/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/240212.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, February 12, 2024, Vol. 27, No. 31 Headlines A U S T R A L I A ADVANCED AIRCON: First Creditors' Meeting Set for Feb. 15 AFG 2022-1NC TRUST: S&P Affirms BB (sf) Rating on Class E Notes ARTS & ENTERTAINMENT: First Creditors' Meeting Set for Feb. 14 BEAUREPAIRES: 700 Jobs, 100 Stores to Go as Tyre Retailer Folds BRAVA CAPITAL: ASIC Cancels AFS License MORRIS BAKERY: Iconic Bakery Forced to Close After 80 Years ONEWORLD COLLECTION: First Creditors' Meeting Set for Feb. 15 SERENITY CONCEPTS: First Creditors' Meeting Set for Feb. 15 TOPLACE: Nassif's Estranged Wife's Lamborghini Repossessed TOTAL WORKZ: First Creditors' Meeting Set for Feb. 14 C H I N A CHINA SOUTH: Flags Potential Default on October 2024 Notes Payment SHINECO INC: Recurring Losses Raise Going Concern Doubt I N D I A ADINATH AGRO: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable AGRA OIL: ICRA Keeps B+ Debt Rating in Not Cooperating Category AMBAY FOODS: CRISIL Moves B+ Debt Ratings to Not Cooperating AMEYA PRECISION: CRISIL Lowers Rating on INR3.25cr Loan to B ANDHRA PRADESH: ICRA Moves D Debt Rating in Not Cooperating AXORA RESOURCES: ICRA Lowers Rating on INR50cr LT Loan to B+ BABA BAIDYANATH: Ind-Ra Gives B Bank Loan Rating, Outlook Stable BIRBHUM CHEMICALS: Insolvency Resolution Process Case Summary BRISTOL TOURIST: CRISIL Withdraws D Rating on INR35cr Term Loan CHOICE HATCHERY: CRISIL Keeps B+ Debt Ratings in Not Cooperating DEEPAK FASTENERS: CRISIL Keeps D Debt Ratings in Not Cooperating DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating ESSEL LUCKNOW: Ind-Ra Cuts NonConvertible Debts Rating to BB+ GITANJALI GEMS: Bankruptcy Court Enters Liquidation Order GNPAL SPECIALITY: CRISIL Assigns B+ Rating to INR15cr Loan HBS AUTO: Insolvency Resolution Process Case Summary HH IRON: Ind-Ra Assigns BB Loan Rating, Outlook Stable HIRANMAYE ENERGY: Insolvency Resolution Process Case Summary JAYMALA INFRA: ICRA Lowers Rating on INR27cr Term Loan to B JUNGLE HOMES: ICRA Keeps B+ Debt Rating in Not Cooperating JYOTSNA GREEN: Ind-Ra Withdraws BB Term Loan Rating KARVY DATA: CRISIL Keeps D Debt Ratings in Not Cooperating LAKHOTIA TRANSPORT: Ind-Ra Moves BB Loan Rating to NonCooperating M/S SITA: Ind-Ra Affirms B+ Bank Loan Rating, Outlook Stable NAVAYUGA INFRA: Insolvency Resolution Process Case Summary NEO POWER: Ind-Ra Assigns B+ Bank Loan Rating, Outlook Stable NITIN FIRE: CRISIL Keeps D Debt Ratings in Not Cooperating PANCHWATI PRAYOGSHALA: ICRA Keeps B+ Ratings in Not Cooperating PAREKH ALUMINEX: CRISIL Keeps D Debt Ratings in Not Cooperating POOJA JEWELLERS: ICRA Keeps D Debt Rating in Not Cooperating POWER RESEARCH: ICRA Lowers Rating on INR7cr LT Loan to D RAINBOW FOUNDATIONS: Ind-Ra Withdraws BB NCDs Rating RAJAMAHAL INT'L: ICRA Keeps B Debt Ratings in Not Cooperating RIDDHI SIDDHI: ICRA Keeps D Debt Rating in Not Cooperating RIDDHI STEEL: Ind-Ra Withdraws BB+ Bank Loan Rating ROSELABS LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating RUSHABH LIFESTYLE: Insolvency Resolution Process Case Summary SAGARSHREE HOSPITAL: Ind-Ra Withdraws B+ Bank Loan Rating SAMARPAN DEVELOPERS: CRISIL Assigns B Rating to INR9.5cr Loan SRS LIMITED: CRISIL Keeps D Debt Rating in Not Cooperating TRANSFORMERS AND ELECTRICALS: Ind-Ra Gives BB- Term Loan Rating VAXTEX COTFAB: Insolvency Resolution Process Case Summary YASH CONSTRUCTION: CRISIL Keeps D Debt Ratings in Not Cooperating YOGI WIRES: CRISIL Keeps B+ Debt Rating in Not Cooperating YOUVAKSHI NEWS: CRISIL Keeps B Debt Ratings in Not Cooperating I N D O N E S I A ABM INVESTAMA: Moody's Affirms 'B1' CFR, Outlook Remains Stable J A P A N [*] JAPAN: Sushi Joints Going Bankrupt Shows Inflation Impact N E W Z E A L A N D ALLBUILDS LIMITED: Court to Hear Wind-Up Petition on Feb. 20 MAIA PROJECTS: Creditors' Proofs of Debt Due on March 4 NZ MATTOCK: Creditors' Proofs of Debt Due on March 8 PEI QIU: Iain Andrew Nellies Appointed as Liquidator T & T CONSTRUCTION: Court to Hear Wind-Up Petition on Feb. 20 S I N G A P O R E BC CONCEPT: Court Enters Wind-Up Order ENERGY WAVE: Court to Hear Wind-Up Petition on March 1 GRUNDTVIG MARINE: Creditors' Proofs of Debt Due on March 11 LIPPO MALLS: Fitch Lowers IDR to 'C' on Distressed Debt Exchange STC INTERNATIONAL: Creditors' Proofs of Debt Due on March 11 TAIYO ASIA: Court to Hear Wind-Up Petition on March 1 [*] SINGAPORE: Bankruptcy, Winding-Up Below Pre-Covid Levels V I E T N A M VIETNAM MARITIME: Moody's Affirms B1 Issuer Rating, Outlook Stable - - - - - ================= A U S T R A L I A ================= ADVANCED AIRCON: First Creditors' Meeting Set for Feb. 15 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Advanced Aircon Design and Construct Projects Pty Limited will be held on Feb. 15, 2024 at 11:00 a.m. at Suite 5B, 55 Kembla Street at Wollongong and via virtual meeting technology. Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells were appointed as administrators of the company on Feb. 5, 2024. AFG 2022-1NC TRUST: S&P Affirms BB (sf) Rating on Class E Notes --------------------------------------------------------------- S&P Global Ratings raised its ratings on four classes of notes issued by Perpetual Corporate Trust Ltd. as trustee for AFG 2022-1NC Trust in respect of Series 2022-1NC. At the same time, S&P affirmed its ratings on three classes of notes. The transaction is a securitization of nonconforming and prime residential mortgages originated by AFG Securities Pty Ltd. The raised ratings reflect increasing credit support and a declining expectation of losses as the pool loan-to-value ratio decreases. As of Dec. 31, 2023, the pool has a balance of about A$179 million and a pool factor of about 39.8%. The pool's weighted-average loan-to-value ratio is 64.3% and weighted-average seasoning is 29.3 months. Over the past 12 months, arrears have been trending up, though they are still in line with Standard & Poor's Performance Index (SPIN) for nonconforming loans. As of Dec. 31, 2023, loans more than 30 days in arrears make up 3.54% of the pool, of which 1.95% is more than 90 days in arrears. S&P said, "For the lower-rated note tranches, we have not raised our ratings on the class C, class D, class E, and class F notes to a level that models alone support. This is due to the borrower concentration in the pool. The largest 10 borrowers make up about 9.0% of the pool. Arrears increased in the pool in recent months, and we believe they could stay at these levels, given higher interest rates and cost-of-living pressures. We view the lower-rated notes to be more susceptible to borrower concentration risk and arrears movements. "We believe the credit support, in the form of note subordination, is sufficient to withstand the stresses we apply. In addition, there is a retention mechanism and an amortization mechanism under which a retention amount and an amortization amount, respectively, are built from any excess spread." The various mechanisms to support liquidity within the transactions, including an amortizing liquidity facility and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest. S&P's ratings also reflect the availability of an extraordinary expense reserve, funded at closing by AFG Securities, to cover extraordinary expenses. The reserve will be topped up via excess spread, if drawn. Ratings Raised AFG 2022-1NC Trust in respect of Series 2022-1NC Class B: to AAA (sf) from AA (sf) Class C: to AA (sf) from A (sf) Class D: to BBB+ (sf) from BBB (sf) Class F: to B+ (sf) from B (sf) Ratings Affirmed AFG 2022-1NC Trust in respect of Series 2022-1NC Class A1-L: AAA (sf) Class A2: AAA (sf) Class E: BB (sf) ARTS & ENTERTAINMENT: First Creditors' Meeting Set for Feb. 14 -------------------------------------------------------------- A first meeting of the creditors in the proceedings of Arts & Entertainment of South Australia Limited will be held on Feb. 14, 2024 at 10:30 a.m. via video conferences only. David Trim and Richard Albarran of Hall Chadwick were appointed as administrators of the company on Feb. 2, 2024. BEAUREPAIRES: 700 Jobs, 100 Stores to Go as Tyre Retailer Folds --------------------------------------------------------------- News.com.au reports that one of Australia's oldest and largest tyre retailers looks set to close after an attempt to sell the business to a rival fell through. Beaurepaires, a tyre retailer, fitter and repairer with 100 outlets across Australia, was founded in 1922 - more than 100 years ago - in Melbourne by Sir Frank Beaurepaire. The retail chain is now owned by Goodyear Dunlop Tyres Australia, which is part of the US-listed Goodyear Tire and Rubber Company. In September last year, the parent company announced a plan to the US stock market to "improve profitability in its Australia and New Zealand operations," news.com.au relays. Its plan involves moving to a "third-party distribution and retail sales model instead of a company-owned approach", which the company explained would see it shed around 700 jobs, exit nine warehouse locations, and sell or exit approximately 100 retail and fleet store locations, understood to be Beaurepaires outlets. A source, who requested to remain anonymous, told news.com.au that the company had been in talks to sell Beaurepaires to rival tyre retailer Bob Jane Corporation, but that the sale talks had fallen through. "Bob Jane got offered to buy out all the stores," the source said, adding that rather than buying the entire chain "they have chosen the select few that actually make money". News.com.au understands that some other Beaurepaires stores were converted to Goodyear Autocare outlets in the past year. Neither Goodyear Dunlop Tyres Australia or the Bob Jane Corporation responded to questions from news.com.au about the acquisition talks. The source added that the remaining stores in the Beaurepaires chain would be closed by April this year, a claim Goodyear Dunlop Tyres Australia has denied, news.com.au relays. Lauren Voucatos, human resources transformation and communications lead for Goodyear Dunlop Tyres Australia told news.com.au that while the company had "begun to evaluate different scenarios for different parts of our business", no final decisions had been made as yet. In its US stock market announcement, the company said it expected to complete the changes to its Australian and NZ business by the end of 2024, news.com.au relays. It estimated the local transformation plan would cost it US$55-65 million (AUD84-99 million) before-tax, but that the changes would ultimately increase the income generated by its Australia and NZ business by US$50-$55 million (AUD76-84 million) a year from 2025 onwards, according to the report. As part of the evolution of its tyre distribution to a third-party model, it was announced last September that wholesaler TyreMax would become the exclusive distributor of Goodyear tyres in Australia and NZ, while wholesaler and retailer National Tyre and Wheel would exclusively distribute its Dunlop branded tyres, news.com.au reports. In a statement about the deal to the Australian Securities Exchange (ASX), the ASX-listed National Tyre and Wheel said it could accommodate distribution of the Dunlop tyres through its existing wholesale distribution business, including its warehousing facilities, and revealed that it would begin to distribute Dunlop tyres in Australia from this April. But Ms. Voucatos said that what the distribution changes mean for Goodyear Dunlop's existing warehouses "hasn't been determined," news.com.au relays. news.com.au add that the plans for the Australia and NZ business are part of broader works the troubled company is taking to improve its profitability. Following the September announcement, in November, the US parent company revealed the Dunlop tyre brand is up for sale, recalls news.com.au. This news caused National Tyre and Wheel to release a further announcement to the ASX advising that it was "seeking clarification" from Goodyear about the impact of any sale on its distribution deal. In its original September statement about the local changes, the company said "the proposed plan remains subject to consultation with employee representatives" but it is understood the Australian Manufacturing Workers' Union is yet to be consulted about the changes, news.com.au adds. BRAVA CAPITAL: ASIC Cancels AFS License --------------------------------------- The Australian Securities & Investments (ASIC) has cancelled the Australian financial services licence (AFSL) held by Sydney-based Brava Capital Pty Ltd, previously known as Dayton Way Securities Pty Ltd between 2010 and August 2023. The licence cancellation took effect on Feb. 5, 2024, after ASIC was notified by Brava Capital that it no longer provides financial services. Brava Capital held an AFSL since March 15, 2011, under which the company was authorised to provide financial product advice to retail and wholesale clients. In October 2023 Brava Capital was charged with criminal offences relating to the failure to lodge financial accounts following an investigation by ASIC. Brava Capital is connected to Sydney businessman David Sutton, who was previously a director of the company between 2010 and 2023. ASIC permanently banned David Sutton on June 29, 2023 from providing any financial services, performing any function involved in the carrying on of a financial services business and controlling an entity that carries on a financial services business. Mr. Sutton was also disqualified by ASIC from managing corporations for five years. MORRIS BAKERY: Iconic Bakery Forced to Close After 80 Years ----------------------------------------------------------- Daily Mail Australia reports that a beloved bakery that had been in business for almost 80 years appears to have suddenly shut up shop, much to the despair of heartbroken locals. According to the report, Morris Bakery in Naracoorte, around a three-and-a-half hour drive south of Adelaide on South Australia's Limestone Coast has been closed all week. The once-thriving business established in 1946 on the Smith Street precinct had been struggling for some time, although no official announcement of the bakery's closure has been made. The bakery is located on a once-busy shopping strip now described as a 'ghost town' with mass closures and empty stores. Increased competition from nearby bakeries have also contributed to the store's decline. Daily Mail Australia notes that Morris Baker was once renowned for having the best doughnuts, pies, fresh bread, rolls and sandwich bar in town. The business used to supply bread and many other delicacies to dozens of local businesses and organisations including local schools and footy clubs. Businesses as far as the Victorian border would also place catering orders with the bakery back in the business's heyday. Locals used to line up outside the front door to order freshly made sandwich rolls and salads from the much loved sandwich bar that was adored by both young and the old. Daily Mail Australia has contacted Morris Bakery for comment. Locals lamented the loss of the bakery and took to social media to express their disappointment, Daily Mail Australia says. 'Very sad indeed. Was such a bustling, successful business that was so iconic to our town and districts for many years,' one person said. 'So sad to see another business closing their doors, after such great service to Naracoote, for so many years. The Morris family can hold their heads high,' another wrote. Other sad locals say the bakery's closure is another dent to the street's history. 'Years of Naracoorte history gone,' one told the Adelaide Advertiser. 'The main street is starting to look like a ghost town.' However, others claimed that quality of Morris Bakery's once iconic treats had gone downhill in recent years. Daily Mail Australia says Smith Street - once known as a retail hub, had suffered from the closure of several businesses including food stores in the area in recent years which has led to a decline in shoppers and diners visiting the area. The local newsagent closed up several years ago and flower shop Naracoote Flowers and Gifts, shut their doors in January this year. Naracoorte's Target country store which was popular among locals for their shopping needs also closed in 2021. ONEWORLD COLLECTION: First Creditors' Meeting Set for Feb. 15 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Oneworld Collection Pty Limited will be held on Feb. 15, 2024 at 11:00 a.m. at Level 2, 72 Pitt Street in Sydney or via Zoom. Antony Resnick and Suelen McCallum of dVT Group were appointed as administrators of the company on Feb. 5, 2024. SERENITY CONCEPTS: First Creditors' Meeting Set for Feb. 15 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Serenity Concepts Pty Ltd will be held on Feb. 15, 2024 at 12:00 p.m. via a Zoom videoconferencing facility. Grahame Ward and Domenic Calabretta of Mackay Goodwin were appointed as administrators of the company on Feb. 5, 2024. TOPLACE: Nassif's Estranged Wife's Lamborghini Repossessed ---------------------------------------------------------- Kevin Airs for Daily Mail Australia reports that the estranged wife of fugitive property developer Jean Nassif said she was humiliated and distressed when her famous yellow Lamborghini was repossessed while she shopped at Coles. Nisserine Mattar became a viral sensation in 2019 when Nassif gifted her the yellow Lamborghini Urus SUV - the TikTok video quickly became a meme for materialistic excess, the report recalls. But Toplace tycoon Nassif, 55, fled to Lebanon in late 2022 after his property empire collapsed with debts of more than AUD420 million, and left his family behind in Sydney. He is wanted by police for alleged financial fraud and his daughter Ashlyn, 28, faces charges of faking contracts for a AUD150 million loan to fund Toplace developments. Thousands of homeowners are also chasing him over defects in apartments built by his company, including the Vicinity tower block in Canterbury whose 400 residents are facing a repair bill of up to AUD100 million, according to the report. The owners of the 900 apartments in the five towers of Toplace's Skyview development at Castle Hill were prevented from even moving in because dangerous cracks were found by building inspectors in 2021. That was the trigger for the company's collapse, the report notes. Those who mocked the couple's extravagant displays of wealth - which also included clips of fur coats and lavish diamond jewellery - have had the last laugh. According to Daily Mail Australia, Nassif's wife said she and her three kids were left stranded at a suburban shopping centre when the infamous AUD480,000 Lamborghini was repossessed. It was seized from the carpark at the Rhodes shopping centre in Sydney's inner west as part of an effort by administrators to recoup Nassif's assets to pay back creditors, Daily Mail Australia relays. 