/raid1/www/Hosts/bankrupt/TCRAP_Public/240517.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
Friday, May 17, 2024, Vol. 27, No. 100
Headlines
A U S T R A L I A
ACT CENTRAL: Second Creditors' Meeting Set for May 20
E-MERSION MEDIA: Collapses Into Liquidation, All Staff Lose Jobs
ENCAPTO PTY: Second Creditors' Meeting Set for May 20
FRIENDLY HEARTS: Second Creditors' Meeting Set for May 20
JARL ENTERPRISES: First Creditors' Meeting Set for May 21
RICHORE PTY: Second Creditors' Meeting Set for May 21
VESTONE CAPITAL 2: Fitch Affirms 'BBsf' Rating on Class E Notes
XTC LITHIUM: ASIC Restricts Issuance of Reduced-Content Prospectus
I N D I A
A B ROLLING: CRISIL Assigns B Rating to INR33.50cr Cash Loan
ACCORD ELECTROPOWER: CARE Keeps B- Debt Rating in Not Cooperating
ADAM & COAL: ICRA Keeps B+ Debt Rating in Not Cooperating
AJAB SINGH: ICRA Withdraws C Rating on INR20.50cr LT Loan
AKSHARA MOTORS: ICRA Keeps B+ Debt Ratings in Not Cooperating
ARTEDZ FABS: CARE Keeps D Debt Rating in Not Cooperating Category
AVNI ENERGY: ICRA Keeps D Debt Ratings in Not Cooperating
BAFNA GINNING: ICRA Keeps B+ Rating in Not Cooperating Category
GOYAL MOTOCORP: ICRA Keeps B Debt Ratings in Not Cooperating
HILL TRACK: CRISIL Reaffirms D Rating on INR6cr Overdraft
HUBTOWN BUS: CARE Keeps D Debt Rating in Not Cooperating Category
INTERJEWEL PRIVATE: CARE Keeps D Debt Ratings in Not Cooperating
KAMLA SHIVHARE: CARE Keeps C Debt Ratings in Not Cooperating
KINGLIKE RETAIL: CARE Keeps B- Debt Rating in Not Cooperating
LAKHANI FOOTWEAR: CRISIL Moves D Debt Ratings in Not Cooperating
MAHAVIR SHIP: ICRA Keeps B- Debt Ratings in Not Cooperating
MANAPPURAM FINANCE: Fitch Assigns 'BB-' Rating on 2028 Sec. Notes
MAXIME INFRA: CRISIL Migrates B Debt Rating to Not Cooperating
MUTHOOT FINANCE: Fitch Assigns 'BB' Rating on 2028 Secured Bonds
NANDI GRAIN: CARE Keeps D Debt Ratings in Not Cooperating Category
NEW TEA EXPORTS: CRISIL Moves B+ Ratings from Not Cooperating
NEW TEA: CRISIL Moves B+ Debt Ratings from Not Cooperating
NIRVIN COLD: CARE Keeps D Debt Rating in Not Cooperating Category
RGM FUTURE: CARE Lowers Rating on INR29.02cr LT Loan to B-
SHREESOMNIDHI INFRASOLUTIONS: CARE Reaffirm 'B' Issuer Rating
SPM WEAVING: CARE Keeps D Debt Rating in Not Cooperating Category
SUNBEAM DEALERS: CARE Keeps D Debt Rating in Not Cooperating
SYSKA LED: NCLT Sets Aside CIRP as Company, Lender Settles
VENKATESWARA ENT: CRISIL Reaffirms B+ Rating in Not Cooperating
WIN POWER: CRISIL Withdraws B+ Rating on INR5cr Line of Credit
I N D O N E S I A
PAKUWON JATI: Fitch Hikes LongTerm IDR to BB+, Outlook Stable
M A L A Y S I A
PHARMANIAGA BHD: Committed to Financial Recovery
N E W Z E A L A N D
ABA BUILD: Creditors' Proofs of Debt Due on June 11
BAYLISS BROS: Creditors' Proofs of Debt Due on July 5
STRIPE STUDIOS: Owes More Than NZD20 Million, Say Receivers
SULFAR DEVELOPMENT: Khov Jones Appointed as Receiver
TAMARIND NZ: Creditors' Proofs of Debt Due on July 1
TIMES NEWSPAPERS: Placed Into Liquidation, Has NZD962,000 Debt
TOURIST HOTEL: In Receivership
WAITONUI MILLTRUST: Dairy Business Owes BNZ NZD36.5 Million
WMAH LP: BDO Auckland Appointed as Receiver
S I N G A P O R E
JUSTCLOUD PTE: Court to Hear Wind-Up Petition on May 31
PLEXURE PTE: Court to Hear Wind-Up Petition on May 31
SOON HUAT: Court to Hear Wind-Up Petition on May 31
TERAS OFFSHORE: Commences Wind-Up Proceedings
- - - - -
=================
A U S T R A L I A
=================
ACT CENTRAL: Second Creditors' Meeting Set for May 20
-----------------------------------------------------
A second meeting of creditors in the proceedings of ACT Central
Financial Services Pty Ltd has been set for May 20, 2024 at 4:00
p.m. at Level 2 AMP Building 1 Hobart Place in Canberra.
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 May 19, 2024 at 4:00 p.m.
Stephen John Hundy of Worrells was appointed as administrator of
the company on April 12, 2024.
E-MERSION MEDIA: Collapses Into Liquidation, All Staff Lose Jobs
----------------------------------------------------------------
News.com.au reports that a flailing tech start-up has collapsed
into liquidation and all staff have been terminated on the spot via
an email message.
On May 7, the Victorian Supreme Court ordered E-Mersion Media
(Aust) Pty Ltd into liquidation "on the grounds of insolvency,"
news.com.au discloses.
According to news.com.au, the State Revenue Office had initiated
winding up proceedings against the business over unpaid debts, and
three employees also tried to join the case as supporting creditors
due to outstanding wages.
Registrar Kim Woronzcak ordered that the business be placed into
liquidation, news.com.au notes.
The Melbourne company was built around the premise of digitising
traditional print magazines and had entered into contracts with
FIFA and F1. Its parent company had attracted $12 million in
investment.
E-Mersion Media (Aust), the employing arm of the group, owes more
than $13 million to creditors but some of those amounts are
disputed, news.com.au discloses.
Just a few days earlier, staff were informed that their employment
was over, effective immediately, via email.
One staff member, Abigail, who spoke on condition of anonymity,
told news.com.au: "I'm looking for work but there's not a lot of
jobs going."
Staff at the tech and media business had already been stood down
after the business went into administration last month.
On May 10, the appointed administrator, Mathew Gollant of
restructuring firm CJG Advisory, wrote to workers letting them know
E-Mersion Media could no longer keep them employed.
"I note that you were stood down during the voluntary
administration process, however, given the above, I regrettably
advise that your employment is terminated effective 3 May 2024,"
the letter, obtained by news.com.au, reads. "You may be aware that
the Department of Employment and Workplace Relations has a scheme
called Fair Entitlement Guarantee ("FEG") to pay employees who have
become redundant as a result of the insolvency of their employer
and do not receive payment of these entitlements."
Mr. Gollant encouraged staff to apply to the government scheme. He
also noted that unfortunately the scheme does not cover unpaid
superannuation.
At the hearing the following Tuesday [May 7], he was appointed
liquidator of the defunct entity.
Abigail said she had feared the company was on the brink of
collapse for a while, news.com.au relays.
"It's incredibly stressful, you're waiting for the penny to drop
constantly. You've always got this low level anxiety."
ENCAPTO PTY: Second Creditors' Meeting Set for May 20
-----------------------------------------------------
A second meeting of creditors in the proceedings of Encapto Pty Ltd
has been set for May 20, 2024 at 11:00 a.m. at the offices of
Jirsch Sutherland at Level 30, 140 William Street in Melbourne and
via Zoom.
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 May 17, 2024 at 11:00 a.m.
Andrew Mattinson and Malcolm Kimbal Howell of Jirsch Sutherland
were appointed as administrators of the company on April 12, 2024.
FRIENDLY HEARTS: Second Creditors' Meeting Set for May 20
---------------------------------------------------------
A second meeting of creditors in the proceedings of Friendly Hearts
Disability Services Pty Ltd has been set for May 20, 2024 at 11:00
a.m. via virtual meeting technology.
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 May 19, 2024 at 5:00 p.m.
Shaun Matthews and Daniel Juratowitch of Cor Cordis were appointed
as administrators of the company on April 12, 2024.
JARL ENTERPRISES: First Creditors' Meeting Set for May 21
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Jarl
Enterprises Pty Ltd will be held on May 21, 2024 at 11:00 a.m.
virtually by video conference.
Rachel Burdett and Daniel Juratowitch of Cor Cordis were appointed
as administrators of the company on May 9, 2024.
RICHORE PTY: Second Creditors' Meeting Set for May 21
-----------------------------------------------------
A second meeting of creditors in the proceedings of Richore Pty Ltd
has been set for May 21, 2024 at 11:00 a.m. at the offices of
Condon Associates at Level 6, 87 Marsden Street in Parramatta.
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 May 20, 2024 at 4:00 p.m.
Schon Gregory Condon of Condon Associates were appointed as
administrators of the company on April 17, 2024.
VESTONE CAPITAL 2: Fitch Affirms 'BBsf' Rating on Class E Notes
---------------------------------------------------------------
Fitch Ratings has affirmed five classes of notes issued by Vestone
Capital ABS Warehouse Trust No. 2. The notes are backed by a pool
of first-ranking Australian equipment and software lease and loan
receivables originated by Vestone Capital Pty Limited. The notes
were issued by Perpetual Corporate Trust Limited as trustee for the
Vestone Capital ABS Warehouse Trust No. 2. The transaction is a
revolving transaction with the current availability period ending
in June 2024.
Entity/Debt Rating Prior
----------- ------ -----
Vestone Capital
ABS Warehouse
Trust No. 2
A LT AAAsf Affirmed AAAsf
B LT AAsf Affirmed AAsf
C LT Asf Affirmed Asf
D LT BBBsf Affirmed BBBsf
E LT BBsf Affirmed BBsf
KEY RATING DRIVERS
Economic Growth Supports Outlook: Portfolio performance is
supported by Australia's continued economic growth and tight labour
market, despite rapid interest rate hikes during 2022-2023. GDP
growth in 2023 was 1.5% and unemployment was 3.8% in March 2024.
Fitch expects economic conditions to stabilise in 2024, with GDP
growth slowing slightly to 1.4% and unemployment edging up to 4.2%.
This reflects Fitch's anticipated effects of China's property
downturn and the impact of recent monetary tightening on consumer
spending.
