/raid1/www/Hosts/bankrupt/TCRAP_Public/250102.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, January 2, 2025, Vol. 28, No. 2
Headlines
A U S T R A L I A
DMS MARKETING: Commences Wind-Up Proceedings
HAMRO GROUP: Commences Wind-Up Proceedings
MCQUILLAN HOLDINGS: Commences Wind-Up Proceedings
REEL LABOUR: Commences Wind-Up Proceedings
START YOUR: Second Creditors' Meeting Set for Jan. 7
C H I N A
CHENGDU AIRPORT: Fitch Withdraws All Ratings
JINGBO TECHNOLOGY: Sells Shares for $1.54MM to G. Zhang
I N D I A
ADVAITH BIO: ICRA Keeps D Debt Ratings in Not Cooperating
AYODHYA COTSPIN: CRISIL Reaffirms D Rating on INR24cr Term Loan
GIRIRAJ JEWELLERS: ICRA Keeps D Debt Ratings in Not Cooperating
HABIB TEXTILES: ICRA Keeps B+ Debt Rating in Not Cooperating
IIFL FINANCE: S&P Assigns 'B+/B' ICRs, Outlook Stable
JOYMAKALI COLD: ICRA Keeps B Debt Ratings in Not Cooperating
JYOTE MOTORS: ICRA Keeps B+ Debt Ratings in Not Cooperating
KARVY DATA: NCLT Approves Sangamam Power's Resolution Plan
KARVY FINANCIAL: ICRA Moves D Debt Rating to Not Cooperating
KS SOFTNET: ICRA Keeps D Debt Ratings in Not Cooperating Category
LAKSHMI TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
MANOJ CABLES: CRISIL Keeps D Debt Ratings in Not Cooperating
MEGHDOOT GINNING: ICRA Keeps B Debt Ratings in Not Cooperating
MISTRY ENTERPRISES: ICRA Keeps D Debt Rating in Not Cooperating
NANDINI FITNESS: ICRA Keeps D Debt Rating in Not Cooperating
PNB REALTY: ICRA Keeps D Debt Ratings in Not Cooperating Category
PRAVEEN ELECTRICAL: ICRA Keeps D Debt Ratings in Not Cooperating
PRIMARY AGRICULTURE: To Wind Up in 15 Days After Property Transfer
PURNAM: ICRA Keeps B Debt Ratings in Not Cooperating Category
R.K. DHABHAI: ICRA Keeps D Debt Ratings in Not Cooperating
REAL GROWTH: ICRA Keeps D Debt Ratings in Not Cooperating
REDKENKO HEALTH: Insolvency Process Initiated Over Default
SAMRAT SEA: ICRA Keeps D Debt Ratings in Not Cooperating Category
YASH JEWELLERY: CRISIL Keeps D Debt Ratings in Not Cooperating
I N D O N E S I A
MODERNLAND REALTY: Moody's Affirms 'Ca' CFR, Outlook Negative
M A L A Y S I A
EA TECHNIQUE: Proposes to Change Name to Avangaad Bhd
N E W Z E A L A N D
SOLARZERO NZ: BlackRock Writes Down Fund After Company's Collapse
S I N G A P O R E
G VASCULAR: Court Enters Wind-Up Order
HYPERGANIC PTE: Creditors' Meetings Set for Jan. 22
MAXIMA LOGISTICS: Court Enters Wind-Up Order
NORTHERN RAY: Court Enters Wind-Up Order
THIS IS INTERIOR: Court Enters Wind-Up Order
S R I L A N K A
SRI LANKA: Fitch Assigns 'CCC+' Rating on Senior Unsecured Bonds
- - - - -
=================
A U S T R A L I A
=================
DMS MARKETING: Commences Wind-Up Proceedings
--------------------------------------------
Members of DMS Marketing Technology Pty Ltd on Dec. 25, 2024,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Andrew Blundell
Simon Cathro
Cathro Partners
Level 13
333 George Street
Sydney, NSW 2000
HAMRO GROUP: Commences Wind-Up Proceedings
------------------------------------------
Members of Hamro Group Pty Limited on Dec. 30, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Daniel Jon Quinn
SV Partners
Suite 2, Level 1
1 Market Street
Newcastle, NSW 2300
MCQUILLAN HOLDINGS: Commences Wind-Up Proceedings
-------------------------------------------------
Members of McQuillan Holdings Pty Ltd on Dec. 27, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Melanie Samantha Grohovaz
EMJ Consulting Pty Ltd
PO Box 2355
Churchlands, WA 6018
Email: melanie@emjconsulting.com.au
REEL LABOUR: Commences Wind-Up Proceedings
------------------------------------------
Members of Reel Labour Solutions Pty Ltd on Dec. 31, 2024, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Peter John Moore
Jirsch Sutherland
Suite 14.02, Level 14
383-395 Kent Street
Sydney, NSW 2001
START YOUR: Second Creditors' Meeting Set for Jan. 7
----------------------------------------------------
A second meeting of creditors in the proceedings of Start Your SMSF
Pty Ltd has been set for Jan. 7, 2025 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 Jan. 6, 2025 at 4:00 p.m.
Michael Caspaney of Menzies Advisory was appointed as administrator
of the company on Nov. 29, 2024.
=========
C H I N A
=========
CHENGDU AIRPORT: Fitch Withdraws All Ratings
--------------------------------------------
Fitch Ratings has affirmed Chengdu Airport Xingcheng Investment
Group Co., Ltd.'s (CAXIG) Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) at 'BB+'. The Outlook is Stable. At
the same time, Fitch has withdrawn all the ratings on CAXIG.
Fitch regards CAXIG as a government-related entity (GRE) of
Shuangliu district, a part of Chengdu municipality in China. The
rating approach reflects its expectation that CAXIG will receive
extraordinary support from the district government, if needed.
Fitch has chosen to withdraw the ratings for commercial reasons.
Fitch will no longer provide ratings or analytical coverage for
CAXIG.
KEY RATING DRIVERS
Support Score Assessment 'Virtually certain'
Fitch believes extraordinary support from the Shuangliu district
government to CAXIG would be virtually certain in case of need,
reflecting a support score of 45 (out of a maximum 60) under
Fitch's Government-Related Entities Rating Criteria. This reflects
a combination of responsibility to support and incentive to support
factor assessments.
Responsibility to Support
Decision Making and Oversight 'Very Strong'
The district government is effectively the main decision-maker for
CAXIG and exerts control through the Chengdu Shuangliu District
State-owned Assets Supervision, Administration and Financial Bureau
(SASAFB), which owns 90% of CAXIG. The Department of Finance of
Sichuan province holds the remaining 10%, but Fitch expects its
involvement in the company to be limited.
The government tightly controls CAXIG by appointing senior
management, approving major investment and financing plans, and
closely monitoring the company's operating and financial
performance. All of the board members, except for the employee
representative, are appointed by the government.
Precedents of Support 'Strong'
The district government has granted continuous financial support to
CAXIG. The company received annual government subsidies of CNY260
million, which made up 20%-30% of EBITDA in the past five years. It
has also received sizeable cash and asset injections from the
government to compensate for policy projects with low profitability
and to strengthen its balance sheet. The fiscal support totalled
about CNY8.3 billion in 2023, enhancing its capital base to CNY66
billion from CNY57 billion at end-2022. The support provided is
material relative to the company's balance sheet.
Incentives to Support
Preservation of Government Policy Role 'Strong'
CAXIG's role in the district ranges from urban development and
industrial investment to the promotion local economic development.
