/raid1/www/Hosts/bankrupt/TCRAP_Public/250129.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 29, 2025, Vol. 28, No. 21
Headlines
A U S T R A L I A
AUSNOVA SERVICES: First Creditors' Meeting Set for Feb. 6
BROWN COW: Second Creditors' Meeting Set for Feb. 5
PEPPER SPARKZ NO.7: Fitch Hikes Rating on Class F Notes to 'BB+sf'
SHIKARA PTY: Second Creditors' Meeting Set for Feb. 3
SSM CONSULTING: First Creditors' Meeting Set for Feb. 4
STAR ENTERTAINMENT: Cerberus Woos Creditor Group For Slice of Debt
WISHBONE GOLD: First Creditors' Meeting Set for Feb. 5
C H I N A
CHINA VANKE: Shares Jump on State Support, Management Reshuffle
CHINA WATER: S&P Affirms 'BB+' LT ICR on Easing Capex Burden
LUOKUNG TECHNOLOGY: Reports $11.59-Mil. Net Loss in H1 2024
TCTM KIDS: Financial Condition Raises Going Concern Doubt
H O N G K O N G
NEW WORLD: Refutes Rumours of Default Risk
I N D I A
A.K. DAS: Ind-Ra Gives BB+ Rating, Outlook Positive
ALBA ASIA: CARE Keeps D Debt Rating in Not Cooperating Category
ALFA ONE: CARE Keeps D Debt Rating in Not Cooperating Category
AMBER AUTOMOBILES: CARE Keeps B- Debt Rating in Not Cooperating
AVIOM INDIA: RBI Supersedes Board, To Start Bankruptcy Process
BORN UNICORN: Insolvency Resolution Process Case Summary
C P ARORA ENGINEERS: Insolvency Resolution Process Case Summary
CHHATRAPATI SAMBHAJI: Ind-Ra Keeps BB- Rating in NonCooperating
CONTOUR STEEL: CARE Keeps D Debt Ratings in Not Cooperating
DEEP LUMBERS: CARE Keeps D Debt Ratings in Not Cooperating
F.ROBIN POWER: Ind-Ra Affirms BB+ Loan Rating, Outlook Negative
GURVINDER SINGH: CARE Keeps C Debt Ratings in Not Cooperating
HINDUSTAN UNILEVER: NCLAT Dismisses Insolvency Proceedings Plea
IL&FS ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
JET FREIGHT: Ind-Ra Moves BB+ Bank Loan Rating to NonCooperating
JOGINDER SINGH: CARE Keeps C Debt Rating in Not Cooperating
LAXMINARAYAN SHIVHARE: CARE Keeps D Ratings in Not Cooperating
MAHA ASSOCIATED: CARE Keeps D Debt Ratings in Not Cooperating
MARYMATHA INFRASTRUCTURE: Ind-Ra Cuts Bank Loan Rating to D
MUNIRAJ ENTERPRISE: CARE Keeps D Debt Rating in Not Cooperating
OJAS INTERIO: Ind-Ra Moves BB+ Bank Rating to NonCooperating
OMID ENGINEERING: CARE Keeps D Debt Rating in Not Cooperating
PARAKKOTT INVESTMENTS: Liquidation Process Case Summary
PARENTAL DRUGS: Court Approves IHL Lifescience's Acquisition Bid
PINAKIN PLASTOFORMING: CARE Keeps D Ratings in Not Cooperating
PITAMBAR AGRO: Ind-Ra Moves BB- Bank Rating to NonCooperating
PRATIBHA KRUSHI: CARE Keeps D Debt Ratings in Not Cooperating
QUINN LODGINGS: Voluntary Liquidation Process Case Summary
RADHE FOODS: CARE Keeps D Debt Rating in Not Cooperating Category
RAGHAV SULZCON: CARE Keeps B- Debt Rating in Not Cooperating
REETA AND SONS: CARE Keeps B Debt Rating in Not Cooperating
SARVOTTAM ATTA: CARE Keeps D Debt Ratings in Not Cooperating
SASTIKUMAR FARMS: Ind-Ra Assigns BB Loan Rating, Outlook Stable
SATMAN AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
SHREE VARDHMAN: Insolvency Resolution Process Case Summary
SUKH SAGAR: CARE Keeps D Debt Rating in Not Cooperating Category
SWAMI DEVI: CARE Keeps C Debt Rating in Not Cooperating Category
TARACHAND INTERNATIONAL: CARE Keeps D Ratings in Not Cooperating
TRUELIXIR LIFE: Ind-Ra Moves B Loan Rating to NonCooperating
V S EDUCATION: CARE Keeps C Debt Rating in Not Cooperating
VAMSADHARA GINNING: CARE Keeps D Debt Rating in Not Cooperating
VANTAGE MACHINE: CARE Keeps D Debt Rating in Not Cooperating
VIBRANT FAB: CARE Keeps D Debt Ratings in Not Cooperating Category
VRUKSHA MICROFIN: Ind-Ra Affirms BB Loan Rating, Outlook Stable
M A L A Y S I A
CAPITAL A: Deadline to Finalize Sale Extended to Mar. 24
N E W Z E A L A N D
BLACK ORIGIN: Creditors' Proofs of Debt Due on Feb. 28
LEO'S CAR: Court to Hear Wind-Up Petition on Feb. 4
MOET INVESTMENTS: Creditors' Proofs of Debt Due on Feb. 20
TE RAPA MOTOR: Hamilton Motelier Faces Liquidations
ULTIMATE SCAFFOLDING: Creditors' Proofs of Debt Due on Feb. 26
VILLAGE CAFE: Court to Hear Wind-Up Petition on Feb. 5
S I N G A P O R E
GLADES PROPERTIES: Creditors' Proofs of Debt Due on Feb. 24
GRAND HARBOUR FUND: Court to Hear Wind-Up Petition on Feb. 7
GRAND HARBOUR: Court to Hear Wind-Up Petition on Feb. 14
SINGNET SOLUTIONS: Court Enters Wind-Up Order
SIR MONEY: Court Enters Wind-Up Order
S R I L A N K A
OXFORD COLLEGE: Fitch Revises National LT Rating to 'BB-(lka)'
[*] Fitch Affirms 'BB+(lka)' National Ratings on 3 Sri Lankan Banks
- - - - -
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A U S T R A L I A
=================
AUSNOVA SERVICES: First Creditors' Meeting Set for Feb. 6
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Ausnova
Services Pty Ltd will be held on Feb. 6, 2025 at 11:00 a.m. via
virtual meeting.
Steve Naidenov of Aston Chace Group was appointed as administrator
of the company on Jan. 28, 2025.
BROWN COW: Second Creditors' Meeting Set for Feb. 5
---------------------------------------------------
A second meeting of creditors in the proceedings of Brown Cow Cafe
Sunbury Pty Ltd has been set for Feb. 5, 2025 at 11:00 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 Feb. 4, 2025 at 5:00 p.m.
Roberto Crispino and Richard Albarran of Hall Chadwick were
appointed as administrators of the company on Dec. 19, 2024.
PEPPER SPARKZ NO.7: Fitch Hikes Rating on Class F Notes to 'BB+sf'
------------------------------------------------------------------
Fitch Ratings has upgraded 13 and affirmed 8 classes of
asset-backed floating-rate notes from three Pepper SPARKZ
transactions. Fitch has also revised the Outlook on 11 notes to
Positive, from Stable.
The transactions are backed by pools of first-ranking Australian
automotive and equipment loan and lease receivables originated by
Pepper Asset Finance Pty Limited, a subsidiary of Pepper Money
Limited (Pepper). The notes were issued by BNY Trust Company of
Australia Limited as trustee.
The upgrades were driven by the build-up of credit enhancement
(CE). The Positive Outlooks reflect the notes' sensitivity to
decreased defaults and increased recoveries against its expected
increase in CE over the next 12 months.
Entity/Debt Rating Prior
----------- ------ -----
Pepper SPARKZ Trust No.8
A1-a AU3FN0085213 LT AAAsf Affirmed AAAsf
A1-x AU3FN0085221 LT AAAsf Affirmed AAAsf
B AU3FN0085239 LT AAAsf Upgrade AAsf
C AU3FN0085247 LT AAsf Upgrade A+sf
D AU3FN0085254 LT Asf Upgrade BBB+sf
E AU3FN0085262 LT BBB-sf Upgrade BB+sf
F AU3FN0085270 LT BB-sf Affirmed BB-sf
Pepper SPARKZ Trust No.7
A1-a AU3FN0080073 LT AAAsf Affirmed AAAsf
A1-x AU3FN0080081 LT AAAsf Affirmed AAAsf
B AU3FN0080099 LT AAAsf Upgrade AAsf
C AU3FN0080107 LT AAsf Upgrade Asf
D AU3FN0080115 LT Asf Upgrade BBBsf
E AU3FN0080123 LT BBBsf Upgrade BB+sf
F AU3FN0080131 LT BB+sf Upgrade BB-sf
Pepper SPARKZ Trust No.6
A1-a AU3FN0077558 LT AAAsf Affirmed AAAsf
A1-x AU3FN0077541 LT AAAsf Affirmed AAAsf
B AU3FN0077533 LT AAAsf Affirmed AAAsf
C AU3FN0077525 LT AAAsf Upgrade AA-sf
D AU3FN0077517 LT AA+sf Upgrade A-sf
E AU3FN0077509 LT A+sf Upgrade BBB-sf
F AU3FN0077491 LT A-sf Upgrade BBsf
KEY RATING DRIVERS
Stable Asset Performance: Obligor default risk is a key assumption
in its quantitative analysis. As of end-November 2024, cumulative
net losses for SPARKZ 6, 7 and 8 were 1.3%, 1.3% and 0.3%,
respectively, compared to the lifetime loss rates of 3.1%, 2.5% and
2.9% projected at closing. 30+ day arrears were 2.2%, 1.9% and
1.5%, respectively, against Fitch's 3Q24 Dinkum ABS Index 30+ day
arrears of 1.57%. 60+ day arrears were 1.1%, 0.9% and 0.8%,
compared with the index's 0.80%. Cumulative recoveries were 19.8%,
16.2% and 15.9%, respectively, below its recovery base case of
35.0%. Recovery rates may be understated as there may be
receivables that have defaulted but are yet to receive full
recoveries.
