/raid1/www/Hosts/bankrupt/TCRAP_Public/240110.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, January 10, 2024, Vol. 27, No. 8
Headlines
A U S T R A L I A
ALCOA CORP: To Shut Alumina Refinery, More Than 750 Jobs at Risk
AUSTRALIAN FLOOR: First Creditors' Meeting Set for Jan. 18
BODY CATALYST: Second Creditors' Meeting Set for Jan. 16
ECO WRAP: First Creditors' Meeting Set for Jan. 18
LIDDLE SHEARING: Second Creditors' Meeting Set for Jan. 17
TILE MARKET: Second Creditors' Meeting Set for Jan. 17
C H I N A
SUNING.COM: Founder Plan to Return Retail Giant to Profit in 2024
XINYUAN REAL: US Unit Files for Chapter 11 Bankruptcy
[*] CHINA: Closes Local Government Offshore Financing Loophole
I N D I A
ADINATH SORTEX: CRISIL Moves B+ Debt Ratings to Not Cooperating
AIMS OXYGEN: CARE Lowers Rating on INR10cr LT Loan to B
ANITHA TEXCOT: Ind-Ra Keeps BB Rating in Non-Cooperating
ANTECH CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
ASHIANA DWELLINGS: CARE Keeps D Debt Rating in Not Cooperating
ASSOCIATED COMPOSITE: Insolvency Resolution Process Case Summary
B.L. AGRO: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
BAGGA LUXURY: CRISIL Moves B- Debt Rating to Not Cooperating
BRIGHT ENGINEERING: Ind-Ra Keeps BB- Loan Rating in NonCooperating
C.E. TESTING: Ind-Ra Keeps BB Loan Rating in NonCooperating
CHOICE HATCHERY: CRISIL Moves B+ Debt Ratings to Not Cooperating
CLAVECON PRIVATE: Ind-Ra Keeps B+ Loan Rating in NonCooperating
ELLENBARRIE TEA: CRISIL Moves B+ Debt Ratings to Not Cooperating
ESCON ELEVATORS: Ind-Ra Assigns BB+ Bank Loan Rating
FEKARI INFRASTRUCTURE: Voluntary Liquidation Process Case Summary
GAMA INFRAPROP: Ind-Ra Moves BB Loan Rating to NonCooperating
JAI MAA: CARE Lowers Rating on INR3.60cr LT Loan to B+
K2 METALS: ICRA Moves D Debt Ratings to Not Cooperating Category
KHUSH INFRATECH: Insolvency Resolution Process Case Summary
KLM HOLDINGS: Insolvency Resolution Process Case Summary
KOHINOOR GINNING: Insolvency Resolution Process Case Summary
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps D Rating in NonCooperating
KOTKAPURA MUKTSAR: Ind-Ra Keeps D Loan Rating in NonCooperating
MASCOT CEMENT: Voluntary Liquidation Process Case Summary
MHOW AGROH: CARE Reaffirms B+ Unsupported Rating
NAYAK INFRASTRUCTURE: Liquidation Process Case Summary
NJR CONSTRUCTIONS: ICRA Keeps B+ Debt Ratings to Not Cooperating
OM PAPER: CRISIL Moves B Debt Ratings to Not Cooperating Category
PARAGON ORGANICS: CRISIL Lowers Rating on INR5.5cr Term Loan to B
PRATIBHA SYNTEX: Ind-Ra Keeps BB Loan Rating in NonCooperating
PREMIUM SERUMS: ICRA Reaffirms B+ Rating on INR15.34cr Term Loan
Q2Q SOLUTIONS: ICRA Withdraws B+ Rating on INR70cr LT Loan
R K S HOME: Insolvency Resolution Process Case Summary
R R INFOPARK: Insolvency Resolution Process Case Summary
RANSAN PACKAGING: Insolvency Resolution Process Case Summary
RKB GLOBAL: CRISIL Withdraws B+ Rating on INR113.5cr Loan
RURAL IMPROVEMENT: Ind-Ra Gives B Loan Rating, Outlook Stable
SADBHAV BHAVNAGAR: Ind-Ra Cuts Term Loan Rating to D
SAHARA Q SHOP: Insolvency Resolution Process Case Summary
SANMATI TRADERS: CRISIL Moves B+ Debt Ratings to Not Cooperating
SESA CARE: Ind-Ra Cuts Term Loan Rating to BB+
SHARADHA TIMBERS: ICRA Keeps D Debt Ratings to Not Cooperating
SHIVPRIYA CABLES: Insolvency Resolution Process Case Summary
SHORAPUR SOLAR: ICRA Moves B Debt Ratings to Not Cooperating
SOMNATH AGRO: CRISIL Moves B Debt Rating to Not Cooperating
SREI INFRASTRUCTURE: NCLAT Rejects Authum Investment Plea
SVN AGRO: CRISIL Moves B+ Ratings to Not Cooperating Category
VADIM INFRASTRUCTURE: ICRA Keeps D Ratings to Not Cooperating
VASUPRADA PLANTATION: Ind-Ra Affirms B+ Rating, Outlook Stable
VELLAPALLY CONSTRUCTIONS: CRISIL Moves B- Rating to Not Coop.
WOODIND: ICRA Keeps D Debt Ratings to Not Cooperating
ZEE ENTERTAINMENT: Sony Is Planning to Call Off $10 Billion Merger
ZOOM DEALCOMM: Insolvency Resolution Process Case Summary
N E W Z E A L A N D
ELE GROUP: Former Workers Left Sleeping in Cars After Receivership
S I N G A P O R E
ACTECO HOLDING: Court to Hear Wind-Up Petition on Jan. 19
FINANTIER PTE: Court to Hear Wind-Up Petition on Jan. 19
KEW GARDEN: Court to Hear Wind-Up Petition on Jan. 12
MAPLE ASSET: Creditors' Proofs of Debt Due on Feb. 5
RAZE BUILDERS: Court Enters Wind-Up Order
S O U T H K O R E A
TAEYOUNG ENGINEERING: Inches Closer to Avoiding Court Receivership
- - - - -
=================
A U S T R A L I A
=================
ALCOA CORP: To Shut Alumina Refinery, More Than 750 Jobs at Risk
----------------------------------------------------------------
ABC News reports that United States mining giant Alcoa has
announced it will halt production at one of its three West
Australian alumina refineries, with more than 750 employees set to
lose their jobs.
According to the report, the company will stop production at its
plant on the Kwinana industrial strip, south of Perth, later this
year after more than 60 years of operation.
Announcing the move on Jan. 9, Alcoa said the plant's workforce
would be cut from about 800 to about 250 in the third quarter of
this year, when all production would stop, the ABC relates.
Staff numbers would be further reduced to about 50 in 2025.
According to the ABC, Alcoa executive vice president Matt Reed said
the decision to close the refinery was purely based on cost.
"This is a commercial decision," he told the ABC.
"We don't see this as something that relates to policy settings,
and I point to the fact that we are very much committed to WA and
are continuing to run two large refineries in this state.
"The [Kwinana] facility's been challenged for some considerable
amount of time . . . the age of the plant, the scale, cost base,
and the grade challenges.
"But, that's obviously a difficult message for our people to hear
regardless."
Mr. Reed reaffirmed Alcoa's commitment to supporting affected
staff, the ABC relays.
"We are really focused on making sure that we look after them and
that they are able to transition effectively into other roles
within Alcoa or other organisations," the report quotes Mr. Reed as
saying.
The Kwinana refinery recorded a net loss of approximately $US130
million in 2023, the ABC discloses.
The ABC adds that Alcoa's announcement on Jan. 9 only mentioned job
losses for its own employees.
The shutdown of production at the Kwinana plant is also expected to
affect around 250 contractors, according to the WA government,
bringing the total impacted number of workers to about 1,050, the
ABC adds.
Alcoa Corporation, together with its subsidiaries, produces and
sells bauxite, alumina, and aluminum products in the United States,
Spain, Australia, Iceland, Norway, Brazil, Canada, and
internationally. The company operates through three segments:
Bauxite, Alumina, and Aluminum. It engages in bauxite mining
operations; and processes bauxite into alumina and sells it to
customers who process it into industrial chemical products, as well
as aluminum smelting and casting businesses. The company offers
primary aluminum in the form of alloy ingot or value-add ingot to
customers that produce products for the transportation, building
and construction, packaging, wire, and other industrial markets. In
addition, it owns hydro power plants that generates and sells
electricity in the wholesale market to traders, large industrial
consumers, distribution companies, and other generation companies.
AUSTRALIAN FLOOR: First Creditors' Meeting Set for Jan. 18
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
Floor Group Pty Ltd will be held on Jan. 18, 2024 at 10:00 a.m. via
teleconference.
Stuart Otway and Travis Olsen of SV Partners SA were appointed as
administrators of the company on Jan. 8, 2024.
BODY CATALYST: Second Creditors' Meeting Set for Jan. 16
--------------------------------------------------------
A second meeting of creditors in the proceedings of:
- Body Catalyst Broadway;
- Body Catalyst Burleigh Heads Pty Ltd;
- Body Catalyst Burwood Pty Ltd;
- Body Catalyst Carlton Pty Ltd;
- Body Catalyst Castle Hill Pty Ltd;
- Body Catalyst Cronulla Pty Ltd;
- Body Catalyst Hawthorn Pty Ltd;
- Body Catalyst Hawthorne Pty Ltd;
- Body Catalyst Lane Cove Pty Ltd;
- Body Catalyst Monterey Pty Ltd;
- Body Catalyst New Farm Pty Ltd;
- Body Catalyst North Sydney Pty Ltd;
- Body Catalyst Paddington Qld Pty Ltd;
- Body Catalyst Penrith Pty Ltd;
- Body Catalyst Pittwater Pty Ltd;
- Body Catalyst Port Melbourne Pty Ltd;
- Body Catalyst Richmond Pty Ltd;
- Body Catalyst Robina Pty Ltd;
- Body Catalyst Ryde Pty Ltd;
- Body Catalyst Shellharbour Pty Ltd;
- Body Catalyst Southland Pty Ltd;
- Body Catalyst Toowoomba Pty Ltd;
- Body Catalyst Warringah Mall Pty Ltd;
- Body Catalyst Wetherill Park Pty Ltd;
- Body Catalyst Zetland Pty Ltd; and
- Cryo Clinic Pty Ltd
has been set for Jan. 16, 2024, at 10:00 a.m. at the offices of WLP
Restructuring at Suite 21.02, Level 21, Australia Square, 264
George Street in Sydney and via electronic facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 15, 2024 at 12:00 p.m.
Alan Walker and Glenn Livingstone of WLP Restructuring were
appointed as administrators of the company on Dec. 7, 2023.
ECO WRAP: First Creditors' Meeting Set for Jan. 18
--------------------------------------------------
A first meeting of the creditors in the proceedings of Eco Wrap &
Pack Holdings Pty Ltd will be held on Jan. 18, 2024, at 11:00 a.m.
via teleconference only.
Stephen Dixon and Ahmed Bise of Hamilton Murphy Advisory were
appointed as administrators of the company on Jan. 8, 2024.
LIDDLE SHEARING: Second Creditors' Meeting Set for Jan. 17
----------------------------------------------------------
A second meeting of creditors in the proceedings of Liddle Shearing
Co Pty Ltd has been set for Jan. 17, 2024, at 11:00 a.m. via
virtual meeting only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 15, 2024 at 4:00 p.m.
Michael Gregory Jones of Jones Partners Insolvency & Restructuring
was appointed as administrator of the company on Dec. 7, 2023.
TILE MARKET: Second Creditors' Meeting Set for Jan. 17
------------------------------------------------------
A second meeting of creditors in the proceedings of Tile Market
(NSW) Pty. Limited has been set for Jan. 17, 2024, at 11:00 a.m.
via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 16, 2024 at 4:00 p.m.
Bruce Gleeson and Daniel Robert Soire of Jones Partners Insolvency
& Restructuring were appointed as administrators of the company on
Dec. 1, 2023.
=========
C H I N A
=========
SUNING.COM: Founder Plan to Return Retail Giant to Profit in 2024
-----------------------------------------------------------------
Yicai Global reports that Suning.com's founder Zhang Jindong will
reassert his influence at the struggling Chinese retailer to
achieve an all-around profit this year after stepping down as
chairman in 2021.
Suning.com should implement an organizational change plan to
minimize the management level and allow more employees to face the
market and respond quickly, Zhang, who is also honorary chairman of
Suning Holdings Group, said at the firm's 2024 annual work
deployment meeting, Yicai relates.
The Nanjing-based company's core business goals are overall
operating profitability and scale profitability of the 3C
(computers, communications, and consumer electronics) core business
of household appliances, Zhang pointed out.
On July 12, 2021, Zhang transferred his controlling stake to
industrial capital with a state-owned background in Jiangsu
province to solve Suning's capital crisis. He also resigned as
chairman of Suning.com, stepping down from operating and managing
the company, Yicai recalls.
Suning.com will continue to deepen the development of the
lower-level market, while online retail will form a
three-dimensional store network while accelerating the layout of
the county and town markets, Zhang noted. It will also lay out more
than 3,000 stores in the lower-level market this year, he added.
However, achieving the annual profitability goal will not be easy,
Yicai notes. Suning's net loss shrank 43 percent to CNY2.6 billion
(USD363 million) in the nine months ended Sept. 30 from a year
earlier, while revenue dropped 12.4 percent to CNY48.7 billion
(USD6.9 billion), Yicai discloses.
Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.
XINYUAN REAL: US Unit Files for Chapter 11 Bankruptcy
-----------------------------------------------------
Bloomberg News reports that a subsidiary of Chinese developer
Xinyuan Real Estate Co Ltd. has filed for Chapter 11 bankruptcy
protection in the Southern district of New York court, according to
a court filing.
Hudson 888 Owner LLC, whose business is "single asset real estate,"
filed the petition, according to the court document dated Jan. 8,
Bloomberg relates. Its estimated liabilities and assets are both
within the range of $100 million to $500 million, the filing
shows.
Hudson 888 Owner is a US unit of Xinyuan, according to a document
on the SEC website.
Like many distressed Chinese developers, Xinyuan fell into distress
in 2022 and didn't make an interest payment in October that year,
according to Bloomberg. It did a dollar debt exchange in June 2023
and hired Alvarez and Marsal as its restructuring adviser.
Xinyuan Real Estate Co., Ltd., together with its subsidiaries,
engages in residential real estate development in the People's
Republic of China, the United States, and internationally. It
develops residential projects, such as multi-layer apartment
buildings, sub-high-rise apartment buildings, high-rise apartment
buildings; and auxiliary services and amenities, such as retail
outlets, leisure and health facilities, kindergartens, and schools,
as well as office, mixed-use, and commercial properties. The
company also acquires development sites through public auctions of
government land and direct negotiations. In addition, it provides
property management services for its developments and other real
estate-related services. Further, the company offers landscaping
engineering and management, real estate consulting and marketing,
leasing management, management consulting, and technical services;
operates retail stores; and installs intercom systems.
[*] CHINA: Closes Local Government Offshore Financing Loophole
--------------------------------------------------------------
Reuters reports that Chinese regulators have closed a regulatory
loophole that last year allowed heavily indebted local government
financing vehicles (LGFVs) to further increase their borrowing,
four sources familiar with the matter told Reuters.