The large population inflow to the district means the public
services that CAXIG provides to improve local households' living
standards as well as the region's economic and employment prospects
are strategically important. The Shuangliu district has become one
of the most populous in Chengdu with 1.5 million residents at
end-2023, increasing from 0.8 million at end-2017.
Contagion Risk 'Very Strong'
CAXIG is among the highest profile entities in the district with
strong visibility in borrowing. Chinese banks provide substantial
debt financing, with policy and state banks rated in the 'A'
category contributing about 40% of the credit facilities. CAXIG is
also a regular bond issuer in domestic and offshore markets. Most
of its debt is raised to finance local urban-infrastructure
projects that serve the public. Fitch believes a default would
severely damage the district government's reputation and constrain
other regional GREs' financing capability.
Standalone Credit Profile
Its Standalone Credit Profile (SCP) assessment is derived from a
'Midrange' risk profile and 'b' financial profile. Fitch positions
CAXIG's SCP in the middle of the 'b' category, factoring in its
leverage and liquidity profile relative to peers.
Risk Profile: 'Midrange'
Fitch assesses CAXIG's risk profile at 'Midrange', reflecting the
combination of its assessment of its revenue, expenditure, and
liability and liquidity risks.
Revenue Risk: 'Midrange'
Revenue risk is assessed as 'Midrange' as Fitch expects sustained
demand for urban development in Shuangliu, given the district's
solid economic prospects and strong population inflow. This is
counterbalanced by CAXIG's geographic and customer concentration,
resulting in its 'Midrange' assessment.
Expenditure Risk: 'Midrange'
The 'Midrange' expenditure risk reflects CAXIG's well-identified
cost drivers with moderate volatility. The company formulates its
investment plans in accordance with the district government's
approval and fiscal support, mitigating execution risk.
Liabilities and Liquidity Risk: 'Midrange'
The liabilities and liquidity risk is assessed as 'Midrange', which
reflects its adequate liquidity profile. CAXIG has good access to
capital markets for financing, and sufficient liquidity available
for debt servicing given its good relationships with major Chinese
banks. Its weighted-average life of debt was around 3.7 years as of
end-2023, in line with the 'Midrange' assessment. Foreign-currency
risk is manageable as its US dollar bond accounted for only about
5% of total debt.
Financial Profile 'b'
Fitch expects the company's net leverage, measured by net
debt/Fitch-calculated EBITDA, to remain high at 50x-60x by end-2028
in light of the company's investment plan. This results in the 'b'
financial profile. Its adequate liquidity profile mitigates the
financing risk associated with the high leverage, underpinning the
'b' SCP.
There is no single factor leading to equalisation.
Derivation Summary
CAXIG's rating is derived from its assessment of the four key
rating factors under Fitch's Government-Related Entities Rating
Criteria, combined with the SCP assessment of 'b' under its Public
Policy Revenue-Supported Entities Rating Criteria.
Issuer Profile
CAXIG is a key urban developer in the Chengdu Shuangliu district,
with total assets of CNY141 billion as of end-2023. The district is
part of Chengdu, the capital of Sichuan province, in south-west
China.
Key Assumptions
Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2019-2023 historical figures and 2024-2028
scenario assumptions:
- average operating revenue growth of about 5% a year in 2024-2028,
driven by sustained demand for public services;
- average operating expenditure growth of about 5% a year in
2024-2028, based on a steady increase in recurring expenditure and
variable costs fluctuating with revenue growth;
- average net debt growth of about 5%, given the company's debt
management plan.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Entity/Debt Rating Prior
----------- ------ -----
Chengdu Airport
Xingcheng Investment
Group Co., Ltd. LT IDR BB+ Affirmed BB+
LT IDR WD Withdrawn
LC LT IDR BB+ Affirmed BB+
LC LT IDR WD Withdrawn
JINGBO TECHNOLOGY: Sells Shares for $1.54MM to G. Zhang
-------------------------------------------------------
Guowei Zhang, executive officer and director of Jingbo Technology,
Inc., disclosed in a Form D filing with the U.S. Securities and
Exchange Commission that he purchased on December 9, 2024, a total
of $1,540,000,000 value of 550,000,000 shares of common stock of
the Company based on the closing price as of December 9, 2024.
About Jingbo
Headquartered in Shoujiang Town, Fuyang District, China, Jingbo
Technology, Inc., initially was in the business platform of
providing application software to a global vendor platform to
connect people to businesses and provide a new shopping experience.
The Company's wholly owned subsidiary, Intellegence Parking Group
Limited, is a multinational technology company, with a smart
parking application software and platform business ecosystem as its
main business venture. Intellegence operates facilities at Xiaoshan
Airport Remote Parking Lot, Tianjin Xinhua International
University, Fuyang People's Hospital, Qilu University Hospital,
Shanghai Tesco Supermarket, Hubei Huanggang Central Hospital. It
also currently has eight urban parking projects.
Guangzhou, Guangdong, China-based GGF CPA LTD, the Company's
auditor since 2024, issued a "going concern" qualification in its
report dated July 3, 2024, citing that the Company had incurred
substantial losses during the years and negative working capital,
which raises substantial doubt about its ability to continue as a
going concern.
As of May 31, 2024, Jingbo Technology had $12.63 million in total
assets, $32.41 million in total liabilities, and a total deficit of
$19.78 million.
=========
I N D I A
=========
ADVAITH BIO: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term rating of Advaith Bio Remedies in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Advaith Bio Remedies, 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.
Advaith Bio Remedies is a partnership firm based out of Bangalore
manufacturing herbal based products for pharmaceutical and cosmetic
industry. The company sells products for hair care, face care, baby
care in cosmetic segment and for diabetes, neurological, heart
diseases etc in pharmaceutical segment under the brand name BIO
CARE. It has its own research and development center and is closely
associated with laboratories in India like Bangalore Test House for
research and analysis to ensure high quality products. This ensures
sterilized raw material for highly sensitive Pharmaceutical and
Ayurveda formulations.
AYODHYA COTSPIN: CRISIL Reaffirms D Rating on INR24cr Term Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D/CRISIL D' ratings on
the bank facilities of Ayodhya Cotspin Pvt Ltd (ACPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.54 CRISIL D (Reaffirmed)
Cash Credit 4 CRISIL D (Reaffirmed)
Term Loan 24 CRISIL D (Reaffirmed)
The ratings continue to reflect the delay in meeting repayment
obligation, large working capital requirement and leveraged capital
structure of the company. These weaknesses are partially offset by
the extensive experience of the promoters in the cotton textile
industry.
Analytical Approach
CRISIL Ratings has considered the standalone business and financial
risk profiles of ACPL.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in servicing term debt obligation: The company has been
delaying servicing its debt obligation because of insufficient
funds. The repayment, which was due on July 24, 2024, was made on
July 26, 2024, and that due on November 24, 2024, was serviced in
next 3 days. Bank limit utilisation was also full on the due dates,
thereby leaving limited funds to meet debt obligation.
* Large working capital requirement: Bank limit utilisation was
100% for multiple months during the six months through June 2024,
with average utilisation being 99%. Gross current assets were 112
days as on March 31, 2024. Low cushion in the bank limit exposes
the company to the risk of liquidity challenges in the wake of any
unanticipated weakening in the business risk profile.
* Leveraged capital structure: Low networth and increased
dependence on external debt to support business growth has resulted
in a leveraged capital structure. Gearing stood high at 2.42 times
and total outside liabilities to tangible networth ratio at 2.94
times as on March 31, 2024.
Strength:
* Extensive experience of the promoters: Longstanding presence of
the promoters in the cotton textile industry, including via
directorships in other group companies engaged in the same
business, has helped them gain strong understanding of market
dynamics and maintain healthy relationships with suppliers and
customers. This will ensure steady demand and easy access to raw
material for ACPL over the medium term.