Fitch used the following weighted-average (WA) base-case remaining
default rates (and 'AAAsf' multiples) in its analysis:
SPARKZ 6: 3.44% (5.00x)
SPARKZ 7: 3.75% (5.00x)
SPARKZ 8: 4.50% (4.48x)
The recovery base-case for electric vehicles (EV) is 24.0%, with a
'AAAsf' recovery haircut of 60.0%, and is 35.0% for non-EVs, with a
'AAAsf' recovery haircut of 50.0%.
Tight Labour Market Supports Outlook: Portfolio performance is
supported by Australia's continued economic growth and tight labour
market, despite rapid interest rate hikes in 2022-2023. GDP growth
was 0.8% for the year ended September 2024 and unemployment was
4.0% in December 2024. Fitch forecasts GDP growth of 1.6% in 2025
rising to 2.1% in 2026, with unemployment at 4.5%, decreasing to
4.2% in 2026. This reflects Fitch's expectation that the effects of
restrictive monetary policy and persistent inflation will continue
to hinder domestic demand.
CE Supports Ratings: Its cash flow analysis incorporates Fitch's
updated base-case default and recovery expectations, portfolio
compositions and the build-up of CE. The notes can withstand all
Fitch stresses at their assigned rating levels. The Positive
Outlooks reflect the notes' sensitivity to decreased defaults and
increased recoveries against its expected increase in CE over the
next 12 months.
Low Operational and Servicing Risk: All receivables were originated
by Pepper Asset Finance, which demonstrated adequate capability as
originator, underwriter and servicer. Pepper is not rated by Fitch.
Servicer disruption risk is mitigated by back-up servicing
arrangements. The nominated backup servicer is BNY Trust Company of
Australia Limited. Fitch undertook an operational and file review
and found that the operations of the originator and servicer were
comparable with those of other auto and equipment lenders.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Transaction performance may be affected by changes in market
conditions and the economic environment. Weakening asset
performance is strongly correlated with increasing levels of
delinquencies and defaults that could reduce CE available to the
notes.
Unanticipated increases in the frequency of defaults could produce
loss levels higher than Fitch's base case and are likely to result
in a decline in CE and remaining loss-coverage levels available to
the notes. Decreased CE may make certain note ratings susceptible
to negative rating action, depending on the extent of coverage
decline. Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions. Fitch stresses the
recovery rate to isolate the effect of a change in recovery
proceeds at the borrower level.
Downgrade Sensitivities
SPARKZ 6
Notes: A1-a / A1-x / B / C / D / E / F
Rating: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf / A+sf / A-sf
10% defaults increase: AAAsf / AAAsf / AAAsf / AAAsf / AAsf / Asf /
BBB+sf
25% defaults increase: AAAsf / AAAsf / AAAsf / AA+sf / AA-sf / A-sf
/ BBBsf
50% defaults increase: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBB+sf
/ BBB-sf
10% recoveries decrease: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf /
A+sf / A-sf
25% recoveries decrease: AAAsf / AAAsf / AAAsf / AAAsf / AA+sf /
A+sf / BBB+sf
50% recoveries decrease: AAAsf / AAAsf / AAAsf / AAAsf / AAsf / Asf
/ BBB+sf
10% defaults increase/10% recoveries decrease: AAAsf / AAAsf /
AAAsf / AAAsf / AAsf / Asf / BBB+sf
25% defaults increase/25% recoveries decrease: AAAsf / AAAsf /
AAAsf / AA+sf / A+sf / A-sf / BBBsf
50% defaults increase/50% recoveries decrease: AAAsf / AAAsf /
AA+sf / AA-sf / A-sf / BBB-sf / BBsf
SPARKZ 7
Notes: A1-a / A1-x / B / C / D / E / F
Rating: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf / BB+sf
10% defaults increase: AAAsf / AAAsf / AAAsf / AA-sf / A-sf /
BBB-sf / BBsf
25% defaults increase: AAAsf / AAAsf / AA+sf / A+sf / BBB+sf /
BB+sf / BB-sf
50% defaults increase: AAAsf / AAAsf / AA-sf / Asf / BBBsf / BBsf /
Bsf
10% recoveries decrease: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf
/ BB+sf
25% recoveries decrease: AAAsf / AAAsf / AAAsf / AAsf / Asf /
BBB-sf / BBsf
50% recoveries decrease: AAAsf / AAAsf / AAAsf / AA-sf / A-sf /
BBB-sf / BBsf
10% defaults increase/10% recoveries decrease: AAAsf / AAAsf /
AAAsf / AA-sf / A-sf / BBB-sf / BBsf
25% defaults increase/25% recoveries decrease: AAAsf / AAAsf /
AA+sf / A+sf / BBB+sf / BB+sf / B+sf
50% defaults increase/50% recoveries decrease: AA+sf / AAAsf / A+sf
/ BBB+sf / BBB-sf / B+sf / below Bsf
SPARKZ 8
Notes: A1-a / A1-x / B / C / D / E / F
Rating: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBB-sf / BB-sf
10% defaults increase: AAAsf / AAAsf / AA+sf / AA-sf / A-sf / BB+sf
/ B+sf
25% defaults increase: AAAsf / AAAsf / AAsf / A+sf / BBB+sf / BB+sf
/ Bsf
50% defaults increase: AA+sf / AAAsf / A+sf / A-sf / BBB-sf / BB-sf
/ below Bsf
10% recoveries decrease: AAAsf / AAAsf / AAAsf / AA-sf / A-sf /
BBB-sf / BB-sf
25% recoveries decrease: AAAsf / AAAsf / AA+sf / AA-sf / A-sf /
BBB-sf / B+sf
50% recoveries decrease: AAAsf / AAAsf / AA+sf / AA-sf / A-sf /
BB+sf / Bsf
10% defaults increase/10% recoveries decrease: AAAsf / AAAsf /
AA+sf / AA-sf / A-sf / BB+sf / B+sf
25% defaults increase/25% recoveries decrease: AAAsf / AAAsf / AAsf
/ Asf / BBBsf / BBsf / below Bsf
50% defaults increase/50% recoveries decrease: AA+sf / AAAsf / Asf
/ BBB+sf / BB+sf / Bsf / below Bsf
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade could result from economic conditions, loan performance
and credit losses that are better than Fitch's baseline scenario or
sufficient build-up of credit enhancement that would fully
compensate for credit losses and cash flow stresses commensurate
with higher rating scenarios, all else being equal.
The 'AAAsf' rated notes are at the highest level on Fitch's scale
and cannot be upgraded. Therefore, upgrade sensitivities for these
notes are not relevant.
Upgrade Sensitivities
SPARKZ 6
Notes: D / E / F
Rating: AA+sf / A+sf / A-sf
10% defaults decrease/10% recoveries increase: AAAsf / AA-sf / Asf
SPARKZ 7
Notes: C / D / E / F
Rating: AAsf / Asf / BBBsf / BB+sf
10% defaults decrease/10% recoveries increase: AA+sf / A+sf /
BBB+sf / BBB-sf
SPARKZ 8
Notes: C / D / E / F
Rating: AAsf / Asf / BBB-sf / BB-sf
10% defaults decrease/10% recoveries increase: AA+sf / A+sf / BBBsf
/ BBsf
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information as part
of its ongoing monitoring.
Prior to the transaction closing, Fitch sought to receive a
third-party assessment conducted on the asset portfolio
information, but none was made available to Fitch for this
transaction.
As part of its ongoing monitoring, Fitch reviewed a small targeted
sample of the originator's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The issuer has informed Fitch that not all relevant underlying
information used in the analysis of the rated notes is public.
ESG Considerations
Pepper SPARKZ 6, 7 and 8 have an ESG Relevance Score of '4' for
Energy Management, which has a negative impact on the credit
profile and is relevant to the ratings in conjunction with other
factors. The score is higher than the baseline ESG Relevance Score
of '2' (no impact) for this general issue in the Australian auto
sector. This is because there is limited credit performance data
for EVs and available market data show notable differences in
recoveries between EVs and non-EVs. Fitch's analytical approach for
the transactions, in which EVs form 1.0%, 3.0% and 7.9% of the
pool, respectively, was not adjusted purely due to the green nature
of the underlying collateral, but Fitch references available market
data for EVs to determine its recovery assumptions.
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.
SHIKARA PTY: Second Creditors' Meeting Set for Feb. 3
-----------------------------------------------------
A second meeting of creditors in the proceedings of Shikara Pty Ltd
has been set for Feb. 3, 2025 at 11:00 a.m. via teleconference.
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. 30, 2025 at 5:00 p.m.
James Stuart McPherson of Meertens was appointed as administrator
of the company on Dec. 17, 2024.
SSM CONSULTING: First Creditors' Meeting Set for Feb. 4
-------------------------------------------------------
A first meeting of the creditors in the proceedings of SSM
Consulting Pty Ltd will be held on Feb. 4, 2025 at 12:00 p.m. at
the offices of Roger and Carson at Level 35, One International
Towers, 100 Barangaroo Avenue in Sydney and via teleconference.
Nicarson Natkunarajah of Roger and Carson was appointed as
administrator of the company on Jan. 27, 2025.
