/raid1/www/Hosts/bankrupt/TCRAP_Public/240201.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
Thursday, February 1, 2024, Vol. 27, No. 24
Headlines
A U S T R A L I A
COMPASS OFFICES: Second Creditors' Meeting Set for Feb. 8
DRAGON PACIFIC: First Creditors' Meeting Set for Feb. 6
FRIGG GROUP: Cafe and Catering Business Shut Doors
INSIGNIA HOMES: Builder Collapses Into Liquidation
MELBOURNE REBELS: First Creditors' Meeting Set for Feb. 8
NORTHWEST FREIGHT: Second Creditors' Meeting Set for Feb. 6
SARA LEE: Second Creditors' Meeting Set for Feb. 6
C H I N A
SINO-OCEAN GROUP: Told Creditors Local Debt Payment Comes First
YANTAI CHEFOO: Moody's Withdraws 'Ba1' Corporate Family Rating
H O N G K O N G
CITIC RESOURCES: Moody's Assigns 'Ba2' CFR, Outlook Stable
I N D I A
AADHYA INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
ABAN EXIM: Insolvency Resolution Process Case Summary
ANAND ASSOCIATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
ARDHENDU MONDAL: CRISIL Keeps D Debt Ratings in Not Cooperating
ARM WELDERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
BHATADE LOGI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
BRAHMAPUTRA TELE: CRISIL Keeps D Debt Ratings in Not Cooperating
CARAVEL LOGISTICS: Ind-Ra Keeps C Rating in Non-Cooperating
CASTALL TECHNOLOGIES: ICRA Keeps D Ratings in Not Cooperating
CLIFTON EXPORT: Ind-Ra Keeps BB+ Rating in Non-Cooperating
CORROGANON INDIA: Ind-Ra Moves B+ Rating to Non-Cooperating
DEMBLA VALVES: Ind-Ra Moves BB+ Rating to NonCooperating
DHROOV RESORTS: CRISIL Keeps D Debt Rating in Not Cooperating
DM JEWELLERS: Ind-Ra Keeps D Rating in Non-Cooperating
DREAM DIGITAL: ICRA Keeps B- Debt Ratings in Not Cooperating
DURGA SHAKTI: Ind-Ra Keeps D Rating in NonCooperating
EARTH INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating
ELEGENT INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
EVEREST INFRA: Ind-Ra Affirms BB Rating, Outlook Stable
F T TEXTILES: Ind-Ra Keeps BB Rating in NonCooperating
FIROZE FABRICATORS: Ind-Ra Keeps B+ Rating in NonCooperating
FLEXIBLE ABRASIVES: CRISIL Keeps B+ Ratings in Not Cooperating
FOREST VIEW: CRISIL Keeps D Debt Rating in Not Cooperating
G SONS: CRISIL Keeps B+ Debt Ratings in Not Cooperating Category
GARG SONS: Ind-Ra Assigns BB+ Bank Loan Rating, Outlook Stable
GEMUS ENGINEERING: Ind-Ra Keeps BB- Rating in NonCooperating
GOVARDANAGIRI AGRO: Ind-Ra Keeps D Rating in NonCooperating
GREEN PETRO: Ind-Ra Keeps BB- Rating in NonCooperating
HOTEL TULI: CRISIL Keeps B Debt Ratings in Not Cooperating
INDRAYANI SALES: CRISIL Keeps B Debt Ratings in Not Cooperating
JDN NUTRITION: Ind-Ra Moves BB Rating to Non-Cooperating
KILAVIKULAM RAJALAKSHMI: Ind-Ra Assigns BB- Bank Loan Rating
LEISURE CORP: CRISIL Keeps B+ Debt Ratings in Not Cooperating
MAHALASA EXPORTS: Ind-Ra Moves BB+ Rating to Non-Cooperating
MANAKAMNA FLOUR: CRISIL Keeps B+ Debt Rating in Not Cooperating
MATHURA AGRO: CRISIL Keeps B- Debt Ratings in Not Cooperating
MODERN OVERSEAS: CRISIL Keeps D Debt Rating in Not Cooperating
NIRMAL TRADERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
NOOR ICE: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
OSCORP INDUSTRIES: Insolvency Resolution Process Case Summary
RAJIV PETROCHEMICAL: Ind-Ra Affirms BB+ Bank Loan Rating
RICHA INDIA: Insolvency Resolution Process Case Summary
ROHIT EXTRACTIONS: Ind-Ra Corrects August 2, 2023 Rating Release
RRR CONSTRUCTIONS: Ind-Ra Affirms BB Rating, Outlook Positive
S S SUPER: ICRA Keeps B+ Debt Rating in Not Cooperating Category
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
SANGANI INFRASTRUCTURE: Ind-Ra Cuts Debt Rating to D
SANJAR PHARMA: CRISIL Keeps B- Debt Ratings in Not Cooperating
SARA SUOLE: Ind-Ra Moves C Rating to Non-Cooperating
SD INFRA: Ind-Ra Moves B- Rating to Non-Cooperating
SHAH STEEL: Insolvency Resolution Process Case Summary
SHIVANGAN FOOD: ICRA Keeps B Debt Ratings in Not Cooperating
SHM SHIPCARE: ICRA Keeps B+ Debt Ratings in Not Cooperating
SHRI FAKIRCHAND: Insolvency Resolution Process Case Summary
SPICEJET LTD: NCLT Rejects Wilmington's Insolvency Plea
SSI GOLD: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
STERLING AND WILSON: Ind-Ra Cuts Bank Loan Rating to C
T T LIMITED: Ind-Ra Keeps BB+ Rating in Non-Cooperating
TAMIL NAADU: Ind-Ra Cuts Bank Loan Rating to BB, Outlook Negative
VENKATESHWARA SHIKSHAN: CRISIL Keeps D Ratings in Not Cooperating
VIPUL-S PLASTOCRAFTS: Liquidation Process Case Summary
YAXIS STRUCTURAL: Ind-Ra Moves BB Rating to Non-Cooperating
N E W Z E A L A N D
AGWATER ENGINEERING: Creditors' Proofs of Debt Due on Feb. 26
CAPITAL LI: Court to Hear Wind-Up Petition on Feb. 16
COMBINED PROPERTY: Creditors' Proofs of Debt Due on Feb. 29
HYDRAULIC SOLUTIONS: Creditors' Proofs of Debt Due on Feb. 26
MAINZEAL GROUP: Liquidators Pursue Richard Yan Over NZD60.9MM Debt
NEW ZEALAND VACUUM: PwC Appointed as Administrators
ORGANIC DAIRY: Cooperative Goes Into Voluntary Liquidation
PROVENANCE: Creditors Seek NZD1.2 Million From Failed Restaurant
SMUDGY DEVELOPMENTS: Thomas Lee Rodewald Appointed as Receivers
S I N G A P O R E
BONHAM STRAND: Creditors' Proofs of Debt Due on Feb. 29
MARINE ITALIA: Commences Wind-Up Proceedings
MARITIME INTERNATIONAL: Court Enters Wind-Up Order
YAU SHING: Court to Hear Wind-Up Petition on Feb. 9
S O U T H K O R E A
TERRAFORM LABS: Says Bankruptcy Will Enable Appeal of SEC Lawsuit
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A U S T R A L I A
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COMPASS OFFICES: Second Creditors' Meeting Set for Feb. 8
---------------------------------------------------------
A second meeting of creditors in the proceedings of Compass Offices
Australia Pty Ltd and Compass Offices (Sydney) Pty Ltd has been set
for Feb. 8, 2024 at 3:00 p.m. and 4:30 p.m. respectively, 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 Feb. 7, 2024 at 12:00 p.m.
Manuel Hanna and Renee Di Carlo of Romanis Cant were appointed as
administrators of the company on Dec. 22, 2023.
DRAGON PACIFIC: First Creditors' Meeting Set for Feb. 6
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Dragon
Pacific Group Pty Ltd will be held on Feb. 6, 2024 at 10:00 a.m. at
the offices of 278 Barker Road at Subiaco and via virtual meeting
technology.
Ross Stephen Thomson of Bankruptcy Advisory Centre was appointed as
administrator of the company on Jan. 24, 2024.
FRIGG GROUP: Cafe and Catering Business Shut Doors
--------------------------------------------------
Freddy Pawle for Daily Mail Australia reports that a beloved cafe
and catering business has announced it has been forced to shut its
doors because of skyrocketing operational costs.
Frigg Group was founded in 2017 by twin sisters Maria Noutsatos and
Toula Scott after they opened their first cafe at Labrador on the
Gold Coast.
According to Daily Mail Australia, the family business quickly grew
to provide event catering and expanded to four locations in Nerang,
Manly West and Ascot, with the Labrador cafe eventually relocating
to Southport.
Despite surviving through Covid lockdowns and remaining popular
among locals, the sisters have been unable to keep up with rising
costs and curbed customer spending during Australia's
cost-of-living crisis.
Announcing the closure with a 'heavy heart' to Facebook, the twins
told followers the Frigg Group had been placed into voluntary
administration with SV Partners, Daily Mail Australia reports.
Daily Mail Australia says Ms. Scott described the situation as
'beyond devastating', especially having emerged from the Covid
lockdowns period with the business intact.
She said the twins had done everything 'in our power' to also
overcome the current cost-of-living crisis and to future-proof the
business.
'One could not predict the perfect storm of events which is heavily
impacting hospitality and small business right now and has done so
for more than 18-months,' the statement from the owners reads.
'This storm includes the cost of living crisis and the cost of
everything in running business exceedingly rising.'
The increased operational costs had placed the business under
intense stress 'with no relief in sight or government support'.
'This crisis is in epidemic proportion and is effecting so many
family owned and operated brick and mortar long-term businesses,'
the statement reads.
'As the owners we absolutely tried every avenue to save the cafes.'
Daily Mail Australia relates that the statement also revealed that
Ms. Noutsatos had been running the business from a caravan on her
property after recent natural disasters had severely damaged her
home.
'(We) put on a brave and happy face because when you are in
hospitality you are on and that’s what is expected.
'We absolutely did love what we created even throughout all the
adversities. We will miss the Frigg family.'
Daily Mail Australia adds that the twins hope the business can
'find a new home' with owners who will care for it as much as they
have.
INSIGNIA HOMES: Builder Collapses Into Liquidation
--------------------------------------------------
David Southwell for Daily Mail Australia reports that a building
firm has collapsed owing more than AUD6 million to creditors.
Insignia Homes, which is based on the Gold Coast, has stopped all
work on its sites after going into liquidation on Jan. 29.
This leaves a confirmed eight Insignia sites to languish despite
the homes being near to completion in the Queensland cities of
Toowoomba and Logan.
However, a contractor told the Gold Coast Bulletin there are many
other builds stalled at earlier construction stages, Daily Mail
Australia relays.
According to Daily Mail Australia, the company's sole director
Kevin Ross said it's 'a sad time for everyone involved' but
declined to answer further.
Liquidator William Robson of Robson Cotter has been appointed to
distribute company assets, Daily Mail Australia discloses.
Shares in the company are held by Keven Ross's wife Lee Ross via a
holding company with the rest of equity held by another company
directed and held by Queenslander Peter Ramsay, 73, and his wife
Brenda.
In a report, Mr. Ross said the company owed AUD2.72 million to
trade creditors, as well as AUD249,661 to the ATO and AUD49,500 in
client deposits, Daily Mail Australia relays.
The report also listed AUD4.6 million as owing to 84 Dixon, a
related company solely directed and held by Mr. Ramsay with another
AUD1.29 million owed to financier CGA Capital.
One creditor, who spoke to the Gold Coast Bulletin on condition of
anonymity, said some clients had nothing to show for their deposits
despite continual reassurances from the company, according to Daily
Mail Australia.
'There were complaints from clients who had paid their deposits and
were sitting around waiting for starts or approvals,' they said.
'They kept saying it was fine but then they went into liquidation
on Jan. 26 – it shocked all the suppliers and clients.'
A subcontractor who claims to be owed more than AUD100,000 said the
carnage in the building industry has left them repeatedly out of
pocket.
'Obviously it sucks because that money comes straight off the
profit line,' the person said.
'We've paid for everything upfront.'
Queensland Building and Construction Commission records show
Insignia logged 31 jobs for revenue of AUD10.5 million in 2022-23.
The Commission recorded 84 jobs for AUD282 million the previous
financial year and 112 jobs for AUD27 million the year before
that.
However, for the current financial year Insignia had only logged
five jobs totalling AUD3.95 million with the Commission, Daily Mail
Australia discloses.
MELBOURNE REBELS: First Creditors' Meeting Set for Feb. 8
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Melbourne
Rebels Rugby Union Pty Ltd will be held on Feb. 8, 2024 at 10:30
a.m. via virtual technology.
Martin Ford and Stephen Longley of PricewaterhouseCoopers were
appointed as administrators of the company on an. 29, 2024.
NORTHWEST FREIGHT: Second Creditors' Meeting Set for Feb. 6
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Northwest
Freight Services Kempsey Pty Limited has been set for Feb. 6, 2024
at 11:30 a.m. via video conference.
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 Feb. 5, 2024 at 5:00 p.m.
Richard Albarran, Kathleen Vouris and John Vouris of Hall Chadwick
were appointed as administrators of the company on Sept. 29, 2023.
SARA LEE: Second Creditors' Meeting Set for Feb. 6
--------------------------------------------------
A second meeting of creditors in the proceedings of Sara Lee
Holdings Pty Ltd has been set for Feb. 6, 2024 at 11:00 a.m. 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 Feb. 5, 2024 at 4:00 p.m.
Joseph Hansell, Vaughan Strawbridge, and Kathryn Evans of FTI
Consulting were appointed as administrators of the company on Oct.
17, 2023.
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C H I N A
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SINO-OCEAN GROUP: Told Creditors Local Debt Payment Comes First
---------------------------------------------------------------
Bloomberg News reports that Sino-Ocean Group Holding Ltd. told a
key group of its dollar bond creditors that it will prioritize
repaying its local debt, according to people familiar with the
matter.
Bloomberg relates that the state-linked distressed builder didn't
present a restructuring plan for its offshore debt at its first
so-called principal-to-principal meeting with the ad-hoc creditor
group earlier this month, said the people who asked not to be
identified discussing private matters.
The creditor group, which holds over 25% of Sino-Ocean’s six
outstanding senior unsecured dollar bonds, asked the developer to
come up with a broad restructuring blueprint for all bondholders
with the support of its major shareholder China Life Insurance Co,
the people said, Bloomberg relays.
Sino-Ocean and Linklaters LLP, the legal adviser to the ad hoc
bondholder group, declined to comment when reached by Bloomberg.
Haitong International Securities Group Ltd, the financial adviser
to the ad hoc group, didn't reply to Bloomberg's request seeking
comment.
According to Bloomberg, the meeting underscores the uncertainties
faced by offshore creditors of delinquent Chinese firms in their
efforts to access assets in China. Negotiations with other
developers have also been slow, with China Evergrande Group, the
poster child for the market bust, ordered into liquidation on
Jan. 29.