Liquidity: Poor
The company had to delay servicing its repayment obligation for
July and November 2024 due to lack of funds. The cash credit
facility was utilised at 99% (on average) for the six months
through June 2024.
Rating sensitivity factors
Upward factors
* Timely servicing of debt obligation for three months
continuously
* Substantial and sustainable increase in revenue and operating
margin, leading to higher-than-expected net cash accrual
ACPL was incorporated in 2021 by Mr Surinder Kumar, Mr Rajeev
Singla, Mr Vijay Kumar, Mr Gaurav Garg, Mr Nitesh Garg and Mr
Ravinder Kumar. The company manufactures cotton yarn at its
facility in Patiala Road (Samana, Punjab), with yearly installed
capacity of 7,770 metric tonne (MT) (i.e., 6,300 MT for 14 counts
and 1,470 MT for 20 counts). The plant commenced operations on
November 27, 2023.
GIRIRAJ JEWELLERS: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
Facility of Giriraj Jewellers Private Limited (GJPL) in the 'Issuer
Not Cooperating' category. The ratings are denoted as "[ICRA]D;
ISSUER NOT COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
Short-term 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term- 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term- 2.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with GJPL, 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 2004, Giriraj Jewellers Private Limited (GJPL) is
engaged in manufacturing gold and diamond studded Jewellery from
its manufacturing facility in Borivali (West), Mumbai. The company
also has a showroom in Borivali (West). The promoter of GJPL has
been engaged in the Jewellery business for the past three decades
through the proprietorship firm, Giriraj Jewellers. Giriraj
Jewellers is currently engaged in wholesale of gold and diamond
Jewellery and exports to the UAE and UK
markets.
HABIB TEXTILES: ICRA Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-term rating of Habib Textiles Pvt. Ltd. in
the 'Issuer Not Cooperating' category. The rating is denoted as
[ICRA]B+(Stable); 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
As part of its process and in accordance with its rating agreement
with Habib Textiles Pvt. Ltd., ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Habib Textiles Pvt. Ltd., promoted by the Ansari family, was
incorporated in 2003. The company manufactures fabric (greige as
well as finished) that are mainly used as shirting material. The
company procures textured yarn from agents based in Mumbai and
undertakes warping, weaving, sizing and cutting works in-house,
while dyeing work is outsourced to third parties on jobwork basis.
Its head office and manufacturing facility are in Bhiwandi, Thane
(Maharashtra). The company also has a sales office in Surat
(Gujarat).
IIFL FINANCE: S&P Assigns 'B+/B' ICRs, Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term and 'B' short-term
issuer credit ratings to India-based IIFL Finance Ltd. The outlook
on the long-term rating is stable. At the same time, S&P assigned
its 'B+' foreign-currency issue rating to senior secured notes that
are a part of IIFL's US$1 billion secured global medium term note
(MTN) program.
S&P said, "Our ratings on IIFL reflect the company's small market
share in India's financial sector and the susceptibility of its
funding profile to market sentiment. We believe the central bank's
embargo on IIFL's gold financing business, which was lifted in
September 2024, will have a transient impact on the company's
reputational risk and funding profile.
"We also expect IIFL's credit costs to remain higher than rated
peers', given the weaker borrower profile and evolving target
client segment of the company. Partially mitigating this risk is
IIFL's very strong capitalization, which provides a buffer against
unexpected losses.
"Our starting point for rating finance companies (fincos) in India
is 'bb', two notches below the anchor for the banking sector in
India. We believe Indian fincos face greater industry risk than
banks because they generally have no access to central bank
funding. Moreover, regulations for fincos are less onerous than
prudential norms for banks."
Several fincos in India have strong niches, domain expertise, and
economies of scale to support revenue stability and mitigate
competitive pressures. Despite fincos' higher funding costs than
banks, many of the larger fincos are very profitable, with overall
return on assets of 1.5%-3.0% over the past three years. Their
earnings benefit from lower operating costs than banks', strong
niche positions, and an absence of regulatory drag on margins.
IIFL's business position reflects its modest market share. The
company has a small market share in India's financial sector, with
an asset base of Indian rupee (INR) 624 billion (US$7.5 billion).
IIFL is active in originate and sell down/co-lending. This is
unlike some of the large rated fincos that mainly do on-balance
sheet lending. The off-balance sheet book for IIFL is sizable at
about 34% of assets under management as on Sept. 30, 2024.
Prior to the Reserve Bank of India (RBI) embargo, IIFL aggressively
gained market share in the gold loan segment, standing only behind
Muthoot Finance Ltd. among fincos. Now that the embargo is lifted,
we expect IIFL to make good progress in recapturing its market
share in gold loans. It will likely use its wide and sizable branch
network to re-engage former customers, and potentially offer more
competitive pricing.
IIFL has a granular and diversified loan book. It has increased its
focus on retail loans in the past five years. The company has
average profitability relative to its rated peer group, with a
three-year average return on adjusted assets of about 3% for
fiscals 2022-2024 (years ending March 31). That is lower than the
return for Bajaj Finance Ltd. and other gold financiers.
IIFL is open to corporate actions in the form of demergers when
such a move unlocks value for its shareholders and attracts quality
investors. However, we understand there are no immediate plans at
least in the next 12 months. If such actions happen, S&P will treat
them as event risk and assess their impact on the company's
creditworthiness.
IIFL will likely maintain very strong capitalization. S&P
forecasts the company's risk-adjusted capital (RAC) ratio will
increase to 16%-17% over the next two fiscal years, compared with
15% as of March 31, 2024. This reflects a contraction of the loan
book following the embargo, the company's INR12.7 billion equity
rights issuance in May 2024, and limited dividend payouts over the
next 24 months.
S&P expects the IIFL's return on assets (excluding one-offs) to
improve to 3.0%-3.3% in fiscal years 2026-2027, after a likely drop
in profitability in fiscal 2025. The improvement in profitability
will be supported by normalization in credit costs and higher net
interest margins as IIFL resumes its gold lending business. The
company's core return on assets (excluding one-offs) was 2.5%
annualized for the first half ended Sept. 30, 2024; the return is
about 0.5% if it considers a provision for alternative investment
funds.
S&P's view on IIFL's risk position reflects the company's high-risk
appetite and the high-risk, high-yielding business in which it
operates. The company's risk appetite has evolved in recent years,
with a reducing exposure to construction and real estate finance,
and an increasing focus on secured loans such as gold loans and
mortgages. That said, IIFL's risk appetite remains high given the
vulnerable/low-income client segment in which it operates.
IIFL focuses on an inherently risky underserved segment. The
company has in recent years increased exposure to the microfinance
segment, which carries higher risk. Moreover, in the gold loan
business, underwriting primarily depends on collateral value
(rather than being cash flow-based). IIFL, like other lenders in
this segment, mainly bases its lending on the appraisal of
jewelry.
IIFL's credit costs will likely remain on the higher side compared
with that of rated peers. This is given the company's focus on
higher-yielding, lower-ticket loans in its low-income target
segment, which typically entails higher credit costs. IIFL's credit
costs rose this year due to ongoing stress in the microfinance
book, higher provisioning and write-offs in the digital loan book,
and the lower base effect in the gold loan book. IIFL has taken
steps to tighten microfinance underwriting standards, and we expect
to see the effects of this in the coming quarters.
S&P's assessment of IIFL's funding profile reflects the company's
dependence on wholesale funding. The lack of backing from a
strong parent group suggests the company is more vulnerable to
volatility and to market perception than peers that are part of a
strong parent group. This is reflected in IIFL's higher cost of
funding. Further, any perceived governance issues could heighten
reputational risks.