STAR ENTERTAINMENT: Cerberus Woos Creditor Group For Slice of Debt
------------------------------------------------------------------
The Australian Financial Review's Street Talk reports that New York
behemoth Cerberus Capital Management is canvassing Star
Entertainment's lender syndicate to identify banks or credit funds
willing to sell their debt, as the battered casino giant speeds
towards an insolvency and breakup of its assets.
Street Talk can reveal Cerberus' dealmakers have made it clear to
Star's lender group that they are interested in buying a slice of
its debt, which tops AUD400 million and is held by Westpac,
Barclays, Deutsche Bank and Soul Patts, among others. Sources said
the smaller lenders, who've run out of confidence with CEO Steve
McCann's turnaround plan and just want out, are Cerberus' best bet
of wedging itself into Star's capital structure, Street Talk says.
The Star Entertainment Group Limited (ASX:SGR) --
https://www.starentertainmentgroup.com.au/ -- is an Australia-based
company that provides gaming, entertainment and hospitality
services. The Company operates The Star Sydney (Sydney), The Star
Gold Coast (Gold Coast) and Treasury Brisbane (Brisbane). The
Company operates through three segments: Sydney, Gold Coast and
Brisbane. Sydney segment consists of The Star Sydney's casino
operations, including hotels, restaurants, bars and other
entertainment facilities. Gold Coast segment consists of The Star
Gold Coast's casino operations, including hotels, theatre,
restaurants, bars and other entertainment facilities. Brisbane
segment includes Treasury's casino operations, including hotel,
restaurants and bars. The Company also manages the Gold Coast
Convention and Exhibition Centre on behalf of the Queensland
Government. The Company also owns Broadbeach Island on which the
Gold Coast casino is located.
The Star Entertainment Group posted three consecutive annual net
losses of AUD198.6 million, AUD2.43 billion and AUD1.68 billion for
the years ended June 30, 2022, 2023, and 2024, respectively.
WISHBONE GOLD: First Creditors' Meeting Set for Feb. 5
------------------------------------------------------
A first meeting of the creditors in the proceedings of Wishbone
Gold WA Pty Ltd will be held on Feb. 5, 2025 at 11:00 a.m. via
virtual meeting only.
David Bryant and Quentin Olde of Ankura were appointed as
administrators of the company on Jan. 23, 2025.
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C H I N A
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CHINA VANKE: Shares Jump on State Support, Management Reshuffle
---------------------------------------------------------------
Reuters reports that a management reshuffle at China Vanke that
reinforced government support sent the developer's shares higher on
Jan. 28, as investors cheered the removal of near-term default
risks and hoped it would bring some stability to the struggling
property sector.
Analysts cautioned, however, that it remained to be seen to what
extent the local government of Shenzhen is planning to help Vanke
ease its financial stress, and said if its liquidity problems
persist even after the state support, it could further hamper
homebuyer confidence, Reuters relates.
According to Reuters, China Vanke, one of the best-known property
company names in China and currently around a third owned by
state-owned Shenzhen Metro, announced on Jan. 27 that Chairman Yu
Liang and CEO Zhu Jiusheng have stepped down, as it forecast a
record $6.2 billion net loss for 2024.
Xin Jie, the chairman of Shenzhen Metro, will become Vanke's
chairman, pointing to increased state oversight and expectations
the government would step in to contain any non-repayment risks as
the developer faces several debt maturity deadlines this year,
according to Reuters.
The Shenzhen government has enough resources to promote Vanke's
stable development through Shenzhen Metro, including injecting
capital into the state-owned enterprise if necessary, the Nanfang
Daily cited the local state-asset regulator as saying on Jan. 27.
Reuters relates that the newspaper also cited Shenzhen housing
authorities and banks as saying that they will help Vanke's
liquidity via asset disposals and financing.
"'State support' has always been there; the question is 'to what
extent'," JPMorgan analysts said in a research note, noting similar
support was extended by Shenzhen authorities to Vanke in 2023.
JPMorgan analysts said the latest developments still do not involve
equity investments or capital injections into Vanke, hinting that
the objective of the state intervention is to avoid a public bond
default and ensure completion of pre-sold homes, instead of
returning Vanke into a growing developer, Reuters relates.
Reuters says worries over Vanke's liquidity have intensified this
month, with the developer struggling to raise funds through the
disposal of assets and via bank financing amid a prolonged property
market slump.
Shenzhen-based Vanke's interest-bearing debt stood at CNY331.3
billion ($45.21 billion) at the end of June, with around $3.3
billion in public bonds maturing in the rest of this year, Reuters
discloses.
Reuters adds that Vanke's bonds gained on Jan. 27 after it said it
would redeem its 2027 notes CN149057=SZ worth CNY1 billion ($137.68
million) early in March, as investors were taking the early
redemption as a sign it would have no problem meeting its more
immediate obligations.
About China Vanke
China Vanke Co., Ltd. operates real estate development businesses.
The Company provides housing renovation, housing loans, real estate
brokerage, and other businesses. China Vanke also operates
logistics, material supply, and other businesses.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
22, 2025, S&P Global Ratings lowered its long-term issuer credit
rating on China Vanke Co. Ltd. by two notches to 'B-' from 'B+' and
its long-term issuer credit rating on China Vanke's subsidiary
Vanke Real Estate (Hong Kong) Co. Ltd. (Vanke HK) to 'B-' from 'B'.
S&P also lowered the issue rating on Vanke HK's senior unsecured
notes to 'B-' from 'B'. S&P placed all these ratings on CreditWatch
with negative implications.
The TCR-AP on Jan. 28, 2025, reported that Fitch Ratings has
downgraded Chinese homebuilder China Vanke Co., Ltd.'s Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B-',
from 'B+'. Fitch has also downgraded the Long-Term IDR on China
Vanke's wholly owned subsidiary, Vanke Real Estate (Hong Kong)
Company Ltd (Vanke HK), to 'CCC+', from 'B', and its senior
unsecured rating and the rating on its outstanding senior notes to
'CCC+', from 'B', with a Recovery Rating of 'RR4'. The ratings are
on Rating Watch Negative (RWN).
The downgrade reflects a deterioration in China Vanke's sales and
cash generation, which is eroding its liquidity buffer against
large capital market debt maturities in 2025.
CHINA WATER: S&P Affirms 'BB+' LT ICR on Easing Capex Burden
------------------------------------------------------------
S&P Global Ratings affirmed the 'BB+' long-term issuer credit
rating on China Water Affairs Group Ltd. (CWA). At the same time,
S&P affirmed the 'BB+' long-term issue rating on its senior
unsecured notes.
S&P said, "The stable rating outlook indicates our expectations
that CWA will continue to expand its core water business in China
with stable profitability over the next 12-18 months. We also
believe the company will reduce its capex as planned, which will
help it to gradually deleverage.
"We expect CWA's financial buffer to remain tight over the next
12-18 months. This is amid prolonged delays in tap water tariff
adjustments and elevated offshore interest rates, until recently.
We anticipate a gradual credit recovery over the next couple of
years if the company can successfully raise water tariffs and
remain disciplined in capital investments."
Some key cities, such as Nanjing and Changsha, started to approve
water tariff hikes in 2024. This supports CWA's tariff adjustment
proposals submitted to local governments for over 20 tap water
projects. By S&P's estimates, the company's average water tariff
will rise by 2%-3% annually over fiscals 2025-2027 (years ending
March 31, 2025-2027).
Over the last few years, margins for CWA's tap water supply segment
have been compressed due to delayed water tariff adjustments, which
led to a two percentage-point decline in margins for the segment in
fiscal 2024. Local governments have remained slow in raising
utilities tariffs because they have prioritized economic recovery
over the profitability of utilities. S&P projects the company's
ratio of funds from operations (FFO) to debt will average 13.3%
over fiscal 2025-2027, just above its downside trigger of 13%.
Successful execution of CWA's plan to reduce capex will be crucial.
S&P said, "We estimate the company's capex at HK$3.3 billion in
fiscal 2025 and about HK$2 billion thereafter, compared with HK$5.3
billion in fiscal 2024, upon the completion of some large water
construction projects. We anticipate the company will pursue less
capital-intensive means of capacity expansion, such as revamping or
upgrading existing plants, to meet incremental demand growth over
the next three to five years. These efforts should drive a debt
reduction of 1%-3% per year during fiscals 2026-2027, after
adjusted debt peaks at about HK$22.5 billion in fiscal 2025, in our
assessment."
Nevertheless, slower collection of receivables could drag CWA's
operating cash flow and partially offset its deleveraging efforts.
Its accounts receivable turnover has lengthened to 105 days in the
first half of fiscal 2025, from 87 days in fiscal 2024. This is due
to delayed payments from various local governments on water supply
construction and wastewater treatment projects. This situation will
likely persist over the next couple of years, in S&P's view, until
governments' fiscal constraints ease.
S&P said, "We believe financing cost pressure will ease. CWA is
poised to benefit from a decline in interest rates that started in
late 2024. As of September 2024, approximately 70% of the company's
borrowings denominated in the U.S. dollar or Hong Kong dollar were
on a floating-rate basis. With this, we estimate that a 100-basis
point (bp) reduction in interest rates could result in a 30 bps-40
bps improvement in CWA's ratio of FFO to debt for fiscal years 2025
and 2026.
"In addition to this favorable interest rate outlook, CWA is
optimizing its debt structure. The company plans to expand its
issuance of Chinese renminbi-denominated debt instruments,
including panda bonds and dim sum bonds. We project that the
company's average borrowing cost will decrease to 5.6% in fiscal
2025, and to 4.7%-5.3% in fiscals 2026 and 2027, from 5.8% in
fiscal 2024."
Well-planned refinancing mitigates tightening liquidity headroom. A
decline in CWA's cash balance and cash FFO in the past year
signifies weakening cash adequacy. To mitigate this, the company
has arranged a pipeline of issuances to meet its refinancing and
capital needs well in advance.