LGFVs, set up by Chinese local governments to fund infrastructure
investment, have been told to stop issuing offshore bonds with a
364-day duration, the sources said.
Their combined debt has ballooned to roughly $9 trillion, posing a
major risk to China's slowing economy, and Beijing has rolled out
several measures to reduce local government debt risks, with new
issuance of LGFV debt now tightly regulated, according to Reuters.
Reuters says the latest guidance comes after a rush by many LGFVs
to raise 364-day offshore bonds, seemingly in a bid to circumvent
regulation that requires them to seek approval for borrowing
outside China with maturities longer than a year.
According to Reuters, China's State Administration of Foreign
Exchange (SAFE) said in a statement to Reuters it had not
introduced new cross-border financing policies, adding that it will
"actively cooperate with relevant departments to reduce LGFV risks,
by strictly controlling new borrowings while dissolving outstanding
debts".
LGFVs have found onshore financing challenging, and they also have
to seek approval from regulators such as the National Development
and Reform Commission (NDRC) to issue offshore debt, unless the
tenor of the bond is less than a year, Reuters relays.
Reuters adds that the NDRC published regulations on medium and
long-term foreign debt in January 2023, but said offshore debt
financing with maturities of less than one year did not need
approval.
=========
I N D I A
=========
ADINATH SORTEX: CRISIL Moves B+ Debt Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Adinath Sortex (AS) to 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Warehouse Receipts 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with AS for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of AS to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from AS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on AS is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the rating on bank facilities of AS migrated to
'CRISIL B+/Stable Issuer Not Cooperating'.
AS, set up in 2013, is engaged in the business of processing and
sorting of various agro-commodities like wheat, maize, Soyabean
meal and under the brand name of 'Rumali Roti', 'YES BOSS' and
'Missi Roti'. It is promoted by Mr. Shobhag Mal Chajjed and, Mr.
Pankaj Sancheti. It has processing and sorting plant at Nimbahera
near Chittorgarh, Rajasthan.
AIMS OXYGEN: CARE Lowers Rating on INR10cr LT Loan to B
-------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
AIMS Oxygen Private Limited (AOPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE B+; Stable and moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from AOPL to monitor
the rating vide e-mail communication dated December 29, 2023,
December 1, 2023, November 20, 2023, November 6, 2023, October 20,
2023, September 6, 2023, September 4, 2023, August 21, 2023, July
21, 2023 and numerous phone calls. However, despite repeated
requests, the company has not provided requisite information for
monitoring the rating. Further, the AOPL has also
not submitted the No Default Statements (NDS) for the months ending
October 2023, November 2023 and December 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. The ratings on AOPL's bank facilities will
now be denoted as CARE B; Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings assigned to the bank facilities of AIMS Oxygen Private
Limited (AOPL) have been revised on account of nonavailability of
requisite information. The revision also factored in decline in
financial risk profile of the company marked by decrease in scale
of operation with profitability during FY23 (Audited, FY refers to
period April 1 to March 31) and deterioration in capital structure
as well as debt coverage indicators.
The rating also factored in competitive nature of the industrial
gas industry and Vulnerability of the business risk profile to any
downturn in its end-user industry. However, the rating derives
benefit from experienced Promoters with long track of operations in
the industry and stable demand outlook of Industrial gases.
Analytical approach: Standalone
Outlook: Stable
Detailed description of the key rating drivers:
At the time of last rating on January 23, 2023 following were the
rating strengths and weaknesses (updated from information
available from registrar of companies).
Key weaknesses
* Decline in scale of operations and profitability: The scale of
operations marked by total operating income (TOI) has decreased,
however remained small at INR13.77 Crores in FY23 as compared to
19.02 Crores in FY22. Further, Net worth base of the company also
remained modest at INR4.47 crores as on March 31, 2023. AOPL's
profitability also declined during FY23 but remained moderate as
represented by PBILDT margin of 10.68% as against 19.79% during
FY22. The decrease was on account of high cost of material on
proportionate basis. Consequently, with higher interest and
depreciation cost incurred during the year, PAT margin has also
declined and remained thin at 0.33% in FY23 as against 13.06%
during FY22.
* Deterioration in capital structure as well as debt coverage
indicators: The capital structure of the company deteriorated as a
result of increase in overall debt and remained leveraged marked by
an overall gearing of 1.99 times as on March 31, 2023 as against
1.52 times as on March 31, 2022. Further, as a result of decline in
profitability along with moderation in capital structure, debt
coverage indicators of the company also deteriorated and remained
modest as marked by interest coverage of 2.24 times in FY23 as
against 6.65 times during FY22 and total debt to GCA of 10.81 years
as on March 31, 2023 as against 2.06 years as on March 31, 2022.
* Competitive nature of the industrial gas industry: The industrial
gas industry is highly competitive due to the commoditized nature
of the products and limited product differentiation and the company
faces competition from the Indian subsidiaries of the international
majors and other unorganized players leading to limited ability to
pass on the rise in input cost. However, long distance
transportation is not very viable in the industry and the local
manufacturer has the advantage of freight cost over other players.
* Vulnerability of the business risk profile to any downturn in its
end-user industry: The demand for industrial gasses depends upon
the performance of the manufacturing sector. Any adverse movement
in the industry can adversely impact the performance of AOPL as
well Industrial gases are a consumable product and not a standalone
finished product. Being a derived demand, its growth and
profitability depends on the growth and profitability of user
industries.
Key strengths
* Experienced Promoters with long track of operations in the
industry: Mr. Alerk Ashok Patel is a promoter of the company and
has rich experience of more than 45 years in the industry, through
previous entity AIMS Industries Limited for which demerger was done
in 2017 and then AOPL started operations in 2017. Mr. Sanjay Mistry
looks after manufacturing and overall operations of the business
who has experience of more than 25 years in this industry. Another
promoter, Mr. Anish Alerk Patel, son of Alerk Ashok Patel has more
than 25 years of experience in this industry.
* Stable demand outlook of Industrial gases: Industrial gas market
is expected to grow from USD 91.9 billion in 2021 to USD 148.16
billion in 2028 implying 7.2% CAGR. The growing demand from major
end user industry will contribute the growth of industrial gas
market. Factors positively contributing to the growth are
increasing investment in manufacturing industry, healthcare
industry, increasing industrialization. etc.
Baroda (Gujarat) based AIMS Oxygen Private Limited (AOPL) was
incorporated in January 1986 as a private limited company by
Mr.Alerk Patel, Mr. Anish Patel and Mr Sanjay Kumar Mistry. AOPL
has commenced its operations from October 2017 and is engaged into
manufacturing of industrial and medical gases situated in
Ahmedabad, Surat, Panelav and Rajkot. Company's promoters have 62
years of business experience in this Industry. It started with
small separation plant and has grown to become a multi-branch
filling and distribution entity in the state of Gujarat. It is
manufacturer, supplier and wholesaler of Dissolved Acetylene Gas,
Oxygen, Medical Oxygen, Argon, Nitrogen, Nitrous Oxide, Carbon
Dioxide, Hydrogen, and a Mixture of Gases. Company is also in
trading of various chemicals. for Food and Beverages, Fragrances,
Personal Care, paint, ink and coatings and also trades allied
equipments such as liquid cylinders, medical and industrial
cylinders, Oxygen generator, cylinder valves and so on. Apart from
this it also provides cylinders services which include cryogenic
supply systems, associated engineering, construction, installation,
training and maintenance. As on March 31, 2022, AOPL had total
installed capacity of 5830 cylinders per day.
ANITHA TEXCOT: Ind-Ra Keeps BB Rating in Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anitha Texcot
(lndia) Private Limited's bank facilities' ratings in the
non-cooperating category and has simultaneously withdrawn the same.
The detailed rating actions are:
-- INR250 mil. Fund-based working capital limit* maintained in
non-cooperating category and withdrawn; and
-- INR100 mil. Non-fund-based working capital limit** maintained
in non-cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based
on the best available information.
*Maintained at 'IND BB/Negative (ISSUER NOT COOPERATING)' before
being withdrawn
**Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite repeated requests by the agency
through phone calls and emails, and has not provided information
about interim financial statements, sanctioned bank facilities and
utilization, business plan, and projections for the next three
years, information on corporate governance, and management
certificate. This is in accordance with Ind-Ra's policy of
'Guidelines on What Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Company Profile
Formed in 1998 as a partnership firm, Anitha Texcot commenced its
operations with the trading of cotton yarn, catering to the
knitwear market of Tirupur. Since 2017, the company has been
manufacturing healthcare kits for the governments of Tamil Nadu,
Andhra Pradesh and Telengana.
ANTECH CONSTRUCTION: CRISIL Moves B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Antech Construction Co. (ACC) to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 17 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ACC for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of ACC to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from ACC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on ACC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of ACC
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
ACC was established in 2009 as partnership firm by Mr. Anish
Markose and Mr. Anil Markose. It is engaged in civil construction
works such as construction of roads, bridges, water irrigation,
tunnels etc for state; central government entities located in
Kerala.
ASHIANA DWELLINGS: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Ashiana
Dwellings Private Limited (ADPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 64.81 CARE D; ISSUER NOT COOPERATING
Debentures Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE had, vide its press release dated April 4, 2019; placed the
rating of ADPL under the 'issuer non-cooperating' category as ADPL
had failed to provide information for monitoring of the rating.
ADPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated September 2, 2023,
September 12, 2023, and September 22, 2023. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Analytical approach: Standalone
Users of this rating (including investors, lenders, and the public
at large are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on August 12, 2021, the following were
the rating strengths and weaknesses:
Key Rating Weakness
* Ongoing Delays in Debt Servicing: There are ongoing delays in
servicing of interest obligations of the OCD. The interest payment
due on February 16, 2018 has not been made. This is due to the
tight liquidity position owning to slowdown in real estate market
leading to slow sales and collection from customers.
* Project Execution Risk: ADPL is developing a residential project
by the name of "Asiana Mulberry" with a total saleable area of 8.70
lsf. Out of the total project cost of INR385.42 crore, ADPL had
incurred around 36% till 30th September 2017. Thus, the company is
at nascent stage of project execution and is exposed to significant
amount of project implementation risk.
* Project saleability risk coupled with high dependence on customer
advances for debt repayments: Till 30th September, 2017, the
company had booked only 16% of total saleable area. Furthermore,
out of the total project cost 65% is to be funded through customer
advances. Thus, debt repayments and construction of the project are
highly dependent on fresh sales and timely receipt of remaining
customer advances. Industry Risk: The real estate sector is moving
towards a more rational regime with developers now focusing on
project execution and delivery. Further, with the introduction of
RERA Act, the sector will move ahead to transparent and credible
measures with sustenance for organized players. Moreover, the
expected renewed interest by the banks in funding the developers is
likely to result in the timely completion of the projects. As per
market sentiments the India Real Estate Market may not witness a
sharp reversal in FY17 but its long term the growth prospects
remain strong as the sector continues to remain troubled with
issues of high unsold inventory.
Key Rating Strengths
* Experienced promoters with demonstrated track record of project
execution: The company derives strength from experience of the
promoters – Ashiana Homes Pvt ltd in the real estate sector. The
company has a track record of about 30 years of successful
completion of several real estate projects, including development
of township, group housing, commercial complexes, etc. Till October
2017, AHPL has developed more than 55 lsf of area with 11 completed
projects in the NCR region.
Incorporated in 2014, Ashiana Dwellings Pvt Ltd (ADPL) is an SPV
(Special Purpose Vehicle) of Ashiana Homes Pvt Ltd (AHPL), formed
solely for the purpose of development of 'Ashiana Mulberry'
project. AHPL hold ~80% stake in the company while remaining 20% by
Indiareit; the real estate private equity arm of Piramal Group.
Ashiana Mulberry is a residential and commercial project located in
Sohna with total saleable area of 8.70 lsf (lac square feet).
ASSOCIATED COMPOSITE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Associated Composite Materials Private Limited
17, Community Centre New Friends Colony,
South Delhi - 110065
Insolvency Commencement Date: December 6, 2023
Estimated date of closure of
insolvency resolution process: June 4, 2024
Court: National Company Law Tribunal, New Delhi Bench-III
Insolvency
Professional: Mr. Shamsher Bahadur Singh
48, Sidhartha Apartment
Behind Inder Enclave Rohtak Road
Opposite Jwala Puri No. 5
New Delhi - 110087
Email: shamsher_cs@yhaoo.com
Email: acm.cirp@gmail.com
Last date for
submission of claims: January 2, 2024
B.L. AGRO: Ind-Ra Keeps BB Term Loan Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained B.L. Agro Oils
Limited's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on
the agency's website.
The detailed rating actions are:
-- INR2.750 bil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR770 mil. Term Loan maintained in non-cooperating category
with IND BB/Stable (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
B.L. Agro Oils, incorporated in 1999, is engaged in the trading,
processing and manufacturing of edible oils, namely rice bran,
mustard, soya, refined palmolein and others.
BAGGA LUXURY: CRISIL Moves B- Debt Rating to Not Cooperating
------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of Bagga
Luxury Motorcars LLP (BLML) to 'CRISIL B-/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 7 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with BLML for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of BLML to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from BLML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on BLML is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of BLML
migrated to 'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating'.
BLML was established on April 24, 2015, as a limited liability
partnership firm by Mr Sukhbir Singh Bagga and Ms Khushboo Kaur
Bagga. The firm has dealership of Maserati luxury cars for western
and northern India.
BRIGHT ENGINEERING: Ind-Ra Keeps BB- Loan Rating in NonCooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Bright
Engineering Works's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB-/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR23 mil. Term loan due on July 31, 2024 maintained in non-
cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 1975, Bright Engineering Works manufactures
precision machine parts and assemblies for original equipment
manufacturers. The partners of the firm are Sharan Suttatti and
Mallesh Suttatti. The manufacturing unit is located at Hadapsar in
Pune, Maharashtra.
C.E. TESTING: Ind-Ra Keeps BB Loan Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained C.E. Testing
Company Pvt. Ltd.'s bank facilities' ratings of 'IND BB/Negative
(ISSUER NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The detailed rating actions are:
-- INR50 mil. Fund-based working capital limit* maintained in
non-
cooperating category and withdrawn; and
-- INR70 mil. Non-fund-based working capital limit** maintained
in non-cooperating category and withdrawn.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate, based
on best available information
*Maintained at 'IND BB/Negative (ISSUER NOT COOPERATING)' before
being withdrawn
**Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
Key Rating Drivers
The ratings have been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise, despite repeated requests by the agency
through phone calls and emails, and has not provided information
about interim financial statements, sanctioned bank facilities and
utilization, business plan, and projections for the next three
years, information on corporate governance, and management
certificate. This is in accordance with Ind-Ra's policy of
'Guidelines on What Constitutes Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the lender and
withdrawal request from the issuer. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer
provide analytical and rating coverage for the company.
Company Profile
C.E. Testing Company provides engineering solutions. It was founded
by Madhusudan Nayak in 1985 as a soil testing firm.
CHOICE HATCHERY: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Choice
Hatchery Private Limited (CHPL) to 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.05 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 1.45 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits
COOPERATING; Rating Migrated)
Term Loan 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with CHPL for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of CHPL to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from CHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on CHPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of CHPL
migrated to 'CRISIL B+/Stable Issuer Not Cooperating'.