'I was in Coles at Rhodes shopping centre . . . we go back to where I parked it, and it's gone,' she told the Daily Telegraph. 'The kids were crying and trying to help me find it. I called security and they checked the cameras (in the carpark) and could see a guy taking it.' Toplace administrators dVT have acknowledged they repossessed the vehicle and have since sold it to raise funds for creditors. Ms. Mattar, 36 - who has reverted to her maiden name in the wake of the scandal - still has use of Nassif's Range Rover but it too is in the sights of the administrators, Daily Mail Australia relays . They have offered to swap it for a cheaper vehicle but the administrators told creditors Ms. Mattar had rejected the compromise. Daily Mail Australia adds the administrators are also targeting the Mercedes Benz driven by Ashlyn Nassif, his daughter from a previous relationship. The luxury cars are some of the few assets left for the administrators to cash in on after an audit revealed much of the company's funds were shifted overseas prior to its collapse. According to Daily Mail Australia, administrators found the company had been trading while insolvent since 2020, and used the Bank of Beirut to transfer cash to Lebanon. Nassif sent AUD7 million overseas for Lebanese land deals and AUD10 million was sent to Nassif's Lebanese-based brother Bakhos Khazen Nassif. A further AUD1.28 million was also sent to a Nigerian warehouse company part-owned by Nassif. Unsecured creditors have been left AUD400 million out of pocket by the company's crash, with a further AUD20 million owed to statutory creditors. The company's assets are estimated at just AUD3.94 million. A Ford Mustang owned by the company was also sold off for AUD55,000 and a Land Rover is set to be sold shortly. Suelen McCallum and Antony Resnick of dVT Group were appointed as administrators of Toplace Pty Ltd on July 7, 2023. TOTAL WORKZ: First Creditors' Meeting Set for Feb. 14 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Total Workz Pty Ltd will be held on Feb. 14, 2024 at 10:30 a.m. at the offices of Dye Co Pty Ltd at 165 Camberwell Road in Hawthorn. Shane Leslie Deane and Nicholas Giasoumi of Dye & Co. were appointed as administrators of the company on Feb. 6, 2024. ========= C H I N A ========= CHINA SOUTH: Flags Potential Default on October 2024 Notes Payment ------------------------------------------------------------------ Reuters reports that property developer China South City said on Feb. 9 it is likely to default on the mandatory redemption payment due on Feb. 9 for its 9% Senior Notes due October 2024, citing depressed sales and cash flow. It also expects to default on the interest payment due on Feb. 12 for its 9% Senior Notes due April 2024, Reuters relates. ". . .(Such defaults) would have a significant material adverse effect on our business, operations and financial condition, including possibly insolvency or other forms of restructuring," the property developer said. Reuters adds that the company, which has been experiencing an increasing strain on its working capital amid China's property sector woes, said it is seeking financing and is working on generating sufficient cash flow to prevent the potential default. About China South City China South City Holdings Limited is principally engaged in property development. The Company operates its business through five segments. The Property Development segment is engaged in the development of integrated logistics and trade centers, residential and commercial ancillary facilities. The Property Investment segment is engaged in the investment in integrated logistics and trade centers, residential and commercial ancillary facilities. The Property Management segment is engaged in the management of the Company's developed properties. The E-commerce segment is engaged in the development, operations and maintenance of an E-commerce platform. The Others segment is engaged in the provision of advertising, exhibition, logistics and warehousing services, outlet operations and other services. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 24, 2022, Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer Default Rating (IDR) of China South City Holdings Limited (CSC) at 'B-'. The Outlook remains Negative. Fitch has also affirmed its senior unsecured ratings at 'B-', with a Recovery Rating of 'RR4'. The affirmations reflect Fitch's view that CSC has sufficient liquidity to address its US dollar bonds due February 2022, despite its consent solicitation announcement to extend the bonds' maturity. Fitch also believes an equity transaction agreement with Shenzhen SEZ Construction and Development Group Co Ltd (SZCDG), an enterprise wholly owned by the state under Shenzhen province's State-owned Assets Supervision and Administration Commission, is likely to improve its onshore funding access and funding cost. The Negative Outlook is due to the company's continued tight liquidity, with execution risks in terms of the timing of planned asset sales. SHINECO INC: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------- Shineco, Inc. disclosed in a Form 10-Q Report filed with the U.S. Securities and Exchange Commission for the quarterly period ended December 31, 2023 that its management believes there is substantial doubt about the Company's ability to continue as a going concern. In assessing the Company's going concern, management monitors and analyzes the Company's cash on-hand and its ability to generate sufficient revenue sources in the future to support its operating and capital expenditure commitments. The Company's liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Direct offering and debt financing have been utilized to finance the working capital requirements of the Company. In addition, the Company's shareholders made pledges to provide continuous financial support to the Company whenever the Company has liquidity difficulty for at least the next 12 months from the date of this filing. According to the Company, it had recurring net losses of US$8,569,226 and US$3,947,819, and continuing cash outflow of US$2,548,624 and US$1,841,660 from operating activities from continuing operations for the six months ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company had negative working capital of US$18,655,945. Management believes these factors raise substantial doubt about the Company's ability to continue as a going concern for the next 12 months. The Company incurred a net loss of US$5,056,103 for the three months ended December 31, 2023, an increase of US$2,283,592, or 82.37%, from a net loss of US$2,772,511 for the same period in 2022. For the six months ended December 31, 2023, the Company had a net income of US$286,021, an increase of US$5,500,852, or 105.48%, from a net loss of US$5,214,831 for the same period in 2022. Despite those negative financial trends, as of December 31, 2023, the Company had the following measurements which the management has taken to enhance the Company's liquidity: 1) On January 12, 2023, the Board of the Company approved the sales of 72,222 shares of the Company's common stock to the Company's employees for gross proceeds of up to US$650,000. As the date of this report, proceeds amounted to US$0.5 million has been received by the Company, and the remaining balance of the proceeds is expected to be fully collected by March 31, 2024. 2) On December 22, 2023, the Company entered into a securities purchase agreement (the "Purchase Agreement") with certain non-US investors (the "Investors"). Under the Purchase Agreement, the Company agreed to sell to the Investors up to 1,200,000 shares (the "Shares") of its common stock at a per share purchase price of $1.2 for gross proceeds of up to $1,440,000. The Company has received gross proceeds in full from the Investors, and all of the Shares were issued on December 28, 2023. 3) The Company financed from commercial banks and third parties. As of December 31, 2023, the Company had US$14.9 million in short-term loans outstanding and US$1.8 million in long-term loans outstanding. The management expects that the Company will be able to renew its existing bank loans upon their maturity based on past experience and its good credit history. Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity needs for the next 12 months. A full-text copy of the Report is available at http://tinyurl.com/yeyr4xmx About Shineco Beijing, China-based Shineco, Inc. was incorporated in the State of Delaware on August 20, 1997. The Company is a holding company whose primary purpose is to develop business opportunities in the People's Republic of China. ========= I N D I A ========= ADINATH AGRO: Ind-Ra Affirms BB+ Loan Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed the ratings on Adinath Agro Processed Foods Private Limited's (AAPFPL) bank facilities as follows: -- INR40.52 mil. (reduced from INR57.95 mil.) Term Loan due on March 2025 affirmed with IND BB+/Stable rating; and -- INR105 mil. Fund-based working capital limits affirmed with IND BB+/Stable/IND A4+ rating. Analytical approach: Ind-Ra continues to take a standalone view while arriving at AAPFPL's ratings. Key Rating Drivers The affirmation reflects AAPFPL's continued medium scale of operations with its revenue increasing to INR1,038.23 million in FY23 (FY22: INR823.77 million), led by an increase in its orders in the hotel, restaurant, café and hospitality segment. During 7MFY24, AAPFPL booked revenue of INR660 million. Ind-Ra expects AAPFPL's revenue to remain at the similar level in FY24, due to the similar nature of operations. The ratings reflect AAPFPL's modest EBITDA margins, which fell to 6.41% in FY23 (FY22: 7.46%), owing to an increase in the power, selling and promotional expenses. The return on capital employed increased to 7.2% in FY23 (FY22: 5.6%). Ind-Ra expects the EBITDA margins to remain stable in FY24. Liquidity Indicator – Stretched: AAPFPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. AAPFPL's working capital cycle deteriorated to 81 days in FY23 (FY22: 60 days), due to an increase in the inventory days to 94 (86). AAPFPL's average maximum utilization of the fund-based limits was 41.33% during the 12 months ended December 2023. The cash flow from operations reduced to INR64.08 million in FY23 (FY22: INR107.72 million), due to an increase in the EBITDA and a reduction in its interest expenses. Furthermore, the free cash flow also fell to INR34.08 million in FY23 (FY22: INR91.41 million). The cash and cash equivalents stood at INR95.23 million at FYE23 (FYE22: INR112.70 million). The company has repayment obligations of INR25 million in FY24 and INR15.5 million in FY25. AAPFPL's credit metrics improved in FY23 due to the increase in its operating EBTIDA to INR66.50 million (FY22: INR61.47 million), a fall in the debt levels, and the consequent drop in interest expenses. The gross interest coverage (operating EBITDA/gross interest expense) increased to 11.63x in FY23 (FY22: 6.32x) and the net financial leverage (adjusted net debt/operating EBITDA) reduced to 0.51x (0.69x). In FY24, Ind-Ra expects the credit metrics to remain stable, due to the absence of any capex plans. The ratings are also supported by over three decades of experience of the promoters in the food and beverage industry, leading to established relationships with its customers and suppliers. Rating Sensitivities Negative: Significant deterioration in the scale of operations, leading to deterioration in the liquidity profile and the credit metrics with the interest coverage falling below 2x, on a sustained basis, will be negative for the ratings. Positive: A significant increase in the scale of operations while maintaining the overall credit metrics and an improvement in the liquidity profile, on a sustained basis, will be positive for the ratings. Company Profile AAPFPL was incorporated in 1995 in Pune. It manufactures various food products, such as tomato ketchup and sauces, Chinese and continental sauces, fruit jams, canned food, pickles and noodles under the brand name of Surabhi, Magic King and Winn, primarily serving to the states in southern and central India. The company has an installed capacity of 31,000 metric tons. AGRA OIL: ICRA Keeps B+ Debt Rating in Not Cooperating Category --------------------------------------------------------------- ICRA has kept the Long-Term rating of Agra Oil & General Industries 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- 12.50 [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 Agra Oil & General Industries 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. AOGIL was incorporated in 1972 as a proprietorship firm and was later converted into a private limited company. It manufactures mustard oil and mustard cake at its unit in Agra, UP, which has a seed-crushing capacity of 32,000 metric tonne per annum (MTPA). It is also involved in the trading of mustard oil and cake. Along with manufacturing operations, the company is involved in trading of mustard oil and cake. In edible oil, all the company's sales are in the branded segment, named Krishna and Swastik. AOGIL is the flagship company of the Goyal Group, which encompasses various business such as mustard oil production as well as trading of cattle feed, packaging products, refrigeration of agro product, mushroom cultivation, manufacturing of soap noodles, allied chemicals and real estate development for around four decades. AMBAY FOODS: CRISIL Moves B+ Debt Ratings to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the rating on bank facilities of Ambay Foods & Rice Exporters (AFORE) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1.35 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with AFORE for obtaining information through letter and email dated December 28, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of AFORE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AFORE is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of AFORE to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in May 2021, company is engaged in the processing and manufacturing of basmati rice. The company started its commercial operations in October 2021. The factory is situated in Sangrur, Punjab and has a manufacturing capacity of 8 tonnes/hour. AMEYA PRECISION: CRISIL Lowers Rating on INR3.25cr Loan to B ------------------------------------------------------------ CRISIL Ratings has lowered the ratings on bank facilities of Ameya Precision Engineers Private Limited (APEPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.25 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Proposed Long Term 1.75 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with APEPL 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 APEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on APEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of APEPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Established in 1987 as a partnership firm and reconstituted as a private limited company in 2012, APEPL is promoted by Mr Shirish Madhukar Pande, Mr Nikhil Pande and Mr Bipin Pande. It manufactures pump and valve components such as shafts, flanges, hardfacing and overlays, and sub-assemblies parts at its facility in Pune, Maharashtra. ANDHRA PRADESH: ICRA Moves D Debt Rating in Not Cooperating ----------------------------------------------------------- ICRA has moved the ratings for the bank facilities of Andhra Pradesh Power Finance Corporation Limited (APPFCL) to the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Bond programme 4,053.30 [ICRA]D; ISSUER NOT COOPERATING; rating moved to the ISSUER NOT COOPERATING category 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 repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. ICRA takes notes of the dispute between Telangana State Power Finance Corporation (TSPFC) and APPFCL regarding the distribution of assets and liabilities, following the bifurcation of the erstwhile state of Andhra Pradesh (AP) in June 2014, which is the key reason for the continuing delays in debt servicing. APPFCL and TSPFC have been jointly servicing these bonds till now based on the current bifurcation of the liabilities between the two entities. The timely servicing of the instrument is likely to remain uncertain till the final resolution of the ongoing dispute between the two states. APPFCL was incorporated in July 2000 by the GoAP with the main objective of providing debt and equity funding to enterprises engaged in the power sector in the state. It is registered as a non-banking financial company with the Reserve Bank of India. APPFCL reported a profit after tax (PAT) of Rs. 99.1 crore (provisional) in H1 FY2024 on a loan book of Rs. 13,388.5 crore as on September 30, 2023. Status of non-cooperation with previous CRA: Brickwork Ratings (BWR) had taken up with the company through emails and telephone calls to provide financial and operational information for the periodic monitoring and surveillance of the ratings. Despite the best efforts of BWR to get the required information for a review, the company had not shared all the requisite information. Hence, based on extant regulatory guidelines, non-cooperation by the company, and the best available information, BWR has migrated the ratings the ISSUER NOT COOPERATING* category. *Issuer did not cooperate; based on best available information, published in the AXORA RESOURCES: ICRA Lowers Rating on INR50cr LT Loan to B+ ------------------------------------------------------------ ICRA has revised the ratings on certain bank facilities of Axora Resources Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 50.