For example, the issuance of Chinese renminbi (RMB) 1 billion bonds
guaranteed by Credit Guarantee and Investment Facility
(AA/Stable/A-1+) in January 2025 was intended to refinance a
portion of CWA's offshore borrowings, potentially including U.S.
dollar bonds maturing in 2026. The company also issued its first
RMB500 million panda bonds in August 2024, and it is working on
further issuances. These refinancing efforts should replenish
liquidity.
Nevertheless, the increase in onshore debt over the past years has
raised CWA's priority debt ratio to about 56% as of September 2024,
highlighting an increasing risk of structural subordination. S&P
said, "We equalize the issue rating on CWA's U.S.
dollar-denominated senior notes with the issuer credit rating for
now, because we believe the company's pipeline of offshore
issuances over the coming 12 months, including those mentioned
above, should reduce the priority debt ratio back to about 50%."
S&P said, "We forecast steady growth and better margins for CWA's
core water supply operation business. The company's core tap water
business will sustain revenue growth of 4%-6% over the next two to
three years, in our assessment. This will be driven by stable
growth in sales volume, coupled with improving margins, given that
we anticipate more frequent government approvals for water tariff
increases."
Meanwhile, CWA's water connection revenue decline will likely
persist over the same period. Such revenue will narrow by about 17%
in fiscal 2025 and another 6% in fiscal 2026. This is mainly due to
a slowdown in residential property completions in China. Rapid
revenue growth in the company's pipeline direct drinking water
operations will partly mitigate the impact. We expect revenue from
this new business to grow by 20%-30% annually over the next two to
three years, albeit from a smaller base.
CWA's sale of exchangeable bonds in Kangda International
Environmental Co. Ltd. has removed a potential major pressure on
financial ratios. This signals the company will no longer increase
its stake in the wastewater treatment associate, which could cause
the FFO-to-debt ratio to drop well below the downside trigger of
13% upon consolidation. At the same time, CWA indicated a plan to
raise HK$2 billion through the sale of non-core assets, including a
warehousing and storage project in Hangzhou and some property
development projects. This will likely support CWA's liquidity
profile upon execution. S&P hasn't factored in the asset disposal
plan in its base-case assumptions because the timeline remains
uncertain.
S&P said, "The stable outlook on CWA reflects our expectation that
the company will continue to expand its core water business in
China and maintain stable profitability over the next 12-18 months.
We also expect that CWA will reduce its capex as planned, which
would help the company to gradually deleverage."
S&P could lower the ratings if CWA's ratio of FFO to debt fell to
and remained consistently below 13%. This could happen if:
-- It is unable to effectively implement its capex reduction plan,
and instead aggressively expands via debt-funded acquisitions or
raises its annual capex plans; or
-- Its core water supply business materially deteriorates due to
contracting sales volume or insufficient cost pass-through, which
could happen if the tariff adjustment policy is not well executed
by local governments.
-- Its financing cost decreases slower than S&P expects if high
offshore interest rates persist.
S&P may also lower the ratings if CWA's funding access tightens,
leading to the ratio of liquidity sources to uses weakening to less
than 1.1x over the next 12 months.
An upgrade of CWA is unlikely over the next 12-18 months. S&P could
upgrade CWA if it maintains the ratio of FFO to debt at above 25%
on a sustainable basis. This could be caused by:
-- Continued improvement in CWA's core water-supply business
through volume growth or tariff hikes that are higher than our
expectations;
-- Further deleveraging through disciplined financial management
and additional equity financing; and
-- Material earnings contribution from its pipeline-distributed
potable water business.
LUOKUNG TECHNOLOGY: Reports $11.59-Mil. Net Loss in H1 2024
-----------------------------------------------------------
Luokung Technology Corp. announced its unaudited financial results
for the six months ended June 30, 2024.
Financial Highlights for the Six Months Ended June 30, 2024:
* Revenues for the six months ended June 30, 2024 decreased
78.2%, to $1,351,496 from $6,197,913 for the six months ended June
30, 2023;
* Net loss of $11,590,311 for the six months ended June 30,
2024 as compared to net loss of $22,458,378 for the six months
ended June 30, 2023;
* Basic and diluted loss per share was $5.12 and $10.40 for
the six months ended June 30, 2024 and 2023; and
* Weighted average shares outstanding for the six months ended
June 30, 2024 were 2,223,447, compared to 2,125,368 for the six
months ended June 30, 2023, both of which were retroactively
restated to reflect the impact of the 8-to-1 reverse stock split
effective on September 17, 2024.
"In the first half of the 2024 fiscal year, our revenue was $1.4
million, a decrease of 78.2% from $6.2 million for the same period
of the 2023 fiscal year. The Company has made certain adjustments
to its business in response to market changes. It will continue to
strengthen and advance its smart city and IoT-related businesses.
Additionally, the Company plans to undertake a series of asset
restructuring and debt restructuring initiatives." said Mr. Song
Xuesong, the Company's Chief Executive Officer.
Liquidity and Capital Resources
At June 30, 2024 and December 31, 2023, the Company had cash
balances of approximately $351,021 and $83,986, respectively. A
significant portion of these funds are located in financial
institutions located in the PRC and will continue to be
indefinitely reinvested in the Company's operations in the PRC.
The Company's working capital deficit decreased by $4,862,147 to a
working capital deficit of $88,729,596 at June 30, 2024 from
$93,591,743 at December 31, 2023. This decrease in working capital
deficit is primarily attributable to an increase in cash of
approximately $267,000, an increase in other receivables and
prepayment of approximately $1,005,000, a decrease in accounts
payable of approximately $198,000, a decrease in accrued
liabilities and other payables of approximately $3,510,000 and a
decrease in lease liabilities – current portion of approximately
$657,000, offset by a decrease in accounts receivable, net of
allowance for expected credit losses of approximately $757,000.
As of June 30, 2024, the Company had $48,372,791 in total assets,
$101,723,927 in total liabilities, and $63,555,462 in total
shareholders' deficit.
The Company had incurred negative cash flows from operating
activities and net losses for the six months ended June 30, 2024,
which raise substantial doubt about the Company's ability to
continue as a going concern. In order to continue as a going
concern and mitigate our liquidity risk, the Company will need
additional capital resources, among other things. Management's
plans to obtain such resources for the Company include:
(1) endeavoring to enter into more sales contracts,
(2) increasing proceeds from loans from both unrelated and
related parties to provide the resources necessary to fund the
development of our business plan and operations, and
(3) increasing proceeds from loans from financial institutions
and/or existing investors to increase working capital in order to
meet capital demands.
A full-text copy of the Company's report filed on Form 6-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/53euka5n
About Luokung Technology
Luokung Technology Corp. is a leading spatial-temporal intelligent
big data services company, as well as a leading provider of LBS for
various industries in China. Backed by its proprietary technologies
and expertise in multi-sourced intelligent spatial-temporal big
data, Luokung has established city-level and industry-level
holographic spatial-temporal digital twin systems and actively
serves industries including smart transportation (autonomous
driving, smart highway and vehicle-road collaboration), natural
resource asset management (carbon neutral and environmental
protection remote sensing data service), and LBS smart industry
applications (mobile Internet LBS, smart travel, smart logistics,
new infrastructure, smart cities, emergency rescue, among others).
The Company routinely provides important updates on its website:
https://www.luokung.com.
Anson House, Singapore-based MRI Moores Rowland LLP, the Company's
auditor since 2023, issued a 'going concern' qualification in its
report dated October 22, 2024, citing that the Company incurred
losses for the year ended December 31, 2023, net current
liabilities of the Company amounted to $84,146,605 as of December
31, 2023. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
TCTM KIDS: Financial Condition Raises Going Concern Doubt
---------------------------------------------------------
TCTM Kids IT Education, Inc. disclosed in its Financial Condition
and Results of Operations filed with the U.S. Securities and
Exchange Commission for the six months ended June 30, 2024, that
there is substantial doubt about its ability to continue as a going
concern doubt.
TCTM said, "Our principal sources of liquidity have been cash
generated from operating activities. As of December 31, 2023 and
June 30, 2024, we had RMB227.6 million and RMB108.5 million
(US$14.9 million), respectively, in cash and cash equivalents, time
deposits and restricted cash. Our cash consists of cash in bank and
deposits placed in third-party payment processors. Cash of the
variable interest entities, in the amount of RMB5.9 million (US$0.8
million) as of June 30, 2024, can be used only to settle
obligations of the VIEs. Cash equivalents consist of
interest-bearing certificates of deposit with initial term of no
more than three months when purchased. Time deposits, which mature
within one year as of the balance sheet date, represent
interest-bearing certificates of deposit with an initial term of
greater than three months when purchased. Restricted cash primarily
consists of tuition fees in the escrow account supervised by
relevant state and provincial education bureaus as well as the
certificate of deposit related to the secured loan with the
Shanghai Pudong Development Bank."
The Company has not attained profitable operations and is dependent
upon obtaining financing to pursue any operating activities. The
Company has incurred recurring losses from operations, and as at
June 30, 2023 and June 30, 2024, had an accumulated deficit of
RMB2,479.6 million and RMB2,542.5 million (US$349.9 million),
respectively. The aforementioned raises substantial doubt about the
Company's ability to continue as a going concern. The Company's
continuation as a going concern is dependent on the Company's
ability to meet obligations as they become due and to obtain
sufficient recurring revenue required to fund operations.
The Company said, "We believe that our current cash, cash
equivalents, time deposits, restricted cash and anticipated cash
flow from operations will be sufficient to meet our anticipated
cash needs, including our cash needs for working capital and
capital expenditures, for at least the next 12 months."
