaration, and asset verification. It has approached several
potential investors while achieving preliminary results, it noted.
After multiple evaluations, prospective investors generally believe
that even though WM Motor is currently facing a liquidity crisis,
it has value and potential in terms of product technology,
industrial chain, market operation, and manufacturing so
reorganization is feasible, the firm said, Yicai relays.
Founded in 2015, WM was one of the first new energy vehicle
startups in China to achieve mass production, Yicai notes. However,
since the second half of 2022, it has had trouble with liquidity
due to sluggish sales so production stopped.
A potential acquisition seems to have fallen through as no further
news came out after Kaixin Auto Holdings, a used car dealer,
announced in September that it had signed a non-binding acquisition
agreement with WM to acquire all of its shares by issuing new
equity, Yicai notes.
WM tried several times to ease its financial pressures by going
public. According to a prospectus, WM's cumulative losses from 2019
to 2021 were as high as CNY17.4 billion (USD2.4 billion), Yicai
discloses.
About WM Motor
Shanghai-based WM Motor is an automotive company that designs,
manufactures, develops, and markets battery-operated electric
vehicles.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
12, 2023, WM Motor has filed for bankruptcy, marking the demise of
a promising standout among China's EV makers as price competition
in the world's largest auto market heats up.
A court in Shanghai is handling the bankruptcy case, according to a
filing dated on Oct. 9 on the national enterprise bankruptcy
information disclosure platform, Reuters said.
According to Reuters, the carmaker said it has been mired in an
operational dilemma in recent years due to the pandemic's impact,
capital market sluggishness, large price swings in raw materials
and setbacks in gaining capital needed for operations and
development.
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I N D I A
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BARUA POLYMERS: CRISIL Reaffirms B+ Rating on INR14cr Term Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long term bank
facilities of Barua Polymers Private Limited (BPPL) at 'CRISIL
B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 14 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect exposure to Susceptibility of
operating margin to volatility in raw material prices and leveraged
capital structure. These weaknesses are partially offset by
extensive industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility of operating margin to volatility in raw material
prices: Cost of production and profit margin are heavily dependent
on raw material prices. On account of variation in raw material
prices, operating margin has also been volatile. CRISIL believes
operating profitability would remain susceptible to volatility in
raw material prices over the medium term
* Leveraged capital structure: BPPL have an average financial risk
profile with high gearing and moderate debt protection metrics. The
project is aggressively funded through a debt equity ratio of 1.71
times
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of around 3 decades in processing plastic scrap,
manufacturing plastic molded items and other diversified
businesses. This has given them an understanding of the dynamics of
the market and enabled them to establish relationships with
suppliers and customer.
Liquidity: Stretched
Bank limit utilisation is moderate around 86% percent for the month
of October 23, before which no bank lines were availed. Cash
accruals are expected to be in the range of INR1.5-3 crore which
are sufficient against term debt obligation of INR1.3-2 crores over
the medium term. In addition, it will be act as cushion to the
liquidity of the company.
Outlook: Stable
CRISIL Ratings believes that BPPL will benefit from its promoter
extensive industry experience.
Rating Sensitivity factors
Upward factors
* Stabilization of operations at its plant reports significant
revenue and profitability with accruals of more than INR1.5 crore
over the medium term.
* Improvement in financial risk profile resulting in stronger
capital structure.
Downward factors
* Faces a considerable delay in the commencement of its operations
yielding net cash accrual to repayment obligation below 1 time.
* Significantly low revenue and operating margin.
BPPL is setting up unit for manufacturing plastic products such as
bins, nursery planters and pots, etc in the Industrial Estate at
Nathkuchi district, Assam. The company was incorporated on 9th
October 2021. The entity is owned and promoted by members of Barua
family.
BRL LOGISTIC: CRISIL Lowers Rating on INR5.5cr Loan to B+
---------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
BRL Logistic Private Limited (BLPL) to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 3.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Fund- 5.5 CRISIL B+/Stable (Downgraded
Based Bank Limits from 'CRISIL BB-/Stable')
The rating downgrade reflects the impact on the financial risk
profile with net cash accruals being insufficient to meet the term
debt repayment obligations over the medium term. The rating also
reflects the modest scale of operations and susceptibility to
economic downturns, and moderately working capital-intensive
operations. These weaknesses are partially offset by the extensive
experience of its promoters in the transport business.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Revenue is subdued at INR44.28 crore
in fiscal 2023 (through, increased from INR41.62 crore in fiscal
2022) because of intense competition in the transportation
industry. The business risk profile remains susceptible to economic
downturns, though the risk is mitigated by a diverse customer base
across different sectors. Nevertheless, a subdued economic scenario
can adversely affect scale and working capital cycle.
* Moderately working capital intensive operations: Operations of
company are moderately working capital intensive with gross current
assets of 97 days in FY23, because of receivables of 76 days. Over
the medium term, GCA days are expected to remain in the range of
90-100 days.
Strength:
* Extensive experience of the promoters: The presence of over two
decades in the transportation industry has enabled the promoters to
understand market dynamics and establish healthy relationships with
suppliers and customers.
Liquidity: Stretched
Bank limit utilization is moderate at around 59.48 percent for the
past twelve months ending October 2023. Cash accruals are expected
to be over INR1.5 crores, which are expected to be insufficient the
against term debt obligation of INR2-INR2.25 crores over the medium
term.
Current ratios are healthy at 2.89 times on March 31, 2023.
Moderate cash and bank balance of around INR1.14 crores as on March
31, 2023
Outlook: Stable
CRISIL Ratings believes BLPL will derive benefit from its
promoters' extensive experience and their steady funding support
and an average financial risk profile.
Rating Sensitivity Factors
Upward factors
* Cash accrual of over INR2.5 crore on a sustainable basis.
* Improvement in financial risk profile.
Downward factors
* Sharp decline in operating margin or further weakening of capital
structure.
* Stretch in working capital cycle with gross current assets
increasing to 180 days.
Incorporated in December 2011 and promoted by Mr Ranjeetsingh
Bhagwanaram Chaudhary and Mrs Manju Ranjeetsingh Chaudhary,
Ahmedabad (Gujarat)-based BLPL provides logistics services.
EASHWARA SAI: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Eashwara
Sai Cotton Industries (ESCI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.24 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 21,
2022, placed the rating(s) of ESCI under the 'issuer
non-cooperating' category as ESCI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. ESCI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated November 6, 2023, November 16, 2023, November
26, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of ESCI have been
revised on account of non-availability of requisite information.
Eashwara Sai Cotton Industries (ESCI) was established in 2014 as a
partnership firm and promoted by Mr Aakula Umapathi and his family
members. The firm is engaged in manufacturing of cotton lint and
seeds. The manufacturing unit is spread in total area of 2 acres
located at Pidiched, Siddipet District (Telangana). ESCI purchases
raw cotton from local farmers located in and around of Pidiched,
Siddipet District. The firm sells the cotton lint and seeds to the
customers of Telangana, Andhra Pradesh and Tamil Nadu.
ESSIX BIOSCIENCES: CARE Puts B+ Rating on Watch Dev. Implications
-----------------------------------------------------------------
CARE has placed the ratings assigned to Essix Biosciences Limited
(EBL) on 'Rating watch with developing implications' on account of
announcement of slump sale of intermediate Active Pharmaceutical
Ingredients (API) of EBL along with business of group company
Ind-Swift Laboratories Limited (ISLL) to Synthimed Labs, a
portfolio company of India Resurgence Fund, as well as the possible
impact of the same on the credit risk profile of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.33 CARE B+ (RWD) Placed on Rating
Facilities Watch with Developing
Implications
Short Term Bank 7.00 CARE A4 (RWD) Placed on Rating
Facilities Watch with Developing
Implications
Under this business transfer, EBL will transfer the Intermediate
manufacturing unit to Synthimed Labs Private Limited (Buyer) under
Slump Sale basis.
