/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/240417.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, April 17, 2024, Vol. 27, No. 78 Headlines A U S T R A L I A CBO HOLDINGS: First Creditors' Meeting Set for April 22 DUMPLING UNION: Second Creditors' Meeting Set for April 19 HIBBARD SPORTS: First Creditors' Meeting Set for April 23 MAN COMMUNICATIONS: Second Creditors' Meeting Set for April 19 MESOBLAST LTD: Gregory George, 3 Others Report Stakes PERENTI FINANCE: S&P Rates Proposed USD350MM Unsec. Notes 'BB' REAL RESPONSE: Second Creditors' Meeting Set for April 22 [*] Bronte Capital Bets Big on More Companies Going Insolvent C H I N A CHINA VANKE: Says Authorities Haven't Verified if Unit Evade Tax LONGFOR GROUP: S&P Lowers LongTerm ICR to 'BB+', Outlook Negative WEIFANG URBAN: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable ZIJIN MINING: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR H O N G K O N G LIMAS COMMODITIES: TriLinc Global Marks $22.2MM Loan at 31% Off I N D I A A KUMAR: CRISIL Keeps B Debt Ratings in Not Cooperating Category AGGARWAL ASSOCIATES: CRISIL Keeps D Ratings in Not Cooperating AGRAWAL TECHNICAL: Ind-Ra Keeps BB- Rating in Non-Cooperating ARUNACHALA WEAVING: Ind-Ra Moves BB Rating to Non-Cooperating ARYAN HOSPITAL: CRISIL Keeps D Debt Ratings in Not Cooperating BALU IRON: Ind-Ra Gives BB Bank Loan Rating, Outlook Stable CHHATTISGARH SONDIHA: Voluntary Liquidation Process Case Summary COGNOTA HEALTHCARE: Ind-Ra Withdraws B- LongTerm Issuer Rating CROSS TRADE: CRISIL Keeps D Debt Ratings in Not Cooperating DATT REALINFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating DESMI EQUIPMENTS: CRISIL Keeps C Debt Ratings in Not Cooperating DINESH OILS: Ind-Ra Keeps D Rating in NonCooperating ECHANDA URJA: CARE Reaffirms B+ Rating on INR311.47cr LT Loan ELECTRO POLYCHEM: ICRA Keeps B- Debt Ratings in Not Cooperating EUROLIFE HEALTHCARE: Ind-Ra Keeps D Rating in NonCooperating FRIENDS LAND: ICRA Withdraws B Rating on INR100cr LT Loan GCRG MEMORIAL: Ind-Ra Keeps D Rating in Non-Cooperating GYANMANJARI CAREER: Ind-Ra Assigns BB Loan Rating, Outlook Stable INOA PROPERTIES: CARE Reaffirms B+ Rating on INR70.0cr LT Loan ISWARYA TEXTILE: Ind-Ra Hikes Loan Rating to BB+, Outlook Stable ITSHASTRA PRIVATE: Ind-Ra Withdraws B- Bank Loan Rating J S V MOTORS: CARE Reaffirms B+ Rating on INR139.24cr LT Loan JR AGROTECH: Ind-Ra Keeps D Rating in NonCooperating KOCHI METRO: Ind-Ra Cuts Bank Loan Rating to BB+, Outlook Stable KRISHNA EDUCATIONAL: Ind-Ra Keeps D Rating in Non-Cooperating LMJ INTERNATIONAL: Ind-Ra Keeps D Rating in NonCooperating MA CHANDI: CRISIL Keeps D Debt Ratings in Not Cooperating MAHARSHEE GEOMEMBRANE: CRISIL Keeps D Ratings in Not Cooperating MANAS AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating MANGALSIDDHI MULTI: CRISIL Keeps D Debt Rating in Not Cooperating MEENAKSHI FISHING: CRISIL Keeps D Debt Ratings in Not Cooperating MODERN STAGE: CRISIL Keeps D Debt Rating in Not Cooperating MORINGA TECHSOLV: Ind-Ra Withdraws B- LongTerm Issuer Rating MOTI RAM: CRISIL Keeps D Debt Ratings in Not Cooperating Category MUKAND SUMI: Ind-Ra Keeps BB Rating in NonCooperating MUMBAI METRO: NCLT Disposes Off Two Insolvency Applications MYTRAH ENERGY: Ind-Ra Keeps D Rating in NonCooperating NEXTGEN FIBRES: Ind-Ra Moves BB- Rating to Non-Cooperating PALLAVI MOTORS: Ind-Ra Keeps BB+ Rating in Non-Cooperating PATIL CONSTRUCTION: Ind-Ra Keeps D Loan Rating in Non-Cooperating PONDICHERRY-TINDIVANAM: CARE Reaffirms D Rating on LT Bank Loan PRAVESH FINLEASE: CARE Lowers Rating on INR100cr LT Loan to B- ROLTA INDIA: Ind-Ra Keeps D Rating in NonCooperating S TEN: CRISIL Keeps D Debt Ratings in Not Cooperating Category SAI MAATARINI: Ind-Ra Keeps D Term Loan Rating in NonCooperating SEYA INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating SH MARINE: CARE Reaffirms B+ Rating on INR6.80cr LT Loan SHOBHA ASARS: Insolvency Resolution Process Case Summary SOUTHERN COOLING: CRISIL Keeps C Debt Ratings in Not Cooperating SOUTHERN GOLD: CRISIL Keeps D Debt Ratings in Not Cooperating SOUTHERN POWER: CARE Lowers Rating on INR894.40cr LT Loan to C USHDEV INTERNATIONAL: Ind-Ra Keeps D Rating in NonCooperating VAJRATEJA RICE: Ind-Ra Hikes Loan Rating to BB-, Outlook Stable VAKRANGEE FOUNDATION: Ind-Ra Keeps B+ Rating in Non-Cooperating VIJAI ELECTRICALS: Ind-Ra Cuts Loan Rating to D, Outlook Positive VISHNU OVERSEAS: CRISIL Keeps D Debt Ratings in Not Cooperating WALCHANDNAGAR INDUSTRIES: Ind-Ra Hikes LongTerm Rating to B+ YASH SPECIALITY: CARE Reaffirms B+ Rating on INR41.54cr LT Loan M A L A Y S I A VIKUDHA MALAYSIA: TriLinc Global Marks $18.4MM Loan at 62% Off N E W Z E A L A N D DS COLLISION: Creditors' Proofs of Debt Due on May 8 J B TECHNOLOGY: Grant Bruce Reynolds Appointed as Liquidator JORLAND CONSTRUCTION: Court to Hear Wind-Up Petition on April 24 ORMAT LIMITED: Court to Hear Wind-Up Petition on April 24 WALLACE & GIBBS: To Close Two Arrowtown Fashion Stores in July YK FOOD SERVICE: Court to Hear Wind-Up Petition on May 3 P H I L I P P I N E S ENTREGO FULFILLMENT: Ayala Books PHP3BB Loss From Zalora Venture GOTYME: Losses Soar to PHP3BB in First Full Year of Operations S I N G A P O R E DYNAOPTICS LTD: Commences Wind-Up Proceedings GOLDEN EQUATOR: Court Enters Wind-Up Order GRACE OCEAN: Dali Owners Declare General Average HAMPTON CAPITAL: Commences Wind-Up Proceedings HCZ CONSTRUCTION: Court to Hear Wind-Up Petition on April 26 SEN YUE: Assisting in MAS Investigation THREE ARROWS: Appeal on Defiance Ownership Case Order Dismissed UNICORN PARTNERS: Commences Wind-Up Proceedings S R I L A N K A CAPITAL ALLIANCE: Fitch Removes 'BBf(lka)' Rating on Watch Negative - - - - - ================= A U S T R A L I A ================= CBO HOLDINGS: First Creditors' Meeting Set for April 22 ------------------------------------------------------- A first meeting of the creditors in the proceedings of CBO Holdings (VIC) Pty Ltd will be held on April 22, 2024 at 10:30 a.m. at the offices of Dye & Co. at 165 Camberwell Road in Hawthorn East. Nicholas Giasoumi and Shane Leslie Deane of Dye & Co were appointed as administrators of the company on April 12, 2024. DUMPLING UNION: Second Creditors' Meeting Set for April 19 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Dumpling Union Pty Ltd has been set for April 19, 2024 at 3:00 p.m. at the offices of Oracle Insolvency Services at Suite 1104, 147 Pirie Street in Adelaide and via Zoom meeting. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Apri 18, 2024 at 5:00 p.m. Nicholas David Cooper and Yulia Petrenko of Oracle Insolvency Services were appointed as administrators of the company on March 5, 2024. HIBBARD SPORTS: First Creditors' Meeting Set for April 23 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Hibbard Sports Club Limited will be held on April 23, 2024 at 11:00 a.m. at Hibbard Sports Club, 20 Boundary Street in Port Macquarie and virtual meeting technology. Scott Anthony Newton and Benjamin Ismay of Shaw Gidley were appointed as administrators of the company on April 11, 2024. MAN COMMUNICATIONS: Second Creditors' Meeting Set for April 19 -------------------------------------------------------------- A second meeting of creditors in the proceedings of The Man Communications Pty Ltd has been set for April 19, 2024 at 11:00 a.m. at the offices of Cor Cordis at Level 29, 360 Collins Street in Melbourne and virtually by electronic facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 18, 2024 at 5:00 p.m. Shaun Matthews and Daniel Juratowitch of Cor Cordis were appointed as administrators of the company on March 5, 2024. MESOBLAST LTD: Gregory George, 3 Others Report Stakes ----------------------------------------------------- Gregory George, James George, Grant George and G to the Fourth Investments, LLC disclosed in a Schedule 13G/A Report filed with the U.S. Securities and Exchange Commission that as of March 28, 2024, they beneficially owned ordinary shares of Mesoblast Limited. The Shares beneficially owned are as follows: Reporting Person Shares Owned Percent of Class Gregory George 143,266,162 12.59% James George 2,500,000 0.22% Grant George 2,405,000 0.21% G to the Fourth 43,625,144 3.83% Investments, LLC The ownership represents beneficial ownership of ordinary shares as represented by American Depositary Receipts by the Reporting Persons as of March 28, 2024, based upon 1,137,611,751 ordinary shares of the issuer outstanding as of March 28, 2024. Gregory George is the sole beneficial owner of 94,736,018 ordinary shares, which include 6,830,602 ordinary shares underlying warrants and 33,374,710 ordinary shares held in the form of American Depositary Receipts. Gregory George is a manager of G to the Fourth Investments, LLC and has discretionary authority to vote and dispose of 43,625,144 ordinary shares held by G to the Fourth Investments, LLC. Gregory George may be deemed to be the beneficial owner of these shares. Gregory George has discretionary authority to vote and dispose of 2,500,000 ordinary shares held in the form of ADRs by his son James George. Gregory George may be deemed to be the beneficial owner of these shares. Gregory George has discretionary authority to vote and dispose of 2,405,000 ordinary shares held in the form of ADRs by his son Grant George. Gregory George may be deemed to be the beneficial owner of these shares. A full-text copy of the Report is available at https://tinyurl.com/2s3dasrs About Mesoblast Headquartered in Melbourne, Australia, Mesoblast Limited -- www.mesoblast.com -- is a developer of allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The Company has leveraged its proprietary mesenchymal lineage cell therapy technology platform to establish a broad portfolio of late-stage product candidates which respond to severe inflammation by releasing anti-inflammatory factors that counter and modulate multiple effector arms of the immune system, resulting in significant reduction of the damaging inflammatory process. Mesoblast has locations in Australia, the United States and Singapore and is listed on the Australian Securities Exchange (MSB) and on the Nasdaq (MESO). As of June 30, 2023, the Company had $669.41 million in total assets, $167.58 million in total liabilities, and $501.84 million in total equity. Melbourne, Australia-based PricewaterhouseCoopers, the Company's auditor since 2008, issued a "going concern" qualification in its report dated Aug. 31, 2023, citing that the Company has net cash outflows from operating activities and is dependent upon implementing cost containment and deferment strategies and obtaining additional funding from one or more sources to meet the Company's projected expenditure consistent with its business strategy, and has stated that these events or conditions result in material uncertainty that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) on the Company's ability to continue as a going concern. PERENTI FINANCE: S&P Rates Proposed USD350MM Unsec. Notes 'BB' -------------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issue rating to the five-year US$350 million senior, unsecured 144A/Reg S notes that Perenti Finance Pty Ltd. proposes to issue. Perenti Finance is the financing arm of Perenti Ltd. (BB/Positive/--). S&P assigned the notes a recovery rating of '3', reflecting its expectation for average (50%-70%; rounded estimate: 50%) recovery prospects in the event of a payment default. The notes will rank equally with all other senior unsecured and unsubordinated obligations of the Australia-based mining services group. Perenti will use the proceeds to repay US$230 million of its existing US$432.8 million senior notes due 2025. The remaining proceeds will be allocated toward partially repaying outstanding balances drawn under its syndicated debt facilities. S&P revised the rating outlook on Perenti Ltd. to positive from stable in November 2023. This reflected the company's increased scale following its DDH1 acquisition in October 2023, its strengthened financial profile, and commitment to its conservative financial policy, which improves resilience to cyclical downturns. Issue Ratings - Recovery Analysis S&P's recovery analysis for Perenti Ltd. contemplates a hypothetical simulated default during the first half of 2029. The issue rating on Perenti Finance Pty Ltd.'s and Perenti International Pty Ltd.'s A$420 million, senior secured syndicated bank facilities is 'BBB-', with a recovery rating of '1'. This reflects its expectation of a very high recovery should a default event occur. The bank loans are guaranteed by Perenti Ltd. and rank equally with all other senior secured debt of the company. The 'BB' issue rating on Perenti Finance Pty Ltd.'s proposed five-year US$350 million senior unsecured notes maturing in 2029 is in line with the issuer credit rating on Perenti Ltd. These notes are also guaranteed by Perenti Ltd. and rank pari passu with all other unsecured debt. The '3' recovery rating reflects our expectation of average recovery prospects (50%, rounded estimate) should a default event occur. At the time of a hypothetical default, S&P expects adverse macroeconomic conditions to cause global end-market demand and pricing for commodities to deteriorate materially, leading to steep declines in demand for Perenti's services and multiple contract cancellations. As a result, Perenti's revenue and earnings will materially decline, impairing its ability to meet its cash interest payments. S&P values the company as a going concern because it believes that following a payment default, the company is likely to be reorganized due to the longer-term value in its established brands and business segments. Simulated default assumptions: -- Simulated year of default: 2029 -- EBITDA at emergence: A$185 million -- EBITDA multiple (engineering and construction services): 5.0x -- Gross enterprise value: A$925 million Simplified waterfall -- Net enterprise value at emergence (after 5% administrative costs): approximately A$880 million -- Estimated secured priority claims (including prepetition interest): approximately A$60 million -- Estimated net enterprise value available to secured first-lien debt: A$820 million -- Estimated secured first-lien claims (revolving facility [85% drawn] including prepetition interest): A$370 million -- Recovery rating: '1' -- Estimated net enterprise value available for unsecured debt: A$450 million -- Estimated senior unsecured claims (including prepetition interest): approximately A$840 million -- Recovery expectations: 50%-70% (rounded estimate: 50%) -- Recovery rating: '3' *All debt amounts include six months of prepetition interest. REAL RESPONSE: Second Creditors' Meeting Set for April 22 --------------------------------------------------------- A second meeting of creditors in the proceedings of Real Response Pty Ltd has been set for April 22, 2024 at 10:30 a.m. via electronic means. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 19, 2024 at 4:00 p.m. Jason Glenn Stone and Glenn Jeffrey Franklin of PKF Melbourne were appointed as administrators of the company on March 6, 2024. [*] Bronte Capital Bets Big on More Companies Going Insolvent ------------------------------------------------------------- Australian Financial Review reports that a volatile cocktail of decade-high insolvency rates and booming investor appetite has driven short-seller Bronte Capital to begin betting against corporate debt, hoping to cash in if the companies behind the loans go bust. According to AFR, Bronte founder John Hempton has told his investors that the so-called junk rally - which this year drove global equities to their best quarter since 2019 - had allowed "very suspect companies to obtain billions of dollars of debt". Because of this, Mr Hempton said the high-profile hedge fund was now actively looking to short the debt – that is, betting that the market value of the loans would fall if the companies became further distressed. "Some of this debt is rated junk, but trades on investment grade spreads," he told investors in a letter sent last month. Bronte, which typically invests in global equities, said it had been drawn to the strategy by the attractive risk-return opportunity, AFR relays. "Shorting debt is attractive because all you can lose is the coupon whilst the possible gain is up to 100 per cent of the face value of the debt," said Mr. Hempton, adding that due to the low-risk nature of the strategy, debt shorts could become as much as 40 per cent of the fund's holding. AFR relates that the companies that Bronte is targeting, however, will likely remain a mystery, with Mr. Hempton telling investors it intended to remain "very secretive" about the business involved, due to the aggressive nature of the strategy. "They rely on the company going bankrupt for us to get properly paid," he said. "We think several of these companies are at risk of going bankrupt and, in many instances, deserve to go bankrupt." According to AFR, the fund's bearish bet comes as global insolvency rates climb to decade-highs as weakening economics, high-inflation and rising interest rates squeeze company margins. In the United States, bankruptcies hit a 13-year high in 2023, according to data compiled by S&P Global Market Intelligence, with the majority in the consumer discretionary sector, AFR discloses. More than 900 Australian companies entered administration in February, up 40 per cent on the same month last year, AFR relays citing latest figures from the Australian Securities and Investments Commission. The spike marked the largest number of monthly insolvencies since October 2015. AFR relates that Sal Algeri, who leads Deloitte's Australian turnaround and restructuring team, said levels of business stress were still high, predicting insolvencies to reach 1,000 companies a month in the near term. "We still have a lot of what've been called ‘zombie companies' that still need to wash through," AFR quotes Mr. Algeri as saying. "It's not the top end of town that's failing, it's the smaller and middle market that have been impacted by the rising costs of doing business and have limited access to funds from traditional lenders." ========= C H I N A ========= CHINA VANKE: Says Authorities Haven't Verified if Unit Evade Tax ---------------------------------------------------------------- Yicai Global reports that China Vanke said the authorities have not determined whether a unit intended to evade tax after a business partner reported the cash-strapped property developer for tax evasion and other illegal activities at the start of the month. Tax inspectors have investigated 11 projects of Vanke's Yantai unit since last September, Chairman Yu Liang, President Zhu Jiusheng, and Secretary of the Board Zhu Xu told investors April 14, Yicai says. The builder sent seven employees from Beijing to assist with the investigation. Accordig to Yicai, Yantai Bairun Real Estate published an open letter to the State Taxation Administration on April 1, alleging that Vanke's senior managers, led by Yu, used the Shenzhen-based company to evade tax, misuse funds, run a loan business at high-interest rates, and engage in money laundering. Ten firms stamped the letter with their corporate seals. The business dispute between Vanke's branch in Yantai, a port city in China's eastern Shandong province, and its local partners is already in legal proceedings and the developer expects a fair ruling, it noted at the time. Given Vanke's latest statement, the allegations have been filed with the local tax authorities and an audit has begun, Ren Zhengyong, a lawyer at Wang Jing & GH Law Firm, told Yicai. It would appear that the local tax bureau has not ruled out the possibility that Vanke did not pay tax or underpaid tax, Ren said. But even if Vanke is found to have done so, it may not necessarily constitute tax evasion because according to Chinese law subjective intent must be determined, Ren added. Yicai relates that the tax bureau initially believes that Vanke is not involved in tax evasion with subjective intent, which may indicate that there may be retroactive tax to pay without a fine, or there may have been no issue at all, according to a tax inspector. Vanke previously rebutted the allegations, saying that they were "gravely unfounded" and defamatory, adding that it would take legal action to protect its rights. In a separate statement on April 14, Vanke also denied online rumors that managers above the vice president level have been barred from leaving the Chinese mainland, Yicai reports. Executives are traveling on official business as normal, it said. Zhu Jiusheng just returned from inspecting a project in Hong Kong, while co-President Zhu Baoquan is in Japan on a business trip. Vanke's contracted sales reached CNY24.5 billion (USD3.4 billion) last month, up 75 percent from the prior month but down 42 percent from a year earlier, Yicai discloses citing the company's latest data. About China Vanke China Vanke Co., Ltd. operates real estate development businesses. The Company provides housing renovation, housing loans, real estate brokerage, and other businesses. China Vanke also operates logistics, material supply, and other businesses. As reported in the Troubled Company Reporter-Asia Pacific on April 12, 2024, S&P Global Ratings lowered its long-term issuer credit rating on China Vanke Co. Ltd. to 'BB+' from 'BBB+', and its long-term issuer credit rating on China Vanke's subsidiary, Vanke Real Estate (Hong Kong) Co. Ltd. to 'BB' from 'BBB'. S&P also lowered the issue rating on Vanke HK's senior unsecured notes to 'BB' from 'BBB'. The negative outlook on China Vanke reflects S&P's expectation that the company's contracted sales could decline further over the next 12 months amid a prolonged industry downturn. China Vanke's financial position could also weaken if the company fails to execute its asset disposal plans. LONGFOR GROUP: S&P Lowers LongTerm ICR to 'BB+', Outlook Negative ----------------------------------------------------------------- S&P Global Ratings, on April 12, 2024, lowered its long-term issuer credit rating on Longfor Group Holdings Ltd. to 'BB+' from 'BBB-'. At the same time, S&P lowered the long-term issue rating on the China-based property developer's senior unsecured notes to 'BB' from 'BB+'. The negative outlook on Longfor reflects the heightened risk of a further decline in the company's contracted sales and increase in leverage over the next 12 months amid a downturn in China's property sector. Longfor's contracted sales will likely stay weak in 2024 due to a prolonged industry downturn. S&P said, "We forecast the company's total contracted sales will decline by 22% in 2024 to Chinese renminbi (RMB) RMB136 billion. This estimate is based on a sell-through of 56% (same as 2023) of estimated saleable resources of RMB240 billion at the end of 2023. We also assume the company will not add additional resources for the year. Longfor's contracted sales fell 53% year on year in the first quarter of 2024." Earnings strain to remain. S&P said, "In our view, Longfor's recognized gross profit margin will stay suppressed at 10%-11% over the next two years, compared with 11% in 2023 and 18% in 2022. At the same time, we forecast overall adjusted EBITDA margin will improve to 18%-20% in 2024-2025 from 17% in 2023 due to increased contribution from the higher-margin rental and property services business. We also forecast Longfor's revenue will decline by 13% in 2024 and 3% in 2025 driven by a drop in property development revenue of 18% in 2024 and 9% in 2025." Reduction in debt can help control leverage. S&P said, "We believe Longfor will be able to reduce its adjusted debt by about RMB10 billion each year in 2024-2025. Its growing rental and service income should temper some of the weakness in the property development business. As such, we expect Longfor's leverage, measured by the ratio of debt to EBITDA, to remain elevated at 5.5x-6.4x in 2024-2025, compared with 6.4x by the end of 2023." Solid performance of the rental property portfolio will be crucial for access to funding. S&P believes Longfor will use its commercial mall portfolio to secure asset-pledged loans for refinancing. The company will therefore need to ensure solid operating performance of its rental asset portfolio to sustain its debt servicing capability. Longfor's rental income to interest coverage was 1.34x in 2023. At the end of 2023, Longfor had a balance of RMB47 billion in commercial property loans. In the first quarter of 2024, the company obtained additional RMB18 billion of commercial property loans. Of this, RMB12 billion loans were attained by increasing the loan-to-value ratio of existing loans. This was amid the Chinese government's policy relaxation in January 2024 for the property sector. Longfor's disciplined cash flow management to support adequate liquidity. S&P estimates the company will generate about RMB10 billion of operating cash inflow in 2024, including land spending (2023 operating cash inflow: RMB3.5 billion). Cash inflow from contracted sales will likely decline by RMB36 billion in 2024. However, growth in non-property development businesses such rental and property service income, decline in construction capital expenditure and land spending, and the absence of asset-backed securities repayment in 2024 should outweigh the fall and provide some liquidity buffer. S&P said, "By our calculations, we estimate the company had accessible cash (excluding cash from escrow accounts) of about RMB31 billion as of Dec. 31, 2023, fully covering short-term debt maturities of RMB27 billion. Longfor has RMB6 billion of onshore bond maturities