Performance within Modelled Defaults: The portfolio's 30+ day
arrears were 1.7% at end-March 2024 and 60+ day arrears were 0.7%,
both above Fitch's 4Q23 ABS Dinkum Index of 1.36% and 0.66%,
respectively. In the absence of an equipment-specific index, the
auto ABS index has been used as a comparison due to the
similarities between the asset classes. Cumulative defaults have
totalled 0.5% to date with strong excess spread covering all
realised losses.
The Portfolio Credit Model (PCM) and cash flow model were not rerun
in this review, as the transaction remains within its revolving
period, observed default rates have been within Fitch's base-case
expectations and the pool remains within its portfolio parameters.
Fitch's previous analysis took into consideration the historical
and current performance of the Vestone portfolio to arrive at
one-year probabilities of default ranging from 0.5% for PC-Hardware
to 1.4% for Other Equipment.
Unchanged Recovery Rates: Fitch analysed Vestone's historical
equipment recovery rates to arrive at base recovery rates ranging
from 0% for Energy and Software, to 15% for Other Equipment. A
recovery haircut of 50% at 'AAAsf' was applied, which reflects the
expected recoveries relative to the economic cycle and the
stability of the collateral characteristics.
Obligor Group Concentration Unchanged: The transaction
documentation includes pool parameters that limit the portfolio's
largest obligor to 3% of the pool and largest five obligors to
7.5%, as well as limit the largest industry group and aggregate
exposure to the three largest industry groups to 22.5% and 47.5%,
respectively. The proxy portfolio's composition was stressed close
to the parameter limits for each of these characteristics and
incorporated in Fitch's PCM analysis at closing.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce the credit enhancement
available to the notes.
Downgrade Sensitivities
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and are likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement may make certain note
ratings susceptible to negative rating action, depending on the
extent of the coverage decline.
Fitch's previous rating sensitivities for the transaction were
discussed in the rating action commentary published on 7 July
2022.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Macroeconomic conditions, loan performance and credit losses that
are better than Fitch's expectations or sufficient build-up of
credit enhancement that would fully compensate for the credit
losses and cash flow stresses commensurate with higher rating
scenarios, all else being equal.
Fitch's previous rating sensitivities for the transaction were
discussed in the rating action commentary published on 7 July
2022.
CRITERIA VARIATION
The quantitative assumptions described in the Consumer ABS Rating
Criteria - Residual Value Addendum are applicable to vehicles.
Therefore, Fitch has derived residual value assumptions for this
transaction that are comparable to the U.S. Equipment Lease and
Loan ABS Rating Criteria assumptions in relation to giving credit
to residual values.
Credit to residual values was 50% at 'AAAsf', 60% at 'AAsf', 70% at
'Asf', 80% at 'BBBsf', 85% at 'BBsf' and 90% at 'Bsf'. This
variation positively affects the model-implied ratings of the notes
by four notches for class E, three notches for classes A and B, and
two notches for classes C and D.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Prior to the transaction closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was made available to Fitch for this
transaction.
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of Vestone's origination files and found the information
contained in the reviewed files to be adequately consistent with
the originator's policies and practices and the other information
provided to the agency about the asset portfolio.
Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis, according to its applicable rating
methodologies, indicates that it is adequately reliable.
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.
XTC LITHIUM: ASIC Restricts Issuance of Reduced-Content Prospectus
------------------------------------------------------------------
The Australian Securities & Investments Commission (ASIC) has
restricted XTC Lithium Limited (XTC), My Rewards International
Limited (MRI) and Range International Limited (RAN) from issuing a
reduced-content prospectus for 12 months after they failed to lodge
financial and other reports in line with their obligations.
ASIC's determinations mean that XTC, MRI and RAN will not be able
to rely on the reduced-disclosure rule under section 713 of the
Corporations Act and instead must issue a full prospectus if they
wish to raise funds from retail investors.
ASIC considers the ability to use a reduced-content prospectus a
privilege dependent on a company's compliance with the law. Lodging
financial reports on time, that have been audited in accordance
with the auditing standards, is a fundamental obligation for listed
companies. Where these obligations are not complied with, ASIC can
make determinations to exclude them from relying on reduced-content
prospectus relief. This is to ensure that retail investors have
access to fulsome, accurate and up to date information (including
financial information) before deciding whether to invest in a
company.
XTC, MRI and RAN have the right to appeal to the Administrative
Appeals Tribunal for review of ASIC's decision.
ASIC made the determinations under section 713(6) of the
Corporations Act, excluding XTC, MRI and RAN from relying on
section 713 of the Act for 12 months because:
* XTC failed to lodge its financial report, directors' report,
and auditor's report for the half-year to Dec. 31, 2023
within 75 days
* MRI failed to lodge its financial report, directors' report,
and auditor's report for the half-year to Dec. 31, 2023
within 75 days and, failed to have its annual report for the
year ended June 30, 2023 audited as required because the
auditor's report included a disclaimer of opinion by the
auditor, indicating that the auditor did not form or express
an opinion about the financial report
* RAN failed to have its lodged financial reports audited as
required for the financial years ended Dec. 31, 2022 and
Dec. 31, 2023 and, its half year financial report for the
half-year to June 30, 2023 because they included disclaimers
of opinion by the auditor, indicating that the auditor did
not form or express an opinion about the respective financial
reports.
XTC, MRI and RAN securities are currently suspended from being
traded on ASX Limited.
XTC is restricted from lodging a reduced-content prospectus until
April 4, 2025.
MRI is restricted from lodging a reduced-content prospectus until
May 2, 2025.
RAN is restricted from lodging a reduced-content prospectus until
May 9, 2025.
=========
I N D I A
=========
A B ROLLING: CRISIL Assigns B Rating to INR33.50cr Cash Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4' ratings
to the bank loan facilities of A B Rolling Mills Pvt Ltd (ABRMPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.63 CRISIL A4 (Assigned)
Cash Credit 33.50 CRISIL B/Stable (Assigned)
Overdraft Facility 3.50 CRISIL B/Stable (Assigned)
Overdraft Facility 20 CRISIL B/Stable (Assigned)
Proposed Fund- 1.55 CRISIL B/Stable (Assigned)
Based Bank Limits
Proposed Fund- 0.39 CRISIL B/Stable (Assigned)
Based Bank Limits
Term Loan 4.97 CRISIL B/Stable (Assigned)
Term Loan 3.48 CRISIL B/Stable (Assigned)
Term Loan 1.26 CRISIL B/Stable (Assigned)
Term Loan 0.72 CRISIL B/Stable (Assigned)
Working Capital 20 CRISIL B/Stable (Assigned)
Term Loan
The ratings reflect susceptibility to volatility in raw material
prices, large working capital requirement and average financial
risk profile. These weaknesses are partially offset by the
extensive experience of the promoters in the steel and steel
utensils business and their funding support, the established market
position of the company and its moderate scale of operations.
Analytical Approach
CRISIL Ratings has revised its analytical approach and considered
the standalone business and financial risk profiles of ABRMPL, as
operations of Bhulani Steel (BS; 'CRISIL BB /Stable Issuer Not
Cooperating') have been separated with business being divided among
directors.
Of the unsecured loan of INR21.13 crore as on March 31, 2024, INR
9.00 crore has been treated as equity and the balance as debt based
on past track record of withdrawal.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in stainless steel prices and
intense competition: The cost of stainless steel flats, a key
input, accounts for 40-45% of the manufacturing cost. As raw
materials are procured from traders or large suppliers such as
Jindal Steel Ltd, the company has limited bargaining power.
Furthermore, despite order-backed inventory of around 60 days,
there is little scope to pass on fluctuations in raw material
prices owing to intense competition.
* Large working capital requirement: Gross current assets (GCAs)
were sizeable at 330-350 days over the three fiscals through 2024
and at 333 days as on March 31, 2023. The working capital cycle
remains stretched owing to sizeable receivables and inventory.
* Modest financial risk profile: The financial risk profile is
average, constrained by high gearing and total outside liabilities
to adjusted networth ratios of 6.11 and 7.31 times, respectively,
as on March 31, 2024. Debt protection metrics were subdued owing to
significant gearing and low cash accrual, as reflected in interest
coverage and net cash accrual to total debt ratios estimated at
1.35 times and 0.03 time, respectively, in fiscal 2024. The
financial risk profile will remain average with high debt levels
over the medium term.
Strengths:
* Extensive experience of the promoters and their funding support:
The promoters have experience of around three decades in the
stainless steel sheets and steel utensils business, which has
enabled them to gain in-depth understanding of market dynamics.
Also, they have provided funding support through unsecured loan of
INR 21.13 crore as on March 31, 2024.
* Established market position and moderate scale of operations: The
group has strong market position as a reliable supplier in the
steel and steel utensils industry and diversified clientele. This
enabled the company to scale up operations, as reflected in revenue
of INR108 crore in fiscal 2024. Revenue is expected to grow 5-7%
over the medium term.
Liquidity: Poor
Cash accrual, expected at INR3-5 crore per annum, will be
insufficient to cover yearly term debt obligation of INR7.68-9.84
crore over the medium term. Bank limit utilisation was high at 94%
on average for the 12 months through March 2024. The unsecured loan
(INR21.13 crore as on March 31, 2024) from the promoters will cover
working capital requirement and debt obligation. Current ratio was
moderate at 1.20 times as on March 31, 2024.
Outlook: Stable
CRISIL Ratings believes ABRMPL will continue to benefit from the
extensive experience of its promoters and established relationships
with clients.
Rating Sensitivity factors
Upward Factors:
* Increase in revenue by 20% and stable operating margin leading to
higher cash accrual
* Improvement in the working capital cycle, with GCAs at 120 days
Downward Factors:
* Net cash accrual below INR3.00 crore on account of decline in
revenue or operating profit
* Further stretch in the working capital cycle weakening the
liquidity and financial risk profiles
Incorporated in 2007, ABRMPL manufactures steel utensils,
hot-rolled stainless steel (SS, grade 202/203) strips and
cold-rolled SS strips (known as patta/patti in local language, used
for manufacturing utensils). Its unit, in Umargaon, Gujarat, has an
installed capacity of 900 tonne per month (tpm). Mr Navin Chunilal
Gala and Mr Liladhar Devraj Gosar are the promoters.
ACCORD ELECTROPOWER: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Accord
Electropower Private Limited (AEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.96 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 22,
2023, placed the rating(s) of AEPL under the 'issuer
non-cooperating' category as AEPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. AEPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 8, 2024, January 18, 2024, January 28,
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 rating(s).
Accord Electropower Private Limited (AEPL) was incorporated in
2015. The company is currently being managed by Mr. Deepak Kumar
Gaur and Mr. Paramhansh Raghav. The company is engaged in
manufacturing of Power and distribution transformers which finds
its application in power generation and distribution industry. The
company has its manufacturing unit in Noida. The company cater to
both private and government company involve in DISCOMS
(Distribution companies).
