/raid1/www/Hosts/bankrupt/TCRAP_Public/250108.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, January 8, 2025, Vol. 28, No. 6
Headlines
A U S T R A L I A
C LIST: Second Creditors' Meeting Set for Jan. 14
FLAT STICK: Second Creditors' Meeting Set for Jan. 15
LAND & HOMES: Second Creditors' Meeting Set for Jan. 15
PROFINISH SERVICES: Second Creditors' Meeting Set for Jan. 15
REX AIRLINES: Desperate Hunt for AUD10MM Before Airline's Collapse
SEER MEDICAL: Placed in Voluntary Administration
TEKT ASSET: Jirsch Sutherland Appointed as Administrators
VIRTICAL: Boss May Have Acted as Shadow Director After Resigning
C H I N A
CHINA HONGQIAO: Fitch Assigns 'BB+' Rating on USD Unsecured Notes
COUNTRY GARDEN: To Focus on Restoring Balance Sheet This Year
GUANGZHOU FC: Denied Permission to Play in 2025
ORIGIN AGRITECH: Li Yang Resigns as COO, Director
I N D I A
ADITHYA GLOBAL: CRISIL Lowers Rating on INR15.25cr Loan to D
ASSAM PETRO-CHEMICALS: ICRA Cuts Rating on INR890.67cr Loan to B+
BOMBAY FANCY: CARE Lowers Rating on INR44.17cr LT Loan to B+
DEEPA DEVELOPERS: ICRA Keeps D Debt Ratings in Not Cooperating
DEFINITION NETWORKS: Voluntary Liquidation Process Case Summary
DEVASHRAY PAPERS: CARE Cuts Rating on INR140cr LT Loan to B
DURGA AUTOMOTIVES: ICRA Keeps D Debt Rating in Not Cooperating
GS AUTO: CARE Moves C Debt Rating to Not Cooperating Category
IL&FS TAMIL: ICRA Hikes Rating on INR814.45cr LT Loan from D
INDIAN CONSTRUCTION: ICRA Keeps B+ Debt Rating in Not Cooperating
MADHABGANJ KARUNAMOYEE: ICRA Keeps B Ratings in Not Cooperating
MAHESH OIL REFINERY: CRISIL Cuts Rating on INR23.5cr Loan to B
MAHESH OIL: CRISIL Lowers Rating on INR24cr Cash Loan to D
MAHESHWARI LOGISTIC: CRISIL Moves B+ Ratings to Not Cooperating
MEDNOMIC HEALTHCARE: CRISIL Moves B Ratings to Not Cooperating
ORISSA CONCRETE: ICRA Keeps D Debt Ratings in Not Cooperating
PARAGON FINANCE: ICRA Assigns B+ Issuer Rating; Watch Developing
PAYMARK PAYMENT: Insolvency Resolution Process Case Summary
PLATINO CLASSIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
PRAPTI FASHIONS: Liquidation Process Case Summary
R. N. RICE: CRISIL Lowers Rating on INR15cr Cash Loan to D
RUCHI GLOBAL: ICRA Keeps D Debt Ratings in Not Cooperating
SAFE PARENTERALS: ICRA Keeps D Debt Ratings to Not Cooperating
SHEBA MARINE: Liquidation Process Case Summary
SLOGAN POLYFILMS: CRISIL Reaffirms B+ Rating on INR70cr Term Loan
SUNFREE PASCHIM: CARE Lowers Rating on INR65cr LT Loan to B+
TALWALKARS BETTER: ICRA Keeps D Debt Rating in Not Cooperating
TANMAY COMPUTER: Voluntary Liquidation Process Case Summary
VADRAJ CEMENT: Nuvoco Vistas Wins Bid to Acquire Company
VISHAL ENTERPRISES: CRISIL Assigns B Rating to INR4.31cr Loans
VIVEK BROTHERS: Insolvency Resolution Process Case Summary
WEBER HYDRAULIC: Voluntary Liquidation Process Case Summary
S I N G A P O R E
ALPHA ASIA: Creditors' Proofs of Debt Due on Feb. 5
ASTON PROPERTIES: Creditors' Proofs of Debt Due on Feb. 7
ATLANTIC ACAPULCO: Creditors' Proofs of Debt Due on Jan. 6
G.K. PTE: Creditors' Proofs of Debt Due on Feb. 6
SINGH MOTORSPORTS: Court Enters Wind-Up Order
S O U T H K O R E A
KDB LIFE: PEF Faces Liquidation as Insurer's Sale Becomes Unlikely
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A U S T R A L I A
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C LIST: Second Creditors' Meeting Set for Jan. 14
-------------------------------------------------
A second meeting of creditors in the proceedings of C List Pty Ltd,
Childsplay Landscape and Design Pty Ltd, and Timberplay Pty Ltd has
been set for Jan. 14, 2025 at 11:00 a.m. at the offices of Hall
Chadwick at Level 40, 2-26 Park Street in Sydney.
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. 13, 2025 at 5:00 p.m.
John Vouris and Richard Albarran of Hall Chadwick were appointed as
administrators of the company on Dec. 2, 2024.
FLAT STICK: Second Creditors' Meeting Set for Jan. 15
-----------------------------------------------------
A second meeting of creditors in the proceedings of Flat Stick
Group Pty Ltd has been set for Jan. 15, 2025 at 10:00 a.m. via
videoconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 14, 2025 at 5:00 p.m.
Roberto Crispino and Richard Albarran of Hall Chadwick were
appointed as administrators of the company on Dec. 4, 2024.
LAND & HOMES: Second Creditors' Meeting Set for Jan. 15
-------------------------------------------------------
A second meeting of creditors in the proceedings of Land & Homes
Investment Pty Ltd and Land & Homes Group Limited has been set for
Jan. 15, 2025 at 10:00 a.m. and 11:00 a.m. respectively, via
electronic means.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 14, 2025 at 4:00 p.m.
Geoffrey Trent Hancock of Hamilton Murphy was appointed as
administrator of the company on Dec. 2, 2024.
PROFINISH SERVICES: Second Creditors' Meeting Set for Jan. 15
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Profinish
Services Pty Ltd and Profinish Fire Protection Pty Ltd has been set
for Jan. 15, 2025 at 11:30 a.m. and 12:00 p.m. respectively, via
teleconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 14, 2025 at 4:00 p.m.
Leon D'Souza and Stephen Dixon of Hamilton Murphy Advisory were
appointed as administrators of the company on Dec. 2, 2024.
REX AIRLINES: Desperate Hunt for AUD10MM Before Airline's Collapse
------------------------------------------------------------------
Sumeyya Ilanbey at The Sydney Morning Herald reports that less than
two months after Regional Express Pty Ltd, trading as Rex Airlines,
told shareholders the company would end the 2023 financial year in
profit, executive chairman Lim Kim Hai desperately began searching
for a financial lifeline.
The airline's cash reserves are "critically low" while domestic
sales are "disappointingly and bewilderingly bad", Lim told fellow
board directors, and sought a AUD10 million cash injection from PAG
- the private equity firm that loaned AUD150 million to Rex in
2021, SMH relates citing documents filed in the New South Wales
Supreme Court as part of the corporate regulator's investigation
into the collapsed business.
The Australian Securities and Investments Commission (ASIC) last
month launched legal action against Rex and its four directors –
including Lim and former Howard minister John Sharp – for
misleading and deceiving investors about its profitability, SMH
recalls. ASIC has alleged the airline misled the market in February
2023 when it claimed it was "optimistic the group would have
positive operating profits for the full year 2023 barring any
further external shocks".
But court documents allege Rex had not prepared a forecast for the
2023 financial year, had recorded an operating loss of AUD30
million in the first half, and knew that it generally generated
lower revenue in the second half.
"On 21 March 2023, Lim received the year-to-date and monthly
profit-and-loss figures for the Rex Group for February 2023, and
Rex was thereby aware that the Rex Group had incurred an operating
loss of approximately AUD46.2 million," ASIC has alleged in
documents filed with the NSW Supreme Court, SMH relays.
"On 14 April 2023, Lim made a request by email to [Lincoln] Pan and
[Sid] Khotkar (copying Mr. Sharp) requesting AUD10 million in
funding from PAG, describing the company's cash reserves as
‘critically low', domestic sales as ‘disappointingly and
bewilderingly bad', the February results as having ‘crashed' and
a lack of recovery in March."
SMH says Lim's email to his fellow directors included a spreadsheet
showing Rex had recorded a before-tax loss of AUD7.2 million in
February and an estimated before-tax loss of AUD2.5 million for
March 2023.
In order for Rex to end the financial year in profit, as it had
advised the market, the airline would need to drastically turn
things around by earning a AUD46.2 million profit in three months.
Instead, 10 days before the financial year ended, Rex issued a
profit warning to flag a AUD35 million operating loss for FY2023.
In early May, Khotkar sent an email to Pan - who were both
appointed by PAG – on Rex's route performance, and observed the
airline's "load factor seems to have dropped more than the
industry" and that April did not seem "to be showing significant
improvement". A high load factor, a key measure of profitability,
indicates an airline has full planes with most seats occupied by
passengers.
Days later, Lim, Mr. Sharp, Khotkar and Pan received Rex's "Weekly
Worm Report", which showed the airline's monthly passenger revenue
in January, February, March and April was down compared with the
previous year.
According to SMH, ASIC has accused Lim of drafting and approving
the statement released to the Australian Securities Exchange on
February 28, 2023, and failing to take steps to ensure the market
had accurate information. While Mr. Sharp, Pan and Khotkar are
alleged to have become aware of the company's finances from April
14 - when Lim sought the AUD10 million cash injection - but failed
to inform investors, in a breach of their director duties.
Rex entered voluntary administration in July after its failed
attempt to run flights between major capital cities, prompting the
federal government to pour in an AUD80 million lifeline to keep
operating regional routes, despite ASIC chair Joe Longo briefing
Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones about
its investigation.
Rex shares lifted 1¢ to AUD1.51 after the February update and fell
from AUD1.21 to AUD1.06 after the June 20 downgrade. The stock was
trading at 57¢ when it entered into administration.
SMH adds that Mr. Sharp declined to comment while the court case
was under way, but previously said he would be "vigorously"
defending the matter and did not believe he breached regulations. A
spokesman for Khotkar and Pan said the pair would be defending the
allegations.
About Rex Airlines
Regional Express Pty. Ltd., trading as Rex Airlines (and as
Regional Express Airlines on regional routes), is an Australian
airline based in Mascot, New South Wales. It operates scheduled
regional and domestic services. It is Australia's largest regional
airline outside the Qantas group of companies and serves all 6
states across Australia. It is the primary subsidiary of Regional
Express Holdings.
On July 30, 2024, Samuel Freeman, Justin Walsh, and Adam Nikitins
of Ernst & Young Australia (EY Australia) were appointed Joint and
Several Voluntary Administrators by the Rex Group's respective
Boards of Directors. The companies in administration are:
* Regional Express Holdings Limited;
* Regional Express Pty Limited;
* Rex Airlines Pty Ltd;
* Rex Investment Holdings Pty Limited; and
* Air Partners Pty Ltd.
SEER MEDICAL: Placed in Voluntary Administration
------------------------------------------------
Simon Thomsen at Startup Daily reports that Seer Medical has been
placed in voluntary administration amid a product recall and legal
battle with its ousted cofounder.
Lindsay Bainbridge and Andrew Yeo from Pitcher Partners Melbourne
were appointed administrators on January 6 following a
pre-Christmas board meeting where the medtech's directors voted to
hand over the books, Startup Daily relates.
Pitcher Partners will keep the company operating as they prepare it
for sale or restructure.
According to the report, Mr. Bainbridge said the Seer Medical board
placed the company in administration ahead of releasing its next
generation model for EEG and ECG monitoring at home to detect
epilepsy in the hope of finding the right partner to restructure.
"It is early days but we are undertaking a review of the company
with the intention to present the business to market for sale or
restructure via a deed of company arrangement," the report quotes
Mr. Bainbridge as saying.
"This is a good moment to restructure the business in readiness for
the release of Seer's new device. We will be working with the board
and stakeholders to consider options and expect to release an
Information Memorandum for the company by the end of next week."
Dr. Dean Freestone, Professor Mark Cook and George Kenley founded
Seer in 2017. It went on to raise AUD34 million series A in 2021,
backed by Cochlear, multi-family office EWM Group, SG Hiscock and
impact investor Giant Leap.
Within 12 months, the Victorian government's $2 billion investment
fund Breakthrough Victoria (BV), took a $30 million stake in the
form of a convertible note, rather than direct equity, Startup
Daily says. That gave the fund the right to invest in a future
raise at a discount.
It was one of BV's first investments and at the time, the fund said
the deal would allow Seer to nearly double its workforce and
footprint in Victoria, creating 225 jobs by 2028, while expanding
into the US and UK. Seer was named the 2022 Victorian startup of
the year.
But just 12 months on, the company slumped into a rolling crisis,
with Dr Freestone departing as CEO in mid-2023, according to
Startup Daily.
In January last year, he was seeking funding to save the business,
but that deal fell through. Mr. Freestone went on to accuse BV of
blocking alternative investors, a claim they deny, including the
super fund Hostplus.
Mr. Cook, and the rest of the board including Cochlear's Mark
Phelps resigned amid concerns that Seer was on the brink of
administration, Startup Daily relates.
Breakthrough Victoria intervened with $4 million in emergency
capital, and became a shareholder, but nearly a third of the
workforce of around 200 people were made redundant. Mr. Freestone
alleges he was ousted at that point, and four months later, lodged
an unfair dismissal claim currently before the courts.
By March last year, Breakthrough Victoria was under pressure for
its performance amid calls for the fund to be abolished.
Defending its investment in Seer at the time, the fund said: "this
investment structure affords BV downside protection and additional
rights to ensure impact for Victorian taxpayers from the
investment.
Startup Daily relates that then-CEO Grant Dooley, who subsequently
resigned, said: "BV continues to believe in Seer and its
technology. It's a world leader in neurological monitoring for
epilepsy. They're on target to do $11 million in revenue this
financial year, and as of September 2023 they had over 15,000
patients in Australia."