CHPL was incorporated in 2018, by the promoter Mr Vinay Deswal. The
company is engaged in the business of poultry breeding and
hatching. It has day old chick breeder farms at Bemetra district of
Chhattisgarh.
CLAVECON PRIVATE: Ind-Ra Keeps B+ Loan Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Clavecon (India)
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND B+/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR35 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR5 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR37.85 mil. Term loan due on August 31, 2022 maintained in
non-cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2013, Clavecon (India) manufactures autoclaved
aerated concrete and concrete blocks. It has an installed capacity
of 15,000 cubic meters per month.
ELLENBARRIE TEA: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Ellenbarrie Tea And Industries Limited (ETIL) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 5.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund-
Based Bank Limits 1.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ETIL for
obtaining NDS through letters / emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of ETIL to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from ETIL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on ETIL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of ETIL
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
ETIL, incorporated in 2010, is engaged in plantation and processing
of tea. The company commenced operations in May 2016. The promoter,
Mr. Shanti Prasad Agrawal, is based in West Bengal, and owns a tea
estate, Karala Valley Tea Garden, Dooars.
ESCON ELEVATORS: Ind-Ra Assigns BB+ Bank Loan Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Escon Elevators
Private Limited's (EEPL) bank facilities as follows:
-- INR20 mil. Fund-based working capital limits assigned with
IND BB+/Stable/IND A4+ rating;
-- INR50 mil. Term loans due on March 31, 2027 assigned with
IND BB+/Stable rating; and
-- INR180 mil. Non-Fund-based working capital limits assigned
with IND A4+ rating.
Analytical Approach: Ind-Ra has taken a standalone view to arrive
at EEPL's ratings.
Key Rating Drivers
The ratings reflect EEPL's small scale of operations, as indicated
by revenue of INR852.26 million in FY23 (FY22: INR642.33
million). The revenue rose during the year due to an increase in
the number of orders executed by the company. EEPL generates around
73% of its revenue from the sale of new lifts, 26% from annual
maintenance services and the rest through the modernization of
existing and old systems. In 1HFY24, EEPL booked a revenue of
INR486.56 million. Ind-Ra expects the revenue to grow on a yoy
basis in FY24 based on year to date performance and the improvement
in market reach.
Liquidity Indicator - Stretched: The net working capital cycle
elongated to 33 days in FY23 (FY22: two days) owing to an increase
in the inventory days to 52 days (26 days), as delays in a few
government projects led to higher inventory levels. The firm does
not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements. The cash
flow from operations turned positive at INR55.11 million in FY23
(FY22: negative INR32.33 million), mainly due to an increase in
EBITDA to INR64.25 million (INR43.73 million). Subsequently, the
free cash flow also improved but remained negative at INR16.17
million in FY23 (FY22: negative INR64.92 million) owing to capex of
INR71.28 million undertaken by the company during the year. EEPL's
average maximum utilization of the non-fund-based limits was 75.25%
during the 12 months ended November 2023, which was mainly towards
the furnishing of bank guarantees required for government
contracts. The company also has fund-based working capital limit of
INR20 million, and the average maximum utilization of the same was
only around 7.97% in the 12 months ended November 2023, as its
working capital requirements were adequately met by its internal
cash inflows. The cash and cash equivalents stood at INR28.26
million at FY23 (FY22: INR13.72 million), against scheduled debt
repayments of INR10.4 million, INR11.3 million in FY24 and FY25,
respectively.
The ratings benefit from EEPL's comfortable credit metrics, with an
interest coverage (operating EBITDA/gross interest expenses) of
6.07x (FY22: 12.86x) and a net leverage (adjusted net
debt/operating EBITDAR) of 0.56x (0.74x) in FY23. The interest
coverage deteriorated in FY23 mainly due to an increase in finance
charges to INR10.59 million (FY22: INR3.4 million) on account of
higher utilization of non- fund-based limits. However, the net
leverage improved on account of increase in cash accruals to
INR28.26 million (FY22: INR13.72 million). In FY24, Ind-Ra expects
the credit metrics to improve further, backed by a likely rise in
the absolute EBITDA, led by revenue growth, and scheduled repayment
of term loans.
The ratings also factor in EEPL's healthy EBITDA margins. The
margin rose to 7.54% in FY23 (FY22: 6.81%) on account of an
increase in the revenue share of high-margin products. The ROCE was
15.4% in FY23 (FY22: 12.4%). Ind-Ra expects the EBITDA margins to
remain at similar levels in FY24 due to similar nature of
operations. The margins might be supported by a likely increase in
the proportion of government projects, which offer higher margins
compared to private contracts.
The ratings are supported by the promoters' experience of around
three decades in the manufacturing and installation of elevators,
which has helped the company establish strong relationships with
customers as well as suppliers.
Rating Sensitivities
Negative: Deterioration in the scale of operations, leading to
deterioration in the credit metrics, with the interest coverage
falling below 2.2x,on a sustained basis, and/or the liquidity
profile would be negative for the ratings.
Positive A significant increase in the scale of operations, while
maintaining the overall credit metrics and liquidity profile, on a
sustained basis, could lead to a positive rating action.
Company Profile
Incorporated in 1990 by P. H. Kunnel, EEPL is involved in the
designing, manufacturing and installation of elevators and
escalators as well as the related onsite maintenance support. It
also undertakes modernization of existing and old systems by
providing consultancy services, technical audit and inspection,
repair and replacement of the worn-out parts, and technology
up-gradation. EEPL has 10 offices located in several Indian cities,
including its head office in Mumbai, and branches in New Delhi,
Bengaluru, Hyderabad, Bhubaneshwar, Visakhapatnam, Kochi, Pune,
Kolkata and Kathmandu in Nepal.
FEKARI INFRASTRUCTURE: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------------
Debtor: Fekari Infrastructure Private Limited
Fourth Floor, Madhu Madhav Towers
Laxmi Bhuvan Sqaure,
Dharampeth, Nagpur
Maharashtra, India, 440010
Liquidation Commencement Date: December 16, 2023
Court: National Company Law Tribunal Mumbai Bench
Liquidator: Mr. Raghunath Sabanna Bhandari
Flat No. 501, Raj Atlantis 2,
Opp. S V P High School,
Kanakia, Mira Road,
Thane, Maharashtra - 401107
Email: raghunathsb@yahoo.com
Tel No: 9930016725
402, 4th Floor 'A' Wing,
Push Vinod No.2 S.V. Road,
Borivali West, Mumbai- 400 092
Email: liquidation.fekari@gmail.com
Tel No: 9930016725
Last date for
submission of claims: January 15, 2024
GAMA INFRAPROP: Ind-Ra Moves BB Loan Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Gama Infraprop
Private Limited's bank facilities to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency through phone
calls and emails. Therefore, investors and other users are advised
to take appropriate caution while using the rating. The rating will
appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The detailed rating actions are:
-- INR1,889.50 bil. Term loan due on December 31, 2028 migrated
to non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING) rating;
-- INR300.00 mil. Cash credit (CC) maintained to non-cooperating
category with IND BB/Stable (ISSUER NOT COOPERATING) rating;
-- INR40.00 mil. Bank guarantee (BG) maintained to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR350.00 mil. Letter of credit (LC) migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information. The rating was last reviewed on
November 24, 2022. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.
Company Profile
Gama Infraprop owns and operates a 225MW gas-based combined cycle
power plant in Mahuakheraganj, Kashipur in the Udham Singh Nagar
district of Uttarakhand.
JAI MAA: CARE Lowers Rating on INR3.60cr LT Loan to B+
------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Jai Maa Bagheshwari and Co., as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.60 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Revised from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Short Term Bank 7.40 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. has been seeking information from Jai Maa
Bagheshwari and Co. to monitor the rating vide e-mail
communications dated November 20, 2023, December 5, 2023, December
11, 2023, among others and numerous phone calls. However, despite
repeated requests, the firm has not provided the requisite
information for monitoring the ratings.
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. The rating on Jai Maa Bagheshwari and Co.
bank facilities will now be denoted as CARE B+; Stable; ISSUER NOT
COOPERATING and CARE A4; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating have been revised on account of non-availability of
latest financial and operational data. CARE views information
availability risk as a key factor in its assessment of credit
risk.
Analytical approach: Standalone
Detailed description of the key rating drivers:
At the time of last rating on January 4, 2023, the following were
the rating strengths and weaknesses:
Key rating weaknesses
* Presence in highly regulated liquor industry: Liquor is a state
subject and hence, each state formulates its own policies and there
are no uniform nation-wide laws governing the sector. There are
restrictions on the inter-state movement of liquor and such
movement invites a tax which has a significant bearing on the
pricing of the final product and curtails profitability to a large
extent. Further, the excise duty differs from state to state which
makes it difficult to price products uniformly across all states.
Moreover, few states like Gujarat, Bihar and Nagaland have enforced
a total prohibition on sale and consumption of liquor. Thus, liquor
industry is controlled by the respective State Government in terms
of distribution and taxes etc.
* Partnership constitution of the business: Given the partnership
nature of business, the ability to raise capital and expand
business gets restricted for firm. JMBC being a partnership firm is
exposed to inherent risk of capital withdrawal by partners &
also, the firm being dissolved upon the death/retirement/insolvency
of the partners. Any substantial withdrawals from partner's capital
account would impact the net worth and thereby the gearing levels.
* Tender driven nature of business and Significant dependence on
principal supplier: The MP Govt. excise department opens the
bidding of alcohol distribution rights via online portal, where one
can participate by issuing 5% DD (Demand Draft) of total fee which
is needed for bidding purpose. Then the highest bidder gets the
distribution rights. Here BG (Bank Guarantee) of 10% is used for
achieving the distribution rights. Once the firm gets the tender
then they have to pay the total amount in 12 equal amounts. JMBC
operates in tender-based environment which is characterized by
intense competition and fragmented nature of industry resulting in
moderate operating profit margins for the firm. The growth of
business depends entirely upon the firm's ability to successfully
bid for liquor license and emerge as the highest bidder. Here
principal supplier being the MP State government which opens
bidding for the distribution rights. Thereby exposes to supplier
concentration risk.
* Geographical Concentration with operations confined to Dhar
District of MP State: JMBC firm consists of 3 partners, operating
17 retail shops in Dhar District of Madhya Pradesh State, hence,
the business is exposed to geographical concentration risk. All
sales takes place in those 17 liquor retail shops in Dhar district.
However, MSP being pre-determined by the MP State government, JMBC
earns a stable profit due to difference between MSP and MRP being
constant over the years. Also, JMBC has the option to choose the
liquor they want to sell on their retail shops, making it
favourable to them as such JMBC has the option to sell the high
margin goods to customers and keeping only those which has the
highest sales in the region.
* Small scale of operations; Albeit significant growth in TOI in
FY22: During FY22, TOI of the firm has significantly grown by
108.75% to INR99.13 Crore (vis-à-vis INR47.48 crore in FY21) owing
to successfully bidding for high amount of liquor license. Further,
the networth base of the firm continued to remain low at INR2.84
crore as on March 31, 2022. Despite established track
record of more than a decade of running the business the scale of
operations of the firm continues to remain small, coupled with low
net-worth base, which further limits the financial flexibility of
the firm during exigencies and industry downturn.
Key rating strengths
* Experienced promoters: JMBC was established as a partnership firm
in the year 2020. The operations are managed by Mr. Vijay bahadur
Singh who has an experience of more than 20 years in liquor
industry. He is supported by two other partners Mr. Mahendra Kumar
Gadwal and Mr. Mahesh Malviya, having more than a decade of
experience in liquor industry. The partners look after day-to-day
affairs of the business with support from a shop managing
personnel. Being in the industry for over a decade coupled with the
experience of the promoters, JMBC has established itself as a
reputed liquor seller with its 17 registered retail shops in Dhar
district of MP state.
* Stable Profitability margins, albeit improved in FY22: JMBC being
trading nature of business gets the inventory (alcohol) from
government (MP State excise department) with a fixed MSP and MRP.
Accordingly, the firm is not allowed to buy below MSP or sell above
the MRP, leading JMBC to earn from the difference, and it makes the
profitability margins stable. The PBILDT margin in FY22 improved by
275 bps from 4.93% in FY21 to 7.68% in FY22, primarily led by
better economies of scale.
Jai Maa Bagheshwari and Co. (JMBC) is a Partnership firm formed on
January 2020 situated in Dhar district of Madhya Pradesh (MP). The
firm is engaged into the business of Purchase and sale of liquor
and related products licensed by state Government of Madhya
Pradesh. The firm bids/apply for Liquor license opened by the
excise department of Madhya Pradesh state and after successfully
achieving the tender the firm sells the alcohol from their 17
registered retail shops (Operated by the firm) in Dhar District
across villages or cities.
K2 METALS: ICRA Moves D Debt Ratings to Not Cooperating Category
----------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of K2 Metals
Private Limited to the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 13.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating moved to the 'Issuer Not
Cash Credit Cooperating' Category
Long-term– 4.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating moved to the 'Issuer Not
Term Loan Cooperating' Category
Short term– 10.00 [ICRA]D; ISSUER NOT
COOPERATING;
Non fund based Rating moved to the 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with K2 Metals Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
Incorporated in 2009, KMPL is a Maharashtra-based company involved
in manufacturing of steel wires and galvanised wires in the range
of 0.9 mm to 10.00 mm. The company is promoted by Mr. Rahul
Kulkarni and Mrs. Megha Kulkarni. KMPL, which started operations in
2014, has its manufacturing unit in Jejuri MIDC, Pune with an
installed capacity to manufacture 24,000 MTPA.
KHUSH INFRATECH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Khush Infratech Private Limited
Registered Office:
Block No. 61-E, Kurla Kamgar CHS Ltd.
Kamgar Nagar SG Barve Marg,
Karla East, Mumbai 400024
Principal Office:
94-95, Man Ji Ka Hattha Paota Jodhpur 342006
Insolvency Commencement Date: December 13, 2023
Estimated date of closure of
insolvency resolution process: June 10, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Palak Swapril Desai
Flat No 901, 9th Floor, Park Vistas
Opp. Lallubhai Park,
Near MTNL Andheri (W)
Mumbai 400 058
Email: palakdesai77@gmail.com
Email: cirp.khushinfra@gmail.com
Last date for
submission of claims: December 27, 2023
KLM HOLDINGS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: KLM Holdings Private Limited
D-22 Kh. No 77/14/2 Ground Floor Street
No. 19 BLK-D Rajeev Nagar Extn.
Villagekarala City, Begumpur
North West Delhi - 110086, India
Insolvency Commencement Date: December 6, 2023
Estimated date of closure of
insolvency resolution process: June 13, 2024
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Kamall Ahuja
A-5, 2nd Floor, Gurudwara Marg,
Defence Colony,
New Delhi-110024
Email: nclt.sraassociate@lawmax.in
D-251, Basement Defence Colony
New Delhi - 110024
Email: klmholdingscirp1@gmail.com
Last date for
submission of claims: December 28, 2023
KOHINOOR GINNING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Kohinoor Ginning and Pressing Private Limited
Office No. 108-112, City Pride Building, 1st Floor,
Near Mondha Naka Singnal
Jalna Road
Aurangabad, Maharashtra
India 431001
Insolvency Commencement Date: November 30, 2023
Estimated date of closure of
insolvency resolution process: May 28, 2024 ( 180 Days)
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Manoj Kumar Mishra
Room No. 1406, Building 4B,
New Hind Mil Mhada Sankul,
Ram Bhau Bhogle Marg,
Ghodapdev, Mumbai City,
Maharahstra, MH-400 033, India
Email: manojkmishra95@gmail.com
Email: cirp.kohinoorggpl@gmail.com
Last date for
submission of claims: December 15, 2023
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps D Rating in NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kopargaon
Ahmednagar Tollways Phase 1's senior project term loan in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through phone calls and emails. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR1.560 bil. Senior project bank loan (Long-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information.