S&P expects the embargo to have a transient impact on IIFL's
funding profile and increase the cost of funds. During the embargo,
the company's cost of funds rose on its incremental borrowings,
mostly at the subsidiary level; there were no new borrowings at the
IIFL level. Now that the embargo is lifted, IIFL has started to
secure new lines from lenders.
IIFL has access to multiple sources of funding. Bank term loans and
refinancing lines have the largest share at about 60%, within which
some concentration exists.
IIFL maintained sufficient liquidity during the embargo. Shortly
after the RBI order was announced, Fairfax India Holding Corp.,
IIFL's largest institutional shareholder, stepped in to provide
liquidity support to the tune of US$200 million. This demonstrates
Fairfax's confidence in the company.
IIFL's assets and liabilities are well matched, with a cumulative
positive gap across all tenor buckets. Liquid assets (cash and
government securities and mutual funds) maintained on the balance
sheet were about 6% of total assets as of Sept. 30, 2024.
S&P said, "In our comparable rating analysis, we make a one-notch
downward adjustment in assessing IIFL's stand-alone credit profile
(SACP). This is due to a combination of structural and transient
factors. Our approach reflects the company's higher credit losses
than rated peers because of its weak borrower profile and evolving
target client. It is also driven by IIFL's slightly weakened
business and financial profile due to the prolonged central bank
embargo, and by its confidence sensitive funding.
"We understand that there is a covenant breach at IIFL's
microfinance subsidiary. IIFL is working on obtaining the necessary
waivers and lenders are not enforcing on the breach. However, the
breach could expose IIFL to higher funding costs."
MTN Program Ratings
S&P has equalized the ratings on the senior secured notes under the
global MTN program with its long-term issuer credit rating on IIFL.
This is because the finco is a prudentially regulated financial
institution and the notes under the program have an equal ranking
in right of payment with all the company's secured obligations.
Notes issued from the program will constitute direct, secured, and
unconditional obligations of IIFL. The notes are secured by a first
ranking pari passu charge over all rights, titles, interest,
benefits, claims, and demands (both present and future) over
receivables/assets, including the issuer's accounts, operating cash
flows, current assets, book debts, loans and advances and
receivables, subject to conditions. The company must ensure that
notes are at least 100% covered by assets, excluding assets
classified as nonperforming.
IIFL may also issue index-linked notes from the program. Under our
rating criteria, S&P does not rate the notes if principal payments
are linked to fluctuations in equity or commodity prices, or equity
or commodity indices.
The global MTN program also has a cross-acceleration clause on the
present and future indebtness of the issuer or any of its principal
subsidiaries. IIFL Samasta Finance Ltd., which is IIFL's
microfinance subsidiary, is at present in breach of certain asset
quality related covenants. That said, S&P understands that none of
the lenders has so far enforced on the covenant breach.
The rating on the notes is subject to its review of the final
issuance program documentation.
S&P said, "Our stable outlook on IIFL reflects our view that the
company's very strong capitalization and anticipated improvement in
business volume and profitability will help it navigate operating
challenges that may arise as it resumes business following the
lifting of the embargo.
"We believe IIFL's credit costs have peaked and should start
decreasing from fiscal 2026. At the same time, we expect only a
gradual increase in leverage during this period. The company will
likely sustain its funding access despite sensitivity to market
confidence.
"We may downgrade IIFL if a material corporate action, such as a
demerger, occurs to the extent that it weakens the company's
creditworthiness.
"We could raise the ratings if IIFL strengthens its revenue
stability and market position, and its credit losses fall broadly
in line with rated peers, while the company maintains its capital
position."
JOYMAKALI COLD: ICRA Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-term and Short Term rating of Joymakali Cold
Storage Private Limited (JCSPL) in the 'Issuer Not Cooperating'
category. The ratings are denoted as [ICRA]B(Stable)/[ICRA]A4;
ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 5.62 [ICRA]B (Stable); ISSUER NOT
Cash Credit COOPERATING; Ratings continues
to be under Issuer Not
Cooperating Category
Untied Limits 0.38 [ICRA]B(Stable)/[ICRA] A4
ISSUER NOT COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with JCSPL, 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 1978 as a private limited company, Joymakali Cold
Storage Private Limited (JCSPL) is a closely held company promoted
by Mr. Naba Kumar Kundu and his family members. The company
provides cold-storage facility to potato-growing farmers and
traders on a rental basis with a storage capacity of 150,604
quintals. The cold-storage unit is located in Burdwan,
West Bengal.
JYOTE MOTORS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-term rating of Jyote Motors Private Limited
(JMPL) in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]B+(Stable); ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 39.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 0.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with JMPL, 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 2000, JMPL is an authorised dealer of MSIL. The
company has its showrooms and service centres under the brand name
'JyoteMotors' in Odisha. JMPL deals in sales and servicing of
vehicles, sale of spare parts/accessories, and trades in pre-owned
cars. In April 2017, the company opened a new showroom to deal in
the NEXA variant of MSIL vehicles. The company also set up two
sales outlets in Bhubaneswar in October 2015, which deal in bikes
manufactured by Suzuki Motorcycles India Private Limited (SMIPL)
and the NEXA variant of MSIL vehicles, respectively.
KARVY DATA: NCLT Approves Sangamam Power's Resolution Plan
----------------------------------------------------------
The Economic Times reports that the National Company Law Tribunal
(NCLT) has approved the resolution plan of Sangamam Power Projects
for the acquisition of Karvy Data Management Services (KDMSL) and
its subsidiaries. The ruling, delivered by an NCLT bench headed by
Justices Dr. Venkata Ramakrishna Badarinath Nandul and Shri Charan
Singh, paves the way for the Corporate Insolvency Resolution
Process (CIRP) of KDMSL.
ET says the decision was welcomed by the Chamber of Commerce of
Gwalior. "This decision would open doors to new possibilities in
the data industry," ET quotes Dr. Praveen Aggarwal, President of
the Chamber of Commerce, as saying. He also emphasized the positive
effects on Gwalior's IT park and the local economy, adding that it
would create employment opportunities and promote technological
development in both Gwalior and India.
Sangamam Power Projects, led by Katta Sitaram Reddy and Anshuman
Modugu Reddy, specialises in solar, hydro, and wind energy. The
company stated that KDMSL's resolution plan aims to leverage the
synergies of its established businesses, ensuring revitalization
and long-term success.
Founded in 2008, KDMSL has subsidiaries including Karvy Innotech
(KITL) and Karvy Renewable Energy Projects Limited (KREPL), which
focus on IT infrastructure management and renewable energy
projects, such as rooftop solar initiatives.
KDMSL provides business and knowledge process services; it started
off as a pure-play back-office service provider and added other
verticals such as e-governance, banking, telecom, and e-commerce.
The company is an established player in government mandates such as
UIDAI's Aadhar, PAN card, NPR Biometric, and E-TDS.
KARVY FINANCIAL: ICRA Moves D Debt Rating to Not Cooperating
------------------------------------------------------------
ICRA has moved the ratings of Karvy Financial Services Limited
(KFSL) to the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term 10.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating moved to the 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with KFSL, ICRA has been trying to seek information and management
meeting from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with the aforesaid policy of ICRA, a rating view has
been taken on the entity based on the best available information
Karvy Financial Services Limited is a fully-owned subsidiary of
Karvy Stock Broking Limited (KSBL), directly and through other
Group companies. It received its NBFC licence in Q1 FY2010. During
the initial phase of operations, the company had significant
exposure to capital markets through products such as loan against
shares and commodities, and margin funding, which was largely done
in conjunction with the broking and commodities arms of the Group.