for the remainder of 2024, and has no offshore debt maturities during the year. With additional funding from commercial property loans, we believe near-term risks of debt repayment and refinancing remains muted. "The negative outlook on Longfor reflects our view that the company's contracted sales could further weaken over the next 12 months amid a prolonged market downturn. Longfor's leverage would worsen and its liquidity buffer could narrow in such a scenario. "We could lower the rating on Longfor if the decline in the company's sales is more than we expect, or if its margin drops well below our forecast. A further weakening of the debt-to-EBITDA ratio and the EBITDA interest coverage falling below 3x without signs of improvement could trigger a downgrade. "We may revise the outlook to stable if Longfor's sales and margins stabilize, with rental income remaining on track. At the same time, the company should maintain adequate liquidity through satisfactory cash inflow management and raising of new financing by pledging its mall portfolio." WEIFANG URBAN: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed China-based Weifang Urban Construction and Development Investment Group Co., Ltd.'s (WUCDI) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable. Fitch has also affirmed WUCDI's USD400 million 2.6% senior unsecured bond due September 2024 and USD100 million 6.0% senior unsecured bond due August 2025 at 'BB+'. The affirmation reflects Fitch's unchanged view of WUCDI's strategic importance to the Weifang government, given its policy role in urban infrastructure development, and heat and water supply. Fitch believes that support from the Weifang government is extremely likely, if needed. KEY RATING DRIVERS Support Score Assessment 'Extremely likely' Fitch considers that extraordinary support from the Weifang government to WUCDI would be 'Extremely Likely' in case of need, reflecting a support score of 35 out of a maximum 60 under Fitch's Government-Related Entities (GRE) Rating Criteria. This reflects a combination of responsibility and incentive to support factors, as assessed below. Responsibility to Support Decision Making and Oversight 'Very Strong' The government has tight control over WUCDI, which is 90% owned by the Weifang State-owned Assets Supervision and Administration Commission and 10% by Shandong Caixin Asset Operation Co., Ltd. The Weifang government appoints the company's board of directors and senior management. All major events, including strategic development, M&A, large capex and funding plans, require government approval. The company also regularly reports its financial performance, debt profile, repayment plans and project progress to the government. Precedents of Support 'Strong' Weifang government has provided significant financial support to the company, mainly via capital injections, subsidies and proceeds from special refinancing bonds and special purpose bonds, which Fitch expects to continue. WUCDI received government subsidies of over CNY300 million in 2022, special purpose bond proceeds of CNY200 million in 2022 and over CNY1 billion in special refinancing bond and special purpose bond proceeds in 2023. Incentives to Support Preservation of Government Policy Role 'Strong' The company plays an important role in urban infrastructure development as well as water and heat supply. Its default would hamper the provision of these key public services and prevent it from financing its capital spending, causing infrastructure projects delays. This could be attributed to weakness in the government's leadership and result in grave political repercussions. Contagion Risk 'Strong' The company is a major GRE in Weifang and is a frequent onshore and offshore bond market issuer. It has borrowed substantially from state-owned banks and debt capital markets over the past few years. Fitch believes a default by the company would spill over to the capital markets. This would impair the government's credibility and curtail funding for other state-owned enterprises. This provides the government with as strong incentive to provide support to the company. Standalone Credit Profile Fitch assesses the company's Standalone Credit Profile at 'b', based on a 'Midrange' risk profile and a 'b' financial profile. Risk Profile: 'Midrange' WUCDI's 'Midrange' risk profile reflects 'Midrange' revenue risk, expenditure risk and liability and liquidity risk. Revenue Risk: 'Midrange' Fitch assesses demand and pricing characteristics at 'Midrange'. Demand is driven by the company's stable urban infrastructure, land sales, heat and water supply business and diversified revenue source. As such, Fitch expects revenue to be steady. Pricing for the public sector business is set by the government and the company's price-setting power is limited, but this is mitigated by the government subsidies that the company receives. Expenditure Risk: 'Midrange' Fitch assesses operating costs, supply risk and investment planning at 'Midrange'. The company has well-identified cost drivers and adequate supply of resources and labour in terms of amount, cost and timing. It also has satisfactory mechanisms for investment planning and major capex requires government approval. Liabilities and Liquidity Risk: 'Midrange' Fitch assesses debt and liability characteristic at 'Midrange'. WUCDI's debt is concentrated in the short term, with debt maturing within a year accounting for over half of total debt at end-2023. This is mitigated by WUCDI's good access to bond markets and relationships with state-owned and local banks. Financial Profile 'b' Its financial profile assessment is driven by its forward projection of adjusted net debt/EBITDA as the primary metric. Fitch expects adjusted net debt/EBITDA to be around 47x in the next three to five years, indicating a 'b' leverage assessment. Derivation Summary The company's rating is derived from the four factors under its GRE Rating Criteria, combined with the 'b' Standalone Credit Profile under its Public Sector, Revenue-Supported Entities Rating Criteria. Debt Ratings WUCDI's senior unsecured bonds are rated at the same level as its Long-Term Foreign-Currency IDR, as they were directly issued by WUCDI and constitute its unsecured and unsubordinated obligations, and rank pari passu with all of its other unsecured and unsubordinated debt. Issuer Profile WUCDI, established in 2016, is a major GRE in Weifang, a city in Shandong province. Its businesses include urban infrastructure development, land sales, trading, heat and water supply. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A lowering of Fitch's credit view of Weifang government's ability to provide support or other legitimate resources allowed under China's policies and regulations. A significant weakening of the Weifang government's responsibility or incentive to support WUCDI. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upward revision of Fitch's credit view of Weifang government's ability to provide support or other legitimate resources allowed under China's policies and regulations. A stronger assessment of Weifang government's responsibility or incentive to support WUCDI. 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 Prior ----------- ------ ----- Weifang Urban Construction and Development Investment Group Co., Ltd. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ZIJIN MINING: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR --------------------------------------------------------------- Fitch Ratings has affirmed Zijin Mining Group Co., Ltd's Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating at 'BB+'. The Outlook on the IDR is Stable. The ratings on Zijin are supported by a well-diversified product portfolio of precious and base metals and diversified operations, an average cost position in the second quartile of the global cost curve and high-yielding assets with a long mine life. However, Zijin's rating headroom is limited due to its aggressive acquisition appetite and accompanying large capex, which, if not managed properly, can result in prolonged high leverage. The Stable Outlook reflects Fitch's expectation that Zijin will continue generating strong operational cash flow, which will aid its capex and acquisitive appetite within Fitch's expectations. KEY RATING DRIVERS Strong EBITDA on Higher Output: Fitch expects Zijin's EBITDA will remain strong at CNY47 billion-55 billion in 2024-2026, on higher gold and copper output, despite its lower mid-cycle price assumptions. The production output additions would be mainly contributed by expansion of existing projects such as Julong in Tibet and Timok in Serbia, and newly acquired projects that enter the production phase. Zijin's 2023 EBITDA rose to CNY42 billion in 2023, from CNY40 billion in 2022, on higher gold and copper production and a favourable gold price, despite a modest correction in copper prices. Higher Leverage; Limited Rating Headroom: Fitch expects Zijin's net leverage to remain high at 2.5x-3.0x in 2024-2026 due to hefty capex and potential investments, thus limiting its rating headroom. Net leverage, measured by net debt to EBITDA, rose to 3.1x in 2023, from 2.7x in 2022, mainly driven by large capex, acquisitions and equity investment outflow, despite a strong profit. Fitch expects Zijin to stick to its acquisitive strategy to fulfill its long-term goal of becoming a top miner globally by 2030. Zijin spent a hefty CNY12 billion in 2020 and CNY26.3 billion in 2022 on acquisitions, resulting in a spike in leverage to 3.5x by end-2020 and 2.7x by end-2022. Fitch expects an annual CNY5 billion for potential acquisitions during 2024-2026 in its rating case; however, any larger-than-expected acquisitive outflow would put pressure on Zijin's ratings. Diversified Low-Cost Producer: Zijin has a diversified production portfolio across precious and base metals, as well as geographically. Fitch expects its product diversification to further enhance with the ramp-up of its newly acquired lithium assets from 2025 and onwards. In addition, its copper and gold cost position is fairly low, ranking in the second quartile on the global cost curve. The company also has an average mine life of 20 years and above for major copper mines, and 10 years for gold mines. Limited Country Risk: Fitch does not consider the location of some of Zijin's assets in higher risk countries, such as the Democratic Republic of Congo and Argentina, to be a rating constraint at the current level, as half of its profits and assets are contributed from China. Meanwhile, a majority of Zijin's overseas exposure comes from Australia (AAA/Stable), Serbia (BB+/Stable) and Colombia (BB+/Stable). Zijin's acquisitions during 2020-2023 have increased its asset base, along with its geographical diversification. The proportion of its overseas mined copper and gold stayed high at 56% and 64%, respectively, of Zijin's total mined output in 2023 (2022: 57% and 59%). DERIVATION SUMMARY Zijin has smaller operational scale and lower profitability compared with one of the top-three global copper producers, Freeport-McMoRan Inc. (FCX, BBB/Stable), which owns world-class mines with competitive costs. Zijin also has weaker financial structure despite better asset diversification than FCX. Zijin's ratings are higher than the Standalone Credit Profile of 'bb' of Corporacion Nacional del Cobre de Chile (CODELCO, BBB+/Stable). The one-notch difference reflects Zijin's better cost position and a more diversified operation, even though CODELCO has a stronger market position as the world's top copper producer by production. Zijin is rated one notch lower than Canada-based Teck Resources Ltd. (BBB-/Stable). Both have similar business profiles in terms of commodity diversification and solid cost positions. However, Zijin's fast expansion means it has a weaker capital structure than Teck, which will have a net debt/EBITDA ratio of 1.5x-2.5x during 2024-2025. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer - Mined copper average selling price of CNY50,600, CNY48,000 and CNY45,500 per t in 2024, 2025 and 2026, respectively (2023: CNY51,156 per t); mined gold average selling price of CNY398, CNY378 and CNY336 per gram in 2024, 2025 and 2026, respectively (2023: CNY406 per gram); - Mined copper sales volume of 870,000t in 2024, 930,000t in 2025 and 1.04mt in 2026 (2023: 810,737t); mined gold sales volume of 73t in 2024, 78t in 2025 and 83t in 2026 (2023: 66.7t); - Capex of CNY23 billion in 2024, CNY29 billion in 2025 and CNY27 billion in 2026 (2023: CNY30 billion); - Annual investment outflow of CNY5 billion in 2024-2026; - Dividend payout ratio of 30% a year in 2024-2026. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Transition away from the highly acquisitive growth strategy. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Net debt/EBITDA above 3.0x for a sustained period. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Zijin had CNY19.2 billion in readily available cash at end-2023, against CNY38.6 billion in short-term debt. It has a multitude of onshore and offshore funding sources, as well as ample liquidity from major banks, with CNY160 billion in unused bank credit facilities at end-2023. It is an active onshore bond issuer. ISSUER PROFILE Zijin in 2023 was one of the world's top-ten copper and gold miners, and fourth-largest zinc miner, by consolidated output. Zijin has more than 30 operating assets covering copper, gold, zinc, lead, iron ore, silver and lithium in 16 countries across Asia, Europe, Africa, Australia and South America. SUMMARY OF FINANCIAL ADJUSTMENTS Time deposits and government bond reverse repurchases, totalling CNY1.5 billion at end-2023, are treated as readily available cash. 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 Prior ----------- ------ ----- Zijin Mining Group Co., Ltd LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ================= H O N G K O N G ================= LIMAS COMMODITIES: TriLinc Global Marks $22.2MM Loan at 31% Off --------------------------------------------------------------- TriLinc Global Impact Fund, LLC has marked its $22,219,566 loan extended to Limas Commodities House Limited to market at $15,302,209 or 69% of the outstanding amount, as of December 31, 2023, according to a disclosure contained in TriLinc Global's Form 10-K for the Fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission on March 29, 2024. TriLinc Global is a participant in a Senior Secured Term Loan to Limas Commodities House Limited. The loan accrues interest at a rate of 11.5% per annum. The loan matured last June 30, 2023. TriLinc Global classified the loan as non-accrual. TriLinc Global Impact Fund, LLC was organized as a Delaware limited liability company on April 30, 2012 and formally commenced operations on June 11, 2013. As a result of the Company's LLC structure, the Company's unit holders have limited legal and financial liability for the obligations or debts of the Company. The Company makes impact investments in Small and Medium Enterprises, known as SMEs, which the Company defines as those businesses having less than 500 employees, primarily in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. The fund is lead by Chief Executive Officer Gloria S. Nelund and Chief Financial Officer Mark A. Tipton. The fund can be reach through: TriLinc Global Impact Fund, LLC 1230 Rosecrans Avenue, Suite 605 Manhattan Beach, CA 90266 Tel: (310) 997-0580 Limas Commodities House Limited is a resource trader. ========= I N D I A ========= A KUMAR: CRISIL Keeps B Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of A Kumar Reality Developers (AKRD) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 10 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AKRD for obtaining information through letter and email dated March 15, 2024 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 AKRD, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AKRD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AKRD continues to be 'CRISIL B/Stable Issuer Not Cooperating'. AKRD was set up as a proprietorship firm of Mr Sanwar M Khandelwal in 2005, to undertake residential and commercial real estate projects in Mumbai. region. The firm is a part of the Mumbai-based Kumar Associates group. AGGARWAL ASSOCIATES: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Aggarwal Associates - Mansa (AAM) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6 CRISIL D (Issuer Not Cooperating) Cash Credit 4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AAM for obtaining information through letter and email dated March 15, 2024 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 AAM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AAM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AAM continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Aggarwal Associates was formed as a partnership firm in 1995, by Mr Prem Nath Garg and his son, Mr Amit Garg. The firm undertakes civil contracts for government entities in Mansa (Punjab). AGRAWAL TECHNICAL: Ind-Ra Keeps BB- Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shri Agrawal Technical & Education Society's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB-/ Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR149 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating; and -- INR181.7 mil. Term loan due on December 31, 2026 maintained in non-cooperating category with IND BB-/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. About the Company Registered under the Madhya Pradesh Society Registration Act, 1973, Shri Agrawal Technical & Education Society was set up by Sanjeev Agarwal in June 2002. ARUNACHALA WEAVING: Ind-Ra Moves BB Rating to Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Arunachala Weaving Mills' (AWM) bank facilities' ratings to the non-cooperating category. The issuer did not participate in the rating review despite continuous requests and follow-ups by the agency through phone calls and emails. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The ratings will now appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR200 mil. Term loan due on November 2028 migrated to non- cooperating category with IND BB/Stable (ISSUER NOT COOPERATING) rating; and -- INR150 mil. Fund-based working capital facilities migrated to non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: Issuer did not cooperate; based on the best available information. The ratings were last reviewed on February 6, 2023. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with AWM while reviewing the ratings. Ind-Ra had consistently followed up with AWM over emails starting from November 3, 2023, apart from phone calls. The issuer has also not been submitting their monthly no default statement from the last two months. Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit ratings of AWM, as the agency does not have adequate information to review the ratings. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. About the Company AWM was incorporated in 2005 by V.K. Prabhu Muthukannan and P.Punitha as a partnership firm. The company manufactures grey fabrics, which are used for garments and industrial purposes. ARYAN HOSPITAL: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Aryan Hospital (AH) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.3 CRISIL D (Issuer Not Cooperating) Term Loan 4.2 CRISIL D (Issuer Not Cooperating) Term Loan 2.4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AH for obtaining information through letter and email dated March 15, 2024 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 AH, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AH is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AH continues to be 'CRISIL D Issuer Not Cooperating'. AH, a partnership firm set up in 2005, operates a 100-bed multi-specialty hospital at Gorakhpur in Uttar Pradesh. The firm commenced operations in 2006 and is promoted Mr D P Singh and his wife Ms Usha Singh. BALU IRON: Ind-Ra Gives BB Bank Loan Rating, Outlook Stable ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Balu Iron and Steel Company's (BISCO) debt instruments as follows: -- INR910 mil. Fund-based/non-fund based working capital limits^ assigned with IND BB/Stable/IND A4+ rating; -- INR213.47 mil. Term loan due on April 20, 2026 assigned with IND BB/Stable rating; and -- INR176.53 mil. Proposed fund-based working capital limits^ assigned with IND BB/Stable rating. ^ Details in Annexure Analytical Approach Ind-Ra has taken a standalone view of BISCO to arrive at the ratings. Detailed Rationale of the Rating Action The ratings reflect BISCO's modest profitability margins, leveraged capital structure, moderate debt protection metrics and stretched liquidity position. The firm is also exposed to risks associated with its partnership nature of constitution of the entity. However, the ratings are supported by BISCO's large scale of operations, established market position and its longstanding association with established suppliers. Detailed Description of Key Rating Drivers Leveraged Capital Structure; Moderate Debt Protection Metrics: BISCO had a high net leverage (total net debt/EBITDA) of 6.72x in FY23 (FY22: 6.50x) owing to the firm's dependence on external borrowings to fund its working capital requirement. The increase in net leverage in FY23 was due to a decline in profitability to INR179 million (FY22: INR205.2 million). The firm's total debt comprises of working capital borrowings and vehicle loans. The credit metrics were average as indicated by interest coverage (EBITDA/interest)of 1.63x in FY23 (FY22: 1.99x). Ind-Ra expects the net leverage to remain above 4.0x and the interest coverage to be around 2.0x in FY24 and FY25 on the back of modest profitability. The ratings are also constrained by corporate guarantees given to other group entities and high group leverage of 7.85x. Any further increase in the group leverage would remain a key monitorable. Thin EBITDA Margins: The firm's profitability has been fluctuating in the past and the EBITDA margins weakened to 2% in FY23 (FY22: 4.0%; FY21: 4.3%) due to a correction in steel prices. The profitability is thin on account of its low value addition trading nature of business, along with intense competition in the market. Partnership Nature of Constitution: The firm is exposed to inherent risks of capital withdrawal by the partners and the firm being dissolved upon the death/retirement/insolvency of the partners, given its partnership nature of constitution. Highly Fragmented Industry; Intense Competition: The iron and steel industry is highly fragmented and competitive with the presence of a large number of organized and unorganized players. Intense industry competition, coupled with the commoditized nature of the products and the firm's association with established suppliers such as JSW Steel Limited ('IND AA'/Stable), Rashtriya Ispat Nigam Limited (debt rated at 'IND BB+'/Positive/'IND A4+'), Steel Authority of India Limited (debt rated at 'IND AA'/Stable/ 'IND A1+'), among others, limits the firm's pricing flexibility and bargaining power. Established Market Position; Longstanding Association with Established Suppliers: BISCO functions as an exclusive dealer to JSW Steel since 2013 in distributing steel products such as thermo-mechanically treated bars, hot-rolled plates, cold-rolled steel and other steel products. The firm distributes these products in 25 districts of Tamil Nadu. Being the exclusive dealer of JSW Steel, which is one of the largest steel producers in the country, has enabled BISCO to consistently expand its business. Large Scale of Operations; Sustained Increase in Revenue: The firm's revenue grew at a CAGR of 33.85% to INR9,120.36 million over FY21-FY23 (FY23: up 77.5% yoy) owing to an increase in sales volume by 85.28%. Liquidity Stretched The use of the firm's working capital limits has been high and there is a limited cushion between cash accruals and debt repayments over the medium term. At FYE23, BISCO had vehicle loans of INR375 million (FYE22: INR471 million; FYE21: INR323 million) and working capital borrowings of INR838 million (INR865 million; INR847 million), against free cash balance of INR13 million (INR2 million; INR36 million). The average fund-based limit utilization stood at 84.26% during the trailing 12 months ended November 2023 and the maximum utilization stood as high as 93%. Ind-Ra expects the utilization levels to have remained at similar levels in February 2024. The free cash flow turned positive to INR23 million in FY23 (FY22: negative INR80 million; FY21: negative INR175 million), despite the decline in profitability, on the back of higher other income. Rating Sensitivities Positive: An improvement in the profitability margins, along with an improvement in the liquidity position and the credit metrics, with the interest cover exceeding 2.0x, on a sustained basis could lead to a positive rating action. Negative: A decline in the scale of operations, resulting in deterioration in the credit metrics, with the interest coverage reducing below 1.25x and/or a weakening of the liquidity position, all on a sustained basis, could lead to a negative rating action. About the Company Coimbatore, Tamil Nadu-based BISCO was formed in 2013 as a partnership firm. The firm is engaged in the trading of mild steel products such as thermo-mechanically treated RE-bars, hot-rolled, cold rolled, color-coated products and cement. It is an authorized dealer for JSW Steel. BISCO is a part of RISCO group of entities comprising Ramesh Iron and Steel Company India Private Limited (RISCO), M.S.R Iron and Steel Industries India Private Limited and BISCO. The group is engaged in the trading and distribution of iron and steel products to various sectors and has an established dealer distribution network of more than 1,000 dealers. CHHATTISGARH SONDIHA: Voluntary Liquidation Process Case Summary ---------------------------------------------------------------- Debtor: Chhatisgarh Sondiha Cost Company Limited Flat No. 103, Block E, Park Residency Telibudha Rapur Chandigarh India 492000 Liquidation Commencement Date: April 3, 2024 Court: National Company Law Tribunal New Delhi Bench Liquidator: Mr. Kamlesh Kumar Sharma D-9, Ground Floor, Lane No.5 Mandhar Enclave, New Delhi-110045 Email: vcloud@gmail.com Tel No: 9971992095 Last date for submission of claims: May 2, 2024 COGNOTA HEALTHCARE: Ind-Ra Withdraws B- LongTerm Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Cognota Healthcare Private Limited's Long-Term Issuer Rating as follows: -- The IND B-/Stable rating on the Long-Term Issuer Rating is withdrawn. Detailed Rationale of the Rating Action Ind-Ra is no longer required to maintain the ratings, as the agency has received a withdrawal request from the issuer. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. About the Company Cognota Healthcare provides information technology consultation services to the healthcare industry. It also executes internet of things projects and machine programming. The company's registered office is located in Pune. Sanjeev Diwadkar and Yogini Diwadhar are the promoters. CROSS TRADE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Cross Trade Links (CTL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 3.5 CRISIL D (Issuer Not Cooperating) Packing Credit 3.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CTL for obtaining information through letter and email dated March 15, 2024 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 CTL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CTL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CTL continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2000 as a proprietorship firm by Mr Ashok Sharma, CTL manufactures ready-made garments such as T-shirts, ladies' dresses, and office wear, and exports entire production to South Africa, the United States of America and the United Arab Emirates. DATT REALINFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Datt Realinfra Private Limited (DRPL) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 9 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with DRPL for obtaining information through letter and email dated March 15, 2024 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 DRPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DRPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DRPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. DRPL was incorporated in 2012 and is engaged in the development of residential real estate in Jabalpur, Madhya Pradesh. DRPL is promoted and is currently being run by Mr.Sudhir Datt. DESMI EQUIPMENTS: CRISIL Keeps C Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Desmi Equipments Private Limited (DEPL) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 3.9 CRISIL C (Issuer Not Cooperating) Overdraft Facility 5 CRISIL C (Issuer Not Cooperating) Proposed Long Term 6.1 CRISIL C (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with DEPL for obtaining information through letter and email dated March 15, 2024 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 DEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DEPL continues to be 'CRISIL C Issuer Not Cooperating'. Incorporated in 1997 by Mr. Deepak Achuthan, DEPL manufactures metal enclosures and wired panel assemblies in mild steel, stainless steel, aluminium alloy and corten steel. The manufacturing facility is located in Mumbai. DINESH OILS: Ind-Ra Keeps D Rating in NonCooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Dinesh Oils Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR600 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR1.082 bil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Term loan maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Incorporated in 1986, Dinesh Oils primarily manufactures refined edible oils, mainly refined palm olein oil and refined palm oil, and vanaspati. ECHANDA URJA: CARE Reaffirms B+ Rating on INR311.47cr LT Loan ------------------------------------------------------------- CARE Ratings has reaffirmed the ratings on certain bank facilities of M/s Echanda Urja Private Limited (EUPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 311.47 CARE B+ Reaffirmed Facilities Rationale and key rating drivers The reaffirmation in the long term rating of EUPL factors in the continued delays in repayments of its term loan. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Timely servicing of debt obligations (i.e., principal and interest) for minimum 3 continuous months. * Improvement in operational performance of all operational capacities on a sustained basis. * Positive outcome in favor of the parent company with respect to the pending investigations. Analytical approach: Standalone Detailed description of the key rating drivers: Key weaknesses * Ongoing delays in servicing its debt repayments: The company continues to default in repayments of its term loan i.e on interest and principal repayments for the month of January, February and March, 2024. Liquidity: Poor The company has defaulted in its term debt repayment since March 31, 2023 and the delays continue to remain till date. Incorporated on November 12, 2014 EUPL is promoted by NuPower Renewable Private Limited which holds 70.01% equity shares as on March 31, 2023 in the company and balance equity shares are held by group captive consumers as required under Group Captive Scheme (GCS). Further, NRPL also holds 100% of the 0.1% Compulsorily Convertible Cumulative Participating Preference Shares (CCCPS) in the company. The company has operational wind power generation capacity of 100.50 MW located in Tirunelveli, Tamil Nadu. ELECTRO POLYCHEM: ICRA Keeps B- Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has kept the Long-Term and Short-Term ratings of Electro Polychem Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B- (Stable); ISSUER NOT COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 9.00 [ICRA]B- (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Cash Credit to remain under 'Issuer Not Cooperating' category Long Term- 9.00 [ICRA]B- (Stable) ISSUER NOT Fund Based- COOPERATING; Rating continues Term Loan to remain under 'Issuer Not Cooperating' category Long Term/ (3.00) [ICRA]B-(Stable)/[ICRA]A4; Short Term- ISSUER NOT COOPERATING; Interchangeable Rating Continues to remain under issuer not cooperating category As part of its process and in accordance with its rating agreement with Electro Polychem 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. Electro Polychem Limited was incorporated in 1995 by the Founder and Group Chairman of Electro Group of Companies, Mr. Brij Mohan Khandelwal. EPL trades in different types of polymers including poly-vinyl chloride resins, poly propylene, polyethylene, fillers and master batches, among others. The company procures its products in bulk from both domestic markets and through imports and sells the same to its customers spread across Southern India with major concentration of sales in Tamil Nadu. EUROLIFE HEALTHCARE: Ind-Ra Keeps D Rating in NonCooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Eurolife Healthcare Pvt. Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR620 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR100 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR287.7 mil. Term loan issued on June 30, 2022 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Eurolife Healthcare was established in 2001 by Sandeep Toshniwal. The Mumbai-based specialty pharmaceutical company manufactures and distributes a portfolio of healthcare formulations, intravenous infusions, ophthalmic, sterilized water for injections, nebules, tablets, capsules, ointment and creams. FRIENDS LAND: ICRA Withdraws B Rating on INR100cr LT Loan --------------------------------------------------------- ICRA has withdrawn the ratings assigned to the bank facilities of Friends Land Developers at the request of the company. The Key Rating Drivers and their Description, Liquidity Position, Rating Sensitivities, Key financial indicators have not been captured as the rated instruments are being withdrawn. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 100.00 [ICRA]B (Stable); ISSUER NOT Unallocated COOPERATING; Withdrawn FLD is a partnership firm promoted by Mr. Vijay Kumar Jindal of the SVP Group. Other key partners in the firm include SVP Builders India Limited (SVPBIL), SVP Developers P Limited, SV Liquor Limited, and Mr. Pawan Jindal. Earlier, the flagship entity of the Group, SVPBIL [rated [ICRA]B (Stable); ISSUER NOT COOPERATING], was a key stakeholder in FLD and had an 80% share in the profits of the latter. This was, however, changed subsequently and SVPBIL's share in FLD's profits is now 10%. The firm is undertaking development of a residential real estate project, Gumlmohar Greens Phase 3, which covers a saleable area of about 0.24 million square feet near Hindon Air Base, Ghaziabad. For this purpose, it has extended power of attorney to SVPBIL for the execution and marketing of the project. SVPBIL is the flagship entity of the SVP Group, which has interests in residential and commercial real estate, education, liquor, and hospitality sectors. The Ghaziabad-based Group was founded in 1992 and has so far completed about 13 residential real estate projects covering an area of about 2.5 million square feet. SVPBIL was established by the Jindal family. GCRG MEMORIAL: Ind-Ra Keeps D Rating in Non-Cooperating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained GCRG Memorial Trust's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR115 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR19.5 mil. Fund-based limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR105.8 mil. Term loan maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. About the Company GCRG Memorial Trust was founded by Chairman Abhishek Yadav and Mohit Yadav (secretary) in May 2008 and is incorporated under the Indian Trust Act, 1882. GYANMANJARI CAREER: Ind-Ra Assigns BB Loan Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has rated Gyanmanjari Career Academy (GCA)'s proposed term loans as follows: -- INR400 mil. Proposed term loan assigned with IND BB/Stable rating. Analytical Approach Ind-Ra has taken a standalone view of GCA while assigning the rating. Detailed Rationale of the Rating Action The rating reflects GCA's small scale of operations in FY23 and Ind-Ra's expectation of modest credit metrics from FY25. The firm did not have any outstanding debt till FY23. Since GCA is operating at full capacity, it has planned a capex of INR496.9 million during FY25 for establishing another coaching center and hostel. The capex will to be funded by INR372.5 million of proposed term loan and the balance through internal accrual and unsecured loans from promoters. Ind-Ra expects the scale of operations to improve in medium term post the capex completion. However, the rating is supported by GCA's healthy EBITDA margin, which is likely to remain at similar levels in the near-to-medium term on account of similar nature of operations. Detailed Description of Key Rating Drivers Small Scale of Operations: GCA's scale of operations is small as indicated by revenue of INR158.92 million in FY23 (FY22: INR134.4 million). The growth in revenue in FY23 was majorly on account of an increase in enrollments, supported by a marginal increase in fees. GCA achieved revenue of INR157.48 million during 10MFY24. The firm is operating at full capacity and is undertaking capex to increase student capacity by 1,000 to 3,000, along with setting up a hostel for 1,600 students. Ind-Ra expects the revenue to improve in FY24 and medium term on the back of an increase in enrollments, along with additional revenue post capex completion from FY25. Credit Metrics to Moderate from FY25: GCA will undertake capex of INR496.9 million during FY25 for establishing another coaching center and hostel, to be funded through INR372.5 million proposed term loan and balance through internal accrual and unsecured loans from promoters. The firm is likely to receive term loan sanction by end-FY24. The operation of the new facility is likely to commence from April 2025. In FY23, GCA did not have outstanding debt. Ind-Ra expects the credit metrics to moderate from FY24 due to the term loan and associated interest cost. Healthy EBITDA Margins: The firm's EBITDA margins were 26.16% in FY23 (FY22: 27.7%) with a return on capital employed of 191.1% (175.1%). However, in FY23, the margins declined due to an increase in salaries. Ind-Ra expects the margins to remain at similar levels in medium term given the nature of operations. Experienced Promoters: The promoters have around two decades of experience in this industry, which has helped it establish trust among the students. The firm has planned a capex for which the debt is yet to be tied up. GCA does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. The cash flow from operations increased to INR43.53 million in FY23 (FY22: INR39.21 million) due to a rise in the EBITDA to INR41.58 million (INR37.23 million). Consequently, the free cash flow improved to INR40.35 million in FY23 (FY22: INR38.03 million). The cash and cash equivalents stood low at INR5.24 million at FYE23 (FYE22: INR2.75 million). Rating Sensitivities Negative: A decline in the scale of operations and/or deterioration in the liquidity profile or delay in timely completion of the planned capex, leading to delay in the commencement of operations of the additional facility, thereby affecting the debt serviceability could be negative for the rating. Positive: Timely completion of capex leading to a substantial increase in the scale of operations, along with an improvement in the overall credit metrics with the net leverage below 4.5x and an improvement in liquidity profile, all on a sustained basis, could lead to a positive rating action. About the Company Established in 2006, GCA provides coaching for IIT-JEE & NEET entrance examination to 11th and 12th grade students in Bhavnagar, Gujarat. Mansukh M Nakrani, Avinash B Patel and Vikram J Purohit are the promoters. INOA PROPERTIES: CARE Reaffirms B+ Rating on INR70.0cr LT Loan -------------------------------------------------------------- CARE Ratings has reaffirmed the ratings on certain bank facilities of INOA Properties & Developers LLP (INOA), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 70.00 CARE B+ Reaffirmed Facilities Rationale and key rating drivers The rating assigned to the bank facilities of INOA is primarily constrained by project implementation risk being nascent stage for the ongoing project, pending financial tie-up, constitution as a limited liability partnership firm with inherent risk of withdrawal of capital and risk associated with cyclical nature of real estate industry. These rating weaknesses are partially offset by experienced promoters with track record of developing and managing retail assets, favourable location of the project, receipt of majority of approvals, however, sanction plan yet to get approved and agreement to lease signed with Lulu International Shopping Malls Private Limited (LISM; rated CARE BBB+; Stable/CARE A2) for leasing of the mall post completion. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Closure of financial tie-up for the project along approval of sanction plan and sufficient progress in the project execution Negative factors * Inability of the firm in tying up term debt with banks/financial institution * Time and cost overrun for the project Analytical approach: Standalone Outlook: Stable CARE Ratings Limited (CARE Ratings) believes that the firm will benefit from experience of the partners in developing retail assets and agreement to lease signed with LISM providing revenue visibility in the long term. Detailed description of the key rating drivers: Key weaknesses * Project implementation risk being nascent stage for the ongoing project: The firm is constructing a shopping mall (B+G+2) having built up area of 4.28 lsf and carpet area of 2.27 lsf (lakh sqft) in Pathaikara, Perinthalmanna, Kerala. The cost of construction is INR101.61 crore funded through term loan of INR71 crore and promoter's contribution of INR30.61 crore. Out of total project cost of INR101.61 crore, the firm has already incurred INR14.12 crore till Feb 29, 2024 funded through promoter's contribution. The construction of shopping mall is expected to get completed by Dec 2025. * Pending financial tie-up: The financial tie is pending however, the firm is in talks with the lenders for sanction of term loan of INR71 crore for the project. * Constitution as a limited liability partnership firm with inherent risk of withdrawal of capital: INOA's credit risk profile is constrained by its partnership constitution wherein there is an inherent risk of withdrawal of the capital which may affect its financial flexibility in the eventuality of occurrence of such event. Further, any substantial withdrawals from capital account would impact the net worth and thereby the financial profile of the firm. * Risk associated with cyclical nature of real estate industry: Life cycle of a real estate project is long and the state of the economy at every point in time, right from land acquisition to construction to actual delivery, has an impact on the project. The real estate sector in India is highly fragmented with many regional players, who have significant presence in their respective local markets which in turn leads to intense competition within the industry. This sector is also sensitive to the macroeconomic cycle and interest rates. Adverse movement in interest rate affects the real estate players in both ways – by hampering demand as well as increasing the cost of construction. Key strengths * Experienced Promoters with long track record of developing and managing retail assets: The firm is promoted by designated partner cum Managing Director, Mr. A K Abdul Aziz who is a real estate developer with experience of more than 25 years. He has executed and delivered more than 40 buildings/projects at Thrissur, out of which 25 buildings are under his ownership. The day-to-day operations of the firm will be looked after by Mr. Abdul Azeez along with the support from a team of experienced professional. * Favourable location of the project: The project (shopping mall) is getting constructed in major town of Malappuram district of Kerala, Perinthalmanna. The location has emerged as a prominent real estate destination witnessing real estate activity in various segments such as group housing, educational institutions, hospitals, retail etc. The area is witnessing high demand on account of major NRI investments dominated by NRI population. * Receipt of required approvals, however, sanction plan is yet to get approved: The firm has received approvals like Environment clearance and clearance from Fire and Pollution Control Board. The revised sanction plan is under process and yet to be approved. * Agreement to lease signed with LISM: INOA has signed agreement to lease with LISM for leasing the shopping mall. The monthly rental from LISM will start from October 2026 (rent free period of 9 months from date of handover i.e December 2025). The lease term will be 20 years with lock in period of 12 years from the date of lease agreement (which is yet to get signed) and rent escalation clause of 17% in every five years. As per the MOU, LISM can also sub-lease further to other brands as part of retail business. LISM is a part of Lulu group promoted by Mr. Yusuff Ali and Mr. Ashraf Ali (brother of Mr. Yusuf Ali) who operates chain of 258 hypermarkets and malls in 23 countries especially in Middle East under the brand name of Lulu with an estimated turnover of USD 8.4 bn. Lulu commands strong brand recognition in the region it operates. Liquidity: Stretched The liquidity profile of the firm is stretched due to pending financial tie up of term loan and considering the nascent stage of the project, the overall liquidity position looks stretched. However, the firm is in talks with the lenders for sanctioning of term loan of INR71 crore. Out of expected promoter's contribution of INR30.61 crore, the partners have already infused INR14.12 crore till Feb. 29, 2024. Incorporated in 2014, INOA Properties & Developers LLP (INOA) is engaged in real estate development projects. The firm is promoted by designated partner cum Managing Director, Mr. A K Abdul Aziz who is a real estate developer with experience of more than 25 years. He has executed and delivered more than 40 buildings/projects at Thrissur, out of which 25 buildings are under his ownership. Mr. Mohamed Sherif (partner and executive director), is a NRI businessman and experience of more than two decades in real estate through company name Kentz Inn Commercial Complex Ltd. ISWARYA TEXTILE: Ind-Ra Hikes Loan Rating to BB+, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Sree Iswarya Textile Private Limited's (SITPL) bank facilities to 'IND BB+' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR270 mil. Term loan due on October 2024 upgraded with IND BB+/Stable rating; -- INR30 mil. Fund-based working capital limits Long-term rating upgraded and Short-term rating affirmed with IND BB+/Stable/ IND A4+ rating; and -- INR150 mil. Non-fund-based working capital limits affirmed with IND A4+ rating. Analytical Approach Ind-Ra continues to take a standalone view of SITPL to arrive at the ratings. Detailed Rationale of the Rating Action The upgrade reflects Ind-Ra's expectation for an increase in SITPL's revenue in FY24, supported by an expected growth in the textile industry. In FY24, Ind-Ra expects SITPL's credit metrics to improve due to the absence of any debt-led capex plans. The ratings are, however, constrained by the company's modest EBITDA margins. Detailed Description of Key Rating Drivers Modest EBITDA Margin: SITPL's modest EBITDA margins fell to 15.78% in FY23 (FY22: 26.40%) owing to an increase in the power and fuel expenses. The return on capital employed stood at 4% in FY23 (FY22: 18.6%). Ind-Ra expects the EBITDA margin to remain stable in FY24. Significant Improvement in Revenue Likely in FY24: In FY23, SITPL's revenue remained largely stable at INR996.94 million (FY22: INR963.81 million). The scale of operations is medium. The textiles industry suffered a decline in the cotton demand in FY22-23. During 7MFY24, the company achieved a revenue of INR571.87 million. During FY24 and FY25, Ind-Ra expects the company's revenue to improve as the textiles industry is likely to grow. Average Credit Metrics: SITPL's gross interest coverage (operating EBITDA/gross interest expense) declined to 2.89x in FY23 (FY22: 4.96x), due to a decrease in the operating EBTIDA to INR175.27 million (INR285.96 million). The net financial leverage improved to (adjusted net debt/operating EBITDA) to 0.94x in FY23 (FY22: 1.10x) due to decrease in the debt level to INR198.29 million (INR339.89 million). In FY24 and FY25, Ind-Ra expects the credit metrics to improve due to the absence of any debt-led capex plans. Experienced Promoters: The ratings continue to be supported by SITPL's promoters' experience of over three decades in the textile industry, which has led to established relationships with its customers and suppliers. Liquidity Stretched: SITPL does not have any capital market exposure and relies on single banks and financial institutions to meet its funding requirements. SITPL's average maximum utilization of the fund-based limits was 96% and that of its non-fund-based limit was 21.14% during the 12 months ended January 2023. The cash flow from operations turned positive at INR147.98 million in FY23 (FY22: negative INR74.52 million) and the free cash flow turned positive at INR6.26 million (negative INR74.52 million) due to favorable changes in the working capital. The cash and cash equivalents stood at INR32.95 million at FYE23 (FYE22: INR24.23 million). The company has repayment obligations of INR30.3 million in FY24 and INR25.2 million in FY25. Rating Sensitivities Negative: Significant deterioration in the scale of operations, leading to deterioration in the credit metrics with the net leverage being above 4.5x and/or deterioration in the liquidity profile, 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, all on a sustained basis, will be positive for the ratings. About the Company SITPL, established in 1996, manufactures cotton yarn, SITPL is based out Rajapayalum Tamil Nadu. Its day-to-day operations are managed by Sethurama Murugan. ITSHASTRA PRIVATE: Ind-Ra Withdraws B- Bank Loan Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Itshastra (India) Private Limited's Long-Term Issuer Rating as follows: -- The IND B-/Stable rating on the Long-Term Issuer Rating is withdrawn. Detailed Description of Key Rating Drivers Ind-Ra is no longer required to maintain the rating, as the agency has received a withdrawal request from the issuer. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. About the Company Incorporated in 2000, Itshastra (India) provides technology development consultation services to US-based clients. The company's office is located in Thane, Mumbai. Sanjeev Diwadkar and Yogini Diwadhar are the promoters. J S V MOTORS: CARE Reaffirms B+ Rating on INR139.24cr LT Loan ------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of J S V Motors and Constructions Private Limited (JSV), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 139.24 CARE B+; Stable Rating removed Bank Facilities from ISSUER NOT COOPERATING category and Reaffirmed The rating previously assigned to the bank facilities of JSV were denoted as CARE B+; Stable; ISSUER NOT COOPERATING as the company did not pay the surveillance fees for the rating exercise agreed to in its rating agreement. However, the company has now paid the surveillance fees to monitor the rating and CARE Ratings Ltd. has carried out a full review of the rating and the rating stand at 'CARE B+; Stable'. Rationale and key rating drivers The re-affirmation of rating assigned to the bank facilities of the company continues to remain constrained mainly on account of, stretched liquidity marked by one instance of overutilization of around 15 days in working capital limit during March 2024 which has now been regularised. The rating also takes cognisance of weak financial risk profile marked by leveraged capital structure & weak debt service coverage indicators, low profitability margins, working capital intensive nature of operations along with pricing constraints and margin pressure arising out of competition from various auto dealers in the market. However, the rating derive strength from improving scale of operations and experienced promoters and the company being authorized dealer of Hyundai Motor India Limited and Jaguar Land Rover. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Sustained improvement in the scale of operations beyond INR400 crores along with PBILDT margin of above 4% on sustained basis. * Improvement in the overall gearing ratio below 3.00 times on sustained basis. Negative factors * Increase in operating cycle above 90 days on a sustained basis resulting deterioration in working capital cycle & liquidity position. * Moderation in PBILDT margins below 3.00% on a sustained basis. Analytical approach: Standalone Outlook: Stable The 'Stable' outlook reflects that the company is likely to continue with its operating & financial risk profile over the medium term. Detailed description of the key rating drivers: Key weaknesses * Low profitability margins and leveraged capital structure: The company's profitability margins stood low as marked by PBILDT and PAT of 3.63% and 0.39% respectively in FY23 (refers to period April 01 to March 31), as against 4.03% and 0.30% in FY22. Moderation in PBILDT level is mainly due to increase in advertisement & publicity expense to INR5.06 crores (PY: INR2.55 crores) and rent expense to INR4.55 crores (PY: INR2.74 crores). However, PAT margin increased slightly to 0.39% from 0.30% on account of non-operating income of INR1.45 crores during FY23 consisting of rental income out of unused showroom space. Capital structure of the company remains leveraged as marked by overall gearing ratio at 5.22x as on March 31, 2023 as compared to 4.04x as on March 31, 2022. The deterioration in the overall gearing levels is on account of increased utilization of working capital loans to support the increased operations. The capital structure is expected to remain leveraged over the medium term as envisaged. Further, the debt service coverage indicators of the company stood weak owing to low profitability coupled with high debt levels. The interest coverage ratio and total debt to GCA stood at 1.61x and 17.38x respectively in FY23. * Moderate operating cycle: Operating cycle of the company improved though stood moderate at 32 days in FY23 as against 36 days in FY22. The company needs to stock different models of vehicles and spares in the showrooms in order to ensure adequate availability and visibility leading to higher inventory days. The average inventory holding days of the company stood at 30 days in FY23 as against 34 days in FY22. Though the sales to customers are made on "Cash and Carry" basis however, around 70% of the vehicles are bought on vehicle financing basis through banks. The said phenomenon results in a collection period of around 5 days. Further, the company received a credit period of around 3 days from the suppliers for procurement. Besides this, the large working capital requirements are met through bank borrowings which remained high around 90% utilized for the last 12 months ended February 2024. * Pricing constraints and margin pressure arising out of competition from various auto dealers in the market: Indian automobile industry is highly competitive in nature as there are large numbers of players operating in the market like Maruti Suzuki India Limited (MSIL), Tata Motors Limited (CARE AA+; Stable/ CARE A1+), Hyundai Motor Company, Honda Motor Company, Toyota India etc. in the passenger vehicle segment. The margin on products is set at a particular level by Hyundai Motor India Limited and Jaguar Land Rover thereby restricting the company to earn incremental income. With the large dealership network of Hyundai Motor India Limited and Jaguar Land Rover, the bargaining power of the dealer with the customer is further reduced. The market also faces aggressive competition from various other established automobile dealers of companies like Maruti Suzuki and Tata Motors Limited etc. In order to capture the market share, the auto dealers have to offer better buying terms like providing allowing discounts on purchases which create pressure on margins and negatively impact the earning capacity of the company. * Limited bargaining power with principal automobile manufacturer: Being primarily into auto dealership business, JSV's business model is largely in the nature of trading wherein profitability margins are inherently thin. Moreover, in this business a dealer has very less bargaining power over principal manufacturer. The margin of products is set at a particular level by the principal manufacturer thereby restricting any incremental income for JSV. Key strengths * Experienced management coupled with long track record of operations: The company was incorporated in 2007 and promoted by Mr. Jatin Verma. He has an experience of around two decades in the dealership business through his association with Hyundai. Mr. Pankaj Verma and Mr. Jai Shankar Verma also have relevant experience through their association with the company. The company started its commercial operations in 2007 and has long track record in the industry as compared to other established players. It currently operates through two 3S facility (Sales, Service, Spares). Further, company has a dedicated team of marketing and sales professionals, service in-charge and customer relation officers, who have around one and half decade of experience in their respective fields. * Moderate albeit improving scale of operations: The total operating income (TOI) of the company improved and stood moderate as marked by TOI of INR336.02 crore in FY23 as against INR285.74 crore in FY22. Gross cash accruals also improved marginally and stood at INR5.33 crore in FY23 against INR4.40 crore in FY22. Increase in sales is majorly on account of overall improvement in industry wide demand during FY23. Further, the company has registered total income from operation of INR474.11(including taxes) crores in 11MFY24 (refers to period April 01 to February 29). Total operating income of JSV comprises income from vehicle sales, sale of spare & accessories, income from job work and repairs and other operating revenue which is mainly sale of old vehicles. Liquidity: Stretched The liquidity of the company is stretched marked by tightly matched accruals vis-à-vis its repayment obligations. JSV is expected to generate envisage gross cash accruals of INR6.50 crore in FY24 as against repayment obligation of INR5.56 crore. Further, the company has modest free cash and cash equivalents to the tune of INR0.39 crore as on March 31, 2023. Further, working capital utilization remains high at ~90% for the past 12 months ended February 2024. Also, there is one instance of overutilization of around 15 days in working capital limit during the month of March 2024 (which has been regularised on March 18, 2024). There is no further major expansion capex is proposed apart from the expenditure on routine maintenance. J S V Motors & Construction Private Limited (JSVMCPL), incorporated in 2007 is an authorized dealer of Hyundai Motor India Limited and Jaguar Land Rover, catering to Uttar Pradesh for its sales channel. At present company has 3 showrooms for Hyundai, one for Jaguar Land Rover (JLR) and 5 workshops The company manages its operations through its 3S (Sales, spare and service) facility located in Lucknow and Barabanki, Uttar Pradesh. The showroom has attached workshop facility for the post sales services of cars. Mr. Jatin Verma, who has more than 15 years of experience in the dealership business, is the Chairman and MD of JSVMCPL and is ably assisted by a qualified management team in the day-to-day operations of the company. JR AGROTECH: Ind-Ra Keeps D Rating in NonCooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained J.R. Agrotech Pvt. Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR2.80 bil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR150 mil. Term loan maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Formed in 1998, J.R. Agrotech is a rice milling company. The company has plants in Dinanagar, Gurdaspur, for the purpose of drying, parboiling, sorting, milling and grading paddy. KOCHI METRO: Ind-Ra Cuts Bank Loan Rating to BB+, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded ratings of Kochi Metro Rail Limited's (KMRL) bank facilities to 'IND BB+' from 'IND A-'. The Outlook is Stable. The detailed rating actions are: -- INR20,796.7 bil. Bank loans downgraded with IND BB+/Stable rating; and -- INR900 mil. Working capital loans downgraded with IND BB+/ Stable rating. Analytical Approach While arriving at the ratings, Ind-Ra continues to factor in the credit profile of the government of Kerala (GoKl) and views KMRL as a dependent entity, in line with the agency's criteria for rating public-sector entities. According to a memorandum of understanding (MoU), the GoKl will provide financial support to KMRL for bridging cash losses, if any, and incurring capital expenditure during the operational phase, if required. Detailed Rationale of the Rating Action The downgrade reflects KMRL's delays in debt servicing of loans in February 2024 (not rated by Ind-Ra) availed from Housing and Urban Development Corporation Limited (HUDCO; 'IND AAA/Stable') due to delays in receipt of funds from the GoKl. However, KMRL has made timely payment for Ind-Ra-rated bank loans. Although KMRL reported INR1,496 million total income for 11MFY24, EBITDA was negative at INR184.40 million. However, KMRL had sufficient funds available to meet the debt service obligations of bank loans (rated by Ind-Ra) in a timely manner. In addition, KMRL maintains one quarter debt service reserve account (DSRA) for Ind-Ra rated bank loans and was able to meet the debt service commitments without using funds available in DSRA. HUDCO loans (not rated by Ind-Ra) are secured by a GoKl's guarantee (post-default guarantee without any structure) along with budgetary provision as it was to fund part of sub debt from the GoKl. The GoKl provides funds to KMRL for this debt servicing. KMRL has reflected HUDCO loans in the liabilities side of balance sheet and an equivalent amount is treated as receivables from the GoKl in the assets side of balance sheet. Subsequent to the delay, KMRL received a government order on March 18, 2024 to release funds for the servicing of HUDCO loans. Detailed Description of Key Rating Drivers Delay in Servicing of HUDCO Loans: KMRCL has delayed servicing of HUDCO's term loan (not rated by Ind-Ra), which were to be serviced from budgetary provisions of the GoKl and is also guaranteed by the GoKl. The state is going through tight liquidity situation and a portion of state borrowings, which were not allowed earlier are now allowed subsequent to views of the Supreme Court. Ind-Ra expects the GoKl to release funds for HUDCO loans' debt servicing and KMRL has received a government order on March 18, 2024. HUDCO sanctioned loans to KMRL for preparatory works and land acquisitions for metro projects, while bank loans (rated by Ind-Ra) are for project-related capex requirements. Ind-Ra notes that KMRL has not maintained a debt service reserve account (DSRA) equivalent to one-quarter of debt service requirement as per sanctioned terms for the HUDCO loans. KMRL's project-related debt requirements are approved by the sponsors – GoKl and GoI and any increase in borrowings will be a key monitorable as this may impact KMRL's debt servicing obligations. Moderate EBITDA Margins; Net Losses to Continue in FY24-FY25: Ind-Ra expects KMRL's EBITDA including grants to remain moderate in FY24 and FY25, in spite of an increase in fare box revenue on the back of a likely rise in ridership. The EBITDA including grants was INR720 million in FY23 (FY22: INR239 million). However, the net losses are likely to be high in FY24 and FY25 (FY23: INR3,345 million; FY22: INR3,397 million) due to higher interest expenditures and depreciation. KMRL's EBITDA (excluding grants) turned positive to INR63.93 million in FY23. Fare collection for KMRL has increased during FY24 on account of an improvement in ridership. During FY23, fare collection accounted for 37.56% of the total income while non-fare collection was 21.57%. Continued Dependence on Sponsors: KMRL's liquidity stretched in FY23 and is likely to remain tight in FY24. The interest coverage (EBITDA/interest payments) and interest coverage including sub debt from the GoKl was 0.32x in FY23 (FY22: 0.13x) and 1.0x (2.86x), respectively. Ind-Ra believes the sponsors will continue to provide financial support to KMRL, if the need arises. The sponsors have funded KMRL in the form of equity grants and interest-free subordinated debt. The GoKl provided funds of INR1,508 million in FY23 (FY22: INR5,148.57 million) in the form of subordinated debt and grants. The loan, where the delay has taken place (not rated by Ind-Ra) was guaranteed by GoKl (post-default guarantee without any structure) and was to fund part of sub debt from the GoKl. The GoKl provides funds to KMRL for this debt servicing. However, there were delays in February 2024 to provide funds to KMRL due to tighter fiscal conditions of the GoKl, leading to the delay. KMRL has strong linkages with its sponsors, as reflected by the sponsors' (GoKl and GoI) 50%-50% ownership in KMRL. The KMRL has availed loans from the Agence Francaise de Developpement, a financial institution that implements the policy defined by the French Government. These loans are guaranteed by the GoI, which ensures timely debt servicing and according to the MoU, the guarantee will remain in place until the loans are fully repaid. Capital-Intensive and Long-term Projects: Ind-Ra believes KMRL's dependence on its sponsors especially on GoKl to continue in the near term due to high capital-intensive nature of the project and the need to keep user charges affordable. KMRL is implementing metro projects in two phases in Kochi. The Phase-I project with a total track length of 25.20km is fully operational since September 2020. KMRL is also extending Phase IA and Phase IB at a total cost of INR11,592 million. Phase IA is fully operational since September 2022. Phase IB has also commenced operations in March 2024. The Phase-II comprises of a stretch of 11.2km between Jawaharlal Nehru International Stadium Kochi to Info Park, via Kakkanad corridor, with 11 stations at an estimated total completion cost of INR19,570 million. Completion Risk Remains: The high gestation period in metro project highlights the completion and construction risk in these projects. KMRL has appointed contractors with experience which mitigates the completion risk. KMRL has commenced the land acquisition procedures for phase II and land possession progress is 76% for the road widening works as at FYE23. Escrow Mechanism for Bank Loans: KMRL has entered into an escrow agreement and opened an escrow account with the lead banker. As per the terms, KMRL agreed to deposit i) all funds received from GoKl and GoI, ii) all fare levied and collected by KMRL, iii) any other revenue, rentals, deposits, or capital receipts, iv) all proceeds received pursuant to any insurance claims, v) any revenue shortfall loan received from government and vi) any termination payments received from governments. An escrow mechanism supports the ratings of KMRL rated instruments. Sponsors' Dependent Entity: Ind-Ra believes KMRL will rely on the sponsors' fund support in FY24-FY26 to meet the capital investments and debt servicing requirements as it had been in the past. Ind-Ra classifies KMRL as a sponsor-dependent public-sector entity, based on its legal status, significant strategic policy role in Kochi city, and strong financial oversight and control by the GoKl. KMRL's missions are defined by the GoKl and monitored by the sponsors – the GoI and GoKl. According to the MoU among the GoI, the GoKl and KMRL, the GoKl has also agreed to bear any project-cost escalation, exchange rate variation and price escalation without seeking any recourse for financing from the other sponsor - GoI. Rising Ridership: Ind-Ra believes the ridership is likely to increase in FY25 on account of increasing demand and commencement of Phase 1B in March 2024. The Kochi metro's monthly ridership increased due to rising demand. KMRL ridership increased to 29.84 million in 11MFY24 (FY23: 24.87 million, FY22: 9.71 million). KMRL's initiatives to improve first and last mile connectivity also impacted the ridership positively in FY24 and likely to improve further in FY25. Kerala's Moderate Economic Performance: The share of agriculture and industry in the state economy is lower while that of services is higher than their respective shares in the national economy. The share of industry in Kerala was lower at 28.9% than 30.2% of the national level in FY23. The share of services was higher at 62.6% than the sector's share in the national economy of 54.4% in FY23. With a CAGR of 4.3%, Kerala's economy grew slower than the nation's gross value-added growth rate of 5.6% during FY12-FY23. The state's contribution to the national economy was 3.8% in FY23 (FY12: 4.1%). Moderate Fiscal Position of State: Kerala's revenue deficit as per the revised estimate (RE) of FY24 has been kept at 2.1% of the gross state domestic product (GSDP), same as that of FY24 budget estimate (BE), due to stronger nominal GSDP growth. This would also lead to an improvement in the fiscal account. The fiscal deficit has been estimated to moderate to 3.4% of GSDP in FY24RE (FY24BE: 3.5%). For FY25, the state government expects the revenue deficit to be 2.1% and the fiscal deficit to be 3.4% of GSDP. The debt of the state has been budgeted at 34.2% of GSDP in FY25 which would be higher than the corresponding indicative debt estimate of 32.8% of GSDP for the state governments, as per the 15th financial commission. The guarantees stood at INR503.7 billion, growing 13.5% in FY23, and once included in the state debt, the combined liabilities of the state stood at 39.4% of GSDP in FY23 (FY21: 43.2%). Liquidity Stretched: KMRL reported INR3,345 million of net losses in FY23 (FY22: net loss of INR3,397 million), leading to stretched liquidity, which is likely to remain so in FY24 as well. Since KMRL received funds from the GoKl to meet its debt servicing obligations and capex requirements, cash and bank balance appeared comfortable at INR2,718 million at FYE23 (FYE22: INR2,431 million). KMRL serviced principal and interest payments of about INR2,492 million in FY24 and has scheduled repayments and interest payments of about INR4,200 million for FY25. KMRL has availed fund-based working capital limits for INR900 million for carrying out day-to-day operations, which will provide limited cushion to KMRL's funding requirements. Rating Sensitivities Positive: Timely debt servicing for at least two consecutive quarters will be positive for the ratings. Negative: Continued delay in debt servicing will lead to a negative rating action. About the Company KMRL was formed in August 2011 as a Kerala state government company to provide the metro rail facility in the state. In September 2012, it was converted into a special purpose company, jointly sponsored by the GoI and the GoKl. The structure of the board provides equal representation to both the GoI and the GoKl nominee directors. KRISHNA EDUCATIONAL: Ind-Ra Keeps D Rating in Non-Cooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shree Krishna Educational & Charitable Society's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR10 mil. Fund/Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR66 mil. Term loan maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. About the Company Shree Krishna Educational & Charitable Society was established in 2008 under the Societies Registration Act, 1860. The society operates two institutes in Barnala, Punjab, namely Aryabhatta Group of Institutes and Aryabhatta College. LMJ INTERNATIONAL: Ind-Ra Keeps D Rating in NonCooperating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained LMJ International Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR1.840 bil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR3.60 bil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company LMJ International trades agricultural and non-agricultural commodities in domestic and international markets. MA CHANDI: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ma Chandi Rice Mill (MCRM) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.25 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Cash Credit- 1.3 CRISIL D (Issuer Not Book Debt Cooperating) Proposed Long Term 0.48 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 0.57 CRISIL D (Issuer Not Cooperating) Term Loan 0.4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MCRM for obtaining information through letter and email dated March 15, 2024 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 MCRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MCRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MCRM continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Set up in 2001 as a partnership firm by Mr. Ramapada Shaw and Mr. Muktipada Shaw, MCRM processes nonbasmati par boiled rice. Its manufacturing facility in Burdwan, West Bengal, has capacity of 12 tonnes per hour. It sells rice under the Bright Gold brand. MAHARSHEE GEOMEMBRANE: CRISIL Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Maharshee Geomembrane India Private Limited (MGPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.45 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Inland/Import 3.5 CRISIL D (Issuer Not Letter of Credit Cooperating) Proposed Long Term 6.03 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with MGPL for obtaining information through letter and email dated March 15, 2024 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 MGPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MGPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MGPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2005 in Vadodara and promoted by Mr. Rajnikant Swain, MGPL manufactures HDPE, LDPE, and polypropylene films known as geomembrane, geotextiles, and geo-composite. MANAS AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Manas Agro Industries (MAI) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.6 CRISIL B+/Stable (Issuer Not Cooperating) Term Loan 3.4 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MAI for obtaining information through letter and email dated March 15, 2024 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MAI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MAI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 2015 as a partnership firm by Mr Amit Kumar Jain, Ms Gunja Jain, Ms Suman Devi Churiwal, Mr Abhishek Jain, and Ms Jyoti Jain, MAI processes non-basmati parboiled rice at its unit in Howly, Assam, which has installed capacity of 1 lakh kg per day. MANGALSIDDHI MULTI: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Mangalsiddhi Multipurpose Multistate Sah. Sangh Limited (MMMSSL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MMMSSL for obtaining information through letter and email dated March 15, 2024 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 MMMSSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MMMSSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MMMSSL continues to be 'CRISIL D Issuer Not Cooperating'. MMMSSL is co-operative society promoted by Mr Rajendra Tambile. Established in 2010, the society processes and distributes milk (pasteurised, homogenised, and standardised) to larger corporates for sale under their brands. The society has a milk handling capacity of around 1 lakh litres per day at Indapur in Pune, Maharashtra. The society also processes milk and milk products such as ghee, lassi, and curd under its Rajmangal brand. MEENAKSHI FISHING: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Meenakshi Fishing and Trading Co. (MFTC) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.15 CRISIL D (Issuer Not Cooperating) Long Term Loan 8 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.85 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with MFTC for obtaining information through letter and email dated March 15, 2024 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 