CARE will continue to monitor the developments in this regard and
will take a view on the ratings once the exact implications of the
above on the credit risk profile of the company are clear.
Rationale and key rating drivers
The ratings assigned to the bank facilities of Essix Biosciences
Limited (EBL) continue to remain constrained due to small scale of
operations coupled with low profitability margins, customer
concentration risk and susceptibility to raw material prices
fluctuations along-with foreign exchange fluctuations. The ratings
further remain constrained by the inherent regulatory risk and high
leverage and substantial investment in the group companies. The
rating however derives comfort from experienced promoters, approved
manufacturing facilities and diversified product profile.
Rating sensitivities: Factors likely to lead to rating actions.
Positive factors
* Steady scale up of operations to ~INR80 Cr. with increased
profits reported at the net level.
* Improvement in the solvency position with gearing less than 2x
Negative factors
* Any significant decline in income or in the PBILDT margins to
below ~5%
* Any significant fund diversion to the group entities/related
parties or significant write-offs of existing advances/investments
Analytical approach: Standalone
Outlook: Not Applicable
Detailed description of the key rating drivers:
Key weaknesses
* Small scale of operations with low profitability margin: The
total operating income of the company has slightly declined in FY23
to INR52.73 crores as compared to INR62.86 crores
during FY22 and during H1FY24 the company has recorded total
operating income of INR~35 crores. The small scale of operation is
mainly due to high dependence on single customer being group
company Ind-Swift Laboratories Limited and high-capacity
utilization which leaves the company with no major scope of
increase in total operating income. Since company derives almost
entire revenue from its group concern ISLL, the profitability of
the company remains low as reflected by PBILDT and PAT margin of
7.51% and 0.42% respectively during FY23 which is slightly improved
from 5.61% and -1.33% during FY22. Thus, company has booked gross
cash accruals (GCA) of INR2.35 crores during FY23 as compared loss
of INR1.65 crores during FY22.
* Customer concentration risk: EBL derives almost its entire income
from the sales to ISLL and job work done for it. Furthermore, it
derived most of the remaining income from sales to its other group
concern ISL. Almost entire revenue of the company is therefore
being derived from sales to its group concern. This exposes EBL to
customer concentration risk. However, the risk is mitigated to some
extent, as the operations of the group are integrated with EBL
carrying out job-work and supplying its products primarily to ISLL
which are further processed by ISLL to manufacture additional
products. A part of the sales is made to ISL for manufacturing of
drug formulations.
* Susceptibility to raw material prices fluctuations along-with
foreign exchange fluctuations: The company is susceptible to the
fluctuations in raw material prices. The EBL's raw material
includes chemicals mainly and the raw material costs constituted
~73% of the total income in FY23. Fluctuations in raw material
prices are not always passed on to its customers (ISLL and ISL),
which themselves are operating in a very competitive pharma
industry. Thus, the profitability margins of EBL remain exposed to
any adverse fluctuation in raw material prices.
* High leverage due to investment in group companies: The company
has high leverage at the end of FY23 as reflected by overall
gearing of 2.72x as on March 31, 2023, which is slightly
improved from 2.86x as on March 31,2022. However, as on December
20,2023, company has repaid majority of its external debt and cash
credit limit is expected to be repaid by January 2024 whereas GECL
is expected to be repaid by June 2024. The company has quoted
investment of INR144.79 Crores and unquoted investment of INR28.40
Crores as on March 31, 2023, which stands in similar line as
compared to preceding financial year.
* Regulatory risk: Pharmaceutical industry is a closely monitored
and regulated industry and as such there are inherent risks and
liabilities associated with the products and their manufacturing.
Regular compliance with product and manufacturing quality standards
of regulatory authorities is critical for selling products across
various geographies. Furthermore, issues like price control of
essential medicines by the Government of India through the Drug
(Prices Control) Order, 2013, pose regulatory risk to the
pharmaceutical industry.
Key strengths
* Experienced promoters: EBL has been engaged in the manufacturing
of pharmaceutical products for more than two decades now. The
company is operating with Mr. Navrattan Munjal as its Managing
Director having an overall experience of over three decades. He is
also the main promoters of the other group concerns of the company
viz. ISL, which is engaged in the manufacturing of pharmaceutical
formulations and ISLL which is engaged in manufacturing of APIs.
Other directors of the company also hold an experience ranging from
5-30 years in the pharmaceutical industry. The directors are
involved in the day-to-day operations of the company and are also
supported by a highly qualified and experienced team for various
domains.
* Approved manufacturing facilities and vast product profile albeit
concentration risk: EBL is an ISO 9001:2008 certified company. The
labs of the company are also accredited by the National
Accreditation Board for Testing and Calibration Laboratories (NABL)
and complying with the GLP (Good Laboratory Practices) norms. EBL
is engaged in the manufacturing of a wide variety of products like
side chain compounds which diversify its product profile. The
company manufactures more than 10 products which find application
in a varied range of therapeutic segments like cardiovascular
treatment, anti-inflammatory drugs, blood pressure inhibitors,
antibiotics, antihistamines etc. EBL derives almost its entire
income from the sales to ISLL and job work done for it.
Liquidity: Adequate
Company has already repaid its majority of external debt, cash
credit is reducing monthly by INR0.25 crores which is expected to
be repaid by January 2024, Non-fund-based limits are also closed
whereas company is currently availing GECL of INR1.13 crores as at
December 2022 which is expected to be closed by June 2024.
Originally incorporated in 1993 as 'Essix Financial Services Ltd',
the company was subsequently rechristened as 'Essix Biosciences
Ltd' (EBL) in 2004. EBL is currently operating with Mr. N.R. Munjal
as its Managing Director, who is also the main promoters of the
IND-Swift group engaged primarily in the pharmaceutical industry.
Group concerns of the company engaged in the
pharmaceutical industry include IND-Swift Limited (ISL), IND-Swift
Laboratories Ltd [ISLL; rated 'CARE BB; Stable/ CARE A4' dated
November 8,2022], Halycon Life Sciences Private Limited (HLSPL)
etc. Other entities of the group include Fortune India
Constructions Limited (FICL), Swift Fundamental Research &
Education Society etc., engaged in diverse industries.
GUPTA METAL: CRISIL Lowers Long/Short Term Ratings to D
-------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities of
Gupta Metal Sheets Ltd (GMSL) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Downgraded from
'CRISIL B+/Stable')
Short Term Rating - CRISIL D (Downgraded from
'CRISIL A4')
The downgrade in ratings reflects instances of delays in repayment
of term debt obligations for month of September 2023 as a result of
poor liquidity.
The ratings reflect the delays in reservicing debt obligations for
term loan, susceptibility operating margin to fluctuations in raw
material prices and weak financial profile. These weaknesses are
partially offset by the company's established market position,
supported by extensive experience of the promoters in the metals
industry and diversified end-user base.
Analytical Approach
Unsecured loans of INR21.7 crore from directors, friends and family
members of promoters have been treated as 75% equity and 25% debt
as the loans are subordinated to external debt and will remain in
the system over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Instances of delays in reservicing debt obligations for term
loan: The firm has had delays in reservicing its term debt
obligations in the month of September 2023 as a result of poor
liquidity.
* Susceptibility of operating margin to fluctuations in raw
material prices: Profitability is susceptible to volatility in
metal markets globally and to raw material price fluctuations.