A full-text copy of the Company's report filed on Form 6-K with the
Securities and Exchange Commission is available at:
https://tinyurl.com/529ezrtd
About TCTM
TCTM Kids IT Education, Inc. is a leading provider of IT-focused
supplementary STEM education services in the People's Republic of
China. Through its innovative education platform combining live
distance instruction, classroom-based tutoring and online learning
modules, TCTM offers IT-focused supplementary STEM education
programs, including computer coding and robotics programming
courses, etc., targeting students between three and eighteen years
of age. Aiming to encourage "code to learn," TCTM embraces the
latest trends in STEM education and technology to develop
children's logical thinking and learning abilities while allowing
them to discover their interests and potential.
As of June 30, 2024, the Company had US$92.7 million, US$276
million in total liabilities, and US$183.3 million in total
deficit.
=================
H O N G K O N G
=================
NEW WORLD: Refutes Rumours of Default Risk
------------------------------------------
South China Morning Post reports that New World Development (NWD)
said Jan. 23 that it will continue to prioritise real estate
development as its core business this year and proceed with project
launches, amid market rumours that the company is at risk of a
default.
Residential sales in Hong Kong continue to improve, and the company
will continue to "market its diversified projects in the mainland"
market, it said in a statement.
"The group's management adheres to a business policy rooted in
prudence and pragmatism, strengthening its market-oriented approach
and enhancing project return rates," the statement said, according
to the Post.
The company delivered more than 70 per cent of its annual sales
target for the mainland China market within the six months leading
up to December, it added.
In a separate filing to the Hong Kong stock exchange, also on Jan.
23, the company reiterated its plan to "carry out its businesses as
usual and continue to engage with its stakeholders, including its
lenders and holders of debt securities," the Post reports.
The Post relates that the statements came after Bloomberg reported
earlier on Jan. 23 that PJT Partners, a debt advisory firm, talked
to some of the distressed developer's creditors about the
possibility that debt negotiations could lead to a default.
Specifically, certain insolvency clauses in NWD's dollar bonds
could potentially be triggered after the company initiated
discussions with lenders, according to the report.
On Jan.20, NWD issued a statement saying that it was not engaged in
discussions with creditors about a potential restructuring of its
existing debt, reports the Post. The statement followed a media
report that NWD had sent out a letter to its lenders seeking a
waiver on loan conditions.
Once a cornerstone among Hong Kong's blue-chip stocks, NWD was
ejected from the Hang Seng Index in November and is battling severe
financial challenges and declining investor confidence following a
slew of management changes and a record full-year loss of HK$19.7
billion (US$2.5 billion) last year.
As of June 30, the company had HK$123.7 billion in consolidated net
debt, the Post discloses citing the company's annual report. NWD's
net gearing, or debt-to-equity ratio, stood at 55 per cent, ranking
among the highest in the industry. Additionally, it held
interest-bearing loans and bonds amounting to HK$151.6 billion.
NWD has refinanced 43 per cent of HK$41.6 billion in bank loans
that were due for repayment within a year to June 2025. Those loans
cost 5.3 per cent in interest, according to its 2024 annual
report.
Chairman Henry Cheng Kar-shun picked Echo Huang Shaomei as the new
group CEO on November 29, replacing Eric Ma Siu-cheung, who held
the top post for barely two months. He had replaced Adrian Cheng in
September.
About New World Development
New World Development Company Limited -- https://www.nwd.com.hk/ --
an investment holding company, operates in the property development
and investment business in Hong Kong and Mainland China. Its
property portfolio includes residential, retail, office, and
industrial properties. The company is also involved in the loyalty
program, fashion retailing and trading, and land development
businesses; and development and operation of sports park. In
addition, it operates club houses, golf and tennis academies, and
shopping malls; constructs and operates Skycity complex; and
operates department stores.
=========
I N D I A
=========
A.K. DAS: Ind-Ra Gives BB+ Rating, Outlook Positive
---------------------------------------------------
India Ratings and Research (Ind-Ra) has rated A.K. Das Associates
Limited's (AKDAL) bank facilities as follows:
-- INR85 mil. Fund-based working capital limit assigned with IND
BB+/Positive/IND A4+ rating; and
-- INR515 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.
Detailed Rationale of the Rating Action
The ratings reflect AKDAL's average credit metrics with a high net
leverage in FY24 on account of the loan taken to construct a
four-star hotel in Bhubaneshwar. However, the ratings draw comfort
from the funding tie-up and the project nearing completion date
with the hotel likely commencing operations in July 2025 as well as
the promoters long experience.
The Positive Outlook reflects Ind-Ra's expectation of an
improvement in the scale of operations and credit metrics in FY26
with the commencement of hotel operations.
Detailed Description of Key Rating Drivers
Average Credit Metrics with High Net Leverage in FY24: AKDAL's
credit metrics were average with its gross interest coverage
(operating EBITDA/gross interest expenses) at 5.64x in FY24 (FY23:
5.94x) and the net leverage (total adjusted net debt/operating
EBITDAR) at 3.33x (4.30x). In FY24, the interest coverage declined
on account of an increase in the gross interest expenses to
INR25.86 million (FY23: INR18.59 million), despite an improvement
in the EBITDA to INR145.93 million (INR110.47 million). However,
the net leverage improved, but remained high, on account of
improved EBITDA. Ind-Ra expects the credit metrics to deteriorate
in the medium term, considering the term loans availed for its
ongoing debt-funded capex. AKDAL's capex of INR1,360 million, which
is to be completed by June 2025, is being funded through a term
loan of INR900 million, equity and internal accruals, and unsecured
loans of INR460 million. Till September 2024, AKDAL incurred
INR732.77 million of capex, which was funded through a term loan of
INR361.69 million, and equity, internal accruals and unsecured
loans of INR371.08 million.
Tender-based Business: Given the intense competition, the revenue
and profitability of companies in engineering, procurement, and
construction (EPC) business entirely depend on the ability to win
tenders. Thus, it has to bid aggressively to obtain contracts,
which restricts the operating margin to moderate levels.
Likely Improvement in Scale of Operations: AKDAL has a medium scale
of operations with its revenue increasing to INR1,038.86 million in
FY24 (FY23: INR733.83 million) and, on account of higher execution
of EPC works. Till 7MFY25, AKDAL booked revenue of INR543.3
million. As of November 2024, it had an order book of INR3,000
million, to be executed by March 2026.
Diversification into Hospitality Segment: AKDAL is diversifying
into the hospitality segment with its hotel likely commencing
operations from July 2025. The hotel has proximity to airport,
expressway and bus terminals. Ind-Ra expects the hotel to start
generating revenue from July 2025; however, the timely commencement
of the operations without any major delay will remain a key rating
sensitivity as the term loan repayment will commence from June
2025.
Experienced Promoters: The ratings are supported by the promoters'
nearly four decades of experience in the EPC industry and around
one decade of experience in the hospitality industry, leading to
established relationships with customers as well as suppliers.
Liquidity
Stretched: AKDAL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements. The company's average maximum utilization of the
fund-based limits was 98.57% and non-fund-based limits was 77.57%
during the 12 months ended October 2024 and is likely to have
remained at similar levels during November and December 2024. The
cash flow from operations increased to INR115.80 million in FY24
(FY23: INR47.08 million) owing to favorable changes in working
capital and the improved EBITDA. The free cash flow also improved
but remained negative at INR16.14 million in FY24 (FY23: negative
INR116.36 million) due to the capex of INR131.94 million (INR163.44
million. The net working capital cycle reduced but remained
elongated at 104 days in FY24 (FY23: 194 days), mainly because of a
decline in the receivables period to 177 days (256 days) and an
increase in the payable period to 181 days (145 days). The cash and
cash equivalents stood at INR7.24 million at FYE24 (FYE23: INR2.36
million). AKDAL has debt repayment obligations of INR10.6 million
and INR45.6 million in FY25 and FY26, respectively.
Rating Sensitivities
Negative: A delay in completion of the hotel project and/or a
decline in the scale of operations, leading to deterioration in the
overall credit metrics, with the net leverage exceeding 4.5x and a
further pressure on the liquidity position, all on a sustained
basis, could lead to a negative rating action.
Positive: Timely completion of the hotel project and/or a
substantial increase in the scale of operations while maintaining
the overall credit metrics, with the net leverage remaining below
4.5x and an improvement in the liquidity profile, all on a
sustained basis, could lead to a positive rating action.
About the Company
Incorporated in 1996, Odisha-based AKDAL undertakes construction,
designing, engineering, testing and commissioning of overhead
transmission lines, substations and emergency restoration work. The
company is promoted by Amiya Kanta Das, Sovarani Das and Pranati
Das. AKDAL is also constructing a four-star hotel under Novotel
brand, which is likely to commence operations from July 2025.
ALBA ASIA: CARE Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Alba Asia
Private Limited (AAPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 17,
2024, placed the rating(s) of AAPL under the 'issuer
non-cooperating' category as AAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 2, 2024,
December 12, 2024 and December 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Alba Asia Private Limited (erstwhile ABG LDA Bulk Handling Private
Limited) (AAPL) is a Joint Venture between ABG Infralogistics
Limited (ABG Infra) through its wholly owned subsidiary, ABG Ports
Pvt. Ltd. and Louis Dreyfus Armateurs (LDA), France, holding 51%
and 49% stake respectively. AAPL owns, operates, maintains and
rents cranes of various types and capacity, which are used for
different applications, mainly by the companies from the ports
sector. The company at present has operations at Visakhapatnam Port
and New Mangalore Port.
ALFA ONE: CARE Keeps D Debt Rating in Not Cooperating Category
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Alfa One
Hi-Tech Infra Private Limited (AOHIPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2024, placed the rating(s) of AOHIPL under the 'issuer
non-cooperating' category as AOHIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. AOHIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 19, 2024, November 29, 2024 and December 9, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Alfa One Hi-Tech Infra Private Limited (AOHIPL) is a Kannur-based
company engaged in civil constructions for commercial and
residential buildings. Mr. Luthufuddeen P M, the promoter of AOHT,
promoted Alfa One Global Builders Private Ltd (AOGB) in the year
2008 for development of residential and commercial real estate
projects. Mr. Luthufuddeen, the managing director of AOHT, manages
the day-to-day operations of the company.