Bloomberg relates that Sino-Ocean's meeting with the ad hoc
creditor group came after the latter sent a statutory demand this
month to nudge the builder to the negotiation table. The demand is
a requirement before creditors can petition a court in Hong Kong to
liquidate a debtor's assets. To be sure, it's unclear how rulings
in Hong Kong courts would be carried out in mainland China, given
the limited recognition of the city's insolvency proceedings.
Sino-Ocean is among a select group of defaulters that have Chinese
state-owned companies as major shareholders, which provides a level
of confidence to investors. China Life owns 29.59% of the builder.
Still, it said last August that its stake in Sino-Ocean is a
financial investment.
Bloomberg says the developer told some bondholders earlier this
month that it plans to extend all its local yuan bonds outstanding,
including pushing back maturities of four notes by up to 30 months.
Sino-Ocean said it has received approval from creditors to extend
seven onshore bonds and three asset-backed security products
totaling CNY18.3 billion in a Jan. 26 exchange filing.
The Chinese developer has more than 290 projects in the country,
Bloomberg notes. It began showing signs of liquidity stress in
early July, when it proposed to some major holders of a CNY1.5
billion bond due 2024 to extend paying the notes. It became a
defaulter in September when it suspended payment on all its
offshore borrowings.
About Sino-Ocean Group
Sino-Ocean Group Holding Limited, formerly Sino-Ocean Land Holdings
Limited, is an investment holding company principally engaged in
property development and property investment in the People's
Republic of China (the PRC). The Company is engaged in property
development in Beijing-Tianjin-Hebei, Northeast, Central and
Southern.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
19, 2023, Moody's Investors Service has downgraded Sino-Ocean Group
Holding Limite's corporate family rating to Ca from Caa2.
At the same time, Moody's has downgraded to C from Caa3, the backed
senior unsecured ratings on the bonds issued by Sino-Ocean Land
Treasure Finance I Limited, Sino-Ocean Land Treasure Finance II
Limited, and Sino-Ocean Land Treasure IV Limited and guaranteed by
Sino-Ocean.
The outlook remains negative.
YANTAI CHEFOO: Moody's Withdraws 'Ba1' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has withdrawn Yantai Chefoo Finance
Holding Group Co., Ltd's Ba1 corporate family rating.
The outlook prior to the withdrawal was negative.
RATINGS RATIONALE
Moody's has decided to withdraw the rating for its own business
reasons.
COMPANY PROFILE
Established in 2017, Yantai Chefoo Finance Holding Group Co., Ltd
is 99.93% owned by the Yantai Zhifu district-level government via
the State-owned Assets Operation Center of Yantai Zhifu district,
and 0.07% owned by Yantai Finance Development Investment Group Co.,
Ltd., which is jointly owned by the Yantai Finance Bureau and the
Shandong Finance Bureau.
The company is the largest state-owned enterprise in Zhifu
district, responsible for urban infrastructure construction,
primary land development and industrial park development. As of the
end of 2022, the company reported total assets of RMB35.2 billion.
=================
H O N G K O N G
=================
CITIC RESOURCES: Moody's Assigns 'Ba2' CFR, Outlook Stable
----------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating of
Ba2 to CITIC Resources Holdings Limited. The outlook is stable.
RATINGS RATIONALE
CITIC Resources' CFR incorporates its standalone credit profile and
a two-notch uplift to reflect strong support from its parent CITIC
Limited (A3 stable) in times of financial stress.
The two notches of parental support consider (1) CITIC Resources'
role within CITIC Limited as the overseas platform for natural
resource acquisitions and development, and its close control and
supervision by the parent group; (2) the high reputational risk for
CITIC Group if CITIC Resources were to default; and (3) the track
record of parental support, demonstrated by the US$1.03 billion
standby shareholder facility and $500 million shareholder loan
granted to the company during industry downturns in 2015-17.
CITIC Resources' standalone credit profile reflects its (1)
established production track record at its major oilfield and its
moderately diversified asset portfolio, also including coal and
aluminum; and (2) improved cash flow and leverage over the past two
years, with a very good liquidity profile, and Moody's expectations
that the company will be able to maintain its currently strong
financial metrics under the agency's base-case oil price
assumption.
These strengths are counterbalanced by the company's (1) small
scale in the oil exploration and production (E&P) sector; (2)
heightened exposure to carbon transition risk and the inherent
volatility in the commodity industry; and (3) execution risk from
its expansionary plans.
CITIC Resources is CITIC Limited's overseas subsidiary that focuses
on resource development under the group's advanced materials
segment, one of its five strategic industries. The group's other
strategic segments include comprehensive financial services,
advanced intelligent manufacturing, new consumption and new-type
urbanization.
CITIC Limited exerts strong oversight over CITIC Resources'
operating and financial strategy, by appointing its chairman and
giving first screening and final approval on key project planning.
CITIC Resources' sharing of the CITIC brand represents a high
reputational risk for the group if the company were to default.
CITIC Limited has a track record of providing a standby liquidity
facility and shareholder loans, which totaled about US$1.5 billion
during the industry downcycles in 2015-17.
CITIC Resources' production assets reside in China, Kazakhstan,
Indonesia and Australia, and its key commodities under production
include crude oil, natural gas, coal, bauxite, alumina and
aluminum. It also has a trading operation focusing on energy
commodities.
The company's total revenue increased by 53% and 35% in 2021 and
2022, respectively, following an average decline of 20% decline per
year over the preceding two years, reflecting high commodity price
volatility during the period.
Moody's expects CITIC Resources' total revenue to fall by 28% to
HK$4.2 billion in 2023, before increasing in 2024. The revenue
contraction is driven primarily by lower crude oil prices than in
2022 and the company's limited trading revenue in 2023.
Moody's expects benchmark Brent oil prices to decline further to
US$70 per barrel (/bbl) and US$65/bbl in 2024 and 2025,
respectively, compared with US$85/bbl for 2023. Nevertheless, CITIC
Resources' growing trading revenue will more than offset a
continued decrease in its oil E&P business, resulting in an
increase in its total revenue in 2024.
CITIC Resources' adjusted EBITDA margin has been volatile along
with commodity prices, ranging between negative 3% and 49% over the
past five years. Moody's expects the company's EBITDA margin to
stay at the 20%-22% range over the next 12-18 months, based on the
above crude oil price assumptions.
The company reduced its total adjusted debt to HK$1.9 billion as of
June 2023, compared with more than HK$7 billion six years ago, on
the back of stronger cash flow and CITIC Limited's solid strategic
oversight.
As a result, its leverage, as measured by Moody's-adjusted
debt/EBITDA, improved to 1.2x for the year ended June 2023, from
2.0x-5.0x during 2017-21. Its retained cash flow (RCF) to debt
ratio increased to around 50% for the twelve months ended June
2023, compared with less than 20% before 2021.
Moody's forecasts the company's leverage will stay below 2.0x and
its RCF/debt ratio at 40%-45% over the next 12-18 months, based on
the agency's current oil price assumptions and its expectation that
CITIC Group will closely supervise CITIC Resources' financial
planning and strategic change in operations, if any.
CITIC Resources' rating also reflects the company's small scale,
with its annual crude oil production of about 9.7 million barrels
and proved developed reserve size of around 66 million barrels.
China consumed over 5 billion barrels of oil in 2022.
The company also faces heightened carbon transition risk with its
commodity products, such as crude oil, coal and aluminum, which may
pressure its product demand growth over the long term, reflecting
the growing consumption of alternative, cleaner resources.
The impact of inherent commodity market volatility, reflected in
CITIC Resources' financial performance over industry cycles, is
another risk factored in the rating.
In addition, CITIC Resources' expansion into resource development
and trading operations will likely carry meaningful execution
risks, although CITIC Limited's strong control and risk management
oversight temper the risks.
CITIC Resources' liquidity is very good. As of June 2023, the
company's HKD1.6 billion in cash and cash-like items, together with
its expected operating cash flow for the next 12 months, will be
more than sufficient to cover its short-term debt, capital spending
and dividend payments during the period.
The rating also considers the following environmental, social and
governance (ESG) factors.
The company has a high exposure to fossil fuels, and its production
of other commodities involve energy-intensive processing. Demand
for such products will come under pressure amid the transition
toward renewable energy sources, reflecting the company's high
carbon transition risk.
In terms of social risk, the company is exposed to potential
changes in policy that could affect the supply chain or market
access to its commodity products, which could require cross-border
transportation. China's aging population and stronger push for
cleaner energy could also slow consumption of its products over
time.
CITIC Resources' ownership is concentrated, with 59.5% of its
equity controlled by state-owned CITIC Limited. Strong government
oversight of the parent group and indirectly on CITIC Resources
alleviates this risk. Independent members comprise 60% of its board
and the company has been listed on the Hong Kong Stock Exchange
since 1997.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook reflects Moody's expectation that CITIC
Resources will (1) continue to generate positive operating cash
flow and maintain its improved credit metrics through disciplined
capital spending; (2) maintain its good liquidity; and (3) continue
to receive financial support from its parent, CITIC Limited, when
needed.
Factors that could lead to an upgrade
Upward pressure on the rating could emerge if the company (1)
improves its standalone credit profile by successfully ramping up
its production and reserve scale, while maintaining production
efficiency and operating costs as well as a low leverage on a
sustained basis; and / or (2) demonstrates evidence of stronger
support from its parent company, CITIC Limited.
Factors that could lead to a downgrade
Downward rating pressure could emerge if (1) CITIC Limited reduces
its ownership or support for the company; or (2) the company's
credit profile deteriorates because of large debt-funded
acquisitions or capital spending or a reduction in its production
and reserve scale.
Credit metrics indicative of downward pressure include RCF/debt
falling below 25% or leveraged full-cycle ratio below 1.0x, both on
a sustained basis.
The principal methodology used in this rating was Independent
Exploration and Production published in December 2022.
CITIC Resources Holdings Limited is an energy and natural resources
investment holding company with interests in aluminum smelting,
coal, the import and export of commodities, and bauxite mining and
alumina refining. It also has interests in the exploration,
development and production of oil. The company serves as the
principal natural resources and energy arm of its parent, CITIC
Limited.
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I N D I A
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AADHYA INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Aadhya Infra
Management Builders and Developers (Aadhya) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Aadhya for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Aadhya, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Aadhya is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Aadhya continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Aadhya, established in 2016, is undertaking the Aadhya Advaita
project on Kismatpur Road, Hyderabad. The project comprising of 61
luxury villas is spread across 6 acres and is under construction as
of December, 2017.
ABAN EXIM: Insolvency Resolution Process Case Summary
-----------------------------------------------------
Debtor: Aban Exim Private Limited
F No-210, P No-12, Suneja Tower,
Janakpuri, New Delhi
New Delhi-110058
Insolvency Commencement Date: January 1, 2024
Estimated date of closure of
insolvency resolution process: June 29, 2024
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Vikram Bajaj
214, Tower A, Spazedge,
Sector 47, Gurgaon - 110034
Email: bajaj.vikram@gmail.com
Email: ip.aban@yahoo.com
Last date for
submission of claims: January 15, 2024
ANAND ASSOCIATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Anand
Associates (Gandhinagar) (AA) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 1 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Bank 2 CRISIL B+/Stable (Issuer Not
Guarantee Cooperating)
CRISIL Ratings has been consistently following up with AA for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AA is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AA
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Established in 2001 and based in Ahmedabad (Gujarat), AA undertakes
building construction. The firm is a partnership entity promoted by
Mr. Paresh Nacchani and his family members. It is focused on
engineering, procurement, and construction (EPC) projects in the
civil infrastructure segment, mainly building construction for
various government departments.
ARDHENDU MONDAL: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ardhendu
Mondal (AM) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.42 CRISIL D (Issuer Not
Cooperating)
Proposed Bank 3.58 CRISIL D (Issuer Not
Guarantee Cooperating)
Secured Overdraft 6.00 CRISIL D (Issuer Not
Facility Cooperating)
CRISIL Ratings has been consistently following up with AM for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AM is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of AM
continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
M/s Ardhendu Mondal (AM), is a partnership firm, incorporated in
1992. The firm is promoted by Mr. Ardhendu Mondal and his family
members. AM undertakes road construction, irrigation, canal
protection and maintenance projects, in the state of west Bengal.
ARM WELDERS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Arm Welders
Private Limited (AWPL) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 8.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 4.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AWPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AWPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AWPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AWPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Incorporated in 1998, AWPL is primarily engaged in designing,
manufacturing, and installation of robotic welding arms and
automation services. The company's manufacturing facility is in
Bhosari, Pune. AWPL is promoted by Mr Atul Khanderia.
BHATADE LOGI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bhatade Logi
Lam Private Limited (BLLPL) continue to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 4.95 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BLLPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BLLPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BLLPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BLLPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2017, BLLPL is setting up a plant to manufacture
laminate films in Aurangabad, Maharashtra. The plant is expected to
start operations in November 2020. BLLPL is owned and managed by Mr
Sanjay Bhatade and Mr Sachin Bhatade.
BRAHMAPUTRA TELE: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Brahmaputra
Tele Productions Private Limited (BTPPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 10.23 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 6.77 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BTPPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BTPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BTPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BTPPL continues to be 'CRISIL D Issuer Not Cooperating'.
BTPPL was incorporated in 2001 by Mr Jaiswal and family as Jaintia
Ispat Pvt Ltd in Assam. It was renamed as Tsang-Po Smelter Pvt Ltd
in 2003 and got its present name in 2006. BTPPL operates a 24-hour
free-to-air (FTA) satellite news channel, DY365, in Assamese. The
company launched an FTA general entertainment channel, Jonak, in
October 2014.
CARAVEL LOGISTICS: Ind-Ra Keeps C Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Caravel
Logistics 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 C/ (ISSUER
NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING)' on the agency's
website.
The detailed rating actions are:
-- INR96 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND C (ISSUER NOT COOPERATING)/IND
A4 (ISSUER NOT COOPERATING) rating; and
-- INR15 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND C (ISSUER NOT COOPERATING)/
IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Caravel Logistics provides ocean freight logistics and value-added
services for container cargo movements.
CASTALL TECHNOLOGIES: ICRA Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Castall Technologies 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– 23.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 3.04 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 0.40 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long Term- 18.06 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Castall Technologies 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.
Castall Technologies Private Limited, is promoted by Mr. N. Madhu
Venkateshwar, was incorporated in the year 1999 and is
in the business of manufacturing of aluminium die castings for auto
OEMs and tier I suppliers. The manufacturing facility is spread
over 1 acre in Gandhinagar, Hyderabad. CTPL's products cover the
entire spectrum of two-wheelers, Light Commercial Vehicles,
passenger cars and heavy-duty trucks.
CLIFTON EXPORT: Ind-Ra Keeps BB+ Rating in Non-Cooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Clifton Export
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB+/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR620 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR41.50 mil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR31.10 mil. Term loan due on March 31, 2023 maintained in
non-cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Clifton Export was established as a proprietorship concern by B.
Nadanasabapathy in 1993. Subsequently, in 2007, the firm was
converted into a private limited company and renamed as Clifton
Exports. The company manufactures hosiery and garments for
infants.