Though production is backed by orders, large inventory holding may
lead to price risk. The company reported an operating loss of 0.21%
in fiscal 2023 on account of fluctuations in raw material prices.
* Weak financial profile: GMSL has weak financial profile, as
indicated by gearing of 3.12 times and total outside liabilities to
adjusted networth (TOL/ANW) ratio of 4.39 times as on March 31,
2023. GMSL's debt protection metrics have also been weak due to
high gearing and negative accrual from operations. The interest
coverage and net cash accrual to total debt ratios are negative
0.07 time and negative 0.01 time, respectively as on March 31,
2023. The debt protection metrics are expected to remain at similar
levels with high debt and low profitability.
Strengths:
* Established market position supported by the extensive industry
experience of the promoters: The promoters have experience of over
four decades in the metal industry. This has given them a strong
understanding of the market dynamics and enabled them to establish
healthy relationships with suppliers and customers, leading to
repeat orders from major customers. The company's operating income
has grown to INR448.9 crore in fiscal 2023 compared to INR429.1
crore in fiscal 2022. Till 30, September, 2023 the company has
achieved revenue of INR225 crore.
* Diversified end-user base: GMSL has longstanding relationships
with its customers and suppliers. It caters to a diversified
end-user base which includes mines, automobile manufacturers,
electric goods manufacturers and the defence sector. This helps in
mitigating risk of slowdown in a particular industry and achieving
higher growth.
Liquidity: Poor
The firm has instances of delays in repayment of long-term debt
repayment obligations for month of September 2023 as well as
instances in previous months. Bank limits of INR75 crore were fully
utilized in the past 12 months through November 2023.
Rating Sensitivity factors
Upward factor
* Timely honouring of debt obligations for continuous 3 months.
* Sustained improvement in scale of operations and sustenance of
operating margin, leading to higher-than-expected net cash
accruals.
GMSL was initially established as a partnership firm named Gupta
Enterprises in 1988. It was reconstituted as a public limited
company under the present name in April 2011. It manufactures
non-ferrous rolled semis, mainly copper-based alloys, strips and
sheets. The company's manufacturing facility is in Rewari, Haryana,
with total installed capacity of 15,000 metric tonne per annum.
GMSL is owned and managed by Mr Radhey Shyam Gupta and his
brothers, Mr Vijay Kumar Gupta, Mr Ravi Shanker Gupta and Mr Ripu
Daman Gupta.
KAJJEHALLY ESTATE: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kajjehally
Estate (KE) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 23,
2022, placed the rating(s) of KE under the 'issuer non-cooperating'
category as KE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. KE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 9, 2023, October 19, 2023, October 29, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Kajjehally Estate (KE), a proprietorship entity, was established in
2007 by Mr. S. Vasudevan of Bangalore. Since inception, the entity
has been engaged in cultivation of plants like coffee, pepper,
cardamom, orange, vanilla, areca, timber, silver oak etc. at its
estate situated at 20Kms from Mudigere of Chikmagalur district in
Karnataka. The aggregate area available for cultivation is
350acres; of which, the present area under cultivation is 330
acres. The day-to-day affairs of the entity are looked after by Mr.
S. Vasudevan with adequate support from her wife Mrs. Priya
Vasudevan.
M. S. ENGINEERING: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of M. S.
Engineering (MSE) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.48 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 24,
2022, placed the rating(s) of MSE under the 'issuer
non-cooperating' category as MSE had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. MSE
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 10, 2023, October 20, 2023, October 30,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M. S. Engineering (MSE) was established on November 30, 1986 as a
partnership firm by two partners Mr. Debabrata Das and Mr.
Satyabrata Das. The registered office of the firm is situated at
Purba Medinipur, West Bengal. Since its inception, the firm has
been engaged in civil construction business in the segments like
construction of road, bridges etc. The firm procures orders
through tenders and executes orders floated by the various Govt.
entities.
M.S. SOLVENT: CARE Keeps C Debt Rating in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of M.S.
Solvent Industries (MSI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 30,
2022, placed the rating(s) of MSI under the 'issuer
non-cooperating' category as MSI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. MSI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 16, 2023, October 26, 2023, November 5,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M.S. Solvent Industries is a partnership firm established in July
2009 by four partners, namely, Mr. Mahendra Singh, Mr. Anil Kumar,
Mr. Harish Kumar and Mr. Daleep Singh sharing profits and losses
equally. The firm is engaged in extraction of rice bran oil at its
processing facility located in Gadarpur (Uttarakhand). The firm has
started an additional rice mill unit in November,
2016 that has enabled the firm to extract rice bran oil through
milling. Here the rice bran oil will be extracted from paddy.
MADHYA PRADESH: CARE Reaffirms D Rating on INR41.31cr LT Loan
-------------------------------------------------------------
CARE Ratings has reaffirmed the ratings on certain bank facilities
of Madhya Pradesh Financial Corporation (MPFC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank
Facilities 3.97 CARE C; Stable Reaffirmed
Long-term bank
Facilities 41.31 CARE D Reaffirmed
Redeemable
non-convertible
unsecured
taxable bonds 40.00 CARE C; Stable Reaffirmed
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) has reaffirmed the ratings to
the bank facilities and instruments of MPFC. The rating of MPFC is
based on its standalone credit assessment and considers the ongoing
delays in debt servicing of term loan principal and interest by
MPFC, as informed by the company. CARE Ratings notes that the
company has been regular in its debt repayments on the
non-convertible debenture (NCD).
The bank facilities and non-convertible debentures of MPFC have
unconditional and irrevocable guarantees extended by the Government
of Madhya Pradesh (GoMP) for ensuring the timely debt servicing of
these facilities. However, the aforementioned structure is weak and
not being adhered to, with the guarantees not getting invoked.
The rating continues to remain constrained due to decline in loan
book, with the corporation not sanctioning loans, coupled with weak
profitability and asset quality profile. However, CARE Rating notes
that MPFC has been paying off its liabilities through recoveries
from NPA.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors - Factors that could, individually or
collectively, lead to positive rating action/upgrade:
* Improvement in liquidity profile of the company
* Improvement in asset quality
* Repayment of dues
* Sustained growth in AUM
Negative factors - Factors that could individually or collectively
lead to negative rating action/downgrade:
* Delay in repayment of NCD
Analytical approach: Standalone
Outlook: Stable
CARE Ratings notes that MPFC has been making timely repayments on
its bonds and paying off its liabilities through recoveries from
NPA.
Detailed description of the key rating drivers:
Key weaknesses
* Decline in loan book: The corporation has not sanctioned any
fresh loans in the last two fiscals. The loan book of Madhya
Pradesh Financial Corporation (MPFC) has declined by 24% y-o-y to
INR398.8 crore as on March 31, 2023, as against INR523.8 crore as
on March 31, 2022. CARE Ratings notes that, the corporation is
utilising its recoveries from NPA to repay all its liabilities.
* Accumulated Losses: The performance of MPFC has gradually
weakened, with sustained deterioration in the asset quality of its
loan portfolio, resulting in delay in recoveries, adversely
impacting the liquidity of the corporation along with worsening
negative returns on total assets (ROTA).
MPFC has reported a loss of INR22.9 crore as on March 31, 2023, as
compared to a loss of INR49.3 crore as on March 31, 2022.
Furthermore, as on June 30, 2023, the corporation reported a loss
of INR5.4 crore. In FY23, the total income declined by 13% y-o-y to
INR54.4 crore from INR62.4 crore in FY22, largely on account of
degrowth in loan book. The operating expenses on an average of
total assets (opex) remained range bound at 2.5% in FY23 [PY:
3.1%], and NIM at 2.4%[PY:3.1%]. The credit costs reduced to 5.7%
in FY23 as against 8.2% in FY22. With this the ROTA stood at a
negative 3.3% [PY: -8.2%].