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating downgraded Cash Credit from [ICRA]BB+(Stable) and Rating moved to 'Issuer Not Cooperating' Category Short Term– 13.00 [ICRA]A4 ISSUER NOT Non-Fund Based– COOPERATING; Rating downgraded Letter of Credit from [ICRA]A4+ and Rating moved to 'Issuer Not Cooperating' Category Long Term/Short 27.00 [ICRA]B+(Stable)/[ICRA]A4 Term–Unallocated ISSUER NOT COOPERATING; Ratings downgraded from [ICRA]BB+(Stable)/[ICRA]A4+ and Ratings moved to 'Issuer Not Cooperating' Category Rationale The ratings have been downgraded and moved to the "Issuer Not Cooperating" category because of lack of adequate information regarding Axora Resources Limited's performance and hence the uncertainty around its credit risk. ICRA assesses whether the information available about the entity is commensurate with its rating and reviews the same as per its "Policy in respect of non-cooperation by a rated entity" available at www.icra.in. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. As part of its process and in accordance with its rating agreement with Axora Resources Limited, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information. Founded in 1994, Axora Resources Limited specialises in processing of lead, tin, antimony and other non-ferrous metals. It started its operations in FY2020 and has a manufacturing plant in Chittoor, Andhra Pradesh. The company is promoted by Mr. Vijendra Kedia, a commerce graduate having more than 25 years of experience in the non-ferrous metals Industry. BABA BAIDYANATH: Ind-Ra Gives B Bank Loan Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Baba Baidyanath Medical Trust's (BBMT) bank loans as follows: -- INR880 mil. Bank loans assigned with IND B/Stable rating; and -- INR105 mil. Non-fund-based working capital facilities (bank guarantee) assigned with IND B/Stable/IND A4 rating. Analytical Approach: Ind-Ra has taken a standalone view on BBMT for the rating purpose while factoring in the availability of timely financial support from the trustees to meet its debt obligations. Key Rating Drivers The rating reflects BBMT's lack of operational track record since it was formed in November 2023. The trust purchased a non-operational medical college and a 500-bed multi-specialty hospital in Deogarh, Jharkhand in December 2023, through an auction for INR600 million. The trust has sanctioned term loans of INR880 million, of which INR450 million was availed as of mid-January 2024. BBMT will renovate the hospital, which will become operational from FY26. The trust will also commence operations at its medical college – Baidyanath Medical College and Research Centre - in FY26. Ind-Ra believes the receipt of approval for starting the medical college will be a key rating monitorable. Liquidity Indicator - Stretched: Ind-Ra expects BBMT's liquidity profile to be stretched in FY24-FY25 due to absence of operations and nil income as of December 2023. The trustees provided INR150 million as corpus funds in December 2023. The trust's interest payments are likely to be about INR7 million and INR75 million in FY24 and FY25, respectively. However, principal repayments will commence from January 2026. Ind-Ra believes the trust is likely to rely on financial support from the trustees, either in the form of corpus funds or unsecured loans, to meet its debt service commitments during FY24-FY25. A timely financial support from the trustees will be a key monitorable. The total project cost estimated at INR1,316.70 million will be funded through a mix of internal accruals (33%) and debt (67%). The trust's capex will be towards upgradation, renovation and modernization of building, and infrastructure of college and hospital. Further, the trust plans to increase the hospital bed capacity to 605 by FY26. The rating is also constrained by a likely high debt in FY24 and the absence of EBITDA. Ind-Ra believes the trust's debt service commitments are likely to be high in FY26 due to the large debt. Ind-Ra also believes a weak operational performance would result in a weak interest coverage ratio in FY26. Since FY26 will be initial year of operations of the medical college, the operational cost is likely to be high. However, the rating is supported by the continued high demand of medical courses, which Ind-Ra expects will help BBMT establish a regionally favorable market position for the upcoming medical college and hospital. The rating also benefits from the presence of financial support from the trustees to meet the debt service commitments during FY24-FY25. Rating Sensitivities Positive: The timely commencement of medical college and hospital, and generation of adequate cash flows to meet the debt service commitments and operational expenditure will be positive for the ratings. Negative: A delay in commencement of medical college and hospital, and inadequate cash flows and /or a lack of financial support from the trustees to meet the debt service commitments in a timely manner will be negative for the ratings. Company Profile BBMT was established as a trust in November 2023. BBMT will manage a college - Baidyanath Medical College and Research Centre in Deoghar, Jharkhand, which is likely to commence operations from FY26. The trust will also have a 605-bed multi-specialty hospital, which will be fully operational from April 2025. BIRBHUM CHEMICALS: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Birbhum Chemicals and Fertilisers Limited Holding No. 408 O.B. Ward No. 6, Pallishree, Arambagh, Hooghly, West Bengal, India 712601 Insolvency Commencement Date: January 8, 2024 Estimated date of closure of insolvency resolution process: July 6, 2024 Court: National Company Law Tribunal, Kolkata Bench Insolvency Professional: Avishek Gupta CK-104, Sector 2, Salt Lake Kolkata West Bengal-700091 E-mail: avishek@optimusresolution.net E-mail: cirp.bcfl@gmail.com Last date for submission of claims: January 22, 2024 BRISTOL TOURIST: CRISIL Withdraws D Rating on INR35cr Term Loan --------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Bristol Tourist Complex (BTC) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 15 CRISIL D/Issuer Not Cooperating (Withdrawn) Term Loan 35 CRISIL D/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with BTC for obtaining information through letters and emails dated December 24, 2022 and February 17, 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 BTC. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on BTC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, CRISIL Ratings has continued the rating on the bank facilities of BTC to 'CRISIL D Issuer not cooperating'. BTC was set up by Mr Gurpreet Singh and his mother, Ms Sharanjit Kaur. The firm operates a five-star hotel in Zirakpur, a satellite town near Chandigarh. BTC has tied up with Park Plaza to manage its hotel. CHOICE HATCHERY: CRISIL Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Choice Hatchery Private Limited (CHPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.05 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Fund- 1.45 CRISIL B+/Stable (Issuer Not Based Bank Limits Cooperating) Term Loan 12.00 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CHPL for obtaining information through letter and email dated January 16, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative and the ratings on bank facilities of CHPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. The entity did not provide the No Default Statements (NDS) for the last three months. Therefore, the issuer is being classified as 'non cooperative' in line with Clause 11. 3 of SEBI Master circular dated July 03, 2023. 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 CHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CHPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. CHPL was incorporated in 2018, by the promoter Mr Vinay Deswal. The company is engaged in the business of poultry breeding and hatching. It has day old chick breeder farms at Bemetra district of Chhattisgarh. DEEPAK FASTENERS: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Deepak Fasteners Limited (DFL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING) Short Term Rating - CRISIL D (ISSUER NOT COOPERATING) Non Convertible Debentures 390 CRISIL D (ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with DFL 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 DFL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DFL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DFL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of DFL and its wholly owned subsidiaries: Deepak Fasteners (Shannon) Ltd (DFSL), Deepak Fasteners Australia Pty Ltd (DFA), and Deepak Fasteners (UK) Ltd (DFUK). All the entities, collectively referred to as Deepak Fasteners, are in the same business, and have significant operational and financial linkages. DFL has provided corporate guarantee for the debt of overseas subsidiaries. CRISIL has moderately integrated the business and financial risk profiles of Deepak Fasteners' associate company, Shree Ganesh Jewellers Ltd (SGJL), which manufactures and trades in gold and diamond jewellery, as DFL has provided corporate guarantee for SGJL's debt and will extend support to SGJL, if required. DFL, incorporated in 1958 and promoted by Mr Kailash Kalra, has consolidated finishing capacity of 70,000 tonne per annum (tpa) of fasteners at its facilities in Punjab, Himachal Pradesh, and Madhya Pradesh. In fiscal 2009, DFL acquired the Unbrako brand from Precision Castparts Corp (PCC), along with its intellectual property rights, manufacturing facilities in Ireland, and workforce and distribution network. In fiscal 2011, Banyan Tree Growth Capital LLC and DEG-Deutsche infused Rs 70 crore into DFL in the form of zero-coupon compulsorily convertible bonds for a 13% equity stake (post conversion into equity). In fiscal 2014, DFL commissioned a plant, with finishing capacity of 28,500 tpa, near Bhopal. DFUK and DFA commenced commercial operations in fiscals 2008 and 2009, respectively, and are the distribution arms. DFSL, incorporated in fiscal 2009 after DFL acquired the Unbrako fastener business from PCC, has a manufacturing and research facility in Shannon, Ireland. DEEPTHY FENISHERS: ICRA Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- ICRA has kept the Long-term rating for the bank facilities of Deepthy Fenishers 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 Term Loan to remain under 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with Deepthy Fenishers, 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. Deepthy Fenishers is a partnership firm established in 1997 and is providing fabric processing services on job-work basis. The firm is located in Tirupur (Tamil Nadu) with capabilities for tubular and open width compacting. The firm was promoted by Mr. Subramaniam and currently has four partners. Mr. Subramaniam is the managing partner of the firm having experience of more than a decade in the textile industry. The firm caters to garment manufacturers located in and around Tirupur providing fabric processing services. ESSEL LUCKNOW: Ind-Ra Cuts NonConvertible Debts Rating to BB+ ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Essel Lucknow Raebareli Toll Roads Limited's (ELRTRL) non-convertible debentures (NCDs) to 'IND BB+' from 'IND BBB-'. The Outlook is Negative. The detailed rating action is: -- INR2.889 bil. (reduced from INR3.381 bil.) NCDs* downgraded with IND BB+/Negative rating. * Details in annexure Analytical Approach: Ind-Ra continues to take a standalone view of ELRTRL to arrive at the rating. The downgrade and Negative Outlook reflect the resumption of deduction in annuities impacting ELRTRL's revenue visibility, weakening liquidity increasing the risk associated with replenishment of the debt service reserve account (DSRA) to the stipulated level of INR500 million by May 2024 and a risk of step up in interest rate, which, if implemented, would impact the company's debt serviceability as the existing coverages are around unity. Furthermore, the lenders have the option of a mandatory prepayment if the rating is downgraded below 'AA' category. If the lenders were to exercise the rights, the company might not have adequate liquidity for the prepayment immediately. Ind-Ra will continue to monitor any updates on the same. While the rating is supported by the presence of a strong counterparty, National Highways Authority of India (NHAI; 'IND AAA'/Stable) the timely receipt of annuities without performance-related deductions and the maintenance of the project stretch would continue to be key rating monitorable. Key Rating Drivers Liquidity Indicator - Stretched: As of December 31, 2023, the company's overall liquidity totaled INR427.8 million, including a DSRA of INR410.6 million. The major maintenance activity on the project stretch was completed during FY22 with a cost overrun of INR33.7 million, thereby leading to a higher-than-initially envisaged shortfall amount of INR60 million, which was funded by utilizing the DSRA. The DSRA was to be replenished to INR400 million by November 2023 and INR500 million by May 2024. However, the resumption of deductions in the annuity would impact the company's already stretched liquidity position; thus, Ind-Ra believes ELRTRL will be unable to replenish the DSRA to the stipulated levels by May 2024. Furthermore, the debenture trustee deed stipulates maintenance of a minimum debt service coverage ratio of 1.05x. Any increase in the quantum of deductions in the annuities would affect the DSCR. As per the debt terms, there will be no upstreaming of surplus cash until the DSRA is replenished to the stipulated levels. Thus, the timely replenishment of the DSRA to the stipulated levels would be a key rating monitorable. Heightened Operations and Maintenance (O&M) Risk: The major maintenance activity on the project stretch has been completed and the overall road quality, as per the November 2023 independent engineer's (IE) report, is satisfactory. The report further instructed ELRTRL to appoint technical professionals at the project site to undertake the regular monitoring and maintenance at the project stretch. The IE, in its monthly progress report, has been highlighting some rectification works on the project site, which has been undertaken by the company, albeit with minor delays, thereby leading to performance-related deduction. Given the frail financial profile of the sponsor and ELRTRL's stretched liquidity position, the timely maintenance of the project stretch is key for receiving annuities without performance-related deduction and would be a key rating monitorable. Heightened Risk of Step Up in Interest Rate: The agency understands that the new NCD holders, holding about 66.97% of the outstanding NCDs, have requested for step-up in line with the terms of the debenture trust deed. As per the management, an approval from 75% of the NCD holders was required for any change in interest rates. Since the proposal did not garner the required approval, the interest rate was not stepped up. The current interest rate on NCDs is 9.30% as per the management. Any increase in the interest rate would adversely impact the debt serviceability and would remain a key rating monitorable. Residual Construction Risk: The project had residual construction works, which were to be executed upon the land being made available by the NHAI. The authority revised the scope of the project in January 2023and removed the pending works and non-adherence to the schedule B from the scope of the concession agreement. Thus, the total negative change of scope was INR88.5 million, which was deducted from the 16th annuity. Further, the company has claimed a positive change of the scope of work totaling INR67.8 million, however, the same has not been considered by the IE in its recommendation to the authority. Further, the November 2023 IE report highlighted pending construction work, which the management, during the discussion with the agency, represented that the said pending works have been covered under the negative change of scope and the authority has already deducted INR85.5 million towards the same. Hence, the completion of the balance works undertaken, withholding of the annuity payments towards negative change of scope and the disallowance of the positive change of the scope would continue to add pressure on the already stretched liquidity position of ELRTL, and would remain a key rating monitorable. Timely Annuity Payments Albeit with Deductions: The special purpose vehicle received the 17th annuity with a performance deduction of INR29.97 million and the IE, in its recommendation, recommended a deduction of INR18.4 million for the 18th annuity. Of these, INR8.5 million is towards damages for non-maintenance of the project highway and the balance towards damages for expenses incurred by the NHAI. Given the weak financial profile of the sponsor and the stretched liquidity position of ELRTRL, failure to adhere to the concession agreement standards in road maintenance could lead to a