CORROGANON INDIA: Ind-Ra Moves B+ Rating to Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
CORROGANON INDIA PRIVATE LIMITED to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 3 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR26 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR104 mil. Non-Fund Based Working Capital Limit 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
Company Profile
Incorporated in 1985, CIPL is a Kolkata-based civil construction
company and executes projects such as construction of buildings,
hostels, government quarters and design, manufacture, erection
and commissioning of reverse osmosis plants. The company is
executing two projects in Odisha.
DEMBLA VALVES: Ind-Ra Moves BB+ Rating to NonCooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Dembla Valves
Limited's bank facilities' ratings to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency through
emails and phone calls. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
ratings will now appear as 'IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR495 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR300 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR200 mil. Proposed non-fund-based working capital limits
migrated to non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The issuer did not co-operate; based
on the best available information. The ratings were last reviewed
on 25 November 2022. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
Company Profile
Incorporated in 1989, Dembla Valves provides fabrication of
valves, catering largely to the oil and pharmaceutical industries.
DHROOV RESORTS: CRISIL Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dhroov Resorts
(DR) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DR for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DR is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of DR
continues to be 'CRISIL D Issuer Not Cooperating'.
DR operates a single hotel located at Lakkar Bazaar, Shimla
Himachal Pradesh. The hotel began its commercial operations from
June 10, 2017. DR is owned & managed by Mr. Balbir Singh Verma.
DM JEWELLERS: Ind-Ra Keeps D Rating in Non-Cooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained D.M. Jewellers'
instrument(s) rating in the non-cooperating category. The issuer
did not participate in the surveillance exercise, despite
continuous requests and follow-ups by the agency through emails and
phone calls. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The detailed rating action is:
-- INR187 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
D.M. Jewellers is a Gujarat-based proprietorship firm that trades
gold, diamond and silver jewellery. It has a 1,200 square foot
showroom in Navsari, Gujrat.
DREAM DIGITAL: ICRA Keeps B- Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Dream Digital
in the 'Issuer Not Cooperating' category. The ratings are denoted
as [ICRA]B-(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.56 [ICRA]B- (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 1.50 [ICRA]B- (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 0.12 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Dream Digital, 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 the year 2015, Dream Digital is a Gujarat-based
partnership firm promoted by Mr. Parimal Vakharia and Mr. Vinay
Patel. The firm is involved in the business of digital printing on
greige fabrics. The firm commenced its commercial production on
July 29, 2015, and has completed its first year of operation in
FY2016. It has its printing unit in GIDC, Surat whichhas an
installed capacity of printing 1.08 lac metres of cloth per month.
DURGA SHAKTI: Ind-Ra Keeps D Rating in NonCooperating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Durga Shakti
Foods Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D/ (ISSUER NOT
COOPERATING)/IND D (ISSUER NOT COOPERATING)' on the agency's
website.
The detailed rating actions are:
-- INR119 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)/
IND D (ISSUER NOT COOPERATING) rating; and
-- INR5 mil. Non-Fund Based Working Capital Limit maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in 2008, DSFPL is engaged in the processing of
soyabean for extracting soyabean oil and soya de-oiled cake. The
processing facility is located in Khamgaon and Nagpur in
Maharashtra.
EARTH INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Earth
International Private Limited (EIPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Packing Credit 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 2.5 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with EIPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of EIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
EIPL was incorporated in 1996 by Mr.B K Jain. EIPL is engaged in
the manufacturing of nanoclay, exothermic riser sleeves, bentonite,
quartz powder, feldspar powder, mica powder and hydrogel which find
applications in oil-well industries, foundries, civil construction,
ceramic sanitary wares and in agriculture. The company's
manufacturing facility is based in Gujarat and Neemrana
(Rajasthan).
ELEGENT INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Elegent
Infrastructure Private Limited (EIPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL D (Issuer Not
Cooperating)
Term Loan 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with EIPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of EIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on EIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
EIPL continues to be 'CRISIL D Issuer Not Cooperating'.
Elegent Infrastructure P Ltd. (EIPL), incorporated in 2005 by Mr.
Mahender Arora, Mr. Sunil Chutani and Mr. Pradeep Bajaj is engaged
in real estate development. The company is currently developing a
residential project in name of 'Terra Elegance' at Bhiwadi
(Rajasthan).
EVEREST INFRA: Ind-Ra Affirms BB Rating, Outlook Stable
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Everest Infra Ventures (India) Private Limited's
(EIVIPL) bank facilities:
-- INR80 mil. Fund-based limits affirmed with IND BB/Stable/IND
A4+ rating;
-- INR50 mil. Fund-based limits assigned with IND BB/Stable/IND
A4+ rating;
-- INR973.9 mil. Non-fund-based limits affirmed with IND A4+
rating; and
-- INR206.1 mil. Non-fund-based limits assigned with IND A4+
rating.
Analytical Approach: Ind-Ra continues to take a standalone view of
EIVIPL to arrive at the ratings.
Key Rating Drivers
The affirmation reflects EIVIPL's medium scale of operations, with
its revenue reducing to INR628 million in FY23 (FY22: INR1,512.6
million; FY21: INR1,088 million), due to non-availability of orders
in hand. As of June 30, 2023, the company had an order book of
INR5,395 million, of which around 85% are scheduled to be completed
by FY25. The new projects in the order book are from Kerala Water
Authority under Jal Jeevan Mission only. The company booked revenue
of INR338.54 million until October 2023, with its receivable
pertaining to work completed in the previous year. Furthermore,
EIVIPL has bid for projects worth INR3,504.9 million which have
been under evaluation. Its FY23 financials are provisional in
nature.
The company's EBITDA margins remained modest and declined to 1.45%
in FY23 (FY22: 11%; FY21: 20%) due to employee benefit expenses,
which are fixed costs. The return on capital employed declined to
0.1% in FY23 (FY22: 5.7%; FY21: 7.3%). Its absolute EBITDA also
reduced to INR9.12 million in FY23 (FY22: INR165.88 million; FY21:
217.35 million), due to the fall in its revenue and an increase in
expenses. Until October 2023, its EBITDA stood at INR50.78
million. Ind-Ra expects its EBITDA and EBITDA margins to improve in
the near term, driven by its increased revenue supported by the
revenue visibility from its new orders.
The company has modest credit metrics. The gross interest coverage
(operating EBITDA/gross interest expense) deteriorated to 0.09x in
FY23 (FY22: 2.66x; FY21: 1.31x), due to the decline in the EBITDA
and an increase in its interest costs to INR103 million (INR62
million), on account of higher utilization of its working capital
facilities. The net leverage (total adjusted net debt/operating
EBITDAR) soared to 206.48x in FY23 (FY22: 12.02x; FY21: 10.4x), due
to the reduction in its EBITDA. Its optionally convertible
debentures worth INR717.5 million and compulsory convertible
debentures worth around INR300 million carry an interest rate of
0.1% per annum.
Liquidity Indicator - Stretched: The company's fund-based limit was
utilized around 29% during the 12 months ended October 2023;
however, the average use of the bank guarantee limit was around
63%. There are no scheduled repayments for loans from related
parties. EIVIPL can defer the repayment and it does not plan for
any repayments in FY24. Depending upon the company's cash flow, its
loans from the related parties shall be paid. The cash flow from
operations turned negative INR77.4 million in FY23 (FY22: positive
INR680 million; FY21: INR303 million), due to the increase in its
interest costs and an elongation of its net working capital cycle
to 491 days in FY23 (FY22: 182; FY21: 561), resulting from an
increase in the receivable period to 230 days (FY22: 88 FY21: 154)
and the inventory holding period to 381 days (FY22: 154 ; FY21: 509
). The company's cash and cash equivalents stood at INR23.31
million at FYE23 (FYE22: INR3.4 million; FYE21: INR9 million). It
had nil short-term loans in FYE23 (FY22: INR14.1 million; FY21:
INR347 million), due to the repayment of its vehicle loans and
non-utilization of its fund-based limits as of March 2023. However,
the unsecured debt (including optionally convertible debentures)
reduced to INR1,756.4 million in FY23 (FY22: INR1,833 million;
FY21: INR1,772 million), due to the repayment of its vehicle loans
and some related party loans. The company pays interest only on
part of its loans from related parties (excluding optionally
convertible debentures and a few of the unsecured loans).
However, the ratings are supported by EIVIPL's strong promoters,
who are also the promoters of Apollo Hospitals Enterprise Limited
(debt rated at 'IND AA+'/Stable). A promotor-backed associate
company infused additional capital in the form of unsecured loans
and has provided an undertaking to provide timely financial support
to the company, if required. The loans taken from the bank are
pledged by the promoter group shares from Apollo Hospitals
Enterprise.
Rating Sensitivities
Positive: An improvement in the revenue and the interest coverage
remaining above 2x, along with an improvement in the liquidity, all
on a sustained basis, will be positive for the ratings.
Negative: The inability to improve the scale of operations, credit
metrics and overall liquidity, on a sustained basis, will lead to a
negative rating action.
Company Profile
Incorporated on September 5, 2014, EIVIPL is engaged in the
execution of turnkey civil contracts in Andhra Pradesh, Telangana
and Kerala.
F T TEXTILES: Ind-Ra Keeps BB Rating in NonCooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained F T Textiles
Private Limited's instrument(s) rating in the non-cooperating
category. The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the agency
through emails and phone calls. Therefore, investors and other
users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND BB/Stable
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR75 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR4.5 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR29.24 mil. Term loan due on November 30, 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
F T Textiles was incorporated in January 2010 in Bhiwandi (Thane)
by Fayyazuddin Mulla. It manufactures grey fabrics and sells them
under the brand name FT Guru, mainly in Surat (Gujarat).
FIROZE FABRICATORS: Ind-Ra Keeps B+ Rating in NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Firoze
Fabricators' 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:
-- INR50 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND B+/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR16 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR6.2 mil. Term loan due on May 31, 2024 maintained in non-
cooperating category with IND B+/Stable(ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Firoze Fabricators has been engaged in the fabrication and
erection of mechanical and engineering equipment since 1974.
FLEXIBLE ABRASIVES: CRISIL Keeps B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Flexible
Abrasives Private Limited (FAPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 6.25 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 1.2 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 3.05 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with FAPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FAPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Incorporated in 2007, FAPL started its commercial operations in
January 2012 and is promoted by Mr Rajesh Lundia. Company is
engaged in manufacturing of cloth based coated abrasives used in
grinding and polishing.
FOREST VIEW: CRISIL Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Forest View
Resort (FVR) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with FVR for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FVR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FVR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FVR continues to be 'CRISIL D Issuer Not Cooperating'.
FVR is a proprietorship concern of Mr Deepanshu Gautam. The firm
has a resort, De Exotica Crest Resort and Spa, at Theoug, 28
kilometre from Shimla. The resort has 16 luxury rooms, a banquet
hall and bar, restaurant facilities. The resort offer sports
facilities like Pool Table, Snooker Table, Mini Golf, Swings,
Archery, Sea-Saw, Mountain Bikes, Motor Bike among others. The
resort is located close to Shimla which is a key tourist
destination in the country.
G SONS: CRISIL Keeps B+ Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of G Sons Retail
Private Limited (GSORPL) continue to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 4.25 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with GSORPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GSORPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
GSORPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of GSORPL continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
G Sons Private Limited is engaged in in organised retail business
through its store. It was set up as partnership in 2015 in Koannur,
Kerala. The company presently operates3 segments textile, garment
and home furnishing.
GARG SONS: Ind-Ra Assigns BB+ Bank Loan Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated GARG SONS ESTATE
PROMOTERS PVT LTD's (GSEPPL) bank facilities as follows:
-- INR95 mil. Fund-based working capital limits assigned with IND
BB+/Stable/IND A4+ rating; and
-- INR835 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
Analytical Approach: Ind-Ra has taken a standalone view of GSEPPL
to arrive at the ratings.
Key Rating Drivers
The ratings reflect GSEPPL's small scale of operations, as
indicated by revenue of INR1,019.33 million in FY23 (FY22:
INR605.05 million). In FY23, the revenue increased due to an
increase in the number of orders executed by the company. During
1HFY24, GSEPPL booked revenue of INR265.4 million. The company had
an order book of INR1,914.75 million as of October 2023, to be
executed by FY26, thereby providing revenue visibility of 1.8x of
FY23 revenue. In FY24, Ind-Ra and the management expect the revenue
to improve further due to the healthy order book.
The ratings are supported by GSEPPL's healthy EBITDA margins. The
margin dipped slightly to 14.52% in FY23 (FY22: 15.05%) due to an
increase in subcontracting and direct expenses. The ROCE was 17% in
FY23 (FY22: 13.1%). In FY24, Ind-Ra expects the EBITDA margin to
improve as the focus has shifted to states other than Himachal
Pradesh, such as Madhya Pradesh and Uttar Pradesh, and company
might be able to achieve faster order execution in these regions.
The ratings also reflect GSEPPL's comfortable credit metrics, as
reflected by interest coverage (operating EBITDA/gross interest
expenses) of 7.93x in FY23 (FY22: 6.62x) and net leverage (total
adjusted net debt/operating EBITDAR) of 2.22x (2.14x). The
unsecured loans of INR213.37 million infused by the promoters in
GSEPPL are non-interest bearing. In FY23, the interest coverage
improved due to an increase in EBITDA to INR154.14 million (FY22:
INR147.98 million). The net leverage weakened slightly due to an
increase in the total debt to INR366.93 million (FY22: INR195.38
million). Ind-Ra expects the credit metrics to improve in FY24 and
over the medium term due to the absence of any debt-led capex plans
and scheduled debt repayments.
Liquidity Indicator - Adequate: The net working capital cycle
elongated to 166 days in FY23 (FY22: 67 days) due to an increase in
inventory days to 156 days (31 days) and a rise in creditor days to
139 days (96 days). The cash flow from operations remained negative
at INR108.21 million in FY23 (FY22: negative INR116.81 million) due
to unfavorable changes in working capital. The free cash flow
remained negative at INR233.63 million in FY23 (FY22: INR175.97
million) owing to capex of INR125.42 million incurred during the
year. GSEPPL's average maximum utilization of the fund-based limits
was 44.70% and that of the non-fund-based limits was 77.64% during
the 12 months ended September 2023. The utilizations are likely to
have remained at similar levels in the subsequent period. The cash
and cash equivalents stood at INR37.72 million at FYE23 (FYE22:
INR0.83 million), against scheduled debt obligations of INR120
million and INR8 million in FY24 and FY25, respectively. GSEPPL
does not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements.
The ratings are also supported by the promoters' experience of
nearly two decades in the construction industry, which has helped
the company establish strong relationships with customers as well
as suppliers.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to a
deterioration in the overall credit metrics, with the interest
coverage falling below 2.5x, and/or further pressure on the
liquidity position, both on a sustained basis, could lead to a
negative rating action.
Positive: A substantial increase in the scale of operations, along
with an improvement in the overall credit metrics, liquidity
profile and working capital cycle, all on a sustained basis, could
lead to a positive rating action.
Company Profile
Established in 2004, GSEPPL is engaged in civil construction
related to roads and city development. The promoters are Ashok
Garg, Rahul Garg and Nitin Garg and their registered office is in
Chandigarh.