ADAM & COAL: ICRA Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Adam & Coal Resources Private Limited in the 'Issuer
Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short Term- 92.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term/ 3.00 [ICRA]B+(Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Fund Based/ Rating Continues to remain
Non-Fund Based under issuer not cooperating
Others category
As part of its process and in accordance with its rating agreement
with Adam & Coal Resources Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in September 2004, ACRPL is involved in trading of
steam coal and pet coke, wherein it imports coal from Australia,
South Africa and Indonesia, among other countries and caters to
customers located in India, primarily in the cement and the power
industries. The company has a wholly-owned subsidiary, Adcoal
Resources PTE Limited (ARPL), in Singapore, which is involved in
the same business. It is promoted by Mr. Tony Adam, the Managing
Director.
AJAB SINGH: ICRA Withdraws C Rating on INR20.50cr LT Loan
---------------------------------------------------------
ICRA has withdrawn the rating assigned to the bank facilities of
Ajab Singh and Company (ASCO) at the request of the company and
based on the No Objection Certificate (NOC) received from its
lender, and in accordance with ICRA's policy on Withdrawal of
Credit Ratings. However, ICRA does not have information to suggest
that the credit risk has changed since the time the rating was last
reviewed.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 20.50 [ICRA]C; Withdrawn
Fund-based–
Cash Credit
Long-term– 25.50 [ICRA]C; Withdrawn
Non-fund
based–Others
Long-term 4.00 [ICRA]C; Withdrawn
Unallocated
The key rating drivers, liquidity position and rating sensitivities
have not been captured as the rated instruments are being
withdrawn.
ASCO is based in New Delhi and was incorporated in 2009 as a
partnership firm. At present, it is managed by Mr. Ajab Singh, Mr.
Deepak Choudhary, and Mr. Harish Choudhary. The firm undertakes the
work of large magnitude pertaining to residential accommodation,
administrative and public health, i.e., water and sewerage
projects, sewer lines and other civil engineering projects in the
National Capital Region. Its key clientele includes the Delhi
Development Authority (DDA) and Delhi Jal Board (DJB).
AKSHARA MOTORS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Akshara Motors Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.01 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Short Term- 37.00 [ICRA]A4 ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 0.30 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Akshara Motors Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 2007, Akshara Motors Private Limited (AMPL) is
engaged in passenger car dealership for HCIL. It presently operates
three showrooms (at Kanakapura, Mekhri Circle and Indranagar) and
two workshops (at Kanakapura and Yeshwanthpur) in Bangalore. The
showroom in Indranagar, Bangalore has been set up in leased
premises while the other showrooms and the two service outlets are
owned by AMPL and its promoter Group. AMPL has been promoted by Mr.
M.P. Shyam, who had started his business with the dealership of
Kinetic Honda in 1991-92. The promoter Group currently also holds
dealerships for other passenger car OEMs, commercial vehicles and
two-wheelers through separate entities.
ARTEDZ FABS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Artedz Fabs
Limited (AFL) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.50 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 March 2, 2023,
placed the rating(s) of AFL under the 'issuer non-cooperating'
category as AFL had failed to provide information for monitoring of
the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. AFL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 16, 2024, January 26, 2024, February 5, 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 rating(s).
Incorporated in 2006, Artedz Fabs Limited (AFL) [ISIN:
INE00CO01016] is engaged in manufacturing & trading of grey &
finished cotton fabrics for shirting material, wherein the dyeing
process is completely outsourced, and the grey fabrics
manufacturing is undertaken in house, whereas the excess demand is
met by way of outsourcing the said activity. However, the company
also undertakes trading of grey & finished fabrics, depending upon
the customer's demand. The company generally
purchases primary raw material viz. yarn from domestic market and
sells finished fabric to wholesalers and garment manufacturers
mainly in Mumbai. The company's name has been changed from Artedz
Fabs Private Limited (AFPL) to Artedz Fabs Limited (AFL) with
effect from February 19, 2018. NLCT has approved the application
for initiation of liquidation proceeding vide order dated October
6, 2022.
AVNI ENERGY: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-term and Short-term rating for the bank
facilities of Avni Energy Solutions Private Limited in the 'Issuer
Not Cooperating' category. The rating is denoted as
"[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 7.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 1.75 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term– 0.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 1.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Avni Energy Solutions Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Avni Energy Solutions Private Limited (AESPL) is incorporated in
2009 and is engaged in providing LED based lighting solutions for
street lighting, rural lighting and home/office lighting
requirements. It is promoted by Mr. Brij Mohan Rathi and Mr.
Gururaj Ganesh. Its manufacturing facility is located in Bangalore.
Its customers include CREDA (Chhattisgarh State Renewable Energy
Development Agency), EESL (Energy Efficiency Service Limited),
Havells India Limited etc.
BAFNA GINNING: ICRA Keeps B+ Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Bafna Ginning and Pressing Private Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+(Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 3.00 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Bafna Ginning And Pressing Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1999, Bafna Ginning and Pressing Private Limited
(BGPPL) is a part of 'Mahima Group' which is promoted by Doshi
family. BGPPL has a ginning unit in Aurangabad (Maharashtra). In
addition to in-house ginning, the company also trades in cotton
lint and cotton yarn.
GOYAL MOTOCORP: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-term rating for the bank facilities of Goyal
Motocorp Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B(Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Goyal Motocorp Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 2013, Goyal Motocorp Private Limited (GMPL) is an
authorised dealer of cars manufactured by Hyundai Motor India
Limited (HMIL). The company sells vehicles and provides ancillary
services that include vehicle servicing and sale of spare parts and
accessories from its showroom based in Raigarh, Chhattisgarh. The
company has another small showroom at Pathalgaon, which falls under
Jashpur district of Chhattisgarh, offering vehicle sales as well as
servicing.
HILL TRACK: CRISIL Reaffirms D Rating on INR6cr Overdraft
---------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D' rating on the long
term bank facilities of Hill Track Constructions Private Limited
(HITCPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 2.3 CRISIL D (Reaffirmed)
Overdraft Facility 6 CRISIL D (Reaffirmed)
Overdraft Facility 4 CRISIL D (Reaffirmed)
Overdraft Facility 3.5 CRISIL D (Reaffirmed)
Overdraft Facility 4.7 CRISIL D (Reaffirmed)
CRISIL Ratings had downgraded its rating on the long term bank
facilities of HITCPL to 'CRISIL D' from 'CRISIL BB/Stable' on April
29, 2024.
The rating continues to reflect HITCPL modest scale of operation,
Large working capital operations, and moderate financial risk
profile. These weaknesses are partially offset by its extensive
industry experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Small scale
of operations, with revenue of INR 20.63 crore in fiscal 2023, amid
intense competition limits pricing power with suppliers and
customers, thereby constraining profitability. Company expected
revenue growth of more than INR30 crore in the respective years,
construction of irrigation facility for the work order of INR 75
crore provides the visibility in revenue growth over the term.
* Leveraged financial risk profile: Capital structure remains
healthy, marked by a modest net worth of INR 6.66 crore and
moderate gearing and TOL/TNW of 3.13 times and 3.26 times in the
fiscal 2023. Capital structures are expected to improve with
gearing and TOLTNW of 1.17-2.30 times and 1.28-2.43 times in line
with the expected net worth of INR7-10 crore in the respective
years.
* Large working capital Requirement: Operations are working capital
intensive, as reflected in gross current assets (GCAs) of 436 days
as on March 31, 2023, in line with high debtors and inventory days
of 87 and 289 days, the working capital cycle was stretched. GCAs
are expected at 230-270 days over the term.
Strength:
* Extensive experience of the partners: The directors have been in
the business for over two decades. The company undertakes contracts
for hostels, colleges, and shopping malls, offices for Public Works
Department and Central Public Works Department in Kerala, along
with other private companies. Also, established track record in the
civil construction business, and high-quality and timely project
execution resulted in winning government tenders.
Liquidity: Poor
Average utilization at 100% in the last 12 months ended March 2024.
Cash accruals are expected to be over INR0.56-1.67 crores and are
expected to be insufficient against the repayment obligations of
INR1.97 crore over the medium term. The current ratio is moderate
at 1.38 times on March 31, 2023.
Rating Sensitivity Factors
Upward factors:
* Track record of timely debt servicing for at least 90 days
* Improvement in working capital cycle
HCPL, established in June 2001 at Wayanad (Kerala) and promoted by
Mr P A Devasia, undertakes contracts for civil construction work
for buildings such as hostels, colleges, shopping malls, and
offices.
HUBTOWN BUS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hubtown Bus
Terminal (Adajan) Private Limited (HBTPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 41.67 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 February 17,
2023, placed the rating(s) of HBTPL under the 'issuer
non-cooperating' category as HBTPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. HBTPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated January 3, 2024, January 13,
2024, January 23, 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 rating(s).
Hubtown Bus Terminal (Adajan) Pvt Ltd (HBTPL) is a special purpose
vehicle formed by Hubtown Ltd. (formerly known as Akruti City Ltd)
with an objective to develop bus terminal at Adajan, Surat,
Gujarat, as per the concession agreement with Gujarat State Road
Transport Corporation. The Hubtown group is in business of
developing real estate since more than two decades, commencing with
the incorporation of Akruti Nirman Private Limited on February 16,
1989 which was subsequently converted into a public limited company
on April 11, 2002. Company was renamed to Akruti City Limited in
2008 and further renamed to Hubtown Ltd in 2012.
INTERJEWEL PRIVATE: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Interjewel
Private Limited (IPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 210.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 1.60 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 February 15,
2023, placed the rating(s) of IPL under the 'issuer
non-cooperating' category as IPL had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. IPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 1, 2024, January 11, 2024, January 21,
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 rating(s).
Interjewel Private Ltd (IPL) was established as a partnership firm
in 1970, in the name of D. Navinchandra & Co. by Mr. Shantibhai
Mehta and Mr Navinbhai Mehta. The partnership firm was converted
into a private limited company in April 2007, and subsequently
renamed to its current name IPL. The group as a part of its
restructuring process carried out a scheme of amalgamation and
de-merger exercise with effect from April 1, 2009. IPL, now
promoted by Mr Rupen Kothari, Mr. Shrenik Choksi and Mr. Hemal
Choksi, is engaged in the business of importing and processing of
rough diamonds and exporting cut and polished diamonds (CPD) of
various sizes and shapes. The diamond processing activities of IPL
are undertaken at its own manufacturing facilities in Surat. IPL
has its sales offices at Mumbai, Delhi and Ahmedabad. Currently,
IPL has a 'Rio Tinto Select Diamantaire' status. Day to day
operations of the company is managed by Mr Hemal Choksi – CEO.
KAMLA SHIVHARE: CARE Keeps C Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Kamla
Shivhare (KS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.70 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Long Term/ 7.36 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 31, 2023,
placed the rating(s) of KS under the 'issuer non-cooperating'
category as KS had failed to provide information for monitoring of
the rating and had not paid the surveillance
fees for the rating exercise as agreed to in its Rating Agreement.