In FY2017, KFSL sold a substantial part of its assets to SBFC and
transferred most of its employees and the entire branch network and
infrastructure facilities to the latter.
KFSL reported a net loss of INR4 crore on a total asset base of
INR83 crore as on March 31, 2024 compared to net loss of INR22
crore on a total asset base of INR85 crore as on March 31, 2023. It
reported a net profit of INR1 crore on a total asset base of INR84
crore as on Sept. 30, 2024.
KS SOFTNET: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings for the Bank
Facility of KS Softnet Solutions Private Limited (KSSSPL) in the
'Issuer Not Cooperating' category. The ratings are denoted as
"[ICRA]D; ISSUER NOT COOPERATING/[ICRA]D;ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 15.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short Term- (6.50) [ICRA]D; ISSUER NOT COOPERATING;
Interchangeable Rating Continues to remain under
'Issuer Not Cooperating'
Category
Short-term 25.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Continues to remain under the
Others 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with KSSSPL, 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.
KS Softnet Solutions Pvt. Ltd. (KSSSPL) was incorporated in the
year 2002 by Mr. Dinesh Agrawal, and is engaged in the development
of Interstate and International check posts for Government
entities. The company is also an authorized partner for
distribution of software products for Microsoft Corporation (USA)
in Mumbai and adjoining regions. The current contracts undertaken
by the company include projects for the Department of Transport
(Government of Jharkhand) and Ministry of External Affairs. The
company started as a software distribution firm and later on
diversified into construction of integrated check posts in 2006.
LAKSHMI TRADERS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Lakshmi
Traders - Chennai (LT; part of the Lakshmi group) continue to be
'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Proposed Working 2 CRISIL D (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with LT for
obtaining information through letter and email dated November 11,
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 LT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of LT
continues to be 'CRISIL D Issuer not cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of LT and Lakshmi Ranga
Enterprises Pvt Ltd (LREPL). This is because the two entities,
together referred to as the Lakshmi group, have a common management
team and are engaged in similar lines of business.
LREPL, set up in 1984, trades in paints, hardware, plywood, and
various building construction material. LT, established in 2009,
trades in white cement and other building construction material.
The group is managed by Mr. R. Anbalagan and his family members,
and based in Thiruvannamalai (Tamil Nadu).
MANOJ CABLES: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Manoj Cables
Limited (MCL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 30 CRISIL D (Issuer Not
Cooperating)
Standby Line 3 CRISIL D (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with MCL for
obtaining information through letter and email dated November 11,
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 MCL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MCL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MCL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
MCL, incorporated in 1992, engaged in manufacturing and supplying
of communication and signaling cables, primarily to Indian
Railways. MCL is based in New Delhi and its day to day operation is
looks by its Director Mr. Manoj Garg.
MEGHDOOT GINNING: ICRA Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-term rating of Meghdoot Ginning & Pressing
Industries 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- 30.00 [ICRA]B (Stable); ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with itsrating agreement
with Meghdoot Ginning & Pressing Industries 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.
Meghdoot Ginning & Pressing Industries Private Limited was
incorporated in 1999 by Mr. Bharat Shah, Mr. Anand Shah, Mr. Ajay
Shah and the other family members. The company is engaged in the
business of ginning and pressing of raw cotton with the capacity to
manufacture around 200 bales1 per day of cotton bales. The
promoters of the company are also associated with other associate
concerns namely PD Cotton Pvt. Ltd. and Shah Punamchand Devchand,
which are involved in trading of cotton bales.
MISTRY ENTERPRISES: ICRA Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-term rating of Mistry Enterprises Limited
(MEL) in the 'Issuer Not Cooperating' category. The rating is
denoted as [ICRA]D; ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 27.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Mistry Enterprises 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, Mistry Enterprises Limited (MEL) is engaged
in heavy excavation and earthwork. It is part of the Mistry Group
which consists of other companies engaged in film exhibition, tower
leasing and textile trading. The company used to undertake mining,
excavation and earthwork as a sub contractor for Mistry
Construction Company Private Limited in Singrauli
in MP.
NANDINI FITNESS: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of
Nandini Fitness Pvt. Ltd. in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[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
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Nandini Fitness Pvt. Ltd., ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Nandini Fitness Private Limited was incorporated in July, 2009 by
Mr. Sumit Goel & Hemant Kumar Singh. The company was established to
promote health & fitness business in Lucknow. NFPL is a franchisee
of "Gold's Gym" in Lucknow, Uttar Pradesh and is currently managing
a gymnasium along with the Mojjo restaurant, at Mahanagar, Lucknow.
Further, the management has set up a new center of "Gold Gym" at
Gomti nagar, Lucknow.
PNB REALTY: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-Term rating of PnB Realty Ltd (PnB) in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 5.97 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term- 0.35 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term- 2.18 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with PnB, 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.
PnB Realty Ltd. (PnB), a part of the PnB Group of Companies, was
incorporated in March 2008 as a public limited company. The group
is promoted by Mr. VGP Babudas, a second-generation entrepreneur,
with a track record of more than 20 years in real estate and
hospitality sectors. The company operates a hotel named Aurick
Hotel and is also involved in real-estate projects.
PRAVEEN ELECTRICAL: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Praveen
Electrical Works (PEW) in the 'Issuer Not Cooperating' category.
The ratings are denoted as "[ICRA]D; ISSUER NOT COOPERATING/
[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 9.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-fund based Rating continues to remain under
Others 'Issuer Not Cooperating'
Category
Long-term/ 6.00 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term COOPERATING; Rating Continues to
Unallocated remain under 'Issuer Not
Cooperating' Category
As part of its process and in accordance with its rating agreement
with Praveen Electrical Works, 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.
Praveen Electrical Works (PEW) was established as a proprietorship
firm in the year 1994 by Mr. Prakash. C. Angadi. The firm is an
electrical contractor and is a registered Class I contractor with
Government of Karnataka. The firm undertakes internal and external
electrification works and caters to various Government departments
in Karnataka such as Hubli Electricity Supply Company Limited,
Karnataka Slum Development Board, Public Works Department and The
Karnataka Power Transmission Corporation Limited among others.
PRIMARY AGRICULTURE: To Wind Up in 15 Days After Property Transfer
------------------------------------------------------------------
Business Standard reports that a liquidator should not take more
than 15 days to complete the liquidation of Primary Agriculture
Cooperative Societies (PACS) after it takes custody of the
property, claims, books, records and documents, a recent standard
operating procedure (SOP) for liquidation of PACS and LAMPS (Large
Area Multipurpose Societies) said.
Released a few days ago by Union Cooperatives Minister Amit Shah,
the SOP also said that state cooperative department officers
concerned should not take more than seven days to identify defunct
PACS as per the criteria laid down by the respective State
Cooperative Societies Acts.
The SOP was shared with all state Registrars of Cooperative
Societies, with advice to modify it suitably and adopt.
"This would enable liquidation of identified defunct PACS and LAMPS
to be completed within March 31, 2025," a senior official
explained.
LAMPS are cooperative societies established by the government to
support tribal development and people living in hilly areas.
Once defunct PACS are liquidated, new ones can come up in their
place, which would ensure that the target of setting up 200,000 new
functional societies of this nature in the next five years is
achieved at the earliest. At present, India has close to 1.05 lakh
PACS, of which just around 65,000 are functional.
Of the 200,000 new PACS, Nabard will set up around 22,750 in the
first phase and 47,250 in the second phase, National Dairy
Development Board (NDDB) will set up 56,500 in the first phase and
revitalise 46,500 existing ones. That apart, the National Fisheries
Development Board (NFDB) will also set up 6,000 new PACS in the
first phase and revitalise 5,500 existing ones.