The rating was last reviewed on August 4, 2017. Ind-Ra is unable to
provide an update, as the agency does not have adequate information
to review the rating.
Company Profile
Kopargaon Ahmednagar Tollways Phase 1 is a special purpose vehicle
that was incorporated to implement the expansion of a 42.6km
stretch on the Kopargaon Ahmednagar section of State Highway 10 in
Maharashtra to four lanes from two under a seven-year concession
from the state government.
KOTKAPURA MUKTSAR: Ind-Ra Keeps D Loan Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kotkapura
Muktsar Tollways Private Limited's senior project bank loan rating
in the non-cooperating category. The issuer did not participate in
the surveillance exercise despite continuous requests and
follow-ups by the agency through emails and phone calls. Therefore,
investors and other users are advised to take appropriate caution
while using the rating. The rating will continue to appear as 'IND
D (ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR750 mil. Senior project bank loan (Long-term) maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information. The rating was last reviewed on
August 4, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Kotkapura Muktsar Tollways is a special purpose vehicle promoted by
Supreme Infrastructure BOT Holdings Private Limited (48%), Supreme
Infrastructure India Limited (26%) and SPML Infra Limited (26%). It
has been set up to build, operate and maintain a 30-kilometer
stretch on State Highway 16.
MASCOT CEMENT: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Mascot Cement (India) Private Limited
House Name Gelma Krupa No. 2 Udaynagar,
Mavdi Main Road,
Near Yes Collection, Rajkot,
Gujarat, India, 360004
Liquidation Commencement Date: December 16, 2023
Court: National Company Law Tribunal Ahmedabad Bench
Liquidator: Prashant Bharatkumar Patel
51, Hariom Villa,
Near Iscon Flower Flats,
Bopal Guma Road,
Ahmedabad - 380058
Email: prashant167@gmail.com
Tel No: 09824002847
409, West Face
Near Bagbhan Party Plot Cross Road
Zydus Hospital Road
Thaltej, Ahmedabad - 380059
Email: prashant167@gmail.com
Last date for
submission of claims: January 15, 2024
MHOW AGROH: CARE Reaffirms B+ Unsupported Rating
------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Mhow Agroh Pathways Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 115.73 CARE A+ (CE); Negative
Facilities Reaffirmed; Outlook revised
from Stable
Unsupported rating - CARE B+ [Reaffirmed]
Note: Unsupported rating does not factor in the explicit credit
enhancement.
* Rationale and key rating drivers for the credit enhanced debt:
The rating of the bank facility of Mhow Agroh Pathways Private
Limited is based on the credit enhancement in the form of
unconditional and irrevocable corporate guarantee extended by
Prakash Asphaltings and Toll Highways (India) Limited (Rated CARE
A+; Negative/CARE A1).
* Rationale and key rating drivers of Prakash Asphaltings and Toll
Highways (India) Limited (Guarantor): The reaffirmation of the
ratings assigned to the bank facilities of Prakash Asphaltings and
Toll Highways (India) Limited (PATH) continues to derive strength
from the long-established track record of operations,
geographically diversified toll collection revenue profile of the
group along with distribution of revenue across toll collection
contracts (TCC), operations, maintenance and toll (OMT) and
engineering, procurement and construction (EPC) revenue. The
ratings also factor in the satisfactory performance during FY23
with revenue growth led by increased toll collection contracts
secured during FY22-23. However, the same has normalised during the
current fiscal with the TCC segment reporting revenue of INR955
crore during H1FY24 (FY refers to period April 1 to March 31) as
compared with INR1,198 crore during H1FY23. PATH along with its
special purpose vehicles (SPVs) continue to generate healthy cash
surplus with low leverage at group level providing financial
flexibility for PATH. The ratings take note of the timely
completion of the hybrid annuity model (HAM) project under Harda
Pathways Private Limited (HPPL) and completion of acquisition of
debt free project; Rajahmundry Godavari Bridge Ltd (RBGL) which is
expected to add to group surplus going forward. With the concession
of Agra Gwalior Pathways Pvt Ltd (AGPPL) getting over in FY25, the
surplus from HPPL and RGBL shall partially compensate the huge
surplus which the group was receiving from AGPPL.
The ratings further take note of the unrelated debt funded
investments in non-core business operations by the company during
FY23, wherein the company has acquired 63% of the listed
non-convertible debentures (NCDs) of Essel Lucknow Raebareli Toll
Roads Limited (ELRTRL; rated 'CARE BB+; Rating watch with negative
implications'). Given the weakening of credit profile of ELRTRL,
PATH's ability to recover or exit from said investments in near
term shall remain crucial. In view of the same, the outlook on the
rating has been revised to 'Negative' from 'Stable'.
The rating strengths are, however, tempered by exposure to inherent
traffic risk, operations and maintenance (O&M) risk and
regulatory risk associated with toll-based road projects and
continued shortfall funding requirement in two weak SPVs whose debt
is backed by a corporate guarantee (CG) from PATH. Furthermore,
during the current fiscal, the company has also won two under
construction projects, viz., one HAM project and one multimodal
logistics park. The HAM project and phase one of the multimodal
logistics park (out of three phases) are expected to be constructed
over the next two years, i.e., FY25-26 entailing equity investment
of approximately INR213 crore from PATH. Any higher-than-envisaged
equity commitments impacting the overall
cashflow and debt coverage of group shall remain a key rating
sensitivity.
* Key rating drivers of Mhow Agroh Pathways Private Limited: The
unsupported rating assigned to the bank facilities of MAPPL
continue to remain constrained on account of the weak debt
coverage indicators due to low toll income on the project stretch
resulting in reliance on financial support from the guarantor; PATH
for operational expenses and servicing debt obligations.
The rating factors in established track record of the sponsor i.e.,
PATH and support extended by the sponsor. Continuity of such
support shall be important from credit perspective.
Rating sensitivities (Guarantor): Factors likely to lead to rating
actions
Positive factors
* Significant scale up of operations with addition of new assets
while maintaining low leverage on a sustained basis.
* Adequate cash generation from under performing assets on
sustained basis.
Negative factors
* Significant decline in toll collection or increase in major
maintenance expenditure adversely impacting combined debt
service coverage ratio below 1.75 times (average).
* Exposure to large sized HAM projects or other projects
adversely impacting the funding requirement of the group.
* More than envisaged delay in exiting/recovery of debt funded
non-core investments in ELRTL
* Change in management's stance in supporting underperforming
special purpose vehicles (SPVs) of the group.
Analytical approach:
* Credit Enhancement (CE) rating: Assessment of the guarantor
Prakash Asphaltings and Toll Highways (India) Limited. CARE has
analysed MAPPL's credit profile by considering credit enhancement
provided by an unconditional and irrevocable corporate guarantee
extended by PATH to the lenders of MAPPL.
* Analytical Approach of Guarantor (PATH): Standalone while
factoring the short fall support and equity commitments to the
SPVs. CARE Ratings has also considered the surplus that is
available from SPVs (as listed below) which can be up streamed to
PATH or other group SPVs for funding the equity
commitments/shortfall requirements. In the past the operational
SPVs have unstreamed surplus for funding the equity commitment or
to provide cash fall support to weaker entities. PATH is also
expected to extend corporate guarantee to under construction
projects. Hence, CARE Ratings has considered combined cash flows of
all SPVs to arrive at combined debt coverage indicators of PATH
group.
Outlook: Negative
The Outlook for the rating has been revised to 'Negative' on
account of the debt-funded unrelated investment in non-core
business operations with acquisition of 63% of the listed NCDs of
ELRTRL. Given the weakening of credit profile of ELRTRL PATH's
ability to recover or exit from this debt funded investment shall
remain crucial. The outlook may, however, be revised to 'Stable' if
the group is able to recover or exit from the said debt instrument
in timely manner.
Detailed description of the key rating drivers (PATH, Guarantor)
Key strengths
* Established track record and moderate order book position: PATH
is one of the leading players in the toll collection business and
has a track record of more than three decades. It is mainly
engaged in undertaking TCC, Toll-OMT contracts and TOT contracts
for NHAI and various state authorities. The company also undertakes
EPC work of small to mid-sized roads projects. PATH has 9 SPVs, one
under construction HAM project and one underconstruction
multimodal logistics park as on September 30, 2023.
The company has TCC order book of INR2,744 crore as on August 31,
2023, and EPC order book of INR1,480 crore providing revenue
visibility for the medium term. EPC work orders are mostly
undertaken for group projects. Going forward, the operations in TCC
segment are expected to remain stable with the large volume of
operational HAM projects of National Highways Authority of India
(NHA) which provides growth opportunities for TCC players despite
launch of InvIT by NHAI.
The execution and operations of PATH are being looked after by Mr.
Nitin Agarwal who has experience of over 38 years in the industry.
He is assisted by the second line of management viz. Mr. Nipun
Agrawal, having experience of more than 12 years and Mr. Saksham
Agrawal having experience of more than 7 years in this business,
along with few family members and a team of professionals.
* Healthy toll collections in OMT and TOT project: PATH has two
operational OMT projects structured in its balance sheet viz.,
Pathankot – Jalandhar (PJ-OMT) in the state of Punjab which
commenced toll collection in March 2017 and Jhansi – Orai
(JO-OMT) in the state of Uttar Pradesh which commenced toll
collection in October 2016. Toll collection was suspended on
Pathankot- Jalandhar (P-J) from September 2020 due to farmer's
agitation and as a result the collections were lower in FY21 and
FY22. The collection resumed from December 2021 which along with
increase in traffic/toll rates resulted in significant growth in
collection during FY23. With resumption of collections and as well
increase in traffic/toll rates, the collections grew by 2.42 times
during FY23 and stood at INR171 crore as against INR50 crore in
FY22. The projects are generating adequate surplus which along with
low debt level and balance concession tenor of 3-4 years are likely
to augment the cashflow of PATH.
Apart from OMT projects, PATH has 1 TOT project viz., Vidyasagar
Setu in the state of West Bengal, structured in its balance sheet.
Toll collection for the project commenced from October 1, 2019, and
after witnessing slowdown in FY21/22 due to covid impact, the
average toll collections bounced back from FY23. Average toll
collection per day has increased from INR25.98 lakhs in FY21
(excluding covid lockdown period) to INR27.40 lakhs in FY22 and
INR30.41 lakhs in FY23.
* Satisfactory financial performance and debt coverage: Total
operating income (TOI) during FY23 doubled from INR1,556 crore in
FY22 to INR3,244 crore in FY23 led by increased contribution from
TCC segment. The revenue mix between TCC, OMT and EPC stood at
76:14:10 for FY23. Profit before interest, lease, depreciation and
taxes (PBILDT) margins have moderated from 12.01% in FY22 to 8.21%
in FY23 mainly on the account of higher contribution from low
margin TCC segment (contribution of 73% to TOI in FY23 vs 59% in
FY22), Going forward, the contribution from TCC segment is likely
to normalise. The performance remained satisfactory during H1FY24
with revenue of INR1,334 crore and PBILDT margin of 9.65% in
H1FY24.
The capital structure and debt coverage has also been comfortable
with overall gearing at 0.48x as on Mar 31, 2023, and Total
debt/PBILDT at 1.62x in FY23.
* Satisfactory profile of SPVs with generation of healthy surplus:
PATH has a portfolio of 9 operational projects, of which 6 projects
have a sustainable operational track record and one project viz.
Harda Pathways Private Limited has recently achieved PCOD. These
projects are self-sufficient and do not require any cashflow
support with surplus from assets available for up streaming to PATH
post debt servicing. Total debt at the 9 operational SPVs was
around INR465 crore as on March 31, 2023, against which the
collections/annuity receipts was around INR626 crore during FY23
indicating a comfortable debt/(revenue ratio) of 0.74x. During
FY23, the company had acquired RGBL, a bridge built on the Godavari
which connects Rajahmundry and Kovvur in Andhra Pradesh for INR431
crore via NCLT proceedings. The project has no
debt in its book and is expected to generate healthy surplus for
the group from FY24 onwards. With the concession of Agra Gwalior
Pathways Pvt Ltd getting over in FY25, the surplus from HPPL and
RGBL shall partially compensate the huge surplus which the group
was receiving from AGPPL. Hence, PATH's ability to secure new
projects while maintaining leverage shall remain
crucial.
Key weaknesses
* Debt-funded investments in no-core business operations of a
weaker entity: During FY23, the company has made debt funded
investments in non-core business operations with acquisition of 63%
listed NCDs of ELRTRL from its existing lenders. PATH has sent
notice for steep hike in coupon rate post acquiring around 50% of
NCDs and it is awaiting approval from majority NCD holders. Given
the weakening of credit profile of ELRTRL, PATH's ability to
recover or exit from said investments in near term shall remain
crucial.
* Funding requirement in two operational SPVs and equity
commitments: The group has two weak assets namely Mhow Agroh
Pathways Private Limited and Khandwa Agroh Pathways Private Limited
wherein surplus generation is low on account of significantly low
toll collection. Hence shortfall support is required in such SPVs
and CARE expects PATH to fund the shortfall on continued basis.
The company has recently won a HAM project and a multimodal
logistics park tender which shall be developed over the next 3
years. The logistic park shall be developed in three phases,
wherein the first phase is expected to be completed in two years.
Equity commitment for the said projects is INR213 and spread across
the FY25-27. Timely financial closure and satisfactory project
progress would be important from credit perspective.
Any aggressive debt funded acquisitions, going forward, thereby
impacting the cashflow position and debt coverage would be a key
ratings sensitivity.
* Intense competition along with inherent traffic risk, regulatory
risk and O&M risk associated with toll projects: Toll road projects
are exposed to inherent traffic risk due to errors in the
estimation of traffic at the time of bidding, the threat from
alternate routes, competing facility and economic slowdown.
Further, state highways projects are also exposed to inherent
regulatory risk due to past instances of toll exemption of cars
announced by some of the states. Concessionaire is also required to
undertake O&M and MM activity on the stretch for maintaining good
riding quality. This exposes the company to the inherent O&M risk
of higher than envisaged cash outflow towards the maintenance of
project stretches.
Further, TCC segment has high competition with low capital
requirement resulting in low entry barriers for the new players to
foray in s segment. The market is fragmented with both large and
small players looking for a share in the OMT as well as toll
collection contracts.
Liquidity: Adequate
The liquidity is comfortable with low debt level and adequate cash
accrual generation. The liquidity profile also derives comfort from
significant surplus cash flow generation in SPVs, aiding the
financial flexibility of the group. The average utilization of its
fund-based working capital limits also remained at 65% during the
trailing 12 months ended October 2023.
Assumptions/Covenants: Not Applicable
Environment, social, and governance (ESG) risks: Not Applicable
* Adequacy of credit enhancement structure: The guarantee provided
by PATH for the bank facilities of MAPPL is unconditional and
irrevocable and covers the entire rated amount for the entire tenor
of the debt. The credit enhancement is being considered as RBI has
permitted the previous approach of factoring the credit enhancement
based on the existing corporate guarantee till the residual tenure
of the loan.