KS continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated February 14, 2024, February 24, 2024, March 5,
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 rating(s).
Madhya Pradesh based Kamla Shivhare (Kamla) was formed in 1995 as a
proprietorship concern by Mrs Kamla Shivhare. The shops are
allotted in Madhya Pradesh by the state government through a
competitive bidding process for a period of one year. The company's
product profile comprises almost all the major brands of IMFL such
as Seagram, Signature, Mc Dowells No.1, DIG whisky among others.
During FY21, KAMLA's was not allotted licence to trade liquor and
business activity was executed through two other partnership firms
"Prabha Star (PS) and Shivhare Liquors (SL)" for FY21. However,
During FY22 Kamla was allotted licence to trade liquor. Shivhare
Liquor group has entities namely Ram Swaroop Shivhare, Gopal
Shivhare, Laxminarayan Shivhare, Kalpana Shivhare, Kamla Shivhare,
Gopal Shivhare, Vinum Traders Pvt Ltd, Ranjeet Shivhare, Shriram &
Co, Shivhare Liquors, Prabha Star and Rahul Shivhare which are
engaged in similar business activity.
KINGLIKE RETAIL: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Kinglike
Retail Ventures Private Limited (KRVPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 20,
2023, placed the rating(s) of KRVPL under the 'issuer
non-cooperating' category as KRVPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. KRVPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated January 6, 2024, January 16,
2024, January 26, 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 rating(s).
KRVPL was incorporated in July 2017 by Mr. Abhishek Kumar and Mr.
Arvind Kumar Sinha for setting up a jewellery showroom at
Begusarai, Bihar.
LAKHANI FOOTWEAR: CRISIL Moves D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Lakhani Footwear Pvt Ltd (LFPL; part of the Lakhani group) to
'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL D/CRISIL
D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 70.5 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Letter of Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Long Term 11.62 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Rating Migrated)
Term Loan 21 CRISIL D (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been following up with LFPL, and has sought
information through letter and emails, dated December 12, 2023,
January 2, 2024, April 2, 2024, April 11, 2024 and April 22, 2024,
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 of LFPL,
CRISIL Ratings has not received any information on either the
financial performance or strategic intent of the company, which
restricts the ability to take a forward-looking view on its credit
quality. CRISIL Ratings believes that the rating action on LFPL is
consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information, lack of management
cooperation and delays in meeting debt obligation, CRISIL Ratings
has migrated the ratings on bank facilities of LFPL to 'CRISIL
D/CRISIL D Issuer Not Cooperating' from 'CRISIL D/CRISIL D'.
Analytical Approach
CRISIL Ratings has combined the business and financial risk
profiles of LFPL, Lakhani Rubber Works, Lakhani Rubber Products Pvt
Ltd and Lakhani Shoes and Apparels Pvt Ltd (all rated 'CRISIL D').
This is because these entities, collectively referred to as the
Lakhani group, are in the same business, and have common promoters,
senior management, procurement, marketing, and finance teams.
The Lakhani group has established the Lakhani brand in the footwear
and rubberised automotive components businesses over the past four
decades. Between fiscals 2006 and 2008, the split between Mr KC
Lakhani and his younger brother, Mr PD Lakhani, led to
reorganisation of the business and its assets. The group has
production plants in Faridabad (Haryana), Dhar (Madhya Pradesh),
Haridwar (Uttarakhand) and Noida (Uttar Pradesh) to produce sports,
leather and canvas shoes and ethylene-vinyl acetate slippers, with
a total capacity of 55.5 crore pairs per annum.
MAHAVIR SHIP: ICRA Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-term and Short-term ratings for the bank
facilities of Mahavir Ship Breakers in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B-(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.81 [ICRA]B- (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- (4.00) [ICRA]B- (Stable) ISSUER NOT
Interchangeable COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
Long Term- 9.04 [ICRA]B- (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short Term- 39.58 [ICRA]A4 ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Mahavir Ship Breakers, 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.
Mahavir Ship Breakers was established in 1983 as a partnership firm
by Mr. Mukesh Jain and family. The firm carries out ship breaking
activities at the Alang ship breaking yard, Bhavnagar. At present,
MSB has leased one plot at the Alang ship breaking yard at
Bhavnagar. In FY2020, the firm started trading of coal. In FY2020,
the firm reported a net loss of INR4.97 crore on an OI of INR25.97
crore compared to a net profit of INR4.55 crore on an OI of
INR75.78 crore in the previous year.
MANAPPURAM FINANCE: Fitch Assigns 'BB-' Rating on 2028 Sec. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned India-based Manappuram Finance Limited's
(MFIN, BB-/Stable) USD300 million 7.375% senior secured notes due
2028 a final rating of 'BB-'.
This follows the receipt of final documentation conforming to
information previously received. The final rating is in line with
the expected rating assigned on 29 April 2024.
The notes follow an amortising structure for repayment in five
instalments, with repayments starting in May 2026 until the final
repayment in May 2028. The notes carry a fixed-rate coupon payable
semi-annually and are secured by collateral, which includes the
issuer's specified assets and receivables.
The notes are also subject to maintenance covenants that require
MFIN to ensure the security coverage ratio is at or greater than 1x
at all times. The notes are issued in the international market
under the Reserve Bank of India's external commercial borrowings
framework. They are issued under MFIN's USD750 million secured
medium-term note programme.
KEY RATING DRIVERS
MFIN's notes are rated at the same level as its Long-Term
Foreign-Currency Issuer Default Rating (IDR), in accordance with
Fitch's rating criteria.
Most of MFIN's debt is secured and Fitch believes that non-payment
of the company's senior secured debt would best reflect the uncured
failure of the entity. MFIN can issue unsecured debt in the
overseas market, but such debt is likely to constitute a small
portion of its funding and thus cannot be viewed as its primary
financial obligation.
See Fitch Affirms Manappuram Finance at 'BB-'; Outlook Stable for
more information on MFIN's key rating drivers and rating
sensitivities.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Any negative action on MFIN's Long-Term Foreign-Currency IDR would
drive similar rating action on the notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of MFIN's Long-Term Foreign-Currency IDR would result in
corresponding rating action on the notes.
Date of Relevant Committee
01 September 2023
ESG CONSIDERATIONS
MFIN has an ESG Relevance Score of '4' for Customer Welfare - Fair
Messaging, Privacy and Data Security, due to a history of
customer-related business practices that did not fully comply with
regulatory norms. The score reflects its assessment that
customer-related practices appear weaker than at rated peers,
raising regulatory and reputational risk for MFIN. This has a
negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.
MFIN has an ESG Relevance Score of '4' for Governance Structure,
due to its history of customer-related business practices that did
not fully comply with regulatory norms, which implies that the
company has gaps in its governance structure. The score reflects
its assessment that governance practices appear weaker than at
rated peers, raising regulatory and reputational risk for MFIN.
This has a negative impact on the credit profile and is relevant to
the ratings in conjunction with other factors.
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
----------- ------ -----
Manappuram Finance
Limited
senior secured LT BB- New Rating BB-(EXP)
MAXIME INFRA: CRISIL Migrates B Debt Rating to Not Cooperating
--------------------------------------------------------------
CRISIL Ratings has migrated the rating on bank facilities of Maxime
Infra and Interiors (MII) to 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Fund- 12 CRISIL B/Stable (ISSUER NOT
Based Bank Limits COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MII for
obtaining information through letter and email dated April 19, 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 MII, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MII
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the rating on
bank facilities of MII to 'CRISIL B/Stable Issuer not
cooperating'.
Maxime Infra and Interiors (MII) was established in February 2017.
It is a partnership firm which is owned and managed by Mr. Rohitash
Dhankar and Ms. Yogita Chaudhary. MII is engaged in manufacturing
and supply of modular kitchen, storages (including wardrobes),
wooden bedside table, wooden coffee table, etc. for residential,
industrial and office spaces. MII's facility is located at Surajpur
Industrial Area, Greater Noida, Uttar Pradesh.
MUTHOOT FINANCE: Fitch Assigns 'BB' Rating on 2028 Secured Bonds
----------------------------------------------------------------
Fitch Ratings has assigned India-based Muthoot Finance Ltd's (MFL,
BB/Stable) USD650 million 7.125% senior secured bonds due 2028 a
final rating of 'BB'.
This follows the receipt of final documentation conforming to
information previously received. The final rating is in line with
the expected rating assigned on 18 April 2024.
The bonds carry a fixed-rate coupon payable semi-annually and are
secured by collateral that includes specified assets and
receivables of the issuer. The bonds are also subject to
maintenance covenants that require MFL to meet regulatory capital
requirements, and ensure its security coverage ratio is equal to or
greater than 1x at all times.
The bonds are issued in the international market under the Reserve
Bank of India's external commercial borrowings framework. They are
issued under MFL's USD2 billion global medium term-note programme.
KEY RATING DRIVERS
MFL's bonds are rated at the same level as its Long-Term
Foreign-Currency Issuer Default Rating (IDR) of 'BB', in accordance
with Fitch's rating criteria.
Most of MFL's debt is secured and Fitch believes that non-payment
of the company's senior secured debt would best reflect uncured
failure of the entity. MFL can issue unsecured debt in the overseas
market, but such debt is likely to constitute a small portion of
its funding and thus cannot be viewed as its primary financial
obligation.
For more information on MFL's key rating drivers and rating
sensitivities, please see Correction: Fitch Affirms Muthoot Finance
at 'BB'; Outlook Stable
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Any negative action on MFL's Long-Term Foreign-Currency IDR would
drive similar action on the bond rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of MFL's Long-Term Foreign-Currency IDR would result in
corresponding action on the bond rating.
Date of Relevant Committee
01 September 2023
ESG CONSIDERATIONS
MFL has an ESG Relevance Score of '3' for Customer Welfare,
compared with the standard score of '2' for the finance company
sector. This reflects its retail-focused operations, which expose
it to risks around fair lending practices, pricing transparency,
repossession, foreclosure and collection practices, whereby
aggressive practices in these areas may subject the company to
legal or regulatory and reputational risk that may damage its
credit profile. The score of '3' for this factor reflects its view
that such risks are adequately managed and have a low impact on the
company's credit profile.
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
----------- ------ -----
Muthoot Finance Ltd
senior secured LT BB New Rating BB(EXP)
NANDI GRAIN: CARE Keeps D Debt Ratings in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Nandi
Grain Derivatives Private Limited (NGDPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 69.30 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.50 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 March 2, 2023,
placed the rating(s) of NGDPL under the 'issuer non-cooperating'
category as NGDPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NGDPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 16, 2024, January 26, 2024, February 5, 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 rating(s).