MFTC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MFTC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MFTC continues to be 'CRISIL D Issuer Not Cooperating'. MFTC, is engaged in fishing and providing ferry services for tourists of Andaman Islands. The firm's entire operation is based out of Andaman Islands. MODERN STAGE: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Modern Stage Services Private Limited (MSSPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MSSPL for obtaining information through letter and email dated March 15, 2024 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 MSSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MSSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MSSPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2006 and promoted by Mr Davinder Kumar Wadhwa and Mr Pratik Kumar Wadhwa, MSSPL rents out stage lights and video and audio systems for shows, live concerts and festivals across India. It is based in New Delhi. MORINGA TECHSOLV: Ind-Ra Withdraws B- LongTerm Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has withdrawn Moringa Techsolv Private Limited's Long-Term Issuer Rating as follows -- The IND B-/Stable rating on the Long-Term Issuer Rating is withdrawn. Detailed Rationale of the Rating Action Ind-Ra is no longer required to maintain the ratings, as the agency has received a withdrawal request from the issuer. This is consistent with Ind-Ra's Policy on Withdrawal of Ratings. About the Company Incorporated in July 2020, Moringa Techsolv has a registered office in Thane. The company offers software products catering to anti-money laundering, compliance calendar, and incident management, among others to banks and non-banking finance companies. MOTI RAM: CRISIL Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Moti Ram Sunil Kumar (MRSK) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.8 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 0.7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MRSK for obtaining information through letter and email dated March 15, 2024 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 MRSK, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MRSK is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MRSK continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2006 as a proprietorship firm by Mr Sunil Kumar, MRSK processes paddy at its unit in Karnal, Haryana, which has total installed capacity of about 30,000 tonne per annum. MUKAND SUMI: Ind-Ra Keeps BB Rating in NonCooperating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Mukand Sumi Metal Processing Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR400 mil. Fund Based Working Capital Limit maintained in non-cooperating category with IND BB/Stable (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR30 mil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Incorporated in 2012, Mukand Sumi Metal Processing is a joint venture between Mukand Limited and Sumitomo Corporation, which hold 51.0% and 49.0% in the company, respectively. The company manufactures bright bars and wires of special alloy steel and stainless steel (hived-off from Mukand). MUMBAI METRO: NCLT Disposes Off Two Insolvency Applications ----------------------------------------------------------- The Economic Times reports that the Mumbai bench of the National Company Law Tribunal (NCLT) has disposed of two separate insolvency resolution applications filed by State Bank of India and IDBI Bank against Mumbai Metro One. The borrower is a joint venture between Anil Ambani-promoted Reliance Infrastructure (RInfra) and Mumbai Metropolitan Regional Development Authority (MMRDA). On April 15, a division bench led by judicial member Lakshmi Gurung and technical member Charanjeet Singh Gulati disposed of the insolvency resolution applications in an oral order after lawyers appearing for all the parties informed the tribunal about an OTS (one-time settlement) agreed upon by all lenders, ET relates. The detailed order was not uploaded until the publication of this report. Mumbai Metro One was the first metro project awarded in the country on a public-private partnership (PPP) basis and entails the design, financing, construction, operation and maintenance of about 12 km elevated metro operating between Versova and Ghatkopar with 12 stations en route, connecting the western and central suburbs of Mumbai. On March 20, MMRDA, an apex body for planning and coordinating development activities in Mumbai, had told the bankruptcy court that Mantralaya has decided to settle the dues with the lenders of Mumbai Metro One, ET relates. In October last year, IDBI Bank approached the tribunal seeking to initiate insolvency resolution proceedings against the company under the Insolvency & Bankruptcy Code (IBC) after MMOPL failed to repay dues of INR133.37 crore, ET recalls. In August, SBI approached the tribunal after the company defaulted on its dues of INR416 crore. The other lenders to the metro line operator include Canara Bank, Bank of Maharashtra and India Infrastructure Finance Co (UK). "The state government has decided at the right time to settle the dispute as this is one of the most important infrastructure projects for the city," ET quotes Nishit Dhruva, managing partner of law firm MDP & Partners, as saying. "At a time when connecting metro lines and other transportation infrastructure projects are getting ready, this will set a precedent in future such disputes." Originally, the Versova-Andheri-Ghatkopar corridor was awarded by MMRDA through a global competitive bidding process on a public-private partnership framework to the Reliance Infrastructure consortium in 2007, ET notes. Later, a special purpose vehicle, namely, Mumbai Metro One, was incorporated for implementation of the project. Currently, Anil Ambani-led Reliance Infrastructure Ltd owns a 74% stake in the metro line operator, while MMRDA holds the remaining 26% stake in the venture. MYTRAH ENERGY: Ind-Ra Keeps D Rating in NonCooperating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Mytrah Energy (India) Private Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR1.450 bil. Fund-based working capital limits maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR3.370 bil. Non Fund Based Capital Limits maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company MEIPL is a holding-cum-operating company for various wind and solar power projects. It is one of the leading independent power producers of renewable energy in India. It implements and operates various wind and solar power projects in India through its subsidiaries and generates revenue from the engineering, procurement and construction business. NEXTGEN FIBRES: Ind-Ra Moves BB- Rating to Non-Cooperating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nextgen Fibres Private Limited's (NFPL) bank loan ratings to the non-cooperating category and has simultaneously withdrawn the same. The detailed rating actions are: -- INR100 mil. Fund-based limits* migrated to non-cooperating category and withdrawn; -- INR100 mil. Proposed fund-based* limits migrated to non- cooperating category and withdrawn; -- INR13.88 mil. Term loan# due on December 2026 migrated to non- cooperating category and withdrawn; and -- INR355 mil. Proposed term loan# Migrated to non-cooperating category and withdrawn. Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based on the best available information. * Migrated to 'IND BB-/Stable (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn #Migrated to 'IND BB-/Stable (ISSUER NOT COOPERATING)' before being withdrawn Detailed Rationale of the Rating Action The ratings have been migrated to the non-cooperating category before being withdrawn because the issuer did not participate in the rating exercise despite repeated requests by the agency through phone calls and emails, and has not provided information about latest audited financial statement, sanctioned bank facilities and utilization, business plans and projections for the next three years, information on corporate governance, and management certificate. This is in accordance with Ind-Ra's policy of 'Guidelines on What Constitutes Non-cooperation'. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. 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. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interactions with NFPL while reviewing the rating. Ind-Ra had consistently followed up with NFPL over emails starting from February 16, 2024, apart from phone calls. The issuer has also not been submitting their monthly no default statement (NDS). Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit rating of NFPL, as the agency does not have adequate information to review the rating. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption / distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. NFPL has been non-cooperative with the agency since February 16, 2024. About the Company Incorporated in 2013, NFPL manufactures polyester staple fiber, which is used as stuffing material. The company's facility, which has a capacity of 5,475 metric tons per annum, is located in Mumbai, Maharashtra. PALLAVI MOTORS: Ind-Ra Keeps BB+ Rating in Non-Cooperating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Pallavi Motors Private Limited's (PMPL) bank loan rating of 'IND BB+ (ISSUER NOT COOPERATING) in the non-cooperating category and has simultaneously withdrawn it. The issuer did not participate in the rating review despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The detailed rating actions are: -- INR200 mil. Fund-based working capital limit* maintained in non-cooperating category and withdrawn; -- INR21.6 mil. Term loan due on March 31, 2023 withdrawn (paid in full); and -- INR25 mil. Non-fund-based working capital limit** maintained in non-cooperating category and withdrawn. Note: ISSUER NOT COOPERATING: The issuer did not cooperate, based on the best available information. *Maintained at 'IND BB+/Negative (ISSUER NOT COOPERATING)' before being withdrawn ** Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn WD - Rating Withdrawn Detailed Rationale of the Rating Action The rating has been maintained in the non-cooperating category before being withdrawn because the issuer did not participate in the rating exercise despite repeated requests by the agency through phone calls and emails, and has not provided information about latest audited financial statement, sanctioned bank facilities and utilization, business plans and projections for the next three years, information on corporate governance, and management certificate. This is in accordance with Ind-Ra's policy of 'Guidelines on What Constitutes Non-cooperation'. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. 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. Non-Cooperation by the Issuer Ind-Ra has not received adequate information and has not been able to conduct management interaction with PMPL while reviewing the ratings. Ind-Ra had consistently followed up with PMPL over emails since November 2018, apart from phone calls. The issuer has also not been submitting their monthly no default statement. Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit rating of PMPL, as the agency does not have adequate information to review the ratings. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. PMPL has been non-cooperative with the agency since November 14, 2018. About the Company Assam-based PMPL was incorporated in 1999 is an authorized dealer of passenger cars manufactured by Maruti Suzuki India Limited. The company is a family-run business and promoted by Om Prakash Lahoty, Avadesh Lahoty and Sita Devi Lahoty. PATIL CONSTRUCTION: Ind-Ra Keeps D Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Patil Construction and Infrastructure Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR4.975 bil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR581.5 mil. Term loan issued on March 31, 2022 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR1.225 bil. Fund-based working capital facilities maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR500 mil. Proposed fund-based working capital limits maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Patil Construction and Infrastructure is engaged in the construction of bitumen and concrete roads/highways, buildings, storm water drainage, primarily for government agencies. The company has a presence in western parts of Maharashtra, Jharkhand, Chhattisgarh, Odisha, Telangana and Karnataka. PONDICHERRY-TINDIVANAM: CARE Reaffirms D Rating on LT Bank Loan --------------------------------------------------------------- CARE Ratings has reaffirmed the ratings on certain bank facilities of Pondicherry-Tindivanam Tollway Private Limited (PTTL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 210.94 CARE D Reaffirmed Rationale and key rating drivers The rating assigned to the bank facilities of PTTL is constrained by the poor liquidity position owing to lower traffic due to leakage of traffic since the toll plaza is located at one end of the project highway which is spanning over 37 kms and due to presence of alternate route resulting in delays in debt servicing. The rating takes into cognizance of qualification of defaults to the lenders in the audited annual report for FY23. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Increase in toll traffic with subsequent improvement in the liquidity profile & regularization of debt servicing * Funding support from sponsors for regularization of debt servicing Analytical approach: Standalone Outlook: Not Applicable Detailed description of the key rating drivers: Key weaknesses * Stretched liquidity position with delays in debt servicing: Delays are due lower toll collection. Initially lower toll collection was on account of COVID-19 and now the same are continuing despite of ease of COVID-19 due to leakage of traffic since the toll plaza is located at one end of the project highway which is spanning over 37 kms. As a result, the traffic witness lower toll income albeit increased marginally to INR21.59 crore in FY23 (PY: INR15.07 crore) which lead to cashflow mismatch resulting in delays in debt servicing. However, the lenders of the company had approved the One Time Settlement (OTS) proposal and the funds have been remitted to the respective banks on March 28, 2024, and March 30, 2024. The lenders are in process of providing the No Due Certificates (NDCs) and release of security. Key strengths * Experienced promoters: PTTL was originally promoted by Maytas Infra Limited (MIL) and NCC Limited (NCC). Later in 2009, Terra Projects Private Ltd (TPPL), one of the sub-contractors and a group company of Nagpur-based Jayaswal Neco Industries Ltd. acquired 26.10% stake in PTTL. Currently, IL&FS, NCC, TPPL and NCC Infrastructure Holdings limited are the shareholders of PTTL. Liquidity: Poor The company has a poor liquidity profile with low toll collection due to low traffic on stretch and subsequently delays in debt servicing. Pondicherry Tindivanam Tollway Private limited (PTTL) is a Special Purpose Vehicle (SPV) incorporated on March 27, 2007 to undertake the construction, operation, maintenance of National Highways in Tamil Nadu. It is promoted by the consortium of Nagarjuna Construction Company Limited (NCC) along with its fully owned subsidiary NCC Infrastructure Holdings Ltd, IL&FS Engineering Constructions Ltd (ILFS) and Terra-Projects Limited. The SPV is involved in strengthening of four-lane road of 37.92 kms stretch on the Pondicherry-Tindivanam section of NH-66, in the state of Tamil Nadu. The Concession Agreement (CA) was executed between PTTL and National Highways Authority of India (NHAI) on July 19, 2007 for a concession period of 30 years from the date of financial closure, including the construction period of 30 months. The Commercial Operation Date (COD) or Scheduled Project Completion Date (SPCD) of the project was July 14, 2010. However, on account of delay by NHAI in handing over the land, the construction could not be completed within the scheduled time. The company had managed to receive an extension of Time (EOT) for COD till April 27, 2011, from NHAI. The project received Provisional COD and has commenced tolling on December 12, 2011. The actual cost incurred in the project was INR361.96 crore as against estimated cost of INR314.62 crore. PRAVESH FINLEASE: CARE Lowers Rating on INR100cr LT Loan to B- -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Pravesh Finlease and Estates Private Limited (PFEPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 100.00 CARE B-; Stable; Revised from Facilities CARE B Rationale and key rating drivers The revision in the rating assigned to the bank facilities of PFEPL factors significant time overrun in execution of the ongoing hotel project requiring extension of Scheduled Commercial Operation Date (SCOD) for the second time from its lender. The rating continues to remain constrained on account of its presence in cyclical, competitive and seasonal hospitality industry, limited experience of the promoters in the domestic hospitality market, and poor liquidity. The ratings, however, derive strength from association with Hyatt Hotels Corporation and strategic location of the proposed hotel property. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Successful completion of the project as per revised schedule within envisaged cost and achievement of envisaged financial and operational performance post Commercial Operation Date (COD). Negative factors * Delay in completion of the project or significant cost overrun leading to higher than envisaged debt/ contribution from the promoters. Analytical approach: Standalone Outlook: Stable Stable outlook for the rated facilities reflects expectation of completion of the project within revised timelines, achievement of financial closure for the project debt and its association with 'Hyatt'. Detailed description of the key rating drivers: Key weaknesses * Significant time and cost overrun: Initially, the Project was slated to be completed by March 2023 at a total cost of INR180 crore and was envisaged to be funded in debt-equity ratio of 1.25:1, consisting of term loan from banks of INR100 crore, promoter's contribution of INR80 crore (Equity share capital of INR50 crore and unsecured, subordinated interest-free loans from related parties of INR30 crore). However, time overrun of 12 months was envisaged at the time of initial rating owing to delay in timely disbursement from the lenders and revised SCOD was March 2024. As on December 31, 2023, PFEPL had incurred a cost of INR120 crore as on December 2023 (Rs.80 crore as on January 31, 2023). Considering the project progress, date of Commencement of Commercial Operations (DOCC) has now been revised by the lead banker by further one year to March 2025. The revised cost of the project is INR190 crore envisaged to be funded in debt-equity ratio of 1.11:1. * Presence in cyclical, competitive and seasonal hospitality industry as well as geographical concentration risk: The Indian hotel industry is highly fragmented in nature with presence of large number of organized and unorganized players spread across various regions. Furthermore, the hotel industry is inherently cyclical in nature with exposure to changes in various factors including tourist arrivals, social and economic changes, disruption due to new technology platforms and changing consumer preferences. Furthermore, PFEPL is exposed to geographical concentration risk and stiff competition among premium hotels in Jaipur. PFEPL is promoted by Mr. Alok Kotahwala and Mrs. Indira Kotahwala (w/o Mr. Alok Kotahwala). While Mr Alok Kotahwala has more than two decades of experience in gems and jewellery, software, FMCG and real estate industry, PFEPL is the first venture of the promoters in the hospitality segment and has limited experience in undertaking large-scale projects. Key strengths * Association with Hyatt Hotels Corporation: Hyatt Hotels Corporation is an American multinational hospitality company that manages and franchises luxury hotels, resorts, and vacation properties. Hyatt manages more than 1300 hotels across 76 countries. PFEPL has entered into an agreement with Hyatt India consultancy private limited (an entity of Hyatt Hotels Corporation) for establishing a 250 room, 5-star luxury hotel under brand name of 'Hyatt Regency' in Jaipur. Hyatt's global brand presence and well-established marketing set up is envisaged to help PFEPL in tie-ups with corporates as well as in attracting tourists through its marketing channel and its loyalty programs. * Strategic location of hotel property: Jaipur, popularly known as the 'Pink City', is an integral part of the Golden triangle itinerary and attract tourists from all over the world, making it one of the top leisure destinations in the country. Jaipur is an emerging MICE as well as a destination wedding location of North India. The proposed hotel is located 20 km away from Jaipur International Airport and is situate near Mahindra SEZ. Further, the company has proposed to build ~12,000 square feet of banquet hall to attract wedding functions, MICE (MICE stands for Meetings, Incentives, Conferences and Exhibitions) etc. The banquet hall is envisaged to be the third largest hall in North India. Liquidity: Poor PEFPL's liquidity is poor marked by consistent delay in execution of the project. As per the revised sanction terms of the lead banker, the repayment shall begin from April 2026 (i.e. Q1FY27). Incorporated in 1996, Jaipur-based Pravesh Finlease and Estates Private Limited (PFEPL) was taken over by Mr. Alok Kotahwala and Mrs. Indira Kotahwala in FY98. In FY19, the promoters partnered with Hyatt Hotels Corporation and launched a greenfield project to construct 250 keys hotel in the name of 'Hotel Hyatt Regency' on a land parcel of 5.97 acre situated near Kanchan Kesari, Mahindra SEZ Road, Jaipur. Total revised project cost is expected to be around INR190 crore, funded though debt-equity ratio of 1.11x. ROLTA INDIA: Ind-Ra Keeps D Rating in NonCooperating ---------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Rolta India Limited's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR12.539 bil. External Commercial Borrowing issued on March 31, 2020 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR4.0 bil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR8.293 bil. Letter of Credit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR 3.0 bil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Mumbai-based RIL is a technology company with operations in 40 locations across India, North America, Europe, the Middle East and Australia. It provides information technology solutions to various federal, state and local governments; defense and security agencies; utilities; financial services, manufacturing, retail and healthcare companies; and others. S TEN: CRISIL Keeps D Debt Ratings in Not Cooperating Category -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of S Ten Lighting (STL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Long Term Loan 5.4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with STL for obtaining information through letter and email dated March 15, 2024 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 STL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on STL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of STL continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2017, STL is promoted by Mr Biren Shah and Mr Sujit Kapse. The firm is engaged in assembling of of electrical / lighting products & components, LED Products. SAI MAATARINI: Ind-Ra Keeps D Term Loan Rating in NonCooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sai Maatarini Tollways Limited's (SMTL) term loans' rating in the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR13,973.5 bil. Term loans (Long-term) due on October 1, 2027 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on best available information The ratings were last reviewed on January 19, 2022. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the rating. Detailed Rationale of the Rating Action The ratings continue to be maintained in non-cooperating category in accordance with Ind-Ra's Guidelines on What Constitutes Non-Cooperation as the company has been non-cooperative. Non-Cooperation by the Issuer Ind-Ra has not been able to conduct management interaction with SMTL while reviewing the rating. Ind-Ra had consistently followed up with SMTL over emails starting from February 14, 2024. The issuer has also not been submitting their monthly no default statement (NDS). Limitations regarding Information Availability Ind-Ra is unable to provide an updated forward-looking view on the credit rating of SMTL, as the agency does not have adequate information to review the rating. If an issuer does not provide timely business and financial updates to the agency, it indicates weak governance, particularly in 'Transparency of Financial Information'. The agency may also consider this as symptomatic of a possible disruption/distress in the issuer's credit profile. Therefore, investors and other users are advised to take appropriate caution while using these ratings. SMTL has been non-cooperative with the agency since March 20, 2023. About the Company SMTL is a special purpose vehicle, incorporated to implement a 166.17km-lane expansion (two-to-four laning) between Panikolli and Rimuli in Odisha on National Highway 215, under a 24-year concession agreement from the National Highways Authority of India ('IND AAA'/Stable). The project was terminated on January 28, 2020 due to non-completion of balance construction works. SEYA INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Seya Industries Limited (SIL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 509.95 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated January 14, 2020, placed the rating(s) of SIL under the 'issuer non-cooperating' category as SIL had failed to provide information for monitoring of the rating. SIL continues to be non-cooperative despite repeated requests for submission of information through phone calls and e-mails dated February 10, 2024, February 20, 2024, and March 1, 2024. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Analytical approach: Standalone Outlook: Not Applicable Detailed description of the key rating drivers: Key weaknesses * Ongoing delays in debt servicing: The debt servicing of SIL has been irregular in the recent past as indicated by overutilization of its working capital limits for over 30 days and delays in payment of debt servicing obligations towards its term loans. * Time overrun in ongoing capex: SIL has been undertaking the capex for expansion of its manufacturing facilities. The scope of capex was revised in past and project has ran into time overruns. Liquidity: Poor Significantly high working capital utilization indicating poor liquidity position for SIL. This has also restrained the ability of SIL to service its debt obligations in a timely manner. Incorporated on October 11, 1990 as Sriman Organic Chemical Industries Private Limited, Seya Industries Limited (SIL) is engaged in manufacturing of benzene based organic chemicals, viz., mono chloro benzene (MCB), para nitro chloro benzene (PNCB), ortho nitro chloro benzene (ONCB), 3,3 di chlorobenzidine (3,3 DCB), 2,4 di nitro chloro benzene (2,4 DNCB) and para nitro aniline (PNA) and by-products like sulphuric and hydrochloric acid which find application in pharamceutical, dyes, agrochemical , fertilizer and rubber industries. The manufacturing facility is located at Tarapur, Boisar (Maharashtra)Industries Limited (SIL) is engaged in manufacturing of benzene based organic chemicals, viz., mono chloro benzene (MCB), para nitro chloro benzene (PNCB), ortho nitro chloro benzene (ONCB), 3,3 di chlorobenzidine (3,3 DCB), 2,4 di nitro chloro benzene (2,4 DNCB) and para nitro aniline (PNA) and by-products like sulphuric and hydrochloric acid which find application in pharamceutical, dyes, agrochemical, fertilizer and rubber industries. The manufacturing facility is located at Tarapur, Boisar (Maharashtra). SH MARINE: CARE Reaffirms B+ Rating on INR6.80cr LT Loan -------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of SH Marine Exim (SHME), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 6.80 CARE B+; Stable Rating removed Bank Facilities from ISSUER NOT COOPERATING category and Reaffirmed Long Term/ 20.50 CARE B+; Stable/CARE A4 Short Term Rating removed from ISSUER NOT Bank Facilities COOPERATING category and Reaffirmed Rationale and key rating drivers Ratings assigned to the bank facilities of SHME are constrained by the working capital-intensive nature of the business, susceptibility of profit margins to raw material volatility, and presence in highly competitive seafood industry with inherent risk of exposure to water borne diseases. The ratings also factor in the sharp decline in scale of operations in 11MFY24 (refers to period from April 1, 2024 to February 29, 2024). The rating, however, derives strength from the vast experience of the promoters and diversified customer base. Rating sensitivities: Factors likely to lead to rating actions Positive factors * Improvement in scale of operations beyond INR70 crore while maintaining profit before interest, lease rentals, depreciation & taxation (PBILDT) margins above 4%. * Improvement in liquidity position. Negative factors * Deterioration of Interest coverage below 1.1x. Analytical approach: Standalone Outlook: Stable CARE Ratings Limited (CARE Ratings) believes that the company shall benefit from the long experience of promoters in the seafood industry to stabilise its operations. Detailed description of the key rating drivers: Key weaknesses * Small scale of operations; sharp reduction in sales in 11MFY24: The firm is involved in processing and export of seafood, mainly vannamei shrimp followed by cuttlefish, octopus, ribbon fish, squid, etc. The firm uses only block freezing technique and the seafood is exported as frozen blocks. The total operating income (TOI) stood modest at INR81.70 crore in FY23 and has further declined to 25.78 crore in 11MFY24. The sharp reduction in sales in the current year has been primarily on account of subdued demand from the Chinese market which is the primary export destination of the firm. SHME expects revenues to improve post stabilisation of demand in export destinations. * Thin profit margins exposed to raw material volatility and foreign currency fluctuations: The PBILDT margin of the firm had been thin and fluctuating over the last three years between 2-4% primarily due to the volatility in the raw material prices. Moreover, the company has limited ability to pass on any increase in raw material prices to its customers, as the end-product prices are mostly determined by the international demand-supply scenario. SHME is also susceptible to fluctuation in foreign currency, affecting profitability. * Presence in highly regulatory industry and exposure to water-borne diseases: Shrimp is a depleting commodity and increased severity of regulations on excessive fishing has rendered supply more irregular. Thus, the governments around the world regularly put up new regulations regarding the international trade of shrimp. However, SHME is procuring shrimp from its own shrimp farms, which help it overcome the supply irregularities. There are varieties of lethal viral and bacterial diseases that might affect shrimps. The fact that the shrimps are kept in clusters acts as an exponential factor in multiplying the disease caught by a single shrimp and wipes out almost 90% of the total shrimp population in a particular farm. Key strengths * Extensive experience of promoters in the seafood industry: The promoters, Mr. Siraj VH and Mrs. Gansa Siraj have been involved in the seafood business for more than fifteen years. They have been able to leverage their wide experience and contacts in the industry to establish a wide range of clientele. The ability of the promoters to identify industry trends and customer preferences have helped the group to sustain amidst the volatility associated with the seafood business. The firm's presence in the seafood business for more than a decade has also strengthened its reputation. The day-to-day operations of the group is presently being managed by Mr Siraj VH. * Diversified geographical and clientele base: The firm normally procures shrimps from local fishermen and agents and has a cold storage warehouse in Ernakulam, Kerala. SHME normally exports to clients in China, Vietnam, Thailand among others. The firm is also planning to expand its business in Gulf countries and Egypt through agents. With subdued demand in key export markets, the firm is diversifying its customer base and has onboarded clients in UAE, South Korea and Malaysia into its portfolio in FY23. Liquidity: Poor Liquidity is poor marked by expected accruals of INR1 crore in FY24. The firm had modest cash and bank balances (including fixed deposits) of INR4.89 crore which shall provide cushion in meeting the repayment obligation of approx. INR1.37 crore. The operating cycle of the firm stood stretched at 138 days in FY23, considering higher inventory days. The firm receives payments from its customers within 20-40 days and pays its suppliers within 50-70 days. Given the working capital-intensive nature of operations, the average utilisation of the working capital limits for last 12 months ended February 2024 stood high at 95%. Kochi based SHME was incorporated in 2010 as a proprietorship firm and later converted into partnership firm in October 2013 as a family business by Mr. Siraj and his wife Mrs. Gansa Siraj. The firm is engaged in the processing and export of various varieties of sea food, primarily shrimp followed by octopus, cuttle fish, squid, various types of fish etc. The company has an installed monthly capacity of 30-35 tonnes/day. SHOBHA ASARS: Insolvency Resolution Process Case Summary -------------------------------------------------------- Debtor: Shoba Asars Private Limited Flat No. 401/402, 4th Floor, Prasad Chambers Tata Road No. 2 Charni Road (East), Opera House, Girgaon Mumbai Mumbai City MH 40000 India Insolvency Commencement Date: March 4, 2024 Estimated date of closure of insolvency resolution process: September 1, 2024 (180 Days) Court: National Company Law Tribunal, Mumbai Bench Insolvency Professional: Manisha Sanjay Agrawal Manisha & Associates 238 Shriram Towers Near NIT Sadar, Nagpur Maharashtra, 440001 Email: m_taiyal@yahoo.com Email: shobhaasarsip@gmail.com Last date for submission of claims: March 18, 2024 SOUTHERN COOLING: CRISIL Keeps C Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Southern Cooling Towers Private Limited (SCTPL) continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 9 CRISIL A4 (Issuer Not Cooperating) Cash Credit 11 CRISIL C (Issuer Not Cooperating) Long Term Loan 0.79 CRISIL C (Issuer Not Cooperating) Proposed Fund- 9.21 CRISIL C (Issuer Not Based Bank Limits Cooperating) CRISIL Ratings has been consistently following up with SCTPL for obtaining information through letter and email dated March 15, 2024 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 SCTPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SCTPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SCTPL continues to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'. SCTPL, incorporated in 1982, is India's first ISO 9001:2008-certified company manufacturing cooling towers. It is promoted by the Mr S K Mitra (chairman), The company manufactures a variety of wet industrial cooling towers and spare parts. SOUTHERN GOLD: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Southern Gold Private Limited (SGPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 30 CRISIL D (Issuer Not Cooperating) Cash Credit 10 CRISIL D (Issuer Not Cooperating) Cash Credit & 3 CRISIL D (Issuer Not Working Capital Cooperating) Demand Loan Cash Credit & 6 CRISIL D (Issuer Not Working Capital Cooperating) Demand Loan Long Term Loan 3.5 CRISIL D (Issuer Not Cooperating) Long Term Loan 4 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SGPL for obtaining information through letter and email dated March 15, 2024 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 SGPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SGPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SGPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. SGPL was set up in 2010, and is engaged in the business of gold retailing and wholesaling. The day to day operations of the company are managed by Mr. CA Collins and his brother, Mr C A Raphy. The company currently operates two showrooms in Ernakulam and Palakkad (Kerala) totalling 5500 sq ft. SOUTHERN POWER: CARE Lowers Rating on INR894.40cr LT Loan to C -------------------------------------------------------------- CARE Ratings has revised the ratings on certain bank facilities of Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 300.00 CARE C; Stable; Revised from Facilities CARE B+ Long Term Bank 894.40 CARE C; Stable; Revised from Facilities CARE BBB- Short Term Bank Facilities 150.00 CARE A4 Reaffirmed Rationale and key rating drivers CARE Ratings Limited (CARE Ratings) has revised the rating of long-term bank facilities of APSPDCL to CARE C; Stable while reaffirming the rating of the short-term bank facilities. While APSPDCL has been regular in servicing the rated debt (as confirmed with the banker), it was observed that the company had delayed payment for facilities availed from other lenders (not rated by CARE Ratings). This reporting is contrary to the feedback received from APSPDCL through the monthly statement citing timely servicing of all debt. The revision is in line with CARE Ratings' policy of default recognition. The ratings continue to factor in the APSPDCL's high dependence on tariff subsidy and its fluctuating collections and weak financial risk profile characterized by operating loss and negative net worth. The ratings are constrained by the stretched liquidity profile of APSPDCL driven by weak cash flow from operations. However, the ratings continue to favourably factor in the strategic importance of APSPDCL in the power sector for the state underpinning support from the government, its operation in a cost-plus return on equity (RoE) regulatory model that assures stable cash flows and reduction in aggregate technical and commercial loss (AT&C loss) during FY23 (refers to the period from April 01 to March 31). Rating sensitivities: Factors likely to lead to rating actions Positive factors * Improvement in the financial profile of GoAP along with stronger support philosophy for APSPDCL. * Improvement in profitability on sustained basis, leading to improved leverage and coverage metrics. * Improvement in receivable position of discom on a sustained basis. Negative factors * Continued losses with further increase in receivables deteriorating the cash flow position. * Continued stretching of payable days on a sustained basis. * Diminution or delay in support from the state government. Analytical approach: Standalone. Outlook: Stable Stable outlook reflects that the company is expected to maintain steady AT&C loss along with elevated leverage in the medium term. Detailed description of the key rating drivers Key weaknesses * High reliance on tariff subsidy and limited tariff hike in the past: In the past, total power sales volume to domestic and agricultural customers has stood above 50%. However, this category contributed to less than 30% of APSPDCL's power revenue in the past. Most consumers in this category have been heavily subsidised through cross subsidy from other consuming segments. Tariff subsidy as percentage of total operating income (TOI) for APSPDCL, although reduced, has remained high at 19.7% in FY23 (PY: 20%). Realisation of subsidy was 118% in FY23 (PY: 105%). CARE Ratings envisages sustenance of high tariff subsidy component while prompt realisation will be important from the liquidity perspective of the discom. For FY25, APSPDCL has not proposed for any significant tariff revision. Given the recent increase in power purchase cost, comfortable average realization is imperative from profitability point of view. * Weak financial risk profile: The net worth of APSPDCL is negative while outstanding debt remained at elevated level of INR28,383 crore as on March 31, 2023 (PY: INR19,849 crore). PBILDT continued to be in loss during FY23. Operational loss and elevated debt levels have also resulted in weak debt coverage ratios. Moreover, the statutory auditor continues to raise qualified opinion on various issues. * Elevated collection period: The average collection period for the discom, although declined from 186 days in FY22 to 170 days in FY23, remains at an elevated level. The debtor level as on December 31, 2023 has further increased. Most debtors pertain to government entities. Key strengths * Regulated monopoly business: APSPDCL operates in a cost-plus tariff regime having a regulatory framework of filling of Annual Revenue Requirement (ARR) and Tariff petition with APERC. It has the opportunity to recover the cost incurred (subject to approval from APERC) and return on equity. The company has assured revenue under Multi Year Tariff (MYT). * Improvement in operational efficiency: Post COVID-19 restrictions, collection efficiency has significantly improved. This has led to improvement in AT&C loss from 37.5% in FY21 to 15.5% in FY22 and further to 13.69% in FY23. * Strategic importance and financial support from state government: The company is 100% held by GoAP and is strategically important to the state with distribution license accorded by Andhra Pradesh Electricity Regulatory Commission (APERC) to APSPDCL, which caters to major portion of power requirement in the state. By virtue of strategic importance of the distribution utility, the Government has been providing funding support to the utility by way of equity infusion, tariff subsidy and grants apart from the corporate guarantee. Liquidity: Stretched Cash and equivalent of the company stood at INR435 cr as on December 31, 2023. The servicing of debt obligation of the company is dependent on support from Government of Andhra Pradesh in form tariff subsidy and grants. Average utilisation of fund-based working capital limit during trailing 12 months ended November 2023 remained high at 76%. Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) was formed on April 01, 2000, post unbundling of State Electricity Boards by Government of Andhra Pradesh and reorganisation of AP Transmission Corporation (APTRANSCO) into four distribution companies to cater to the needs of the different districts of AP. APSPDCL was formed to cater to six districts in the state of AP, viz., Krishna, Guntur, Prakasham, Nellore, Chittoor and Kadapa. After the bifurcation of the erstwhile Andhra Pradesh into the two new states of Andhra Pradesh and Telangana, on June 02, 2014, two more districts Anantapur and Kurnool have been added under the jurisdiction of APSPDCL. On March 31, 2020, post grant of distribution license to Andhra Pradesh Central Power Distribution Corporation Limited (APCPDCL) by APERC distribution of power in Krishna, Guntur and Prakasam districts moved out of APSPDCL. USHDEV INTERNATIONAL: Ind-Ra Keeps D Rating in NonCooperating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ushdev International Ltd.'s instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR5.0 bil. Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR20.0 bil. Non-Fund Based Working Capital Limit maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR500 mil. Term loan issued on March 31, 2021 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information About the Company Founded in 1994, Ushdev International is a metal trading company that mainly trades nickel, ferrous flat products and long products. VAJRATEJA RICE: Ind-Ra Hikes Loan Rating to BB-, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Vajrateja Rice Cluster Private Limited's (VRCPL) bank facilities to 'IND BB-' with a Stable Outlook from 'IND B+'. The instrument-wise rating actions are: -- INR450 mil. Fund-based working capital limits upgraded with IND BB-/Stable/IND A4+ rating; -- INR464.4 mil. (reduced from INR494.4 mil.) Term loans due on September 2031 upgraded with IND BB-/Stable rating; and -- INR140 mil. Term loans due on September 2032 assigned with IND BB-/Stable rating. Analytical Approach Ind-Ra continues to take a standalone view of VRCPL to arrive at the ratings. Detailed Rationale of the Rating Action The upgrade reflects Ind-Ra's expectation of an improvement in VRCPL's operating performance in FY24 as indicated by 9MFY24 revenue of INR2,901.23 million. Further, the EBITDA margin is likely to improve in FY24, although remain modest, on account of increased absorption of fixed costs, led by the growth in revenue. Ind-Ra expects the company's modest credit metrics to improve in FY24 in the absence of any further debt-led capex and scheduled debt repayments. The ratings continue to factor in seasonality in the business, exposure to commodity risk and competitive industry. Detailed Description of Key Rating Drivers EBITDA Margins to Remain Modest despite Likely Improvement in FY24: VRCPL had incurred operating losses in FY23 due to its nascent stage of operations as it commenced operations in November 2022. FY24 will be the first full year of operations. The return on capital employed was negative 10.5% in FY23. During 9MFY24, the company's EBITDA margins were 6.4%. VRCPL's operating profitability remains susceptible to volatility in raw material prices as the raw material costs account for 84%-90% of the company's total operating cost. The margins in the rice processing industry are range bound as the industry is marked by volumetric sales and lack of significant value additions in the finished products. However, Ind-Ra expects the EBITDA margins to improve in FY24 on account of increased absorption of fixed costs, led by the growth in revenue but remain modest. Continued Modest Credit Metrics: The agency expects the credit metrics to improve in FY24, but remain modest, in the absence of any further debt-led capex and scheduled repayments. During FY24, VRCPL took a term loan of INR140 million to fund capex of INR200 million for increasing the storage capacity. The balance cost was funded by equity of INR60 million. Seasonal Nature Of Business and Competitive Industry: The rice industry in India is characterized by intense competition, with the presence of a large number of both organized and unorganized players attributable to low-entry barriers such as low capital and low technical requirements, and a liberal policy regime. As a result, profitability in the rice processing business tends to be modest. VRCPL's profitability remain vulnerable to a sudden and a sharp volatility in raw material prices, especially paddy, which is highly dependent on monsoon, demand and government regulations. Medium Scale of Operations; Revenue to Improve in FY24: Ind-Ra expects the revenue to grow on a year-on-year basis in FY24 as indicated by revenue of INR2,901.23 million in 9MFY24 (FY23: INR401.1 million). VRCPL deals in both basmati and non-basmati rice, and sells it in the domestic markets. Ind-Ra expects the revenue to grow further in the medium term on the back of higher demand. Experienced Promoters: The company's promoters' have more than two decades of experience in the rice processing industry, leading to established relationships with its customers and suppliers. Liquidity Stretched The company has scheduled debt repayments of INR34 million in FY24 and INR54 million in FY25, which are likely to be met through internal accruals and promoters' infusion. The average maximum utilization of the fund-based limits was 86.82% during the 12 months ended January 2024. The cash flow from operations was INR53.75 million in FY23. The net working capital cycle was 112 days in FY23 with receivable period of 98 days. VRCPL does not have any capital market exposure and relies only on banks and financial institutions to meet its funding requirements. VRCPL's unencumbered cash balance was low at INR0.57 million at FYE23 (FYE22: INR0.5 million). Rating Sensitivities Negative: A substantial decline in the scale of operations, resulting in the weakening of the liquidity position and/or deterioration in the overall credit metrics with the net leverage above 5.5x, all on a sustained basis, could lead to a negative rating action. Positive: An improvement in the liquidity profile and a substantial increase in the scale of operations, along with an improvement in the overall credit metrics, with the net leverage below 4.5x, all on a sustained basis, could lead to a positive rating action. About the Company VRCPL was incorporated on 4 August 2020 and it commenced operations from 11 November 2022. The company is engaged in processing and selling of rice, broken rice and its by-products. The company's rice mill is located in Nalgonda district, Telangana with a processing capacity of 32 tons per hour. VAKRANGEE FOUNDATION: Ind-Ra Keeps B+ Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Vakrangee Foundation's instrument(s) rating in the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency through emails and phone calls. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+/Stable (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR35.30 mil. Term loan maintained in non-cooperating category with IND B+/Stable (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. About the Company Vakrangee Foundation was established in July 2010 and is incorporated under the Societies Registration Act, 1973. Founded by Manish Bohra and Bhawna Bohra, the society runs the Academic World School in Bemetara, Chhattisgarh. VIJAI ELECTRICALS: Ind-Ra Cuts Loan Rating to D, Outlook Positive ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Vijai Electricals Limited's (VEL) bank facilities' ratings to 'IND D' from 'IND BB-'. The Outlook was Positive. The detailed rating actions are: -- INR1,092.3 bil. Fund-based working capital limit (Long- term/Short-term) downgraded with IND D rating; and -- INR5,982.7 bil. Non-fund-based working capital limit (Short- term) downgraded with IND D rating. Analytical Approach Ind-Ra continues to take a standalone view of VEL to arrive at the ratings while factoring in the equity required to be infused by the company in its under-construction joint venture at Algeria, in which VEL holds 40% stake. Detailed Rationale of the Rating Action The downgrade reflects VEL's delays in timely servicing of its debt obligations. VEL's fund-based limits have been overutilized since January 19, 2024 owing to the invocation of bank guarantee limits. The account continues to be overdue. This came to Ind-Ra's notice through the no default statement, provided by the issuer on March 15, 2024 for the months of January and February 2024. Continued overutilization of fund-based limits beyond 30 days Strengths Not Applicable Detailed Description of Key Rating Drivers Continued Overutilization of Fund-based Limits Beyond 30 days: During 4QFY24, the performance bank guarantee, amounting to USD10.1million (INR846 million), of one of VEL's overseas projects was invoked. Since it was unconditional one, it was honored by the bank the same day, resulting in the fund-based account being overdrawn. The account was overdrawn by INR791.4million as of January 31, 2024 and by INR1092.9 million as of February 28, 2024. The management believes that these are wrongful invocations as the projects had successfully achieved commercial operations by December 2019, and the defect liability period had lapsed at end-December 2022. However, as the client was taking longer to close the contracts, the company continued to renew the bank guarantee (last extension sought in November 2023, with validity till March 2024). The management has informed the agency that they are contesting the same in Algeria. The invocation of the bank guarantee has impacted the already stretched liquidity position of the company. The fund-based limits have been overdrawn since January 19, 2024. Rating Sensitivities Positive: Timely debt servicing for at least three consecutive months could result in a positive rating action. Negative: Not applicable About the Company VEL, incorporated in 1980, manufactures electricity distribution transformers and erects T&D lines. In 2005, it entered the business of execution of rural electrification projects. It has a transformer production site in Haridwar and a conductor manufacturing facility in Roorkee. VISHNU OVERSEAS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shri Vishnu Overseas Private Limited (SVOL; a part of the Shri Vishnu group) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 50 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Export Packing 20 CRISIL D (Issuer Not Credit Cooperating) Foreign Bill 20 CRISIL D (Issuer Not Purchase Cooperating) Packing Credit 30 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SVOL for obtaining information through letter and email dated March 15, 2024 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 SVOL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SVOL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SVOL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of Shri Vishnu Eatables (India) Ltd (SVEL) and Shri Vishnu Overseas Pvt Ltd (SVOL), herein referred to as the Shri Vishnu group. This is primarily because both entities are controlled by the same management and are engaged in the same business - processing of rice. The entities also derive considerable operational and business synergies from each other. About the Group SVOL was set up in 1995 by the same promoters. The group is in the business of milling rice as well as wheat. The processing unit of the group is located in Kaithal, Haryana. SVEL was set up as a partnership firm in 1993 and was incorporated in 1996 by Mr. Banarasi Lal Mittal and his five sons. The group mills paddy and trades rice and related items. SVEL's processing unit is in Kaithal (Haryana). WALCHANDNAGAR INDUSTRIES: Ind-Ra Hikes LongTerm Rating to B+ ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has upgraded Walchandnagar Industries Limited's (WIL) long-term debt rating to 'IND B+' from 'IND B' with a Stable Outlook while affirming the short-term debt rating at 'IND A4' as follows: -- INR1,964.10 bil. (reduced from INR2,145.40 bil.) Fund-based working capital limit Long-term rating upgraded; short-term rating affirmed with IND B+/Stable/IND A4 rating; and -- INR4,445.60 bil. (reduced from INR4,595.60 bil.) Non-fund- based working capital limit affirmed with IND A4 rating. Analytical Approach Ind-Ra continues to take a standalone view of WIL for the rating purpose. Detailed Rationale of the Rating Action The upgrade reflects continuous liquidity support available to WIL, stemming from the sale of non-current assets and equity infusions. A proposed equity infusion by FY26 will further aid the liquidity of the company. Ind-Ra also expects an improvement in WIL's profitability and liquidity during FY25-FY27, on account of a likely improvement in the scale of operations, while the disruptions in operations in 3QFY24 will affect the FY24 financials. Detailed Description of Key Rating Drivers Expected Decline in Revenue due to Labor Strike: For 9MFY24, WIL reported INR2,109.69 million in revenue; of which 62.57% pertains to the heavy engineering division (HED); 28.81% pertains to the foundry division and the remaining pertains to the instrumental division. The labors had called a strike for 43 days i.e. from November 22, 2023 to January 3, 2024 and the operations of the company at Walchandnagar Plant were partially impacted. However, the operations were normalized thereafter. Also, contractual workers at the Walchandnagar Plant were working to their capacity and the Satara and Dharwad plants were running at full capacity. WIL has lost revenue of around INR300 million and the overall profitability thus has been impacted for FY24. As of December 31, 2023, WIL had unexecuted orders worth INR9,257.8 million of which INR2,786.50 million pertains to Nuclear division. In FY23, the company's revenue marginally improved to INR3,220.90 million (FY22: INR2,991.90 million; FY21: INR3,256.40 million) due to an increase in the number of orders executed. HED contributed 75.69% to the total revenue in FY23 (FY22: 79.95%; FY21: 86.19%), foundry division contributed around 17.77% (14.05%; 10.62%) and the instrumentation division accounted for the remaining revenue. Within HED, the gear business contributed around 17.04% to the total revenue in FY23 (FY22: 10.46%; FY21: 10.47%), the aerospace and missile business contributed 17.03% (23.83%; 29.39%), and the crushing and grinding business contributed 15.94%% (9.57%; 9.25%). Furthermore, in HED, the revenue from the nuclear business increased to INR134.59 million in FY23 (FY22: INR32.37 million; FY21: INR322.81 million), taking its share in the total revenue to 4.18% (1.09%; 9.91%). Ind-Ra expects revenue for FY24 to remain lower than the FY23 level due to the disruptions in the operations as a result of the labor strike, and to improve gradually in the medium term on the back of the timely execution of the high-value orders and purchase of machinery. Weak Profitability due to Disruptions in Operations: WIL incurred an EBITDA loss of INR346.40 million in FY23 (FY22: EBITDA of INR221.10 million, margin of 7.39%; FY21: INR197.50 million, 6.06%), due to an increase in the cost of goods sold and one-time adjustment for writing-off old non-moving work-in-progress inventory worth INR196.4 million and a provision of INR241.84 million for doubtful debts. After excluding the one-time adjustment, the adjusted EBITDA margin stood at 2.85% and the adjusted EBITDA stood at INR91.84 million for FY23. Also, ROCE remained negative at 8.71% in FY23 (FY22: negative 0.02%; FY21: negative 0.47%). Till 9MFY24, WIL reported 0.62% EBITDA margin with absolute EBITDA amounting INR13.17 million which includes INR54.90 million Industrial Promotion Subsidy received during 3QFY24. The EBITDA margin has been impacted due to the operating loss incurred during 1QFY24 and 3QFY24. EBITDA margin is generally low or negative in 1Q owing to delays in government approvals, allocation of funds and budgetary approvals, while in 3QFY24 owing to the labor strike, the company generated EBITDA losses. Ind-Ra expects profitability to remain weak in the near term and gradually improve in the medium term owing to expected improvement in the scale of operations. Weak Credit Metrics: WIL's credit metrics remained weak and deteriorated in FY23 owing to the fall in the adjusted EBITDA. The gross interest coverage (operating adjusted EBITDA/gross interest expense) weakened to 0.17x in FY23 (FY22: 0.31x; FY21: 0.25x) and the net leverage (total adjusted net debt/operating adjusted EBITDA) deteriorated to 31.70x (22.17x; 23.07x). Ind-Ra expects the credit metrics to remain weak in the near to medium term. Elongated Working Capital Cycle: WIL's net cash conversion cycle remained elongated but improved to 469 days in FY23 (FY22: 692 days; FY21: 572 days), mainly due to a reduction in the inventory days to 407 (581; 493). Furthermore, during FY09, WIL had received two large-size orders, one from Tamil Nadu Electricity Board worth around INR11,250 million, and one from Tendaho Phase-I & II, Ethiopia worth INR7,000 million- 8,000 million, with a delivery period up to two-to-three years. However, the projects were delayed, leading to higher inventory and debtor period, resulting in a cash flow crisis. While the company has started receiving pending dues from Tamil Nadu Electricity Board. Ind-Ra expects the working capital cycle to remain elongated in the near to medium term on account of execution of long lead projects in the nuclear & aerospace division. Issuance of Share Warrants and Capex Plans to Mitigate Delay in Sale of Non-Core Assets: Out of the total projected sale of non-core assets to the tune INR1,101.40 million by FY24, WIL could sell assets worth INR534.69 million only and expects to sell the remaining assets by FY25. However, WIL issued 2,17,18,203 share warrants at INR114 per unit amounting to INR2,475.85 million in November 2023; and of the total amount, INR315.85 million will be adjusted towards promoters loan. The anticipated net cash flow is INR2,160 million; of which, the company has planned to utilize INR1,050 million towards capex; INR410 million towards repayments of term loan and working capital facility; INR500 million towards working capital requirement and balance INR200 million towards general corporate purpose. Till December 2023, one-third of the issue size amounting to INR825.3 million has already been subscribed; out of which, INR620 million has been received and INR205.3 million has been adjusted against the promoters debt. The remaining two-third share warrants are exercisable within 18 months from the date of allotment. Thus, timely exercise of remaining share warrants is a key monitorable. WIL has planned INR1,050 million capex for the period FY25-FY26 mostly for its aerospace, nuclear and gear divisions; the remaining capex will be for the upgradation of machinery. Successful Execution of Standstill Conditions: WIL had delayed the servicing of KKR India Financial Services Private Limited's (KKR) term loan and the non-convertible debentures issued to KKR India Debt Opportunities Fund II in FY21. On March 31, 2022, KKR assigned the entire debt of INR2,073 million to Assets Care and Reconstruction Enterprise Limited (ACRE) for a settlement value of INR720 million, of which INR620 million was funded by ACRE and the remaining INR100 million was funded by WIL, via inter-corporate deposits. As per the standstill agreement between WIL and ACRE, which was signed on July 19, 2022, all the existing event of default would be waived during the standstill period of April 12, 2022 to April 12, 2023. WIL would have to pay monthly interest of INR8.27 million during the standstill period, and an aggregate payment of INR250 million at the end of the standstill period. Furthermore, WIL needed to issue 7% of the total issued and paid-up share capital in favor of ACRE. WIL has complied with the conditions imposed by the latter. WIL has to repay the remaining INR370 million along with payment-in-kind loan of INR39.2 million by March 31, 2025. The company has to repay the same through the sale of non-core assets. In case of any shortfall, it expects to use equity infusion resources. Liquidity Poor: WIL's average maximum utilization of the fund-based limits was 94.91% for the 12 months ended February 2024. Its cash and cash equivalent stood at INR17.80 million at FYE23 (FYE22: INR29.40 million; FYE21: INR29.20 million). While the cash flow from operations and free cash flow turned positive in FY23 at INR267.20 million (FY22: negative INR423.10 million; FY21: INR25.60 million) and INR251.50 million (negative INR454 million; negative INR41 million), respectively, due to favorable changes in the working capital, cash flow from operations remains a key monitorable considering the 9MFY24 performance. WIL has high repayment obligations of INR378.1 million and INR300 million in FY24 and FY25, respectively, which are likely to be funded through equity infusions and the sale of non-core assets. Rating Sensitivities Negative: Lower-than-expected profitability, or further delays in the monetization of non-core assets or non-exercise of the remaining share warrants, leading to further deterioration in liquidity, on a sustained basis, would be negative for the ratings. Positive: An improvement in the operating profitability, timely exercise of the remaining share warrants and the sale of non-core assets, leading to an improvement in the liquidity, on a sustained basis, would be positive for the ratings. About the Company Established in 1908, WIL provides engineering, procurement and construction solutions and supply's machinery and equipment to the aerospace and missile, defense, nuclear, gears, centrifugal, and sugar sectors. WIL has HED, foundry division and instrumentation division. YASH SPECIALITY: CARE Reaffirms B+ Rating on INR41.54cr LT Loan --------------------------------------------------------------- CARE Ratings has reaffirmed ratings on certain bank facilities of Yash Speciality Chemicals LLP (YSCLLP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 41.54 CARE B+; Stable Reaffirmed Short Term Bank Facilities 5.50 CARE A4 Reaffirmed Rationale and key rating drivers The rating assigned to the bank facilities of YSCLLP remains constrained by its small scale of operations coupled with losses, leveraged capital structure and weak debt coverage indicators and stretched liquidity during FY23 (Audited, FY refers to period April 1 to March 31). The ratings also remained constrained by working capital intensive nature of operations and exposure to risks inherent in the chemical industry. However, the ratings favorable considers established track record of the promoters in chemical industry, diversified customer base with track record of repeat business and execution of offtake agreement providing fixed revenue visibility. Rating sensitivities Positive factors: * Improvement in scale of operations beyond INR150 crores along with sustained operating margin above 15%. * Improvement in debt coverage indicators marked by PBILDT interest coverage of more than 2 times and TDGCA of 15 years or below. Negative Factors: * Consistent reporting net losses leading to significant erosion of networth base. * Significant debt funded capex leading to deterioration in capital structure as well as putting pressure on liquidity. Analytical approach: Standalone Outlook: Stable The stable outlook reflects CARE's belief that the company shall sustain its moderate financial risk profile in the medium term. Detailed description of the key rating drivers: Key weaknesses * Small Scale of operations coupled with losses during FY23 During FY23 the scale of operations marked total operating income of YSCLLP decreased by 19.19% due to lower demand of chemicals mainly Sodium Naphthionate during the year. Thus, Total operating income (TOI) stood at INR75.82 crore during FY23 (P.Y. INR93.83 crore). Given that the manufactured products command low margins, the firm was unable to cover its operating costs and thus reported an operating loss during FY23. Further, with high interest costs and increase in deprecation associated with commission of new manufacturing unit, the firm also reported a net loss during FY23. However, during 9MFY24 YSCLLP has added two products in its portfolio i.e. DCHA (2,3 Dichloro Aniline) and O-CTC (OChlortritylchlorid Tchn. Hawa Trommel), which have higher margin. This had a positive impact on the firm's topline and thus, YSCLLP reported a TOI of INR80.65 crore with PBILDT of INR12.18 crore. YSCLLP expects to book TOI of INR95 - INR97 crore for FY24. * Leveraged capital structure along with weak debt coverage indicators: The capital structure of YSCLLP though improved due to increase in networth base as a result of capital infusion to the tune of INR26.36 crore continued to remain leveraged at 2.27x as on March 31, 2023 as against 4.23 times as on March 31, 2022. Debt coverage indicators remained weak on the back of operating as well as net losses. However, during 9MFY24 capital structure of the firm improved on the back of additional capital infusion worth INR8.50 crore which enhanced its networth base. Thus, overall gearing stood at 0.97x as on December 31, 2023. Further, improvement in profitability of YSCLLP positively impacted its debt coverage parameters as interest coverage and TD/GCA stood at 3.37x and 7 years as on December 31, 2023. * Working Capital intensive nature of operations: The operations of the company are working capital intensive in nature. The company has to maintain inventory of around 2-3 months. The company is associated with the suppliers since 2021. The inventory period however has increased from 44 days in FY22 to 86 days in FY23. The average creditor period remains high at 126 days in FY23 (PY: 117 days) as the company gets clean credit of 30-120 days from its suppliers. The company had managed to fund its working capital gap by utilizing its working capital limit and additional capital infusion. * Exposure to risks inherent in the chemical industry: The chemical industry is regulated by specific and separate registration processes in different countries. Changes in the export and import policy of these countries will affect Indian agrochemical exporters. Key Strengths * Extensive experience of promoters in chemical industry: The firm is a part of Patel group. For the past 70 years, it is one of the leading and most reputed chemical producers in India with an aim to stand as an example of excellence in the chemical manufacturing industry. In the last 3 years, the company have set up two Chemical Manufacturing plants in Dahej. The group is also affiliated in the manufacturing of Machinery specifically, Glass-lined reactors and Agitated Filter Dryers. The Group has 4 promoters Mr. Himanshu Patel, Nilesh Patel, Harsh Patel & Mr. Aalap Patel with experience of more than 45+ years & adequate qualification in the chemical engineering industry. * Diversified revenue stream with presence specialty chemicals value chain: YSCLLP has diversified customers from domestic as well as international market. YSCLLP derives 28% of its revenue by exporting to Germany, Japan, USA, Spain and Taiwan and rest from domestic market. In Domestic market YSCLLP sells its products to Gujarat, Maharashtra and Rajasthan. Further, its customer profile also remained moderately diversified with top ten customers contributing to 71% of the total revenue during FY23 (PY 73%). The company has established long-term relationships with most of its customers resulting into repeat business. Also, the realizations from export receivables are timely. Further, during 9MFY24, YSCLLP has added two products in its portfolio which has positively affected scale of operations and profitability. * Execution of offtake agreement providing fixed revenue visibility: The firm has entered into an offtake agreement with a Germany based MNC for purchase of 220 tons per annum of two products namely DCHA and O-CTC from YSCLLP for a period of four years. The contract will help the firm to gain profitability and revenue which will stabilize YSCLLPs operations. Liquidity: Stretched The liquidity of YSCLLP remained stretched marked by moderately high utilization of its working capital limit, negative cash flow from operations and low cash and bank balance. The average utilization of its working capital limit remained moderately high at 63% for past one year ended December 31, 2023 post which the limit was closed. However, post closure of limits with SBI the utilization remained 10% with ICICI bank. The cash flow from operations turned negative at INR17.54 crore as against positive cash flow of INR9.73 crore as a result of losses along with decrease in creditors during the year. The cash and balance stood low at INR0.44 crore as on March 31, 2023. During FY23 YSCLLP has reported cash losses, however during 9MFY24 the firm has reported gross cash accruals of INR4.26 crores. In spite of this cash accruals are expected to remain tightly matched its repayment obligations. Further, During FY23 and 9MFY24 promoters have infused capital of INR26.36 crore and INR8.50 crore respectively to manage working capital need as well as repayment of loans. Yash Speciality Chemicals LLP is a Limited Liability Partnership firm incorporated on 12 September 2013. It is registered at Registrar of Companies, Ahmedabad. Designated Partners of Yash Speciality Chemicals LLP are Harsh Himanshubhai Patel, Nilesh Khushalbhai Patel and Pritesh Subhashchandra Patel. YSCLLP has its Speciality Chemical plant in Dahej (Outside SEZ), commissioned in 2021 January. YSCLLP is a part of the Patel group which includes companies such as HLE Glascoat Limited and Yashashvi Rasayan Private Limited. =============== M A L A Y S I A =============== VIKUDHA MALAYSIA: TriLinc Global Marks $18.4MM Loan at 62% Off -------------------------------------------------------------- TriLinc Global Impact Fund, LLC has marked its $18,484,704 loan extended to Vikudha Malaysia Sdn Bhd to market at $7,032,859 or 38% of the outstanding amount, as of December 31, 2023, according to a disclosure contained in TriLinc Global's Form 10-K for the Fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission on March 29, 2024. TriLinc Global is a participant in a Senior Secured Term Loan to Vikudha Malaysia Sdn Bhd. The loan accrues interest at a rate of 12% per annum. The loan matured last June 30, 2023. TriLinc Global classified the loan as non-accrual. TriLinc Global Impact Fund, LLC was organized as a Delaware limited liability company on April 30, 2012 and formally commenced operations on June 11, 2013. As a result of the Company's LLC structure, the Company's unit holders have limited legal and financial liability for the obligations or debts of the Company. The Company makes impact investments in Small and Medium Enterprises, known as SMEs, which the Company defines as those businesses having less than 500 employees, primarily in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. The fund is lead by Chief Executive Officer Gloria S. Nelund and Chief Financial Officer Mark A. Tipton. The fund can be reach through: TriLinc Global Impact Fund, LLC 1230 Rosecrans Avenue, Suite 605 Manhattan Beach, CA 90266 Tel: (310) 997-0580 Founded in 1978, TS Plastics Sdn Bhd is a company specializing in plastic bags printing and manufacturing. ===================== N E W Z E A L A N D ===================== DS COLLISION: Creditors' Proofs of Debt Due on May 8 ---------------------------------------------------- Creditors of DS Collision Limited are required to file their proofs of debt by May 8, 2024, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 5, 2024. The company's liquidator is: Brenton Hunt PO Box 13400 City East Christchurch 8141 J B TECHNOLOGY: Grant Bruce Reynolds Appointed as Liquidator ------------------------------------------------------------ Grant Bruce Reynolds of Reynolds & Associates was appointed as liquidator of J B Technology Limited on April 9, 2024. The liquidator may be reached at: Reynolds & Associates Limited PO Box 259059 Botany Auckland 2163 JORLAND CONSTRUCTION: Court to Hear Wind-Up Petition on April 24 ---------------------------------------------------------------- A petition to wind up the operations of Jorland Construction Limited will be heard before the High Court at Auckland on April 24, 2024, at 10:00 a.m. Sillsco Limited filed the petition against the company on Jan. 25, 2024. The Petitioner's solicitor is: Duncan Lang Smith and Partners Lawyers 293 Lincoln Road Henderson Auckland 0610 ORMAT LIMITED: Court to Hear Wind-Up Petition on April 24 --------------------------------------------------------- A petition to wind up the operations of Ormat Limited will be heard before the High Court at Auckland on April 24, 2024, at 10:00 a.m. The Ministry of Social Development, thru the Attorney-General, filed the petition against the company on Jan. 11, 2024. The Petitioner's solicitor is: Nick Malarao Meredith Connell Level 7, 8 Hardinge Street Auckland WALLACE & GIBBS: To Close Two Arrowtown Fashion Stores in July -------------------------------------------------------------- Otago Daily Times reports that the Wallace & Gibbs group will close two of its six retail stores in July. The Arrowtown-based retail group is the founder of fashion and clothing stores The Woolpress, Wallace & Gibbs, IKON and GOALS in Arrowtown, as well as the high-profile luxury lifestyle stores Te Huia in Queenstown and Arrowtown. After decades of retail expansion, the family-owned business built by Delvine Wallace and Bruce Gibbs will call time on their Buckingham St fashion stores Wallace & Gibbs and IKON in July, according to ODT. "We've had a great run with these two businesses, and while it's with mixed emotions we let them go, as a family and as a group, it feels like the right time," ODT quotes Ms. Wallace as saying. "We are very proud of what was achieved." ODT says the decision to close the two independent stores came after 30 years of successful trading for Wallace & Gibbs and 18 years for IKON. "Although the businesses remain profitable, the ongoing hangover from Covid-19 with supply chain and staff recruitment issues, increased business costs, significant changes to shoppers' habits, and online shopping pressure is a sign. "With both store leases up this July, we saw it as opportune to close