deduction in the annuity, resulting in a further stress on the project that cannot be completely eliminated. Thus, the visibility of funding maintenance obligations till the debt tenor ending in September 2028 is a key rating factor. Moderate Debt Structure: The repayment follows a T+30 structure, i.e. the debt obligations are due 30 days post the receipt of annuities, giving the project some cushion against any delays in annuities. The distribution of surplus cash is possible only when the cash accumulation equals the outstanding commitment of the bonds. Rating Sensitivities Positive: Future developments that may, individually or collectively, lead to a positive rating action are: - an established track record of nil performance deductions and the replenishment of the DSRA to the stipulated level of INR500 million from project cash flows; - sustained maintenance of the project stretches as per the stipulated standards. Negative: Future developments that may, individually or collectively, lead to a negative rating action are: - higher-than-estimated O&M expenses and deficiencies in the maintenance of road, leading to performance deductions in the annuities; - the prepayment of debentures being triggered or step up of interest rates; - a further depletion of the stipulated liquidity reserves due to cost overruns or deductions in annuities. Company Profile ELRTRL is a special purpose vehicle that was formed by Essel Infraprojects Limited to expand the 70km Lucknow-Raebareli section of National Highway 24B to four lanes. The project was awarded to the company by the NHAI under a competitive bidding process on a design, build, finance, operate and transfer basis. The project commenced provisional commercial operations on January 16, 2015 and the final commercial operations on April 14, 2015. GITANJALI GEMS: Bankruptcy Court Enters Liquidation Order --------------------------------------------------------- The Economic Times reports that the Mumbai bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of fugitive diamantaire Mehul Choksi-promoted firm Gitanjali Gems. The tribunal has also appointed Santanu T Ray as the liquidator. ET says the company was originally admitted under the Corporate Insolvency Resolution Process (CIRP) in October 2018. It has admitted liabilities of over INR12,558 crore. "The CoC (committee of creditors) with requisite voting . . . has approved the liquidation of the corporate debtor in view of bleak chances of receiving any resolution plan," the division bench of judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan said in its order of February 7. "This tribunal has very limited powers of judicial review in such matters of commercial wisdom." This is the second Mehul Choksi-promoted company to be admitted under liquidation, ET notes. In July 2021, the tribunal ordered the liquidation of Nakshatra World, a subsidiary of Gitanjali Gems. Before the order, the company's resolution professional (RP) Vijay Kumar Garg had informed the tribunal that on account of the alleged fraud perpetrated by the company and its officers, its affairs are subject to probe by multiple law enforcement agencies such as the Central Bureau of Investigation and the Enforcement Directorate, ET adds. Gitanjali Gems Limited engages in the business of manufacturing, trading, importing, and exporting diamond cutting and polishing, diamond studded jewelry, and plain gold jewelry in India, the United States, the United Kingdom, Belgium, Italy, Singapore, Japan, the Middle East, and China. GNPAL SPECIALITY: CRISIL Assigns B+ Rating to INR15cr Loan ---------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of GNPAL Speciality Molecules LLP (GNPALSM). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.25 CRISIL B+/Stable (Assigned) Drop Line Overdraft Facility 15 CRISIL B+/Stable (Assigned) Proposed Cash Credit Limit 6.75 CRISIL B+/Stable (Assigned) Term Loan 25 CRISIL B+/Stable (Assigned) The rating reflects the likelihood of a leveraged capital structure and exposure to risks stemming from the nascent stage of operations, fluctuations in raw material prices, intense competition and any adverse change in regulations. These weaknesses are partially offset by the extensive experience of the promoters in the diversified line of businesses and adoption of latest machinery in the pharmaceuticals industry. Key Rating Drivers & Detailed Description Weaknesses: * Susceptibility to risks posed by the nascent stage of operations and the ongoing project: The new plant set up by GNPALSM is likely to commence production from January 2024. Demand risk is expected to be moderate, amid low entry barriers. Successful stabilisation of operations and timely scale up at the new unit are key rating sensitivity factors. * Likelihood of a leveraged capital structure: Financial risk profile is likely to be marked by high gearing and moderate debt protection metrics in the initial stage of operations of the firm. The project has been aggressively funded through a debt-equity ratio of around 3.3 times. * Susceptibility to fluctuations in raw material prices, intense competition, and regulatory risks: Presence of numerous domestic as well as global players makes the bulk drugs industry highly competitive and exerts pricing pressure on individual entities. This restricts scalability and bargaining power with customers and suppliers. Hence, the firm needs to remain cost competitive to maintain its operating margin. Strengths: * Extensive experience of the promoters: Although the promoters do not have any prior experience in the pharmaceutical industry, they have been engaged in diversified businesses such as real estate, auto dealership, jewelry etc, for over two decades. They have successfully ventured into different lines of businesses and have been successful in commercialising projects. The plant construction was completed two months prior to the deadline set for March 2024. The firm has already tied up with different customers and has also started receiving orders. * Adoption of latest machinery in the pharmaceuticals industry: GNPALSM has completed the construction of its plant and has installed a unit with the latest equipment and technology. Therefore, the adoption of the latest machinery in the pharmaceuticals industry would support its business profile. Liquidity: Stretched Liquidity is marked by sufficient cash accrual and moderate bank limit utilisation. Expected cash accrual of Rs 2.8-5.0 crore should suffice to cover the term debt obligation of Rs 2.5 crore in the medium term. Bank limit utilisation averaged around 86.06% for the three months ended November 30, 2023. The promoters are likely to extend support via equity and unsecured loans to cover the working capital requirement and debt obligation. Outlook: Stable CRISIL Ratings believes GNPALSM will benefit from the extensive experience of its partners in diversified lines of business. Rating Sensitivity Factors Upward factors * Timely stabilisation of operations at the proposed plant, leading to revenue of over Rs 50 crore * Healthy debt protection metrics Downward factors * Considerable delay in stabilisation of operations * Significantly low cash accrual in the initial phase of operations of less than Rs.2 crores Substantial increase in working capital requirement, straining the financial risk profile and liquidity GNPALSM was incorporated as a limited liability partnership in 2021. The firm is currently setting up a plant to manufacture active pharmaceutical ingredients (APIs) at Sitarganj, District Udhham Singh Nagar, Uttarakhand, with an installed capacity of 250 MTA. The plant is expected to commence operations in January 2024. Mr. Gopal Singh Pal, Mr. Ojaswa Pal, Pal Infra Heights Pvt Ltd (Mrs Neha Pal) and Mr. Tanishq Pal are the partners. HBS AUTO: Insolvency Resolution Process Case Summary ---------------------------------------------------- Debtor: HBS Auto and ANC SEZ Private Limited 505, Ceejay House, Dr. Annie Beasant Road, Worli, Mumbai-400018 Insolvency Commencement Date: January 2, 2024 Estimated date of closure of insolvency resolution process: July 4, 2024 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Avanish Ambikaprasad Shukla Level 3, Padma Palace, Plot No.79, Sector 28, Navi, Mumbai-400703 E-mail: avinashshukla1708@gmail.com 1221, Maker Chamber V, Nariman Point, Mumbai -400021 E-mail: rp.haaspl@gmail.com Last date for submission of claims: January 20, 2024 HH IRON: Ind-Ra Assigns BB Loan Rating, Outlook Stable ------------------------------------------------------ India Ratings and Research (Ind-Ra) has rated HH Iron and Steel Private Limited's (HHISPL) bank facilities as follows: -- INR750 mil. Fund-based working capital limits assigned with IND BB/Stable/IND A4+ rating; and -- INR80 mil. Term loan due on March 2028 assigned with IND BB/ rating. Analytical Approach: The agency has taken a standalone view of HHISPL while assigning the rating. Key Rating Drivers Modest EBITDA Margins, Susceptible to Price Risk: HHISPL's EBITDA margins remained weak given the trading nature of its operations. Its EBITDA margin stood at 1.4%-2.2% over FY20-FY23, with its margins declining to 1.83% in FY23 (FY22: 2.25%), due to higher input costs. The company's margins remain exposed to price risks on account of a decline in steel prices as the company does not hedge its inventory risk. Given the historical trend, the agency expects the EBITDA margins of the steel trading division to remain in the similar range in the near- to medium term. However, Ind-Ra expects HHISPL's overall margins to rise slightly in FY24 and in the medium term, helped by the incremental EBITDA from the sale of solar energy, following the installation of a 4MW solar plant in FY23. The solar energy business is likely to earn significantly higher EBITDA margin of 75%-80%, as per the industry average. Liquidity Indicator - Stretched: The cash flow from operations turned positive to INR114 million in FY23 (FY22: negative INR26.52 million), driven by the release of working capital on account of a decline in its net working capital cycle to 48 days (77) following the normalization of the inventory days to 52 (94). As a result, its creditor days also reduced to 8 days in FY23 (FY22: 21). The free cash flow from operations remained negative INR82.14 million in FY23 (FY22: negative INR32.29 million) as the company incurred a capex of INR223.18 million for installing its solar power plant. HHISPL had unencumbered cash and cash equivalents of INR3.19 million at FYE23 (FYE22: INR0.30 million). The average maximum utilization of the fund-based working capital limits for the 12 months ended December 2023 was 80.69%. Ind-Ra expects the utilization to be at the similar level in the near term. The current ratio was at 1.3x for FY21-FY23. The company has repayment obligations of INR53.9 million and INR67.80 million in FY24 and FY25, respectively, which would be met through its internal accruals. Weak Credit Metrics; likely to Improve in Medium Term: HHISPL's gross interest coverage (operating EBITDAR/gross interest expense) increased to 2.0x in FY23 (FY22:1.89x) and the net financial leverage (Ind-Ra-adjusted net debt /operating EBITDAR) reduced to 7.7x (8.9x), on account of an increase in its absolute EBITDA to INR114.35 million (INR88.72 million). The company's overall debt increased to INR823.99 million in FY23 (FY22: INR785.61 million) as the company raised working capital term loans. Ind-Ra expects the credit metrics to improve slightly in the near- to medium term, on account of scheduled repayments of its term debt and an improvement in its EBITDA margins. Medium Scale of Operations; likely to Remain Stable: HHISPL's revenue increased 58% to INR6,237.42 million in FY23 (FY22: INR3,947.18 million), led by an increase in its sales volume and higher realization per unit in 1HFY23. The increase in sales volume was due to higher supplies from JSW Steel Limited (JSWL; 'IND AA'/Stable) over 2HFY23. Ind-Ra expects HHISPL's revenue to decline slightly in the near term, on account of a correction in steel prices, but gradually improve in the medium term, in line with industry trend. Furthermore, during FY24, HHISPL started generating revenue from the supply of solar energy to private companies in Tamil Nadu. Although the company has not signed any power purchase agreement with the customers, the management stated that it would enter into PPAs in FY25. This provides a revenue visibility from the solar power supply in the near to medium term. Authorized Distributorship with Long Track Record of Operations: The management has engaged in the steel trading business for more than six decades, leading to established relationship with suppliers and customers in the industry. HHISPL is an authorized distributer of JSWL and JSW Steel Coated Limited in three districts of Tamil Nadu. The company sells directly to corporates in Tamil Nadu, and benefits from a diversified customer base. HHISPL benefits from the brand value of JSW Steel. The company being the sole distributor in the three districts, no other player can supply products of JSW in those areas. Rating Sensitivities Negative: A substantial deterioration in the scale of operations or the profitability, further deterioration in liquidity, or further weakening of the credit metrics with net leverage remaining above 7x; all on a sustained basis, will lead to a negative rating action. Positive: A substantial increase in the scale of operations with an increase in the profitability, substantial improvement in the liquidity profile and an improvement in the credit metrics, with the net leverage falling below 5.5x; all on a sustained basis, will be positive for the ratings. Company Profile HHISPL is an authorized distributor for JSWL and JSW Steel Coated Products Limited in three districts of Tamil Nadu, namely Coimbatore, Erode, and Nilgiris, for the trading of steel products. HHISPL also has a solar plant with an installed capacity of 4MW in FY23. HHISPL was incorporated on 6 April 2018 in Coimbatore, Tamil Nadu, and is a part of the Hindustan group, a family concern, and includes other entities viz., Hindustan Hardware, Hindustan Steel Corporation and Hindustan Textiles. HIRANMAYE ENERGY: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: HIRANMAYE ENERGY LIMITED (formerly known as India Power Corporation (Haldia) Limited Plot X, 1, 2 & 3, 2nd Floor, Block EP, Sector V, Salt Lake, Kolkata- 700091 Insolvency Commencement Date: January 2, 2024 Estimated date of closure of insolvency resolution process: June 30, 2024 Court: National Company Law Tribunal, Kolkata Bench Insolvency Professional: Bhuvan Madan A-103, Ashok Vihar Phase - 3, New Delhi 110052 E-mail: madan.bhuvan@gmail.com CGH 212-213 DLF Capital Green, Shivaji Marg, Delhi-110015 E-mail: claims.hiranmaye@gmail.com Last date for submission of claims: January 17, 2024 JAYMALA INFRA: ICRA Lowers Rating on INR27cr Term Loan to B ----------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Jaymala Infrastructure Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 27.00 [ICRA]B (Stable) ISSUER NOT Fund-based- COOPERATING; Rating downgraded Term loan from [ICRA]B+ (Stable)and continues to remain in the 'Issuer Not Cooperating' Category Rationale The rating downgrade is attributable to the lack of adequate information regarding Jaymala Infrastructure Private Limited performance and hence the uncertainty around its credit risk. ICRA assesses whether the information available about the entity is commensurate with its rating and reviews the same as per its "Policy in respect of non-cooperation by a rated entity" available at www.icra.in. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating, as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade." As part of its process and in accordance with its rating agreement with Jaymala Infrastructure Private Limited, ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Jaymala Infrastructure Private Limited ('JIPL', 'The Company') was incorporated in 2010 in order to undertake activities in hospitality (hotel chain facility) and renting of immovable properties. JIPL owns a land area at Chakan MIDC in Pune where the company has developed 1,22,112 sq ft of production facility and had let out the same to Benteler Automotive India Private Limited. Also, the company is setting up a 150-room 4-star category hotel in Navi Mumbai. While JIPL would develop the hotel, it will be operated through management agreement with Marriott Hotels (India) Private Limited which is a leading global hospitality chain. JUNGLE HOMES: ICRA Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has kept the Long-Term ratings of Jungle Homes Holidays Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 10.00 [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 Jungle Homes Holidays 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. JHHPL was incorporated in 2008 and started its operation of a five-star resort named The Tigress Ranthambore from April 2015. It is promoted by Mr. Saumitra Singh and his wife Mrs. Himanshi Singh. It is located in Sawai Madhopur, Rajasthan. The heritage property is located near the Ranthambore National Park and offers two types of rooms – Royal Luxury Suites and Royal Luxury Villas. Built on 300,000 square feet, the resort has a build-up area of 100,000 square feet with amenities like spa, swimming pool, gymnasium, banquet hall, garden area, parking space, two restaurant-cum-bar and a roof-top barbecue. JYOTSNA GREEN: Ind-Ra Withdraws BB Term Loan Rating --------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Jyotsna Green Products Private Limited's (JGPPL) term loan rating as follows: -- The IND BB/Stable rating on the INR1.520 bil. Term loan due on September 2032 id withdrawn. Key Rating Drivers Ind-Ra is no longer required to maintain the rating, as the agency has received a no-dues certificate from the lender of the term loan. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for JGPPL. Company Profile Incorporated in July 2021, JGPPL had proposed to set up a distillery to produce 150 kilo liters per day of ethanol (absolute alcohol). The company had no operations at that time and was in the beginning stages of construction of facility. The project was expected to begin commercial operations by April 2024. It has a registered office in Raipur. KARVY DATA: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Karvy Data Management Services Limited (KDMSL; part of the KDMSL group) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING) Short Term Rating - CRISIL D (ISSUER NOT COOPERATING) Non Convertible 22 CRISIL D (ISSUER NOT Debentures COOPERATING) CRISIL Ratings has been consistently following up with KDMSL 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 KDMSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KDMSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KDMSL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. KDMSL, incorporated in 2008, is a Hyderabad-based step-down subsidiary of KSBL. KDMSL provides business and knowledge process services; it started off as a pure-play back-office service provider and added other verticals such as e-governance, banking, telecom, and e-commerce. The company is an established player in government mandates such as UIDAI's Aadhar, PAN card, NPR Biometric, and E-TDS. It has established working relationships with several key government departments and enjoys strong support from KSBL. KSBL is a part of the Hyderabad-based Karvy group of companies. The key promoters of the group are Mr C Parthasarathy, Mr M S Ramakrishna, and Mr M Yugandhar. KSBL undertakes equity broking, depository operations, and distribution of financial products; and provides advisory services and wealth management. LAKHOTIA TRANSPORT: Ind-Ra Moves BB Loan Rating to NonCooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Lakhotia Transport Co. Pvt Ltd.'s (LTCPL) bank facilities to the non-cooperating category and has simultaneously withdrawn it. The detailed rating action is: -- INR370 mil. Fund-based facilities* migrated to non-cooperating category and withdrawn. *Migrated to 'IND BB/Stable (ISSUER NOT COOPERATING)' before being withdrawn Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based on the best available information. Key Rating Drivers Ind-Ra has migrated the ratings in the non-cooperating category because the issuer did not participate in the rating exercise, despite requests by the agency through emails and phone calls, and has not provided information about interim, sanctioned bank facilities and utilization, business plan, and projections for next three years, information on corporate governance, and management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate and no dues certificate from respective lender. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for the company. Company Profile LTCPL was incorporated in 1962 and was converted into a private limited company in 2001. The company provides logistics solutions through road for various entities. LTCPL has 30 branches across the country. Its head office is in Kolkata. M/S SITA: Ind-Ra Affirms B+ Bank Loan Rating, Outlook Stable ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed M/S Sita Masalas' (SM) bank loan ratings as follows: -- INR20 mil. Fund-based working capital limits affirmed with IND B+/Stable/IND A4 rating; and -- INR60 mil. Pledge Loan affirmed with IND A4 rating. Analytical Approach: Ind-Ra continues to take a standalone view of SM to review the ratings. Key Rating Drivers The affirmation reflects SM's continued small scale of operations with its revenue declining to INR173.67 million in FY23 (FY22: INR189.75 million), due to its conversion into a partnership firm from proprietorship, which caused a temporary halt in trade. For 8MFY24, SM booked a revenue of INR259.9 million. SM's two group entities, Swastik Mirch Store and Fore Agro Pvt Ltd, accounted for more than 90% of its sales in FY23. Ind-Ra expects the revenue to increase yoy in FY24 based on the year-to-date numbers and the unexecuted orderbook. Liquidity Indicator - Stretched: The average maximum utilization of the fund-based limits was 64.5% during the 12 months ended December 2023. The net working capital cycle remained elongated at 145 days in FY23 (FY22: 144 days), mainly due to continued high and increased inventory days of 183 (139), due to the bulk purchase of raw material (red chilies) during the harvesting season and supplying it as and when the orders were received. The cash flow from operations turned positive at INR22.49 million in FY23 (FY22: negative INR16.19 million). SM's cash and cash equivalents at FYE23 were INR25.12 million (FYE22: INR0.63 million). Furthermore, the company does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. SM does not have any long-term debt. The ratings reflect SM's modest credit metrics even as its gross interest coverage (operating EBITDA/gross interest expense) improved to 4.17x in FY23 (FY22: 2.7x), due to a decline in the interest expenses to INR3.48 million (INR5.05 million), and its net leverage (adjusted net debt/operating EBITDAR) reduced to 2.67x (6.6x), due an decrease in the total adjusted debt to INR63.84 million (INR89.29 million). Ind-Ra expects the credit metrics to remain largely unchanged in FY24 amid the absence of any major debt-led capex. The ratings are supported by an improvement in SM's healthy EBITDA margins to 8.3% in FY23 (FY22: 7.13%) with the return on capital employed of 15.8% (14.2%). SM's EBITDA margins improved in FY23, due to a decrease in the prices of red chilies. For 8MFY24, SM earned an EBITDA margin of 7.2%. However, Ind-Ra expects the margins to reduce slightly yoy in FY24 due to the increasing red chili prices. The ratings remain supported by the proprietors' over a decade of experience in the industry and SM's established relationships with suppliers. Rating Sensitivities Positive: An increase in the scale of operations, along with an improvement in the overall credit metrics and the liquidity profile, all on a sustained basis, could lead to a positive rating action. Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics and the liquidity profile, all on a sustained basis, could lead to a negative rating action. Company Profile SM is a Telangana-based partnership firm. The firm was established in 1976 as a proprietorship and promoted by Vijay Kumar Shah and is a part of the Swastik Group. Vijay Kumar Shah is also the managing partner in Swastik Mirchi Stores. SM is engaged in wholesale trading of chili, mainly to its group companies. The company was converted into a partnership firm in January 2023. NAVAYUGA INFRA: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Navayuga Infra Projects Private Limited H.No.8-2-293/82/A/379 & 379/A, 1st Floor Plot No. 379, Road No.10, Jubilee Hills, Hyderabad, Telangana, India, 500 033 Insolvency Commencement Date: January 10, 2024 Estimated date of closure of insolvency resolution process: July 8, 2024 Court: National Company Law Tribunal, Hyderabad Bench Insolvency Professional: CA Sri Vamsi Kambhammettu Plot No. A85, Flat Dx4, Sri Varasiddhi Nivas, Level 2, Road No.11, Film Nagar, Jubilee Hills, Hyderabad-500 033 E-mail: casrivamsi@gmail.com Plot No. 645, Unit #A3, 1st Floor, Vaishnavi@36, Road No. 36, Jubilee Hills, Hyderabad-500 033 E-mail: ip.navayugainfra@gmail.com Last date for submission of claims: January 25, 2024 NEO POWER: Ind-Ra Assigns B+ Bank Loan Rating, Outlook Stable ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Neo Power Electronics and Projects Private Limited's (NPEPPL) bank facilities as follows: -- INR40.00 mil. Fund-based limit assigned with IND B+/Stable/IND A4 rating; and -- INR260.00 mil. Non-fund-based limit assigned with IND A4 rating. ANALYTICAL APPROACH: Ind-Ra has assessed the company on a standalone basis. Key Rating Drivers The ratings reflect NPEPPL's small scale of operations as indicated by revenue of INR634.48 million in FY23 (FY22: INR142.41 million). The revenue improved in FY23, due to the receipt and execution of new orders. Until 7MFY24, NPEPPL booked revenue of INR629.60 million and had an order book of INR825.26 million as of December 2023, which is to be fully executed by FY25. Ind-Ra thus expects the revenue to improve in FY24. Moreover, the entity's EBITDA margins vary depend upon the nature of orders in hand and unhedged foreign currency exposure. The margins improved to a healthy level of 20.39% in FY23 (FY22: 5.90%) with a return on capital employed of 39.05% (0.12%), due to the receipt and execution of high-margin orders. Ind-Ra however expects the EBITDA margin to slightly decline in FY24 due to the execution of lower margin orders. The ratings also reflect NPEPPL's modest credit metrics, as reflected by an interest coverage ratio (operating EBITDA/gross interest expenses) of 10.43x in FY23 (FY22: 2.24x) and the net leverage (total adjusted net debt/operating EBITDAR) of 0.46x (4.60x). The ratios improved in FY23 due to higher absolute EBITDA of INR129.40 million (INR8.40 million). Ind-Ra expects the credit metrics to remain at similar levels in FY24 due to the expected stable absolute EBITDA. This is because the impact of the expected improvement in revenue on EBITDA will be offset by the execution of lower margin orders. Liquidity Indicator - Poor: NPEPPL's average maximum utilization of the fund-based limits was 74.42% and non-fund-based limits was 75.19% during the 12 months ended November 2023 with an instance of overutilization up to 51 days. The cash flow from operations remained negative at INR31.29 million in FY23 (FY22: negative INR43.92 million) and it improved slightly due to the increased operating EBITDA and change in working capital to INR376.53 million (INR144.41 million). Furthermore, the free cash flow stood at negative INR31.30 million in FY23 (FY22: negative INR47.93 million). The net working capital cycle remained elongated while improving to 332 days in FY23 (FY22: 459 days) due to high recovery days of 362 (284), high inventory days of 287 (184 days) and high creditor days of 317 (8 days). The cash and cash equivalents stood at INR3.14 million at FYE23 (FYE22: INR0.07 million). Furthermore, NPEPPL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. However, the ratings are supported by the company's promoters' nearly 40 years of experience in manufacturing submarine batteries. This has facilitated the company to establish strong relationships with customers as well as suppliers. 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 scale of operations, achievement of stable operating profitability and maintaining the credit metrics in the medium term could lead to a positive rating action. Company Profile Incorporated in 1975 as a proprietorship firm, NPEPPL was converted to a private limited company in 1988. It is engaged in the manufacturing, installation and maintenance of electrical, electronics, instrumentation, automation equipment and projects for defense establishments, tele-communication companies and related Industries. The promoters are Baburao S Wanelkar and family. Their registered office is in Mumbai and their manufacturing units are located in Maharashtra. NITIN FIRE: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Nitin Fire Protection Industries Limited (NFPIL; part of the Nitin group) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10 CRISIL D (Issuer Not Cooperating) Bank Guarantee 29 CRISIL D (Issuer Not Cooperating) Cash Credit 45 CRISIL D (Issuer Not Cooperating) Cash Credit 42.5 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Cash Credit 20 CRISIL D (Issuer Not Cooperating) Letter of Credit 25 CRISIL D (Issuer Not Cooperating) Letter of Credit 75 CRISIL D (Issuer Not Cooperating) Letter of Credit 30 CRISIL D (Issuer Not Cooperating) Letter of Credit 40 CRISIL D (Issuer Not Cooperating) Proposed Cash 12.5 CRISIL D (Issuer Not Credit Limit Cooperating) Proposed Letter 10 CRISIL D (Issuer Not of Credit Cooperating) Standby Letter 76 CRISIL D (Issuer Not of Credit Cooperating) Standby Letter 30 CRISIL D (Issuer Not of Credit Cooperating) CRISIL Ratings has been consistently following up with NFPIL 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 NFPIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NFPIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NFPIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at its ratings, CRISIL Ratings has combined the business and financial risk profiles of NFPIL and its wholly owned subsidiaries: Eurotech Cylinders Pvt Ltd, Nitin Ventures FZE, and Nitin Global Pte Ltd. All the companies, collectively referred to as the Nitin group, have operational and financial linkages, and common promoters. About the Group The Nitin group is promoted by Mr. Nitin Shah and his sons, Mr. Rahul Shah and Mr. Kunal Shah. It is an end-to-end solutions provider for fire protection and safety equipment. It provides gas- and water-based fire protection systems, and caters mainly to the telecommunications, information technology, banking, and manufacturing industries. The group manufactures and trades in high-pressure seamless cylinders and industrial cylinders. NFPIL, incorporated in 1995, provides fire detection and fire suppression systems, and manufactures fire extinguishers. It entered the United Arab Emirates (UAE) by acquiring a majority stake in New Age Co LLC (New Age), which was an associate before April 2010. New Age is an approved vendor for all seven emirates of the UAE, and has a strong track record of providing fire protection services and maintenance. The Nitin group has a presence in the Middle East through Nitin Ventures FZE and in Singapore through Nitin Global Pte Ltd. Eurotech Cylinders Pvt Ltd trades in high-pressure compressed natural gas cylinders and valves and caters mainly to the domestic market. NFPIL remains part of a non-integrated, non-incorporated joint venture at an oil block in Rajasthan, in which it has 11.1% equity ownership. PANCHWATI PRAYOGSHALA: ICRA Keeps B+ Ratings in Not Cooperating --------------------------------------------------------------- ICRA has kept the Long-Term ratings of Panchwati Prayogshala Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 1.50 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 1.00 [ICRA]B+ (Stable) 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 Panchwati Prayogshala 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. Panchwati Prayogshala Private Limited (PPPL) is a manufacturer of Ayurvedic and herbal products, such as digestive tablets and powders, Chyawanprash, syrups, hair oil and other products. The company is managed by Mr. Pankaj Goel, who has more than two decades of experience in the Ayurvedic and herbal products business. The business is comanaged by Mr. Goel's partner and brother-in-law, Mr. Neeraj Agarwal. The company has two plants at Meerut (Uttar Pradesh) and Roorkee (Uttarakhand). While the Meerut plant is solely engaged in the production of digestive tablets, the Roorkee plant manufactures various products, including digestive tablets. The Roorkee plant was established in 2008 and has benefits of income tax exemption till FY2018. The company's promoter, Mr. Goel, also runs an educational trust, which provides higher education through its four colleges. PAREKH ALUMINEX: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Parekh Aluminex Limited (PAL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING) Short Term Rating - CRISIL D (ISSUER NOT COOPERATING) Non Convertible Debentures 125 CRISIL D (ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with PAL 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 PAL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PAL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PAL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1994, PAL manufactures aluminium foil containers (AFC), lids, covers, and allied products used in packaging food items. Manufacturing units are in Dadra and Nagar Haveli. In 2005, PAL acquired a Singapore-based company to enter the Southeast Asian markets. In 2008, its units acquired export oriented-unit status. The company entered the retail space with two brands, PAL and ME Foil, in fiscal 2011. It has annual production capacities of 688 crore pieces of AFC, 3.96 crore pieces of foil roll, and 179 crore pieces of foil lids. POOJA JEWELLERS: ICRA Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ ICRA has kept the Long-Term rating of Pooja Jewellers in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with Pooja Jewellers, 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 1993 as a sole proprietorship concern promoted by Mr Shankar Maity, Pooja Jewellers is engaged in the trading and manufacturing of gold and diamond jewellery. The firm operates from Chandni Chowk, Delhi and largely supplies its products in the wholesale market. The product portfolio of the firm includes gold and diamond jewellery necklace sets, rings, earrings, chains etc. POWER RESEARCH: ICRA Lowers Rating on INR7cr LT Loan to D --------------------------------------------------------- ICRA has revised the ratings on certain bank facilities of Power Research and Development Consultants Private Limited (PRDC), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term- 7.00 [ICRA]D; downgraded from Fund Based- [ICRA]B+(Stable) Cash Credit Long term- 5.50 [ICRA]D; downgraded from Non-fund based [ICRA]B+(Stable) Rationale Material Event On Jan. 30, 2024, ICRA received confirmation from Power Research and Development Consultants Private Limited (PRDC) regarding recent irregularities in debt servicing on the company's borrowing facilities. Impact of Material Event The long-term rating of PRDC have been downgraded to [ICRA]D from [ICRA]B+ (Stable) following the recent delays in debt servicing on bank facilities. Liquidity position: Poor PRDC's liquidity is poor, as reflected in the delays in fulfilling its debt repayment obligations. Rating sensitivities Positive factors – ICRA could upgrade the ratings if the company demonstrates a timely debt servicing track record, supported by an improvement in the overall liquidity and the profitability on a sustained basis. Negative factors – Not applicable. Established in 1994 and promoted by Dr. R Nagaraja, PRDC is involved in power systems consultancy services. PRDC also develops software for power network design and analysis in the name of MiPower, Mi AFAS, Mi DS2 etc. PRDC further provides automation and power system solutions, wherein the company designs the embedded systems as per customers' requirements, while the manufacturing process is outsourced. The company carries out projects for state electricity boards and utilities, independent power producers and companies in other industries such as cement, steel and sugar. It has also been recognised by the Visvesvaraya Technological University as an affiliated research centre, which allows PRDC to provide training to power engineers working in state/regional electricity boards, generation, transmission and distribution companies, among others. RAINBOW FOUNDATIONS: Ind-Ra Withdraws BB NCDs Rating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn the rating of Rainbow Foundations Limited's (RFL) proposed non-convertible debentures (NCDs) as follows: -- The IND BB/Stable rating on the INR 1.750 bil. Proposed NCDs is withdrawn. Ind-Ra is no longer required to maintain the ratings, as the agency has received a request from issuer to withdraw the ratings as the company did not raise the proposed NCDs as envisaged. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for RFL. Company Profile Incorporated in June 1994, RFL is engaged in the construction of commercial and residential projects across Tamil Nadu under the Rainbow brand. So far, the company has completed 36 projects and has six ongoing projects. Its shares are listed on BSE Limited. RAJAMAHAL INT'L: ICRA Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has kept the Long-term and Short-term ratings for the bank facilities of Rajamahal International Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B(Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 5.00 [ICRA]B (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term/ 7.00 [ICRA]B (Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Non-Fund Based Rating Continues to remain under issuer not cooperating category Long Term/ 3.00 [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 Rajamahal International Pvt. Ltd., ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Rajamahal International was established in the year 1991 and is primarily engaged in the trading of silk waste, fabrics, granites, TMT bars etc. The group is under the leadership of Mr. Aslam Pasha who has rich experience in mining and marketing activities. The company is based out of Koramangala, Bangalore. It has also established offices at Hospet, Sandur, and Vizag & Karwar to facilitate the export of various products. RIDDHI SIDDHI: ICRA Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has kept the Long-term rating for the bank facilities of Riddhi Siddhi Cotton Ginning & Pressing Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 20.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category As part of its process and in accordance with its rating agreement with Riddhi Siddhi Cotton Ginning & Pressing Pvt. Ltd., ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, the rating has been continued to the "Issuer Not Cooperating" category. The rating is based on the best available information. Incorporated in 2006, Riddhi Siddhi Cotton Ginning and Pressing Private Limited (RSCGP) is engaged in cotton ginning and pressing to produce cotton bales and cotton seeds. The manufacturing unit of company is located in Rajkot, Gujarat with thirty six ginning and one pressing machine having an installed capacity of producing 19,152 bales of ginned cotton in a year. RSCGP is currently managed by three directors Mr. Lavjibhai Kakdiya, Mrs. Gauriben Kakdiya and Mr. Vijay Kakdiya, all of who have long-standing experience in the cotton industry. RIDDHI STEEL: Ind-Ra Withdraws BB+ Bank Loan Rating --------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Riddhi Steel & Tube Private Limited's bank loan facilities' ratings as follows: -- The 'IND BB+ (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING)' rating on the INR260 mil. Fund-based working capital limits is withdrawn; -- The 'IND A4+ (ISSUER NOT COOPERATING)' rating on the INR90 mil. Non-fund-based working capital limit is withdrawn; and -- The 'IND BB+ (ISSUER NOT COOPERATING)' rating on the INR30 mil. Term loan is withdrawn. Key Rating Drivers Ind-Ra is no longer required to maintain the ratings of the instruments as they have been paid in full. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Company Profile Riddhi Steel & Tube manufactures pipes and tubes that are used mainly in infrastructure and engineering projects, water supply and irrigation projects. ROSELABS LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Roselabs Limited (RL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (Issuer Not Cooperating) Inland/Import 1.5 CRISIL D (Issuer Not Letter of Credit Cooperating) Proposed Long Term 0.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with RL 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 RL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2008, RL is promoted by Ahmedabad (Gujarat) based Mr Pawan Agarwal and his family members. The company is engaged in trading of pharmaceuticals, dyes, chemicals, textile products and plastic sheets. The company has its marketing offices in various states across India. RUSHABH LIFESTYLE: Insolvency Resolution Process Case Summary ------------------------------------------------------------- Debtor: Rushabh Lifestyle Private Limited 102, Mahim United Industrial Estate, Mogul Lane, Mahim West, Mumbai, Maharashtra, India, 400016 Insolvency Commencement Date: November 21, 2023 Estimated date of closure of insolvency resolution process: May 19, 2024 Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Pawan KR Agarwal 42, Gopal Bhawan, 199 Princess Street, S.G. Marg, Marine Lines (East) Mumbai - 400 002 E-mail: arbitratorp.com E-mail: arbitratoror@gmail.com Last date for submission of claims: December 5, 2023 SAGARSHREE HOSPITAL: Ind-Ra Withdraws B+ Bank Loan Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Sagarshree Hospital and Research Institute Private Limited's (SHRIPL) bank loan rating as follows: -- The 'IND B+ (ISSUER NOT COOPERATING)' rating on the INR140 mil. term loan is withdrawn. Key Rating Drivers Ind-Ra is no longer required to maintain the rating, as the agency has received no-dues certificates from the lender of bank facilities. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. Ind-Ra will no longer provide analytical and rating coverage for SHRIPL. Company Profile SHRIPL was incorporated in 2014 to set up a multispecialty hospital with a 138-bed capacity and advance machinery equipment to provide better services to patients. The company is managed by Dr. Santosh Kumar Rai, Abhishek Bhargava, Saurabh Singhai and Akash Bajaj. SAMARPAN DEVELOPERS: CRISIL Assigns B Rating to INR9.5cr Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Samarpan Developers (SD). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 5.0 CRISIL B/Stable (Assigned) Term Loan 9.5 CRISIL B/Stable (Assigned) The rating reflects the extensive experience of the partners in the real estate industry. This strength is partially offset by exposure to saleability risks associated with the projects, modest bookings, and susceptibility to cyclicality in the real estate sector. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to risks associated with ongoing projects: The projects have received combined bookings of less than 10%, leading to weak customer advances. Thus, operating performance will remain susceptible to timely completion of the projects and flow of customer advances. * Exposure to cyclicality inherent in the Indian real estate industry: The real estate sector in India is cyclical and affected by volatile prices, opaque transactions, and a highly fragmented market structure. Hence, business risk profile will remain susceptible to risks arising from any industry slowdown. Strength: * Extensive experience of the partners: The key partner, Mr Dineshchandra Mafatlal Shah, has been in the real estate industry for more than a decade, which has enabled him to establish a strong position in the real estate market of Mehsana, Gujarat. Furthermore, the partners have a successful implementation track record. Liquidity: Stretched Construction of ongoing projects is being funded through a mix of customer advances, unsecured loans and bank loan. Customer advances are expected to improve over the medium term. Although cash flow from the projects is expected to remain sufficient to meet term debt obligation, any unforeseen delay in project construction might result in cost overrun, thereby affecting term loan repayment. Any delay in receipt of customer advances is also expected to significantly affect liquidity. Outlook: Stable The firm will continue to benefit from its partners' extensive experience. Rating Sensitivity factors Upward factors: * Increase in bookings to over 40%, resulting in sizeable cash inflow and low reliance on debt. * Significant progress in project implementation. Downward factors: * Low cash flow because of subdued scale of operations or no new project. * Large, debt-funded project adversely affecting capital structure, with gearing above 4 times. Established as a partnership firm in 2007 by Mr Dineshchandra Mafatlal Shah, Mr Divyesh Dineshchandra Shah, Ms Premilaben Dineshchandra Shah and Mr Amar Dineshchandra Shah, SD develops residential and commercial real estate in Mehsana. SRS LIMITED: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of SRS Limited (SRS) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Fixed Deposits LT 125.0 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SRS 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 SRS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRS continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated as SRS Commercial Company Ltd in 2000, SRS got its current name in 2009. It operates in four business verticals: gems and jewellery (SRS Jewells brand), cinema exhibition (multiplexes under SRS Cinema), retail value chains (under SRS Value Bazaar and SRS Fashion Wear), and food and beverages (under SRS 7 Dayz, Asian Amigo, Punjabi Haandi, and Desi Cafe). The company has been listed on the Bombay Stock Exchange and National Stock Exchange since September 2011. It is managed by Dr Anil Jindal, a first-generation entrepreneur. TRANSFORMERS AND ELECTRICALS: Ind-Ra Gives BB- Term Loan Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Transformers and Electricals Kerala Limited's (TELK's) debt instruments as follows: -- INR59.4 mil. Term loan due on FY27 assigned with IND BB-/ Stable rating; -- INR470.0 mil. Fund-based facilities assigned with IND BB-/ Stable/IND A4+ rating; -- INR964.0 mil. Non-fund-based facilities assigned with IND BB-/ Stable/IND A4+ rating; and -- INR806.4 mil. Proposed fund-based/non-fund-based limits assigned with IND BB-/Stable/IND A4+ rating. ANALYTICAL APPROACH: Ind-Ra has taken a standalone view of TELK to arrive at the ratings. Key Rating Drivers The ratings reflect TELK's medium scale of operations. The revenue grew to INR1,767.52 million in FY23 (FY22: INR1,324.33 million) due to an increase in the capacity utilization to about 54% (46%). With the surge in revenue, the company reported an EBITDA of INR30 million in FY23, against a loss of INR506 million), largely due to a decrease in raw material costs and other operating expenses. During FY21-FY22, TELK reported EBITDA losses due to a steep increase in raw material prices as the company did not have a price variation clause with all its customers. Further, due to covid, the production was hit while employee and other expenses continued. Ind-Ra expects the revenue and EBITDA to increase FY24 onwards, owing to a healthy order book, the presence of a price variation clause across orders, improved capacity utilization and a reduction in overall costs. Furthermore, in July 2023, the company concluded its vapor-based drying capex, which effectively reduces production cycle to 80 days from 100 days. Liquidity Indicator - Poor: TELK does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The average maximum utilization of its fund-based working capital limits was high at 99.2% during the 12 months ended October 2023, while that of the non-fund-based limits was 86%. While TELK continues to report negative cash flow from operations, it improved to negative INR3.7 million in FY23 (FY22: negative INR305 million) on account of a reduction in the working capital cycle to 216 days (267 days). TELK is also planning to incur capex of about INR300 million to install a boiler, additional winding machines, oil storage tank, new design software, among others. However, of this, INR150 million will be borne by the government of Kerala and the remaining by the company. The capex would be funded from bank loan and internal accruals. The promoter's contribution will be converted into equity upon capex completion. The company had an unencumbered cash balance of around INR30 million at FYE23 (FYE22: INR2.7 million). The working capital cycle reduced significantly on account of a reduction in the inventory holding period to 75 days in FY23 (FY22: 121 days), resulting from execution of a higher number of orders. Ind-Ra expects the working capital cycle to improve marginally from FY23 levels in FY24 on account of a reduction in the inventory holding period and receivable period (FY23: 228 days, FY22: 219 days). TELK has debt repayment obligations of INR12.9 million and INR25.3 million in FY24 andFY25, respectively. The ratings also factor in TELK's weak credit metrics as reflected in its high adjusted net leverage (total adjusted net debt/operating EBITDA) of 17.5x and low interest coverage (operating EBITDA/gross interest expenses) of 0.4x in FY23 The gross debt continued to be high at INR683 million at FYE23 (FYE22: INR652 million). However, Ind-Ra expects the credit metrics to improve in the near-to-medium term with improved profitability. Thus, a sustained improvement in the operating profitability is critical for a steady improvement in the credit metrics. The company expects strong order execution from 4QFY24, especially pertaining to INR2.9 billion worth of orders from Megha Engineering & Infrastructures Ltd. (debt rated at 'IND AA'/Positive). Enforcement of Price Variation Clause to Aid EBITDA: While TELK had a price variation clause with its largest customer Kerala State Electricity Board (KSEB), it was unable to invoice the same due to failure of meeting of certain stringent conditions. As per the management, after long negotiations, KSEB agreed to release the price variations, and TELK has realized a part of this in 3QFY24 resulting in the strong growth in EBITDA. While price variation is an integral part of the contract price, it can be calculated only after one-to-two months post the delivery of transformers. In certain cases, part payment of price variation is released, along with base contractual price. KSEB accounts for 39.5% of TELK's current order book as of November 2023 (FY23: 28%, FY22: 35.5%, FY21: 32%). Going forward, Ind-Ra believes that TELK will be able to pass on any hike related to raw material increase and not incur any loss on account of the same. This will be a key monitorable, because as per the management, the company will not incur losses on account of price variation in the future. Working Capital Intensive Operations: Ind-Ra expects TELK's working capital cycle to remain long and highly dependent on non-fund-based limits in the near-to-medium term, due to the nature of business. Despite dealing with transmission and power infrastructure companies, TELK's working capital cycle has been stretched because of the long transit period, lengthy inspection cycle and moderate credit period offered by raw material suppliers. TELK's net working capital cycle remained stable in FY23, returning back to FY19-FY20 levels (FY21-FY22 were affected due to covid) at about 60% of net revenue. For most government utility contracts, around 80% of the payment is received after 90 days of delivery, and the remaining after 30 days from the commissioning of the project. Hence, the company's receivable period to hover between 200 and 230 days, albeit largely in line with industry standards. Furthermore, TELK's orders are customized as per client requirements, and the products take four-to-six months to be designed, manufactured and tested, leading to a high work-in-progress inventory. However, TELK is working towards reducing its inventory holding period and improving its terms of trade with customers through a change in mix towards private customers. Private consumers accounted for 50% of the order book in 1HFY24 (FY23: 35%; FY22: 36%). Capacity Utilization and Profitability to Improve in Medium-to-Long Term: Ind-Ra expects TELK's profitability to improve in the medium-to-long term, driven by i) a change in the product mix towards above-100MVA segment, which constitute 70% of the current order book, ii) a better pricing scenario given the demand-supply imbalance as the capex cycle is recovering globally; and iii) the company's focus to execute and undertake orders with a price variation clause. Healthy Order