The fund went on to explain that "a slower-than-expected expansion
into the US has put pressure on Seer's balance sheet, Startup Daily
relays. As such, BV is working with Seer on a number of measures
designed to help them through this period. This includes some
significant reductions in overheads, which has resulted in job
losses."
TEKT ASSET: Jirsch Sutherland Appointed as Administrators
---------------------------------------------------------
Bradd William Morelli and Stewart William Free of Jirsch Sutherland
on Jan. 6, 2025, were appointed as Administrators of Tekt Asset
Holdings Pty Ltd.
The Administrators may be reached at:
Jirsch Sutherland
Level 1, 14 Watt Street
Newcastle, NSW 2300
VIRTICAL: Boss May Have Acted as Shadow Director After Resigning
----------------------------------------------------------------
The Australian Financial Review reports that the former boss of
collapsed pub group Virtical has been accused of acting as a shadow
director, controlling bank accounts and operations for a flagship
pub and luxury resort project despite resigning and installing a
new director less than a month before the business went under.
John Palasty, also known as John Palasti, resigned as a director of
Eden Australasia and The Sapphire Australasia on September 5, 2024.
The two companies owned and operated the 120-year-old Hotel
Australasia and a $100 million luxury resort project, dubbed the
Sapphire of Eden, both in the NSW South Coast town of Eden.
As reported in the Troubled Company Reporter-Asia Pacific in late
October 2024, prominent Melbourne pub and hotel investor Mazen
Tabet has taken advantage of the collapse of once high-flying
hospitality group Virtical after buying the Adelphi Hotel on
Flinders Lane for just AUD19 million -- a 24 per cent discount on
its AUD25 million sale 18 months ago.
The sale comes less than a week since Nic Natkunarajah from
insolvency firm Roger and Carson was appointed liquidator of
Virtical on behalf of creditors of the group, and a day after The
Australian Financial Review revealed the company owed at least
AUD50 million for fake GST refunds.
=========
C H I N A
=========
CHINA HONGQIAO: Fitch Assigns 'BB+' Rating on USD Unsecured Notes
-----------------------------------------------------------------
Fitch Ratings has assigned China Hongqiao Group Limited's
(Hongqiao, BB+/Stable) proposed US dollar senior unsecured notes a
rating of 'BB+'.
The proposed notes will be issued by Hongqiao and are rated at the
same level as Hongqiao's senior unsecured debt because they
constitute its direct, unconditional, unsubordinated and unsecured
obligations and rank pari passu with all its other unsecured and
unsubordinated obligations. The bond proceeds will be used for
refinancing Hongqiao's existing offshore debt.
Hongqiao's rating reflects its position as one of the world's
largest aluminium smelters, with a competitive cost position that
is supported by high raw-material self-sufficiency and sustained
low leverage. The Stable Outlook reflects its expectation that
Hongqiao will maintain its strong business and financial profile.
Key Rating Drivers
Strong Performance, Low Leverage: Fitch expects Hongqiao's EBITDA
to reach CNY38 billion in 2024 amid strong alumina and aluminium
prices and moderating raw-material costs. Fitch forecasts EBITDA
net leverage to stay at around 1x in 2024-2026 as a result of
decent cash generation during the period. Hongqiao's EBITDA margin
reached 25% in 1H24, a significant improvement from an average of
18% in 2022-2023.
Large Scale, High Self-Sufficiency: Hongqiao's large operating
scale and vertical integration support its market-leading
profitability. It is the world's second-largest primary aluminium
producer with around 6.5 million tonnes of capacity. Hongqiao
accounted for around 15% and 9% of domestic and global primary
aluminium production, respectively, in 2023. In addition, it has
high self-sufficiency in bauxite, alumina and electricity, allowing
it to withstand raw-material price fluctuations.
Reliance on Short-Term Debt: Hongqiao has high reliance on
short-term financing with 67% of total debt in short-term
borrowings at end-June 2024. However, this is mitigated by the
company's sustained low leverage and strong free cash flow (FCF)
generation backed by high profitability. In addition, a large
portion of its short-term debt is retained as cash, while the
balance is used to fund its working capital, which is short term in
nature.
Access to Long-Term Funding: Hongqiao also continues to selectively
issue longer-term debt, particularly for capex. Access to
longer-term financing is enhanced by its solid banking
relationships, with support from minority shareholder CITIC Group.
Management indicated that its preference for short-term debt is
driven by the cost advantage rather than the unavailability of
longer-term funding. Fitch may take a more negative view of
Hongqiao's high reliance on short-term debt if there is evidence
that its ability to issue longer-term debt is weakened or if its
FCF generation falls.
Limited Diversification Mitigated: Hongqiao has limited product,
geographical and customer diversification. However, its
geographical concentration has improved after the relocation of 30%
of its capacity to Yunnan province, with another 15% in the
medium-term pipeline. Over 70% of 2023 revenue came from primary
aluminium, with its five-largest customers and largest customer
accounting for 45% and 34% of revenue, respectively. Nevertheless,
the high product and customer concentration is mitigated by the
product's commoditised nature and diverse, high-quality
end-demand.
Key-Man Risk Moderated: CITIC Group had a 9% stake in Hongqiao at
end-June 2024, declining from 12% at end-2023, but is still
represented by two board members. Fitch believes CITIC Group will
continue to be actively involved in Hongqiao's funding decisions
and banking and capital-market relationships, which reduces key man
risk arising from the 64% share ownership by Hongqiao's chairman
and family.
Derivation Summary
Hongqiao is comparable with its Fitch-rated peers Alcoa Corporation
(BB+/Stable) and Aluminum Corporation of China Limited (Chalco,
A-/Negative).
Hongqiao has a less sophisticated product range than Alcoa, but it
maintains a higher EBITDA margin due to the scale and efficiency of
its core aluminium smelting business. Hongqiao's EBITDA net
leverage is lower than Alcoa's, while Alcoa has better operational
and end-market diversity.
Hongqiao and Chalco have similar aluminium revenue scale. Chalco
has lower profitability and higher leverage, but has better
financial flexibility with higher interest coverage and better
liquidity. Chalco's rating also reflects its government-related
entity status.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Total aluminium capacity to remain at 6.5 million tonnes with an
over 90% utilisation rate
- EBITDA margin to moderate from 25.5% in 2024 to 21.9% in 2027
- Capex to average around 6.3% of revenue between 2024 and 2027
- Dividend pay-out ratio of around 50% between 2024 and 2027
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net debt/EBITDA remaining above 2.0x
- Material increase in reliance on short-term financing
- Sustained negative FCF generation
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Meaningful improvement in maturity profile and funding sources
Issuer Profile
Hongqiao, the world's second-largest primary aluminium producer,
currently has around 6.5 million tonnes of smelting capacity,
behind Chalco's 7.4 million tonnes, accounting for around 9% of
global production.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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
----------- ------
China Hongqiao
Group Limited
senior unsecured LT BB+ New Rating
COUNTRY GARDEN: To Focus on Restoring Balance Sheet This Year
-------------------------------------------------------------
AAStocks Financial News reports that the chairman of Country Garden
said at a monthly management meeting that the total delivery tasks
for this year have significantly decreased compared to last year,
Chinese media reported.
AAStocks relates that the group's work for the new year will
revolve around two key tasks, ensuring home delivery and restoring
the balance sheet, Yang noted. To accomplish these two tasks, the
group will further optimize resource allocation, strengthen
collaboration between departments, ensure orderly progress of all
tasks, and encourage all employees to give their best effort, so
that a solid foundation can be laid for its long-term development.
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
GUANGZHOU FC: Denied Permission to Play in 2025
-----------------------------------------------
Sportstar reports that the former Asian champion Guangzhou Football
Club will not play professionally in 2025 after the Chinese
Football Association did not grant the eight-time Chinese Super
League (CSL) winner permission to play in the coming campaign due
to the club's financial issues.
Guangzhou, once the dominant force in the country and the standard
bearer of a decade of heavy spending in Chinese football, is one of
three teams, including CSL outfit Cangzhou Mighty Lions and
third-tier Hunan Xiangtao, ruled ineligible.
"The club has made a lot of efforts to gain admission to the
professional league in the new season, however, due to the heavy
historical debt, the funds raised are not enough," Guangzhou said
in a statement, Sportstar relays.
"We regret that we failed to make it, hence our sincerest apologies
to fans and the people from all walks of life that support the
club. At the same time, thank you for your understanding and
tolerance. We will not change our original intention and do our
best to deal with the aftermath and support the development of
Chinese football and Guangdong and Guangzhou football."
According to Sportstar, the decision to exclude Guangzhou brings a
final curtain down on an era of lavish spending within Chinese
football.
Sportstar notes that property developers China Evergrande purchased
the club after relegation to China's second tier in 2010 and
invested heavily, paying inflated transfer fees and high wages to
attract the country's leading players and high-profile overseas
talent.
That move sparked a major boom in the CSL as private business
sought to deliver president Xi Jinping's dream to turn the nation
into a regional power with the goal of qualifying for, hosting and,
eventually, winning the World Cup.
As a sign of the club's ambition, Guangzhou hired World Cup-winning
coach Marcello Lippi in 2012 and the Italian led his team to the
2013 Asian Champions League title.
Sportstar relates that two years later another World Cup winner,
Brazil's Luiz Felipe Scolari, repeated the feat while continuing
Guangzhou's domestic dominance as the club went on to win eight CSL
titles in nine seasons from 2011 to 2019.
China Evergrande's financial issues, however, saw funding withdrawn
from the club in 2021 and, after key players and coaching staff
departed, Guangzhou was relegated to China League One at the end of
the following campaign, Sportstar states.
Guangzhou finished 12th in the first season back in China League
One in 2023 before finishing third in the 2024 season, missing out
on promotion behind Yunnan Yukun and Dalian Yingbo, adds
Sportstar.
ORIGIN AGRITECH: Li Yang Resigns as COO, Director
-------------------------------------------------
Origin Agritech Limited disclosed in a Form 6-K Report filed with
the U.S. Securities and Exchange Commission that Li Yang, the Chief
Operations Officer and one of the company's directors, resigned, as
of December 17, 2024 to pursue other business and personal
endeavors.
There were no disagreements between Mr. Li and the Company related
to the Company's operations, policies or practices.
About Origin Agritech
Headquartered in Beijing, China, Origin Agritech Limited, along
with its subsidiaries, is focused on agricultural biotechnology,
operating in the PRC. The Company's seed research and development
activities specialize in crop seed breeding and genetic
improvement. Origin believes that it has built a solid capacity for
seed breeding technologies, including marker-assisted breeding and
doubled haploids technologies, which it believes, along with its
rich germplasm resources, will allow it to become a significant
seed technology company in China.
Lakewood, Colorado-bsaed BF Borgers CPA PC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated Feb. 15, 2024, citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
On May 7, 2024, Origin Agritech Limited had terminated B.F. Borgers
CPA PC as the registered independent accounting firm for the
financial statements of the Company, due to the Securities and
Exchange Commission enforcement action against that firm.
The Company has appointed Enrome LLP, 143 Cecil St, #19-03/04, GB
Building, Singapore 069542, a PCAOB qualified firm, as its
registered independent accounting firm, effective May 30, 2024, in
replacement of B.F. Borgers CPA PC, to re-audit the Company's
consolidated financial statements as of and for the fiscal years
ended September 30, 2022 and 2023 and to audit the consolidated
financial statements as of and for the fiscal year ending September
30, 2024. The appointment of Enrome has been approved by the audit
committee of the Board of Directors and the Board.
=========
I N D I A
=========
ADITHYA GLOBAL: CRISIL Lowers Rating on INR15.25cr Loan to D
------------------------------------------------------------
CRISIL Ratings has revised the ratings on certain bank facilities
of Adithya Global Health care Private Limited (AGHPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.25 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Long Term Loan 10 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 15.25 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with AGHPL and
has sought information via letters and emails dated February 15,
2024, and January 2, 2025, among others, apart from telephonic
communication. However, the issue remains 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 has been
arrived at without any management interaction and is based on the
best available, 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 AGHPL, which restricts the
ability to take a forward-looking view on the credit quality of the
entity. CRISIL Ratings believes the rating action on AGHPL is
consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, rating on bank facilities
of AGHPL have been downgraded to 'CRISIL D issuer not cooperating'
from 'CRISIL B/Stable issuer not cooperating', owing to delay in
debt servicing and classification of the account as a
non-performing asset.
Incorporated in 2015, AGHPL is setting up a 150-bed hospital at
Visakhapatnam, Andhra Pradesh. Mr. Suresh Naidu is the promoter.
ASSAM PETRO-CHEMICALS: ICRA Cuts Rating on INR890.67cr Loan to B+
-----------------------------------------------------------------
ICRA has downgraded and moved the ratings of Assam Petro-Chemicals
Limited (APL) to the 'Issuer Not Cooperating' category due to lack
of adequate information. The rating is denoted as
"[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 890.67 [ICRA]B+(Stable); ISSUER NOT
Fund Based COOPERATING; Downgraded from
Term Loan [ICRA]BB+ (Negative); Outlook
revised to Stable from Negative
and rating moved to the
'Issuer Not Cooperating' Category
As part of its process and in accordance with its rating agreement
with APCL, ICRA has been trying to seek information from the entity
so as to monitor its performance, but despite repeated requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, a rating view has been taken on the entity based on
the best available information.
Assam Petro-Chemicals Limited (APL), promoted by the Government of
Assam (GoA) and the Assam Industrial Development Corporation
(AIDC), was incorporated as a public limited company in 1971 to
produce methanol and formaldehyde (formalin). The commercial
production of the methanol unit had started in 1976 and it was the
first company in India to manufacture methanol using natural gas.
Based in Namrup in Assam, APL manufactures methanol and
formaldehyde (formalin) which is widely used in the plywood and
agro-based industries. At present, the company has a methanol
manufacturing capacity of 100 TPD (33,000 MTPA) and a formalin
manufacturing capacity of 125 TPD (41,250 MTPA). APL has recently
set up a 500-tonne-per-day (TPD) methanol manufacturing plant based
on natural gas as feedstock at Namrup, along with a downstream
200-TPD formalin plant at Boitamari (near Bongaigaon), in West
Assam. The methanol and formalin project has commissioned recently
in March 2023.