that chapter and put renewed energy and vigour into our other tourism and fashion enterprises." She said both stores have served a significant part of their Arrowtown family and community life, with daughters Caroline Walak, Sophie Gibbs, and Elizabeth Wallace-Gibbs growing up in the businesses. According to ODT, the two Buckingham St stores will host rolling closing down sales from April 12 until the end of June. The Wallace & Gibbs group will continue to operate Te Huia in Queenstown and Arrowtown as well as The Woolpress and GOALS in Arrowtown. Caroline Walak, Sophie Gibbs and Elizabeth Wallace-Gibbs have paid homage to their parents for creating such a dynamic fashion enterprise from their Arrowtown base, adds ODT. YK FOOD SERVICE: Court to Hear Wind-Up Petition on May 3 -------------------------------------------------------- A petition to wind up the operations of YK Food Service Limited will be heard before the High Court at Auckland on May 3, 2024, at 10:45 a.m. Food Brands Group Limited filed the petition against the company on March 13, 2024. The Petitioner's solicitor is: Umar Abdul Kuddus C/- Phoenix Law Limited 200 Willis Street Te Aro Wellington 6011 ===================== P H I L I P P I N E S ===================== ENTREGO FULFILLMENT: Ayala Books PHP3BB Loss From Zalora Venture ---------------------------------------------------------------- Bilyonaryo.com reports that Ayala Corp. (AC) led by bilyonaryo Jaime Augusto Zobel de Ayala is taking a massive hit from shutting down its online delivery business, Entrego Fulfillment Solutions. AC revealed that it booked a PHP2.847 billion impairment loss on its investments after "winding down" Entrego's operations, Bilyonaryo.com discloses. This is on top of the PHP132 million impairment loss in assets. Bilyonaryo.com relates that the decision to integrate Entrego into AC Logistics, effective December 2023, was prompted by "continuing challenges" in Entrego's profitability. Entrego ceased its operations on April 1. AC, through AC Infrastructure, took majority interest in Entrego in 2018 with German firms Brilliant 1257 GmbH and Co. and Vierte Verwaltungs Kg as its minority partners. Brilliant is an affiliate of Zalora, the report notes. Entrego's five-year deal to provide logistics and fulfillment solutions services to Zalora was not renewed after it lapsed last December, Bilyonaryo.com says. By consolidating Entrego's operations into AC Logistics' Air21 Holdings (which AC took over in 2022), the holding company aims to enhance results through cost reduction, efficiency improvements, expanded coverage, and improved service agreements. Prior to Entrego's closure, AC injected nearly PHP1 billion in capital infusions throughout 2023. As of December 2023, Entrego had an outstanding loan balance of PHP2.75 billion, Bilyonaryo.com discloses. GOTYME: Losses Soar to PHP3BB in First Full Year of Operations -------------------------------------------------------------- Bilyonaryo.com reports that GoTyme, chaired by ultra bilyonaryo Lance Gokongwei, achieved its target of over two million customers but at the cost of nearly PHP3 billion losses in 2023. GoTyme, a joint venture between Gokongwei's Robinsons Retail Holdings Inc. (RRHI) and Singapore-based digital banking group Tyme, reported a PHP2.47 billion loss in 2023, its first full year of operations since its launch in October 2022, Bilyonaryo.com discloses. This is 171 percent more than the PHP910 million it burned in 2022. GoTyme revenues hit PHP267.79 million, up 1,512 percent from PHP16.61 million in 2022, Bilyonaryo.com relays. According to Bilyonaryo.com, RRHI, which owns 20 percent of GoTyme, took a PHP503 million hit from the digital bank, more than double its PHP214 milion loss in 2022. Bilyonaryo.com notes that GoTyme has reduced its saving rates to four percent per annum last month from its promo rate of five percent "to align with recent economic indicators and market expectations." At the very least, GoTyme can find solace in the fact that it's not alone among digital banks facing financial challenges, Bilyonaryo.com states. Bangko Sentral ng Pilipinas noted that only two out of the six online lenders have been profitable since receiving their licenses in 2022. The BSP also anticipates that most of these digital banks will continue to accrue losses during the initial five to seven years of their operations. ================= S I N G A P O R E ================= DYNAOPTICS LTD: Commences Wind-Up Proceedings --------------------------------------------- Members of Dynaoptics Ltd on April 4, 2024, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Tan Wei Cheong Lim Loo Khoon Deloitte & Touche LLP 6 Shenton Way OUE Downtown 2, #33-00 Singapore 068809 GOLDEN EQUATOR: Court Enters Wind-Up Order ------------------------------------------ The High Court of Singapore entered an order on April 5, 2024, to wind up the operations of Golden Equator Private Capital II Pte. Ltd. The company's liquidators are: Mr. Cameron Lindsay Duncan Mr. David Dong-Won Kim c/o KordaMentha 16 Collyer Quay #30-01 Singapore 049318 GRACE OCEAN: Dali Owners Declare General Average ------------------------------------------------ Grace Ocean Private Ltd., the owner of M/V DALI, a cargo ship that rammed into Francis Scott Key Bridge in Baltimore on March 26, 2024, has declared General Average. Charterers Maersk Line's partner MSC said in a statement on April 12 that "The vessel's salvage operations are still ongoing, but Maersk Line informed us today that their vessel Owners have declared General Average. "No indication is communicated so far as when and where their vessel will be berthed and discharged, but this decision indicates that the Owners expect the salvage operations to result in high extraordinary costs for which they expect contribution from all salvaged parties under General Average. "Richards Hogg Lindley (RHL), London has been appointed as their General Adjuster and they notified us of their intention to keep all containers, including MSC's containers, under their control until security arrangements have been made with the Average Adjusters, both for General Average and Salvage." The adjusters would contact cargo owners directly in due course and would provide relevant information on how to proceed and act, MSC added. Meanwhile, RHL advised cargo and container interests to provide General Average security, either through an Average Guarantee for insured cargo or an Average Bond for uninsured cargo. Insured cargo should send completed Average Guarantees to RHL via email, while uninsured cargo should submit Average Bonds electronically or provide a cash deposit. General Average security forms and further information, including cargo release procedures, will be available on the RHL Casualty Website. Cargo will only be released after acceptable General Average security has been provided. RHL added that freight forwarders handling LCL/Groupage cargo should urgently provide a full breakdown of containers to RHL to identify individual shipments within them. For more information and access to General Average security forms, visit: https://rhlclientarea.ctplc.com (Select vessel name "DALI" and enter the password "GDAL575863"). Richards Hogg Lindley can be reached at: Richards Hogg Lindley Suite 3.07, Edward Pavilion Albert Dock Liverpool, L3 4AF, UK Tel: +44 151 227 2175 Email: dali-casualty@rhl-ct.com The Francis Scott Key Bridge was a 1.6-mile span over the Patapsco River at the outer crossing of the Baltimore Harbor. It is owned by the Maryland Transportation Authority. The Key Bridge was completed in 1977 and made up part of Interstate 695, also known as the Baltimore Beltway. Grace Ocean Private Limited is the registered owner of the M/V DALI, a containership of 95,128 gross metric tons. Synergy Marine Pte Ltd. was the manager of the vessel. Synergy was responsible for, among other things, manning and victualing the vessel, procuring and providing deck, engine, and cabin stores, maintenance and repairs for hull and machinery, providing spare parts, maintenance and repairs for the vessel, and communicating with Owner and the vessel's time charterers. At all relevant times, Synergy had substantial control of and exercised dominion over the vessel. M/V DALI was chartered by Maersk and was carrying MSC customers' cargo. Grace Ocean Private Limited and Synergy Marine Pte Ltd. are both based in Singapore. HAMPTON CAPITAL: Commences Wind-Up Proceedings ---------------------------------------------- Members of Hampton Capital Pte Ltd, on April 11, 2024, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Ms. Oon Su Sun Ms. Dang Looyean Finova Advisory 182 Cecil Street #30-01 Frasers Tower Singapore 069547 HCZ CONSTRUCTION: Court to Hear Wind-Up Petition on April 26 ------------------------------------------------------------ A petition to wind up the operations of HCZ Construction (Private) Limited will be heard before the High Court of Singapore on April 26, 2024, at 10:00 a.m. Maybank Singapore Limited filed the petition against the company on April 4, 2024. The Petitioner's solicitors are: M/s Advent Law Corporation 111 North Bridge Road #25-03 Peninsula Plaza Singapore 179098 SEN YUE: Assisting in MAS Investigation --------------------------------------- The Business Times reports that Catalist-listed waste management company Sen Yue Holdings said on April 14 that it is assisting the Monetary Authority of Singapore (MAS) with an investigation into offences under the Securities and Futures Act. In a bourse filing, the company said it was served with an order under Section 20 of the Criminal Procedure Code 2010 from MAS' enforcement department on April 12, which requires it to provide certain documents to the authorities for their investigation, BT relates. Such documents include all e-mails, and corresponding attachments, involving Chee Yoh Chuang and Lin Yueh Hung of RSM Corporate Advisory with the group between Aug. 1, 2020, and Aug. 31, 2022. BT says Sen Yue is also required to provide all meeting minutes taken during this period; all contracts that it has or had with its key supplier, alongside all documents in connection with the contracts, such as transaction records; financial information, including the group's accounting records; as well as the group's segment revenue and results. On top of this, Sen Yue is required to provide a detailed chronology of events relating and leading up to its corporate announcements between Sept. 14, 2020, and July 21, 2022, along with documents in connection with the associated transactions and events in each announcement, BT relays. It also has to disclose information concerning both internal and external parties who were involved in the aforementioned events. According to BT, Sen Yue said it has "furnished certain documents to MAS", and that it will provide the remaining documents by April 26, 2024. The company noted that solder manufacturer Electroloy Metal and Yap Shiau Wei - Sen Yue's general manager and personal assistant to executive chairman Yap Meng Sing - have also received a separate order by MAS to assist with its investigation, BT says. Yap has since attended an interview conducted by MAS in relation to the investigation, Sen Yue added. As of April 14, no charges have been made against any person or the company. No restrictions or conditions have been imposed on Sen Yue or Yap by the authorities, the company said, adding that no travel documents have been retained. Sen Yue's board does not expect the group's business and operations to be affected by the investigation, BT notes. "The board and the company will extend their full cooperation to assist with the investigation," Sen Yue said, adding that the board "will continue to monitor the progress of the investigation," BT relays. "The company will make further announcements to keep shareholders informed as and when there are further material updates and developments in respect of the investigation." Shares of Sen Yue have been suspended from trading since May 4, 2020. About Sen Yue Holdings Sen Yue Holdings Limited is an investment holding company. The Company is principally engaged in three business verticals: e-waste management solutions, commodities trading, and surface coating and related services. The Company provides holistic e-waste management solutions to local and overseas customers. It offers e-waste management solutions in Singapore to recycle lithium-ion batteries. The Company's commodities trading and processing business activities is an extension of its e-waste management business by creating new value in metal scraps. Its surface coating and related services offer protection from corrosion and extend the service life of its customers' products and components, while staying environmentally friendly. In April 2021, Sen Yue Holdings and its subsidiary, SMC Industrial (SMCI), were placed under interim judicial management (IJM). Chee Yoh Chuang and Lin Yueh Hung have been appointed as the joint and several IJMs of Sen Yue and SMCI. THREE ARROWS: Appeal on Defiance Ownership Case Order Dismissed --------------------------------------------------------------- The Business Times reports that the Appellate Division of the High Court of Singapore has dismissed Three Arrows Capital (3AC) and its liquidators' application for permission to appeal against the Jan. 26 court order, which allowed DeFiance Capital's Arthur Cheong to serve the liquidators in the British Virgin Islands (BVI). In the latest ruling released on April 12, Appellate Judge Debbie Ong and High Court Judge Valerie Thean said the requirements to ground why the Singapore Court is the appropriate court to handle the Cheong's civil claim are met, BT relates. According to BT, the claim concerns the beneficial ownership of the assets of 3AC-linked fund DeFiance Capital, or DC assets, which Cheong claims to be a "standalone fund" after he entered into an independent fund arrangement with Three Arrows in 2019. Following the collapse of US dollar stablecoin Terra, 3AC was put under liquidation on Jun 27, 2022, by a BVI court. The Singapore High Court recognised the liquidation proceedings as a foreign main proceeding upon the liquidators' application in July 2022. On Nov. 4, 2022, Cheong filed an application for permission to commence proceedings against 3AC in relation to the DC assets. Cheong claims that that DC assets, including contracts for equities or crypto assets entered in 3AC's name and agreements for future equities and tokens, were held on trust "for the benefit of the DC investors", including himself. About 12 hours later on that same day, the liquidators filed an application in the BVI liquidation proceedings seeking orders that the DC assets were beneficially owned by Three Arrows instead. Cheong secured Singapore High Court's approval to serve an originating claim and statement of claim on 3AC's liquidators in the BVI. The BVI courts also permitted the liquidators to serve Cheong with the BVI parallel proceedings. The two orders culminated as the liquidators filed a set aside application in the Singapore courts last July, which was dismissed last August. Meanwhile, the BVI court dismissed a similar set aside application from Cheong last December. The BVI judgment noted that it was the "clearly or distinctly the appropriate forum" at the time when permission was given for service out of jurisdiction. The BVI court found that by submitting a claim for a loan in the insolvency jurisdiction, Cheong had submitted to the BVI court's jurisdiction. An application for permission to appeal against that decision is pending. Relying on the BVI judgment, the liquidators sought permission to appeal the High Court's decision dismissing their application, arguing Cheong and the DC assets' investors were bound to BVI-law governed subscription agreements and the transactions had been implemented through a BVI investment structure. The BVI ruling considered the substantive dispute to be broader than simply the beneficial ownership claim between Cheong and the liquidators, and thought that there was a distinct advantage of continuing the proceedings in the BVI, where all BVI creditors of Three Arrows could participate. It also stated that the cross-border insolvency protocol (CBIP) and the liquidators' Singapore recognition did not mean that Singapore was the appropriate jurisdiction to settle the beneficial ownership claim. BT says Judge Ong and Judge Thean, however, noted that the CBIP forged between the Singapore and BVI courts under the Judicial Insolvency Network guidelines last November did not have a bearing on Cheong's civil claim as the agreement "is peculiar to the precise factual matrix of the case" and its interpretation "does not offer a general point of importance" in the context of a court forum decision. They also examined whether the location of the crypto assets opened a jurisdictional gateway inquiry. While the BVI court looked to the residence of the owner of the crypto assets to determine the asset location, the Singapore court found that the DC assets were situated in Singapore because they were controlled by Singapore resident Cheong or an associated DC Singaporean incorporation, Defiance Ventures, BT relates. "The location of a crypto asset was best determined by looking at where it was controlled. In determining the location of the person who controls the crypto assets, the appropriate test is residence rather than domicile since residence is more indicative of the place of control," said the judges, noting that the BVI court had not concluded that 3AC was the owner of the crypto assets, BT relays. They added that there was also a good arguable case that the claim was founded on a cause of action arising in Singapore, because the "trust arose in substance" in the country. "The trust arose due to the independent fund arrangement, the agreement and discussions of which took place in Singapore. "Furthermore, among other things, the initial transfer of crypto assets occurred when Three Arrows was headquartered in Singapore and Three Arrows' investment manager was then a Singapore company." As to whether Singapore was the appropriate forum, the appeal judges disagree with the BVI court that Cheong's submission of a claim form for a loan in the insolvency jurisdiction amounted to his submission to jurisdiction in the parallel BVI proceeding, according to BT. They highlighted under Singapore law: "Submission to jurisdiction may relate to the existence of jurisdiction in that court but another jurisdiction may still be considered the forum conveniens in respect of the exercise of jurisdiction." They said the liquidators' arguments reflected a risk of inconsistent decisions between the Singapore and BVI courts, but that was just one aspect to consider and was not a point of principle. "In sum, there is no issue of general principle or point of importance that should be adjudicated upon by a higher tribunal . . . the applicants' true complaint is that the Judge did not rule in their favour," the judges, as cited by BT, ruled. They also rejected further arguments that the lower court judge erred in failing to give sufficient or significant weight to factors of Cheong's pleased case that the trust was created through a BVI master-feeder fund structure, and of the location of the potential witnesses identified by the respondent, BT adds. "It is clear that the Judge took into account the presence of a competing forum, the applicability of BVI law as the governing law and the BVI being the centre of main interests, in holding that Singapore is the more appropriate forum. "The BVI Judgment accorded a different weight to these factors. However, this reflects a difference of opinion in the manner in which the law should be applied to the facts, and not a prima facie error," the appeal judges ruled. About Three Arrows Capital Three Arrows Capital Ltd. was an investment firm engaged in short-term opportunities trading, and is heavily invested in cryptocurrency, funded through borrowings. As of April 2022, the Debtor was reported to have over $3 billion of assets under its management. Three Arrows Capital Ltd. was incorporated as a business company under the laws of the British Virgin Islands. Its sole shareholder owning all of its "management shares" is Three Arrows Capital Pte. Ltd., which previously operated as a regulated fund manager in Singapore until 2021, when it shifted its domicile to the BVI, as part of a global corporate plan to relocate operations to Dubai. The Debtor borrowed digital and fiat currency from multiple lenders to fund its cryptocurrency investments. After cryptocurrency lost 99% of its value, and then prices of other cryptocurrencies had rapid declines, the Debtor reportedly defaulted on its obligations. On June 24, 2022, one of the Debtor's many creditors -- DRB Panama Inc. -- filed an application to appoint joint provisional liquidators -- and thereafter, full Liquidators -- in the Eastern Caribbean Supreme Court in the High Court of Justice (Commercial Division) located in BVI. The application was assigned claim number VIHCOM2022/0117. Subsequently, on June 27, 2022, the Debtor filed its own application for the appointment of joint liquidators before the BVI Commercial Court. On June 29, 2022, the Honorable Mr. Justice Jack of the BVI Commercial Court appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital Ltd. UNICORN PARTNERS: Commences Wind-Up Proceedings ----------------------------------------------- Member of Unicorn Partners Pte Ltd, on April 5, 2024, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Wong Joo Wan Tina Phan Mei Ting Alternative Advisors 1 Commonwealth Lane #06-21 One Commonwealth Singapore 149544 ================= S R I L A N K A ================= CAPITAL ALLIANCE: Fitch Removes 'BBf(lka)' Rating on Watch Negative ------------------------------------------------------------------- Fitch Ratings has removed Sri Lanka-based Capital Alliance Investment Grade Fund's National Fund Credit Quality Rating and National Fund Market Risk Sensitivity Rating from Rating Watch Negative (RWN) and has affirmed the ratings at 'BBf(lka)' and 'S4(lka)', respectively. KEY RATING DRIVERS The removal of the RWN reflects the fund's improved weighted-average rating factor (WARF). This follows the removal of the RWN on certain underlying fund assets and the decline of assets that are not publicly rated by a globally recognized rating agency. The fund invests directly and indirectly in Sri Lankan government securities and securities issued by leading local financial institutions. NATIONAL CREDIT QUALITY The National Fund Credit Quality Rating takes into account the fund's actual and prospective credit quality. The WARF, Fitch's proprietary measure of fund credit risk, was 11.1 at mid-March 2024. This was within the 'BBf(lka)' rating range of 6.1-15.8. A fund's WARF is a function of the credit ratings on the securities held in a fund's portfolio and the remaining term to maturity, weighted by market value. Fitch bases the WARF on Fitch ratings where available. Fitch assumes securities that are not publicly rated by a globally recognized rating agencies carry 'CCC(lka)' ratings in calculating the WARF. MODERATE TO HIGH SENSITIVITY TO MARKET RISK The National Fund Market Risk Sensitivity Rating reflects the fund's moderate to high sensitivity to interest-rate and spread risk. The fund's weighted-average maturity and weighted-average life was 4 months and 7 months, respectively, at mid-March 2024. The fund's investment strategy allows a longer duration given market conditions. FUND PROFILE The fund, launched in 2013, is domiciled in Sri Lanka. It is authorised and regulated by the Sri Lankan Securities and Exchanges Commission. The fund's assets are segregated with the trustee, Deutsche Bank AG, Colombo Branch, a subsidiary of Deutsche Bank AG (A-/Stable/F2). The fund size was around LKR48 billion at mid-March 2024. INVESTMENT MANAGER Fitch regards Capital Alliance Investments Limited as a suitably qualified, competent and capable investment manager for the fund. The manager, founded in 2011, is majority owned by Capital Alliance Limited, with a minority holding by Sri Lanka Insurance Corporation Limited. Capital Alliance Investments Limited was the country's second-largest investment manager, with a market share of about 18% and total assets under management of LKR78 billion in unit trust funds, as of end-January 2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: The National Fund Credit Quality Rating could be upgraded if the fund adjusts its investment guidelines to focus only on higher-quality securities. The National Fund Market Risk Sensitivity Rating could be upgraded if the fund's investment strategy facilitates a shorter duration. Factors that could, individually or collectively, lead to negative rating action/downgrade: The National Fund Credit Quality Rating could be downgraded if the portfolio suffers negative rating migration or if the fund's strategy changes to invest in lower-quality securities. The rating is also sensitive to exposures that are not publicly rated by a globally recognised rating agency and where Fitch may have more conservative credit views than other rating agencies. The National Fund Market Risk Sensitivity Rating could be downgraded if the investment guidelines allow the fund to increase duration risk. Entity/Debt Rating Prior ----------- ------ ----- Capital Alliance Investment Grade Fund Natl Fund Cr Qual BBf(lka) Affirmed BBf(lka) Natl Sensitivity S4(lka) Affirmed S4(lka) ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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