GEMUS ENGINEERING: Ind-Ra Keeps BB- Rating in NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Gemus
Engineering 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:
-- INR135 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING) rating;
-- INR40 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR18.09 mil. Term loan due on September 30, 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 1996, Gemus Engineering manufactures cast iron
components of various grades and shapes at its 7,000-metric
ton-per-annum facility in Birshibpur in the Uluberia industrial
region of West Bengal. The company is promoted by Rajeev Sharma.
GOVARDANAGIRI AGRO: Ind-Ra Keeps D Rating in NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Govardanagiri
Agro Industries Private Limited's instrument(s) rating in the
non-cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency through emails and phone calls. Therefore, investors
and other users are advised to take appropriate caution while using
the rating. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR100 mil. Fund Based Working Capital Limit maintained in
non-cooperating category with IND D (ISSUER NOT COOPERATING)
/ IND D (ISSUER NOT COOPERATING) rating; and
-- INR123.6 mil. Term loan maintained in non-cooperating category
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Govardanagiri Agro Industries was established in February 2015 to
set-up a cotton oil extraction unit in Telangana. The site engaged
in cottonseed delinting, dehulling and oil extraction processes to
provide oiled cake, hulls, oil and lint. The promoters of the
company are D Raghavaiah and Ronda Suresh.
GREEN PETRO: Ind-Ra Keeps BB- Rating in NonCooperating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Green Petro
Fuels LLP'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:
-- INR68 mil. Fund Based Working Capital Limit maintained in non-
cooperating category with IND BB-/Stable (ISSUER NOT
COOPERATING) rating;
-- INR20 mil. Non-Fund Based Working Capital Limit maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR2.17 mil. Term loan due on March 31, 2021 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 May 2014, Green Petro Fuels manufactures light
diesel oils for industrial use. Ankit Agrawal and Thirubala
Chemicals Pvt Ltd are the partners of the firm, which has a
production capacity of 40,000 metric tons.
HOTEL TULI: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Hotel Tuli
International (HTI) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.07 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating)
Overdraft Facility 5 CRISIL A4 (Issuer Not
Cooperating)
Proposed Fund- 2.93 CRISIL B/Stable (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with HTI for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of HTI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HTI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
HTI continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'.
Set up in 1993, Nagpur-based HTI is a partnership between Mr/Ms
Gurlal Singh Tuli and his/her family. It runs a three-star hotel
(Hotel Tuli International) in Nagpur, and a luxury villa under Tuli
Tiger Corridor in Pench (Madhya Pradesh). Operations are managed by
Mr Gurlal Singh Tuli.
INDRAYANI SALES: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Indrayani
Sales Private Limited (ISPL) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 6.3 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.2 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ISPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ISPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ISPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ISPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 2005 as a private limited company by Mr. Rahul Zine
Patil, ISPL manufactures printer cartridges, and supplies printer
spares. The company sells its products under the Print it brand.
Its manufacturing facility is in Patalganga (Maharashtra) and its
registered office is in Mumbai.
JDN NUTRITION: Ind-Ra Moves BB Rating to Non-Cooperating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
JDN NUTRITION PRIVATE LIMITED to the non-cooperating category as
per Ind Ra's policy on Issuer Non-Cooperation, following
non-submission of No Default Statement continuously for 3 months
despite continuous requests and follow-ups by the agency and also
IND-Ra's inability to validate timely debt servicing through other
sources it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR110 mil. Term loan due on August 31, 2028 migrated to non-
cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING) rating; and
-- INR150 mil. Fund/Non-Fund Based Working Capital Limit migrated
to non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Incorporated in November 2019, JDNNPL Bengaluru-based manufacturer
of pelletized cattle feed. It has an installed capacity of 400
tons/day.
KILAVIKULAM RAJALAKSHMI: Ind-Ra Assigns BB- Bank Loan Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kilavikulam
Rajalakshmi Solar Power Developer Private Limited's (KRSPDPL) bank
facilities a rating of 'IND BB-'. The Outlook is Stable.
The detailed rating actions are:
-- INR138 mil. Term loan due on June 30, 2035 assigned with IND
BB-/Stable rating; and
-- INR487.5 mil. Proposed term loan assigned with IND BB-/Stable
rating.
Analytical approach: Ind-Ra has taken a standalone view of the
company. The ratings derive comfort from the support available to
KRSPDPL from its group companies, Velan Infra Projects Private
Limited (VIPPL; debt rated at IND BB/Stable/IND A4+), Jayavelu
Spinning Mills Private Limited (JSMPL, debt rated at IND
BB+/Stable/IND A4+) and Sri Parameshwari Spinning Mills Private
Limited (SPSMPL)owing to the moderate operational as well as
strategic linkages among the entities.
Key Rating Drivers
The ratings reflect KRSPDPL's nascent stages of operations as
indicated by a revenue of INR1.89 million in FY23 (FY22: nil).
KRSPDPL started its commercial operations in March 2023. Till
9MFY23, KRSPDPL booked a revenue of INR19.99 million. The total
cost of the solar plant of 3.25MW completed in FY23 was INR186
million, out of which INR138 million was funded through bank debt
and the remaining through promoters' contribution in the form of
equity infusion of INR48 million. In FY24, Ind-Ra expects the
revenue to improve on account of fixed contracts signed to provide
power.
In FY24, KRSPDPL will incur a capex of INR650 million for the
completion of its new 10MW solar plant. This will be funded through
a bank debt of INR487.5 million, INR128.9 million of unsecured
loans and promoter contribution in the form of equity of INR33.6
million. The project is likely to start by January 2024 with a
six-month timeline. The land acquisition is completed and
government approvals have been obtained. Ind-Ra believes this capex
will boost the company's revenue over the medium-to-long term.
The ratings also reflect in KRSPDPL's modest EBITDA margin of
11.64% in FY23 with a return on capital employed of 0.2%. In FY24,
Ind-Ra expects the EBITDA margin to stabilize due to a better
absorption of cost, aided by minimal expenses required for the
maintenance of the solar plant.
Liquidity Indicator - Stretched: The cash and cash equivalents
stood at INR0.65 million at FYE23. Furthermore, KRSPDPL does not
have any capital market exposure and relies on banks, financial
institutions and promoters to meet its funding requirements. It has
scheduled debt repayment obligations of INR5.4 million in FY24 and
INR8.4 million in FY25.
However, the ratings are supported by the presence of KRSPDPL's
group companies VIPPL, SPSMPL and JSMPL. VIPPL will provide free
annual maintenance for the first two years of operations and set up
the infrastructure for the new 10MW solar plant, thus boosting the
company's margins over FY24-FY26. SPSMPL and JSMPL have infused
equity in KRSPDPL and have signed fixed contracts to purchase
power; they are together likely to contribute 42% to the revenue
from FY24. The ratings are supported by the promoters' nearly two
decades of experience in renewable energy sector. This has
facilitated the company to establish strong relationships with
customers as well as suppliers.
Rating Sensitivities
Positive: An increase in the scale of operations and the successful
completion of capex while improving the liquidity position and
credit metrics, along with an improvement in the credit profiles of
major counterparties, all on a sustained basis, will be positive
for the ratings.
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics and/or a further
pressure on the liquidity position, all on a sustained basis, will
be negative for the ratings.
Company Profile
Incorporated in 2022, KRSPDPL is engaged in the production and
distribution of solar power. The company's promoters are G.
Shanmugavel and Rajalakshmi and its registered office is in
Chennai. Velan Infra Projects is the parent company who are engaged
in the installing, erecting, testing and commissioning of all types
of solar power plants.
LEISURE CORP: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Leisure Corp
Private Limited (LCPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.3 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Fund- 1.7 CRISIL B+/Stable (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with LCPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of LCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LCPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
LCPL was incorporated by Mr. Naveen Kundu in 1997. The company
offers corporate travel management and event management services,
and entered the retail travel space in fiscal 2013. It has six
branch offices, in Gurgaon and Mumbai.
MAHALASA EXPORTS: Ind-Ra Moves BB+ Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Mahalasa Exports to the non-cooperating category as per Ind Ra's
policy on Issuer Non-Cooperation, following non-submission of No
Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time. Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND BB+/Stable (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR400 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB+/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR6 mil. Derivative limits 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
Company Profile
Established in 1993 as a partnership firm, Karnataka-based ME is
involved in the processing and packaging of cashew kernels for the
domestic and export markets. The company exports primarily to the
Middle East, the UK and the US.
MANAKAMNA FLOUR: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Manakamna
Flour Mills Private Limited (MFMPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 7 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MFMPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MFMPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MFMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MFMPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
MFMPL was set up by Mr Manoj Kumar Agarwal in West Bengal in 2001.
It commenced commercial operations in 2003. The company has
capacity to produce 200 tonne per day of wheat-based products such
as atta, maida, suji, and bran. It also trades in wheat and other
agricultural products.
MATHURA AGRO: CRISIL Keeps B- Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Mathura Agro
Industries (MAI) continue to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL B-/Stable (Issuer Not
Cooperating)
Long Term Loan 7 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term 5 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MAI for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MAI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MAI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MAI continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
MAI was incorporated by Mr Venugopal Karwa and his wife, Mrs N V
Karwa in 2008. The firm processes products such as toor dal and
chana dal, and has its processing facility at Solapur, with
capacity of 125 and 150 tonnes per day for toor dal and chana dal,
respectively.
MODERN OVERSEAS: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Modern
Overseas Private Limited (MOPL) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MOPL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MOPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MOPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MOPL continues to be 'CRISIL D Issuer Not Cooperating'.
MOPL trades in buffaloes, and is promoted by the Qureshi family,
which has over three decades' experience in the industry.
Operations are managed by Mr Naeem Qureshi and Mr Saleem Qureshi.
NIRMAL TRADERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Nirmal Traders
in the 'Issuer Not Cooperating' category. The ratings are denoted
as [ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.85 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 3.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 1.65 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with Nirmal Traders, 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 2004, Nirmal Traders is a partnership concern
engaged in trading of agricultural produces which mainly
includesoya bean, wheat, pigeon peas (toor dal), and Chickpeas
(chana dal). The firm is actively managed by two partners' viz. Mr.
Rahul Rampuriya and Mr. Vishal Sancheti. The firm also acts as a
liaising agent for Adani Wilmar Limited, Ruchi Soya Industries
Limited and ITC Limited's Agri Business Division. The firm has its
registered office in Nagpur.
NOOR ICE: ICRA Keeps B+ Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the long-term and short-term rating of Noor Ice &
Cold Storage Private Limited in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B+(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING"
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.70 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- (0.50) [ICRA]B+ (Stable) ISSUER NOT
Interchangeable COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Short Term- 28.50 [ICRA]A4 ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term/ 0.30 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain
under issuer not cooperating
category
As part of its process and in accordance with its rating agreement
with NICSPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Incorporated in February 1998, NICSPL is engaged in processing and
exporting seafood such as lobster, shrimp, pomfret, ribbon fish and
croaker fish. The company's processing units are located at Taloja
in the Raigad district of Maharashtra, with an installed processing
capacity of 88 Metric Tonnes Per Day. The company is predominantly
an export-oriented player with more than 95% of its revenues
generated by overseas markets.
OSCORP INDUSTRIES: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Oscorp Industries Private Limited
Balitikuri, Surkimill, Howrah,
West Bengal, India-711113
Insolvency Commencement Date: January 4, 2024
Estimated date of closure of
insolvency resolution process: July 2, 2024
Court: National Company Law Tribunal, Kolkata Bench
Insolvency
Professional: Aditya Kumar Tibrewal
2, Hare Street, 1st Floor, Nicco House,
Room No. 29, Kolkata, West Bengal - 700001
Email: adityatibre@gmail.com
Email: oipl.cirp@gmail.com
Last date for
submission of claims: January 18, 2024
RAJIV PETROCHEMICAL: Ind-Ra Affirms BB+ Bank Loan Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rajiv
Petrochemicals Private Limited's (RPPL) bank facilities' ratings as
follows:
-- INR390 mil. Fund-based working capital limits affirmed with
IND BB+/Stable rating;
-- INR34.72 mil. Term loans due on March 31, 2028 affirmed with
IND BB+/Stable rating; and
-- INR300 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating.
Analytical Approach: Ind-Ra continues to take a standalone view to
arrive at RPPL's ratings.
Key Rating Drivers
The affirmation reflects RPPL's continued modest EBITDA margins due
to the trading nature of the business. Furthermore, RPPL is engaged
in the trading of poly vinyl chloride resins, low-density
polyethylene and high-density polyethylene polymers and polyester
films, the prices of which are linked to the price of crude oil;
this exposes the company to price volatility risk. The EBITDA
margin declined to 2.80% in FY23 (FY22: 4.18%), due to an increase
in personnel expenses to 3.42% of its revenue (1.99%). The
personnel expenses rose because of the growth in the workforce in
Mumbai, Daman and Silvasa; however, revenue could not be generated
from these branches as the operations started in October 2023. The
ROCE was 7.3% in FY23 (FY22: 11.7%). Ind-Ra expects the EBITDA
margin to improve slightly in FY24, backed by the commencement of
operations in Mumbai, Daman and Silvasa.
The ratings factor in RPPL's modest credit metrics due to the
modest margins. The gross interest coverage (operating EBITDA/gross
interest expense) deteriorated to 1.77x in FY23 (FY22: 2.38x), as
the EBITDA declined to INR35.93 million (FY22: INR69.74 million).
The net leverage (adjusted net debt/operating EBITDA) weakened to
4.92x in FY23 (FY21: 2.29x), due to a decline in cash accruals to
INR4.16 million (INR99.82 million). Ind-Ra expects the credit
metrics to improve slightly in FY24 due to the likely rise in the
EBITDA.
The ratings reflect RPPL's medium scale of operations, as indicated
by revenue of INR1284.35 million in FY23 (FY22: INR1,666.83
million). The revenue fell in FY23 to due to a decline in demand
in the domestic market. The company achieved a revenue of INR1,000
million in 8MFY24. Ind-Ra expects the revenue to improve on a yoy
basis in FY24, led by the commencement of operations in Mumbai,
Daman and Silvasa.
Liquidity Indicator – Stretched: In FY23, the net working capital
cycle improved to negative 24 days in FY23 on account of an
increase in the creditor days to 52 days (FY22: nine days) and an
increase in debtor days to 18 days (8 days). RPPL's average maximum
utilization of the fund-based and the non-fund-based limits was
16.23% and 57.56%, respectively, during the 12 months ended
November 2023. The cash flow from operations remained negative and
deteriorated to INR83.66 million in FY23 (FY22: negative INR43.15
million), due to unfavorable changes in working capital.
Consequently, the free cash flow deteriorated to negative INR84.13
million in FY23 (FY22: negative INR50.02 million). The cash and
cash equivalents stood at INR4.16 million at FYE23 (FYE22: INR99.82
million), against repayment obligations of INR10 million and INR8.8
million for FY24 and FY25, respectively. The company does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
The ratings, however, are supported by the promoter's decade-long
experience in the petrochemical trading business.
Rating Sensitivities
Negative: A decline in the scale of operations, along with a
deterioration in the credit metrics and the liquidity position
could be negative for the ratings.
Positive: A significant increase in the scale of operations along
with an improvement in the credit metrics, with the interest
coverage exceeding 2.5x, on a sustained basis, could be positive
for the ratings.