About the Credit Enhancement Provider
Promoted in 1996 by the Agrawal family of Indore, Prakash
Asphaltings and Toll Highways (India) Limited (PATH) is engaged in
road construction activities, along with the collection of toll
through TCC, TOT, BOT & OMT projects. Furthermore, PATH has 9
operational SPVs and 2 under construction SPVs as on September 30,
2023. Operational SPV's constitute a mix of toll (BOT),
annuity and OMT projects.
About the company - Mhow Agroh Pathways Private Ltd. (MAPPL)
Incorporated in July 2011, Mhow Agroh Pathways Private Ltd. (MAPPL)
is a special purpose vehicle (SPV) sponsored by PATH group (60%
stake in MAPPL) and Agroh Infrastructure Developers Private Limited
(40% stake) to undertake two-laning of RauMhow-Mandleshwar road
from chainage of 14.780 km (near Rau) to 0.00 km (Mandleshwar) on
State Highway 38 (SH-38) in Madhya Pradesh. Length of the tollable
stretch is approximately 69.40 km.
The project was concessioned by Madhya Pradesh Road Development
Corporation Ltd on design-build-finance-operate-transfer (DBFOT) -
toll basis for a period of thirty years from the appointed date
viz. June 18, 2012. The project comprises two road stretches. MAPPL
achieved provisional COD for section-I of the project from Rau to
Mhow on February 3, 2014, and started toll collection on this
section from this date. Final completion certificate for this
stretch was received on June 6, 2014.
NAYAK INFRASTRUCTURE: Liquidation Process Case Summary
------------------------------------------------------
Debtor: Nayak Infrastructure Private Limited
Registered Office:
Swarpanada Road Lumding Dist
Nagaon Lumding,
Assam - 782447, India
Principal Office:
2nd Floor, Kamakhya, Commercial C.K Road,
Panbazar Guwahati-781001,
Assam, India
Liquidation Commencement Date: December 11, 2023
Court: National Company Law Tribunal Guwahati Bench
Liquidator: Sudha Sarma
Sudha and Associates 185
MRD Road, Bamuimaidam,
Guwahati 781021, Assam
Email: sudha.sarma@yahoo.com
Email: liquidator.nayak@gmail.com
Last date for
submission of claims: January 7, 2024
NJR CONSTRUCTIONS: ICRA Keeps B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Njr Constructions Pvt. Ltd. in the 'Issuer Not
Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 33.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term- 40.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Njr Constructions Pvt. Ltd., ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Established in 1990 as a sole proprietorship firm and later
constituted as a private limited company in 2009, NJR Constructions
Private Limited (NJR) is engaged in execution of civil work orders
mainly construction of building, bridges and roads for State and
Central Government departments like Central Public Works Department
(CPWD), Greater Hyderabad Municipal Corporation (GHMC), Andhra
Pradesh Housing Board (APHB), Central Warehousing Corporation
(CWC), Hindustan Petroleum Corporation Limited (HPCL) etc. NJR is
registered as Class 1 contractor with CPWD and is also registered
as a special class contractor with the government of Andhra Pradesh
and Telangana. The company's promoters have extensive experience in
civil construction industry.
OM PAPER: CRISIL Moves B Debt Ratings to Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Om
Paper Mill - Hosur (OPMH) to 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Long Term Loan 16 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with OPMH for
obtaining NDS through letters/emails dated October 31, 2023 and
November 30, 2023, December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of OPMH to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from OPMH, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on OPMH is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of OPMH
migrated to 'CRISIL B/Stable Issuer Not Cooperating'.
OPMH was established as partnership firm in 2016. It has recently
set up kraft paper manufacturing unit at Hosur-Tamil Nadu. OPMH has
started its commercial operation from June 2020 and owned by Mr.
Amruthlal Patel, Mr. Kantilal Patel, Mr. Ravj Patel, Mr. Jaiprakash
D. Patel and Mrs. Daksha D. Patel.
PARAGON ORGANICS: CRISIL Lowers Rating on INR5.5cr Term Loan to B
-----------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Paragon Organics (PO) to 'CRISIL B/Stable' from
'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Term Loan 5.5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The ratings downgrade reflects the stretched liquidity and lower
net cash accruals against the term debt obligation which is a
result of lower than expected demand and fluctuation in the raw
material prices. CRISIL Ratings believes that improvement in
operating margins and financial risk profile will remain key rating
sensitivity factor.
The ratings reflect susceptibility to fluctuations in raw material
prices, intense competition and regulatory changes, large working
capital requirement and highly leveraged capital structure. These
weaknesses are partially offset by the extensive experience of the
partners in the bulk drugs industry.
Analytical Approach
CRISIL Ratings has considered a standalone approach for the rating
exercise of PO.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to fluctuations in raw material prices, intense
competition and regulatory changes: The bulk drugs industry is
highly competitive owing to presence of numerous domestic as well
as global players, which exerts pricing pressure. This necessitates
the firm to remain cost competitive to maintain profitability.
* Working capital intensive operations: Gross current assets were
at 190-260 days over the three fiscals ended March 31, 2023. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 203 days as on March 31, 2023. It's large
working capital requirements arise from its high debtor and
inventory levels. It is required to extend long credit period.
Furthermore, due to its business need, it holds large work in
process & inventory.
Strength:
* Extensive experience of the partners: The partners have
experience of over two decades in the bulk drugs industry. This has
given them an understanding of market dynamics and enabled
established relationships with suppliers and customers.
Liquidity: Stretched
Bank limit utilization is high at around 88.12 percent for the past
12 months ended November-2023. Cash accrual are expected to be
over INR1.50 crore which are sufficient against term debt
obligation of INR1.38 crore over the medium term. In addition, it
will be act as cushion to the liquidity of the company.
Current ratio are low at 0.96 times on March 31, 2023.
Outlook: Stable
CRISIL Ratings believe PO will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients. Improvement in the financial risk profile and
profitability will remain a key monitorable factor.
Rating Sensitivity factors
Upward factors:
* Sustained improvement in margins to 14-15% and scale, leading to
higher profit.
* Improvement in working capital cycle, with gross current assets
improve to 150 days.
Downward factors:
* Further decline in profitability below 8% or further stretch in
working capital cycle
* Large debt-funded capital expenditure weakens capital structure
PO was established in 1997. PO is manufacturer and exporter of
active pharmaceuticals ingredients & bulk drugs. PO manufacturing
facility is located in Village Luna, Ta Padra, Dist Vadodara,
Gujarat with an installed capacity of480 MT/PA
PO is owned & managed by Mr. Ripal N Patel, Mr. Vinay Sheta, Mr.
Dinesh Sheta, Mr. Jayesh Patel and Mr. Bipin Nakrani.
PRATIBHA SYNTEX: Ind-Ra Keeps BB Loan Rating in NonCooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Pratibha Syntex
Limited's instrument(s) rating in the non-cooperating category. The
issuer did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on
the agency's website.
The detailed rating actions are:
-- INR2.7 bil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR200 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR2,592.4 bil. Term loan due on March 31, 2022 maintained in
non-cooperating category with IND BB/Stable(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Established in 1997, Pratibha Syntex is promoted by S. K.
Chaudhary. The company has gradually increased its presence across
the textile value chain and has a fully integrated facility,
including spinning (cotton & blended yarn), knitting (cotton grey
fabric), dyeing (cotton dyed fabric) & garmenting (casual wear &
inner wear) in Pithampur, Madhya Pradesh.
PREMIUM SERUMS: ICRA Reaffirms B+ Rating on INR15.34cr Term Loan
----------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Premium
Serums & Vaccines Pvt. Ltd. (PSVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 5.00 [ICRA]B+ (Stable); reaffirmed
Fund-based
Limit
Long-term– 15.34 [ICRA]B+ (Stable); reaffirmed
Fund-based–
Term Loan
Rationale
The rating reaffirmation factors in PSVPL's established track of
operations and extensive experience of its promoters in the serum
business. The company markets its key products, anti-snake venom
serum (ASVS) and anti-rabies serum (ARS), in both domestic and
export markets. Over the years, PSVPL has developed a customer base
that includes various state government bodies as well as overseas
clients across Asia and Africa. Moreover, the complex manufacturing
process and strict regulations in the industry act as entry
barriers, leading to limited competition.
The rating, however, is constrained by the average financial risk
profile of the company marked by a stretched liquidity position,
modest internal accrual generation, low net worth level and
relatively high long-term debt levels, resulting in a weak capital
structure and coverage indicators. The company has generated
healthy revenue growth in FY2023 and H1 FY2024, the sustenance of
growth with strong margin will support the improvement in credit
metrics over the medium term. ICRA also notes the support provided
by PSVPL's promoters in the form of interest-free loans to support
its liquidity position. The rating also factors in the high working
capital intensity of operations due to high inventory and
receivable levels; and exposure to exchange rate fluctuation risks,
given that exports account for a sizeable part of PSVPL's
revenues.
The Stable outlook on the rating reflects ICRA's opinion that PSVPL
will benefit from its established operational track record and
steady demand outlook for its products, enabling it to scale up its
operations and accrual generation.
Key rating drivers and their description
Credit strengths
* Extensive experience of its promoters in the businesses: PSVPL is
promoted by Dr. Girish Kolwankar and Dr. Shyam Dhawan,
veterinarians with extensive experience of ~15 years in the
business. The strong experience of the promoters has helped the
company to maintain healthy relationships with its customers.
* Customer base includes reputed global organisations: PSVPL has a
presence in Asia and Africa, which are the major markets for ASVS
and ARS. It has a reputed customer base, which includes state
government departments in India and government departments of
various countries in Asia and Africa. The company's manufacturing
facility are certified by WHO-GMP1, which helps it to receive
approval from various countries to export its products.
Credit challenges
* Average financial risk profile: The company's financial risk
profile is average due to low internal accrual owing to its modest
scale of operations (revenue of Rs. 39.2 crore per annum in FY2023)
and volatility in margins, low net worth base, and high long-term
debt, resulting in a weak capital structure and coverage indicators
as indicated by TD/OPBITDA of 4.0x and interest coverage of 2.5x.
ICRA expects improvement in PSVPL's capital structure and coverage
indicators to be supported by higher accrual generation in the near
to medium term.
* High working capital intensity of business: The working capital
intensity (NWC/OI) of business remained high at ~26% as on March
31,2023, because of the high inventory holding period and
receivable days.
* Exposed to fluctuations in exchange rates: The company derives a
significant share of its revenues from exports, exposing its
margins to exchange rate fluctuations. In FY2023, the company
generated about 64% of its revenue from exports (40% in FY2022).
ICRA expects PSVPL's export revenue to increase in the near to
medium term.
Liquidity position: Stretched
PSVPL's liquidity position is stretched as reflected by modest
accrual generation and limited buffer as on September 30, 2023, in
the form of unutilised working capital limits availed from the
bank. The company has scheduled debt repayments of Rs. 3.0 crore in
FY2024 and Rs 2.5 crore in FY2025, which are expected to be funded
through cash accruals, existing cash balance and release of working
capital.
Rating sensitivities
Positive factors – ICRA may upgrade the rating if the company is
able to improve its scale of operations while maintaining its
healthy margins, leading to improvement in the financial profile
and liquidity position.
Negative factors – Pressure on the company's rating could arise
if there is a sizeable decline in its revenues and profitability,
leading to a further weakening of net worth, debt protection
metrics and liquidity.
PSVPL was established in 2009 by Dr. Shyam Dhawan and Dr. Girish
Kolwankar. The company is engaged in manufacturing anti-snake venom
serum and anti-rabies serum at its facility in Narayangaon
(Maharashtra).
Q2Q SOLUTIONS: ICRA Withdraws B+ Rating on INR70cr LT Loan
----------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Q2Q Solutions Private Limited at the request of the company.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the rating was last reviewed. The
Key Rating Drivers, Liquidity Position, Rating Sensitivities, Key
financial indicators have not been captured as the rated
instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 70.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Withdrawn
Q2Q Solutions Private Limited was incorporated in 2010 by Mr.
Chandresan S., with an objective to set-up a precision component
manufacturing facility. The factory is located at Madras Export
Processing Zone (MEPZ), Tambaram-Chennai and is spread over an area
of 75,000 square feet. The precision-components to be manufactured
by the company will cater to the aerospace industry and auto
industry, among others. Apart from precision-machined components,
the factory is also equipped for manufacturing sheet metal
components and to undertake subassemblies of precision parts. The
trial run started in February 2018 and the full-fledged commercial
operation is yet to commence.
R K S HOME: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: R K S Home Solutions Marketing and Consultancy Pvt Ltd
601, Vasudeo Chambers,
Mulund Goregaon Link Road,
Opposite to D-Mart,
Bhandup 400078, Mumbai City,
Mumbai, Maharashtra,
India, 400078
Insolvency Commencement Date: November 10, 2023
Estimated date of closure of
insolvency resolution process: May 8, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Udaykumar Bhaskar Bhat
B-304, Goldville Appartments Dange Chowk
Aundh Ravet Road
Thergaon Pune - 411033
Email: udaybhat2805@gmail.com
Email: cirp.rkshomes@gmail.com
Last date for
submission of claims: November 25, 2023
R R INFOPARK: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: R R Infropark Private Limited
RP Skyline, Ambattur Industrial Estate,
Ambattur, Chennai - 600058 India
Insolvency Commencement Date: December 12, 2023
Estimated date of closure of
insolvency resolution process: June 9, 2024
Court: National Company Law Tribunal, Navi Mumbai Bench
Insolvency
Professional: Sujata Chattopadhyay
710, Mayuresh Cosmos, Sector 11,
CBD Belapur,
Navi Mumbai - 400 614
Email: sujata@associates.co.in
Email: ip.rr.infopark@gmail.com
Last date for
submission of claims: December 26, 2023
RANSAN PACKAGING: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Ransan Packaging Private Limited
New No. 11, Old No. 7 Kailasam Street Tondiarpet,
Chennai, Tamil Nadu, 600081
Insolvency Commencement Date: December 14, 2023
Estimated date of closure of
insolvency resolution process: June 11, 2024
Court: National Company Law Tribunal, Chennai Bench
Insolvency
Professional: S Kasi Vishwanathan
No 8 Mahalakshmi Layout,
422/2 Subramaniam Palayam,
Gnanambikai Mills Post,
Coimbatore - 641029
Email: kasi.s@gopalaiyer.in
Email: cirp.ransanpackaging@gmail.com
Last date for
submission of claims: December 28, 2023
RKB GLOBAL: CRISIL Withdraws B+ Rating on INR113.5cr Loan
---------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
RKB Global Ltd (RKB) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D' and subsequently withdrawn the ratings as requested by
the company, and on receipt of no-objection certificate from the
banker. The rating action is in line with the withdrawal policy of
CRISIL Ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 32.5 CRISIL B+/Stable (Upgraded
from 'CRISIL D'; Rating
Withdrawn)
Letter of Credit 113.5 CRISIL B+/Stable (Upgraded
from 'CRISIL D'; Rating
Withdrawn)
Letter of Credit 1.5 CRISIL A4 (Upgraded from
'CRISIL D'; Rating Withdrawn)
The upgrade is due to improvement in the financial risk profile
because of increase in networth from the sale of three properties,
and raising of funds through issuance of compulsorily convertible
preference shares (CCPS) for an amount of INR33.10 crores to
private investors during the period 01.04.2023 to 31.10.2023.