In Q1FY24, MPFC has reported losses of INR5.4 crore. In Q1FY24,
With NIMs of 0.2%, and operating expenses on an average total
assets (opex) of 4.7%, the ROTA stood at a negative 6.1%.
* Negative gearing: The overall gearing (on adjusted net worth)
stood at -1.7x as on March 31, 2023 from -2.5x as on March 31,
2022, largely on account of reduction in the borrowing base.
* Poor Asset Quality: The company continues to report high GNPA and
NNPA of 93% and 77%, respectively, as on March 31, 2023, as against
85% and 73%, respectively, as on March 31, 2022, on account of
reduction in loan book coupled with fresh slippages. In FY23 the
corporation has made a total recovery of INR147 crores from NPA.
Going forward, CARE Ratings expects further recoveries
from NPA.
Key strengths
* Backed by Government of Madhya Pradesh: The bond issues and bank
facilities of MPFC are backed by unconditional & irrevocable
guarantee by GoMP supported by structured payment mechanism.
However, the guarantee given by GoMP has not been invoked by the
lenders.
* Reduced borrowings: As on March 31, 2023, the borrowings of MPFC
stood at INR314 crore as against INR457 crore as on March 31, 2022.
Going forward, the management plans on repaying its liabilities by
FY25, through recoveries from NPA. As on June 30, 2023, the total
borrowings of MPFC stood at INR292 crore.
Liquidity: Poor
MPFC has liquidity of INR8.64 crore in form of cash of INR0.01
crore, bank balance of INR8.63 crore. As on June 30, 2023, MPFC has
reported cash and bank balance of INR2.63 crore.
MPFC was incorporated in 1955 under the State Financial
Corporations Act, 1951. It is a state-level financial corporation
providing long-term and medium-term, fund-based and non-fund-based
financial assistance to industrial, infrastructural and social
sector organizations in Madhya Pradesh with focus on small and
medium-sized industries. It has its headquarters at Indore – the
industrial hub of the state and has a network of nine branches and
seven business development centers. MPFC is headed by the board of
directors, which includes senior bureaucrats, nominees of the Small
Industries Development Bank of India (SIDBI), the Housing and Urban
Development Corporation (HUDCO), and the Life Insurance Corporation
(LIC), financial experts and banking
professionals. The performance of MPFC has gradually weakened, with
sustained deterioration in the asset quality of its loan portfolio,
resulting in delay in recoveries, adversely impacting the liquidity
of the corporation along with worsening negative returns on total
assets (ROTA).
MAJUMDER AGRO: CRISIL Withdraws B Rating on INR15cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Majumder Agro Industries Private Limited (MAIPL) on the request of
the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B/Stable/Issuer Not
Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with MAIPL for
obtaining information through letters and emails dated June 15,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MAIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MAIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
MAIPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2010, MAIPL mills and processes par-boiled rice
with an installed capacity of 16 tonnes per day. Mr Nitya Majumder,
Mr Argha Deep Majumdar, and Mr Rupali Majumdar are the promoters.
Daily operations are managed by Mr Nitya Majumder.
MANDAKINI PACHIMATLA: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mandakini
Pachimatla (MP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.25 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 12,
2022, placed the rating(s) of MP under the 'issuer non-cooperating'
category as MP had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. MP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 28, 2023, November 7, 2023, November 17, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Andhra Pradesh based, Mandakini Pachimatla was established as a
proprietorship firm in the year 2016 and promoted by Ms. Mandakini
Pachimatla. The firm is engaged in providing ware house on lease
rental to Telangana State Civil Supplies Corporation Limited
(TSCSCL), Food Corporation of India (FCI) and Cotton Corporation of
India (CCI). The property is built on a total land
area of 1.70 acres and comprises of 4 godowns, with aggregate
storage capacity of around 11000 MT, for food crops like rice,
wheat, cotton etc.
NICE PROJECTS: CARE Lowers Rating on INR44.00cr ST Loan to D
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Nice Projects Limited (NPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.40 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE C; Stable
Short Term Bank 44.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE A4
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 27,
2022, placed the rating(s) of NPL under the 'issuer
non-cooperating' category as NPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. NPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 12, 2023, September 22, 2023, October
2, 2023 and December 28, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
requisite information. The revision further considers the ongoing
delays in debt servicing as recognized from publicly available
information i.e. CIBIL filings.
New India Contractors & Engineers (NICE), a construction agency,
started its activities in 1988 as a proprietorship firm and was
later incorporated as Nice Projects Limited (NPL), on April 22,
2004. The company promoted by Mr. Sartaj Ali, an engineer by
profession, is engaged in construction works pertaining to
residential complexes, warehouses & allied buildings, industrial
structures, educational institutions, hospitals, heavy steel
fabrication and erection works etc., and has executed number of
projects.
PATEL PHOSCHEM: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Patel
Phoschem Limited (PPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated October 21,
2022, placed the rating(s) of PPL under the 'issuer
non-cooperating' category as PPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. PPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 6, 2023, September 16, 2023, September
26, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Udaipur (Rajasthan) based Patel Phoschem Private Limited (PPL) was
incorporated in 2006 by Mr. Roop Lal Patel along with his family
members. In April, 2014, the company changed its constitution from
private limited to public limited. Initially, PPL was engaged in
the business of executing turnkey projects related to installation
of fertiliser plants which includes construction of plant to supply
of machineries. Later, from September, 2012, PPL started production
of SSP, GSSP and PA.
PAVITHRA CONSTRUCTIONS: CRISIL Withdraws 'D' LT/ST Debt Ratings
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
Sri Pavithra Constructions (SPC) and subsequently withdrawn the
ratings at the company's request and on receipt of a no-objection
certificate from the bankers. The withdrawal is in line with CRISIL
Ratings' policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (Rating reaffirmed
and Withdrawn)
Short Term Rating - CRISIL D (Rating reaffirmed
and Withdrawn)
Key Rating Drivers & Detailed Description
Strength:
* Extensive experience of the promoters: The promoters have
experience of over 1.5 decades in the civil construction industry.
This has given them an understanding of market dynamics and helped
to establish relationships with suppliers and customers.
Weaknesses:
* Irregularity in servicing term debt: There was a delay in meeting
debt obligation in March 2023 on account of weak liquidity and
insufficient cash flow. The same was regularized in five days.
* Modest scale of operations: The firm witnessed growth in topline
to INR59 crore in fiscal 2023. However, despite the improvement,
the revenue was modest. The firm has orders worth more than INR150
crore to be executed in fiscal 2024, which provide revenue
visibility. Sustenance of improvement in revenue amid prudent
working capital management will be closely monitored.
Liquidity: Poor
Bank limit utilisation was high at 80% on average for the 12 months
through June 2023. Cash accrual, expected at INR2-2.5 crore per
annum, will sufficiently cover yearly term debt obligation of
INR0.70 crore over the medium term.
Rating Sensitivity factors
Upward factors:
* Timely repayment of debt obligation for at least 90 days.
* Growth in revenue by 20% and sustenance of operating margin
leading to higher cash accrual.
Based in Kadapa, Andhra Pradesh, SPC is a partnership firm of Mr
Pitchi Reddy and Mr Praveen Reddy. The firm undertakes construction
and repair works for Indian Railways, which include gauge
conversion works, repairs to bridges and platforms, building
subways in lieu of unmanned level crossings and construction of
staff quarters.