Company Profile
Incorporated in October 1993 by Rajiv Vastupal Mehta, RPPL is a
part of the Gujarat-based Rajiv group. It is engaged in the trading
of poly vinyl chloride resins, low-density polyethylene and
high-density polyethylene polymers and polyester films. The
registered office is in Ahmedabad. In addition to trading activity,
it also acts as the consignment agent for plastic granules for
companies such as HPCL-Mittal Energy Limited (debt rated at 'IND
AA+'/Stable).
RICHA INDIA: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: Richa India Infra Development Private Limited
101, Kshitij, Shiv Sena Bhavan Path Dadar West,
Mumbai City, Mumbai, Maharashtra, India, 400028
Insolvency Commencement Date: December 6, 2023
Estimated date of closure of
insolvency resolution process: June 19, 2024
Court: National Company Law Tribunal, Mumbai Bench
Insolvency
Professional: Mr. Sandeep D. Maheshwari
1, Shree Ram Laxmi Niwas CHS,
Near Anthony Bakery,
Kolbad, Thane, Maharashtra 400601
Email: ayunish@yahoo.com
Email: richaindia.cirp@gmail.com
Representative
of Creditors in a Class:
1.Mr. Dinesh Deora
2.Mr. Manish Dawda
3. Mr. Snehal Kamdar
Last date for
submission of claims: January 5, 2024
ROHIT EXTRACTIONS: Ind-Ra Corrects August 2, 2023 Rating Release
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) corrects Rohit Extractions Pvt
Ltd.'s (REPL) rating published on August 2, 2023 to provide the
disclosure of non-co-operation status by other credit rating
agencies.
The amended version is as follows:
India Ratings and Research (Ind-Ra) has affirmed Rohit Extractions
Pvt Ltd.'s (REPL) Long-Term Issuer Rating at 'IND BB'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR410 mil. Fund based working capital limit affirmed with
IND BB/Stable/INDA4+ rating; and
-- INR77.7 mil. Term loan due on March 2026 affirmed with IND BB/
Stable rating.
Analytical Approach: Ind-Ra has changed the rating approach to
taking a standalone view from a consolidated view as REPL and its
group company RNK Agro and Chemicals Private Limited are no longer
providing corporate guarantees for each other's debt; and hence,
the linkages between the two no longer remain strong.
Key Rating Drivers
The affirmation reflects REPL's continued modest credit metrics. As
per FY23 provisional financials, the gross interest coverage
(operating EBITDA/gross interest expense) deteriorated to 1.85x in
FY23 (FY22: 1.93x, FY21: 1.78x) and the net leverage (total
adjusted net debt/operating EBITDAR) to 6.52x (5.86x, 6.8x) on
account of increased utilization of the fund-based limits. However,
Ind-Ra expects the overall credit metrics to improve in the medium
term due to the scheduled repayment of term loans and the absence
of any debt-funded capex plans.
Liquidity Indicator - Stretched: The average maximum utilization of
the fund-based limits was 99.1% over the 12 months ended June 2023.
The cash flow from operations declined further to negative
INR140.04 million in FY23 (FY22: negative INR14.94 million, FY21:
negative INR22.53 million) due to unfavorable changes in the
working capital because of higher inventory. Consequently, the free
cash flow declined to negative INR145.9 million in FY23 (FY22:
negative INR15.33 million, FY21: negative INR44.73 million). The
net working capital cycle elongated to 172 days in FY23 (FY22: 148
days, FY21: 211 days) due to an increase in the inventory holding
period to 104 days (76 days, 95 days). Given the nature of business
and seasonal availability of rice bran, REPL maintains an inventory
of two-to-three months. The cash and cash equivalents stood low at
INR0.82 million at FYE23 (FYE22: INR0.69 million, FYE21: INR4.0
million). REPL has scheduled repayments of INR46.9 million and
INR30.3 million in FY24 and FY25, respectively. Moreover, REPL does
not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements.
The ratings further reflect REPL's continued modest EBITDA margins
of 5.4% in FY23 (FY22: 5.45%, FY21: 6.9%) with a return on capital
employed of 10.2% (10%, 8.8%). The EBITDA margins are vulnerable to
volatility in prices and availability of rice bran, which remains
influenced by the monsoon and crop cycles. The cost of rice bran
alone accounts for 75%-80% of the total cost. Ind-Ra expects the
EBITDA margins to remain susceptible to input cost fluctuations in
the medium term.
The ratings also continue to factor in REPL's medium scale of
operations, as indicated by revenue of INR2,229.13 million in FY23
(FY22: INR1,997.51 million, FY21: INR1,360.38 million). The revenue
growth in FY23 was driven by an increase in the sales volume on the
back of increased demand for rice bran oil as well as improved
realization. In 1QFY24, REPL booked revenue of about INR500
million. It operates two manufacturing units with a total capacity
of 96,000 metric tons per annum. Unit 1 is for the extraction of
crude rice bran oil and de-oiled cake (a by-product of rice bran
oil) and Unit 2 is for manufacturing of aquatic feed and poultry
feed supplements. The capacity utilization of Unit 1 and Unit 2
stood at around 70% and 50%, respectively, in FY23. Unit 1
contributed 85.78% to the revenue in FY23 (FY22: 82.34%, FY21:
73.72%), while Unit 2 contributed the remainder. Ind-Ra expects the
revenue to remain increase over the medium term on account of a
likely higher demand for rice bran oil.
The ratings, however, are supported by the promoters' experience of
three decades in the extraction of rice bran oil and manufacturing
of poultry and aquatic feed, leading to established relationships
with its brokers, customers and suppliers.
Rating Sensitivities
Negative: Any decline in the scale of operations, leading to
deterioration in the credit metrics, along with a weakening of the
liquidity position, all on a sustained basis, will be negative for
the ratings.
Positive: A substantial increase in the scale of operations,
leading to an improvement in the overall credit metrics, with the
interest coverage increasing above 2.0x and an improvement in the
working capital cycle, leading to an improvement in the liquidity,
all on a sustained basis, will be positive for the ratings.
Company Profile
Incorporated in 1991, Hyderabad-based REPL manufactures rice bran
crude oil, poultry and aquatic feed at its manufacturing unit
located in Hyderabad.
RRR CONSTRUCTIONS: Ind-Ra Affirms BB Rating, Outlook Positive
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on RRR Constructions & Projects Private Limited's (RRR)
bank facilities:
-- INR60 mil. Fund-based working capital limit affirmed with IND
BB/Positive/IND A4+ rating;
-- INR60 mil. Proposed fund-based working capital limit affirmed
with IND BB/Positive/IND A4+ rating;
-- INR140 mil. Non-fund-based working capital limits affirmed
with IND A4+ rating;
-- INR140 mil. Proposed non-fund-based working capital limit
affirmed IND A4+ rating;
-- INR30 mil. Fund-based working capital limit assigned with IND
BB/Positive/IND A4+ rating; and
-- INR70 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
ANALYTICAL APPROACH: Ind-Ra continues to take a standalone view of
the company to arrive at the rating.
The Positive Outlook reflects Ind-Ra's expectation an improvement
in RRR's liquidity with the sanction of proposed limits in FY25 and
an improvement in its revenue visibility for the near- to
medium-term, led by strong order book.
Key Rating Drivers
The affirmation reflects RRR's continued small scale of operations,
with its revenue increasing to INR400.80 million in FY23 (FY22:
INR279.44 million), led by timely execution of its existing orders.
As of March 31, 2022, RRR had an order book of INR3,134 million
(7.80x of FY23 revenue) to be executed until October 31, 2025. Out
of the total order book, the management expects to complete orders
worth INR618 million by FYE24. Until November 2023, the company
booked revenue of INR423 million. In the near- to medium term,
Ind-Ra expects the revenue to remain in line with its 8MFY24
numbers.
Liquidity Indicator - Stretched: RRR does not have any capital
market exposure and relies on a single bank to meet its funding
requirements. Its cash and cash equivalents remained low at
INR60.16 million at FYE23 (FYE22: INR35.16 million), which included
INR40 million of deposits maintained with the lender as a bank
guarantee. The company has debt repayment obligations of INR12.20
million and INR16.20 million for FY24 and FY25, respectively. The
working capital cycle increased to 44 days in FY23 (FY22: negative
40 days), due to a reduction its payable days to 96 (185). The
company plans for a capex of INR15 million for FY24, which will be
met through a term loan of INR10 million and the balance from its
internal accruals. The average monthly peak utilization of its
fund-based working capital limits (overdraft limits) was 41.74% and
that of the non-fund-based working capital limits (bank guarantee)
was 45.76% for the 12 months ended November 2023. The cash flow
from operations improved to INR16.65 million in FY23 (FY22:
negative INR48.40 million), owing to healthy profitability and
favorable changes in its working capital.
RRR has moderate credit metrics, with the gross coverage (operating
EBITDA/gross interest expense) marginally deteriorating to 4.37x in
FY23 (FY22: 4.61x), due to an increase in its interest expenses to
INR10.40 million (INR7.23 million), while the net leverage (total
adjusted net debt/operating EBITDAR) reduced to 2.59x (2.83x), due
to an increase in EBITDA to INR45.47 million (INR33.32 million). In
FY24, Ind-Ra expects the credit metrics to remain at the similar
levels.
RRR's EBITDA margins remained healthy at 11.34% in FY23 (FY22:
11.92%), due to a decrease in its costs of goods sold. The return
on capital employed improved to 19.6% in FY23 (FY22: 19.4%).
However, its margins marginally deteriorated to 8.16% in 1HFY24,
due to a marginal increase in the costs of raw materials such as
steel, cement, aggregates and sand. In FY24, Ind-Ra expects the
margins to remain at the similar levels witnessed in 1HFY24, due to
no major change in its cost structure.
The ratings are supported by its promoter's seven years of
experience in the civil construction sector.
Rating Sensitivities
Positive: A substantial increase in the revenue, along with an
improvement in the EBITDA margins, while maintaining the gross
interest coverage above 2x and an improvement in the liquidity
position, on a sustained basis, could be positive for the ratings.
Negative: The inability to improve its scale of operations, leading
to a deterioration in the credit metrics or a further stretch in
the liquidity position, on a sustained basis, could lead to the
Outlook being revised to Stable.
Company Profile
Set up in 2015, RRR has its registered office in Hyderabad. The
company engages in roads, pipes, buildings, flyover projects,
structure projects, national highways, irrigation and canals,
over-bridges and related maintenance works in in Telangana, Andhra
Pradesh and Karnataka.
S S SUPER: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the Long-Term rating for the Bank Facilities of S S
Super Foods Private Limited in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable) ; ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 129.00 [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 S S Super Foods Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
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.
S S Super Foods Private Limited (SSSFPL) was incorporated in
February 2020 as a special purpose vehicle by three promotor
families. The company is in process of setting up a cattle feed
manufacturing facility through PPP mode in Chikkaballapur,
Karnataka. It has a lease agreement for land and supply agreement
for 15 years with Karnataka Co-Operative Milk Producer's Federation
Limited (KMF) rated [ICRA]A+(Stable)/A1+ to supply cattle feed. The
company plans to set up a 500 MTPD capacity plant with a project
cost of ~Rs. 87.16 crore which is likely to commence its operations
from September 2022.
S.K. AGROS: ICRA Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-Term for the Bank facilities of S.K. Agros
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable);ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 9.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with S.K. Agros, 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.
S.K. Agros is a partnership firm, engaged in the business of
milling, processing, and selling of basmati rice, and has a fully
automated plant at Fazilka (Punjab) which has a milling capacity of
4 tons per hour. The by - products of basmati rice viz husk, rice
bran and 'phak' are sold in the domestic market.
SANGANI INFRASTRUCTURE: Ind-Ra Cuts Debt Rating to D
----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sangani
Infrastructure India Pvt. Ltd debt facilities to 'IND D (ISSUER NOT
COOPERATING)' from 'IND BB (ISSUER NOT COOPERATING)'.
The detailed rating actions are:
-- INR100 mil. Fund-based working capital limit (Long-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR250 mil. Non-fund-based working capital limit (Short-term)
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR203.8 mil. Long-term loan (Long-term) due on April 2020
downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
ANALYTICAL APPROACH: Ind-Ra has taken a standalone rating approach
for Sangani Infrastructure India.
The downgrade of the bank facility ratings reflects Sangani
Infrastructure India's delays in debt servicing.
Key Rating Drivers
The downgrade of the bank facility ratings reflects the company's
delays in debt servicing, based on the information available from
public sources. Ind-Ra has not been able to ascertain the reason
for the delays, as the issuer has been non-cooperative.
Rating Sensitivities
Positive: Timely debt servicing for at least three consecutive
months will be positive for the ratings.
Company Profile
Sangani Infrastructure India was incorporated in 2007 in Ahmedabad
to undertake the development of residential and commercial projects
in and around Gujarat.
SANJAR PHARMA: CRISIL Keeps B- Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sanjar Pharma
LLP (SPLL) continue to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B-/Stable (Issuer Not
Cooperating)
Long Term Loan 9 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SPLL for
obtaining information through letter and email dated December 12,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SPLL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SPLL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SPLL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
SPLL was set up by the promoter, Mr Modasiya Mo. Moin Khalil Ahmed
and his family members in 2015. The firm started its operations in
August 2016. The firm manufactures low-value pharmaceutical
products at its facility in Himatnagar, Gujarat.
SARA SUOLE: Ind-Ra Moves C Rating to Non-Cooperating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Sara Suole Private Limited to the non-cooperating category as per
IndRa's policy on Issuer Non-Cooperation, following non-submission
of No Default Statement continuously for 3 months despite
continuous requests and follow-ups by the agency and also IND-Ra's
inability to validate timely debt servicing through other sources
it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time., Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND C (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR1.180 bil. Fund Based Working Capital Limit migrated to
non-cooperating category with IND C (ISSUER NOT COOPERATING)/
IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR249.2 mil. Term loan due on March 31, 2023 migrated to non-
cooperating category with IND C (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
Company Profile
Sara was incorporated on April 26, 2001 as a private limited
company to manufacture leather footwear soles, uppers and shoes.
The company has an annual manufacturing capacity of more than 3
million pairs of shoes and 3.6 million pair of soles. It exports to
over 20 countries worldwide.
SD INFRA: Ind-Ra Moves B- Rating to Non-Cooperating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
SD Infra to the non-cooperating category as per Ind Ra's policy on
Issuer Non-Cooperation, following non-submission of No Default
Statement continuously for 3 months despite continuous requests and
follow-ups by the agency and also IND-Ra's inability to validate
timely debt servicing through other sources it considers reliable.
No Default Statement in the format prescribed by SEBI is required
to be shared by the issuer every month as a confirmation that all
financial obligations are being serviced on time., Investors and
other users are advised to take appropriate caution while using
these ratings. The rating will now appear as 'IND B-/Stable (ISSUER
NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- 300 Fund Based Working Capital Limit migrated to non-
cooperating category with IND B-/Stable (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR38.50 mil. Term loan due on November 30, 2026 migrated to
non-cooperating category with IND B-/Stable (ISSUER NOT
COOPERATING) rating; and
-- INR600 mil. Non-Fund Based Working Capital Limit 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
Company Profile
Established in 2016, SDI is a partnership firm promoted by S.