AMBER AUTOMOBILES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Amber
Automobiles (AA) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL B-/Stable (ISSUER NOT
COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 12,
2023, placed the rating(s) of AA under the 'issuer non-cooperating'
category as AA had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. AA continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated October 27, 2024, November 6,
2024, November 16, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Dahod (Gujarat) based Amber Automobiles was established in July,
2013 by Mr. Rakesh Bakaliya as an authorized dealer of Mahindra &
Mahindra Limited. Commercial operations of AMA were commenced from
July, 2014 onwards. AA is an authorized dealer for passenger
vehicles and commercial vehicles for Mahindra & Mahindra Limited.
The firm is also engaged in sales of second-hand vehicles, spare
parts and accessories. Mr. Rakesh Bakaliya looks after the entire
operations of the company. AA has three associate firms namely
Amber Sales, Amber Tractors and Alkhnanda stone Quarry.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of AA into ISSUER NOT
COOPERATING category vide press release dated May 9, 2024 on
account of its inability to carry out a review in the absence of
requisite information from the firm.
AVIOM INDIA: RBI Supersedes Board, To Start Bankruptcy Process
--------------------------------------------------------------
Reuters reports that the Reserve Bank of India said on Jan. 27 it
has superseded the board of Aviom India Housing Finance due to
governance concerns and payment defaults and plans to start
bankruptcy proceedings against the company.
Reuters relates that the Reserve Bank of India (RBI) has appointed
Ram Kumar, the former chief general manager of state-run Punjab
National Bank as the administrator for the housing finance company,
the central bank said.
It did not specify the nature of the governance concerns.
An email sent to Aviom's grievance redressal team did not elicit an
immediate response, notes the report. A media contact for the
company was not immediately available.
Aviom is a Delhi-based housing finance company which provides home
loans and loan against property to low-income women borrowers in
Tier II and Tier III towns. The borrowers are self-employed or
salaried individuals in informal sectors.
Sabre Partners and investment firm Nuveen are among Aviom's equity
investors.
Aviom's total debt-to-asset ratio was at 67% as on Dec. 31, 2023,
Reuters discloses citing the company's latest financial records.
Its total outstanding bonds stood at INR620 million ($7.2 million)
and its bank facilities were at INR2.25 billion, rating agency
CRISIL said in a note in November, while flagging liquidity issues
and expected delays in interest payments, according to Reuterss.
Despite attempts to engage with the company, CRISIL had failed to
receive any relevant information, including the liquidity profile
of the company, it said.
CRISIL also downgraded Aviom's ratings on the bank facilities and
bonds amid "non-cooperation" by the company, it had said.
BORN UNICORN: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Born Unicorn Tech Prise Pvt. Ltd
L-17A, 1st Floor, Malviya Nagar,
South Delhi-New Delhi-110017
Insolvency Commencement Date: January 10, 2025
Estimated date of closure of
insolvency resolution process: July 9, 2025
Court: National Company Law Tribunal, New Delhi Bench-IV
Insolvency
Professional: Mr. Anil Kumar Sharma
A 47 Kailash Colony, First Floor, South,
National Capital Territory of Delhi, 110048
Email: mikonict@gmail.com
AAA House 64, near Modi Mill, Okhla Phase III,
Okhla Industrial Estate, New Delhi, 110020
Email: bornunicorn.cirp@gmail.com
Last date for
submission of claims: January 27, 2025
C P ARORA ENGINEERS: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: C P Arora Engineers Contractors Private Limited
175, MIG Flats, Prasad Nagar, New Delhi 110005
Insolvency Commencement Date: January 9, 2025
Estimated date of closure of
insolvency resolution process: July 8, 2025
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Mr. Umesh Singhal
Sigma Legal Group 407-408, GD-ITL Tower,
B-08, Netaji Subhash Place, Pitampura
New Delhi-110034
Email: singhaluk@hotmail.com
Email: cparoracirp@gmail.com
Last date for
submission of claims: January 24, 2025
CHHATRAPATI SAMBHAJI: Ind-Ra Keeps BB- Rating in NonCooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Chhatrapati
Sambhaji Raje Sakhar Udyog Limited's (CSRSUL) bank facilities'
ratings in the non-cooperating category and has simultaneously
withdrawn the same.
The detailed rating actions are:
-- INR640 mil. Fund-based working capital limit* maintained in
non-cooperating category and withdrawn;
-- INR417.25 mil. Term loan^ due on December 31, 2035 maintained
in non-cooperating category and withdrawn; and
-- INR112.75 mil. Proposed Fund-based working capital limit
withdrawn (Debt Is No Longer Expected to Proceed As
Previously Envisaged).
* Maintained at 'IND BB-/Negative (ISSUER NOT COOPERATING)'/'IND
A4+ (ISSUER NOT COOPERATING)' before being withdrawn.
^ Maintained at 'IND BB-/Negative (ISSUER NOT COOPERATING)' before
being withdrawn
Detailed Rationale of the Rating Action
The ratings has been maintained in the non-cooperating category
before being withdrawn because the issuer did not participate in
the rating exercise despite repeated requests by the agency through
phone calls and emails, and has not provided information about
latest audited financial statement, sanctioned bank facilities and
utilization, business plans and projections for the next three
years, and management certificate. This is in accordance with
Ind-Ra's policy of 'Guidelines on What Constitutes
Non-cooperation'.
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a request for withdrawal of ratings and no-objection
certificate issued by the bankers. This is consistent with Ind-Ra's
Policy on Withdrawal of Ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with CSRSUL while reviewing the
ratings. Ind-Ra had consistently followed up with CSRSUL over
emails, apart from phone calls since October 2024. The issuer has
also not been submitting the monthly no default statement since
October 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of CSRSUL, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. CSRSUL has been
non-cooperative with the agency since October 2024.
About the Company
CSRSUL, incorporated in 2000, has an integrated sugar plant for the
manufacturing of sugar, a co-generation unit of 6MW and ethanol
distillery unit of 60KLPD. It is located in Aurangabad,
Maharashtra. CSRSUL also installed a distillery with capacity of
30KLPD which began operations in October 2023 and uses B-heavy
molasses for production of ethanol.
CONTOUR STEEL: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Contour
Steel Engineering India Private Limited (CSEIPL) continue to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of CSEIPL under the 'issuer
non-cooperating' category as CSEIPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. CSEIPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 17, 2024, November 27, 2024 and December 7, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Contour Steel Engineering India Private Limited (CSEIPL),
incorporated in August 2007, and has been promoted by Mr. Shivanand
Sudhakar Gokhale and Mr. Mohammed Adil Riaz. The company is
primarily engaged in manufacturing of PreEngineered metal
buildings, pre-painted steel profiled roofing & cladding sheets and
cold formed steel sections. The promoters have about 25 years of
experience in the industry and by virtue of that have developed
established relationships with both suppliers and clients.
DEEP LUMBERS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Deep
Lumbers Private Limited (DLPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 1.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 7.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of DLPL under the 'issuer
non-cooperating' category as DLPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
DLPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 17, 2024,
November 27, 2024, December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
DLPL was incorporated in 2013 and commenced operations in August
2013. The company is currently being managed by Mr. Kamal Deep
Garg, Mr. Pradeep Garg and Mr. Chander Shekhar Garg. DLPL is
engaged in trading and sawing of timber in form of timber blocks.
The company has its trading cum processing facility located at
Gandhidham, Gujarat. The company has one associate concern, namely,
Deep Timbers Private Limited which is engaged in similar line of
business since 2009.
F.ROBIN POWER: Ind-Ra Affirms BB+ Loan Rating, Outlook Negative
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on F. Robin Power Solutions Private Limited's (FRSPL) bank
facilities:
-- INR2.350 bil. Proposed bank loan assigned with IND BB+/
Negative rating;
-- INR200 mil. Fund-based working capital limit affirmed; Outlook
revised to Negative from Stable with IND BB+/Negative/IND A4+
rating; and
-- INR800 mil. Proposed fund-based working capital limit* is
withdrawn.
*Withdrawn as the company did not utilize the facility as
envisaged
Detailed Rationale of the Rating Action
The Outlook revision reflects FRSPL's lower-than-Ind-Ra-estimated
operational performance over FY24 and 1HFY25, leading to
deterioration in its credit metrics. The agency expects the credit
metrics to deteriorate in the medium term, given the increased
amount for its debt-funded capex towards the installation of a 50MW
solar power plant. Furthermore, the promoters have yet to infuse
their contribution into the capex.
The ratings reflect FRSPL's small scale of operations, high
geographical concentration risk and stretched liquidity. However,
the ratings factor in FRSPL's average EBITDA margins and
experienced promoters. In the medium term, Ind-Ra expects the scale
of operations to improve on account of a likely improvement in the
execution of orders in hand along with stable cash flow generation
from the solar power business.
Detailed Description of Key Rating Drivers
Small Scale of Operations: FRSL's scale of operations remained
small with its revenue declining to INR1,034.88 million in FY24
(FY23: INR3,479.33 million) due to a delay in receiving advances
from customers, leading to slower execution. Also, the company
decided to focus on the completion of its existing orderbook and
the capex before taking additional orders. FRPSPL commenced its
operations in FY21 and FY22 was the first full year of operations,
indicating the company's lack of operational track record. The
EBITDA fell to INR101.79 million in FY24 (FY23: INR144.20 million)
due to a drastic decline in the prices of solar modules. Until
FY24, FRSPL was into the engineering, procurement and construction
(EPC) business as a contractor to execute solar power projects and
will foray into the power trading business from FY26. As of 7MFY25,
FRSPL booked revenue of INR245.6 million and had an orderbook of
INR2,689 million, of which INR806.7 million has been on track for
completion in FY25 and the balance INR1882.3 million will be
completed in FY26. In the medium term, Ind-Ra expects the revenue
to improve, supported by a likely improvement in the orders for
execution and the power sale business.