POWER ENGINEERING: CRISIL Withdraws 'C' Long/Short Term Ratings
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
Power Engineering India Private Limited (PEIPL) and subsequently
withdrawn the ratings at the company's request and on receipt of a
no-objection certificate from the bankers. The withdrawal is in
line with CRISIL Ratings' policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL C (Rating reaffirmed
and Withdrawn)
Short Term Rating - CRISIL A4 (Rating
reaffirmed and Withdrawn)
Key Rating Drivers & Detailed Description
Weaknesses:
* Working capital intensive operations: The operations of the
company are marked with large working capital requirements, driven
by gross current assets [GCA] days ranging between 190-326 days
historically, GCA days as on March 31, 2023, have been 190 days
driven by debtor days of 66 days and inventory days of 81 days, As
the company has focused to keep order backed inventory, the GCA
days would remain in range of 200-225 days over medium term.
* Weak capital structure along with modest financial risk profile:
Financial risk profile is marked by adjusted net worth of INR11.62
crores as on March 31, 2023, which has improved from INR-5.18 crore
as on March 31, 2022, as the promoters have infused funds into the
business and the profits earned by the company have been retained.
Total outside liabilities to adjusted networth ratio and gearing is
5.76 times and 2.60 times, respectively, as on March 31, 2023. Debt
protection metrics continue to remain moderate, as reflected by the
interest coverage and net cash accrual to adjusted debt ratios of
2.13 times and 0.24 time, respectively, in fiscal 2023.
Strengths:
* Extensive industry experience of the promoters and strong
clientele: The promoters have experience of more than three decades
in the generator business. The company is dealing with large and
reputed clients including players in the government sector. It
caters to customers in various sectors such as banking and
insurance, corporate, construction, telecommunication, retail and
logistics.
In 2019, the company started focusing on execution of complete
projects (control panels, transformers, substation assembly and
cabling), apart from sale of gensets. The benefits of this change
in operations could be seen in fiscal 2022, wherein the company
booked operating income of ~Rs 87 crore against ~Rs 51.16 crore in
fiscal 2020. In fiscal 2023, the revenues have improved to over
INR101.8 crore. Operating margin was 6.87% in fiscal 2022 as
against operating loss in fiscal 2021. Further, the margins were
sustained at around 6.8% in fiscal 2023 and operating profits have
improved by around 15%. Also, the company has taken steps to reduce
operating expenses, as a result of which the operating margin is
likely to be better over the medium term.
* Geographical diversification in revenue: PEIPL caters to a large
number of clients, both in India and overseas. It has marketing
offices in Mumbai and Sheffield (United Kingdom), and has a
diversified product profile of diesel, natural and biogas generator
sets, switch boards, compact substations and acoustic enclosures.
Diversity in geographic reach and clientele should continue to
support the business.
Liquidity: Poor
Bank limit utilisation is high at around 95.4 percent for the past
twelve months ended July 2023. Current ratio is moderate at 1.02
times on March 31, 2023, and cash accruals are expected to be over
INR5.4-6.5 crores which are sufficient against term debt obligation
of INR1-1.6 crores over the medium term. However, any delay in
collection of receivables or elongation in working capital cycle
can strain liquidity. Moderate cash and bank balance of around
INR1.92 crores as on March 31, 2023, is largely encumbered. The
promoters are likely to extend support in the form of equity and
unsecured loans to meet its working capital requirements and
repayment obligations. Maintenance of sufficient liquidity will
remain a key monitorable.
Rating Sensitivity factors
Upward factors:
* Sustained improvement in scale of operations, along with
sustained improvement in operating margin beyond 6-6.5%, leading to
higher-than-expected cash accruals.
* Timely servicing of debt obligations without any instances of
delinquencies.
* Improvement in the financial risk profile, with improved networth
backed by steady accretion of reserves.
Downward factors:
* Stretch in liquidity leading to delay in servicing of debt.
* Sustained decline in scale of operations, along with sustained
decline in operating margins below 5%, leading to
lower-than-expected cash accruals.
* Increase in working capital requirements along with decline in
capital structure, leading to decline in financial risk profile of
the company
PEIPL was incorporated in 1996 by Mr Atul Pai Kane. The company
manufactures diesel and gas-based generators. Its products include
diesel generator sets of varied range, gas gensets, various types
of acoustic enclosures, electrical products such as switchboards
and compact substations, composite material products, and sheet
metal components. Its manufacturing facility is in Pernem, Goa, and
has installed capacity of around 15,000 generator sets per annum.
PRAMILA PROJECTS: CARE Lowers Rating on INR13.50cr Loan to B
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Pramila Projects Private Limited (PPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.50 CARE B; Stable; Revised from
Facilities CARE BB-; Stable
Short Term Bank
Facilities 14.50 CARE A4 Reaffirmed
Rationale and key rating drivers
The revision in the ratings assigned to the bank facilities of PPPL
takes into consideration the continuation of stretched liquidity
condition of the company including occasional overdue in the
reverse factoring account (not rated by CARE) which is regularised
within 2 to 5 days. The ratings also continued to remain
constrained by its small scale of operation with low profitability
margin albeit improved revenues in FY23, intense competition within
the industry owing to low entry barrier, susceptibility of
operating margin to volatility in input material prices and labour
charges and working capital intensive nature of operation.
However, the aforesaid weakness gets partially offset by PPPL's
experienced promoters with long track record of operation, moderate
order book position along with reputed clientele with minimal
default risk and comfortable capital structure and
satisfactory debt coverage indicators.
Rating sensitivities: Factors likely to lead to rating actions
Positive factors
* Significant improvement in operation performance with improvement
in liquidity position and debt protection metrics
Negative factors
* Substantial decrease in the operational and financial performance
from the current levels.
Analytical approach: Standalone
Outlook: Stable
The stable outlook reflects the ability of the company to maintain
its financial performance while maintaining its current capital
structure and improving its liquidity position
Detailed description of the key rating drivers:
Key weaknesses
* Small scale of operation albeit improvement in FY23: The TOI of
PPJ in FY23 has improved significantly backed by higher execution
of order in hand and experienced a y-o-y growth of 111%. The
company achieved TOI of INR55.30 crore in FY23 as against INR26.11
crore in FY22. The PBILTD margin remained stable at 7.73% during
FY23 as against 7.21% in FY22. The company has recorded net profit
of INR2.23 crore in FY23 (P.Y. INR0.67 crore). The company has
achieved turnover of INR22.67 crore in 8MFY24 with PBILDT of
INR2.77 crore. The TOI and margins are expected to remain at
similar levels in near to mid-term.
* Intense competition within the industry owing to low entry
barrier: The civil construction space is highly competitive with
many players operating in the sector affecting the profitability of
the participants. Furthermore, the company is largely dependent on
government authorities for orders and mainly procures its orders
through tender bidding and in a highly competitive scenario risk of
non-receiving of contract in tender bidding is also high.
* Susceptibility of operating margin due to volatility in input
material prices and labour charges: The basic input materials for
execution of construction projects and works contracts are long and
flat steel, cement etc. The prices of which are highly volatile.
Furthermore, the operating margin of the company is exposed to
sudden spurt in the input material prices along with increase in
labour prices being in labour intensive industry.
* Working capital intensive nature of operation: The operation of
the company is working capital intensive. The operating cycle
elongated in FY21 and FY22 when compared with FY20, on account of
higher collection period mainly due to significant decrease in
scale of operations owing to the pandemic coupled with increase in
debtors in absolute levels. However, the working capital cycle has
improved in FY23 to 75 days from 92 days in FY22 backed by better
collection days. The average working capital utilisation for the
last 12 months ending October 2023, stood close to 90%.