Established in June 2010, Nandi Grain Derivatives Private Limited
(NGDPL) is part of Nandi Group of Industries based out of Nandyal
in Andhra Pradesh. The group since 1978 has built a diversified
presence of businesses such as cement, dairy, PVC pipes,
construction, TMT bars etc. NGDPL is engaged in manufacturing of
liquid starch using maize (wet milling process) as raw material
with an installed milling capacity of 400 tons per day. Gluten,
germs, corn steep soluble and fiber are the other by products
produced in the wet milling process which constitutes about 35% of
the throughput.
NEW TEA EXPORTS: CRISIL Moves B+ Ratings from Not Cooperating
-------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with the
guidelines of the Securities Exchange Board of India, had migrated
its rating on the long-term bank facility of New Tea Exports Pvt
Ltd (NTEPL; part of the New Tea group) to 'CRISIL B/Stable Issuer
Not Cooperating'. However, the management has subsequently started
sharing the information, necessary for carrying out a comprehensive
review of the ratings. Consequently, CRISIL Ratings is migrating
the rating to 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 22.06 CRISIL B+/Stable (Migrated from
Credit 'CRISIL B/Stable ISSUER NOT
COOPERATING')
The rating reflects exposure to risks posed by volatility in prices
and seasonality in tea production, and the working
capital-intensive operations. These weaknesses are partially offset
by the extensive experience of the promoters and the moderate
financial risk profile of the New Tea group.
Analytical approach:
CRISIL Ratings has revised its analytical approach and has now
combined the business and financial risk profiles of New Tea
Company (NTCL) and New Tea Exports Pvt Ltd (NTEPL). Earlier CRISIL
Rating had combined NTCL, NTEPL, Dooars Plantation and Industries
Ltd (DPIL), Senchal Agro Pvt Ltd (SAPL) and Tasati Tea Ltd (TTL).
The revision in analytical approach is based on revised stance of
the management that only NTCL & NTEPL has significant business,
financial and managerial linkages.
Key rating drivers & detailed description
Weaknesses:
* Volatility in prices and seasonality in tea production: Operating
margin has been volatile in the past, due to fluctuations in prices
of raw material and tea. This is compounded by sizeable inventory,
which makes the group vulnerable to any downward revision in tea
prices.
* Working capital intensive operations: Gross current assets (GCAs)
have been high, ranging from 180 to 220 days over the three fiscals
ending March 31, 2024. GCAs is estimated to be around 217 days as
on March 31, 2024, arises from the sizeable inventory and
receivables as the group extends a long credit period to its
customers. Also, given the nature of business, it holds large
work-in-process and finished goods inventory.
Strengths:
* Extensive experience of the promoters: The five-decade-long
experience of the promoters in the tea industry, their strong
understanding of market dynamics and established relationships with
suppliers and customers will continue to support the business risk
profile.
* Moderate financial risk profile: Capital structure is marked by
moderate gearing and total outside liabilities to adjusted networth
ratios of 1.35 times and 1.47 times, respectively, as on March 31,
2024, and will continue to be aided by limited reliance on external
debt. Debt protection measures have are also moderate due to
moderate profitability. Interest coverage and net cash accrual to
total debt ratios stood at 1.4 times and 0.04 time, respectively,
for fiscal 2024. The group's financial profile is expected to
improve over the medium term.
Liquidity: Stretched
Bank limit utilisation averaged around 77% for the 12 months ending
February, 2024. Expected net cash accrual of over INR2.5 crore may
remain tightly matched against term debt obligation of INR1.6-2.7
crore over the medium term. The current ratio is expected to be
moderate at 1.4 times on March 31, 2024. The promoters are likely
to extend support via equity and unsecured loans to cover the
working capital requirement and debt obligation.
Outlook: Stable
CRISIL Ratings believes the New Tea group will continue to benefit
from the extensive experience of its promoters in the tea industry
and their established relationships with clients.
Rating Sensitivity Factors
Upward factors
* Significant growth in revenue and profitability, leading to cash
accrual above INR4 crore
* Improvement in the debt protection metrics, aiding the financial
risk profile
Downward factors
* Decline in revenue more than 20% and profitability, leading to
cash accrual lower than previous expectations
* Sizeable repayment of unsecured loans received from the
promoters, weakening liquidity
The Kolkata-based New Tea group has been promoted by Mr Roshan Lal
Agarwal, along with his five brothers and other family members. The
group is engaged in growing, processing, packing, trading and
export of crush, tear, curl (CTC) tea. The flagship company (NTCL)
was incorporated in 1936 and taken over by the current promoters in
1976.
NEW TEA: CRISIL Moves B+ Debt Ratings from Not Cooperating
----------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with the
guidelines of the Securities Exchange Board of India, had migrated
its rating on the bank facilities of New Tea Company Ltd (NTCL;
part of the New Tea group) to 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating'. However, the management has subsequently started
sharing the information, necessary for carrying out a comprehensive
review of the ratings. Consequently, CRISIL Ratings is migrating
the ratings to 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Cash Credit 33.5 CRISIL B+/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Cash Credit 7.5 CRISIL B+/Stable (Migrated
from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Export Packing 4 CRISIL B+/Stable (Migrated
Credit from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
Working Capital 3.25 CRISIL B+/Stable (Migrated
Demand Loan from 'CRISIL B/Stable ISSUER
NOT COOPERATING')
The rating reflects exposure to risks posed by volatility in prices
and seasonality in tea production, and the working
capital-intensive operations. These weaknesses are partially offset
by the extensive experience of the promoters and the moderate
financial risk profile of the New Tea group.
Analytical Approach
CRISIL Ratings has revised its analytical approach and has now
combined the business and financial risk profiles of New Tea
Company Ltd (NTCL) and NTEPL. Earlier, CRISIL Ratings had combined
NTCL, NTEPL, Dooars Plantation and Industries Ltd (DPIL), Senchal
Agro Pvt Ltd (SAPL) and Tasati Tea Ltd (TTL). The revision in
analytical approach is based on revised stance of the management
that only NTCL and NTEPL have significant business, financial and
managerial linkages.
Key Rating Drivers & Detailed Description
Weaknesses:
* Exposure to volatility in prices and seasonality in tea
production: Operating margin has been volatile in the past, due to
fluctuations in prices of raw material and tea. This is compounded
by sizeable inventory, which makes the group vulnerable to any
downward revision in tea prices.
* Working capital intensive operations: Gross current assets (GCAs)
have been high, ranging from 180 to 220 days over the three fiscals
ending March 31, 2024. GCAs is estimated to be around 217 days as
on March 31, 2024, arises from the sizeable inventory and
receivables as the group extends a long credit period to its
customers. Also, given the nature of business, it holds large
work-in-process and finished goods inventory.
Strengths:
* Extensive experience of the promoters: The five-decade-long
experience of the promoters in the tea industry, their strong
understanding of market dynamics and established relationships with
suppliers and customers will continue to support the business risk
profile.
* Moderate financial risk profile: Capital structure is marked by
moderate gearing and total outside liabilities to adjusted networth
ratios of 1.35 times and 1.47 times, respectively, as on March 31,
2024, and will continue to be aided by limited reliance on external
debt. Debt protection measures have are also moderate due to
moderate profitability. Interest coverage and net cash accrual to
total debt ratios stood at 1.4 times and 0.04 time, respectively,
for fiscal 2024. The group's financial profile is expected to
improve over the medium term.
Liquidity: Stretched
Bank limit utilisation averaged around 77% for the 12 months ending
February, 2024. Expected net cash accrual of over INR2.5 crore may
remain tightly matched against term debt obligation of INR1.6-2.7
crore over the medium term. The current ratio is expected to be
moderate at 1.4 times on March 31, 2024. The promoters are likely
to extend support via equity and unsecured loans to cover the
working capital requirement and debt obligation.
Outlook: Stable
CRISIL Ratings believes the New Tea group will continue to benefit
from the extensive experience of its promoters in the tea industry
and their established relationships with clients.
Rating Sensitivity Factors
Upward factors
* Significant growth in revenue and profitability, leading to cash
accrual above INR4 crore
* Improvement in the debt protection metrics, aiding the financial
risk profile
Downward factors
* Decline in revenue more than 20% and profitability, leading to
cash accrual lower than previous expectations
* Sizeable repayment of unsecured loans received from the
promoters, weakening liquidity
The Kolkata-based New Tea group has been promoted by Mr Roshan Lal
Agarwal, along with his five brothers and other family members. The
group is engaged in growing, processing, packing, trading and
export of crush, tear, curl (CTC) tea. The flagship company (NTCL)
was incorporated in 1936 and taken over by the current promoters in
1976.
NIRVIN COLD: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nirvin Cold
Storage Private Limited (NCSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.40 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 March 15, 2023,
placed the rating(s) of NCSPL under the 'issuer non-cooperating'
category as NCSPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. NCSPL continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 29, 2024, February 8, 2024, February 18, 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 rating(s).
Nirvin Cold Storage Pvt. Ltd. (NCSPL), incorporated in the year
1984, is a Kolkata (West Bengal) based company, promoted by Shri
Niraj Kumar Bansal and Smt. Jyoti Bansal (wife of Shri Niraj Kumar
Bansal). It is engaged in the business of providing cold storage
services to potato growing farmers and potato traders in Bankura
district of West Bengal. Shri Niraj Kumar Bansal looks after the
day to day activities of the business with adequate support from
co-director and a team of experienced professionals.
RGM FUTURE: CARE Lowers Rating on INR29.02cr LT Loan to B-
----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
RGM Future Vision 21 Private Limited (RFVPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 29.02 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 24,
2023, placed the rating(s) of RFVPL under the 'issuer
non-cooperating' category as RFVPL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. RFVPL continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated April 29, 2024, April 30,
2024, May 6, 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 rating(s).
The ratings assigned to bank facilities of RFVPL have been revised
on account of non-availability of requisite information.
RGM Future Vision 21 Private limited was incorporated on July 23,
2020, by Mr. Roshan Lal Ranga, to establish 6 CBG (Compressed
Biogas) manufacturing plant under the greenfield project. The
company has entered into an agreement with oil marketing companies
for supply of CBG. The company has entered into an agreement with
the below mentioned companies for acquisition of land (5- acre land
@40 lacs per acre i.e., INR2.00 Cr) on a lease for a period of 15
years & above. The promoters the following entities have provided
land for the project against a share of 20% profits of the company
over a period of 15 years.
1. RNJ Bio Green and Tech Private Limited.
2. Godara Bio Green Private Limited.
3. Saini Bio Green Private Limited.
4. Shira Biofuel Green Private Limited.
5. Bhardwaj Green & Health Private Limited.
6. RGM & R.K Biofuels Private Limited.
SHREESOMNIDHI INFRASOLUTIONS: CARE Reaffirm 'B' Issuer Rating
-------------------------------------------------------------
CARE Ratings has reaffirmed ratings on certain bank facilities of
Shreesomnidhi Infrasolutions Private Limited (SIPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer rating - CARE B; Stable Reaffirmed
Rationale and key rating drivers
The company has changed its name to Shreesomnidhi Infrasolutions
Private Limited from Hans Infrasolutions Private Limited as per
certificate of incorporation pursuant to change of name dated April
10, 2024.