BOMBAY FANCY: CARE Lowers Rating on INR44.17cr LT Loan to B+
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Bombay Fancy Store (BFS), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 44.17 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING, Downgraded from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Long Term/ 12.83 CARE B+; Stable/CARE A4; ISSUER
Short Term NOT COOPERATING; LT rating
Bank Facilities downgraded from CARE BB-;
Stable and ST rating reaffirmed
and moved to ISSUER NOT
COOPERATING category
Short Term 20.00 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. (CARE Ratings) has been seeking information from
BFS to monitor the rating(s) vide e-mail communications dated
December 17, 2024; December 23, 2024, and December 24, 2024, among
others and numerous phone calls. However, despite repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE Ratings 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. The rating on Bombay
Fancy Store bank facilities will now be denoted as CARE B+;
Stable/CARE A4; ISSUER NOT COOPERATING.
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 have been revised on account of the non-availability of
requisite information due to non-cooperation by BFS with CARE
Ratings Ltd.'s efforts to undertake a review of the ratings
outstanding. CARE Ratings Ltd. views information availability risk
as a key factor in its assessment of credit risk. The ratings is
primarily constrained on account of modest and fluctuating scale of
operations coupled with small networth base, low profitability
margins and Leveraged capital structure and weak coverage
indicators. Further, the ratings are also constrained by highly
fragmented and competitive nature of industry, foreign exchange
fluctuation risk and constitution of the entity being a partnership
firm. The credit profile derives comfort from experienced partners,
and moderate operating cycle.
Analytical approach: Standalone
Outlook: Stable
Detailed description of key rating drivers: At the time of last
rating on February 6, 2024, the following were the ratings
weaknesses and strengths.
Key weaknesses
* Modest and fluctuating scale of operations with small net worth
base: BFS scale of operations continues to remain modest as marked
by total operating income (TOI) and gross cash accruals (GCA) of
INR215.10 crore and INR2.34 crore respectively, during FY23 (FY
refers to the period April 1 to March 31) as against INR278.69
crore and INR6.29 crore respectively, during FY22 on account of on
account of lower intake from existing customers. Nevertheless,
the scale remains modest; it limits the firm's financial
flexibility in times of stress and deprives it of scale benefits.
Moreover, BFS's scale of operations remained fluctuating for the
period FY21-FY23 (refers to the period April 1 to March 31). TOI
registered improvement in FY22 over FY21 and thereafter declined in
FY23 on account lower quantity sold to the existing customers along
with lower sales realization during the period. Further, the firm
net worth base also stood small at 19.40x as on March 31, 2023.
Furthermore, the firm has achieved total operating income of
~INR178 crore during 9MFY24 and is expected to book total operating
income of around INR220.00 crores during FY24.
* Low profitability margins: The firm's profitability margins
continue to remain low during the past three years (FY19- FY21) on
account of trading nature of the business and intense market
competition given the highly competitive nature of the industry.
Furthermore, the margins of BFS are lower compared with other
traders as it derives a substantial amount of revenue from low
margin products. The PBILDT margin plummet to 1.70% in FY23 as
against 4.23% in FY22 on the back of on the back of proportionate
elevation in the cost of traded goods. Similarly, PAT margin in
line with PBILDT margin also plummet to 0.99% in FY23 as against
2.22% in FY22. Going forward, the stabilization in the cost of
traded goods coupled with uptick in demand for the products will
lead to improvement in profitability margins in the coming year.
* Leveraged capital structure and weak coverage indicators: The
capital structure of the firm stood leveraged as on the past three
balance sheet dates ending March 31, '21- '23 on account of high
debt levels against the small net worth base. The Overall gearing
ratio stood at 3.84x as on March 31, 2023, showing deterioration
from 2.85x as on March 31, 2022 on account of higher utilization of
working capital borrowings as on balance sheet date. The overall
gearing is expected to remain in the range of 3.00x-4.00 x over the
medium term. Further, on account of low profitability margins of
the firm, the debt coverage indicators of the firm stood weak as
marked by interest coverage and total debt to GCA which stood at
1.11x and 31.86x respectively, during FY23 as against 3.18x and
8.25x respectively, during FY22. The deterioration in debt coverage
indicators is on the back of decline in PBILDT margin, consequently
leading to lower gross
cash accruals.
* Highly fragmented nature of industry characterized by intense
competition: The spectrum of the trading industry in which the firm
operates is highly fragmented and competitive marked by the
presence of numerous players in India. Hence, the players in the
industry do not have any pricing power and are exposed to
competition which induced pressures on profitability. Also, due to
low entry barriers in the industry and low value-added nature of
products, high competition is the inherent risk associated with the
trading nature of business operations which further impacts the
profitability margins.
* Foreign exchange fluctuation risk: BFS imported ~70 % of its
procurement of traded goods from Taiwan, USA, and Republic of Korea
(South Korea) while the traded goods are completely sold in the
domestic market. With initial cash outlay for procurement in
foreign currency and significant chunk of sales realization in
domestic currency, the firm is exposed to the fluctuation in
exchange rates. Moreover, the firm does not have any defined policy
for hedging which exposes it to risks of any sharp depreciation in
the value of rupee against the foreign currency which may impact
its profitability margins. In FY23, the firm has reported a foreign
exchange gain of INR0.01 Cr in FY23.
* Constitution of the entity being a partnership firm: BFS
constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners. Moreover, the partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision for the lenders.
Key strengths
* Experienced partners: BFS is a family run business established in
the year 1988. Mr Satish Kumar and Suresh Kumar are two partners
and they collectively look after the overall operations of the
firm. Mr Satish Kumar is a graduate and looks after the
administration department along day-to-day operations of the firm.
Mr Suresh Kumar looks after the Purchase department, imports and
export department and also manages the overall operations of the
firm. The firm is having a considerable track record in this
business which has resulted in long term relationships with both
suppliers and customers.
* Moderate operating cycle: The operating cycle of the firm stood
moderate around 52 days for FY23. BFS is required to maintain
adequate inventory of traded products to cater the immediate demand
of its customers, resulting in an average inventory holding period
of around 81 days for FY23. Further, being in highly competitive
nature of industry, the firm normally extends credit period of
around two months to its customers. On the contrary, the firm has
high payable period due to high proportion of LC-backed creditors
since the firm procures through imports backed by LC (normally up
to 90 days). The average utilization of working capital limits
remained ~80-90%% utilized for the past 12 months ended December
2023.
Liquidity: Stretched
The liquidity position of the firm remained stretched characterized
by high average utilization of working capital limits of around
80%-90% for the past 12 month's period ending December 2023.
Further, the firm has low free cash & bank balances which stood at
INR0.08 crore as on March 31st, 2023. However, the firm has
moderate accruals vis-à-vis repayment obligations. The
firm has reported net cash accruals (NCA) to the extent of INR2.34
crore during FY23 and is expected to generate envisage NCA of
INR4.05 crore for FY24 against repayment obligations of ~INR1.35
crore in same year.
M/s. Bombay Fancy Store (BFS) is a partnership firm established by
Mr. Suresh Kumar and Mr. Satish Kumar in the year 1988. BFS is one
of the leading Trader of various Polymers including HDPE, LLDPE,
LDPE, PP ,PPCP, PVC, EVA, PC, ABS. The firm caters to a large
customer base of around 300+ customers. based at Delhi, U.P,
Haryana, Rajasthan, Punjab, Himachal Pradesh and other parts of
North and Central India. BFS is also operating as DCA i.e. Del
Credere Associate for M/s Indian Oil Corporation Ltd (IOCL) For
selling their HDPE, LLDPE , PP & PPCP products.
DEEPA DEVELOPERS: ICRA Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Deepa Developers in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 9.00 [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 Deepa Developers, 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.
Promoted by Mr. Ramesh Kumar, Deepa Developers is a partnership
firm with Mrs. Urmila Ramesh and Mrs. Deepa Sampath Bannan as his
co-partners. Initially, Deepa Developers was engaged in development
of residential and commercial complexes in Mangalore region; and
has in the past, developed several properties under its group
companies. However, the firm sold most of its properties and is
presently engaged in managing Hotel Deepa Comforts (the Hotel) in
Mangalore. During 2008-09, Deepa Developers constructed and
developed a commercial complex - "Deepa Plaza" which houses Deepa
Comforts. Apart from the Hotel, Deepa Plaza also houses several
shops which have been completely sold post construction of the
property.
Hotel Deepa Comforts is located at M.G.Road in Mangalore at the
centre of the city and very close to PVS Circle which is the main
tourist/transport junction in Mangalore. Hotel Deepa Comforts is a
luxury business hotel offering lodging, food and beverages,
banquets and beauty care facilities. It is a 10 storey building
with 82 rooms classified under three categories viz 'Deluxe' – 70
rooms, 'Premium' – 6 rooms and 'Suite' – 6 rooms. The Hotel has
4 enclosed banquet halls and 1 open air terrace for meetings,
conferences, events and parties. Capacity of banquet halls is in
the range of 600 to 1000 people. The Hotel has three restaurants -
(one each under vegetarian, non-vegetarian and fine dining
categories) catering to the Hotel's guests as well as other
visitors in the complex.
DEFINITION NETWORKS: Voluntary Liquidation Process Case Summary
---------------------------------------------------------------
Debtor: Definition Networks (India) Private Limited
FL No. 11, Madhav Residency
Gaikwad Nagar Aundh
Pune, Maharashtra, India, 411007
Liquidation Commencement Date: December 16, 2024
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: Abhijit Jagtap
B 306 Ganesh Nabhangan Society
Raikar Nagar, Lane No 20B
Dhayari Phata
Opposite Murli Veg Hotel
Pune, Maharashtra, 411041
Email: csabhi.jagtap@gmail.com
Last date for
submission of claims: January 15, 2025
DEVASHRAY PAPERS: CARE Cuts Rating on INR140cr LT Loan to B
-----------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Devashray Papers (India) LLP (DPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 140.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Downgraded from
CARE BB-; Stable and moved to
ISSUER NOT COOPERATING category
Long Term/ 16.00 CARE B; Stable/CARE A4; ISSUER
Short Term NOT COOPERATING; LT rating
Bank Facilities downgraded from CARE BB-;
Stable and ST rating
reaffirmed and moved to ISSUER
NOT COOPERATING category
Short Term 34.00 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING
Category
Rationale and key rating drivers
CARE Ratings Limited (Care Ratings) has been seeking information
from DPL to monitor the ratings through email communications on
November 7, 2024, November 4, 2024, October 28, 2024, October 22,
2024, October 15, 2024, October 8, 2024, among others, and numerous
phone calls. However, despite repeated requests, the firm has not
provided the requisite information needed to monitor the ratings.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the ratings based on the best available information,
which, however, in CARE Ratings Ltd.'s opinion, is not sufficient
to arrive at a fair rating. Further, DPL has not paid the
surveillance fees for the rating exercise as agreed in its Rating
Agreement.
The ratings on DPL's bank facilities will now be denoted as CARE B;
Stable/CARE A4; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders, and the public
at large) are therefore requested to exercise caution while using
the above ratings.
The ratings assigned to the bank facilities of DPL have been
revised due to the non-availability of adequate information for
carrying out the review of the ratings. The ratings remain
constrained by the vulnerability of profit margins to volatility in
raw material prices and forex fluctuation risk. The ratings are
also constrained by DPL's constitution as a partnership entity and
its presence in a highly competitive and fragmented industry and
nascent stages of operations. However, the ratings derive strength
from the firm's experienced and resourceful promoters.
Analytical approach: Standalone
Outlook: Stable
Stable outlook reflects CARE Ratings' expectations that the firm
will continue to benefit from the experience of its partners in
industry and sustain its moderate financial risk profile in near to
medium term.
Detailed description of the key rating drivers
At the time of last rating on December 29, 2023, the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):
Key weaknesses
* Stabilisation risk associated with recently implemented
debt-funded capex: DPL has implemented a greenfield project to set
up a manufacturing unit for specialty papers and writing and
printing papers, with an installed capacity of 300 MT per day. The
firm plans to focus on manufacturing high-grade specialty papers
used in the laminate industry, pharma industry, and retail
business. The firm achieved a TOI of INR 30.49 crore during FY24.
The firm's clientele includes reputed players such as Navneet,
Camlin, Gopi, and Gala.
* Vulnerability of margins to volatility in raw material prices
along-with forex fluctuation risk: Most manufacturers of decorative
laminates in India use imported raw materials, which results in a
high cost of decorative laminates. The raw materials used for
specialty paper are pulp (from wood chips, recycled paper, wood
pulp, and cotton fibre), which is fed into the paper-making
machine. The prices of pulp are volatile, exposing the firm to
fluctuations in margins. However, the firm usually passes on the
increase in the price of imported raw materials to its customers.
Presently, the firm does not have any hedging policy in place;
however, the firm is planning to implement a hedging policy in the
future. The firm procures raw materials mainly from Indonesia,
Brazil, the USA, etc.
* Constitution as a partnership entity: Being a partnership firm,
DPL is exposed to the inherent risk of partners' capital being
withdrawn at time of personal contingency, and firm being dissolved
upon the death/retirement/insolvency of the partners.
* Presence in highly competitive and fragmented industry: The
Indian paper and paperboard industry is highly fragmented, with
stiff competition from a large number of organised as well as
unorganised players. This limits the pricing power of manufacturers
in terms of flexibility to pass on raw material price fluctuations
to their customers.
Key strengths
* Experienced and resourceful partners: DPL is promoted by
Naranbhai Desai, Vinod Jaiswal, and Hasmukhbhai Patel, and is
presently owned by Naranbhai Desai (majority stake of 90%). He has
been involved in the paper industry for more than two decades and
thus has a long-standing relationship with suppliers, distributors,
and clients in the industry. Further, the partners are resourceful
and have infused around INR75 crore into the firm for the
implementation of the project. During FY24, the partners further
infused nearly INR10 crore in the form of unsecured loans to
support the operations of the firm, given its nascent stage of
operations.