Through the sale of properties, the company has received around
INR36.77 crores from which company has prepaid loans of around
INR11.37 crores. Due to the said events the networth has been
improved significantly to around INR85 crore as on September 2023,
Improvement in networth and prepayment of term loan have led to
Improvement in the financial risk profile has led to moderate
gearing and total outside liabilities to tangible networth (TOLTNW)
ratio.
The ratings reflect the company's average financial risk profile,
volatility in operating margin and large capital expenditure
(capex). These weaknesses are partially offset by the extensive
experience of the promoters in the steel trading business and
diversified product and customer profiles.
Analytical approach
Unsecured loans have been treated as debt
Key rating drivers and detailed description
Weaknesses:
* Average financial risk profile: Gearing was 1.90 times and total
outside liabilities to adjusted networth ratio was 3.86 times as on
March 31, 2023. Debt protection metrics were also modest, with
interest coverage and net cash accrual to total debt ratios of 2.10
times and 0.10 time, respectively, for fiscal 2023. Despite the
capex, the financial risk profile is expected to improve over the
medium term.
* Susceptibility of operating margin to volatility in raw material
prices, and vulnerability to cyclicality in end-user industries:
Production cost and profitability depend on raw material prices.
Volatility in raw material prices has led to fluctuations in the
operating margin of RKB. Furthermore, profitability is linked to
the fortunes of the inherently cyclical steel industry, which has a
strong correlation with the gross domestic product. The operating
performance of RKB will remain susceptible to volatility in raw
material prices and offtake by key user sectors.
* Large capex: The company is planning capex of INR20-30 crore in
the next 2-3 years for expanding its manufacturing facility. Out of
this, 75% will be funded through bank debt which may further impact
the capital structure. Steady increase in revenue and operating
margin will remain key monitorables.
Strengths:
* Extensive experience of the promoters: The promoters have more
than three decades of experience in the steel industry; their
strong understanding of market dynamics and healthy relationships
with customers and suppliers should continue to support the
business. The extensive experience of the promoters, healthy
customer base and increasing manufacturing turnover will support
the business risk profile over the medium term.
* Well-diversified product and customer profiles: The company has
ventured into manufacturing roofing sheets, bright bar, profiling,
and drum corrugation Diverse product base mitigates risks
associated with dependence on a single product. RKB has a strong
customer base, comprising more than 200 clients across India.
Liquidity: Stretched
Bank limit utilisation was high at 99% on average for the 12 months
through October 2023. Cash accrual is projected at INR11-15 crore
per annum, against term debt obligation of INR0.6-3.6 crore over
the medium term. The current ratio was moderate at 1.22 times as on
March 31, 2023. Cash and bank balance were INR21.96 crore as on
March 31, 2023.
Outlook: Stable
RKB will continue to benefit from the extensive experience of its
promoters.
Rating Sensitivity factors
Upward factors:
* Sustained revenue growth and operating margins, leading to higher
cash accruals
* Improvement in Bank limit utilization to less than 90%
Downward factors:
* Decline in revenues and operating margin, leading to cash
accruals below INR4 crores
* Further stretch in the working capital cycle, increasing bank
limit utilization.
Established as a partnership firm called Rajankumar & Bros (Impex)
in 1978, it was reconstituted as a public limited company with the
current name in December 2013. The company trades in steel plates,
and hot-rolled and cold-rolled coils; it also manufactures drum
corrugation, profiling, bright rod and wire rod. Mr Virat Shah and
his son, Mr Alok V Shah, manage the operations.
RURAL IMPROVEMENT: Ind-Ra Gives B Loan Rating, Outlook Stable
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Rural Improvement
Project's (RIP) proposed bank loans as follows:
-- INR50 mil. Proposed bank loans assigned with IND B/Stable
rating.
Analytical Approach: Ind-Ra has considered RIP's standalone
financials while assigning the rating.
Key Rating Drivers
The ratings reflect RIP's small scale of operations, with total
outstanding loans and advances of INR6.15 million in FY23 (FY22:
INR10.40 million; FY19: INR18.12 million). Lending micro credit
loans to self-help groups (SHGs) is RIP's major source of revenue.
However, the scale of operations remains very low on account of the
trust's geographical concentration as it mainly caters to SHGs in
and around Tirunelveli and Kanyakumari districts of Tamil Nadu.
The trust depends on external borrowing for its operations. It
borrows long-term loans from banks and financial institutions and
provides short-term micro credit loans to multiple SHGs. As the
tenor of the loans given to SHGs is shorter than the loans availed
from banks, the trust utilizes this gap by re-lending the cashflow
available during the remaining tenor of the bank loans. The
outstanding loans and advances shrunk during FY19-FY23, on account
of a fall in fresh sanctions due to the repayment of bank
borrowings and no fresh borrowing availed during the period. The
term loans of INR1.75 million outstanding as of March 31, 2023 was
fully repaid in June 2023. The trust has proposed bank loans of
INR50 million to continue its lending activity.
The trust's interest income declined to INR1.91 million in FY23
(FY19-FY22: INR2.95 million), due to the fall in outstanding loans
and advances. It maintained net interest income of above INR1.08
million during FY19-FY23. The net interest margin (net interest
income/average earning assets) remained above 11.8% during
FY20-FY23 (FY19: 5.28%).
Liquidity Indicators – Poor: The trust's liquidity profile is
poor due to its small scale of operations which limits the trust's
ability to absorb any shocks (cash and bank balance at FYE23:
INR0.04 million). Its net cashflow from operation declined to
INR2.91 million in FY23 (FY22: INR3.79 million), due to unfavorable
changes in the working capital. The trust relies on a single bank
for funding and does not have access to the capital market. It does
not have any working capital limits from banks/financial
intuitions. Ind-Ra expects RIP's cash flow from operations and
unrestricted cash and bank balances to be adequate for its debt
repayments of around INR7 million and INR15 million in FY24 and
FY25, respectively.
The trust's equity to total assets ratio increased to 59.87% in
FY23 (FY22: 42.40%) and the equity to total loans and advances
increased to 109.32% (63.11%), due to the fall in outstanding loans
and advances. The debt burden narrowed as its leverage
(debt/equity) reduced to 0.26x in FY23 (FY22: 0.97x), due to the
repayment of its debt. Being an SHG promoting institution, the
trust neither prepare asset liability management statement nor
follow any provisioning and capital adequacy policy.
Rating Sensitivities
Positive: A significant growth in the scale of operations, leading
to an improvement in the profitability thus resulting in the
improved credit metrics, on a sustained basis, would be positive
for the rating.
Negative: Any delay in the recovery of loans from SHGs, leading to
further deterioration in the credit metrics, on a sustained basis,
would be negative for the rating.
Company Profile
RIP is a voluntary organization formed in 1985 by a group of
persons involved in All India Catholic University Federation and
committed to rural development and social change. RIP was
registered as trust in April 1986 with a view to launching
innovative educational programs and development activities for the
upliftment and wellbeing of the rural poor. Until March 1992, RIP's
activities were limited to educational interventions like seminars
and trainings for women and youth. RIP is mainly engaged in
providing micro credit loans to SHGs.
SADBHAV BHAVNAGAR: Ind-Ra Cuts Term Loan Rating to D
----------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Sadbhav Bhavnagar Highway Limited's (SBHL) rupee term
loan (RTL):
-- INR3.93 mil. Rupee term loan (RTL)-I due on April 2034
downgraded and withdrawn; downgraded to 'IND D' before being
withdrawn.
Key Rating Drivers
Ind-Ra has downgraded the rating due to the company's delays in
servicing the interest payments mentioned in the auditor report of
FY23 when SBHL was under the control of its erstwhile sponsor,
Sadbhav Infrastructure Project Limited ('IND C (ISSUER
NOTCOOPERATING)'). While the rated term-loan was fully repaid, the
default is recognized on the past delays when the instrument was
outstanding.
Ind-Ra is no longer required to maintain the rating as the rated
term loans have been paid in full and the agency has received
no-dues certificates from the lenders. This is consistent with
Ind-Ra's Policy on Withdrawal of Ratings.
Company Profile
SBHL was incorporated by its erstwhile sponsor Sadbhav
Infrastructure Project to undertake the expansion of two lanes to
four lanes of an existing road on the Bhavnagar – Taleja section
of National Highway (NH)-8 E in Gujarat on design, build, operate
and transfer basis. The total length of the road to be developed is
48.045km (7.090km to 54.585km).
SAHARA Q SHOP: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Sahara Q Shop Unique Products Range Limited
25-28, Floor-2, Plot No. 209, Atlanta Building
Jamnalal Bajaj Marg, Nariman Point,
Mumbai City, Mumbai Maharashtra,
India, 4000021
Sahara India Bhawan 1,
Kapoorthala Complex,
Alignaj, Lucknow,
Uttar Pradesh India, 226024
Insolvency Commencement Date: December 6, 2023
Estimated date of closure of
insolvency resolution process: June 5, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Udaykumar Bhaskar Bhat
B-304, Goldville Appartments Dange Chowk
Aundh Ravet Road
Thergaon Pune - 411033
Email: udaybhat2805@gmail.com
Last date for
submission of claims: December 22, 2023
SANMATI TRADERS: CRISIL Moves B+ Debt Ratings to Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Sanmati Traders (ST) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Cash Credit 3.8 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Fund- 0.45 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
Term Loan 0.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with ST for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of ST to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from ST, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on ST is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the ratings on bank facilities of ST migrated to
'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Sanmati Traders was set up as a proprietorship firm in 1990. The
Imphal-based firm trades and supplies electronics, computers,
electrical insulators, switchgears, circuits, transformers, panels,
under the B2B and B2G model. Operations are managed by Mr Manoj
Kumar Patni.
SESA CARE: Ind-Ra Cuts Term Loan Rating to BB+
----------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the rating of
Sesa Care Private Limited's (SCPL) term loan to 'IND BB+' from 'IND
BBB' while resolving the Rating Watch with Developing Implications.
The Outlook is Negative.
The detailed rating action is:
-- INR2.154 bil. Term loan due on FY27 downgraded; Off Rating
Watch with Developing Implications with IND BB+/Negative
rating.
ANALYTICAL APPROACH: Ind-Ra continues to take a standalone view of
SCPL while notching up the ratings on account of the support
available to the company from its promoter, True North Fund V LLP
(True North).
The rating action reflects the delay in infusion of equity funds
within the expected timeline by new strategic investors and
promoters in SCPL, as against the earlier envisaged timeline of
end-October 2023. The continued high debt levels have led to SCPL's
credit profile remaining weak and its liquidity position stretched
through FY23. Also, the business profile has remained stagnant over
the past two-to-three years with no major improvement in scale of
operations and pickup in operating profitability.
SCPL is in the advance stage of discussion with strategic investors
for seeking a sizable equity infusion; the process is likely to be
completed before March 2024. For Ind-Ra, the timely infusion of
funds and a reduction in debt levels will remain a key rating
monitorable.
Key Rating Drivers
Delay in Equity Infusion: SCPL's promoter investor True North has
been in discussions with potential investors, including strategic
and private equity investors, for a sizeable equity infusion in
SCPL to reduce its debt. The transaction, which was likely to close
by October 2023, has been delayed, resulting in SCPL's continued
weak credit metrics. The management has indicated that the company
is in advanced stage of discussion with strategic investors; the
transaction is now likely to be completed by FYE24. This could also
lead to a change in the shareholding pattern, as per the valuation
agreement. SCPL's current promoters are also likely to infuse the
funds in the range of INR 200 million-300 million in the form of
preferential allotment to meet its interim requirements.
Ind-Ra believes the transaction could materially change SCPL's
credit profile and its liquidity position as the net leverage (net
debt/EBITDA) stood stretched at 22.7x in FY23 (FY22: 20.8x).
Ind-Ra will continue to monitor the progress in the equity
infusion. In addition, Ind-Ra will monitor True North's stake in
SCPL post the transaction as the agency has taken the rating
support in SCPL from its current promoter and the profile of
additional investor(s) coming in, if any, which would be one of the
key monitorable.
Credit Metrics Stretched due to Delay in Deleveraging: SCPL's gross
debt (including lease liabilities) was high at INR2,977 million in
September 2023 (FY23: INR3,198 million, FY22: INR2,700 million).
The company's debt is majorly in the form of the term loan drawn to
fund the acquisition of the Sesa brand in FY19. Consequently, the
company's net adjusted leverage (net debt/EBITDA) remained
stretched at 61.6x in 1HFY24 (FY23: 22.7x, FY22: 20.8x) and
interest coverage (EBITDA/interest expense) low at 0.1x (0.4x,
0.5x).
Apart from intense competition from large players, the delay in the
equity infusion has resulted in a delay in SCPL's deleveraging
process. Ind-Ra expects SCPL's credit metrics to remain dependent
on the equity infusion likely in FY24, given its suboptimal
operations.
Continued Small Scale of Operations and Intense Competition in the
Segment: SCPL's scale of operations remains small with a revenue of
INR637.7 million earned till September 2023 (1HFY23: INR593
million, FY23: INR1,125 million, FY22: INR1,044 million), driven by
a moderate demand for its ayurvedic hair oil. The hair care segment
contributed over 90% to SCPL's revenue in FY23. However, the hair
oil industry remains fragmented with limited product
differentiation and low entry barriers. Ind-Ra believes given the
highly competitive nature of the industry and the company's limited
product portfolio; SCPL's scale of operations is likely to remain
small over the medium term.
Ind-Ra expects SCPL's revenue to increase 6%-8% yoy in FY24 and
continue to grow in a similar range FY24 onwards, supported by
continued growth in the hair oil segment, expanding product
portfolio, improving growth in general trade channels, and
increasing exports to Bangladesh. A significant increase in the
revenue remains a key monitorable.
Moderate Operating Performance in FY23; Likely to Ramp Up 2HFY24
Onwards: SCPL's EBITDA margins was 11.5% in FY23 (FY22: 12.3%). The
margins dropped to 6.2% in 1HFY24 (1HFY23: 4.2%) primarily on
account of the high marketing expenses of INR125 million. The
agency expects SCPL's margins to be at 12.0%-12.5% in FY24 due to
the likely absence of major marketing expenses in 2HFY24, and the
second half of the year being seasonally a better period for the
company. The company achieved revenue and EBITDA margin of INR863.1
million and 9.15%, respectively, till November 2023. Although the
EBITDA margin achieved till November 2023 is lower than Ind-Ra's
earlier expectation of 12.5%; but growth in margin over the medium
term will continue to be supported by the improving operating
leverage and softening raw material prices.
The company is working towards streamlining its operations, with an
increased focus on enhancing its existing portfolio of hair care
products, expanding its reach in Bangladesh, increasing its
customer reach by adding trade channels in key markets in India and
Bangladesh and diversifying its product portfolio. According to the
management, the scaling up of new product launches such as the
onion hair care range as well as the nutraceutical product range,
will remain a key the focus area for growth, along with expanding
SCPL's reach through e-commerce. As per SCPL's marketing strategy,
all new products will first be launched through its portal since
capturing a wider customer reach and gauging their response is
relatively faster than general trade through this mode. In
addition, as part of its marketing strategy, the company is
strengthening its brand image by selecting a brand ambassador at
the national and regional level.