The issuer rating assigned to Shreesomnidhi Infrasolutions Private
Limited (SIPL) is constrained by limited track record of business
with limited project execution capabilities and revenue visibility
in the medium term, elongated operating cycle indicating stretched
liquidity position, moderate profit margins, susceptibility to
fluctuation in construction material prices, presence in highly
fragmented and competitive construction industry and tender driven
nature of business.
The rating however derives strength from experienced management in
civil construction business and comfortable capital structure.
Rating sensitivities: Factors likely to lead to rating actions.
Positive factors
* Revenue visibility with confirmed orders in hand in near and
medium term along with successful execution of projects
* Improvement in working capital cycle below 120 days on a
sustained basis
Negative factors
* Deterioration in capital structure marked by adjusted overall
gearing above 2x on sustained basis
* Inability of the company to recover the debtors in timely manner
* Increase in exposure to its SPV leading to further stretch on
cash flow
* Inability of SPV to complete the upcoming HAM project coupled
with receipt annuity and repayment of term loan in timely manner
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects CARE Ratings Limited's (CARE Ratings)
expectation that SIPL will continue to benefit from experience of
promoters and management.
Detailed description of the key rating drivers
Key Weaknesses
* Limited track record of business with modest capacity of project
execution: SIPL has a limited track record of operations of four
years in civil construction roads, bridges, etc. SIPL works as
sub-contractor for private players in civil construction activity
for the projects which are primarily funded by Central Government
or State Government. Over the years of past four years, the size of
the executed projects has remained modest, with instances of
termination/foreclosure of projects by Ministry of Road Transport &
Highways (MoRTH).
* Lack of revenue visibility in medium term due to absence of order
book: Currently, SIPL does not have any orders in hand however,
company through a 50:50 JV with Eagle Infra India Limited (EIIL)
has formed a special purpose vehicle (SPV) named Kante Waked
Highways Private Limited (KWHPL) to execute a HAM based road
project to be received through harmonious substitution (subject to
confirmation from Ministry of Road Transport and Highways (MoRTH)
and Public Works Department (PWD)) from Kante Waked Multi Projects
Private Limited (KWMPPL), an SPV of Roadways Solution India Infra
Limited.
SIPL, as an Engineering, procurement and construction (EPC)
contractor for the said project has executed construction work to
the tune of INR156 crore (total contract value of INR792 crore),
rest of the work is expected to be executed by EIIL. As on February
29, 2024, SIPL does not have any other orders in hand, indicating
lack of revenue visibility. SIPL's total operating income remained
moderate at INR83.62 crore in FY23 (period refers to April 1 to
March 31) and INR53.81 crore in 8MFY24 (period refers to April 1 to
November 30). Going forward, SIPL intends to bid for new EPC
contracts floated by private players as well as by government
authorities.
* Moderate profit margins: SIPL's incurred operating loss of
INR1.53 crore in FY23 vis-à-vis operating profit of INR3.34 crore
in FY22 on account of increase in subcontract charges, rent charges
and labour charges. However, company achieved net profit of INR4.82
crore in FY23 vis-àvis INR5.50 crore in FY22 on account of
non-operating income. Further during 8MFY24, company reported
operating loss of INR0.74 crore and profit before tax of INR2.99
crore.
* Susceptibility to fluctuation in construction material prices:
Cement, steel and other construction material are used extensively
by SIPL for its project execution. Prices of these materials are
volatile in nature. Also, the company does not have in-built price
escalation clause for its existing project. Accordingly, any
variations in the prices of raw material is expected to affect the
profitability margins of SIPL.
* Presence in highly fragmented and competitive construction
industry and tender driven nature of business: The construction
industry is fragmented in nature with a large number of medium
scale players present at regional level. This coupled with the
tender-driven nature of contracts poses huge competition and puts
pressure on the profit margins of the players. SIPL is a regional
player with civil and structural works contracts primarily
concentrated towards few clients. Furthermore, SIPL faces fierce
competition from other companies for new orders.
Key strengths
* Experienced management in civil construction business: The
promoters of SIPL, Mr. Nitin S. Sastakar, CEO & Managing Director,
Mr. Abhay Mane, Director and Mr. Abhijit Pawar, Director have
reasonable experience in the field of civil construction road
infrastructural works, etc. Having successfully executed a few
private projects, SIPL has gained reputation and has established
good relationship with its clients enabled repetitive orders. All
the promoters are supported by experienced second line of
management.
* Comfortable capital structure: Owing to absence of external debt
and high net worth base, capital structure of the company remained
comfortable since last two years ended FY23. During FY22, company
raised funds through equity share capital of around INR250 crore
including share premium and repaid the external borrowings which
led to increase in net worth base to INR243.80 crore as on March
31, 2022 from INR(11.71) crore as on March 31, 2021. Therefore,
capital structure improved and remained comfortable. Going forward,
company does not any plan to avail external debt. However, SIPL and
EIIL have jointly extended corporate guarantee to the bank
facilities availed by the SPV to the tune of INR514 crore.
Liquidity: Stretched
Liquidity position of the company remained stretched due to
elongated debtors and inventory period, as majority of the funds
are blocked in debtors resulting in high collection period of 320
days in FY23 vis-à-vis INR231 days in FY22. Further inventory days
also remained high at 173 days in FY23 vis-à-vis 320 days in FY22.
This, coupled with other current assets in the form of advances to
suppliers and deposits also remained high which led to gross
current assets period of 1170 days in FY23 vis-à-vis 1473 in FY22.
High working capital requirement is majorly funded through
shareholders' funds infused in FY22 and partially by creditors.
However, company's creditors remained low which resulted in average
creditors' period of 58 days in FY23 vis-à-vis 48 days in FY22.
Considering all the above, operation of the company remained highly
working capital intensive. SIPL also has low free cash and bank
balance of INR0.12 crore as on March 31, 2023 and INR0.37 crore as
on November 30, 2023. Further company has equity commitments of
INR116.18 crore in FY25 in its SPVs for HAM projects which will be
funded through the same debtor's recovery going forward.
Shreesomnidhi Infrasolutions Private Limited (SIPL) was established
as a private limited company in 2018 is engaged in civil
construction and maintenance of roads and bridges. SIPL primarily
works as sub-contractor for private civil construction
companies. It has its registered office situated in Pune.
SPM WEAVING: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri SPM
Weaving Mills (SSWM) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated February 28,
2023, placed the rating(s) of SSWM under the 'issuer
non-cooperating' category as SSWM had failed to provide information
for monitoring of the rating and had not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. SSWM
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated January 14, 2024, January 24, 2024, February 3,
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 rating(s).
Tamil Nadu based, Sri SPM Weaving Mills (SSWM) was established in
the year 2015 as a partnership firm. SSWM has its registered office
and plant located at M.S. Mangalam (Village), Erode, Tamilnadu with
the area covering 3.75 acres. The firm is engaged in manufacturing
of grey fabric.
SUNBEAM DEALERS: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sunbeam
Dealers Private Limited (SDPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated March 15, 2023,
placed the rating(s) of SDPL under the 'issuer non-cooperating'
category as SDPL had failed to provide information for monitoring
of the rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. SDPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 29, 2024, February 8, 2024, February 18, 2024 and May 9,
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 rating(s).
The ratings assigned to the bank facilities of SDPL have been
revised on account of delays in debt servicing as recognized from
publicly available information i.e. CIBIL filings.
Ranchi-based Sunbeam Dealers Private Limited (SDPL) was
incorporated in August 2013 by the Sarawgi family to initiate a
trading business of fabrics. Since its inception, the company has
been engaged in trading of cotton, synthetic and grey fabrics. Mr.
Amit Sarawgi (aged about 34 years), having around a decade of
experience in this line of business, looks after the day to day
operations of the company. He is supported by other director Ms.
Swati Sarawgi along with a team of experienced professional.
SYSKA LED: NCLT Sets Aside CIRP as Company, Lender Settles
----------------------------------------------------------
The Economic Times of India reports that the Mumbai bench of the
National Company Law Tribunal (NCLT) allows the withdrawal of the
corporate insolvency resolution process (CIRP) against Syska LED
Lights Pvt Ltd.
Earlier, the tribunal had admitted the company under the insolvency
resolution process and had appointed Ravi Prakash Ganti as the
interim resolution professional for the company, ET says.
Syska LED Lights is part of the Pune-based SSK Group, an exclusive
distributor of Samsung mobiles, accessories and tables for five
states in Western India.
In the past few years, the light-emitting diode (LED) lighting
solutions provider and consumer electric company has expanded into
personal care, home appliances, smart watches and audio categories.
"Learned Counsel for the creditor submits that they have settled
the dues with the Corporate Debtor and settlement agreement dated
May 7, 2024, has also been executed and joint application moved by
the operational creditor and corporate debtor," said a division
bench of Justice VG Bisht and technical member Prabhat Kumar in its
order of May 9, ET relays.
"In view thereof, the corporate debtor is taken out from the CIRP
and the resolution professional is directed to hand over the
control back, if taken over."
Earlier on May 7, the tribunal had admitted an application filed by
the company's operational creditor, Neeraj Singh Proprietor of NJ
Electronics. Before the tribunal's order to admit the company, Anuj
Solanki, counsel for the operational creditor, had argued that the
company had supplied various products such as transformers and
inductors to the Syska LED Lights.
VENKATESWARA ENT: CRISIL Reaffirms B+ Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long term bank facilities of Venkateswara Enterprises (VE).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.34 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 0.75 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 0.65 CRISIL B+/Stable (Reaffirmed)
Proposed Fund-
Based Bank Limits 13.76 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the firm's modest scale of
operations in the fragmented veneers and plywood trading industry,
and large working capital requirement. These weaknesses are
partially offset by the extensive industry experience of the
proprietor.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations in a fragmented industry: Revenue was
modest at INR19.18 crore in fiscal 2023.The scale of operations is
constrained by the highly fragmented nature of the industry due to
low entry barriers and limited capital requirement. There are many
unorganised players catering mainly to regional demand.
* Large working capital requirement: Gross current assets were high
at 190 days as on March 31, 2023, due to stretched receivables of
185 days. Against this, credit from suppliers is limited. This is
expected to improve going forward.
* Average financial risk profile: Capital structure is leveraged as
reflected in gearing of 2.69 times as on March 31, 2023, which is
attributable to average networth of INR2.46 crore. The debt
protection metrics are also modest as reflected in interest
coverage and net cash accrual to total debt (NCATD) ratios of 1.31
times and 0.01 time, respectively in fiscal 2023.
Strength:
* Extensive industry experience of the proprietor: A presence of
more than a decade in the veneers and plywood trading industry has
enabled the proprietor to establish a strong relationship with
customers and suppliers.