Gujarat-based DPL was incorporated on September 24, 2018, for the
manufacturing of speciality papers, writing and printing papers.
The firm has implemented a greenfield project for manufacturing of
different varieties of speciality papers, writing and printing
papers with a capacity of 90000 MTPA as on October 30, 2023. The
firm commenced commercial operations on September 4, 2023.
DURGA AUTOMOTIVES: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Durga Automotives Pvt Ltd in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 12.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Durga Automotives 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.
Durga Automotives Pvt Ltd was incorporated in 1998. It is an
authorised dealer of HMIL for sales of passenger cars and an
authorised dealer of Piaggio for sales of commercial vehicles in
Siliguri, West Bengal. Apart from vehicle sales, DAPL is also
involved in sales of spare parts and accessories and providing
after sales services. DAPL started its operations with a single
showroom in Siliguri and has gradually expanded its operations.
GS AUTO: CARE Moves C Debt Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has migrated the ratings on certain bank facilities of
GS Auto International Limited (GSAIL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 39.47 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Short Term 5.50 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; Rating moved to
ISSUER NOT COOPERATING category
Rationale and key rating drivers
CARE Ratings has been seeking information from GSAIL to monitor the
rating(s) vide e-mail communications dated December 30, 2024,
December 29, 2024, December 28, 2024, December 27, 2024, etc.,
among others and numerous phone calls. However, despite repeated
requests, GSAIL has not provided requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE Ratings has reviewed the ratings based on best available
information which however, in CARE Ratings' opinion is not
sufficient to arrive at a fair rating. The rating on bank
facilities of GSAIL will now be denoted as 'CARE C; Stable/ CARE
A4; ISSUER NOT COOPERATING'.
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 continue to factor in delays and defaults in the
guaranteed debt for the group entities G.S Consumer Products
Private Limited (GSCPPL) and G.S Autocomp Private Limited (GSAPL)
and subsequent initiation of recovery proceedings by the lenders
by issuing a notice u/s 13(4) of The Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI) being guarantor for the bank
facilities of GSCPPL and GSAPL. Further, the ratings continue to be
constrained by GSAIL's modest scale of operations, weak financial
risk profile and elongated operating cycle. Further, the ratings
are also constrained by risk associated with raw material price
volatility risk, cyclical nature of the industry and its presence
in a highly competitive auto component industry severely impacted
by the slowdown. However, the ratings continue to derive comfort
from experienced promoters coupled with long track record of
operations and association with reputed customer base.
Analytical approach: Standalone
Outlook: Stable
CARE believes, outlook will remain stable on account of experience
of promoters in auto industry.
Detailed description of key rating drivers:
At the time of last rating on December 26, 2023, following were the
rating strengths and weaknesses (updated based on limited
information available from stock exchange).
Key weaknesses
* Delays and defaults for guaranteed debt and subsequent initiation
of SARFAESI proceedings by lenders: GS Auto International Limited
has extended corporate guarantee to the tune of INR5.08 crore for
working capital limits of its group concerns, G.S Consumer Products
Private Limited and G.S Autocomp Private Limited which are
classified Nonperforming assets (NPA) by its lenders. The bank has
initiated SARFAESI against the group companies GS Consumer Products
Private Limited and GS Autocomp Private Limited. The total
outstanding amount including interest is INR0.65 crores and INR5.55
crores respectively as on March 31, 2023. Further, by factoring of
the outstanding debt of the said group entities, debt service
metrics of the company is expected to be weak over the medium term.
The bank is under process to liquidate one of the mortgaged
collaterals to set off the dues. The said liquidation of collateral
will result in partial setting of outstanding dues and balance is
expected to paid off by promoters of group entities using personal
funds.
* Modest scale of operations: GSAIL's scale of operations improved
by 16% y-o-y and stood at INR150.70 crores in FY24 (refers to the
period from April 1, 2023 to March 31, 2024) (PY: INR129.59 crore).
The same, however, stood modest. The modest scale of operation
limits the company's financial flexibility in times of stress.
GSAIL has achieved total operating income of INR71.45 crores during
H1FY25 (refers to the period from April 1, 2024 to September 30,
2024). Further, the company turned profitable during FY24 with
PBILDT margin of 6.15% and PAT margin of 0.46%.
* Weak financial risk profile: As on March 31, 2024, the debt
profile of the company consists of term loan of INR16.47 crores,
unsecured loan of INR2.03 crores and working capital borrowings of
INR15.33 crores against the tangible net worth base of INR21.79
crore. Further, the company has extended corporate guarantee for
its group concerns which stood at INR6.19 crores as on March 31,
2024. The capital structure as marked by overall gearing of the
company improved to 1.56x as on March 31, 2024 against previous
year ratio of 1.74x. Further, the debt coverage indicators of the
company stood modest as marked by interest coverage ratio of 1.94x
and total debt to PBILDT ratio of 3.67x in FY24 against previous
year ratio of 0.78x and 9.58x respectively.
* Elongated operating cycle: The operations of the company stood
elongated marked by operating cycle of 76 days for FY24 (PY: 89
days). Owing to large product portfolio (different type of design,
sizes etc.), the company is required to maintain adequate inventory
at each processing stage for smooth running of its production
processes and to ensure prompt delivery to its customers resulting
in an average inventory holding period of around 78 days in FY24.
The company has to offer liberal credit power resulting in an
average collection period of 37 days in FY24. The company receives
an average credit period of around 1-2 months from its suppliers
resulting in average creditor's period of 39 days in FY24.
* Raw material price volatility risk: The company is exposed to the
raw material price volatility risk due to the volatility
experienced in the prices of steel and allied products as their
prices fluctuates frequently due to demand supply gap. GSAIL
procure materials such as mild steel, EN steel, aluminium scrap,
copper scrap, etc. constitute a major component of the raw material
i.e., around 50% of the total cost of production for the last 3
years (FY22-FY24), hence any volatility in their prices of raw
materials has a direct impact on the profitability margins of the
company.
* Cyclical nature of industry: GSAIL fortunes are linked to those
of the automobile industry, which is cyclical in nature. The demand
for automobiles has a significant impact on the demand and prices
of the products manufactured by the company. A fall in the demand
and/or prices would adversely impact the financial performance of
the company.
* Presence in a highly competitive auto component industry: GSAIL
operates in a highly competitive industry wherein there is presence
of numerous players in the unorganized and organized
sectors. Furthermore, the auto component industry is largely
unorganized and constitute of around 45-50% of the overall industry
size. The unorganized segment primarily caters to the replacement
market and to tier II and III suppliers. The organized segment
primarily caters to the OEM segment.
Key strengths
* Experienced promoters coupled with long track record of
operations: The operations of GSAIL are currently being managed by
Mr. Jasbir Singh Ryait, Mr. Surinder Singh, Ms Amarjit Kaur Ryait,
Mrs. Dalvinder Kaur Ryait and Mr. Harkirat Singh Ryait. Mr. Jasbir
Singh Ryait (Chairman & Managing Director), has done B.E.
(Mechanical Engineering) and holds vast accumulated experience of
nearly three decades in auto industry through his association with
this entity. Mr. Surinder Singh (Managing Director) is a graduate
and holds vast accumulated experience of nearly three
decades in auto industry through his association with this entity.
They are ably supported by other directors of the company in
managing day-to-day operations of the company. GSAIL has a
considerable track record in this business which has resulted in
long term relationships with both suppliers and customers.
* Association with reputed customer base: GS Auto International
Limited has been operational for more than eight decades in the
industry and has been able to establish healthy relationships with
its customers. Association with reputed customers coupled with
repeated orders enhances the image of the company in the market
regarding product quality. Over these years the company has
established business relationship with reputed companies like Tata
Motors Limited (rated 'CARE AA-; Stable/CARE A1+'), Ashok Leyland
Limited (rated CARE AA; Stable; CARE A1+), Maruti Suzuki Limited,
SML Isuzu Limited, VE Commercial Vehicles Limited, etc. and its
vendors.
GS Auto International Limited was initially established as a
proprietorship firm in the year 1938. Later in 1973, it gets
converted into private limited company as "Gurmukh Singh & Sons
Private Limited". Subsequently in 1985, it was reconstituted as a
Public Limited Company and renamed as the present one. The company
is currently being managed by Mr. Jasbir Singh Ryait, Mr. Surinder
Singh, Ms. Amarjit Kaur Ryait, Mrs. Dalvinder Kaur Ryait and Mr.
Harkirat Singh Ryait. The company is engaged in the manufacturing
of automotive suspension and fastening components for Indian and
International utility vehicles, commercial vehicles (LCVs, MCVs and
HCVs), passenger vehicles, multi-axle vehicles, trailers and
special purpose vehicles. The manufacturing facility of the company
is done through two units; Ludhiana (Punjab) and Jamshedpur
(Jharkhand). The company has an installed capacity to manufacture
10,000 MTs per annum for machined and forged categories and 16,500
MTs per annum of casting items. The products are sold under the
brand name "GS International". The company mainly caters to
original equipment manufacturers (OEM's), replacement market and
export ~4% of its products to countries like Brazil, Morocco and
Germany. The company has three associate concerns namely; "G S
Autocomp Private Limited" (incorporated in 2006) engaged in the
manufacturing of auto components, "G.S. Consumer Products Private
Limited" (incorporated in 2006) engaged in the manufacturing of
auto components and "Gurmukh Singh International LLP" (established
in 2015) engaged in the trading of auto components.
IL&FS TAMIL: ICRA Hikes Rating on INR814.45cr LT Loan from D
------------------------------------------------------------
ICRA has downgraded the ratings on certain bank facilities of IL&FS
Tamil Nadu Power Company Limited (ITPCL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 500.00 [ICRA]BB (Stable); upgraded from
debentures [ICRA]D; ISSUER NOT COOPERATING
and removed from Issuer Not
Cooperating category; rating
Withdrawn
Long term- 814.45 [ICRA]BB (Stable); upgraded from
Cash credit- [ICRA]D; ISSUER NOT COOPERATING
Fund based and removed from Issuer Not-
Cooperating category
Long term- 2,468.93 [ICRA]BB (Stable); upgraded from
Term loan- [ICRA]D; ISSUER NOT COOPERATING
Fund based and removed from Issuer Not-
Cooperating category
Rationale
The rating upgrade factors in the implementation of the
restructuring scheme for ITPCL, which has led to a rightsizing of
the debt burden (into sustainable and unsustainable) and favorable
repayment terms of the restructured debt, thereby lowering the
annual debt service burden and supporting the overall liquidity
profile. ICRA notes that of the INR9,587 crore of the company's
overall debt stock as of end-March 2023, 64.66% has been classified
as sustainable debt which has a long residual repayment tenure
extending up to FY2038. The residual debt has been classified as
unsustainable debt, which carries a nominal coupon rate of 0.001%
and scheduled annual amortisation of 0.01%, with the balance amount
to be retired in lumpsum equally in FY2039 and FY2040.
The rating upgrade also factors in the company's predictable
earnings stream over the medium term from the long-term power sales
to TANGEDCO from Unit-I of its 1,200 MW (2 x 600 MW) thermal power
plant, and the company's sizeable on-balance sheet liquidity of
INR2,118 crore as on November 12, 2024. This on-balance sheet
liquidity has accumulated due to a combination of factors,
including the loan moratorium for the period between H2 FY2019 and
FY2023, a steady recovery of INR540 crore/annum of past receivables
from TANGEDCO from August 2022 under the LPS scheme, the benefit
accruing from Section 11 for sale to TANGEDCO lower fuel cost
under-recoveries and a pick-up in the short-term power market in
FY2024 and H1 FY2025, which supported a jump in the operating
profits.
The rating reflects the possibility of a gradual run-down of the
liquidity position over the medium term if the earnings stream from
the core operations remains tepid, and the surplus gets deployed to
prepay the unsustainable debt. The rating is further tempered by
the company's high energy cost (~INR5.38/unit in FY2024 and
INR5.09/unit in H1 FY2025), arising out of 100%
dependence on costlier imported coal and high inland logistics
costs, adversely impacting the cost competitiveness and ranking in
the merit order dispatch. ICRA understands that the company is in
the process of completing a captive jetty adjacent to its plant,
which can help save on railway freight for coal transport from the
Karaikal port located 130 km away and bring in cost
savings of INR0.15-0.30/unit.
Given its position at the higher end of the generation cost curve,
the rating is also constrained by the company's exposure to offtake
risks as ~50% of the installed capacity does not have long-term
power purchase agreements (PPA). In periods of subdued spot
tariffs, one unit is sparsely utilised (average PLF of ~44-45%
between FY2017 and H1 FY2025). While the rally in short-term
tariffs last fiscal has led to the PLF of the second unit increase
to 63.7% and 70.4% in FY2024 and H1 FY2025, the moderation in spot
power tariffs to a four-year low in in recent months gives limited
visibility of the durability of the healthy earnings stream from
short-term power sales over the medium term, especially given the
company's high cost base. This is expected to adversely impact the
capital return indicators across business cycles.
The rating also reflects the renewal risks associated with the
TANGEDCO PPA following its scheduled expiry in September 2028,
which gives limited visibility of the steady earnings stream from
one unit beyond H1 FY2029. The rating also reflects the company's
exposure to non-pass through of energy charges in the TANGEDCO PPA,
leading to fuel cost under-recovery of ~INR0.8/unit in H1 FY2025.
This eats into the capacity charges and depresses the overall
earnings generated from one unit, especially in year where TANGEDCO
draws down the full allocated capacity of 540 MW. ICRA notes that
the company is currently enjoying the benefit of Section 11 for
sale to TANGEDCO, which allows for recovery of a higher energy
charge rate (ECR) from TANGEDCO compared to the energy charges
indicated in the PPA. Notwithstanding, the 4-5% reduction in
blended cost of coal being expected in FY2026, with limited
visibility on the renewal of the Section 11 benefit after Feb 2025,
the fuel cost under-recovery is likely to remain at around
INR0.6/unit in the next fiscal. The company has a sizeable
on-balance sheet liquidity and maintenance of a healthy liquidity
buffer, at all times, to tide over periods of weak spot power
tariffs and/or payment delays from TANGEDCO, will remain critical
from a credit perspective.