Reputed Promoters; Financial Flexibility: Ind-Ra derives comfort
from SCPL's promoter and private equity investor True North, which
has demonstrated a track record of holding controlling stakes in
portfolio companies while extending timely financial support to
them. True North represents three out of eight members on SCPL's
board of directors and its operational as well as domain expertise
lies in managing consumer goods marketing companies.
Furthermore, SCPL's financial flexibility is reflected in the
adequate incremental equity commitments from True North. Along with
the current equity infusion plans, the company saw an equity
infusion of INR998 million in FY21, in which True North infused
INR686 million; this was entirely used for the part pre-payment of
its term loans. True North has committed to continue to support
SCPL through this mode over the medium term as any interim need
arises. Ind-Ra, thus, takes comfort from the promoter's commitment
to infuse funds on a need basis.
Liquidity Indicator – Stretched; Supported by Promoter: At FYE23,
SCPL had a cash balance of INR273 million and INR25 million on 30
September 2023 (FYE22: INR35 million). Its average month-end
utilization of the working capital limits of INR150 million stood
at 33% during the 12 months ended November 2023. The company did
not use its working capital limit over December 2022-June 2023 as
it was using Emergency Credit Line Guarantee Scheme loans
(outstanding at end-September 2023: about INR932 million). The free
cash flow remained negative at about INR168 million in FY23 (FY22:
negative INR106 million); it is likely to remain negative over
FY24-FY25. However, Ind-Ra believes a sustained improvement in the
operating performance, along with a stable working capital cycle
and fund infusion likely in FY24, which are likely to reduce the
interest outgo, is likely to result in the free cash flow turning
positive FY26 onwards. The company has debt repayment obligations
of INR572 million in FY24 and INR640 million in FY25 for which SCPL
largely depends on its promoters' equity infusion and in the
interim; these obligations will be largely serviced by cash on the
company books, which stood at INR283 million at FYE23 (FYE22: INR51
million).
Given the subdued profitability and higher interest cost burden,
SCPL's debt service coverage ratio is likely to remain tight over
FY24-FY25. However, Ind-Ra derives comfort from the periodic
support of the promoters in the past and their ability to infuse
capital in case of any exigency.
Rating Sensitivities
Positive: A substantial improvement in the operating performance,
timely equity infusion, leading to a strengthening of the credit
profile, with the net adjusted leverage reducing and sustaining
below 5.0x, on a structural basis, could be positive for the
ratings.
Negative: Lower-than-Ind-Ra-expected ramp-up of the scale, leading
to lower-than-expected revenue and EBITDA margin growth, and / or a
further delay in the equity infusion leading to lower-than-expected
de-leveraging leading to the net adjusted leverage staying above
5.0x beyond FY24, and/or deterioration in the liquidity position,
all on a sustained basis, could lead to a negative rating action.
Company Profile
Incorporated in August 2018, SCPL acquired the Sesa branded hair
care products such as hair oil, anti-dandruff oil, hair vitalizer
for men, hair oil in lotion and hair capsules from Ban Labs Pvt.
Ltd. The acquisition includes a manufacturing facility in Himachal
Pradesh, which had commenced operations in 2010, with a production
capacity of around 3 million bottle per month.
SHARADHA TIMBERS: ICRA Keeps D Debt Ratings to Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Sri Sharadha Timbers in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 16.75 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Sri Sharadha Timbers, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Sri Sharadha Timbers is a proprietorship firm owned by Mr. Narashia
Manji Patel. It was established in 2002 and is involved in the
business of sawing and trading of timber, mainly imported wood. The
customers of SST include dealers, wholesalers and retailers.
SHIVPRIYA CABLES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Shivpriya Cables Private Limited
Registered Office:
518/6-A, GF, Plot No. 73-75,
Block No. 1 Gali No.1
Vishwas Nagar, Shahdara,
North East Delhi-110032
Principal Office:
B-15/23, Ground Floor, DLF City,
Phase-1, Gurgaon-122002
Factory Premises:
F-122-123, Industrial Area,
Chopanki, Bhiwandi,
Alwar, Rajasthan - 301019
Insolvency Commencement Date: December 12, 2023
Estimated date of closure of
insolvency resolution process: June 10, 2024
Court: National Company Law Tribunal, New Delhi Bench-II
Insolvency
Professional: Kanti Mohan Rustagi
F-14, Kailash Colony,
New Delhi-110043
Email: kanti.rustagi@patanjaliassociates.com
905, 09th Floor, Tower C, Unitech Business Zone,
The close South 50,
Gurugram, Haryana - 122018
Email: cirp.shivpriya@gmail.com
Last date for
submission of claims: December 27, 2023
SHORAPUR SOLAR: ICRA Moves B Debt Ratings to Not Cooperating
------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Shorapur
Solar Power Limited to the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 36.25 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating Moved to
Cash Credit the 'Issuer Not Cooperating'
Category
Long Term- 8.75 [ICRA]B (Stable) ISSUER NOT
Unallocated COOPERATING; Rating Moved to
the 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Shorapur Solar Power Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information.
SSPL was incorporated in May 2016 with the main objective of
setting up a 10-MW solar power plant at Yalgi village, Shorapur
taluk, Yadgir district, Karnataka. The COD was achieved on February
23, 2018. The company is promoted by the Karvy Group with Karvy
Consultants Ltd (KCL) holding 99.91% of the shareholding, while the
rest is held by KCL's promoters in their individual capacity.
SOMNATH AGRO: CRISIL Moves B Debt Rating to Not Cooperating
-----------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of
Somnath Agro Industries (SAI) to 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SAI for
obtaining NDS through letters / emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SAI to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from SAI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SAI is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the rating on bank facilities of SAI
migrated to 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2012 as a partnership firm, SAI processes and trades
in pulses, cereals, spices and other agro commodities. The
manufacturing facility is in Halvad, Morbi in Gujarat, with
installed capacity of 21,600 metric tonne. It is owned and managed
by Mr Hitesh Kumar Mendha and Ms Charmiben Mendha.
SREI INFRASTRUCTURE: NCLAT Rejects Authum Investment Plea
---------------------------------------------------------
Livemint.com reports that the National Company Law Appellate
Tribunal (NCLAT) has dismissed an appeal by non-bank financier
Authum Investment and Infrastructure challenging a bankruptcy
tribunal order that had rejected its objections to a resolution
plan for two Srei companies.
The National Company Law Tribunal (NCLT) had in August approved a
resolution plan submitted by National Asset Reconstruction Co. Ltd
(NARCL) for Srei Infrastructure Finance Ltd (SIFL) and Srei
Equipment Finance Ltd (SEFL), Livemint.com recalls.
At the time, the tribunal also rejected a plea by Authum, one of
the bidders for the two companies under the insolvency process.
Following the tribunal's order, Authum approached NCLAT,
Livemint.com relays.
According to Livemint.com, NARCL's resolution plan offered a net
present value bid of INR5,555 crore for the two Srei companies,
which the lenders approved. Authum with a bid of INR5,526 crore,
and Varde Partners along with Arena Investors with a bid of
INR4,680 crore were the two other bidders.
"We do not find any error in the order of the adjudicating
authority (NCLT) rejecting the applications," said an NCLAT bench
led by Justices Ashok Bhushan and Barun Mitra in their 42-page
order of 5 January.
The tribunal's approval of the resolution plan was in the
commercial wisdom of the committee of creditors, NCLAT said, adding
that there were no grounds to interfere with the order. "There is
no merit in the appeal. The appeal is dismissed," it said.
In October 2021, the Reserve Bank of India had superseded the
boards of the two Srei companies citing governance concerns and
repayment defaults. The regulator then approached the Kolkata bench
of the NCLT to initiate insolvency proceedings.
The tribunal subsequently admitted the companies for insolvency
proceedings, appointing former Bank of Baroda chief general manager
Rajneesh Sharma as the administrator.
"Commercial jurisprudence undoubtedly is the privilege of the CoC
(committee of creditors)," Livemint.com quotes Akshat Khetan,
founder of AU Corporate Advisory and Legal Services, as saying.
"However, the NCLT and other judicial forums ought to scrutinise
procedural irregularity and questions of patent illegality while
approving any resolution plan.
NARCL completed the acquisition of the two Srei companies in
December, Livemint.com says. "This strategic move sets the stage
for the resolution of a significant financial debt amounting to
INR32,700 crore," NARCL said in a statement on December 8.
It added that the consolidated resolution plan, as part of the
Insolvency and Bankruptcy Code (IBC) process, promised about 50%
upfront recovery for the lending consortium, with the potential for
substantial upside beyond the committed payment in the resolution
plan, adds Livemint.com.
About Srei Group
SREI Infrastructure Finance Ltd. is a non-banking financial
institution. The company has three principal lines of business in
financing: infrastructure equipment finance, infrastructure
projects finance and renewable energy product finance.
Infrastructure equipment finance is the largest business division
of the Company.
On Oct. 4, 2021, the Reserve Bank of India superseded the board of
directors of Kolkata-based Srei Infrastructure and said that it
will initiate insolvency proceedings with the National Company Law
Tribunal (NCLT), according to The Economic Times. The RBI cited
governance concerns and defaults by the company and appointed
Rajneesh Sharma, former chief general manager, Bank of Baroda as an
administrator of the company.
The insolvency resolution process against the company started on
Oct. 8, 2021.
The RBI-appointed administrator has admitted claims of around
INR31,868 crore of the total claims received of around INR34, 223
crore from financial creditors to Srei Equipment Finance Ltd
(SEFL), the Hindu BusinessLine disclosed. He had also admitted
claims to the tune of INR257 crore from financial creditors to Srei
Infrastructure Finance.
SVN AGRO: CRISIL Moves B+ Ratings to Not Cooperating Category
-------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of SVN
Agro Refineries (SAR) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 34 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with SAR for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of SAR to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from SAR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on SAR is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SAR
migrated to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Established as a partnership firm, SAR is engaged in refining of
sunflower oil, manufacturing, and trading of RBD Palm oil. The firm
has one manufacturing facility with an installed capacity of 5000
tons per year and 12000 tons per year of RBD palm oil. The firm is
based in Vengaivasal near Tamil Nadu and is owned & managed by Mr.
S V N Ravi Varma.
VADIM INFRASTRUCTURE: ICRA Keeps D Ratings to Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Vadim Infrastructure Private Limited in the 'Issuer
Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 2.30 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 2.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 4.05 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 1.65 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with Vadim Infrastructure Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Vadim Infrastructure Private Limited was incorporated in Chennai in
2004 and has a diversified presence across four states with branch
offices in Coimbatore, Hyderabad, Bhubaneswar, and Nagpur. VIPL is
an EPC contractor and undertakes design, engineering, procurement
and execution of turnkey projects. The company has more than 14
years of experience in power, industrial, and infrastructure
sectors. VIPL also provides design and detail engineering in the
areas of piping, civil and structural work..
VASUPRADA PLANTATION: Ind-Ra Affirms B+ Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Shri Vasuprada
Plantation Limited (erstwhile Joonktollee Tea & Industries
Limited)'s debt as follows:
-- INR500 mil. Non-convertible debentures NCDs# affirmed with
IND B+/Stable rating; and
-- INR250 mil. Preference shares coupon rate 6% due on 20 years*
affirmed with IND B+/Stable rating.
*From the date of allotment and subject to early repayment by the
company
# Details in Annexure
ANALYTICAL APPROACH: Ind-Ra has taken a consolidated view of SVPL
and its subsidiaries - Keshava Plantations Pvt Ltd (100% stake),
Pranav Infradev Company Pvt. Ltd. (100% stake) and The Cochin
Malabar Estates & Industries Ltd. (a wholly-owned subsidiary of
Pranav Infradev Company), together referred to as the group
hereafter, while assigning the ratings. This is on account of the
strong operational and strategic linkages among them. However,
Ind-Ra continues to factor in the possibility of financial support
to be provided by other Bangur group companies. The promoters have
informed the agency that the promoters/other group entities will
provide financial support, if required.
Key Rating Drivers
The ratings reflect the group's medium scale of operations. On a
consolidated basis, the revenue fell to INR1,140 million in FY23
(FY22: INR1,224 million) due to a decline in tea production on the
back of adverse climate conditions, despite an increase in
realization to INR194 per kg (INR167 per kg). During 1HFY24, the
group achieved revenue of INR562.49 million. On a standalone basis,
SVPL's revenue was INR508.58 million in 1HFY24 (FY23: INR1,022.32
million, FY22: INR1,120.42 million). Ind-Ra expects the revenue to
increase in 2HFY24 owing to beginning of sale of orthodox tea.
The ratings also factor in the group's modest EBITDA margin of
2.31% in FY23 (FY22: 1.31%) due to an increase in other income.
During FY23, SVPL liquidated 47.10% stake in its wholly-owned
subsidiary M/s. Pranav Infradev Co. Pvt. Ltd. for INR147.29
million. The return on capital employed was negative 3% in FY23
(FY22: negative 3%). Ind-Ra expects the EBITDA margin to improve
marginally due to the introduction of high-margin orthodox tea. On
a standalone basis, SVPL's EBITDA margin was modest at 1.59% in
FY23 (FY21: 1.1%) with a return on capital employed of negative 3%
(negative 3%).
The ratings also reflect the group's modest credit metrics as
indicated by interest coverage (operating EBITDA/gross interest
expenses) of 0.32x in FY23 (FY22: 0.15x) and net financial leverage
(total adjusted net debt/operating EBITDAR) of 19.32x (46.37x). The
improvement in the credit metrics was attributed to an increase in
EBITDA to INR26.32 million in FY23 (FY22: INR16.09 million and a
decline in the total debt to INR545.13 million (INR751.08 million).
Ind-Ra expects the group's credit metrics to remain at similar
levels in FY24 in the absence of any debt-led capex. On a
standalone basis, the credit metrics were modest with interest
coverage of 0.23x in FY23 (FY22: 0.13x) and net financial leverage
of 27.89x (51.0x).
Liquidity Indicator - Poor: The group's net working capital cycle
was modest and elongated to 359 days in FY23 (FY22: 233 days)
because of an increase in the inventory holding period to 366 days
(234 days). On a standalone basis, the net working capital cycle
stretched to 339 days in FY23 (FY22: 226 days). The company's
average utilization of the fund-based limits was 74.7% during the
12 months ended October 2023. The group's cash flow from operations
turned negative to INR126.98 million in FY23 (FY22: INR14.45
million) because of unfavorable changes in working capital.
Consequently, the group's free cash flow remained negative and
deteriorated further to INR180.41 million in FY23 (FY22: negative
INR55.20 million). The group's cash and cash equivalents stood at
INR36.68 million at FYE23 (FYE22: INR4.97 million). SVPL has
scheduled repayments of INR106.73 million, INR88.88 million and
INR0.27 million in FY24, FY25 and FY26, respectively, which will be
met through infusion of funds through group companies in the form
of inter-company deposits.
The ratings are further constrained by agro-climatic risks as tea
and coffee production is dependent on climatic conditions.
Additionally, the inherent cyclicality of the fixed-cost intensive
tea industry, leads to variability in profitability and cash flows
of bulk tea blenders.
However, the ratings are supported by the promoters' more than two
decades of experience in the tea and coffee business, as well as
timely funding support from the promoters.