Key strengths
* Experienced promoters with long track record of operation: PPJ
has been in operation since 2007, accordingly has a long track
record of operation. Further, the company is managed by Mrs.
Swarupa Patra, MD, along with other director, Mr Pravesh Chandra
Patra, and a team of experienced personnel. The directors are
having around two decades of experience in construction business.
* Moderate order book position along with reputed clientele
resulting in minimal default risk: The company has an order book of
around INR66 crores as on November 30, 2023 (INR66 crore as on
December 31, 2022), which is 1.19x of TOI in FY23. This order is to
be executed within next six months indicating medium term revenue
visibility. This apart, the company has submitted new tenders, out
of which the management expects substantial orders to be received
by March' 2024. The company receives order from reputed
organizations which includes Indian Oil Ltd, TYK Ceramics India Pvt
Ltd, Shree Cement etc.
* Comfortable capital structure and satisfactory debt coverage
indicators: The capital structure of the company is comfortable
marked by overall gearing ratio at 1.45x as on March 31, 2023. The
overall gearing increased from 0.76x as on March 31, 2022 due to
higher utilisation of working capital limit. The capital structure
consists of term loans from bank of INR1.45 crore and rest working
capital borrowing. This apart, interest coverage ratio improved to
2.71x (P.Y.1.62x) during FY23 and Total debt to GCA was also
improved to 6.79x (P.Y. 7.30x). The capital structure is expected
to remain at similar levels going ahead owing to higher working
capital utilisation.
Liquidity: Stretched
The liquidity position of the company continues to be stretched
including occasional overdue in the reverse factoring account (not
rated by CARE) which is regularised within 2 to 5 days. The company
recorded a GCA of 2.54 crore in FY23 against debt repayment
obligation of INR0.35 crore. The operating cycle days decreased
significantly as on March 31, 2023 to 75 days from 92 days as on
March 31, 2022, backed by improved collection period. The company's
maximum working capital limit utilisation reached 90% for 12 months
period ending October 31, 2023. The company has debt repayment
obligation of INR0.36 crore in FY24 against which it is expected to
generate sufficient cash accruals.
Pramila Projects Private Limited (PPPL) was incorporated during
2007 in Bhubaneswar, Odisha. PPPL is a relatively small sized
Odisha based company engaged in providing different types of
structural construction services to manufacturing companies, which
includes design-drawing, land development, construction of shades
and installation of machineries etc. The day-to-day operations are
looked after by Mrs. Swarupa Patra, MD, along with other director,
Mr Pravesh Chandra Patra, and a team of experienced personnel.
S.M MUSTHAFA: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of S.M
Musthafa (SM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 22.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated November 22,
2022, placed the rating(s) of SM under the 'issuer non-cooperating'
category as SM had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
October 8, 2023, October 28, 2023, December 20, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
S.M Musthafa (SMM) was established in the year 2011 promoted by Mr
Sajeepa Mohammed Musthafa. The firm is engaged in construction of
buildings for the Education Sector. The firm receives the work
orders directly from the customers for construction in various
segments like building hostels and college building.
SANKAR COTTON: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sankar
Cotton Traders (SCT) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 14,
2022, placed the rating(s) of SCT under the 'issuer
non-cooperating' category as SCT had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SCT
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 30, 2023, November 9, 2023, November 19,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sankar Cotton Traders (SCT) was originally started as a propriety
concern in 2003 and Mr. Innamuri Basavaiah is the proprietor.
During the May 2014, SCT was in incorporated a partnership firm, by
Ms Innamuri Dhana Lakshmi w/o Mr. Innamuri Basavaiah as another
partner. The firm is engaged in manufacturing and processing of
Kappas into cotton lint. The firm has its facilities (9 ginners)
located at Guntur District of Andhra Pradesh.
SEQUENCE REALTY: CRISIL Reaffirms B Rating on INR43cr Term Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
bank loan facilities of Sequence Realty (SR).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 43 CRISIL B/Stable (Reaffirmed)
Term Loan 22 CRISIL B/Stable (Reaffirmed)
On December 22, 2023, CRISIL Ratings had assigned its 'CRISIL
B/Stable' rating to the long-term bank facilities of SR.
The rating reflects susceptibility to tender-based nature of
operations, cyclicality inherent in the industry and highly
leveraged capital structure. These weaknesses are partially offset
by the extensive experience of the promoters in the real estate
industry and a well-diversified revenue profile.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to tender-based operations: As the firm derives
its entire revenue from tender-based orders, its ability to
successfully bid for projects is critical. Further, intense
competition necessitates aggressive bidding, mostly compromising on
the operating margin. Also, given the cyclicality inherent in the
construction industry, the ability to maintain profitability margin
through operating efficiency becomes critical.
* Vulnerability to cyclicality inherent in the industry: The real
estate sector in India is cyclical and affected by volatile prices,
opaque transactions and a highly fragmented market structure.
Hence, business risk profile will remain susceptible to risks
arising from any industry slowdown.
* Highly leveraged capital structure: The financial risk profile
was constrained by total outside liabilities to adjusted networth
ratio stood high at 3 times as on March 31, 2023.
Strengths:
* Extensive experience of the promoters: SR is a part of the
Samanvay group, which has a successful project implementation track
record. The promoters have more than a decade of experience in the
real estate market of Gujarat; their strong understanding of market
dynamics and healthy relationships with customers and suppliers
should continue to support the business.
* Well-diversified revenue profile: SR operates as a real estate
developer and undertakes civil construction works. Adequate
diversity in the products/service basket helps mitigate the risk of
slowdown in any one segment.
Liquidity: Stretched
As a large part of construction cost is yet to be incurred and bank
loan is yet to be disbursed, liquidity may remain stretched.
Moreover, any unforeseen delay in construction might result in cost
overruns, thereby affecting liquidity. Further, any delay in
receipt of advances from customers would significantly impact
liquidity. Incremental bookings, flow of customer advances and the
progress on project implementation will be the key monitorable.
Customer advances for ongoing projects have been healthy so far;
any delay in receipt of advances would significantly impact
liquidity.
Outlook: Stable
SR will continue to benefit from the extensive experience of its
promoters and their established relationship with clients.
Rating Sensitivity Factors
Upward factors:
* Bookings increasing over 40%, resulting in sizeable cash inflow
and low reliance on debt.
* Significant progress in project implementation.
Downward factors:
* Low cash flow because of subdued scale of operations or no new
project.
* Large, debt-funded project, adversely affecting the capital
structure, with gearing above 3 times.
SR (a part of the Samanvay group) was set up in 2010 at Vadodara in
Gujarat. The firm undertakes civil construction works, mainly
construction of two- and three-bedrooms-hall-kitchen along with
commercial properties such as showrooms. It is also engaged in real
estate development and is working on a commercial project, Samanvay
Anantam, at Alkapuri in Vadodara. Mr Ankur Parekh, Mr Ravi J Rao
and Mr Vishal K Patel manage the business.
SHRUTHI MILK: CRISIL Lowers Rating on INR10cr Cash Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Shruthi Milk Products Private Limited (SMP) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' due to
delays in servicing debt obligation.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Long Term Loan 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with SMP for
obtaining information through letters and emails dated December 28,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that the rating action on
SMP is consistent with 'Assessing Information Adequacy Risk'
Incorporated in 2009, SMP is in the business of processing milk and
milk products. The company is promoted by Mr. Kannaiah Reddy.
Status of non cooperation with previous CRA:
SMP has not cooperated with ICRA Limited which has classified it as
non-cooperative vide release dated April 29, 2019. The reason
provided by ICRA Limited is non-furnishing of information for
monitoring of ratings.