Liquidity: Stretched
Expected cash accrual of INR0.27-0.36 crore should cover term debt
obligation of INR0.25 crore over the medium term and support
liquidity. Bank limit utilisation averaged a high 99% over the 12
months through February 2024. Current ratio was healthy at 1.63
times on March31, 2023.
Outlook: Stable
CRISIL Ratings believes VE will continue to benefit from the
extensive experience of its proprietor.
Rating Sensitivity factors
Upward factors:
* Improvement in revenue along with sustenance of operating margin
leading to cash accrual of more than INR35 lakh.
* Enhancement in financial risk and liquidity profiles with higher
bank limit cushion.
Downward factors:
* Revenue declines by more than 15% or reduction in margins leading
to cash accrual of less than INR25 lakh.
* Any major withdrawals by the proprietor
* Further deterioration in the liquidity or financial risk
profiles
Set up as a proprietorship firm in 2006 in Chennai by Mr Devender
Goel, VE trades in veneer and plywood.
WIN POWER: CRISIL Withdraws B+ Rating on INR5cr Line of Credit
--------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Win Power Infra Private Limited (WPIPL) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 35 CRISIL A4/Issuer Not
Cooperating (Withdrawn)
Cash Credit 3 CRISIL B+/Stable/Issuer Not
Cooperating (Withdrawn)
Inland/Import 5 CRISIL B+/Stable/Issuer Not
Letter of Credit Cooperating (Withdrawn)
CRISIL Ratings has been consistently following up with WPIPL for
obtaining information through letters and emails dated March 25,
2023, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of WPIPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on WPIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
WPIPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
Analytical Approach: Not Applicable
WPIPL, formerly known as Win-Power Marketing Pvt Ltd, has been
promoted by Mr Suresh Agarwalla, based in Jorhat (Assam). The
company mainly undertakes construction of high-tension and
low-tension lines and substations. It has been engaged in rural
electrification projects since 2005, and participates in tenders
floated by different state electricity boards and other
governmental agencies
Status of noncooperation with previous CRA
WPIPL has not cooperated with Brickwork Ratings India Privat
(Brickwork) which has classified it as non-cooperative vide release
dated 11-Jul-2023. The reason provided by Brickwork is
non-furnishing of information for monitoring of ratings.
=================
I N D O N E S I A
=================
PAKUWON JATI: Fitch Hikes LongTerm IDR to BB+, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has upgraded Indonesia-based property developer PT
Pakuwon Jati Tbk's (PWON) Long-Term Issuer Default Rating (IDR) to
'BB+' from 'BB'. The Outlook is Stable. The agency also upgraded
PWON's senior unsecured rating and the rating on its USD400 million
notes due 2028 to 'BB+' from 'BB'.
The upgrade reflects PWON's strong non-development cash flow growth
as its asset portfolio stabilises post-Covid, and its ongoing
conservative financial profile. Fitch expects non-development cash
flow - the company's main income source - to continue to improve
under its growth plans. Fitch also views the increased development
risk from new greenfield projects to be manageable as the company
has sufficient rating headroom to absorb its planned capex.
KEY RATING DRIVERS
Strong Non-Development Cash Flow: Fitch forecasts non-development
EBITDA to reach IDR2.7 trillion in 2024, underpinned by higher
rental and service-fee income, as well as a continued growth in the
hotel segment. Fitch expects non-development EBITDA to continue to
grow to more than 80%-85% of total EBITDA in the next few years,
driven by higher occupancy, positive rent reversion, as well as
additional income from Bekasi Mall which will open in November
2024.
Strong Recovery Post-Covid: Fitch expects the company to maintain
positive rent reversion and shopping mall occupancy above 90% in
2024. Most of its malls are in integrated developments next to
residential properties, offices and hotels, supporting higher
footfall than at standalone malls. Shopping malls recently
acquired, such as those at Yogyakarta and Solo, have achieved
strong occupancy rates after the completion of asset-enhancement
initiatives.
Robust Portfolio, Concentrated Assets: PWON's rating is driven by
its well-located investment properties in Indonesia's most affluent
cities - Jakarta and Surabaya - which generate solid
non-development EBITDA. Fitch believes the top-four assets' quality
mitigates concentration risk, of which more than 80% of
non-development revenue are from four mixed-use projects.
Increased but Manageable Development Exposure: Fitch expects PWON
to maintain comfortable rating headroom despite anticipated higher
capex and potential acquisitions, with non-development EBITDA/net
interest expense well above the 4.0x negative sensitivity. PWON
will spend about IDR7.5 trillion through to 2029 to develop new
superblocks in Batam and Semarang, expand its malls' net lettable
area by 36% to 1,067,000 sq m, and increase hotel rooms by 75% to
3,997.
To support long term portfolio growth, Fitch forecasts spending of
up to IDR1.1 trillion in 2024 and about IDR800 billion a year
subsequently on opportunistic acquisitions of land and operational
assets. Fitch expects expansion to be comfortably funded by its
cash balance and strong internal cash flow.
Prudent Project Execution: Fitch expects PWON to continue to be
prudent in developing mixed-used projects despite multiple new
greenfield projects in Ibu Kota Nusantara, Batam and Semarang in
the medium term. Each superblock development is multi-phased,
extending over seven to eight years, with staged construction of
residential and commercial components. Fitch expects PWON to be
able to secure enough presales to fund construction of the for-sale
properties.
Steady Contracted Sales: Fitch expects presales to remain steady at
IDR1.4 trillion in 2024, as the value-added tax (VAT) rebate
announced in November 2023 will support demand. It provides a 11%
discount on the first IDR2 billion of the value of houses sold and
handed over by end-June 2024, with half of the discount applying
thereafter until end-2024. PWON's medium-term presales should be
driven by newly launched high-rise apartments in existing and new
superblocks.
Presales, however, might be affected by rising mortgage rates
following recent interest-rate increases and a planned VAT rise in
January 2025. Nevertheless, Indonesia's long-term housing demand
will be supported by a young population and rapid urbanisation,
driving economic growth. Fitch forecasts GDP growth to remain
healthy at 4.9% in 2024 and 5.3% in 2025. Domestic banks will
remain supportive of consumer home loans despite an expected
increase in mortgage rates.
DERIVATION SUMMARY
PWON is rated two notches higher than PT Bumi Serpong Damai Tbk
(BSD, BB-/Stable) due to its much larger non-development EBITDA,
which has proven more resilient to economic downturns than the
homebuilding sector. PWON's non-development EBITDA stems from
premium well-located shopping malls with strong tenants in
mixed-use superblocks, while BSD's mainstay is its property
development business which is more cyclical. BSD also has a smaller
portfolio of standalone offices, less-prime hotels and smaller
strata-title shopping malls than PWON which faces greater
challenges from e-commerce.
This, together with PWON's stronger balance sheet, supports a
two-notch higher rating and offsets risks from PWON's
property-development business, which is smaller in scale and
focuses on narrower products and price points than BSD.
PWON is rated multiple notches higher than Lippo Malls Indonesia
Retail Trust (LMIRT, CC) due to its stronger investment-property
portfolio, which has larger and better-quality retail malls with
higher occupancy located in mixed developments, and solid
liquidity. PWON has no debt maturity until 2028 while LMIRT's
rating reflects the high likelihood of a debt restructuring or a
distressed debt exchange (DDE) on its term loans and notes due June
2024. These factors more than offset PWON's for-sale
property-development risks, which LMIRT does not have. PWON's
strong financial profile stems from its conservative approach to
property development and expansion.
InRetail Real Estate Corp. (BBB-/Stable) is a leading shopping mall
operator in Peru. The underlying business profile is stronger than
that of PWON, driven by higher portfolio liquidity and
leveragability and more granular assets that more than offset their
weaker financial profiles. PWON derives about 60% of its
non-development revenue from three key assets, while the peers
generate roughly the same proportion from 10-15 assets. InRetail's
investment-grade rating reflects its parent's consolidated profile,
which has diversified businesses in food, pharmacy retail and
shopping malls.
KEY ASSUMPTIONS
Fitch's Key Assumptions within its Rating Case for the Issuer
- Mall occupancy at 93% in 2024 and 92% in 2025 (2025 occupancy
includes Bekasi Mall which is slated to open in November 2024)
- Overall occupancy, including office and hotels, estimated to rise
to 86% over the same period
- Positive rent reversions on retail leases
- Non-development EBITDA of IDR2.7 trillion in 2024 and IDR2.9
trillion in 2025 (2023: IDR2.6 trillion)
- Pre-sales of IDR1.4 trillion in 2024 and IDR1.5 trillion in 2025
(2023: IDR1.3 trillion)
- Capex and discretionary acquisition of land and operational
assets totalling IDR1.9 trillion in 2024 and IDR1.7 trillion in
2025 (2023: IDR1.4 trillion)
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Fitch does not expect an upgrade in the medium term due to PWON's
asset concentration and exposure to the more cyclical homebuilding
segment.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- A sustained decline in non-development EBITDA, including falling
occupancy rates and negative rental reversions for a sustained
period
- Non-development EBITDA/net interest expense falling to below 4.0x
for a sustained period
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity, Concentrated Funding: PWON's liquidity was
supported by IDR7.6 trillion in cash at end-2023, against estimated
negative FCF of IDR177 billion. There are no debt maturities until
2028, when all debt - comprising USD400 million unsecured notes
(around IDR6.5 trillion at today's exchange rate) - is due.
Fitch expects PWON to use its cash balance for expansion over the
next few years and to maintain a prudent balance sheet in line with
its record. PWON is currently entirely reliant on capital-market
debt, but has a strong record of liquidity management and has
benefited incrementally from lower funding costs.
ISSUER PROFILE
PWON is one of the leading integrated property companies in
Indonesia. Most of its cash flow stems from its portfolio of rented
shopping malls, offices and hotels, with property-development cash
flow accounting for a minority. PWON owns and operates 11 malls,
five offices, seven hotels and two serviced apartments.
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
----------- ------ -----
PT Pakuwon Jati Tbk LT IDR BB+ Upgrade BB
senior unsecured LT BB+ Upgrade BB
===============
M A L A Y S I A
===============
PHARMANIAGA BHD: Committed to Financial Recovery
------------------------------------------------
The Edge Malaysia reports that Pharmaniaga Bhd, whose weak
financials have just been flagged by its independent auditor for a
second consecutive year, assures shareholders that it is committed
to financial recovery and has made "strong and steady progress" on
it.
This is backed by resilient fundamentals and clear strategies to
exit its Practice Note 17 (PN17) status via the regularisation plan
it had submmitted to Bursa Malaysia in February this year, the
group said in a statement on May 10.
According to the Edge, the statement came after
PricewaterhouseCoopers PLT (PwC) on May 8 raised doubts about the
group’s ability to continue as a going concern, as it flagged its
continued losses in the financial year ended Dec. 31, 2023
(FY2023), its current liabilities that exceeded its current assets,
and its capital deficiency.