Modest Credit Metrics; likely to Deteriorate in FY25: FRSPL's
credit metrics stood modest with the gross interest coverage
(operating EBITDA/gross interest expenses) decreasing to 3.04x in
FY24 (FY23: 14.48x) and the net leverage (total adjusted net
debt/operating EBITDAR) increasing to 3.10x (1.34x), due to the
decrease in its EBITDA as well as an increase in interest expenses
to INR33.44 million (INR9.96 million). In the near term, Ind-Ra
expects the credit metrics to deteriorate, due to its debt-funded
capex of INR3,000 million towards the installation of the 50MW
solar power plant. The capex will be funded through a term loan of
INR2,047.5 million from REC Ltd ('IND AAA'/Stable), INR386 million
through equity infusion, INR74 million via unsecured loans and the
rest via internal accruals. The project started in FY22 and the
capex of INR620 million was completed in FY24 pertaining to
purchase of land, solar modules and other equipment. The solar
plant is likely to be operational by May 2025, contingent on the
term loan being disbursed by end-January 2025.
High Geographic Concentration: Tamil Nadu accounted for a major
part of FRSPL's unexecuted order book. However, the company has
benefited from its established base and expertise in the execution
of orders in any region.
Industry Risks: The ministry of new and renewable energy has
ordered to reimplement its notification of an 'Approved List of
Models and Manufacturers (ALMM) of solar photovoltaic modules',
disabling import of raw materials, leading to companies sourcing
them domestically at higher prices. The purchase of solar modules
can be carried out only through the manufacturers enlisted in ALMM.
This was enacted to protect domestic industry as solar modules and
cells were overwhelmingly imported from China at highly competitive
prices and lower quality. The growth in cell and module
manufacturing ecosystem in India is also boosted by the continued
imposition of 40% basic custom duty on the import of modules and
25% basic custom duty on the import of cells.
Average EBITDA Margins; likely to Improve from FY26: FRSPL's
EBITDA margins remained modest but increased to 9.84% (FY23:
4.14%), due to the decline in the prices of solar modules. The
return on capital employed increased to 13.2% in FY24 (FY23:
18.7%). In the medium term, Ind-Ra expects the EBITDA margin to
increase on account of its entry into power trading business which
offers higher margins of 80%-90% than that of the EPC segment.
Reputed Client Base: The company has renowned clientele including
Dalmia Cement (Bharat) Limited ('IND AA+'/Stable), Craftsman
Automation Ltd, Dr. Axion India Pvt Ltd and Vikram Solar Limited
('IND A'/Stable) with whom power purchase agreements have been
signed for the power trading segment.
Liquidity
Stretched: FRSPL's cash and cash equivalents reduced to INR0.74
million at FYE24 (FYE23: INR97.26 million). FRSPL's cash flow from
operations improved to negative INR114.87 million in FY24 (FY23:
negative INR324.63 million) due to favorable changes in its working
capital requirement. Furthermore, the free cash flow stood at
negative INR114.88 million in FY24 (FY23: negative INR365.89
million). The working capital cycle elongated to 194 days in FY24
(49 days) with a significant increase in the inventory days to 275
days (68 days) following a decrease in the cost of goods sold and
creditor days increased to 148 days (27days). The firm has
scheduled debt repayment obligations of INR24.5 million in FY25 and
INR13.56 million FY26.
Rating Sensitivities
Positive: Timely completion of the capex and the infusion of
promoter contribution along with a substantial improvement in the
liquidity profile, orderbook and credit metrics, all on a sustained
basis, could lead to a positive rating action.
Negative: Any delay in the completion of the capex and/or a decline
in the scale of operations, leading to deterioration in the overall
credit metrics or the liquidity profile, all on a sustained basis,
could lead to a negative rating action.
About the Company
Incorporated in 2020, Tamil Nadu-based FRPSPL is engaged in
installing, erecting, testing and commissioning of all types of
solar power plants. They are also setting up a 50MW solar power
plant and will foray into power trading business from FY26.
GURVINDER SINGH: CARE Keeps C Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Gurvinder
Singh (GVS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 4.30 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 12,
2024, placed the rating(s) of GS under the 'issuer non-cooperating'
category as GS had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. GS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 27, 2024, December 7,
2024 and December 17, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Gurvinder Singh (GS) is a proprietorship firm established in 2008
by Mr. Gurvinder Singh (aged 47 years). The firm is engaged in
providing services as transport contractor to Food Corporation of
India (FCI) for the transportation of food grains from one center
of FCI to anther center of FCI in different districts of Himachal
Pradesh and Punjab. The firm gets contract through competitive
bidding process (tender basis) and hires the truck from the
transport companies for the movement of food grains.
Status of non-cooperation with previous CRA: BRICKWORK has
continued the ratings assigned to the bank facilities of GS into
'Issuer not-cooperating' category vide press release dated February
19, 2024 on account of non-availability of requisite information
from the company.
HINDUSTAN UNILEVER: NCLAT Dismisses Insolvency Proceedings Plea
---------------------------------------------------------------
The Economic Times reports that the National Company Law Appellate
Tribunal (NCLAT) on Jan. 27 set aside a plea against Hindustan
Unilever Limited, filed by an operational creditor seeking
initiation of insolvency proceedings against the FMCG major. The
appellate tribunal has upheld an order passed by the Mumbai bench
of the National Company Law Tribunal (NCLT), which on September 5,
2024 had set aside a plea filed under Section 9 of IBC by K Lakshmi
Narayana, Proprietor of Lalithambica Enterprises, alleging default.
According to ET, the NCLT had found that the sum of the invoices,
which was within the three-year limitation period, was less than
the threshold limit of INR1 crore.
Besides, the appellate tribunal noted that HUL's submission relates
to a pre-existing dispute, for which a legal notice was issued on
January 17, 2019.
ET says the decision was challenged before NCLAT, where a
two-member bench comprising Chairperson Justice Ashok Bhushan and
Member (Technical) Arun Baroka, dismissed it observing the
existence of a dispute on claims.
". . . according to own showing of the appellant, dispute was
raised and he asked in the notice to refer the matter for
arbitration, which itself proves the existence of dispute. Hence,
the Adjudicating Authority (NCLT) has rightly rejected the Section
9 application due to reasons as given in the impugned order. We do
not find any merit in the appeal. Appeal is dismissed," the NCLAT
said.
However, NCLAT further said it shall be open for Narayana to pursue
other remedies as available in law.
Earlier, both HUL and the petitioner had a running account between
them and invoices relate to the period from 2008 to 2018.
ET relates that Narayana submitted that as an operational creditor,
he was entitled to charge 24 per cent interest and if the interest
is added to the principal amount of INR59 lakh, it would be more
than INR1 crore.
He also claimed that the operational creditor is an MSME.
However, this was also rejected by NCLAT which said: "The
submission of the appellant that he is entitled to charging 24 per
cent interest is not supported by any Purchase Order or any other
material on the record. The claim of the appellant that it is an
MSME, therefore, it is entitled to charge 24 per cent interest
cannot be accepted," ET relays.
The Insolvency & Bankruptcy Code (IBC) mandates the minimum limit
of default to be INR1 crore for initiation of Corporate Insolvency
Resolution Process (CIRP).
Moreover, under IBC, the limitation period for filing an
application to initiate insolvency proceedings is generally three
years from the date of default.
Hindustan Unilever Limited, a fast-moving consumer good company,
manufactures and sells food, home care, personal care, and
refreshment products in India and internationally. The company
operates through Home Care, Beauty & Personal Care, Foods &
Refreshment, and Others segments. The company is also involved in
the job work, real estate, and discharge trust businesses.
IL&FS ENGINEERING: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of IL&FS
Engineering and Construction Company Limited (IECCL) continue to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 902.81 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Ban 2,188.52 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
IL&FS Engineering and Construction Company Limited (IECCL) has not
serviced its debt obligations since September 2018. The same
remains according to the annual report of the company ending March
31, 2024. CARE Ratings Limited (CARE Ratings) had, vide its press
release dated March 27, 2019, placed the ratings of IECCL under the
'issuer non-cooperating' category as IECCL had failed to provide
information for monitoring of the rating and had not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. IECCL continues to be non-cooperative despite
repeated requests for submission of information through e-mails.
In line with the extant Securities and Exchange Board of India
(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. CARE
Ratings on IECCL's long-term and short-term bank facilities
continue to be denoted as CARE D; 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).
Analytical approach: Consolidated
Outlook: Not applicable
Detailed description of the key rating drivers:
At the time of last rating on October 23, 2023, the following were
the rating strengths and weaknesses (updated for the information
available from stock exchange).
Key weakness
* Default in debt servicing obligations: There are continued delays
and defaults on IECCL's principal and interest payments per annual
report of FY24. IECCL has been classified as an NPA since 2019.
Liquidity: Poor
The liquidity profile of the company is poor as reflected by the
ongoing delays in the debt servicing.
IECCL promoted by Infrastructure Leasing & Financial Services
Limited group (IL&FS, rated 'CARE D', holds 42.25%), and rest is
held by public (57.75%). As on March 31, 2021, IL&FS group had
exposure of INR2,047.07 crore in IECCL in form of equity and loans
and advances.
IECCL is engaged in infrastructure development which includes
construction and project management services operating across
different countries. The company also undertakes construction of
roads, buildings and industrial structures, irrigation canals
projects.