SMP has not cooperated with India Ratings and Research Private
Limited (India Ratings) which has classified it as non-cooperative
vide release dated September 05, 2017. The reason provided by India
Ratings is non-furnishing of information for monitoring of
ratings.
SITARAM GANESHMALL: CRISIL Withdraws B+ Rating on INR5cr Loan
-------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Sitaram Ganeshmall (SG) on the request of the company and receipt
of a no objection certificate from its bank. The rating action is
in line with CRISIL Ratings' policy on withdrawal of its ratings on
bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B+/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with SG for
obtaining information through letters and emails dated October 4,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SG. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SG is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of SG
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SG started its business in 1952. Mr Kailash Chanani and Ms Alka
Chanani are the the current partners of the firm, as per the latest
amended partnership deed dated as on 2010. The firm, based in
Kolkata, trades in thermo-mechanically treated bars and mild steel
channels, angles, sheets and plates.
SUPREME EXPORTS: CARE Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Supreme
Exports (SE) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 19,
2022, placed the rating(s) of SE under the 'issuer non-cooperating'
category as SE had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SE continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
November 4, 2023, November 14, 2023, November 24, 2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Supreme Exports (SE) was established in the year 2000 and promoted
by Mr SHV Prasad and his spouse Ms. S Rama Sita. The firm is
engaged in processing, packing and export of shrimp to various
places like Vietnam, China, Singapore and Dubai. The product
profile of the company includes black tiger, vannamei, scamp and
white shrimp. The plant has the certification of 'Hazard Analysis
Critical Control Point (HACCP)' and British Retail Consortium
(BRC). The processing and storage facilities of SE are approved by
the Marine Products Export Development Authority (MPEDA).
T M MOTORS: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of T M Motors
(TMM) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated November 9,
2022, placed the rating(s) of TMM under the 'issuer
non-cooperating' category as TMM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. TMM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated September 25, 2023, October 5, 2023, October 15,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Bharatpur (Rajasthan) based T M Motors (TMM) was formed in 2004 by
Saluja family as a partnership concern. TMM is an authorized dealer
of Hero Motor Corp Limited (HMCL) for two wheelers. The showroom of
the firm is located in Bharatpur and provides Sales, Services and
Spare parts services to its customers.
UPASANA JEWELLERS: CRISIL Withdraws B Rating on INR10cr e-DFS
-------------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Upasana Jewellers Private Limited (UJPL) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Electronic Dealer 10 CRISIL B/Stable/Issuer Not
Financing Scheme Cooperating (Withdrawn)
(e-DFS)
Electronic Dealer 5 CRISIL B/Stable/Issuer Not
Financing Scheme Cooperating (Withdrawn)
(e-DFS)
Proposed Long Term 15 CRISIL B/Stable/Issuer Not
Bank Loan Facility Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with UJPL for
obtaining information through letters and emails dated June 15,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of UJPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on UJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
UJPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
UJPL was set up in 2007 as a proprietorship firm by Ms Arati Maity;
the firm was reconstituted as a private limited company in 2011. Mr
Sadhan Maity and Ms Arati Maity are the current promoters. It
initially manufactured gold jewellery, before venturing into
retailing branded jewellery. The company has a franchise agreement
with Senco Gold for retailing its gold and diamond-studded
jewellery.
VAMSADHARA GINNING: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vamsadhara
Ginning and Pressing Industries (VGPI) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated December 12,
2022, placed the rating(s) of VGPI under the 'issuer
non-cooperating' category as VGPI had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. VGPI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated October 28, 2023, November 7, 2023, November 17,
2023.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Vamsadhara Ginning & Pressing Industries (VGPI) was established in
the year 2016 by seven partners. The firm is engaged in cotton
ginning & pressing at its factory located at Piduguralla, Guntur
district. The operations started from February 2017 and the firm
has its customer presence in Andhra Pradesh and Telangana who
purchase cotton lint and cotton seed manufactured by the firm. Mr.
Sontineni Venkateswara Rao, the chief promoter and managing partner
of this firm since its inception, has 27 years of experience in the
line of rice milling and cotton ginning business. He is also having
a major stake in the associate concerns, 'Vamsadhara Rice
Industries' and 'Vamsadhara Cotton Industries' both located at
Janapadu, Andhra Pradesh.
=================
I N D O N E S I A
=================
ZENIUS EDUCATION: Temporarily Halts Operations After 20 Years
-------------------------------------------------------------
Jakarta Globe reports that edutech startup Zenius has declared a
temporary shutdown of its operations after two decades in business.
In an official statement, Zenius attributed the decision to
operational challenges.
"Zenius is currently facing operational challenges, and we deeply
regret any inconvenience this may cause to our users," the company
said in a statement on Jan. 4.
The company said that since its establishment in 2004, Zenius has
helped millions of students, helping them pursue admission to their
desired state universities.
"We are taking strategic steps to halt operations temporarily, but
we assure you that we will not stop striving to execute and realize
the vision of shaping an intelligent, bright, and enjoyable
Indonesia," it said.
According to Jakarta Globe, the company has not provided a timeline
for the unavailability of its services, and there is no indication
of the fate of its employees.
Over the past two years, the company experienced three rounds of
workforce reductions, Jakarta Globe says. The first round of
layoffs affected over 200 employees in May 2022, followed by a
second round in August 2022, and a third in February 2023.
Zenius provides educational access through online video formats via
its website and mobile applications. In early 2022, Zenius acquired
Primagama, a private tutoring institution that provides
supplementary education services to students. As of December 2022,
the platform has amassed more than 16 million users.
Zenius has received support from various investors, including
Telkom's MDI Ventures, Patrick Walujo's Northstar Group, Alpha JWC,
Openspace Ventures, and Beacon Venture Capital.
In March 2022, Zenius announced its latest funding from MDI
Ventures, bringing the company's total funding since its
establishment to $40 million, Jakarta Globe notes.
=================
S I N G A P O R E
=================
CENTRUM MARITIME: Creditors' Proofs of Debt Due on Jan. 29
----------------------------------------------------------
Creditors of Centrum Maritime Pte. Ltd. are required to file their
proofs of debt by Jan. 29, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 26, 2023.
The company's liquidator is:
Farooq Ahmad Mann
c/o 3 Shenton Way
#03-06C Shenton House
Singapore 068805
FOOD MART: Creditors' Proofs of Debt Due on Jan. 29
---------------------------------------------------
Creditors of Food Mart Pte. Ltd. are required to file their proofs
of debt by Jan. 29, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Dec. 22, 2023.
The company's liquidator is:
Cheong Beng Sheng, Dean
c/o Guardian Advisory
531A Upper Cross Street
#03-118 Hong Lim Complex
Singapore 051531
FUSIONEX PTE: Court to Hear Wind-Up Petition on Jan. 12
-------------------------------------------------------
A petition to wind up the operations of Fusionex Pte Ltd will be
heard before the High Court of Singapore on Jan. 12, 2024, at 10:00
a.m.
The petition was filed on Dec. 20, 2023.
The Petitioner's solicitors are:
Allen & Gledhill LLP
1 Marina Boulevard,
#28-00, One Marina Boulevard
Singapore 018989
HAVELOCK INTERNATIONAL: Commences Wind-Up Proceedings
-----------------------------------------------------
Members of Havelock International (Pte.) Ltd on Dec. 22, 2023,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Ong Shyue Wen
Saw Meng Tee
EA Consulting (a subsidiary of EisnerAmper PAC)
1 North Bridge Road
#23-05 High Street Centre
Singapore 179094
LIPPO MALLS: Fitch Cuts IDR to 'C' on Distressed Debt Exchange
--------------------------------------------------------------
Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC-'.