Devendiran and three other partners - his brother, AS. Nethaji, and
two sons, Balaji Devendiran and Manjunath Devendiran. It is
involved in the execution of road laying works, upgradation and
maintenance of roads as per tenders issued by the National Highways
Authority of India and state highways departments in the states of
Tamil Nadu, Karnataka and Andhra Pradesh.
SHAH STEEL: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Shah Steel Impex Private Limited
101, Joshi Chamber, Ahmedabad Street,
Carnac Bunder, Masjid (East),
Mumbai - 400009 Maharashtra
Insolvency Commencement Date: January 3, 2024
Estimated date of closure of
insolvency resolution process: July 6, 2024
Court: National Company Law Tribunal, Mumbai Bench-V
Insolvency
Professional: Mr. Jitender Kothari
702, Orchid A Wing, Evershine Park CHS,
Off Veera Desai Road, Andheri (West), Mumbai-400053
Email: jitenderkothari@rediffmail.com
Email: cirp.shahsteel@gmail.com
Last date for
submission of claims: January 22, 2024
SHIVANGAN FOOD: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term rating for the Bank facilities of
Shivangan Food and Pharma Products Private Limited in the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]B
(Stable);ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 10.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Shivangan Food and Pharma Products 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.
Shivangan Food And Pharma Products Private Limited (SFPPPL/the
company) was incorporated in 2015 and has ventured into production
of food grade and pharma grade starch from maize. The location of
the plant is adjacent to one of the largest starch manufacturers of
India, Universal Starch and Allied Chemicals Limited (USACL), at
Dondiacha in Dhule, Maharashtra. As per the agreement with USACL,
their idle capacity will be used by SFPPL for converting maize into
slurry. USACL manufactures multiple starch grades by crushing
maize. The company has set up a 130 TPD maize starch plant for
manufacture of food and pharma grade starch, maize germ, maize
gluten, and fibre. The commercial operations of the plant have
started from October 2017. Once fully operational, the plant is
expected be the only fully automated unit in India manufacturing
starch in a clean room Environment.
SHM SHIPCARE: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term and Short–term ratings for the Bank
facilities of Shm Shipcare in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 29.68 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.10 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 56.22 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Shm Shipcare, 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 2001, SHM Shipcare is a partnership firm engaged in
the ship chandlery business. The firm derives its revenues from the
supply and servicing of marine safety equipment (life-saving
appliances, firefighting equipment, communication, and navigation
equipment) and manufacture of boats for several government agencies
and private players. SHMS operates 11 servicing centers across
India, which are approved by the Directorate General of Shipping,
India.
SHRI FAKIRCHAND: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Shri Fakirchand Enterprises Private Limited
407, Panchratna, Opera House, Mumbai-400004
Insolvency Commencement Date: January 5, 2024
Estimated date of closure of
insolvency resolution process: July 3, 2024
Court: National Company Law Tribunal, Mumbai Bench-I
Insolvency
Professional: Shailesh Desai
708, Rajeha Centre, Nariman Point,
Mumbai - 400021, Maharashtra
Email: ip10362.desai@gmail.com
Email: cirpsfepl@gmail.com
Last date for
submission of claims: January 19, 2024
SPICEJET LTD: NCLT Rejects Wilmington's Insolvency Plea
-------------------------------------------------------
The Hindu reports that in a relief to low-cost carrier SpiceJet,
the National Company Law Tribunal (NCLT) on January 29 dismissed an
insolvency petition filed against the company by aircraft lessor
Wilmington Trust SP Services.
According to The Hindu, a Delhi-based bench of NCLT comprising
members Mahendra Khandelwal and Rahul Prasad Bhatnagar dismissed
the petition of the aircraft lessor based in Dublin, Ireland.
Wilmington moved the insolvency plea against SpiceJet in June 2023
over unpaid dues.
Last month, NCLT had dismissed an insolvency petition by another
aircraft lessor, Willis Lease Finance Corporation, which was also
claiming dues, recalls The Hindu.
SpiceJet faced insolvency pleas filed by its aircraft lessors,
including Willis Lease, Aircastle Ireland Ltd, Wilmington, and
Celestial Aviation.
However, NCLT has issued notice only on the petition filed by
Aircastle so far.
Earlier, the Delhi High Court directed SpiceJet to pay $4 million
to its two engine lessors, Team France 01 SAS and Sunbird France 02
SAS, by February 15, The Hindu adds.
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
As recently reported in the Troubled Company Reporter-Asia Pacific,
aircraft lessor Wilmington Trust SP Services (Dublin) Ltd has filed
a petition for initiating the corporate insolvency resolution
process against SpiceJet.
This is the third case filed against the airline, according to The
Economic Times. Two other cases under Section 9 of the Insolvency
and Bankruptcy Code, 2016, have been filed by aircraft lessor
Aircastle (Ireland) Ltd and engine lessor Willis Lease Finance
Corporation.
Aircastle (Ireland) filed a CIRP petition against Spicejet on April
28, 2023, while Willis Lease Finance Corporation filed its petition
on April 12, 2023.
The National Company Law Tribunal (NCLT) on Dec. 4 dismissed Willis
Lease' insolvency petition.
In August 2023, aircraft lessor Celestial Aviation Services Ltd had
approached the tribunal to initiate insolvency proceedings against
the low-cost airline for a default of $29.9 million for nine
aircraft.
SSI GOLD: Ind-Ra Assigns BB Bank Loan Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated SSI Gold House
Private Limited's (SGHPL) bank facilities as follows:
-- INR400.00 mil. Fund-based limit assigned with IND BB/
Stable/IND A4+ rating.
Analytical approach: Ind-Ra has assessed the company on a
standalone basis.
Key Rating Drivers
The ratings reflect SGHPL's modest EBITDA margin of 1.81% in FY23
with a return on capital employed of 9.33% as the company started
operations only in May 2023. The absolute EBITDA was INR32.49
million in FY23. In FY24, Ind-Ra expects the EBITDA margin to
improve yoy due to a better absorption of fixed cost resulting from
the stabilizing of operations.
The ratings also reflect SGHPL's weak credit metrics as reflected
by the interest coverage (operating EBITDA/gross interest expenses)
of 2.83x in FY23 and the net leverage (adjusted net debt/operating
EBITDAR) of 20.78x. In FY24, Ind-Ra expects the credit metrics to
improve due to a higher absolute EBITDA.
Furthermore, the ratings are constrained due to the price
volatility of precious metals and high competition in the jewelry
business.
Liquidity Indicator - Stretched: SGHPL's average maximum
utilization of its fund-based limits was 70.11% during the 12
months ended November 2023. The cash flow from operations stood at
negative INR217.38 million in FY23. Furthermore, the free cash flow
stood at negative INR218.84 million and the cash and cash
equivalents stood at INR2.44 million in FY23. The net working
capital cycle stood at 139 days in FY23. The company does not have
any debt repayment except for the unsecured loans from the
promoters and relatives. Furthermore, SGHPL does not have any
capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
The ratings also factor in SGHPL's medium scale of operations as
indicated by a revenue of INR1,790.27 million in FY23. During
7MFY24, SGHPL booked a revenue of INR1,430.48 million. In FY24,
Ind-Ra expects the revenue to improve due to an increase in the
demand for gold post COVID-19 disruptions, along with an increase
in the price of gold and repeat orders from customers.
Rating Sensitivities
Negative: A substantial decrease in the scale of operations or
operating profitability, or deterioration in the overall credit or
the liquidity profile, on a sustained basis, could lead to a
negative rating action.
Positive: An improvement in the scale of operations, the
achievement of stable operating profitability and the interest
coverage remains above 2x, on a sustained basis, could lead to a
positive rating action.
Company Profile
Established in April 2022, SGHPL is a retail jewelry store in
Choolaimedu Chennai, which deals in gold ornaments, diamond,
platinum, silver, and other gift items. It is a franchisee of AVR
Swarna Mahal, which is one of the leading jewelry retailers in
Tamil Nadu.
STERLING AND WILSON: Ind-Ra Cuts Bank Loan Rating to C
------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded the ratings on
Sterling and Wilson Private Limited's (SWPL) bank facilities to
'IND C' from 'IND BB' while resolving the Rating Watch with
Negative Implications.
The detailed rating actions are:
-- INR2.080 bil. Fund-based limits downgraded; off Rating Watch
with Negative Implications with IND C/IND A4 rating;
-- INR1.570 bil. Proposed fund-based limits downgraded; off
Rating Watch with Negative Implications with IND C/IND A4
rating;
-- INR20.241 bil. Non-fund-based limits# downgraded; off Rating
Watch with Negative Implications with IND C/IND A4 rating;
and
-- INR5.110 bil. Proposed non-fund-based limits downgraded; off
Rating Watch with Negative Implications with IND C/IND A4
rating.
#Includes INR1,060 million limits with fund-based fungibility
ANALYTICAL APPROACH: Ind-Ra continues to take a consolidated view
of SWPL and its subsidiaries to arrive at the ratings, on account
of the strong operational and strategic linkages between them.
The downgrade and the resolution of the Rating Watch with Negative
Implications reflect the rescheduling of the upcoming debt
repayment obligations of INR7.4 billion to March 2024 from January
2024. This is in line with the Reserve Bank of India's Guidance
Note on Bank Loan Ratings dated May 19, 2023, which states that the
rescheduling of debt repayments by lenders prior to the due date of
payment to avoid default or bankruptcy will be treated as default.
The rolled-over debt is not rated by Ind-Ra, and the agency's
action on the rated facilities is in line with its Default
Recognition and Post-Default Curing Period Policy.
SWPL has been exploring several options to raise the necessary
funds, including monetization of assets / strategic investments and
infusion of funds from the promoter group. During the previous
review, the agency had been informed that these funding options
were likely to come through by December 2023 to enable the debt
servicing scheduled in January 2024. However, these plans are yet
to materialize, and the issuer has opted for debt rescheduling to
manage the repayment in the interim.
The management has also shared with Ind-Ra that the company has
access to other sources of funds such as encumbered shares in a
group company – Sterling and Wilson Renewable Energy Limited, and
the property pledged towards the abovementioned debt, and as per
them, this adequate security cover has facilitated the
rescheduling.
The management has stated that various funding options are in
discussion/ due diligence phases with various stakeholders; the
fructification of the same prior to the revised repayment timelines
shall be monitored by Ind-Ra.
Key Rating Drivers
Liquidity Indicator – Poor: On a consolidated basis, SWPL had
unencumbered cash and cash equivalents of INR0.1 billion at FYE23.
SWPL had raised INR7.5 billion of short-term debt in FY22 and the
current outstanding of INR7.4 billion is now repayable in March
2024. The management expects this to be repaid through a
combination of monetization events, and the deficit /timing
mismatch, if any, will be met through equity infusions by the
promoter group - Shapoorji Pallonji Company Private Limited (SPCPL,
ultimate beneficiary of about 66% shareholding) and Khurshed
Daruvala, who holds the balance shareholding. The fructification of
the monetization strategies, and equity infusion from the promoter
group on a timely basis in case of any deficit/timing mismatch
shall remain key monitorable. The average utilization of fund-based
working capital limits was 87% for the 12 months ended November
2023.
The promoter group has demonstrated the strategic importance of the
entity by continuously providing tangible support. The promoter
group infused net INR4.6 billion into SWPL in FY22. In FY23, about
INR2.6 billion was infused incrementally by Khurshed Daruvala. The
management has informed that there is no other long-term debt at
the consolidated level except the upcoming repayment in March 2024.
At the consolidated level, the working capital cycle remained
broadly stable with gross working capital (GWC)/revenue of 127% in
FY22 (FY21: 137%, FY20: 125%) and net working capital/revenue of
55% (49%, 60%). The receivables and unbilled revenue contribute to
a higher GWC due to the supply-intensive nature of works as well as
stuck receivables from the Skypower assets. The expected sale of
gas peaking power plant in UK group company (sub-contracted to
SWPL) and Skypower assets over FY24-FY25 could lead to some
moderation in the GWC. Further, the company's new order booking
strategy is focusing on better terms for advances/retention money,
among others, and thereby expected to contribute favorably towards
the working capital cycle.
Measures Adopted to Turnaround Operations: SWPL has undertaken
several measures to improve its gross margins and minimize
overheads to improve its overall profitability. The company is
curtailing its presence in small-scale mechanical, electrical and
plumbing (MEP) projects and transitioning towards higher margins
and/or higher ticket-size orders in data centers, MEP mega,
industrial firefighting, and transmission and distribution (T&D).
This has resulted in fewer projects, which can entail lower
overhead expenses. The unexecuted order book as on 31 March 2023
stood at INR36.0 billion (1.9x FY23 revenues), of which about 70%
was booked in FY22 and FY23 in line with the aforementioned
strategies and prevalent commodity pricing.
The management has informed Ind-Ra that the company has provided
for foreseeable losses on the legacy order book, which constitutes
the balance 30% and hence, it likely to generate margins of 7-9%.
Ind-Ra expects that this portion of the orderbook could generate
only minimal margins. The company has undertaken significant
manpower reduction and is winding down its regional offices to
operate in a more centralized manner to reduce the overhead costs.
Further, SWPL is reducing its physical presence in the offshore
markets including the Middle East and is taking up mainly those
projects in the offshore markets, which can be largely managed out
of India. Ind-Ra expects the turnaround to fructify gradually with
the closure of the legacy order book as well as scaling up of the
revenue that could lead to profitable operations.
SWPL is also taking several measures towards diversification into
more profitable sub-segments specially the growing data center
market, where it has established itself as a significant player and
hence, is able to garner profitable margins on account of its skill
sets. Further, it would continue to focus on MEP/heating,
ventilation and air conditioning segments in larger orders such as
metros as well as continue with T&D with strong counterparties in
the domestic and offshore markets. Further, the company has
tightened its order booking strategy with a focus on double-digit
gross margins as well as favorably negotiated payment terms, which
could gradually improve the working capital cycle.
Resolution of Dispute with Skypower: Skypower's Telangana solar
asset Kamareddy was monetized in 1QFY23 and SWPL realized its EPC
dues for this project in June 2022. Of the pending two solar assets
in Madhya Pradesh, one asset of 50MW is already generating power
and the second 50MW asset has received favorable judgement from the
Supreme Court in November 2022 for non-termination of power
purchase agreement (PPA). The company is awaiting a formal approval
for energizing the facility, post which the process of power
offtake under the PPA would begin. Simultaneously, company is also
exploring the possibility of stake sale with potential buyers for
the two assets on a combined basis. The management expects to
receive INR5 billion-5.5 billion from its two-third share of asset
sale (including existing cash accruals).
Liquidity at Shapoorji Group Level: During 1QFY23, Shapoorji Group
company, Goswami Infratech Pvt. Limited raised non-convertible
debentures of INR143 billion with redemption in April 2026 and
primarily backed by credit support from Cyrus Investment P Ltd. and
further backed by the monetization events comprising of port assets
as well as Afcons Infrastructure Limited. The company has informed
the agency that the Shapoorji Group is planning to raise additional
funds.