Rating Sensitivities
Positive: An improvement in the group's scale of operations,
leading to an overall improvement in the credit metrics and
liquidity, all on a sustained basis, will be positive for the
ratings,
Negative: A significant decline in the group's scale of operations
or any weakening/delay in receipt of financial support from group
companies resulting in any decline in the liquidity or the interest
coverage, all on a sustained basis, will be negative for the
ratings.
Company Profile
SVPL is engaged in plantation of tea, coffee and rubber. The
company operates five tea estates, one coffee estate and one rubber
estate in northern and southern parts of India. The company's
registered office is located in Kolkata, West Bengal. SVPL is
managed and promoted by the Bangur group.
VELLAPALLY CONSTRUCTIONS: CRISIL Moves B- Rating to Not Coop.
-------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Vellapally Constructions (VC) to 'CRISIL B-/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 19.75 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Overdraft Facility 5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 1.75 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with VC for
obtaining NDS through letters/emails dated October 31, 2023,
November 30, 2023 and December 29, 2023 among others, apart from
telephonic communication to seek the same. After non-receipt of NDS
for 2 consecutive months, we also sent a letter dated December 27,
2023 reminding the issuer to share the NDS. However, the issuer has
remained non cooperative. CRISIL Ratings has also tried to reach
out to the lenders of VC to confirm timely debt servicing during
these months, but awaits any feedback.
'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 NDSs from VC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. Further, non-sharing of NDS by issuers may reflect
operational issues faced by issuers in some cases. On the other
hand, it may be a beginning of a general non-cooperation and may
extend to non-submission of other information.
CRISIL Ratings believes that rating action on VC is consistent with
'Assessing Information Adequacy Risk'. Based on the last available
information, the ratings on bank facilities of VC migrated to
'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating'.
VC was established in 1981, it is located in Kottayam, Kerala. VC
is engaged in civil construction works, such as construction of
buildings. VC owned & managed by Mr. Jacob Mathew Vellapally and
his family.
WOODIND: ICRA Keeps D Debt Ratings to Not Cooperating
-----------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of The Woodind in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- (6.00) [ICRA]D; ISSUER NOT
Interchangeable COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Short term– 10.00 [ICRA]D; ISSUER NOT
Non fund based COOPERATING; Rating Continues
to remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with The Woodind, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
The Woodind, initially established as proprietorship concern in
2006 by Mr. Russal M Easa, was later converted in to a partnership
firm in December 2013. The firm is engaged in trading of timber.
The firm imports timber mainly from Latin American countries and
also from African countries. The timber imported belongs to two
main categories –Teak and Pincoda. The firm is located in Kochi
(Kerala) and caters to the needs of the wholesalers as well as the
retailers in North Kerala.
ZEE ENTERTAINMENT: Sony Is Planning to Call Off $10 Billion Merger
------------------------------------------------------------------
Bloomberg News reports that Sony Group Corp. is planning to call
off the merger pact of its India unit with Zee Entertainment
Enterprises Ltd., said people familiar with the matter, capping two
years of drama and delay in creating a $10 billion media giant.
According to Bloomberg, the Japanese conglomerate is looking to
cancel the deal due to a standoff over whether Zee's Chief
Executive Officer Punit Goenka, also its founder's son, would lead
the merged entity, the people said, asking not to be named as the
information is not public. While the agreement signed in 2021 was
that Goenka would lead the new company, Sony no longer wants him as
CEO amid a regulatory probe, the people said.
Sony plans to file the termination notice before a Jan. 20 extended
deadline for closing the deal, saying some of the conditions
necessary for the merger had not been met, one of the people said,
Bloomberg relays. Goenka has stood his ground in wanting to helm
the merged entity, as agreed initially, over prolonged meetings in
the past few weeks, according to another person.
Discussions are still ongoing between the two sides and a
resolution can still emerge before the deadline.
The scuttling of the deal due to the last-lap leadership tussle
will not only leave Zee vulnerable to possible defaults, it's
coming at a time when billionaire Mukesh Ambani is seeking to
bolster Reliance Industries Ltd.'s media ambitions by negotiating a
merger with Walt Disney Co.'s India unit.
The Sony-Zee combine aimed to create a $10 billion media behemoth
with the financial muscle to take on global powerhouses Netflix
Inc. and Amazon.com Inc. as well as local heavyweights like
Reliance.
Mumbai-based Zee had earlier requested for an extension of a Dec.
21 deadline by a month. Sony said then that it wanted to hear Zee's
proposals on completing the "remaining critical closing
conditions."
The Securities and Exchange Board of India alleged in June that Zee
faked the recovery of loans to cover private financing deals by its
founder, Subhash Chandra. Chandra and his son, Goenka, "abused
their position" and siphoned off funds, SEBI said in an interim
order, barring Goenka from executive or director appointments in
listed companies.
While Goenka got a reprieve from an appellate authority against the
Sebi order, Sony views the ongoing probe as a corporate governance
issue, Bloomberg reported earlier.
Sony Pictures Networks India Pvt. would have owned a 50.86% stake
in the merged media firm and Goenka's family was to own 3.99% in
the proposed transaction, according to the 2021 agreement. The
proposed merger has received almost all regulatory approvals and
would have helped expand Sony's media business in the world's
most-populous country.
About Zee Entertainment
Based in Mumbai, India, Zee Entertainment Enterprises Limited,
together with its subsidiaries, engages in broadcasting satellite
television channels.
As reported in the Troubled Company Reporter-Asia Pacific in early
September 2023, the National Company Law Appellate Tribunal (NCLAT)
on Aug. 31 issued notice to Zee Entertainment Enterprises Ltd
(ZEEL) in a plea by IDBI Bank to initiate insolvency proceedings
against the company.
According to Hindu BusinessLine, IDBI Bank, in its plea, said it
was unable to recover unpaid dues of around INR150 crore from Zee.
Many banks, including IndusInd, Standard Chartered, Axis Bank and
IDBI, have initiated insolvency proceedings against Zee ahead of
its merger with Sony. So far, Zee has reached a settlement with
IndusInd and Standard Chartered.
ZOOM DEALCOMM: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Zoom Dealcomm Private Limited
66, Nalini Seth Road, Ground Floor,
Kolkata, West Bengal, 700007
Insolvency Commencement Date: November 2, 2023
Estimated date of closure of
insolvency resolution process: April 30, 2023
Court: National Company Law Tribunal, Chandigarh Bench
Insolvency
Professional: Mr. Manoj Seghal
Flat 71, Tower-Acacia 2, Vatika City, Sector 49,
Gurgaon Haryana, 122018
Email: manojsehgal_1121@yahoo.com.in
Email: cirp.zoomdealcomm@gmail.com
Last date for
submission of claims: December 31, 2023
=====================
N E W Z E A L A N D
=====================
ELE GROUP: Former Workers Left Sleeping in Cars After Receivership
------------------------------------------------------------------
1News reports that around 1,000 people were told they no longer had
work after ELE Group called in receivers on December 20. A large
number were migrants whose visas were dependent on working for the
firm.
A fortnight on, some have already lost their homes and are sleeping
in cars as they wait to hear how much of their final pay they may
be entitled to - or if they get anything at all, 1News relates.
According to 1News, Red Aghuhar has friends who give him a place to
use while they are at work during the day. At night, he sleeps in
his car parked on the side of the road.
"It's hard," the report quotes Mr. Aghuhar as saying. "But I have
to do it to survive, it's what I must do."
Having fallen behind on his car payments too, he's not sure how
much longer he can rely on that as an option.
"I just have to fight, and to keep applying for jobs."
In a statement, one of the receivers, Deloitte's David Webb,
acknowledged the workers' struggle but said a report into the ELE
Group is not expected to be ready for several weeks still,
according to 1News.
"We are aware that many ELE workers, particularly those with visas
linked to their employment with the ELE Group are experiencing
financial and mental hardship."
According to 1News, Mr. Webb said the receivers were working hard
to connect former staff with potential employers and Immigration
New Zealand.
Anna Casaje from Migrante Canterbury - an organisation working with
many newly unemployed Filipino workers - said one of the biggest
challenges was changing the conditions on the workers' visas.
"The majority of them were able to sign a new contract . . . which
is a good thing," she says. "The challenge is the approval of their
visa."
1News relates that Immigration New Zealand deputy chief operating
officer Jeannie Melville said the department has approved 21 job
change applications from the 365 affected migrant workers, with one
still currently under assessment.
"We are working closely with the employer, the employees and other
interested parties to ensure these workers can remain in New
Zealand lawfully."
But time, and money is running out for many.
Romano Dela Cruz lives in a house with seven others - all former
ELE workers. They've been buoyed by food donations from the
Filipino community but that will only assist so far.
He's worried that, without a new source of income, they'll soon be
among those forced to sleep in their cars, 1News relays.
"If I could work, I'd work tomorrow," he said. "We need it - not
just for ourselves - but for our families."
About ELE Group
ELE Group provides labour hire support to the construction, civil,
manufacturing and healthcare sectors, permanent recruitment
refrigerated transport and customised freight services to clients.
On Dec. 20, 2023, David Webb and Robert Campbell were appointed
Receivers and Managers of ELE Group comprising of ELE Holdings
Limited, ELE Management Limited, ELE Limited, Tranzport Solutions
Limited, and RISQ New Zealand Limited.
The appointment was made at the request of the Companies' Director,
following efforts to seek additional investment and a sale of the
business and/or assets.
=================
S I N G A P O R E
=================
ACTECO HOLDING: Court to Hear Wind-Up Petition on Jan. 19
---------------------------------------------------------
A petition to wind up the operations of Acteco Holding Pte Ltd will
be heard before the High Court of Singapore on Jan. 19, 2024, at
10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Dec. 27, 2023.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
FINANTIER PTE: Court to Hear Wind-Up Petition on Jan. 19
--------------------------------------------------------
A petition to wind up the operations of Finantier Pte. Ltd. will be
heard before the High Court of Singapore on Jan. 19, 2024, at 10:00
a.m.
Liu Jinhui filed the petition against the company on Aug. 30,
2023.
The Petitioner's solicitors are:
Eugene Thuraisingam LLP
1 Coleman Street
#07-06 The Adelphi
Singapore 179803
KEW GARDEN: Court to Hear Wind-Up Petition on Jan. 12
-----------------------------------------------------
A petition to wind up the operations of Kew Garden Recycle Pte Ltd
will be heard before the High Court of Singapore on Jan. 12, 2024,
at 10:00 a.m.
RHB Bank Berhad filed the petition against the company on Dec. 20,
2023.
The Petitioner's solicitors are:
Messrs Harry Elias Partnership LLP
SGX Centre 2
#17-01, 4 Shenton Way
Singapore 068807
MAPLE ASSET: Creditors' Proofs of Debt Due on Feb. 5
----------------------------------------------------
Creditors of Maple Asset Investments Pte. Ltd. are required to file
their proofs of debt by Feb. 5, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 29, 2023.
The company's liquidator is:
Goh Tiong Hong
c/o 63 Circular Road #02-01
Singapore 049417
RAZE BUILDERS: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on Dec. 22, 2023, to
wind up the operations of Raze Builders Pte Ltd.
M5 Equipment Pte. Ltd. filed the petition against the company.
The company's liquidator is:
Seah Chee Wei
c/o Rock Stevenson
60 Paya Lebar Road
#04-23 Paya Lebar Square
Singapore 409051
=====================
S O U T H K O R E A
=====================
TAEYOUNG ENGINEERING: Inches Closer to Avoiding Court Receivership
------------------------------------------------------------------
The Korea Herald reports that debt-ridden Taeyoung Engineering &
Construction made a U-turn to stick with its initial self-rescue
package to avoid court receivership, which could put over a
thousand of its subcontractors at risk.
The Korea Herald relates that the 16th-largest construction company
in South Korea in terms of capacity is expected to unveil
additional plans, which could include offering the ownership
family's stake in Taeyoung Group's holding firm, to win creditors'
approval by Jan. 4 for the launch of a debt workout program.
According to the report, Taeyoung Group injected KRW89 billion
(US$67.6 million) into its troubled construction unit with the
proceeds from the sale of its overseas trading affiliate Taeyoung
Industries on Jan. 8, in a move demanded by creditors and financial
authorities to prove the group's "willingness to implement its
self-help plan."
It was one of four self-rescue measures announced by the group last
month in the aftermath of a liquidity crunch over real estate
project financing loans.
"The remaining three schemes will also be implemented as soon as
possible through resolution by the board of directors," the group
said.
Taeyoung has drawn criticism that the group is only seeking to
maintain management rights after it abandoned its initial promise
to use the proceeds from Taeyoung Industries' sell-off for the
indebted builder, the Korea Herald says.
The group used the cash to address joint debt within the group's
holding firm, TY Holdings, which enraged creditors for prioritizing
the holding firm rather than conducting a genuine workout program
for the troubled construction firm.
According to The Korea Herald, Finance Minister Choi Sang-mok said
no public funds will be provided for Taeyoung, which has run a
"debt-dependent business." "The debt ratio is higher than that of
other companies, and it guaranteed a myriad of project financing
businesses," he told lawmakers at the National Assembly.
Including Choi, top financial officials of the government,
financial regulators and the Bank of Korea held a meeting to
discuss Taeyoung's debt restructuring plan earlier in the day.
"Some progress has been made, such as Taeyoung Group's promise to
implement four self-rescue plans, and creditors will continue to
consult based on this," the Finance Ministry said in a statement,
the Korea Herald relays. "Taeyoung needs to gain the trust of
creditors by presenting a specific additional self-rescue plan."
The Korea Herald adds Taeyoung Group so far has put forward its
self-rescue plan centering on four means to repay debts --
injecting KRW89 billion into Taeyoung E&C by selling Taeyoung
Industries, drawing funds through the sell-off of its stake in
sewage treatment unit Ecorbit, the sale of its resort operator
BlueOne as well as putting up as collateral its stake in grain
handling and storage company Pyeongtaek Silo.
Taeyoung has come under pressure over its "insufficient"
self-rescue efforts as the government and creditors led by the
Korea Development Bank to do more.
The Korea Herald adds that Prime Minister Han Duck-soo said
Taeyoung's management should do "the painful work as if cutting
their bones," on Jan. 7.
Lee Bok-hyun, chief of the Financial Supervisory Service, stressed
that Taeyoung has to come up with plans that the Korea Development
Bank can at least accept to persuade other creditors, the report
relays.
The Korea Herald adds that Taeyoung's debt restructuring plan
remains half-baked, as it has not mapped out a scheme to provide
collateral for the holding company's shares and secure operating
funds of at least KRW500 billion, which were additionally requested
by creditors.
Financial authorities and creditors are demanding that the
ownership family, including Taeyoung Group Chairman Yoon Seok-min,
put up 33.7 percent of TY Holdings shares as collateral. Creditors
suspect that the family is risking the bankruptcy of Taeyoung E&C
to protect the holding company and its management rights of
broadcaster SBS, the report states.
If Taeyoung E&C is put under court receivership, a chain reaction
of bankruptcies of its subcontractors could be sparked, as its
transactions with banks and all creditors will be suspended.
According to the construction company, the number of subcontractors
tied to Taeyoung business stands at 1,075, nearly double the 581
the government tallied, the report relays.
The creditors' meeting, which will make the final decision on
whether to launch the workout program, is to be held Jan. 11.
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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
*** End of Transmission ***