The Stable outlook on ITPCL's rating reflects ICRA's opinion that
the company's debt servicing ability will be supported by a
combination of steady earnings stream from sale to TANGEDCO,
opportunistic sale in the short-term markets, expected inflow of
LPS receivables and sizeable current on-balance sheet liquidity.
ITPCL has benefitted from the favorable regulatory actions arising
out of the implementation of late payment surcharge scheme, along
with additional fuel cost recovery from TANGEDCO under Section 11
of the Electricity Act. Both these factors have played an important
role in the sizeable build-up of free cash & liquid investments.
This, coupled with the change in management at the IL&FS Group, has
led to a significant improvement in the fundamental credit quality
of the rated entity. In lieu of these reasons, ICRA has taken an
exception to the 90-day curing period after the last date of delay
in NCDs (INE433M08437, INE433M08445, INE433M08445) while assigning
the ratings.
Key rating drivers and their description
Credit strengths
* Relatively predictable earnings stream from 540-MW long-term
power sale arrangement with TANGEDCO; limited visibility on power
offtake from H2 FY2029: ITPCL has a long term PPA with TANGEDCO
under competitive bidding for 540 MW of capacity which is valid
till September 2028, providing revenue visibility till H1 FY2029.
If the PPA with TANGEDCO is not renewed at a cost-reflective
tariff, the company can potentially be dependent on merchant sales
from H2 FY2029. This exposes the company to a greater degree of
earnings volatility over the long term and exposes the company to
the risk of cash flow timing mismatches, given the fixed debt
service obligations.
* Sizeable on-balance sheet liquidity provides cushion to tide over
periods of weak core earnings; liquidity could be affected if
earnings stream from core operations remains tepid and surpluses
get deployed to prepay unsustainable debt: ITPCL has been
generating healthy cash flows over the last 2-3 years, driven by
regulatory actions such as the implementation of Section 11 under
Electricity Act for a greater pass-through of fuel cost escalations
since May 2022 and recovery of old stuck receivables post the
implementation of the Late Payment Surcharge scheme (LPSC) since
August 2022. This, along with the rally in merchant tariffs in
FY2024 and H1 FY2025, has generated healthy cash flow for the
company, and supported the build-up of sizeable on-balance sheet
liquidity of ~INR 2,100 crores as of November 2024, which provides
cushion to tide over any shortfall in
cash flows from the core business operations.
However, the surplus liquidity on the balance sheet, over and above
the levels required to meet the threshold cash-adjusted DSCR
benchmark as per the restructuring plan, can potentially be
deployed towards the prepayment of the unsustainable debt, which
could lower the liquidity cushion from the prevailing levels.
ICRA believes that given the sizeable debt service obligations and
the uncertainties associated with power offtake which is placed in
the higher end of the merit order list, a track record of
maintaining a sizeable liquidity to tide over periods of weak
earnings remains essential from a credit perspective.
* Timely recovery of old receivables from TANGEDCO amid risk of a
cyclical build-up of receivables over the medium term: ITPCL has a
long term PPA with TANGEDCO valid till September 2028. As per the
long-term PPA, TANGEDCO was to pay the bills within 30 days of
receipt of the bill. However, the discom had significantly delayed
in making the payments to ITPCL in the past, leading to a large
build-up of receivables of around INR2,100 crore on its books as on
March 31, 2022. However, after the launch of the Late Payment
Surcharge scheme in June 2022, TANGEDCO has been paying the past
dues through 48 installments of INR45 crore every month, starting
from August 2022. This is leading to an additional inflow of INR540
crores per annum being available in FY2025 and FY2026 and around
INR171 crore in FY2027.
Although ITPCL has been recovering past overdue in a timely manner
under the LPS scheme, TANGEDCO has a weak financial profile due to
losses owing to the inadequate tariff revisions, subdued
utilization of its generation assets and the high cost of power
purchase, leading to suboptimal cost coverage, sizeable cash losses
and a significant reliance on external borrowings. This has
stretched the liquidity for TANGEDCO, which opens up the
possibility of a cyclical build-up of receivables for ITPCL when
the utility struggles to arrange funding to meet the cash flow
shortfalls. Such risks get accentuated for high-cost generators
like ITPCL.
* Long residual tenure of restructured debt lowers annual debt
service burden and supports overall liquidity position: After the
restructuring, the debt had been classified into sustainable and
unsustainable. Of the INR9587 crore of the company's overall debt
as of March 2023, 64.66% has been classified as sustainable debt,
which has a long residual repayment tenure extending up to FY2038,
thereby lowering the annual repayment obligations for the company.
In addition, the residual debt has been classified as unsustainable
debt, which carries a nominal coupon rate of 0.001% and scheduled
annual amortization of 0.01%, with the balance amount to be retired
in lumpsum equally in FY2039 and FY2040.
Credit challenges
* High energy cost due to dependence on imported coal: The company
is importing 100% of the coal from Indonesia through spot purchases
and does not have any long-term fuel supply agreement. The
company's earnings are therefore exposed to coal cost fluctuation
which may impact the overall cost of generation. Moreover, given
that coal cost escalations are not pass-through even in the PPA
with TANGEDCO, such cost escalations can adversely impact the
overall earnings in years when coal price remain elevated. ICRA
notes that the increase in coal prices in the international market
and the depreciation of the INR against USD has raised the landed
cost of coal to ~INR8,000/MT in H1 FY2025 from INR5,800/MT in
FY2020, impacting the overall cost of generation and profitability.
However, the company is constructing a jetty for the transportation
of coal with a total outlay of INR200 crore, which will decrease
the logistics cost and save around INR0.15-0.30/unit of net
generation leading to an attractive payback period of 1-2 years.
This jetty is expected to be completed and become operational in
the next 2 years. A timely completion of the same and the benefits
arising out of it remains a key monitorable from a profitability
perspective.
* Exposure to offtake risks as ~50% of the installed capacity do
not have long-term PPA; risks may get accentuated by ITPCL's
adverse cost structure: ITPCL does not have a long-term PPA for
Unit 2, which has a capacity of 600 MW and is wholly dependent on
merchant tariffs/bilateral sales. Given the high-cost base, the
unit will be supplying power only during periods of peak demand,
typically from 6pm to 8 am for taking the benefit of higher
tariffs. Merchant/bilateral tariffs are volatile in nature which
exposes the company to the risk of suboptimal PLFs and
unpredictable earnings from Unit 2. While the tariffs in the
merchant market have remained buoyant over the past couple of years
amid healthy domestic power demand growth, the spot tariff rates
have moderated in recent months.
ICRA notes that the merchant tariffs had remained in the range of
INR2.5-3.5/unit till FY2021 and increased significantly to
INR6.19/unit in FY2023. However, given the moderation in demand,
the spot tariffs have come back to levels of INR3.9/unit in H2
FY2025, and therefore, the benefits of high merchant tariffs
enjoyed by company in the previous two years may not be available
for a prolonged period, which can adversely impact the earnings
level. Also, given the high cost of generation, the company's
generation from Unit 2 has been sub-optimal with an average PLF of
36% from FY2019 to FY2023. The PLF increased to 64% in FY2024 and
70% in H1 FY2025 due to higher tariffs which may not continue when
the tariff declines and reaches long-term median levels.
* Under-recovery in fuel cost in the absence of pass-through
mechanism with TANGEDCO: For Unit 1, for which ITPCL has a
long-term PPA with TANGEDCO, the company generates revenue in the
form of capacity charges linked to a normative availability of more
than 85% and energy charges based on the power sold as per the PPA
terms. As the thermal plant depends on imported coal, the cost of
generation remains high for the company (~INR5.38/unit in FY2024
and INR5.09/unit in H1 FY2025), which is not a pass-through in the
PPA, and hence there has been an under-recovery of fuel charges.
A notification was issued by the Government of India under Section
11 of the Electricity Act of 2003, which gives the GoI the right to
direct generating companies to operate and maintain power stations
at full load, as per the dispatch schedule from the discoms, with
fuel cost as a pass-through. The discoms are required to pay the
power generating companies as per the energy charge benchmark rates
(ECR), notified by the committee appointed by the Government on a
fortnightly basis. Since the roll out of Section 11 of the
Electricity Act from May 2022, the company is receiving energy
charges from TANGEDCO under ECR benchmarks rates. This mechanism
has been extended multiple times, with the current extension
available till February 2025. However, notwithstanding the Section
11 benefit, the under-recovery in fuel cost remains at ~INR0.8 per
unit in H1 FY2025.
ICRA also estimates that with average coal prices moderating by
about 4-5% in FY2026 over FY2025, if the Section 11 benefit is not
extended further, the company's fuel cost under-recovery could
remain at around INR0.6/unit in the next fiscal. Such fuel cost
under-recoveries can increase in a scenario where there is a high
drawl rate from TANGEDCO in periods of high demand. However, as the
company has been consistently reporting availability above 85%, the
capacity charge recovery has been around INR700 crore per annum
which supports the overall earnings generated from Unit 1.
Liquidity position: Adequate
ITPCL's liquidity position is supported by expected free cash flows
of ~INR894 crore in FY2025 and ~INR1066 crore in FY2026 against
annual repayment obligations of INR344-541crore during this period.
Further, the company had cash and bank balances of ~INR2,100 crore
as of November 2024, which provides an additional debt servicing
cushion. However, as per the resolution terms, the surplus funds
(on lenders' discretion) can be used to prepay the unsustainable
debt, subject to meeting a minimum level of cash-adjusted DSCR
cover. This provision can adversely impact the liquidity profile in
periods when the core earnings from power sales remain weak due to
high coal costs and subdued merchant tariffs.
Rating sensitivities
Positive factors – The rating could be revised upwards if there
is better visibility on the long/medium term power offtake
arrangement of the entire generation capacity at a cost-reflective
tariff, which supports a more predictable earnings stream across
business cycles. Specific credit metrics for upgrade include DSCR
(excluding cash balance) of more than 1.20 times on a sustained
basis.
Negative factors – The rating could come under pressure if the
company's earnings from spot power sales decline from the
prevailing levels, putting pressure on the overall cash flow and
liquidity. The rating could also come under pressure if the
liquidity position deteriorates due to various reasons, including a
built-up of receivables and/or deployment of the surplus for
retiring the unsustainable debt.
IL&FS Tamil Nadu Power Company Ltd. (ITPCL) is a special purpose
vehicle (SPV), incorporated on June 26, 2006, to set up a 3,840-MW
imported coal-based thermal power project at Cuddalore in Tamil
Nadu. It is promoted by IL&FS Energy Development Corporation Ltd.
(IEDCL), the energy vertical of the IL&FS Group.
The project was proposed to be implemented in phases. In the first
phase, the company set up a 1,200-MW (2x600 MW) power plant based
on imported coal with sub-critical technology. Phase I of the power
plant has commenced its operations, with Unit I of 600 MW
commissioned on September 29, 2015 and Unit II of 600 MW on April
30, 2016. Coal for the project is being imported from Indonesia.
ITPCL has a long-term PPA for the sale of 540 MW from Unit I to
Tamil Nadu Generation and Distribution Corporation Limited
(TANGEDCO). For Unit II, there is no long-term PPA and ITPCL is
dependent on short-term power sale agreements or sale through the
power exchange.
The total project cost in the first phase initially estimated at
INR6,371 crore, has been revised upwards to INR11,835 crore because
of execution delays and increase in the project scope. The project
was financed by INR6,080-crore term loans and the balance through
equity and promoter loans.
INDIAN CONSTRUCTION: ICRA Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Indian
Construction Company (ICC) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Short Term- 3.25 [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 Indian Construction Company, 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.
Indian Construction Co. (ICC) was established as a partnership firm
in 1978. The firm is primarily involved in the execution of
government tenders for civil construction contracts of dams,
canals, roads, bridges, underpass and other construction works. ICC
is registered as an "AA" class contractor in the construction
segment with the State Government of Gujarat, which makes
it eligible to bid for most contracts floated by the government
entities in the state. ICC mainly outsources its awarded contracts
to other sub-contractors. The firm is managed by Mr. Bhagwanji
Patel, Mr. Paresh Vakeria, Mr. Bipin Vakeria, Mr. Rajesh Vakeria
and Mr. Kush Vakeria, who have a longstanding experience in the
civil construction business.
MADHABGANJ KARUNAMOYEE: ICRA Keeps B Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Madhabganj
Karunamoyee Himghar Pvt Ltd (MKHPL) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B(Stable); ISSUER NOT
COOPERATING/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 0.83 [ICRA]B (Stable) ISSUER NOT
Working COOPERATING; Rating continues
Capital Loan to remain under the 'Issuer
Not Cooperating' category
Fund Based- 4.23 [ICRA]A4 ISSUER NOT
Seasonal COOPERATING; Rating continues
Cash Credit to remain under the 'Issuer
Not Cooperating' category
Short Term- 0.16 [ICRA]A4 ISSUER NOT
Non-fund based COOPERATING; Rating continues
Others to remain under the 'Issuer
Not Cooperating' category
Unallocated 0.03 [ICRA]B (Stable)/[ICRA]A4
Limits ISSUER NOT COOPERATING;
Rating continues to remain
under the 'Issuer Not
Cooperating' category
Long Term/ 0.03 [ICRA]B (Stable)/[ICRA]A4;
Short Term- ISSUER NOT COOPERATING;
Unallocated Rating continues to remain
under 'Issuer Not Cooperating'
category
As part of its process and in accordance with its rating agreement
with MKHPL, 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 2011, MKHPL is owned by the Ranjit Maity and family
and by Mondol family of Kolkata. MKHPL has commenced its commercial
operation in March 2013. Prior to the commencement of cold storage
operation, in FY13, MKHPL was engaged in trading of potato. MKHPL
is situated in the Bankura district of West Bengal and has a
capacity to store 17,200 metric tonnes (MT) of potatoes.