Pharmaniaga's current deficit and capital deficiency had also
widened from FY2022, when PwC had raised similar concerns after
auditing its books, the Edge discloses.
"The regularisation plan, which is still pending approval from
Bursa, outlines a holistic strategy to increase the equity of the
group and minimise our accumulated losses, favouring a proactive
approach focused on capital reduction of approximately RM180
million issued share capital, fundraising of RM354.6 million via
rights issuance for shareholders to strengthen their investments,
and RM300 million in private placement for potential investors to
participate in the group’s growth plans, moving forward," the
Edge quotes executive director Zulkifli Jafar as saying.
The Edge relates that Zulkifli, a "turnaround specialist" that the
group hired in February, also said that Pharmaniaga had streamlined
all business operations and ceased non-core and underperforming
businesses, besides improving operational efficiency and cost
optimisation via stringent cost containment and manpower
rightsizing.
At the same time, he said the group had tightened its corporate
governance and improved its margins by focusing on high-value
products and services.
"In addition, Pharmaniaga had also carried out a private placement
exercise in July last year to fortify our cash flow," he said.
Moreoever, the financial situation had also not affected its
operational efficiency, particularly its subsidiary Pharmaniaga
Logistics Sdn Bhd (PLSB), which holds the logistics and
distribution concession with the Ministry of Health (MOH), stressed
Zulkifli.
Pharmaniaga has also identified five strategic pillars to
strengthening the public sector business by building
biopharmaceutical capabilities, reducing costs aggressively,
growing the private market, and reinventing its Indonesia business,
he said, the Edge relays.
"These efforts will propel Pharmaniaga towards rejuvenating its
financial standing and successfully exiting the PN17 status
according to the schedule. We have the capabilities and resources
to overcome the challenges and achieve the targets, especially when
the group has the unwavering support from our substantial
shareholders, Lembaga Tabung Angkatan Tentera (LTAT) and Boustead
Holdings Bhd," he added.
About Pharmaniaga
Pharmaniaga Berhad is an investment holding company. The Company is
principally engaged in the research and development, manufacturing
of generic drugs and medical devices, logistics and distribution,
sales, and marketing, as well as community pharmacy.
It was reported on Feb. 28, 2023, that Pharmaniaga had been
classified as an affected listed issuer under PN17. The
pharmaceutical company said it had triggered the PN17 criteria
pursuant to its audited consolidated financial statements for the
period ended Dec. 31, 2022.
=====================
N E W Z E A L A N D
=====================
ABA BUILD: Creditors' Proofs of Debt Due on June 11
---------------------------------------------------
Creditors of Aba Build Limited are required to file their proofs of
debt by June 11, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 13, 2024.
The company's liquidators are:
Steven Khov
Kieran Jones
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
BAYLISS BROS: Creditors' Proofs of Debt Due on July 5
-----------------------------------------------------
Creditors of Bayliss Bros Limited are required to file their proofs
of debt by July 5, 2024, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 8, 2024.
The company's liquidators are:
Wendy Somerville
Malcolm Hollis
Bayliss Bros Limited
C/o PwC, Waikato
PO Box 191
Hamilton 3240
STRIPE STUDIOS: Owes More Than NZD20 Million, Say Receivers
-----------------------------------------------------------
NZ Herald reports that former Baywatch star and Hollywood legend
David Hasselhoff is reportedly owed money by Stripe Studios.
Creditors of a New Zealand screen production company - including a
major bank, a financing firm and two American TV stars - are owed
more than NZD20 million and a receiver claims its investigations,
the Herald relates.
Rees Logan and Andrew McKay of BDO Auckland were appointed as
receivers and managers of Stripe Studios (Comedy) Limited, Stripe
Studios (Hoff) Limited and Stripe Studios (Sport) Limited on March
14, 2024.
SULFAR DEVELOPMENT: Khov Jones Appointed as Receiver
----------------------------------------------------
Steven Khov and Kieran Jones of Khov Jones on May 14, 2024, were
appointed as receivers of Sulfar Development Limited.
The receivers may be reached at:
Khov Jones Limited
PO Box 302261
North Harbour
Auckland 0751
TAMARIND NZ: Creditors' Proofs of Debt Due on July 1
----------------------------------------------------
Creditors of Tamarind NZ Holdings Limited are required to file
their proofs of debt by July 1, 2024, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on May 6, 2024.
The company's liquidators are:
Malcolm Hollis
John Fisk
C/- PwC Wellington
PO Box 243
Wellington 6140
TIMES NEWSPAPERS: Placed Into Liquidation, Has NZD962,000 Debt
--------------------------------------------------------------
NZ Herald reports that creditors of Howick company Times Newspapers
called in liquidators when it became insolvent with debts of
NZD962,000 and assets of only NZD124,000.
The publishing operations of the Howick and Pakuranga Times have
been to a civic leader and former Act Party candidate and now
operate under her ownership, the Herald says.
Benjamin Francis and Garry Whimp were appointed as administrators
of Times Newspapers Limited on March 22, 2024.
Times Newspapers publishes the Howick and Pakuranga Times.
TOURIST HOTEL: In Receivership
------------------------------
BusinessDesk reports that receivers have been appointed to a group
of tourism companies that owned more than three hectares on Lake
Tekapo's waterfront.
Steven Khov and Kieran Jones of KhovJones were appointed receivers
of five companies on May 3 by Rockburgh Trustees (No.15) as the
trustee of Collinson Wealth New Zealand Investment Fund,
BusinessDesk discloses. The companies are Tekapo 1 Limited, Tekapo
2 Limited, Tekapo 3 Limited, Tourist Hotel Corporation Limited and
Tourist Hotel Corporation Finance Limited.
BusinessDesk relates that Mr. Khov said he did not know how much
was owed to creditors.
WAITONUI MILLTRUST: Dairy Business Owes BNZ NZD36.5 Million
-----------------------------------------------------------
Otago Daily Times reports that a large-scale dairy farming
enterprise - which includes two farms in North Otago - owes the
Bank of New Zealand about NZD36.5 million, a recent High Court
judgement said.
In April, Andrew Grenfell and Kare Johnstone were appointed by the
BNZ as receivers and managers of the property of Waitonui Milltrust
Agricultural Holdings Ltd Partnership, Waitonui Milltrust
Agricultural Holdings Farm Management Ltd Partnership, Waitonui
Milltrust Agricultural Holdings General Partner Ltd and WMAH Farm
Management General Partner Ltd, ODT discloses.
Both Burnside Dairy Farm and Elderslie Dairy Farm, inland from
Oamaru, were put on the market to be sold by deadline sale, with
offers closing on May 10.
According to ODT, PGG Wrightson real estate agent Dave Heffernan
said May 12 it had been a "short sharp" marketing campaign and good
interest had been shown, with three offers for the Burnside
property and five for Elderslie.
Burnside is a 505.3ha property with an adjoining 81.9ha lease,
giving a total effective milking platform of 550ha. The property
had milked 1600-1750 cows with a three-year average of 642,000kg MS
under a high input continual supply dairy farm and had recently
transitioned to a more conventional grass-based lower supplementary
feed input dairy farm.
Elderslie is a 598.8ha property with an effective milking platform
of 552.5ha. It had, in the past, run as a continual supply dairy
farm. It recently transitioned to a conventional dairy farm with
about 500 cows being milked through winter. It had a three-year
production average of 584,150kg MS.
The New Zealand Herald reported the receivership was complex
because the Waitonui group leased land and livestock from third
parties which were not in receivership - Stockco Capital and WMAH
LP (Spv 3) Ltd, ODT relays.
The latter was put in liquidation on May 9 by resolution of its
shareholder, Waitonui Milltrust Agricultural Holdings LP, one of
the entities included in the Waitonui receivership.
ODT relates that the two receivers successfully applied to the High
Court to excuse their receivers' liability due to risks associated
with the leases.
In a judgement delivered by Justice Pheroze Jagose, the leases
risked the receivers' personal liability, including a near NZD7
million "balloon payment", due May 14 if they were unable to
abandon the land or livestock.
Proper attendance to animals' welfare was a primary consideration,
Justice Jagose said.
According to ODT, the judgement said the group operated large dairy
farming enterprises in the central North and South Islands, grazing
some 5000 cattle on more than 2000ha. At the time of the receivers'
appointment on April 15, the group owed the bank some NZD36.5
million.
In 2019, Milltrust International and its affiliate Milltrust
Agricultural Investments announced the acquisition of a 24.9%
equity holding in Waitonui Milltrust Agricultural Holdings, a
newly-established entity owned in conjunction with a consortium of
New Zealand investors. At that time, it said WMAH had total assets
of more than NZD125 million and it was one of Fonterra's largest
suppliers.
In November, 2021, Milltrust International Group exited its
involvement in the agricultural sector through the sale of
Milltrust Agricultural Investments to Future Planet Capital.
While Waitonui Milltrust Agricultural Holdings included and
retained the Milltrust name, Milltrust International Group no
longer held any shareholding or management role in Waitonui
Milltrust Agricultural Holdings, Milltrust clarified in an
announcement following confirmation of the receiverships.
The Herald reported Future Planet on May 14 has a 24.9%
shareholding in Waitonui Farm Management and Waitonui Milltrust
Agriculture Holdings General Partner. The largest single
shareholder of both entities with 27.99% of each is Gerard Donald,
from the Waikato.
WMAH LP: BDO Auckland Appointed as Receiver
-------------------------------------------
Rees Logan and Diana Clare Matchett of BDO Auckland on May 14,
2024, were appointed as receivers of WMAH LP (SPV 3) Limited.
The receivers may be reached at:
BDO Auckland
PO Box 2219
Auckland 1140
=================
S I N G A P O R E
=================
JUSTCLOUD PTE: Court to Hear Wind-Up Petition on May 31
-------------------------------------------------------
A petition to wind up the operations of Justcloud Pte Ltd will be
heard before the High Court of Singapore on May 31, 2024, at 10:00
a.m.
Maybank Singapore Limited filed the petition against the company on
May 7, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
PLEXURE PTE: Court to Hear Wind-Up Petition on May 31
-----------------------------------------------------
A petition to wind up the operations of Plexure Pte Ltd (formerly
known as Works Pte Ltd) will be heard before the High Court of
Singapore on May 31, 2024, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
May 7, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
SOON HUAT: Court to Hear Wind-Up Petition on May 31
---------------------------------------------------
A petition to wind up the operations of Soon Huat Bak Kut Teh Pte
Ltd will be heard before the High Court of Singapore on May 31,
2024, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
May 9, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00 AIA Tower
Singapore 048542
TERAS OFFSHORE: Commences Wind-Up Proceedings
---------------------------------------------
Members of Teras Offshore Pte Ltd, on May 10, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Mr. Ng Kian Kiat
Ms. Yap Hui Li
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
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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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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