According to Business Standard, PACS constitute the lowest tier of
the three-tier cooperative credit structure in the country,
comprising more than 13 crore farmers as its members.
As per a data shared a few years ago, PACS had then accounted for
41 per cent (3.01 crore farmers) of the Kisan Credit Card (KCC)
loans given by all entities in the country. And, 95 per cent of
these KCC loans (2.95 crore farmers) through PACS were given to
small and marginal farmers.
In 2022, the Union Cabinet had approved an ambitious programme to
strengthen around 63,000 PACS with a grant of over Rs 2,516 crore.
That aside, the Centre has also allowed PACS to undertake a whole
gamut of ancillary economic activities to make them viable.
Other than credit, PACS are now allowed to offer a host of such
activities, which include developing cold storage facilities in
villages, running PDS (public distribution system) shops, providing
locker facility for rural depositors, acting as common service
centres for government schemes, and enabling villagers to work in
dairy, fishery, irrigation, and biogas sectors.
Business Standard relates that the SOP has also said that an
officer appointed by the Registrar of Cooperative Societies should
conduct a detailed inquiry into the causes for liquidation of an
individual PACS and submit a report to the Registrar Office within
15 days.
"In case the officer recommends a revival of the said PACS, then
preparation for a revival business plan should be done in seven
days," the SOP said.
It also said that after receiving the receipt of the winding-up
proceeding report from the liquidator, an auditor shall be
appointed to audit the liquidator account within seven days.
Business Standard adds that the SOP further laid down that all
surplus assets of the liquidated PACS should be disposed of by the
liquidator as per the Societies Act. No timeline has been given for
the same.
PURNAM: ICRA Keeps B Debt Ratings in Not Cooperating Category
-------------------------------------------------------------
ICRA has kept the Long-Term rating of Purnam (PM) in the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]B
(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.80 [ICRA]B (Stable) ISSUER NOT
Fund Based COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 12.75 [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 PM, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in August 2011, Purnam (PM), a part of the
Kolkata-based "Aparna" group, acquired an existing nursing home and
after significant renovation commenced operations in January, 2013.
PM was promoted by four partners - Mr. K.D. Paul, Mr Arpan Paul,
Mrs Manjusri Paul and Mrs Devika Paul PM currently runs a 57 bedded
multi-specialty nursing home, located at a prominent place in south
Kolkata. The nursing home provides treatment in various departments
viz. general medicine,
orthopaedic, paediatric, neurology, gastroenterology, gynaecology,
oncology, cosmetic surgery, cardiology, nephrology among others. In
September 2015, the firm has also opened a polyclinic cum
diagnostic centre for various departments viz. ENT, Dental, and
Dermatology. ICRA has also rated one of the entities of the Aparna
group, viz. Saj Food Products Private Limited (rated at
[ICRA]A/Stable/[ICRA]A1), engaged in confectionery business under
the brand name of 'Bisk Farm.
R.K. DHABHAI: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of R.K. Dhabhai
Minerals and Chemicals Private Limited (RK) in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER
NOT COOPERATING/[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 3.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 1.41 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Short-term 2.21 [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 RK, 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 by Mr. R.K. Dhabhai and his wife Mrs. Urmila
Dhabhai, RK performs job work like grinding, crushing, loading and
transportation of rock phosphate. The company's two operational
units for grinding and crushing are in Rajasthan with a total
grinding capacity of 1,08,000 metric tonnes (MT) per annum and
total crushing capacity of 2,40,000 MT per annum.
REAL GROWTH: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of Real
Growth Commercial Enterprises Limited (RGCEL) in the 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 21.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term 4.00 [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 RGCEL, 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.
Real Growth Commercial Enterprises Limited (RGCEL) was incorporated
in 1995 under the name KRS Financials Pvt Ltd. In 2001, it was
taken over by the RG Group and the name was changed to Rajesh
Projects & Finance Limited. The company was involved in development
of commercial office-cum-shopping complexes till 2007 and executed
4 commercial projects during this period. The company commenced
trading of stainless steel sheets of various dimensions in January
2010. No new real estate projects were undertaken in the company
after 2007 and the company is solely operating in the business of
trading of stainless steel sheets in Bhiwadi. The name was later
changed to Real Growth Commercial Enterprises Limited in January
2011. RGCEL is managed by Mr Rajesh Goyal who is the Managing
Director of the RG Group. The company does trading of steel sheets
(patti and patta) of various dimensions in Bhiwadi where it has
taken a warehouse on lease. The orders are taken on a daily basis
at the prevailing market rates. The order is supplied at that rate
with no raw material price risk assumed by the company. In some
instances the goods are not even unloaded at the company's
warehouse and are re-routed directly to the facility of the buyer
located nearby based on offhand arrangements as most of the buyers
and sellers of the company are located in the same area, i.e
Bhiwadi. Thus, the company is able to save on its logistic costs
and also avoid keeping stock of inventory. The inventory days stood
at same levels in the range of 15-30 days in the last few years.
REDKENKO HEALTH: Insolvency Process Initiated Over Default
----------------------------------------------------------
Insolvency Tracker reports that Axis Trustee Services Limited,
acting on behalf of Blacksoil Capital Private Limited and Blacksoil
India Credit Fund, has successfully initiated a Corporate
Insolvency Resolution Process (CIRP) against Redkenko Health Tech
Private Limited under Section 7 of the Insolvency and Bankruptcy
Code, 2016. The case, filed before the National Company Law
Tribunal (NCLT) Mumbai Bench, centers around an alleged financial
default amounting to INR5.65 crore by the health tech company.
According to the report, Redkenko Health Tech Private Limited,
better known as Kenko Health, had shut operations early this year
following a financial and operational crisis. Redkenko Health was a
health financing company that provides comprehensive plans covering
OPD & IPD expenses. It had raised $12 million in February 2023 as a
part of its Series A round led by Sequoia Capital India. The round
also saw participation from existing investors Beenext, Orios,
9Unicorns and Waveform Ventures.
Insolvency Tracker says the petition cites Redkenko's failure to
meet its obligations under a Debenture Trust and Hypothecation Deed
dated Sept. 14, 2023. The agreement involved the issuance of 200
secured, redeemable, unrated, and unlisted non-convertible
debentures, each valued at INR5 lakh, amounting to a total debt of
INR10 crore. Blacksoil India Credit Fund and Blacksoil Capital
Private Limited each contributed INR5 crore towards these
debentures.
Insolvency Tracker relates that despite multiple notices and
opportunities provided to Redkenko to address the defaults and
comply with financial covenants, the company acknowledged its
financial constraints and inability to fulfill its obligations in
correspondence dated March 24, 2024. This admission led to Axis
Trustee Services exercising its rights under the agreement and
initiating CIRP proceedings.
The tribunal, upon reviewing the records and hearing arguments from
Axis Trustee Services, noted that the financial debt was
established under Section 5(8) of the Insolvency and Bankruptcy
Code, 2016. The default amount exceeded the threshold of INR1 crore
as stipulated under Section 4 of the Code. The tribunal further
observed that Redkenko failed to respond adequately despite
repeated notices, leaving no dispute about the debt and default.
The NCLT has appointed Mr. Hemanshu Kapadia as the Interim
Resolution Professional (IRP) to oversee the CIRP process,
Insolvency Tracker discloses. A moratorium under Section 14 of the
Code has also been imposed, restricting any legal actions, asset
transfers, or recoveries against Redkenko during the CIRP period.