MAHESH OIL REFINERY: CRISIL Cuts Rating on INR23.5cr Loan to B
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Mahesh Oil Refinery - Kachchh (MOR; part of the
Mahesh Oil group) to 'CRISIL B/Stable' from 'CRISIL BB+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 23.5 CRISIL B/Stable (Downgraded
from 'CRISIL BB+/Stable')
Term Loan 21 CRISIL B/Stable (Downgraded
from 'CRISIL BB+/Stable')
The downgrade reflects the group's stretched liquidity, marked by
delay in servicing the debt obligation by its entity, Shree Mahesh
Oil Refinery (SMOR), for October 2024, in the absence of any timely
support from other group entities. The financial risk profile
remains moderate, and low profitability has led to a stretch in
liquidity. Going forward, growth in revenue and operating margin
and the envisaged cash accrual, will be monitored.
The rating reflects decline in operating income and low
profitability, modest financial risk profile and vulnerability to
fluctuations in raw material prices and intense competition. These
weaknesses are partly offset by the group's established market
position and extensive experience of the partners in the edible oil
industry, and its prudent working capital management.
Analytical approach
CRISIL Ratings has combined the business and financial risk
profiles of MOR, Mahesh Oil Industries (MOI), Mahesh Oil Products
(MOP) and Shree Mahesh Oil Refinery (SMOR). The entities,
collectively referred to as the Mahesh Oil group, are under a
common management, with financial and operational linkages.
Key rating drivers & detailed description
Weaknesses:
* Decline in operating income and low profitability: Operating
income of the group fell to INR2,242.05 crore in fiscal 2024, from
INR2,923.51 crore in fiscal 2023, owing to a drop in realisations
and subdued demand. The group reported a loss in fiscal 2024,
following a sharp decline in edible oil prices. Operating margin
remained muted at 0.88% in fiscal 2024 (0.54% in fiscal 2023), but
is likely to improve in line with rise in oil prices and market
demand.
* Vulnerability to fluctuations in raw material prices and intense
competition: Prices of raw material tend to fluctuate sharply,
thereby impacting profitability. Moreover, the group's presence in
a highly competitive industry and limited value addition in
products restrict the operating margin. Its capability to pass on
any hike in prices to its customers remains monitorable.
* Moderate financial risk profile: Networth was sizeable over
INR52.58 crore as on March 31, 2024. Gearing and total outside
liabilities to adjusted networth (TOL/ANW) ratios stood at 2.44
times and 3.26 times, respectively (as against 3.34 times and 3.91
times, respectively, as on March 31, 2023), owing to a decline in
scale and debt levels. Debt protection metrics have also moderated,
as reflected in interest coverage ratio of 1.48 times in fiscal
2024 (1.19 times in fiscal 2023), with improvement in
profitability. In the absence of any large debt-funded capex,
financial risk profile should remain moderate over the medium
term.
Strengths:
* Established market position and extensive experience of the
partners: The two-decade-long experience of the partners in the
edible oil industry, their understanding of local market dynamics
and healthy relationships with suppliers and customers will
continue to support the business. The group has reputed clientele
and a diversified product portfolio of refined oils (palm oil, palm
olein oil, soyabean oil, cottonseed oil, groundnut oil and mustard
oil). Growth in revenue and operating margin remains a key
monitorable.
* Prudent working capital management: Gross current assets (GCAs)
were low at 22 days as on March 31, 2024, backed by minimal
inventory and receivables of 19 days and 2 days, respectively. The
working capital cycle is partly supported by payables of 3-6 days.
The group is likely to maintain its GCAs in the range of 20-25 days
over the medium term.
Liquidity: Poor
Liquidity remains weak, on account of high bank limit utilisation
during the peak season and lack of financial support from group
entities. SMOR has delayed servicing of its term debt obligation in
October 2024. Bank limit utilisation averaged around 61% for the 12
months through November 2024. However, expected cash accrual of
INR17-20 crore should suffice to cover the debt obligation of
INR6-14 crore over the medium term. Growth in operating margin,
leading to higher cash accrual, and no further withdrawal of funds
by the partners remains a key monitorable.
Outlook: Stable
The Mahesh Oil group will continue to benefit from the extensive
experience of its partners, its established market position in the
edible oil industry and prudent working capital management.
Rating sensitivity factors
Upward factors
* Timely debt servicing for SMOR and timely support going to group
company
* Substantial and sustained growth in revenue and profitability,
resulting in net cash accrual of over INR15 crore at the group
level
Downward factors
* Decline in scale or operating margin (below 0.30%), leading to
lower cash accrual at the group level
* Further capital withdrawal by the partners, and increase in
reliance on external debt, weakening the financial risk profile and
liquidity
MOR is a partnership firm, set up in 2018, by Mr. Ramesh Chandra
Toshniwal, Mr. Omprakash Toshniwal and Mr. Vinay Toshniwal. It has
refining capacity of 500 metric tonne per day (MTPD) at Surat,
Gujarat.
Set up in July 2020, SMOR operates an oil refining plant in Indore,
Madhya Pradesh. Operations are managed by Mr. Ramesh C Toshniwal,
Mr. Vikas Toshniwal, Mr. Raghav Toshniwal, Ms Megha Toshniwal and
Ms Shivani Toshniwal.
MOI has an oil refinery in Kutch, Gujarat. It has a refinery
section with capacity of 800 MTPD, and is a fully automatic
operated section.
MOP was set up as a partnership between Mr. Ankit Toshniwal, Mr.
Omprakash Toshniwal, Mr. Balmukund Toshniwal and Mr. Vikas
Toshniwal in 2007. It has an oil refinery in Shahpura, Rajasthan,
with capacity of 100 MTPD.
MAHESH OIL: CRISIL Lowers Rating on INR24cr Cash Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Shree Mahesh Oil Refinery (SMOR; part of the Mahesh
Oil group) to 'CRISIL D' from 'CRISIL BB+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 24 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Term Loan 24.5 CRISIL D (Downgraded from
'CRISIL BB/Stable')
The downgrade reflects the group's stretched liquidity which
resulted in delay in meeting debt obligation by SMOR in October
2024 in the absence of any support from group entities.
The rating reflects decline in operating income and low
profitability, modest financial risk profile and vulnerability to
fluctuations in raw material prices and intense competition. These
weaknesses are partly offset by the group's established market
position and extensive experience of the partners in the edible oil
industry, and its prudent working capital management.
Analytical approach
CRISIL Ratings has combined the business and financial risk
profiles of Mahesh Oil Refinery - Kachchh (MOR), Mahesh Oil
Industries (MOI), Mahesh Oil Products (MOP) and SMOR. The entities,
collectively referred to as the Mahesh Oil group, have common
management and financial and operational linkages.
Key rating drivers and detailed description
Weaknesses:
* Delay in debt servicing: SMOR has delayed its installment towards
the term loan in October 2024.
* Decline in operating income and low profitability: The operating
income of the group fell to INR2,242.05 crore in fiscal 2024, from
INR2,923.51 crore in fiscal 2023, owing to a drop in realisations
and subdued demand. The group reported a loss in fiscal 2024,
following a sharp decline in edible oil prices. Operating margin
remained muted at 0.88% in fiscal 2024 (0.54% in fiscal 2023), but
is likely to improve in line with rise in oil prices and market
demand.
* Vulnerability to fluctuations in raw material prices and intense
competition: Prices of raw material tend to fluctuate sharply,
thereby impacting profitability. Moreover, the group's presence in
a highly competitive industry and limited value addition in
products restrict the operating margin. Its ability to pass on any
hike in prices to its customers remains monitorable.
* Modest financial risk profile: Networth was sizeable over
INR52.58 crore as on March 31, 2024. Gearing and total outside
liabilities to adjusted networth (TOLANW) ratio stood at 2.44 times
and 3.26 times, respectively (as against 3.34 times and 3.91 times,
respectively, as on March 31, 2023) owing to a decline in scale and
debt levels. Debt protection metrics have also moderated, as
reflected in interest coverage ratio of 1.48 times in fiscal 2024
(1.19 times in fiscal 2023), with improvement in profitability. In
the absence of any large debt-funded capital expenditure, the
financial risk profile is expected to remain modest over the medium
term.
Strengths:
* Established market position and extensive experience of the
partners: The two-decade-long experience of the partners in the
edible oil industry, their understanding of local market dynamics
and healthy relationships with suppliers and customers will
continue to support the business. The group has reputed clientele
and a diversified product portfolio of refined oils (palm oil, palm
olein oil, soyabean oil, cottonseed oil, groundnut oil and mustard
oil). Growth in revenue and operating margin remains a key
monitorable.
* Prudent working capital management: Gross current assets (GCAs)
were low at 22 days as on March 31, 2024, backed by minimal
receivables and inventory of 2 days and 19 days, respectively. The
working capital cycle is partly supported by payables of 3-6 days.
The group is likely to maintain its GCAs in the range of 20-25 days
over the medium term.
Liquidity: Poor
Liquidity remains weak on account of high bank limit utilisation
during the peak season and lack of financial support from group
entities. SMOR has delayed servicing of its term debt obligation in
October 2024. Bank limit utilisation averaged around 61% for the 12
months through November 2024. However, expected cash accrual of
INR17-20 crore should suffice to cover the debt obligation of
INR6-14 crore over the medium term. Growth in operating margin,
leading to higher cash accrual, and no further withdrawal of funds
by the partners remains a key monitorable.
Rating sensitivity factors
Upward factors
* Timely debt servicing for at least 90 days
* Substantial and sustained growth in revenue and profitability,
resulting in net cash accrual of over INR15 crore at the group
level
Set up in July 2020, SMOR operates an oil refining plant in Indore,
Madhya Pradesh. Operations are managed by Mr. Ramesh C Toshniwal,
Mr. Vikas Toshniwal, Mr. Raghav Toshniwal, Ms Megha Toshniwal and
Ms Shivani Toshniwal.
MOR is a partnership firm, set up in 2018, by Mr. Ramesh Chandra
Toshniwal, Mr. Omprakash Toshniwal and Mr. Vinay Toshniwal. It has
refining capacity of 500 metric tonne per day (MTPD) at Surat,
Gujarat.
MOI has an oil refinery in Kutch, Gujarat. It has a refinery
section with capacity of 800 MTPD, and is a fully automatic
operated section.
MOP was set up as a partnership between Mr. Ankit Toshniwal, Mr.
Omprakash Toshniwal, Mr. Balmukund Toshniwal and Mr. Vikas
Toshniwal in 2007. It has an oil refinery in Shahpura, Rajasthan,
with capacity of 100 MTPD.
MAHESHWARI LOGISTIC: CRISIL Moves B+ Ratings to Not Cooperating
---------------------------------------------------------------
CRISIL Ratings has migrated the ratings on bank facilities of
Maheshwari Logistic Services and Solutions (MLSS) to 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5.5 CRISIL A4 (ISSUER NOT
COOPERATING; Rating Migrated)
Proposed Bank 9.5 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Rating Migrated)
Proposed Cash 5.0 CRISIL B+/Stable (ISSUER NOT
Credit Limit COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MLSS for
obtaining information through letter and email dated December 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 MLSS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MLSS
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Ratings has migrated the ratings on
bank facilities of MLSS to 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
MLSS was established in 2019, it is located in Bhopal, Madhya
Pradesh. MLSS is owned & managed by Sunil Maheshwari & Archana
Maheshwari. MLSS is engaged in third party logistics solutions.
MEDNOMIC HEALTHCARE: CRISIL Moves B Ratings to Not Cooperating
--------------------------------------------------------------
CRISIL Rating has migrated the rating on bank facilities of
Mednomic Healthcare Private Limited (MHPL) to 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 12.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
Term Loan 1.69 CRISIL B/Stable (ISSUER NOT
COOPERATING; Rating Migrated)
CRISIL Ratings has been consistently following up with MHPL for
obtaining information through letter and email dated December 23,
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 MHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MHPL
is consistent with 'Assessing Information Adequacy Risk'.
Therefore, on account of inadequate information and lack of
management cooperation, CRISIL Rating has migrated the rating on
bank facilities of MHPL to 'CRISIL B/Stable Issuer not
cooperating'.
Established in 2016 by Dr Arup Kumar Nath, MHPL is setting up an
80-bed healthcare facility, Advanced Urology and Kidney Diseases
Hospital, which will specialise in urology, nephrology and
gynaecology.
ORISSA CONCRETE: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Orissa
Concrete & Allied Industries Ltd. (OCAIL) 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 10.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 8.00 [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 Orissa Concrete & Allied Industries Ltd., ICRA has been trying
to seek information from the entity so as to monitor its
performance. Further, ICRA has been sending repeated reminders to
the entity for payment of surveillance fee that became due. Despite
multiple requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Incorporated in 1979, OCAIL is a closely held company belonging to
the Raipur-based Agarwal family. OCAIL has facilities at Raipur,
Chhattisgarh for manufacturing of concrete sleepers for railways,
with an annual capacity of 4.25 lakh sleepers per Annum.
PARAGON FINANCE: ICRA Assigns B+ Issuer Rating; Watch Developing
----------------------------------------------------------------
ICRA has assigned rating to the bank facilities of Paragon Finance
Limited's (Paragon), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer Rating - [ICRA]B+ Rating Watch with
Developing Implications;
Assigned
Rationale
The assigned rating takes into consideration Paragon adequate
capitalisation profile with a net worth of INR32.4 crore as on
September 30, 2024 and an adequate liquidity profile. The gearing
remained low at 0.02 times as on September 30, 2024, with no
external debt on the balance sheet. However, the rating is
constrained by Paragon's small scale and geographically
concentrated operations with a presence in only two cities. The
assets under management (AUM) remained small at ~INR13 crore as on
September 30, 2024 (INR13.6 crore as on March 31, 2024) and has
been declining over the years. Further, the gross non-performing
assets (NPAs) stay elevated and stood at 4.6% as on March 31, 2024.