Consolidated Weak Operating Performance in FY22-FY23: The company
has been reporting EBITDA losses at the consolidated level for the
past few fiscals on account of its lower margin legacy order book
and high fixed costs due to smaller scale jobs. Further, the
consolidated revenue decreased to INR19 billion in FY23 (FY22:
INR25 billion) due to strategically lower order booking to first
execute the legacy order book and implementation of other
restructuring plans simultaneously such as larger-scale orders,
segmental diversification, cost trimming measures, among others.
Management expects the company to generate an annual consolidated
turnover of INR20 billion-22 billion from FY24.
Standalone Profile: On a standalone basis, SWPL reported operating
revenue of INR13.0 billion in FY23 (FY22: INR21.4 billion) with
EBITDA losses of INR3.7 billion (FY22: INR2.3 billion EBITDA loss)
as it booked lesser orders in FY21 and FY22 with a focus to execute
the legacy order book and execute strategies for business
transition. In 1QFY24, on a standalone basis, the company generated
an operating income of INR3.0 billion and it reported positive
EBITDA and PAT of INR0.3 billion and INR0.05 billion,
respectively.
Ind-Ra believes the company shall require steady execution of
orders and liquidity from working capital limits to generate
sustainable profits; the same shall be monitored by the agency in
view of the stretched liquidity position and potential financing
constraints.
Rating Sensitivities
Negative: Delays in servicing of debt facilities rated by Ind-Ra
will lead to a negative rating action.
Positive: A sustained improvement in the liquidity position and
operating profitability will lead to a positive rating action.
Company Profile
SWPL is a leading provider of MEP services in India, with
international operations in the Middle East and Africa. Established
in 1927 as Wilson Electric Works, SWPL was formed in 1971. SPCPL
owns a 66.33% stake in the company, while the balance is held by
Mr. Khurshed Daruwala. Since FY20, the company has also forayed
into engineering, procurement and construction activities for T&D,
construction of data centers and projects related to hybrid energy
services, involving multiple sources of fuel.
T T LIMITED: Ind-Ra Keeps BB+ Rating in Non-Cooperating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained T T Limited's
(TTL) bank facilities' ratings on Rating Watch with Negative
Implications as follows:
-- INR750 mil. Fund-based limits maintained on Rating Watch with
Negative Implications IND BB+/Rating Watch; Negative
Implications/IND A4+/Rating Watch with Negative Implications
rating;
-- INR50 mil. Non-fund-based limits maintained on Rating Watch
with Negative Implications; IND A4+/Rating Watch with
Negative Implications; and
-- INR318.2 mil. Term loan due on February 2026 maintained on
Rating Watch with Negative Implications; IND BB+/Rating Watch
with Negative Implications.
Analytical Approach: Ind-Ra continues to take a standalone view of
TTL to arrive at the ratings.
Ind-Ra has maintained the ratings on Rating Watch with Negative
Implications in view of the weak liquidity position following a
substantial decline in operating cash flows. The agency shall
closely monitor the company's performance and the status of the
receipt of funds from the sale of TTL's Gajraula facility, and will
take a rating action once it receives sufficient clarity and
information regarding these factors.
Key Rating Drivers
TTL's credit metrics weakened in FY23 owing to a decline in the
absolute EBITA to INR97.54 million (INR390.72 million), with
interest coverage (operating EBITDA/gross interest expenses) of
0.57x (FY22: 1.81x) and net leverage (total adjusted net
debt/operating EBITDAR) of 15.26x (4.37x). In 1HFY24, the credit
metrics improved owing an improvement in the EBITDA to INR100.98
million (1HFY23: INR48.9 million) .The interest coverage was 1.24x
in 1HFY24 and the net leverage was 13.85x. Ind-Ra expect the
metrics to improve in the near term on the back of the ongoing
restructuring of the business, the reduction in working capital
limits, and the likely prepayment of the long-term loans with the
funds from the sale of the Gajroula facility.
TTL's revenue declined to INR2,030 million during FY23 (FY22:
INR3,955 million), as demand was impacted by the resistance from
downstream companies to high cotton prices, uncompetitive Indian
yarn prices in the international market, and a slowdown in demand
from developed nations amid recessionary concerns. The scale of
operations continued to be small. TTL completed its exit from the
yarn manufacturing business in October 2021, but it continues to
engage in the yarn trading business owing to its longstanding
relationships with its existing customers. In 1HFY24, the company
achieved a revenue of INR1,074.35 million. Ind-Ra expects TTL's
revenue to increase on a yoy basis in FY24, led by the
restructuring of the business, and believes the revenue would
improve steadily in the medium term, with additional revenue
accruing from the new facilities that are proposed to be set up at
Delhi NCR and Kolkata, which might start generating revenue from
FY25.
Furthermore, the company's EBTIDA margin declined to a modest 4.8%
in FY23 (FY22: 9.8%) owing to lower absorption of fixed costs, due
to the decline in revenue, the strategic shift to low-margin yarn
trading from high-margin yarn manufacturing, and the
unprecedented fluctuations in cotton prices. The ROCE was 2.8% in
FY23 (FY22: 12.5%). In 1HFY24, the margin increased to 9.40%,
supported by the ongoing restructuring of the business. Ind-Ra
expects the margins to increase on a yoy basis in FY24, and
stabilize over the medium term. Any fluctuations in the EBITDA
margin and overall profitability would be a key rating monitorable.
During FY24, TTL signed a memorandum of understanding for the sale
of its textile unit at Gajraula, Uttar Pradesh, for INR710 million
to M/s Shree Krishna Impex, which is a partnership firm. The
company plans to use the funds from the sale to prepay its
long-term secured and unsecured loans, and also for setting up new
facilities and for its ongoing business operations. However, the
company had received only INR70 million as of December 2023. The
balance amount is scheduled to be received by April 2024. In FY23,
the company had realized around INR163 million from the sale of
ginning mill land and building in Rajula, Gujarat, and a building
in Karol Bagh, Delhi.
Liquidity Indicator – Poor: TTL's average utilization of the
fund-based limits was around 95.19% during the 12 months ended
December 2023. The cash flow from operations reduced to INR63.8
million in FY23 (FY22: INR193.3 million) in line with the decline
in EBITDA, resulting from the fall in revenue. The net working
capital cycle elongated to 246 days in FY23 (FY22: 130 days) owing
to an increase in inventory days to 197 days (104 days) and debtor
days to 59 days (32 days). Ind-Ra expects the working capital cycle
to remain stretched in FY24 owing to the nature of operations, but
it is likely to improve slightly over the medium term with faster
stock rotation and lower inventory holding period. The cash and
cash equivalents stood at INR4.42 million at FYE23 (FYE22: INR6.37
million), against debt obligations of INR94.9 million in FY24 and
INR159.3 million in FY25. TTL has already made prepayments for
Indian Bank's term loan and guaranteed emergency credit line until
December 2023 and September 2023, respectively. The company plans
to prepay the balance portion of the term loan and guaranteed
emergency credit line from Indian Bank (IND AA+/Stable) and 40% of
the guaranteed emergency credit line from Punjab National Bank (IND
AAA/Stable) with the proceeds from the sale of the Gajroula
facility.
The ratings factor in the company's susceptibility to volatility in
input costs, which account for a major portion of the group's
revenues. The prices of the main raw material used by the company,
cotton, touched historical highs of INR0.1 million-0.115 million
per candy in May 2022.
The ratings are supported by TTL's promoters' experience of nearly
five decades in the textile industry, leading to established
relationships with its customers as well as suppliers.
Rating Sensitivities
The Rating Watch with Negative Implications indicates that the
ratings may be either downgraded or affirmed. The Rating Watch with
Negative Implications will be resolved once the agency receives
more clarity on the receipt of funds from the sale of the Gajroula
facility. The agency would also be monitoring the operating and
financial performance of the company.
Company Profile
Incorporated in 1978, TTL is a public company domiciled in India.
Its shares are listed with the National Stock Exchange and Bombay
Stock Exchange. The registered office of the company is in Delhi.
The company operates in the textile segment and is engaged in yarn
trading, knitting, and cutting and sewing of textiles products. TTL
caters to the domestic as well as export markets.
TAMIL NAADU: Ind-Ra Cuts Bank Loan Rating to BB, Outlook Negative
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Tamil Naadu Edible Oils Private Limited's (TNEP) bank
facilities:
-- INR50 mil. Fund-based facilities* Long-term rating downgraded;
Short-term rating affirmed with IND BB/Negative/IND A4+
rating;
-- INR350 mil. Non-fund-based facilities affirmed with IND A4+
rating; and
-- INR230 mil. Non-fund-based facilities assigned with IND A4+
rating.
*Sub limit of non-fund-based facilities
Analytical approach: Ind-Ra continues to take a standalone approach
of TNEP for the rating review.
The downgrade and Negative Outlook reflect the EBITDA loss reported
by TNEP and its weakened credit metrics in FY23. Ind-Ra expects the
overall credit metrics to remain weak in FY24 because of TNEP's
lower revenue, subdued EBITDA and its high adjusted debt levels.
The revenue would decline due to a shortage in the supply of its
raw materials and a moderation in the prices of edible oils,
resulting in lower yoy sales realization. Although the EBITDA
turned positive during 1HFY24, the company's ability to maintain
the same during the 2HFY24 is a key monitorable.
Key Rating Drivers
TNEP reported an EBITDA loss of INR42.30 million in FY23 (FY22:
loss of INR12 million), primarily due to the fluctuations in the
raw material prices and the company's limited ability to pass them
on to its customers. The company imports a majority of its raw
materials from Russia, Ukraine and Argentina. The supply-chain
disruptions amid the closure of major ports in Ukraine hit the
availability of crude sunflower oil to TNEP, which managed to
procure it from local suppliers, leading to higher input costs. In
FY23, the raw material costs accounted for 99% (FY22: 98%) of
TNEP's total revenue. During 1HFY24, the company reported an EBITDA
profit of INR8 million and an EBITDA margin of 0.3%, backed by the
increased realization due to a rise in the prices of edible oils.
The agency expects the EBITDA margin to be in the range of
0.3%-0.5% in FY24. In addition, TNEP's profitability is exposed to
a sudden and sharp volatility in the raw material prices, which
highly rely on various factors such as the cost of imports,
climatic conditions in the major cultivation regions and
international trade policies.
The ratings also reflect, the weakened credit metrics of the
company due to the EBITDA losses. In FY23, the interest coverage
(operating EBITDA/gross interest expense) remained negative at
4.36x (FY22: negative 1.13x) and the net leverage (adjusted net
debt/operating EBITDAR) turned at negative 3.13x (0.54x). Ind-Ra
expects the overall credit metrics of the company to remain weak in
FY24, due to the subdued EBITDA and high adjusted debt levels after
adjusting the letter of credit as a majority of TNEP's purchases
are backed by letters of credit (LCs).
Liquidity Indicator - Stretched: The company imports 60%-70% of the
raw materials from countries such as Ukraine, Russia and Argentina.
The imports are 100% LC backed. The company has an LC sanctioned
limit of INR580 million with a sub-limit of INR50 million cash
credit facility. The average maximum utilization of TNEP's
fund-based and non-fund-based limits were 58% and 51%,
respectively, over the 12 months ended October 2023. The cashflow
from operations turned negative on account of an increase in the
working capital requirements at FYE23. In FY23, the net cash
conversion cycle elongated to eight days (FY22: three days), on
account of an increase in its inventory days to 34 days (17 days).
The company always maintains a one-month stock of its raw materials
and a finished goods inventory of three-to-four days. The debtor
days remained in the range of 10-12 days over FY21-FY23 while the
creditor days remained in the range of 26-36 days. The company does
not have any major debt obligations due to the absence of term
loans. The company's cash and cash equivalents stood at INR20
million for FY23 (FY22: INR43 million).
The ratings factor a medium scale of operations of the company. In
FY23, TNEP's revenue declined 5% yoy to INR4,347 million (FY22:
INR4,585 million), primarily due to the lower quantity of volumes
sold. The company sold 28,180 metric ton (mt) in FY23 (FY22:
29,504mt). During 1HFY24, the company's revenue stood at INR2,389
million. Ind-Ra expects TNEP's revenue to decline in FY24, due to a
shortage in the supply of its raw materials and a moderation in the
prices of edible oils, resulting in lower yoy sales realization.
The ratings are supported by TNEP's established presence in the
Tamil Nadu, backed by the promoters' extensive experience. TNEP has
been in the edible oil industry for over three decades. The company
imports unrefined sunflower oil from Ukraine and Argentina and
refines it at its plant in Gummidipoondi, Tamil Nadu. TNEP sells
its products to wholesalers, re-packers, hotel and retailers. Of
its total production, around 75% is being sold to wholesalers and
re-packers, 10% to hotels and the remaining is being sold under the
company's own brand Sundew to retailers. TNEP has an overall
customer base of around 150, which includes companies such as
Mother Dairy Fruits & Vegetable Pvt. Ltd, Bunge India, Kaleesuwari
Refinery Private Limited, among others, that give repetitive
orders. In FY23, its top 10 customers accounted for 47% (FY22: 41%)
of its overall revenue.
Rating Sensitivities
Positive: A significant increase in its EBITDA and the margins
along with an improvement in the credit metrics and liquidity will
lead to the Outlook being revised to Stable.
Negative: An inability to improve the EBITDA and the margins,
leading to a further stretch in the credit metrics and/or
deterioration in the liquidity position will be a negative for the
ratings.
Company Profile
Incorporated in 1986, TNEP processes and markets edible oil in
India. It generates majority of its revenue from Tamil Nadu.
VENKATESHWARA SHIKSHAN: CRISIL Keeps D Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree
Venkateshwara Shikshan Sanstha (SVSS) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 11.38 CRISIL D (Issuer Not
Cooperating)
Term Loan 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVSS for
obtaining information through letter and email dated December 13,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVSS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVSS
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVSS continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2000, SVSS operates multiple institutes offering courses
in engineering, and management, and education, among others. It
also operates an English medium school and two charitable schools.
VIPUL-S PLASTOCRAFTS: Liquidation Process Case Summary
------------------------------------------------------
Debtor: Vipul-S Plastocrafts Private Limited
Orchid Villa, Plot No.85, Sector 25,
Pcntda Pradhikaran, Nigdi, Pune,
Maharashtra, India, 411044
Liquidation Commencement Date: November 23, 2023
Court: National Company Law Tribunal, Mumbai Bench-III
Liquidator: Mr. Rakesh Kumar Tulsyan
B-4, Vinay Tower, Kranti Nagar,
Lokhandwala, Kandivali East,
Mumbai - 400101
Email: tulsyanrk@gmail.com
Email: ip.vipuls@gmail.com
Last date for
submission of claims: January 5, 2024
YAXIS STRUCTURAL: Ind-Ra Moves BB Rating to Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Yaxis Structural Steels Private Limited to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time. Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR50 mil. Term loan due on September 15, 2029 migrated to
non-cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING) rating;
-- INR300 mil. Fund Based Working Capital Limit migrated to non-
cooperating category with IND BB/Stable (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-Fund Based Working Capital Limit 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
Company Profile
YSSPL, incorporated in June,2019 is a Pune based company, involved
in manufacturing of structural steel products such as W-Beam,
serrated flat bars, plain flat bars, beam, channel, angle, round
bar, square bar and RSJ Pole.