Fitch has also downgraded the rating on LMIRT's senior unsecured
notes due 2024 and 2026 to 'C' from 'CCC-', with a Recovery Rating
of 'RR4'. The notes are issued by LMIRT's wholly owned subsidiary,
LMIRT Capital Pte. Ltd., and are guaranteed by Perpetual (Asia)
Limited in its capacity as trustee of LMIRT. All ratings have been
removed from Rating Watch Negative, on which they were placed on
December 14, 2023.
The downgrade follows LMIRT's announcement that it will proceed
with a tender offer, subject to the satisfaction of the conditions
in the offering memorandum. Fitch believes the tender offer
constitutes a distressed debt exchange (DDE), as the transaction
will lead to a material reduction in terms and, in its view, is
being conducted to avoid a default.
LMIRT said on December 28 that it received valid tenders on USD43.5
million of notes due 2024 (18.8% of outstanding notes) and USD38.5
million of notes due 2026 (21.2% of outstanding notes). It also
received valid consents to remove material covenants on no less
than a majority in aggregate principal amount of the notes due 2024
and 2026.
Fitch will downgrade LMIRT's IDR to 'Restricted Default' (RD) on
completion of the DDE, and reassess the ratings in line with the
post-restructuring capital structure.
KEY RATING DRIVERS
DDE Drives Downgrade: Fitch regards LMIRT's tender offer as a DDE,
as Fitch believes the amendments constitute a material reduction in
original terms and that the transaction helped the company to avoid
a traditional default, given its untenable liquidity profile. As
such the Long-Term IDR was downgraded to 'C' following the
announcement of successful consent solicitation and that the DDE
will proceed, in line with its criteria.
DERIVATION SUMMARY
LMIRT's Long-Term IDR of 'C' and the 'C' rating on its senior
unsecured notes reflect the company's announced tender offer on its
outstanding unsecured notes. Fitch believes the tender offer
constitutes a DDE.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Net property income, including from Lippo Mall Puri, of SGD123
million in 2023 and in 2024;
- Capex of SGD11 million in 2023 and SGD35 million in 2024;
- No dividend payout and perpetual coupon distribution in 2023 and
2024.
RECOVERY ANALYSIS
Fitch assumes LMIRT will be liquidated in a bankruptcy rather than
continue as a going concern, as Fitch believes creditors are likely
to maximise recoveries by selling the investment properties.
- Fitch calculates a liquidation value under a distressed scenario
of SGD1.3 billion at end-September 2023.
- Fitch uses stressed capitalisation values to arrive at the
distressed valuation for LMIRT's investment properties. Fitch uses
a 10% capitalisation rate as a reference, being the average of
capitalisation rates from recent divestments and acquisitions, and
apply this to LMIRT's net property income for the 12 months to
September 2023.
- The estimate also reflects its assessment of the value of trade
receivables under a liquidation scenario, with a 75% advance rate.
Fitch believes a 25% discount is sufficient to cover potential bad
debt.
These assumptions result in a recovery corresponding to a Recovery
Rating of 'RR2' for the outstanding senior unsecured bonds.
However, the Recovery Rating is capped at 'RR4', as LMIRT derives
its entire economic value from assets in Indonesia even though it
is incorporated in Singapore. Under its Country-Specific Treatment
of Recovery Ratings Criteria, Indonesia falls into Group D of
creditor friendliness, and the Recovery Rating for instruments of
issuers with assets in this group is subject to a soft cap at
'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade
- Fitch will reassess LMIRT's capital structure and cash flow after
the completion of the DDE, to determine the Long-Term IDR and
senior unsecured rating.
Factors that could, individually or collectively, lead to negative
rating action/downgrade
- Fitch will downgrade LMIRTs Long-Term IDR to 'RD' (Restricted
Default) when the DDE is completed, and then reassess the company's
IDR based on the post-restructuring capital structure.
LIQUIDITY AND DEBT STRUCTURE
Insufficient Liquidity: Fitch believes LMIRT will have to rely on
additional bank debt to fund payment of the remaining USD188.3
million (about SGD248 million) of the bonds maturing in 2024, as
its cash balance of SGD99 million at end-September 2023 is
insufficient to cover Fitch's forecast negative free cash flow and
upcoming maturities. Fitch does not expect non-core asset disposals
in the near term, given the high execution risk.
ISSUER PROFILE
LMIRT is a Singapore-listed real-estate investment trust with a
portfolio of 22 shopping malls and seven retail spaces in
Indonesia. The portfolio was valued at SGD1.7 billion as of
end-September 2023.
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.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Lippo Malls Indonesia
Retail Trust LT IDR C Downgrade CCC-
LMIRT Capital Pte.
Ltd.
senior unsecured LT C Downgrade RR4 CCC-
ORCHARD AVIATION: Creditors' Proofs of Debt Due on Jan. 30
----------------------------------------------------------
Creditors of Orchard Aviation (A330) Pte. Ltd. are required to file
their proofs of debt by Jan. 30, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 20, 2023.
The company's liquidator is:
Ong Kok Yeong David
c/o Tricor Singapore
9 Raffles Place
#26-01 Republic Plaza
Singapore 048619
=====================
S O U T H K O R E A
=====================
TAEYOUNG ENG'G: Founder Asks Creditors to Allow Debt Restructuring
------------------------------------------------------------------
Yonhap News Agency reports that the founder of Taeyoung Engineering
& Construction Co. on Jan. 3 asked creditors to allow the ailing
builder to enter a debt restructuring program to tide over a cash
crunch.
Yonhap relates that Yoon Se-young, founder and honorary chairman of
Taeyoung, made the earnest request at a meeting with some 400
creditors, led by the state-run Korea Development Bank (KDB),
earlier in the day.
Taeyoung, the 16th largest builder in South Korea in terms of
construction capacity, applied for a debt restructuring program
last week due to a liquidity shortage over real estate project
financing (PF) loans, Yonhap notes.
If creditors are given "a chance to properly repay the debts, all
executives and employees will do their best to save Taeyoung," Yoon
told the meeting.
He blamed the builder's "overconfidence" in property projects
backed by PF loans as the reason for the cash crunch, Yonhap
relays.
Yoon predicted that Taeyoung could post annual sales of some KRW3
trillion (US$2.3 billion) over the next three years.
As of September last year, Taeyoung's debts were estimated at
around KRW1.9 trillion, with its debt-equity ratio reaching 479
percent, Yonhap discloses.
During the meeting, Yoon offered details of the builder's
self-rescue plan, but a senior KDB official called the plan
insufficient.
Yang Jae-ho, the official at the KDB's corporate restructuring
division, told reporters, "So far, I don't think it is sufficient
to proceed with a workout." Yang called for Taeyoung to do more in
making efforts to help repay debts, Yonhap says.
About Taeyoung E&C
Taeyoung Engineering & Construction provides civil engineering,
architectural, and plant construction services. The Company
concentrates on public civil engineering projects including
highways, water drainage systems, and bridges. Taeyoung also
operates leisure and broadcasting businesses through its
affiliates, such as Taeyoung Leisure, and Seoul Broadcasting System
(SBS) Production.
As reported in the Troubled Company Reporter-Asia Pacific in late
December 2023, Taeyoung Engineering & Construction Co. applied for
a debt-restructuring program Dec. 28, 2023, to tide over a cash
crunch, raising concerns over troubled peers in South Korea.
Taeyoung E&C submitted the application to its main creditor, the
state-run Korea Development Bank (KDB), after its board decided to
request a debt workout, the company said in a regulatory filing.
Yonhap News said the company also promised to take self-help
measures, including the sale of affiliates and the contribution of
major shareholders' private fortunes.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN: 1520-9482.
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