The rating is on Watch with Developing Implications due to a share
purchase agreement dated July 25, 2024 entered into by some of the
company's promoters and the promoter group. Under this agreement,
51.47% of the company's shares will be transferred to the acquirer
(Apple Equifin Pvt. Ltd) along with persons acting in concert (PAC;
GKML Software Pvt. Ltd and Sunkesula Infra LLP), subject to the
approval of the Securities and Exchange Board of India (SEBI) and
the receipt of a no objection certificate (NOC) from the Reserve
Bank of India (RBI). The acquirer, along with PAC, also gave an
open offer to the public shareholders on July 25, 2024 to acquire
shares representing 26.00% of Paragon's voting share capital. The
rating shall remain on watch till further clarity emerges on the
transaction and the company's business plan, post the transaction.
Key rating drivers and their description
Credit strengths
* Adequate capitalisation for current scale of operations: As on
September 30, 2024, the company was adequately capitalised for the
current scale with a reported net worth of INR32.4 crore. Its
on-book gearing stood at 0.02x as on September 30, 2024 as well as
March 31, 2024 with borrowings comprising loans from related
parties/Group companies.
Credit challenges
* Small scale and geographically concentrated operations: The
company's scale of operations remains small with AUM of ~INR13
crore as on September 30, 2024 (INR13.6 crore as on March 31,
2024), spread across Ranchi and Kolkata. The company has been
gradually reducing its disbursements and the AUM has been declining
as it intends to discontinue its vehicle financing operations. A
large part of the AUM (89% as of March 2024) comprised
inter-corporate loans to Group companies. Paragon's promoters are
in the process of selling their stake in the company and want to
completely exit the lending business.
* Moderate asset quality and earnings profile: Paragon has not
disbursed any loans to external parties/borrowers since the
Covid-19 pandemic. It has been winding down its external lending
and the loan portfolio largely comprised inter-corporate loans (89%
of portfolio) to related parties (Group companies). The sizeable
exposure to Group entities increases Paragon's
portfolio vulnerability. The overall gross NPAs stood at 4.6% as on
March 31, 2024, for which the company was carrying 100% provision
coverage. Excluding inter-corporate deposits/loans to related
parties, the 90+ days past due (dpd) stood at 60% as on March 31,
2024.
Paragon's profitability is moderate on account of modest margins
and low operating efficiency. It reported a net profit of INR0.9
crore in FY2024, translating into a return of 2.8% on average
managed assets (AMA) and 3.0% on average net worth against
-INR 0.1 crore, -0.5%, -0.5%, respectively, in FY2023. The company
has a large share of non-operating income, mainly from net gains on
fair value changes on investments made. Operating expenses remain
elevated in relation to the scale and target
business, largely comprising the salary drawn by the promoters.
Liquidity position: Adequate
Paragon's liquidity profile is adequate, given the free cash and
bank balance and liquid investments of INR19.1 crore as on
September 30, 2024. The company has scheduled inflows of INR12.7
crore from loans and advances during the 12-month period ending
September 30, 2025 vis-à-vis scheduled debt repayments of INR0.7
crore during this period. As on September 30, 2024, there was no
external debt. However, Paragon had a contingent liability of
INR6.5 crore as on March 31, 2024.
Rating sensitivities
Positive factors – Profitable business growth and improvement in
the asset quality while maintaining a prudent capital structure
would positively impact the rating.
Negative factors – A deterioration in the liquidity profile or
further deterioration in the asset quality could exert pressure on
the rating.
Paragon Finance Limited (Paragon), incorporated on July 21, 1986,
was promoted by the Late Mr. Radhey Shyam Gupta in Kolkata with his
sons – Mr. Aloke Gupta and Mr. Manoj Gupta, as the first
directors. It is a non-banking financial company (NBFC) registered
with the Reserve Bank of India (RBI) as a non-deposit taking NBFC.
It was initially formed as Paragon Finance
and Plywood Industries Ltd as its Group entities were involved in
the plywood and timber business.
Paragon started as a commercial vehicle financing business as it
had already established good relations with truck drivers. It was
renamed Paragon Finance Limited in 1993 and went public {launched
its initial public offering (IPO)} in 1995. As on March 31, 2024,
the company reported assets under management (AUM) of INR13.6 crore
with a presence in Ranchi and Kolkata. Paragon is largely held by
the promotor group with a stake of ~71% as on September 30, 2024.
PAYMARK PAYMENT: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Paymark Payment Technologies & Services Private Limited
73/28 Golf Club Road LP 85/3/0,
Kolkata - 700033, West Bengal, India
Insolvency Commencement Date: December 13, 2024
Estimated date of closure of
insolvency resolution process: June 16, 2025
Court: National Company Law Tribunal, Kolkata Bench
Insolvency
Professional: Hansraj Jaria
36, Abinash Sashmal Lane
Beleghata, Phoolbagan
Near Pawanputra Hotel
Kolkata - 700010, West Bengal
Email: hansrajjaria@gmail.com
Email: paymark.cirp@gmail.com
Last date for
submission of claims: January 1, 2025
PLATINO CLASSIC: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term rating of Platino Classic Motors
(India) Pvt. Ltd. in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 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 Platino Classic Motors (India) 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.
Platino Classic Motors (India) Pvt. Ltd. is engaged in automobile
dealership of BMW cars in Kerala. PCM was incorporated in 2007 by
Mr. P.P Aashique. The first showroom was opened in Ernakulum in
2007, following which other showrooms were opened in Calicut in
2011 and in Trivandrum in 2015. The company is related to Koyenco
group, which has diverse business interests in automobile
dealerships and real estate, among others.
PRAPTI FASHIONS: Liquidation Process Case Summary
-------------------------------------------------
Debtor: Prapti Fashions Pvt Ltd
Pardihan Garments Park SDF-4,
4th Floor 19 Canal South Road
Kolkata, West Bengal
India, 700015
Liquidation Commencement Date: December 13, 2024
Court: National Company Law Tribunal Kolkata Bench
Liquidator: Umesh Poddar
FD-71, Sector III,
Salt Lake, Kolkata - 700106
Email: capoddarumesh@gmail.com
Last date for
submission of claims: January 13, 2025
R. N. RICE: CRISIL Lowers Rating on INR15cr Cash Loan to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of R. N. Rice Mill (RNRM) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with RNRM for
obtaining information through letters and emails dated October 10,
2023 and December 9, 2024 apart from telephonic communication.
However, the issuer has remained non-cooperative.
'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 has been
arrived at without any interaction with the management and is based
on best-available, limited or dated information regarding the firm.
Such non-cooperation by a rated entity may be a result of weakening
of its credit risk profile. Rating with the 'issuer not
cooperating' suffix lacks a forward-looking component'.
Detailed Rationale
Despite repeated attempts to engage with the management of RNRM,
CRISIL Ratings did not receive any information on the financial
performance or strategic intent of the entity. This restricts the
ability of CRISIL Ratings to take a forward-looking view on the
credit quality of the firm. The rating action on RNRM is consistent
with the criteria detailed in 'Assessing information adequacy
risk'.
Based on the last-available information, CRISIL Ratings has
downgraded its rating on the long-term bank facilities of RNRM to
'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not
Cooperating'. As per information available in the public domain,
there remains delinquency in the entity's accounts and clarity
about the same from the management and bankers is awaited.
RNRM was set up in 2003 as a partnership entity by Mr. Rajesh
Bansal and Mr. Shri Mangeram. The firm is engaged in milling
basmati rice. Its facility has installed paddy milling and sorting
capacity of 10 tonne per hour at Kaithal in Haryana.
RUCHI GLOBAL: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term and Short-Term ratings of Ruchi Global
Limited (RGL) 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- 12.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term- 7.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Short-term 420.00 [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 RGL, 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 1996, Ruchi Global Limited (RGL) is engaged in the
business of trading in steel items and agricultural commodities.
RGL is a trading arm of Ruchi Group and is a closely held company
promoted by Mr. Kailash Shahra and his family members. RGL is
primarily involved in the trading of steel, edible oil, soya
products, soyabean, wheat, pulses, chemicals and other agro and
non-agro commodities. Ruchi Group is a reputed industrial
conglomerate in India with interests in businesses ranging from
steel to food products. The Group is actively involved in soya
processing, edible oils, dairy products, cold rolled sheets and
coils, galvanized sheets and coils and a host of other activities.
SAFE PARENTERALS: ICRA Keeps D Debt Ratings to Not Cooperating
--------------------------------------------------------------
ICRA has kept the long-term ratings of Safe Parenterals Private
Limited (SPPL) 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- 17.00 [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 SPPL, 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.
Safe Parenterals Private Limited (SPPL) was incorporated on
December 14, 1992. The Company is engaged in manufacturing wide
range of injectables using aseptic filling/terminal sterlization.
The existing unit is situated in 4 acres of land, having three
separate production blocks with all infrastructure facilities and
supporting equipments. Its manufacturing facility is located at
Gollapadu Village, Guntur district, Andhra Pradesh. The company was
incorporated and operated by Dr. Siva Rama Krishna and his family
till May 2020. However, the company was acquired by Pranaya
Pharmaceuticals group in FY2021. Ex promoters still hold 22%
shareholding in the company but are not involved in the day-to-day
operations. The company's operations are now being managed by Mr. S
Sridhar Reddy.
SHEBA MARINE: Liquidation Process Case Summary
----------------------------------------------
Debtor: Sheba Marine Engineering Private Limited
No. 46 Thenbazar Post
Villupuram, Thindivanam
Tamil Nadu, India, 604001
Liquidation Commencement Date: December 13, 2024
Court: National Company Law Tribunal Chennai Bench-I
Liquidator: Mr. Prakul Thadi
Flat No. 1405, J Block,
Rainbow Vistas, Green Hills Road,
Moosapet, Hyderabad, Telangana-500018
Email: prakuthadi@hotmail.com
Email: cirp.shebamarine@gmail.com
Last date for
submission of claims: January 16, 2025
SLOGAN POLYFILMS: CRISIL Reaffirms B+ Rating on INR70cr Term Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facility of Slogan Polyfilms Pvt Ltd (SPPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Working Capital 70 CRISIL B+/Stable (Reaffirmed)
Term Loan
The rating continues to reflect the risks related to stabilization
of operations. This weakness is partially offset by the extensive
experience of the promoters in the Packaging industry and the
location advantage of the facility.
Analytical Approach
Unsecured loan of INR1.26 crore as on March 31, 2024, has been
treated as debt.
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of SPPL.
Key Rating Drivers & Detailed Description
Weakness:
* Risks related to stabilization of operations: The company is now
scheduled to commence its operations in January 2025 as against
earlier expectation of April 2024, owing to delays in the import of
machinery and longer-than-expected trial runs. Timely completion
and successful stabilisation of its operations of the project will
remain a key rating sensitivity factory.
Strengths:
* Extensive experience of the promoters: Experience of around 19
years in the manufacturing of biaxially oriented polypropylene
(BOPP) films has given the promoters an understanding of the market
dynamics and enabled them to establish relationships with suppliers
and customers.
* Location advantage of the project: The factory is set up in the
Morbi district of Gujarat, which has many polypack and textile
industries around it. The demand for BOPP films is very high in
India and in the overseas markets as well. The location of the
project will benefit the business post commencement of the
operations given the proximity to the end market.
Liquidity: Poor
The company has received bank funding towards the term loan of
INR34.45 crore, repayment of which is expected to commence from May
2025. The commencement of operations from January 2025 and the
generation of sufficient cash accrual will remain monitorable over
the medium term. Furthermore, the company has sanctioned working
capital limits, which can be availed of post the commencement of
operations and should help fund its working capital requirement.
Liquidity is also supported by the promoters' ability to infuse
need-based fund.
Outlook: Stable
CRISIL Ratings believes that the company will benefit from its
promoters' extensive industry experience.
Rating sensitivity factors
Upward factors
* Timely commencement and stabilization of operations, leading to
healthy cash accrual
* Improvement in the financial risk profile, with gearing below 3
times
Downward factors:
* Further considerable delay in the commencement of its operations
* Generation of significantly low cash accrual during its initial
phase of operations, with operating margin below 6%
Incorporated in July 2022 by Mr. Becharbhai Bhavanbhai Dedhi, Mr.
Falgunbhai C Sanghani and Mr. Mahesh Kumar Dhedhi in Gujarat, SPPL
manufactures BOPP films. These films are used in branding of FMCG
products.
SPPL was incorporated in July 2022. It is engaged in the
manufacturing of biaxially oriented polypropylene (BOPP) polyfilms.
These films are then used during branding of the FMCG Products.
SUNFREE PASCHIM: CARE Lowers Rating on INR65cr LT Loan to B+
------------------------------------------------------------
CARE Ratings has revised the ratings on certain bank facilities of
Sunfree Paschim Renewable Energy Private Limited (SPREPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 65.00 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Downgraded from CARE BB+;
Stable
Rationale and key rating drivers
CARE Ratings Limited (CARE Ratings) had, vide its press release
dated October 5, 2023, placed the rating(s) of SPREPL under the
'issuer non-cooperating' category as SPREPL had failed to provide
information for monitoring of the rating for the rating exercise as
agreed to in its Rating Agreement. SPREPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
August 20, 2024, August 30, 2023, September 9, 2024. In line with
the extant SEBI guidelines, CARE Ratings has reviewed the rating on
the basis of the best available information, which however, in CARE
Ratings' 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).
Ratings assigned to bank facilities of SPREPL have been revised
considering non-availability of requisite information due to
noncooperation by SPREPL with CARE Ratings' efforts to undertake a
review of the rating outstanding. CARE Ratings views information
availability risk as a key factor in its assessment of credit
risk.
Analytical approach: Standalone
Outlook: Stable
SPREPL is engaged in solar power production through two 10 MW
plants at Solapur, Maharashtra (one plant in Karajagi and another
in Tadwal). SPREPL has executed 25-year PPA for sale of power to
Maharashtra State Electricity Distribution Company Limited (MSEDCL)
under Mukhyamantri Saur Krishi Vahini Yojana. Project cost was
INR103.02 crore, which was funded by INR65 crore term loan and rest
by promoter's (SAEL's) equity. The project got operationalised on
January 1, 2022.
TALWALKARS BETTER: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Non-convertible Debenture programme of Talwalkars
Better Value Fitness Limited (TBVFL) in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER
NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term- 80.00 [ICRA]D; ISSUER NOT COOPERATING;
Non-Convertible Rating Continues to remain under
Debenture issuer not cooperating category
As part of its process and in accordance with its rating agreement
with TBVFL, 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.