=====================
N E W Z E A L A N D
=====================
AGWATER ENGINEERING: Creditors' Proofs of Debt Due on Feb. 26
-------------------------------------------------------------
Creditors of Agwater Engineering Limited are required to file their
proofs of debt by Feb. 26, 2024, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan 26, 2024.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
CAPITAL LI: Court to Hear Wind-Up Petition on Feb. 16
-----------------------------------------------------
A petition to wind up the operations of Capital Li Limited will be
heard before the High Court at Auckland on Feb. 16, 2024, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 16, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
COMBINED PROPERTY: Creditors' Proofs of Debt Due on Feb. 29
-----------------------------------------------------------
Creditors of Combined Property Maintenance Limited and KVN Builders
2020 Limited are required to file their proofs of debt by Feb. 29,
2024, to be included in the company's dividend distribution.
The companies commenced wind-up proceedings on Jan. 25, 2024.
The company's liquidator is:
Bryan Edward Williams
c/o BWA Insolvency Limited
PO Box 609
Kumeu 0841
HYDRAULIC SOLUTIONS: Creditors' Proofs of Debt Due on Feb. 26
-------------------------------------------------------------
Creditors of Hydraulic Solutions Southland Limited are required to
file their proofs of debt by Feb. 26, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Jan. 26, 2024.
The company's liquidators are:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
MAINZEAL GROUP: Liquidators Pursue Richard Yan Over NZD60.9MM Debt
------------------------------------------------------------------
The South China Morning Post reports that liquidators of collapsed
Auckland-based construction company Mainzeal are pursuing Shanghai
businessman Richard Yan, holding him liable for more than NZD60.9
million (US$37.4 million) owed to the company's creditors, in a
case that has implications for Chinese businesses operating in New
Zealand.
Andrew McKay, a partner with business advisory firm BDO Auckland,
who is responsible for winding up the construction company, told
the Post on Jan. 29 that advertisements would be placed in
newspapers in Hong Kong and mainland China this week, after
liquidators were authorised to serve notice on the Chinese
businessman.
"We have tried to contact Richard Yan through multiple channels, to
serve notice on him and eventually obtained orders from the [New
Zealand] High Court to conduct that service through email," the
Post quotes Mr. McKay as saying. "We have also been given
instructions to place advertisements in leading newspapers in Hong
Kong and China."
The liquidators were authorised by the court to place the
advertisement. In Hong Kong, the advertisement will be placed in
the Post.
"Yan is not a well-known business tycoon in China, but the debt he
owes to creditors could taint Chinese businesspeople's reputation
in New Zealand," the Post quotes Ding Haifeng, a consultant at
local financial advisory firm Integrity, as saying. "Some Chinese
entrepreneurs are still investing in New Zealand in agriculture and
tourism businesses."
Privately-owned mainland property developers, including Shundi
Customs, part of Shanghai-based Shundi Group, and Beijing-based
developer Fu Wah, have also been selling flats to buyers in New
Zealand, the Post notes.
Shundi is still on ground with residential projects in Auckland and
Queenstown and is constructing New Zealand's tallest residential
tower, Seascape, due for completion this year. Fu Wah was founded
by Chan Laiwa, one of China’s richest women.
According to the Post, Mr. McKay said that the liquidators did not
believe that Yan, also known as Yan Ciliang, lives at the Shanghai
address known to them.
According to the notice to be issued to Yan and seen by the Post,
he is required to pay creditors NZD60.9 million within 30 working
days.
On August 23, 2023, the Supreme Court in New Zealand had named the
directors of Mainzeal which included former chairman and CEO Yan,
Peter Gomm, Clive Tilby and former New Zealand Prime Minister Dame
Jenny Shipley, as guilty of violating the country’s corporate
laws, which prohibits insolvent terms from trading, the Post
recalls.
Yan was ordered to pay NZD39.8 million in damages, plus interest at
the rate of NZD5,452 per day.
Ms. Shipley had to pay a penalty of NZD6 million as a Mainzeal
director, and failed in the New Zealand Supreme Court to overturn
that ruling last August.
"Any person knowing Richard Yan is asked to bring this notice to
his attention," the liquidators said in the notice seen by the Post
and which is to be published shortly.
Mainzeal was one of the biggest construction companies in New
Zealand before it collapsed in 2013, ending up owing creditors
NZD110 million.
The receivers paid the secured creditor, Bank of New Zealand, and
preferential creditors in full. However, unsecured creditors are
still owed NZD110 million.
About Mainzeal Property
Mainzeal Property and Construction Ltd was a New Zealand-based
property and construction company. The company formed part of the
Mainzeal Group, which is owned by Richina Inc.
On Feb. 6, 2013, Colin McCloy and David Bridgman, partners from
PricewaterhouseCoopers, were appointed receivers to Mainzeal
Property and associated entities as a result of a request made by
its director to BNZ.
Mainzeal's director, Richard Yan advised that following a series of
events that had adversely affected the Company's financial position
coupled with a general decline in major commercial construction
activity, and in the absence of further shareholder support, the
Company could no longer continue trading.
On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership and
nine others in the group that were not in receivership.
The companies now under the control of the liquidators are Mainzeal
Group, Mainzeal Property and Construction, Mainzeal Living, 200
Vic, Building Futures Group Holding, Building Futures Group,
Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal
Construction SI, MPC NZ and RGRE.
Mainzeal is estimated to owe NZD11.3 million to the BNZ, NZD70
million to unsecured creditors and NZD5.2 million to employees, NZN
disclosed. Subcontractors are among the unsecured creditors, said
NZN.
NEW ZEALAND VACUUM: PwC Appointed as Administrators
---------------------------------------------------
Stephen Robert White and John Howard Ross Fisk on Jan. 30, 2024,
were appointed as administrators of New Zealand Vacuum Cleaner
Company Limited.
The administrators may be reached at:
C/- PricewaterhouseCoopers New Zealand
Private Bag 92162
Auckland 1142
ORGANIC DAIRY: Cooperative Goes Into Voluntary Liquidation
----------------------------------------------------------
Farmers Weekly reports that Waikato-based company Organic Dairy Hub
has gone into voluntary liquidation.
According to Farmers Weekly, the company made the decision on
November 22 last year after its shareholders voted on a resolution
put forward by its directors to go into liquidation. It was filed
on November 29.
Formed in 2015, the ODH is a co-operative that comprises around 28
organic dairy farmer shareholders.
The milk is processed at different sites across the North Island,
including Waikato Innovation Park spray driers, Waiū Dairy in
eastern Bay of Plenty, Goodman Fielder and Green Valley.
ODH exports a range of certified dairy products as well as its
brand, Ours Truly, and its range of A3 organic dairy products. ODH
also supplies liquid milk for other organic dairy brands in New
Zealand.
KPMG's Leon Francis Bowker and Luke Norman were appointed
liquidators on November 29, Farmers Weekly discloses. According to
the first liquidators report released on December 6, ODH directors
Michael Allen Brown, Cameron Farrand, Sharleen Gardner, John Wafer,
Frank Goodin and Ian Cumming signed a declaration that they have
made an inquiry into the financial affairs of the company.
In their opinion, the company will be able to pay its debts in full
within a period of not more than 12 months after the appointment of
the liquidators.
"Based on the information provided to date, the liquidation is a
solvent liquidation and will remain a solvent liquidation for the
period of the liquidation. All creditors will be paid in full
within 12 months of the date of the commencement of the
liquidation," it said.
After paying any remaining creditors, remaining funds will be
distributed to shareholders. It is a solvent liquidation and will
remain solvent for the period of the liquidation, the report, as
cited by Farmers Weekly, said.
According to its Resolution of Solvency document released to the
Companies Office on November 24, ODH had NZD50,238.40 in the bank,
NZD31,000 of stock, NZD54,052.89 in receivables and property, plant
and equipment worth NZD10,000, Farmers Weekly relays.
It has NZD439 in unsecured creditors. All up its assets totalled
NZD144,851.54. The expected cost of the liquidation is NZD55,000.
PROVENANCE: Creditors Seek NZD1.2 Million From Failed Restaurant
----------------------------------------------------------------
Stuff.co.nz reports that creditor claims totalling more than NZD1.2
million have been amassed against Provenance, a failed restaurant
in Palmerston North.
The Broadway Ave fine-dining venue, which focused on championing
local produce, ceased trading midway through 2023 when its owners
could no long cover overheads.
In a six-month liquidation report to shareholders and creditors on
January 15, Hamish Pryde from CS Insolvency outlined claims
totalling NZD1.268 million, Stuff discloses.
Of that sum, NZD971,000 was owed regarding unsecured loans and
unsecured creditors.
This included holders of unredeemed gift vouchers, which were
valued at more than NZD37,000 in total.
Few creditors were expected to see a dollar, with only NZD6,068
having been recovered so far from the sale of equipment. That sum
has been used to settle perfected security interests - the
top-priority creditors, Stuff relates.
Next in line were creditors with general security interest (GSI),
owed NZD160,744. For preferential creditors, NZD11,427 was owed in
staff wages and NZD115,523 in taxes.
Provenance owner Harry Faas and head chef Aaron Freeman were among
the list of more than 60 creditors, which included a number of
regional businesses, according to Stuff.
Much of the fittings and bar and kitchen equipment remained on-site
as efforts to sell the business continued.
Provenance had been listed with a number of nationwide real estate
agents.
In the report, Mr. Pryde said that if an interested party could be
found, efforts would be made to sell the chattels to them.
Otherwise an auction would be swiftly arranged, Stuff relays.
The estimated recovery from this was unknown and would first offset
GSI creditors.
However, the sale of stock on hand was set aside for honouring
wages and taxes. This was estimated to recover NZD7256.
In an earlier liquidation report, Mr. Pryde outlined that
Provenance had opened to strong trading in early 2022, but costs
were higher than budgeted and the business could not achieve the
profit margins expected, Stuff notes.
Inflation brought additional challenges, and efforts from the
directors to seek advice and make changes were not enough to combat
the cost-of-living crisis as turnover continued to fall.
SMUDGY DEVELOPMENTS: Thomas Lee Rodewald Appointed as Receivers
---------------------------------------------------------------
Thomas Lee Rodewald of Rodewald Consulting on Jan. 26, 2024, was
appointed as receivers and managers of Smudgy Developments
Limited.
The receiver and manager may be reached at:
C/- Rodewald Consulting Limited
Level 1, The Hub
525 Cameron Road
Tauranga 3110
=================
S I N G A P O R E
=================
BONHAM STRAND: Creditors' Proofs of Debt Due on Feb. 29
-------------------------------------------------------
Creditors of Bonham Strand Inception Fund VCC are required to file
their proofs of debt by Feb. 29, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 29, 2024.
The company's liquidator is:
Farooq Ahmad Mann
Mann & Associates PAC
3 Shenton Way
#03-06C Shenton House
Singapore 068805
MARINE ITALIA: Commences Wind-Up Proceedings
--------------------------------------------
Members of Marine Italia Singapore Pte Ltd on Jan. 23, 2024, passed
a resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Lai Seng Kwoon
c/o 7500A Beach Road
#05-303/304 The Plaza
Singapore 199591
MARITIME INTERNATIONAL: Court Enters Wind-Up Order
--------------------------------------------------
The High Court of Singapore entered an order on Jan. 19, 2024, to
wind up the operations of Maritime International Offshore Pte.
Ltd.
IL&FS Energy Development Company Limited filed the petition against
the company.
The company's liquidators are:
Mr. Joshua James Taylor
Ms. Chew Ee Ling
c/o Alvarez & Marsal (SE Asia)
10 Collyer Quay
#17-01 Ocean Financial Centre
Singapore 049315
YAU SHING: Court to Hear Wind-Up Petition on Feb. 9
---------------------------------------------------
A petition to wind up the operations of Yau Shing (Frozen Sharksfin
Pte Ltd) will be heard before the High Court of Singapore on Feb.
9, 2024, at 10:00 a.m.
Poon Wee Huat (Fang Weifa), in his capacity as sole executor and
trustee of the estate of Chew Peck Kwee, filed the petition against
the company on Jan. 19, 2024.
The Petitioner's solicitors are:
Selvam LLC
16 Collyer Quay #17-00
Singapore 049318
=====================
S O U T H K O R E A
=====================
TERRAFORM LABS: Says Bankruptcy Will Enable Appeal of SEC Lawsuit
-----------------------------------------------------------------
Reuters reports that Terraform Labs said on Jan. 30 that its recent
bankruptcy filing will enable it to pursue a "do-or-die" appeal in
a securities fraud case brought by the U.S. Securities & Exchange
Commission.
Reuters relates that the blockchain company's statement, made in a
bankruptcy court filing, refers to a ruling in December by a
federal judge that found Terraform Labs and its founder Do Kwon
violated U.S. law by failing to register two digital currencies
whose collapse roiled cryptocurrency markets in 2022.
The case is headed for trial in March on the SEC's remaining fraud
claims, but Terraform Labs said in the court filing that it likely
could not afford to pay the yet-to-be-determined judgment or pursue
an appeal, Reuters relays.
"The exact size of a money judgment remains unknown, but it could
very well outstrip the debtor's assets," Terraform's head of
company operations Chris Amani wrote in a court filing.
The company has access to about $28 million in Bitcoin, $7 million
of various other cryptocurrencies, and about $87 million in its own
proprietary token, Luna, according to its court filings.
Terraform Labs intends to argue on appeal that the SEC has no
authority over the company because its cryptocurrency tokens are
not "securities."
Such an appeal would normally require the company to post bond of
110% of the total judgment value before it can proceed. But a
Chapter 11 bankruptcy may enable the company to appeal without
posting a bond, according to Terraform Labs, Reuters relays.
"Without the protection of chapter 11, the Debtor would likely have
to liquidate after the trial," Amani wrote.
Terraform says it intends to continue developing tools and
applications for the new Terra blockchain that it created in the
wake of its 2022 collapse. The company is building out its own
products, like its crypto wallet "Station" and also encouraging
third-party development of applications for its Terra blockchain.
Terraform was at the center of the so-called "crypto winter" of
2022, when collapsing asset prices bankrupted many other crypto
companies.
Reuters says Terraform's stablecoin TerraUSD, designed to maintain
a constant $1 price, caused widespread volatility in crypto markets
after its price began to fall. TerraUSD and its sister coin Luna
eventually lost all of their value, and the ensuing fallout
contributed to the bankruptcies of FTX, Three Arrows Capital,
Celsius Network, BlockFi, Voyager Digital and Genesis Global.
About Terraform Labs
Based in Seoul, Korea, Terraform Labs Pte. Ltd. operates a
price-stable cryptocurrency. The Company seeks to power the
next-generation payment network and grow the real GDP of the
blockchain economy. Terraform labs provides financial
infrastructure for the next generation of decentralized
application.
Terraform Labs sought creditor protection in the United States
under Chapter 15 of the Bankruptcy Code (Bankr. D. Del. Case No.
24-10070) on Jan. 21, 2024.
Richards, Layton & Finger, P.A. is the Local Counsel to Terraform
Labs.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2024. All rights reserved. ISSN: 1520-9482.
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