Book: TELK's order book increased significantly to INR5.3 billion in November 2023 (FY23: INR3.1 billion; FY22: INR2.8 billion), largely driven by Megha Engineering & Infrastructures' order, favorable industry dynamics and an increase in the transmission capacity. Typically, these orders are executed over a period of three-to-15 months. The company's top five customers accounted for 88% of the order book in 1HFY24 while its single-largest customer accounted for 39%. Any delay in payments from any of the top five customers can affect the company's working capital cycle. However, Ind-Ra draws comfort from the demand-supply dynamics and the bargaining position that manufacturers enjoy during such times of market imbalance. TELK's order book, being medium cycle orders, has a large mix of firm orders and orders with price variation basis indexes. Thus, in a declining raw material price scenario like currently, the company tends to benefit. Rating Sensitivities Positive: An increase in the scale of operations along with a higher EBITDA, leading to an improvement in the credit metrics resulting in interest coverage increasing above 1.0x, along with an improvement in the liquidity position, all on a sustained basis, will be positive for the ratings. Negative: A decline in the scale of operations leading to deterioration in the credit metrics and EBITDA and/or any deterioration in the liquidity position, resulting in the interest coverage remaining below 1.0x, all on a sustained basis, would lead to a negative rating action. Company Profile TELK was incorporated on 1963 by the government of Kerala under technical and financial collaboration agreement with M/s. Hitachi Limited, Japan, to set up a full-fledged unit for designing and manufacturing extra high voltage electrical equipment. The company is engaged in the manufacturing, supply, erection, and commissioning of power transformers and other related power equipment. In 2007, TELK entered into a Business Collaboration & Shareholders' Agreement with NTPC Limited ('IND AAA'/Stable), the largest power utility in India under which the latter acquired 45% of equity of the former. The government of Kerala holds majority stake of 55%. VAXTEX COTFAB: Insolvency Resolution Process Case Summary --------------------------------------------------------- Debtor: Vaxtex Cotfab Limited J-03 (GF to 4th Floor) Tejendra Arcade, Nr. Ganjfarak Mill Compound, Nr. Rakhial Char Rasta Rakhial, Ahmedabad City, Guiarat, India, 3 80023 Insolvency Commencement Date: January 4, 2024 Estimated date of closure of insolvency resolution process: July 4, 2024 Court: National Company Law Tribunal, Ahmedabad Bench Insolvency Professional: CA. Sunil Kumar Kabra 3rd Floor, Reegus Business Centre, New Citylight Road, Above Mercedes Benz Showroom Bharthana-Vesu, Surat-395007; E-mail: jlnusco@gmail.com E-mail: cirp.vcltd@gmail.com Last date for submission of claims: January 20, 2024 YASH CONSTRUCTION: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Yash Construction Equipments Private Limited (YCEPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.3 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with YCEPL 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 YCEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on YCEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of YCEPL continues to be 'CRISIL D Issuer Not Cooperating'. YCEPL was set up in 2007 in Mirzapur, Uttar Pradesh, by Mr Sanjay Kumar and his wife, Ms Sneha Kumar. The company is an authorised dealer of Tata Hitachi's heavy earth-moving equipment such as loaders, backhoe loaders, excavators, and car-mounted machines. It acquired Tata Hitachi's dealership in 2007. YOGI WIRES: CRISIL Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Yogi Wires Private Limited (YWPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 6 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with YWPL 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 YWPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on YWPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of YWPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 2008 in Pune by Mr Pradeep Khollam, YWPL manufactures a comprehensive assortment of fine wire, galvanised wire, and mild steel wire. YOUVAKSHI NEWS: CRISIL Keeps B Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Youvakshi News Broadcasting India Private Limited (YNBPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash 15 CRISIL B/Stable (Issuer Not Credit Limit Cooperating) Proposed Long Term 15 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with YNBPL 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 YNBPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on YNBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of YNBPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in January 2019, YNBPL is expected to be engaged in news broadcasting under the name 'Youvakshi TV'. It is promoted by Mr. Gummadi Venkateswerllu. Operations are expected to commence in FY20. ================= I N D O N E S I A ================= ABM INVESTAMA: Moody's Affirms 'B1' CFR, Outlook Remains Stable --------------------------------------------------------------- Moody's Investors Service has affirmed ABM Investama Tbk (P.T.)'s B1 corporate family rating, along with the B1 rating on its senior unsecured notes due August 2026. Moody's has also maintained the stable outlook. "The affirmation reflects Moody's expectation that ABM will maintain stable earnings and cash flows over the next 12-18 months, supported by higher overburden removal volume at its coal contract mining subsidiary PT Cipta Kridatama (CK) and steady dividends received from its 30%-owned coal mining associate, PT Golden Energy Mines Tbk (GEMS)," says Maisam Hasnain, a Moody's Vice President and Senior Analyst. RATINGS RATIONALE In January 2024, ABM announced that it has ceased operational control of its 50%-owned coal mining subsidiary PT Media Djaya Bersama (MDB). The loss of control and subsequent deconsolidation of MDB from ABM's consolidated financials, and the likely depletion of coal reserves at ABM's other coal mine, wholly-owned PT Tunas Inti Abadi (TIA), by end-2024 will reduce ABM's scale and business diversification. As a result, earnings at CK will anchor ABM's credit quality. ABM has a long track record of operating CK, which has grown considerably in recent years, increasing overburden removal volumes to around 280 million bank cubic meters (bcm) in 2023 from around 200 million bcm in 2022. Moody's expects CK's overburden removal volumes to increase further to around 300 million bcm in 2024, driven by higher production from existing customers, particularly larger customers PT Borneo Indobara (a subsidiary of GEMS) and PT Binuang Mitra Bersama. ABM will spend around $190 million in 2024 and $100 million in 2025, primarily to purchase new and replacement mining equipment at CK over the next two years. Assuming this capital spending is primarily debt-funded, Moody's estimates ABM's adjusted debt/EBITDA will trend to 2.0x – 2.5x through 2025 from around 1.6x for the 12 months ended September 2023. Such leverage levels remain strong for ABM's B1 CFR. Nonetheless, ABM's B1 CFR also incorporates uncertainty around the timing and cost associated with the company's plan to acquire new coal mines amid declining coal reserves at TIA, which once exhausted, could result in TIA losing its mining license. A situation where ABM does not hold any mining licenses could trigger an event of default under the indenture governing ABM's $160 million notes due 2026. Therefore, Moody's expects ABM to manage its coal reserves at TIA such that it acquires a new mine before reserves at TIA (1.62 million metric tons as of September 30, 2023) run out. Absent a new mine acquisition, Moody's expects ABM to maintain adequate liquidity over the next 12-18 months with sufficient cash sources, including proceeds from a new IDR1.6 trillion ($102 million) loan signed in December 2023, sufficient to cover its capital spending and scheduled debt maturities. ABM's liquidity will be supplemented by steady dividends received from GEMS, which is one of Indonesia's largest coal miners, with low operating costs, strong profitability and rising coal production. ABM received $127 million from GEMS in 2023. ABM's US dollar notes are rated in line with its B1 CFR because Moody's expects debt unencumbered by operating assets to remain the clear majority of total debt in ABM's capital structure, and that debt at ABM's operating subsidiaries will be repaid as per their scheduled amortization profile and therefore will not remain elevated over a prolonged period. OUTLOOK The stable outlook reflects Moody's expectation that ABM will maintain stable credit metrics and a conservative investment approach, while maintaining sufficient internal cash sources to meet its basic cash needs, and remaining in compliance with its bank loan covenants. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the ratings if ABM continues to grow the scale of its contract mining services operations, while maintaining strong credit metrics with good liquidity on a sustained basis. Credit metrics indicative of an upgrade include Moody's-adjusted debt/EBITDA below 3.0x, adjusted EBIT/interest above 3.0x and adjusted (cash from operations [CFO] - dividends)/debt above 25%, all on a sustained basis. Moody's could downgrade the ratings if (1) ABM's liquidity weakens, such that it is unable to meet its basic cash needs over the next 12-18 months; (2) industry fundamentals deteriorate, leading to a significant decline in its earnings; (3) ABM pursues aggressive financial policies including large debt-funded investments or elevated shareholder returns; or (4) there is cash leakage into its unrestricted power subsidiary, PT Anzara Janitra Nusantara. Credit metrics indicative of a downgrade include adjusted debt/EBITDA above 4.0x, adjusted EBIT/interest below 2.0x or adjusted (CFO - dividends)/debt below 20%. ABM's notes could be notched down from its CFR in the future if debt secured against operating assets represents a clear majority of ABM's total debt, or if ABM's operating subsidiaries substantially increase debt on a sustained basis. The principal methodology used in these ratings was Mining published in October 2021. Listed on the Indonesian Stock Exchange since 2011, ABM Investama Tbk (P.T.) is an integrated energy company with investments in coal mining, mining services, engineering and logistics, and power generation. The Hamami family controls 79% of ABM through PT Tiara Marga Trakindo (54%) and Valle Verde PTE LTD (25%). The remaining shares are held by the public. ========= J A P A N ========= [*] JAPAN: Sushi Joints Going Bankrupt Shows Inflation Impact ------------------------------------------------------------- Bloomberg News reports that Sushi is one of Japan's most iconic cuisines with fans around the world, but in its home country restaurants are closing their business at the fastest pace since the Covid pandemic days in 2020. Rising material prices, staff shortages and reduction of Covid-era support measures have hit sushi joints in Japan. Five restaurants went bankrupt in Japan in January, the most in a month since August 2020, Bloomberg discloses citing research firm Tokyo Shoko Research Ltd. Failures of Japan's sushi restaurants this year may exceed the 30 cases marked in 2020, as smaller restaurants find it a challenge to operate at a time when inflation is causing food and utility costs to go up, Bloomberg relays. The need to repay Covid-era loans adds to their burden, Tokyo Shoko Research said in a report. After suffering through decades of falling prices in a deflationary economy, Japan was hit too by the worldwide surge in inflation in the past couple of years. Rising import prices and a weakening yen pushed up the cost of living for Japanese households not accustomed to inflation. Food inflation jumped to multi-decade highs last year, with the price of fish increasing by 14.8% from a year earlier in May, Bloomberg discloses citing data released by the Statistics Bureau of Japan. Corporate bankruptcies have been rising overall in Japan, but the service sector including restaurants has been hardest hit, seeing the largest number of failures. Last year, 45 ramen restaurants went bankrupt, about twice as many as the previous year, according to Tokyo Shoko Research. ===================== N E W Z E A L A N D ===================== ALLBUILDS LIMITED: Court to Hear Wind-Up Petition on Feb. 20 ------------------------------------------------------------ A petition to wind up the operations of Allbuilds Limited will be heard before the High Court at Wellington on Feb. 20, 2024, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Dec. 12, 2023. The Petitioner's solicitor is: Natisha Mary Frances Jones Legal Services 55 Featherston Street PO Box 1462 Wellington 6140 MAIA PROJECTS: Creditors' Proofs of Debt Due on March 4 ------------------------------------------------------- Creditors of Maia Projects Limited are required to file their proofs of debt by March 4, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 2, 2024. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 NZ MATTOCK: Creditors' Proofs of Debt Due on March 8 ---------------------------------------------------- Creditors of NZ Mattock Logging Limited are required to file their proofs of debt by March 8, 2023, to be included in the company's dividend distribution. The High Court at New Plymouth appointed Iain Bruce Shephard and Jessica Jane Kellow of BDO Wellington as liquidators of the company on Feb. 2, 2024. PEI QIU: Iain Andrew Nellies Appointed as Liquidator ---------------------------------------------------- Iain Andrew Nellies of Insolvency Management on Feb. 2, 2023, was appointed as liquidator of Pei Qiu Sun Limited. The liquidator may be reached at: Insolvency Management Limited PO Box 1058 Dunedin 9054 T & T CONSTRUCTION: Court to Hear Wind-Up Petition on Feb. 20 ------------------------------------------------------------- A petition to wind up the operations of T & T Construction Limited will be heard before the High Court at Wellington on Feb. 20, 2024, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on Dec. 21, 2023. The Petitioner's solicitor is: Natisha Mary Frances Jones Legal Services, 55 Featherston Street PO Box 1462 Wellington 6140 ================= S I N G A P O R E ================= BC CONCEPT: Court Enters Wind-Up Order -------------------------------------- The High Court of Singapore entered an order on Feb. 2, 2024, to wind up the operations of BC Concept + Design Pte. Ltd. Maybank Singapore Limited filed the petition against the company on Jan. 11, 2024. The company's liquidators are: BDO Advisory Pte Ltd 600 North Bridge Road #23-01 Parkview Square Singapore 188778 ENERGY WAVE: Court to Hear Wind-Up Petition on March 1 ------------------------------------------------------ A petition to wind up the operations of Energy Wave Worldwide Pte Ltd will be heard before the High Court of Singapore on March 1, 2024, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Feb. 6, 2024. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 GRUNDTVIG MARINE: Creditors' Proofs of Debt Due on March 11 ----------------------------------------------------------- Creditors of Grundtvig Marine Pte Ltd are required to file their proofs of debt by March 11, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 31, 2024. The company's liquidators are: Ang Huey Pueh Tee Lian Choy 105 Cecil Street #15-02 The Octagon Singapore 069534 LIPPO MALLS: Fitch Lowers IDR to 'C' on Distressed Debt Exchange ---------------------------------------------------------------- Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust's (LMIRT) Long-Term Issuer Default Rating (IDR) to 'C' from 'CC'. Fitch has also downgraded the rating on LMIRT's senior unsecured notes due 2024 and 2026 to 'C' from 'CC', with a Recovery Rating of 'RR4'. The notes are issued by LMIRT's wholly owned subsidiary, LMIRT Capital Pte. Ltd., and guaranteed by Perpetual (Asia) Limited in its capacity as trustee of LMIRT. The downgrade follows LMIRT's announcement that it will proceed with a tender offer, subject to the satisfaction of the conditions in the offering memorandum. Fitch believes the tender offer constitutes a distressed debt exchange (DDE), as the transaction will lead to a material reduction in terms and, in its view, is being conducted to avoid a default. LMIRT said on 25 January 2024 it received valid tenders and will purchase USD49.9 million of the notes due 2024 (26.5% of outstanding notes) and USD28.4 million of the notes due 2026 (19.9% of outstanding notes). Fitch will downgrade LMIRT's IDR to 'Restricted Default' (RD) on completion of the DDE, and reassess the ratings in line with the post-restructuring capital structure. KEY RATING DRIVERS DDE Drives Downgrade: Fitch regards LMIRT's tender offer as a DDE, as Fitch believes the amendments constitute a material reduction in original terms and that the transaction helped the company to avoid a traditional default, given its untenable liquidity profile. As such, the Long-Term IDR was downgraded to 'C' following the announcement that the DDE will proceed, in line with its criteria. DERIVATION SUMMARY LMIRT's Long-Term IDR of 'C' and the 'C' rating on its senior unsecured notes reflect the company's announced tender offer on its outstanding unsecured notes. Fitch believes the tender offer constitutes a DDE. KEY ASSUMPTIONS - Net property income, including from Lippo Mall Puri, of SGD123 million in 2023 and in 2024; - Capex of SGD11 million in 2023 and SGD35 million in 2024; - No dividend payout and perpetual coupon distribution in 2023 and 2024. RECOVERY ANALYSIS Fitch assumes LMIRT will be liquidated in a bankruptcy rather than continue as a going concern, as Fitch believes creditors are likely to maximise recoveries by selling the investment properties. - Fitch calculates a liquidation value under a distressed scenario of SGD0.7 billion at end-September 2023. - Fitch uses stressed capitalisation values to arrive at the distressed valuation for LMIRT's investment properties. Fitch uses a 11% capitalisation rate as a reference, higher than the average of capitalisation rates from recent divestments and acquisitions of 10% due to the portfolio's weak performance and challenging recovery prospects. This capitalisation rate is applied to Fitch's estimated net property income from LMIRT's Hak Guna Bangunan (HGB) and strata malls for the 12 months to September 2023. - The estimate also reflects its assessment of the value of trade receivables under a liquidation scenario, with a 75% advance rate. Fitch believes a 25% discount is sufficient to cover potential bad debt. These assumptions result in a recovery corresponding to a Recovery Rating of 'RR2' for the outstanding senior unsecured bonds. However, the Recovery Rating is capped at 'RR4', as LMIRT derives its entire economic value from assets in Indonesia even though it is incorporated in Singapore. Under its Country-Specific Treatment of Recovery Ratings Criteria, Indonesia falls into Group D of creditor friendliness, and the Recovery Rating for instruments of issuers with assets in this group is subject to a soft cap at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Fitch will reassess LMIRT's capital structure and cash flow after the completion of the DDE to determine the Long-Term IDR and senior unsecured rating. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Fitch will downgrade LMIRT's Long-Term IDR to 'RD' when the DDE is completed, and then reassess the company's IDR based on the post-restructuring capital structure. LIQUIDITY AND DEBT STRUCTURE Insufficient Liquidity: Fitch believes LMIRT's liquidity is insufficient to meet the repayment of the remaining USD138.4 million unsecured notes maturing on 19 June 2024. This is because of the high execution risks around the trust's ability to pledge some of its unencumbered properties, and dispose of non-core assets in the near term, as well as its insufficient cash balance of SGD99 million at end-September 2023. ISSUER PROFILE LMIRT is a Singapore-listed real-estate investment trust with a portfolio of 22 shopping malls and seven retail spaces in Indonesia. The portfolio was valued at SGD1.7 billion as of end-September 2023. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Lippo Malls Indonesia Retail Trust LT IDR C Downgrade CC LMIRT Capital Pte. Ltd. senior unsecured LT C Downgrade RR4 CC STC INTERNATIONAL: Creditors' Proofs of Debt Due on March 11 ------------------------------------------------------------ Creditors of STC International Holdings Pte. Ltd. are required to file their proofs of debt by March 11, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 2, 2024. The company's liquidator is: Ong Kok Yeong David c/o Tricor Singapore 9 Raffles Place #26-01 Republic Plaza Singapore 048619 TAIYO ASIA: Court to Hear Wind-Up Petition on March 1 ----------------------------------------------------- A petition to wind up the operations of Taiyo Asia (E & C) Pte Ltd will be heard before the High Court of Singapore on March 1, 2024, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on Feb. 6, 2024. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 [*] SINGAPORE: Bankruptcy, Winding-Up Below Pre-Covid Levels ------------------------------------------------------------ The Business Times reports that Singapore's overall debt situation remains manageable thus far, with both individual bankruptcy and corporate winding-up orders below pre-pandemic levels, said Minister of State for Trade and Industry Alvin Tan in Parliament on Feb. 7. He was responding to Member of Parliament Yip Hon Weng, who asked if the government was concerned about individual bankruptcy applications reaching an 18-year high, and increased corporate insolvencies in 2023, BT notes. BT relates that Mr. Tan highlighted that not all applications result in orders, adding: "The trend of bankruptcy orders has been largely stable over the recent years, and it's also below pre-Covid levels." Similarly, while compulsory winding-up applications picked up in 2023, actual winding-up numbers were lower and also below pre-Covid levels, BT discloses. Bankruptcy applications rose in 2023 amid a challenging macroeconomic and financial environment, while higher global interest rates also caused domestic interest rates to rise sharply, said Mr. Tan. "Nevertheless, most corporates and households were able to weather the increases in borrowing costs and continued to service their loans." There has not been any significant uptick in non-performing loans from banks, for either corporates or households, he said, BT relays. The Monetary Authority of Singapore's stress tests also show that most corporates and household borrowers have adequate buffers to manage shocks to income and financing costs, he added. ============= V I E T N A M ============= VIETNAM MARITIME: Moody's Affirms B1 Issuer Rating, Outlook Stable ------------------------------------------------------------------ Moody's Investors Service has affirmed the ratings of Viet Capital Commercial Joint Stock Bank (BVBank), Vietnam Maritime Commercial Joint Stock Bank (MSB), Nam A Commercial Joint Stock Bank (Nam A Bank) and Viet A Commercial Joint Stock Bank (VAB). At the same time, Moody's has affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of all four banks. Moody's has maintained the stable outlooks on BVBank, MSB, Nam A Bank and VAB where applicable. RATINGS RATIONALE The rating actions reflect Moody's expectation of a gradual economic recovery in Vietnam, which will help improve the repayment capacities of bank borrowers, resulting in a moderation of asset quality pressures for the banks. While the banks' credit concentration in real estate and construction companies pose asset quality risks, ongoing government support through interest rate cuts and accommodative policies will aid in the sectors' recovery. The deposit ratings of MSB, Nam A Bank and VAB are one notch above their respective BCAs, based on Moody's assumption of a moderate probability of support from the Government of Vietnam (Ba2 stable) in times of need. MSB: The affirmation of MSB's ratings with a stable outlook reflects Moody's expectation that the bank's above-peer-average capitalization and profitability will help offset asset quality risks. MSB's asset quality weakened in 2023, driven by delinquencies from retail and small and medium-sized enterprise (SME) borrowers. The bank's gross nonperforming loan (NPL) ratio increased to 2.9% of gross loans as of the end of December 2023 from 1.7% at the end of 2022. Its loan loss coverage ratio also weakened to 55% from 69% over the same period, providing a limited buffer against further risks. The bank's exposures to other problematic assets, such as its legacy foreclosed assets and receivables from debt sold to partners, also pose asset quality risks. However, the share of these problematic assets has decreased to 2.6% of its total assets as of the end of June 2023 from the peak of 7.4% in 2020. MSB's capitalization is a credit strength, with its tangible common equity (TCE) as a percentage of adjusted risk-weighted assets (RWA), or TCE ratio, at 11.8% as of the end of December 2023, the highest among its similarly rated peers. The bank's capitalization will likely moderate over the next 12-18 months due to high loan growth. At the same time, its profitability will remain stable on the back of lower net interest margins due to reduced interest rates, offset by a moderation in credit costs. MSB's reliance on market funding is higher than most of its rated peers in Vietnam, with its market funds as a percentage of tangible banking assets at 35.8% at the end of December 2023. At the same time, its high-quality liquid assets such as cash, balances with the central bank and government securities accounted for just 10.5% of its tangible banking assets as of December 2023, providing a limited buffer in times of need. BVBank, Nam A Bank, VAB: The affirmation of BVBank's, Nam A Bank's, VAB's ratings reflects Moody's expectation that their credit profiles will remain stable over the next 12-18 months, supported by their stable profitability and a moderation in asset quality pressures. BVBank's, Nam A Bank's and VAB's NPL ratios increased to 3.2%, 2.1% and 1.6%, respectively, as of the end of December 2023, from 2.8%, 1.3% and 1.5%, respectively, at the end of 2022. Their special mention loan (SML) ratios stood at 2.0%, 3.8% and 0.5%, respectively, as of the end of December 2023. At the same time, BVBank's stock of Vietnam Asset Management Company (VAMC) bonds increased to 2.3% of its gross loans as of the end of December 2023, while Nam A Bank was able to fully write off its VAMC bonds during the same period, resulting in an improvement in overall asset quality. The three banks' loan loss reserves as a percentage of problem loans and VAMC bonds were 24%, 52% and 67%, respectively, as of December 2023, providing limited buffers against asset quality risks. The banks' capitalization is weak, with Nam A Bank's TCE ratio at 6.5% as of the end of December 2023, VABs' at 7.8% as of the end of September 2023 and BVBank's at 6.4% as of the end of June 2023. Their capitalization will likely remain strained over the next 12-18 months because of high loan growth and weak internal capital generation. The banks' have modest deposit franchises and rely on market funds to support balance sheet growth, with BVBank's, Nam A Bank's and VAB's market funds as a percentage of tangible assets at 25.9%, 20.8% and 12.8%, respectively, as of the end of December 2023. At the same time, their high-quality liquid assets such as cash, balances with the central bank and government securities accounted for just 13.0%, 14.9% and 7.2%, respectively, of their tangible banking assets as of December 2023. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS MSB Moody's could upgrade MSB's ratings and BCA if the bank's asset quality improves significantly or if it manages to reduce its legacy foreclosed assets and receivables from debt sold to partners. A lower reliance on market funds, with its market funds as a percentage of tangible banking assets ratio declining to below 30%, will also be positive for the BCA. On the other hand, Moody's would downgrade MSB's ratings and BCA if the bank's stressed assets continue to increase, leading to higher credit costs and a decline in its return on tangible assets to below 1%, or if the bank's TCE ratio declines below 6.5%. A weakening in MSB's funding and liquidity will also be negative for the BCA. Moody's would also downgrade MSB's deposit and issuer ratings if it assesses that government support for the bank has weakened. BVBank Moody's could upgrade BVBank's ratings and BCA if the bank significantly diversifies its loan portfolio while maintaining a stable problem loan ratio; improves its capital such that the TCE ratio exceeds 9.5%; and increases its profitability such that its return on tangible assets consistently stays above 0.5%. Conversely, Moody's would downgrade BVBank's ratings and BCA if the bank's liquidity or funding structure weakens. A downgrade is also likely if its asset quality continues to weaken, its TCE ratio falls below 5.5% or its regulatory capital ratios decline materially. Nam A Bank: Moody's could upgrade Nam A Bank's ratings and BCA if the bank's NPL and SML ratios decrease below 2.0%, and its TCE ratio improves and remains above 8% on a sustained basis. On the other hand, Moody's would downgrade Nam A Bank's ratings and BCA if its financial fundamentals significantly deteriorate. Specifically, a downgrade is likely if the bank's NPL and SML ratios increase above 4%, or its adjusted TCE ratio declines below 5.5% on a sustained basis. Moody's would also downgrade Nam A Bank's deposit and issuer ratings if it assesses that government support for the bank has weakened. VAB: Moody's could upgrade VAB's ratings and BCA if the bank significantly diversifies its loan portfolio while maintaining a stable problem loan ratio and improves its capital such that its TCE ratio exceeds 9.5%. On the other hand, Moody's could downgrade VAB's ratings and BCA if its total regulatory capital ratio drops materially or its TCE ratio declines below 5.5% due to more than expected asset growth or a deterioration in its asset quality. A downgrade is also likely if its funding or liquidity deteriorates significantly. Moody's would also downgrade VAB's deposit and issuer ratings if it assesses that government support for the bank has weakened. LIST OF AFFECTED RATINGS Issuer: Vietnam Maritime Commercial Joint Stock Bank Affirmations: Adjusted Baseline Credit Assessment, Affirmed b2 Baseline Credit Assessment, Affirmed b2 Long-term Counterparty Risk Assessment, Affirmed Ba3(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign Currency), Affirmed Ba3 Short-term Counterparty Risk Rating (Foreign Currency), Affirmed NP Long-term Counterparty Risk Rating (Local Currency), Affirmed Ba3 Short-term Counterparty Risk Rating (Local Currency), Affirmed NP Long-term Issuer Rating (Foreign Currency), Affirmed B1, Outlook Remains Stable Short-term Issuer Rating (Foreign Currency), Affirmed NP Long-term Issuer Rating (Local Currency), Affirmed B1, Outlook Remains Stable Short-term Issuer Rating (Local Currency), Affirmed NP Short-term Deposit Rating (Foreign Currency), Affirmed NP Short-term Deposit Rating (Local Currency), Affirmed NP Long-term Deposit Rating (Foreign Currency), Affirmed B1, Outlook Remains Stable Long-term Deposit Rating (Local Currency), Affirmed B1, Outlook Remains Stable Outlook Actions: Outlook, Remains Stable Issuer: Nam A Commercial Joint Stock Bank Affirmations: Adjusted Baseline Credit Assessment, Affirmed b3 Baseline Credit Assessment, Affirmed b3 Long-term Counterparty Risk Assessment, Affirmed B1(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign Currency), Affirmed B1 Short-term Counterparty Risk Rating (Foreign Currency), Affirmed NP Long-term Counterparty Risk Rating (Local Currency), Affirmed B1 Short-term Counterparty Risk Rating (Local Currency), Affirmed NP Long-term Issuer Rating (Foreign Currency), Affirmed B2, Outlook Remains Stable Short-term Issuer Rating (Foreign Currency), Affirmed NP Long-term Issuer Rating (Local Currency), Affirmed B2, Outlook Remains Stable Short-term Issuer Rating (Local Currency), Affirmed NP Short-term Deposit Rating (Foreign Currency), Affirmed NP Short-term Deposit Rating (Local Currency), Affirmed NP Long-term Deposit Rating (Foreign Currency), Affirmed B2, Outlook Remains Stable Long-term Deposit Rating (Local Currency), Affirmed B2, Outlook Remains Stable Outlook Actions: Outlook, Remains Stable Issuer: Viet Capital Commercial Joint Stock Bank Affirmations: Adjusted Baseline Credit Assessment, Affirmed b3 Baseline Credit Assessment, Affirmed b3 Long-term Counterparty Risk Assessment, Affirmed B2(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign Currency), Affirmed B2 Short-term Counterparty Risk Rating (Foreign Currency), Affirmed NP Long-term Counterparty Risk Rating (Local Currency), Affirmed B2 Short-term Counterparty Risk Rating (Local Currency), Affirmed NP Long-term Issuer Rating (Foreign Currency), Affirmed B3, Outlook Remains Stable Short-term Issuer Rating (Foreign Currency), Affirmed NP Long-term Issuer Rating (Local Currency), Affirmed B3, Outlook Remains Stable Short-term Issuer Rating (Local Currency), Affirmed NP Short-term Deposit Rating (Foreign Currency), Affirmed NP Short-term Deposit Rating (Local Currency), Affirmed NP Long-term Deposit Rating (Foreign Currency), Affirmed B3, Outlook Remains Stable Long-term Deposit Rating (Local Currency), Affirmed B3, Outlook Remains Stable Outlook Actions: Outlook, Remains Stable Issuer: Viet A Commercial Joint Stock Bank Affirmations: Adjusted Baseline Credit Assessment, Affirmed b3 Baseline Credit Assessment, Affirmed b3 Long-term Counterparty Risk Assessment, Affirmed B1(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign Currency), Affirmed B1 Short-term Counterparty Risk Rating (Foreign Currency), Affirmed NP Long-term Counterparty Risk Rating (Local Currency), Affirmed B1 Short-term Counterparty Risk Rating (Local Currency), Affirmed NP Long-term Issuer Rating (Foreign Currency), Affirmed B2, Outlook Remains Stable Short-term Issuer Rating (Foreign Currency), Affirmed NP Long-term Issuer Rating (Local Currency), Affirmed B2, Outlook Remains Stable Short-term Issuer Rating (Local Currency), Affirmed NP Short-term Deposit Rating (Foreign Currency), Affirmed NP Short-term Deposit Rating (Local Currency), Affirmed NP Long-term Deposit Rating (Foreign Currency), Affirmed B2, Outlook Remains Stable Long-term Deposit Rating (Local Currency), Affirmed B2, Outlook Remains Stable Outlook Actions: Outlook, Remains Stable The principal methodology used in these ratings was Banks Methodology published in July 2021. Vietnam Maritime Commercial Joint Stock Bank (MSB) is headquartered in Hanoi and reported total assets of VND267 trillion as of December 31, 2023. Nam A Commercial Joint Stock Bank (Nam A Bank) is headquartered in Ho Chi Minh City and reported total assets of VND210 trillion as of December 31, 2023. Viet Capital Commercial Joint Stock Bank (BVBank) is headquartered in Ho Chi Minh City and reported total assets of VND88 trillion as of December 31, 2023. Viet A Commercial Joint Stock Bank (VAB) is headquartered in Hanoi and reported total assets of VND112 trillion as of December 31, 2023. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2024. 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