SAMRAT SEA: ICRA Keeps D Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has kept the Long-term rating of Samrat Sea Brines Private
Limited (SSBPL) in the 'Issuer Not Cooperating' category. The
rating is denoted as [ICRA]D; ISSUER NOT COOPERATING."
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 2.75 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 4.25 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long Term- 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with SSBPL, 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 on September 29, 2011, Samrat Sea Brines Private
Limited (SSBPL) is engaged in manufacturing of iodized salt and
refined iodized salt. The company's manufacturing unit is located
at Santalpur (District-Patan), Gujarat. The promoters and directors
have past experience in salt manufacturing/ trading owing to their
association in other concerns engaged in similar operations.
YASH JEWELLERY: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Yash
Jewellery Private Limited (YJPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Loan 95 CRISIL D (Issuer Not
Cooperating)
Corporate Loan 24.3 CRISIL D (Issuer Not
Cooperating)
Funded Interest 4.93 CRISIL D (Issuer Not
Term Loan Cooperating)
Packing Credit 20 CRISIL D (Issuer Not
Cooperating)
Post Shipment Credit 30 CRISIL D (Issuer Not
Cooperating)
Working Capital 41.77 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with YJPL for
obtaining information through letter and email dated November 11,
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 YJPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YJPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
For arriving at the ratings, CRISIL Ratings has combined the
business and financial risk profiles of Yash, Dynamix Chains
Manufacturing Pvt Ltd (Dynamix Chains; rated 'CRISIL D /CRISIL D'),
Say India Jewellers Pvt Ltd (Say India; 'CRISIL A4'), Lily
Jewellery Pvt Ltd (Lily; 'CRISIL B-/Stable'), Rolly Jewellery Pvt
Ltd (Rolly; 'CRISIL B-/Stable'), Dania Oro Jewellery Pvt Ltd (Dania
Oro; 'CRISIL B-/Stable/CRISIL A4'), Jewel America Inc (Jewel
America), and Barjon Inc (Barjon). This is because all these
companies, collectively referred to as the Yash group, are under a
common promoter group, in the same line of business, and have
operational linkages and fungible cash flows.
YJPL, incorporated in 2006, is promoted by the Mumbai-based Mr.
Pramod Goenka. The company exports diamond-studded gold jewellery.
=================
I N D O N E S I A
=================
MODERNLAND REALTY: Moody's Affirms 'Ca' CFR, Outlook Negative
-------------------------------------------------------------
Moody's Ratings has affirmed the corporate family rating of
Modernland Realty Tbk (P.T.) (Modernland) at Ca.
At the same time, Moody's have affirmed the Ca backed senior
secured ratings on the restructured June 2025 notes issued by JGC
Ventures Pte. Ltd. and the restructured April 2027 notes issued by
Modernland Overseas Pte. Ltd.
JGC Ventures Pte. Ltd. and Modernland Overseas Pte. Ltd. are
wholly-owned subsidiaries of Modernland. Both notes are guaranteed
by Modernland and most of its subsidiaries.
Moody's have also maintained the negative outlook on all ratings.
On December 24, 2024, Modernland announced that it has received the
required consent from its existing 2025 and 2027 noteholders to
proceed with its proposed tender and exchange offer. Under the
terms of the transaction, the 2025 and the 2027 notes will be
bought back at a steep discount to par, at a tender price of $180
per $1,000 and $100 per $1000 of notes principal respectively,
entailing a cash outflow of $49 million. Further $620 per $1,000 of
the 2025 notes principal as well as $760 per $1,000 of the 2027
notes principal will be exchanged into new notes that will mature
in April 2027 (new 2027 notes). This transaction will be funded
with a new, amortizing loan of $60 million that the company
obtained from Bank JTrust Indonesia Tbk and Eight Rubies Limited.
Modernland must obtain approval from the High Court of Singapore to
finalize the transaction. The long-stop date for this transaction
is set for April 27, 2025.
"Moody's view the transaction as a distressed exchange, which is a
form of default under Moody's definition. Given the looming asset
sales obligation deadline which falls in December 2024 under the
terms of the company's 2025 and 2027 restructured notes in 2021,
Moody's believe the transaction helps avoiding a potential event of
default," says Anthony Prayugo, a Moody's Ratings Analyst adding
"Furthermore, holders of the 2025 and 2027 notes will bear an
economic loss when compared to the par value of the notes."
"The negative outlook reflects the company's continued challenged
liquidity situation which could disrupt its debt servicing ability
even after the completion of the proposed transaction," adds
Prayugo, who is also the lead analyst for Modernland.
RATINGS RATIONALE
The Ca CFR continues to reflect Modernland's untenable capital
structure, indicated by its extremely high leverage and weak
interest coverage.
Moody's expect the company's leverage to stay elevated at over 30x
and for interest coverage to stay well under 1x over the next 12-18
months, even after the completion of the proposed transaction.
Under the terms of the transaction, the new 2027 notes will have a
security coverage ratio of 100%. Modernland is also required to
complete around $50 million of asset sales within 12 months of the
restructuring effective date, and another $80 million of asset
sales within 24 months of the restructuring effective date. Lenders
to the new $60 million loan will receive priority of repayment from
proceeds of asset sales, except from proceeds generated from the
sales of the new 2027 notes' collateral. In essence, the collateral
for the new 2027 notes will be ringfenced from the new $60 million
loan. Modernland would need to apply 75% of the proceeds from any
asset sales that is not applied towards repayment of the new $60
million loan to redeem the new 2027 notes via the Reverse Dutch
Auction process.
Modernland recorded IDR648 billion of core marketing sales for the
first nine months of 2024, a 21% decline from the same period last
year. In the past few quarters, Modernland had been largely relying
on the sale of existing inventories to sustain its marketing sales.
The company's new launches have taken a back seat as it focuses on
addressing its asset sale obligation and proposed exchange offer
exercise. As a result, Moody's expect the company would have to
rely on asset sales to generate funds for debt servicing as well as
its operations. However, such activity would inevitably entail
uncertainty risks.
Modernland's liquidity will likely remain weak over the next 12-18
months even after the transaction. The company's cash of IDR111
billion as of end September 2024, will not sufficiently address its
operating cash flow and its debt repayment needs during the
period.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Modernland's ratings would depend on the company
establishing a sustainable capital structure and business
operations.
Modernland's ratings could be downgraded if the risk of default
increases and if Moody's estimate that the expected losses for the
company's creditors will be higher than those implied by the Ca
rating.
The principal methodology used in these ratings was Homebuilding
and Property Development published in October 2022.
Modernland Realty Tbk (P.T.) is an integrated property developer in
Indonesia that focuses on industrial town, residential and township
developments. It also has small exposures to the hospitality and
commercial property segments. The company listed on the Jakarta
Stock Exchange in 1993 and is controlled by the Honoris family.
===============
M A L A Y S I A
===============
EA TECHNIQUE: Proposes to Change Name to Avangaad Bhd
-----------------------------------------------------
Business Today reports that EA Technique (M) Berhad is embarking on
a rebranding exercise beginning with a name change, the marine
transportation and offshore storage company has submitted to change
its name to Avangaad Berhad as part of its plans to adopt a new
corporate identity and aligned with the expectations to uplift its
PN17 status by the first quarter of 2025.
Business Today relates that the board said it plans to table the
proposal for shareholder approval in a circular and at the upcoming
Extraordinary General Meeting with the date to be announced later.
The proposed name, Avangaad Berhad it said is derived from
"Avante," meaning "moving forward" in Latin, and a twist on
"Vanguard", symbolising its strategic advancement with its
advancing. This name it added also reflects the company's
commitment to leveraging its unparalleled naval expertise to
sustain leadership and drive innovation in the maritime industry.