TBVFL offers various lifestyle activities such as Nuform, aerobics,
yoga, spa, massage, Zumba programs and diet and weight loss
programs like Reduce. It had also forayed into the segment of
leisure and sports clubs, wherein it had setup its first club in
Pune (Maharashtra) in collaboration with David Lloyd Leisure
Limited.
TANMAY COMPUTER: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Tanmay Computer & Software Private Limited
4D Gee Gee Towers
No. 11, Haddows Road, lst Street
Chennai - 600006
Tamil Nadu, India
Liquidation Commencement Date: December 16, 2024
Court: National Company Law Tribunal, Chennai Bench
Liquidator: Mr. Thirupal Gorige
No. 87, 2nd floor, 21st cross,
7th main, N.S. Palya,
BTM 2nd stage
Bangalore - 560076
Karnataka, India
Cell No: +91-94483-84064
Landline: +91-80-7963-4233
Email: gthirupal@gmail.com
Last date for
submission of claims: January 15, 2025
VADRAJ CEMENT: Nuvoco Vistas Wins Bid to Acquire Company
--------------------------------------------------------
Business Standard reports that Nirma Group promoted Nuvoco Vistas
Corp on Jan. 6 said it has emerged as the successful applicant for
Vadraj Cement, in a corporate insolvency resolution process
(CIRP).
The company did not disclose the transaction value, but termed it a
"value-buy."
At present, Nuvoco operates 25 million tonnes per annum (MTPA) of
cement capacity, which will increase to around 31 MTPA, up 20 per
cent, with this transaction.
In its statement, Nuvoco said it has emerged as the successful
resolution applicant (SRA) of Vadraj Cement, which is currently
undergoing a CIRP, Business Standard relates.
"The resolution plan submitted by Nuvoco has been approved by the
committee of creditors (CoC), and a letter of intent (LoI) has been
issued," Nuvoco said.
Nuvoco is promoted by Niyogi Enterprise, an investment vehicle of
the Nirma Group.
Vadraj Cement's existing facilities include a 3.5 MTPA clinker unit
in Kutch, a 6 MTPA grinding unit in Surat, limestone reserves, and
a jetty.
However, these facilities are not operational at present.
In addition to the undisclosed deal value, Nuvoco said a phased
investment will be made, spread over 15 months, towards the
refurbishment of assets and to drive operational improvements
across Vadraj Cement plants, according to Business Standard.
The estimated target date to commence production is around the
third quarter of FY27, subject to approvals, said Nuvoco.
Once operational, the transaction will increase Nuvoco's capacity
to 31 MTPA - taking it to 19 MTPA in the East, 6 MTPA in the North,
and 6 MTPA in the West.
Nuvoco is already the fifth largest cement maker by capacity in
India. The company expects the latest transaction to solidify its
position for the long term.
Business Standard adds that the transaction will be implemented by
a wholly-owned subsidiary of Nuvoco and it intends to fund the
transaction without a significant rise in debt levels.
As reported in the Troubled Company Reporter-Asia Pacific in early
February 2024, the Mumbai bench of the insolvency tribunal has
ordered initiation of insolvency proceedings against Vadraj Cement,
a group company of the bankrupt ABG Shipyard, after the cement
manufacturer defaulted on dues of more than INR87 crore to
state-run Punjab National Bank (PNB).
The bench appointed Pulkit Gupta, a partner at EY (debt and special
situations) as the interim resolution professional who will manage
the day-to-day affairs of the company, Livemint.com discloses. In
November 2023, the Economic Times reported that Adani Group, JSW
Cement and ArcelorMittal were in running to buy the bankrupt
Gujarat-based firm.
Vadraj Cement, as of June 2024, has admitted claims of worth Rs
8,180.61 crore, from secured, unsecured and other operational
creditors combined, according to documents available on the
website.
VISHAL ENTERPRISES: CRISIL Assigns B Rating to INR4.31cr Loans
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long term bank facilities of Vishal Enterprises - Patna (VE).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.60 CRISIL B/Stable (Assigned)
Proposed Fund-
Based Bank Limits 4.31 CRISIL B/Stable (Assigned)
Term Loan 0.09 CRISIL B/Stable (Assigned)
The rating reflects VE's modest scale of operation and working
capital intensive operations. These weaknesses are partially offset
by its extensive industry experience of the proprietor
Analytical Approach
CRISIL Ratings has evaluated the standalone business and financial
risk profiles of VE.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operation: VEs business profile is constrained by
its scale of operations in the intensely competitive transport and
logistics industry marked by a modest topline of around INR4 crore
in FY24. However, with increased tender participation, operating
income is expected to improve in the medium term. The same will
remain key monitorable over the medium term.
* Working capital intensive operations: Gross current assets were
around 220 days over the three fiscals ended March 31, 2024.
Working Capital operations are driven by business requirement to
maintain higher debtor and inventory levels. It is required to
extend long credit period. Furthermore, due to its business need,
it holds large work in process & inventory. Going forward working
capital management is expected to remain intensive over the medium
term.
Strength:
* Extensive industry experience of the proprietor: The proprietor
has experience of more than 2 decades in industry. This has given
them an understanding of the dynamics of the market and enabled
them to establish relationships with suppliers and customers. The
extensive experience of the promoters are expected to support
business risk over the medium term.
Liquidity: Stretched
Bank limit utilisation is moderate at around 80 percent for the
past twelve months ending Oct 2024. Cash accruals are expected to
be over INR20 lakhs, which is sufficient against term debt
obligation of around INR3.5 lakhs over the medium term. In
addition, it will act as a cushion to the liquidity of the firm.
Current ratio is healthy at 1.68 times on March31, 2024
Outlook: Stable
CRISIL Ratings believes VE will continue to benefit over the medium
term from its longstanding relationships with principals and
experience of the management to mitigate the inherent risk in
trading business.
Rating sensitivity factors
Upward factors
* Sustained revenue growth of more than 25% resulting in a steady
rise in cash generation
* Efficient working capital management and no major debt funded
capex plans
Downward factors
* Decline in revenue by over 25% resulting in lower profitability
and lower than expected accruals
* Large debt funded capex plans resulting in the weakening of the
capital structure
VE was set in 1980s. The firm provides third-party transport and
logistics solutions primarily for cement companies. The sole
proprietorship is owned and managed by Mr. Pramod Kumar.
VIVEK BROTHERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Vivek Brothers Pvt Ltd
Mahaveer Apartment
DE-15, Baguihati Desh Bandhu Nagar
North 24 Pargans,
Kolkata, West Bengal - 700059
Insolvency Commencement Date: December 17, 2024
Estimated date of closure of
insolvency resolution process: June 15, 2025
Court: National Company Law Tribunal, Kolkata Bench
Insolvency
Professional: CA Subodh Kumar Agrawal
1, Ganesh Chandra Avenue
3rd Floor, Room No. 301
Kolkata - 700013
Email: subodhka@gmail.com
Email: cirp.vivekbros@gmail.com
Last date for
submission of claims: December 31, 2024
WEBER HYDRAULIC: Voluntary Liquidation Process Case Summary
-----------------------------------------------------------
Debtor: Weber Hydraulic India Private Limited
Lunkad Sky Cruise
B Wing Survey No 210/3
Viman Nagar, Pune
Maharashtra, India 411014
Liquidation Commencement Date: December 10, 2024
Court: National Company Law Tribunal Mumbai Bench
Liquidator: Anagha Anasingaraju
1-2, Aishwarya Sankul
17 G.A. Kulkarni Path
Opposite Joshi's Railway Museum
Kothrud, Pune 411038
Email: rp.anagha@kanjcs.com
Tel No: 020-25466265/ 25461561
Last date for
submission of claims: January 9, 2025
=================
S I N G A P O R E
=================
ALPHA ASIA: Creditors' Proofs of Debt Due on Feb. 5
---------------------------------------------------
Creditors of Alpha Asia Macro Trends Fund Private Limited are
required to file their proofs of debt by Feb. 5, 2025, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 12, 2024.
The company's liquidator is:
Mr. Liew Khee Soon
60 Paya Lebar Road
#04-51, Paya Lebar Square
Singapore 409051
ASTON PROPERTIES: Creditors' Proofs of Debt Due on Feb. 7
---------------------------------------------------------
Creditors of Aston Properties Pte. Ltd. are required to file their
proofs of debt by Feb. 7, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Dec. 31, 2024.
The company's liquidators are:
Don M Ho
David Ho Chjuen Meng
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
ATLANTIC ACAPULCO: Creditors' Proofs of Debt Due on Jan. 6
----------------------------------------------------------
Creditors of:
I. Atlantic Acapulco Pte Ltd;
II. Atlantic Altamira (2020) Pte Ltd;
III. Atlantic Maya Pte Ltd;
IV. Atlantic Monterrey Pte Ltd;
V. Beluga Shipping Pte Ltd;
VI. Ibis Pacific Shipping Pte Ltd;
VII. Orca Shipping Pte Ltd;
VIII. Petronia Pacific Pte Ltd;
IX. Sawara Shipping Pte Ltd;
X. Mahuta Shipping Pte Ltd;
XI. Pulas Shipping Pte Ltd; and
XII. MCPEC Marine and Offshore Pte Ltd
are required to file their proofs of debt by Jan. 6, 2025, to be
included in the company's dividend distribution.
The companies commenced wind-up proceedings on Dec. 30, 2024.
The companies' liquidators are:
Goh Yeow Kiang Victor
Khor Boon Hong
Lee Yi Ying, Marie
Baker Tilly Consultancy (Singapore)
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
G.K. PTE: Creditors' Proofs of Debt Due on Feb. 6
-------------------------------------------------
Creditors of G.K. Pte. Ltd. are required to file their proofs of
debt by Feb. 6, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Dec. 30, 2024.
The company's liquidators are:
Don M Ho
David Ho Chjuen Meng
c/o DHA+ pac
63 Market Street
#05-01A Bank of Singapore Centre
Singapore 048942
SINGH MOTORSPORTS: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on Dec. 27, 2024, to
wind up the operations of Singh Motorsports Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidator is:
Gary Loh Weng Fatt
BDO Advisory Pte Ltd
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
=====================
S O U T H K O R E A
=====================
KDB LIFE: PEF Faces Liquidation as Insurer's Sale Becomes Unlikely
------------------------------------------------------------------
Chosun Biz reports that a private equity fund (PEF) established for
the acquisition of KDB Life is approaching liquidation, making the
sale of KDB Life virtually impossible. The Korea Development Bank
(KDB) is considering improving the financial structure through
capital increase after incorporating KDB Life as a subsidiary and
then selling it again.
According to the insurance industry, there were no companies
interested in acquiring KDB Life until the end of last year. An
industry source noted, "With the year-end approaching and the
martial law situation along with the impeachment crisis, there was
no atmosphere in the market for a sale," Chosun Biz relays.
Within and outside the insurance industry, there are projections
that efforts to resell will be impossible, considering that six
attempts at sale over the past decade have all failed, Chosun Biz
says. Moreover, the private equity fund (KDB CANSUS VALUE Private
Equity Company) created for the acquisition of KDB Life is also
facing liquidation. This fund was established in 2010 when the
Korea Development Bank acquired Kumho Life, KDB Life's predecessor,
along with CANSUS Asset Management, and has a maximum duration of
15 years, meaning it must be liquidated this year. Even if a
company shows interest, there is insufficient absolute time for a
sale.
It is reported that the Korea Development Bank's plan to
incorporate KDB Life and invest capital over 2 to 3 years to
normalize management before reselling is likely. KDB Life will
enter the market carrying the banner of a public institution
subsidiary.
According to Chosun Biz, KDB Life, which has undergone several
restructuring processes, recorded a net profit of KRW5.9 billion in
the third quarter of last year, breaking free from a net loss of
KRW75.4 billion during the same period the previous year. The
cumulative net profit for the third quarter of last year was
reported at KRW12.9 billion. During the same period, insurance
operating revenue increased from KRW408.4 billion to KRW437.7
billion, while operating profit rose from KRW2.9 billion to KRW27.1
billion.
Other management indicators are also improving, the report notes.
In the first half of last year, KDB Life's average monthly
first-year insurance premium was KRW3.44 billion, nearly doubling
compared to KRW1.69 billion during the same period the previous
year. The proportion of sales of protection-type insurance, which
is key under the new accounting system (IFRS 17), also expanded
from 78.1% to 85.3% during the same period. Recently, KDB Life has
been diversifying by entering the long-term care industry.
However, the solvency ratio (KIX) indicator, which measures
soundness, was at 155.4% in the first half of last year, barely
surpassing the financial authorities' recommended level of 150%,
Chosun Biz states. So far, the Korea Development Bank has injected
KRW1.5 trillion, but it is still assessed as having weak financial
soundness. For the normalization of KDB Life, it is reported that
an additional capital investment of up to 1 trillion won is needed.
This is why KDB Life is seen as less attractive compared to other
insurance companies available in the market.
According to Chosun Biz, the Korea Development Bank's concerns are
deepening. This is because accepting KDB Life as a subsidiary makes
an additional capital increase of around 1 trillion won essential.
It seems unavoidable for a state-run bank funded by taxes to face
criticism for propping up a failing financial institution with
taxpayer money. A spokesperson for the Korea Development Bank
noted, "We are organizing our position regarding the liquidation of
the private equity fund."
About KDB Life
KDB Life Insurance Company Ltd. provides a wide range of life
insurance products and related services. The Company markets its
products through individuals and groups. KDB Life serves customers
throughout the Republic of Korea.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-April 2024, Fitch Ratings affirmed and then withdrew KDB Life
Insurance Co., Ltd.'s (KDB Life) Insurer Financial Strength (IFS)
Rating of 'BBB-' (Good) and its Long-Term Issuer Default Rating
(IDR) of 'BB+'. The Outlook on the ratings is Negative. Fitch has
chosen to withdraw the ratings of KDB Life for commercial reasons.
Fitch will no longer provide ratings or analytical coverage for
this entity.
*********
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.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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