With a focus on continuous innovation, sustainability, and business
diversification, the Company is uniquely positioned as Malaysia's
sole provider of four distinct marine service offerings, creating a
strong foundation for its sustained growth and value creation.
According to Business Today, Datuk Wira Mubarak Hussain Akhtar
Husin, Executive Director of EATech, shared his long-term vision,
stating: "The proposed name change is an exciting milestone in our
journey. It reflects our strategic purpose and marks a significant
chapter in our pursuit of growth and industry leadership. We are
confident that this new identity will resonate deeply with our
shareholders, customers, and partners as we enter this new phase of
development."
The company will undertake a comprehensive rebranding process,
including updates to its logo, branding materials, and digital
platforms.
About E.A. Technique
E.A. Technique (M) Bhd owns and operates marine vessels focusing on
marine transportation and offshore storage of oil and gas, and
provision of port marine services. The Company also owns a shipyard
involved in shipbuilding, ship repair and minor fabrication of
steel structures.
On Feb. 28, 2022, Chan had granted a restraining order to EA
Technique after the firm slipped into Practice Note 17 (PN17)
status, according to theedgemarkets.com.
The company had triggered the PN17 criteria when its shareholders'
equity as at Dec. 31, 2021 stood at MYR5.96 million, which was less
than 50% of its share capital of MYR179.755 million, while its
auditor had raised concern over its ability to continue as a going
concern.
The company was therefore required to submit a regularisation plan
to the Securities Commission Malaysia within 12 months.
In May 2022, external auditor Messrs Ernst & Young PLT (EY)
expressed a disclaimer of opinion in its audited financial
statements for the financial year ended Dec. 31, 2021 (FY2021),
theedgemarkets.com relates.
According to EA Technique's bourse filing on May 18, 2022, EY had
highlighted the group's net loss of MYR150.6 million and the
company's net loss of MYR161.2 million for FY2021.
It also noted that at end-December 2021, the current liabilities of
the group had exceeded its current assets by MYR405.3 million, but
it only had cash and bank balances of MYR6.4 million, while the
company's current liabilities had exceeded its current assets by
MYR416.9 million, but its cash and bank balances only stood at
MYR5.5 million, theedgemarkets.com relayed.
"These events and conditions indicate the existence of material
uncertainty that may cast significant doubt on the ability of the
group and the company to continue as a going concern," said EY.
=====================
N E W Z E A L A N D
=====================
SOLARZERO NZ: BlackRock Writes Down Fund After Company's Collapse
-----------------------------------------------------------------
BusinessDesk reports that global asset manager BlackRock has
reportedly written down the value of one of its flagship renewable
funds, in part because of the collapse of SolarZero.
According to BusinessDesk, BlackRock investment fund GRP III
Regional Holdings acquired the pioneering New Zealand solar company
in 2022 for NZD110 million. It was tipped into liquidation in
November.
"The directors have advised company employees that due to
unsustainable operating losses and liquidity constraints, the
business is unable to continue trading in its current form,"
SolarZero said at the time.
SolarZero NZ offered customers solar power systems. SolarZero is
owned by US private equity firm BlackRock and had 160 employees
across offices in Auckland, Christchurch, and Wanaka.
Russell Moore and Stephen Keen of Grant Thornton were appointed as
the company's liquidators in late November 2024.
=================
S I N G A P O R E
=================
G VASCULAR: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on Dec. 20, 2024, to
wind up the operations of G Vascular Private Limited.
The company's liquidators are:
Mr. Cameron Lindsay Duncan
Mr. David Dong-Won Kim
KordaMentha Pte Ltd
16 Collyer Quay #30-01
Singapore 049318
HYPERGANIC PTE: Creditors' Meetings Set for Jan. 22
---------------------------------------------------
Hyperganic Pte Ltd will hold a meeting for its creditors on Jan.
22, 2025, at 10:30 a.m., via teleconference.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to confirm the member’s nomination of Cameron Lindsay
Duncan
and David Dong-Won Kim care of KordaMentha as joint and
several Liquidators of the Company for the purpose of such
winding up and that their remuneration be based on their
normal scale rates and be paid out of the Company’s
assets;
c. to appoint a Committee of Inspection of not more than five
members, if thought fit;
d. to resolve that the Liquidators be at liberty to open,
maintain and operate any bank account or an account for
monies received by them as Liquidators of the Company, with
such bank as the Liquidators deem fit;
e. to resolve that the Liquidators be authorised to exercise any
of the powers provided by Section 144(1)(b), (c), (d), (e)
and (f) of the Insolvency, Restructuring and Dissolution Act
2018; and
f. Any other business.
MAXIMA LOGISTICS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Dec. 20, 2024, to
wind up the operations of Maxima Logistics Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
NORTHERN RAY: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on Dec. 13, 2024, to
wind up the operations of Northern Ray Pte. Ltd.
Kataman Metals LLC filed the petition against the company.
The company's liquidators are:
Mr. Paresh Tribhovan Jotangia
Ms. Ho May Kee
Grant Thornton Singapore
8 Marina View
#40-04/05, Asia Square Tower 1
Singapore 018960
THIS IS INTERIOR: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Dec. 20, 2024, to
wind up the operations of This Is Interior Design Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
=================
S R I L A N K A
=================
SRI LANKA: Fitch Assigns 'CCC+' Rating on Senior Unsecured Bonds
----------------------------------------------------------------
Fitch Ratings has assigned a 'CCC+' foreign-currency rating to Sri
Lanka's governance-linked bonds maturing in 2035 and a 'CCC+'
local-currency rating to the US dollar step-up bonds maturing in
2038, which the government can decide to repay in rupees. Fitch
does not rate the macro-linked bonds, which would not be in line
with its sovereign rating criteria.
Key Rating Drivers
The ratings are in line with Sri Lanka's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs).
On December 20, 2024, Fitch upgraded Sri Lanka's Long-Term
Foreign-Currency IDR to 'CCC+', from 'RD' (Restricted Default).
Fitch typically does not assign an Outlook to sovereigns with a
rating of 'CCC+' or below. Fitch also upgraded the Long-Term
Local-Currency IDR to 'CCC+', from 'CCC-', to align with the
Long-Term Foreign-Currency IDR.
The following ESG issues represent Key Rating Drivers for the
bonds.
ESG - Governance: Sri Lanka has an ESG Relevance Score of '5' for
Political Stability and Rights as well as for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight that the World Bank Governance
Indicators (WBGI) have in Fitch's proprietary Sovereign Rating
Model (SRM). Sri Lanka has a medium WBGI ranking in the 38th
percentile, reflecting a recent record of peaceful political
transitions, a moderate level of rights for participation in the
political process, moderate institutional capacity, established
rule of law and a moderate level of corruption.
The ratings on the bonds are sensitive to any changes in the
Long-Term Foreign-Currency IDR, which has the following rating
sensitivities (as per aforementioned rating action commentary).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Public Finances: An increase in government debt/GDP, potentially
reflecting an inability to further raise revenue, resulting in
wider budget deficits.
- External Finances: Inability to rebuild foreign-exchange reserves
that weakens debt repayment capacity.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Public Finances: A sustained decline in the general government
debt/GDP ratio that is underpinned by strong implementation of a
credible medium-term fiscal consolidation strategy, increase in
fiscal revenue and faster economic growth.
Date of Relevant Committee
Dec 18, 2024
ESG Considerations
The ESG profile is in line with that of Sri Lanka.
Entity/Debt Rating
----------- ------
Sri Lanka
senior unsecured LT CCC+ New Rating
Senior Unsecured-
Local currency LT CCC+ New Rating
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
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