JET FREIGHT: Ind-Ra Moves BB+ Bank Loan Rating to NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on Jet
Freight Logistics Limited's (JFLL) bank facilities to Negative and
has simultaneously migrated the ratings to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency through
phone calls and emails. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using these ratings.
The instrument-wise rating actions are:
-- INR392.75 mil. Fund-based working capital limit Outlook
revised to Negative and rating migrated to non-cooperating
category with IND BB+/Negative (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating;
-- INR40 mil. Non-fund-based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR17.25 mil. Term loan due on March 31, 2035 Outlook revised
to Negative and rating migrated to non-cooperating category
with IND BB+/Negative (ISSUER NOT COOPERATING) rating.
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category and Outlook
revision to Negative are in accordance with Ind-Ra's policy,
Guidelines on What Constitutes Non-Cooperation. The Negative
Outlook reflects the likelihood of a downgrade of the entity's
ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with JFLL while reviewing the
ratings. Ind-Ra had consistently followed up with JFLL over emails
starting November 2024, apart from phone calls. The issuer has
submitted no default statement until December 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of JFLL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. JFLL has been
non-cooperative with the agency since November 23, 2024.
About the Company
Established in 1986, JFLL was incorporated as a private limited
company in 2006 and was converted into a public limited company in
2016. The company achieved the main board listing status on the
National Stock Exchange of India Ltd and BSE Ltd in December 2021.
It provides logistics services such as freight forwarding services,
along with custom clearance service majorly for perishable cargo
through air, ocean and land transport.
JOGINDER SINGH: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Joginder
Singh (JS) continue to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term 4.00 CARE A4; ISSUER NOT
Bank Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 17,
2024, placed the rating(s) of JS under the 'issuer non-cooperating'
category as JS had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. JS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated December 2, 2024, December 12,
2024, December 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
M/s Joginder Singh (JS) is a proprietorship firm established in
2008 by Mr. Joginder Singh (aged 65 years). The firm is engaged in
providing services as transport contractor to Food Corporation of
India (FCI) for the transportation of food grains from one centre
of FCI to another centre of FCI in different districts of Himachal
Pradesh and Punjab.
Status of non-cooperation with previous CRA: Brickwork has
continued the rating assigned to the bank facilities of JS into
Issuer Not Cooperating category vide press release dated Feb. 21,
2024 on account of its inability to carry out a review in the
absence of requisite information.
LAXMINARAYAN SHIVHARE: CARE Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of M/s
Laxminarayan Shivhare (LS) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 3.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 12,
2023, placed the rating(s) of LS under the 'issuer non-cooperating'
category as LS had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. LS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated October 27, 2024, November 6,
2024, November 16, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Established in 1990, M/s Laxminarayan Shivhare (LS) is a
proprietorship firm which is into the business of retailing of
alcohol. The firm also operates a warehouse named M/s Maa Kaila
Devi Warehouse. LS is part of Shivhare liquor group based in Madhya
Pradesh (MP). LS holds retail liquor supplier license in MP and
undertakes retail trade of Indian made foreign liquor (IMFL), beer,
country liquor (CL), wine etc. The firm enters into open tendering
process every year to avail license for the retailing of the
liquor. Depending upon the allotment of shops during tendering, the
number of shops held by the firm varies every year. The shops are
allotted in MP by the state government through a competitive
bidding process. Shivhare Liquor group has other associate concern
namely M/s Ram Swaroop Shivhare, M/s Gopal Shivhare, M/s Laxmi
Narayan Shivhare & M/s Kalpna Shivhare which are engaged in similar
business activity.
MAHA ASSOCIATED: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Maha
Associated Hotels Private Limited (MAHPL) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 70.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 5.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 9,
2024, placed the rating(s) of MAHPL under the 'issuer
non-cooperating' category as MAHPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. MAHPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 24, 2024, December 4, 2024, December 14, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Maha Associated Hotels Private Limited (MAHPL), incorporated on
December 23, 2009, is engaged in development of a three star
mid-market hotel and a hotel training facility at New Industrial
Complex, Neemrana, Alwar District, and Rajasthan. The hotel is
being developed under the brand name of 'Hampton by Hilton'with
Hampton Inns International Franchise LLC (HIIL, subsidiary
of international hospitality major Hilton Worldwide LLC) as the
technical partner for the project. MAHPL has a franchise agreement
with HIIL, primarily for the use of brand name and also a program
fee agreement for marketing related activities of HIIL.
MARYMATHA INFRASTRUCTURE: Ind-Ra Cuts Bank Loan Rating to D
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Marymatha
Infrastructure Private Limited's (MIPL) bank facilities to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB+/Stable(ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating review
despite continuous requests and follow-ups by the agency. Thus, the
rating is based on the best available information. Therefore,
investors and other users are advised to take appropriate caution
while using the rating.
The detailed rating actions are:
-- INR475.3 mil. Fund-based working capital limit (long
term/short term) downgraded with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR1,477.1 bil. Non-fund-based working capital limit (short
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
NOTE: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
Detailed Rationale of the Rating Action
The downgrade reflects MIPL's delay in interest servicing of more
than 30 days in the cash credit account during January to March
2024 and instances of delay in the servicing of the term loan based
on the information provided by the MIPL. However, Ind-Ra has not
been able to ascertain the reason for the delays and MIPL's debt
serviceability thereafter, as the company has not submitted the
bank statement for cash credit accounts and term loans for the last
90 days for the agency to analyses if the debt servicing has been
satisfactory over this period, and it has been non-cooperative on
these lines. Hence, the ratings continue to be maintained in the
non-cooperating category in accordance with Ind-Ra's Guidelines on
What Constitutes Non-Cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with MIPL while reviewing the
ratings. Ind-Ra had consistently followed up with MIPL over emails,
apart from phone calls, since January 21, 2025 for further
clarification on the delays.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of MIPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. MIPL has been
non-cooperative with the agency since July 12, 2024.
About the Company
Incorporated in July 2019, MIPL undertakes civil construction work
of roads, buildings, bridges, canals, sewage treatment plants, and
metro rails, among others. Its registered office is in Kerala.
MUNIRAJ ENTERPRISE: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Muniraj
Enterprise (ME) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 13,
2023, placed the rating(s) of ME under the 'issuer non-cooperating'
category as ME had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. ME continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated October 28, 2024, November 7,
2024, November 17, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Surat-based (Gujarat) ME was established as a partnership firm in
2011 by five partners i.e. Mr. Harish Patel, Mr. Vivek Poddar, Mr
Mirang Shah, Mr. Sushil Poddar and Mr. Jayendra Patel. Later on,
Mr. Jayendra Patel retired from firm and Mrs Nayna Shah, Mrs Rita
Morakhiya & Mrs Deepika Patel were added as partners. The firm is
engaged into the real estate activities. Currently, the firm is
executing a commercial project 'MEENA Bazaar' (RERA Registration
no. - PR/GJ/SURAT/SURAT CITY/SUDA/CAA03436/180918) consisting of
215 shops, 82 offices, 1 warehouse and 7 halls at Pal area of
Surat, Gujarat.
OJAS INTERIO: Ind-Ra Moves BB+ Bank Rating to NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on Ojas
Interio Private Limited's (OIPL) bank facilities to Negative from
Stable and has simultaneously migrated the ratings to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency through phone calls and emails. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND BB+/Negative (ISSUER
NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR100 mil. Proposed non-convertible debenture Outlook revised
to Negative and rating migrated to non-cooperating category
with IND BB+/Negative(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category and Outlook
revision to Negative are in accordance with Ind-Ra's policy,
Guidelines on What Constitutes Non-Cooperation. The Negative
Outlook reflects the likelihood of a downgrade of the entity's
ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with JSAIL while reviewing the
ratings. Ind-Ra had consistently followed up with OIPL over emails,
apart from phone calls. The issuer has not submitted no default
statement.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of OIPL, as the agency does not have adequate
information to review the ratings. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
OIPL was incorporated in December 1984 and its registered office is
located in Delhi. OIPL is promoted by Arjun Mangal and the Bawa
family. The company is engaged in the development of Economically
Weaker Section (EWS) Housing in Uttarakhand.
OMID ENGINEERING: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of OMID
Engineering Private Limited (OEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 4,
2024, placed the rating(s) of OEPL under the 'issuer
non-cooperating' category as OEPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
OEPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 19, 2024,
November 29, 2024 and December 9, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
New Delhi-based OEPL, incorporated in October 1983, belongs to the
'Him Group of Companies' and is engaged in the manufacturing of LPG
cylinders. The company was initially engaged in the job work
activities of painting the cylinders manufactured by its sister
concern, Him Cylinders Ltd. Subsequently, in July-2001, the company
established a facility for manufacturing of LPG cylinders in the
Una district of Himachal Pradesh.
PARAKKOTT INVESTMENTS: Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Parrakott Investments India Private Limited
C-206, Ghatkopar Industrial Estate, L.B.S Marg,
Near Anacin Company, Ghatkopar (West), Mumbai City,
Mumbai, Maharashtra, India, 400086
Liquidation Commencement Date: January 3, 2025
Court: National Company Law Tribunal Mumbai Bench
Liquidator: Mr. S. Gopalakrishnan
203, the Ghatkopar Neelkanth CHS,
Jethabhai Lane, Ghatkopar East,
Mumbai-400077
Email: gopi63.ip@gmail.com
Email: liq.parakkott@gmail.com
Last date for
submission of claims: February 10, 2025
PARENTAL DRUGS: Court Approves IHL Lifescience's Acquisition Bid
----------------------------------------------------------------
The Economic Times reports that the bankruptcy court in Mumbai
approves IHL Lifesciences Pvt Ltd's acquisition of the listed firm
Parental Drugs India Ltd.
Before the tribunal's approval, the Company's Committee of
Creditors (CoC) had approved IHL Lifesciences' resolution plan for
Parental Drugs India with 100% of the vote, ET says.
"It (resolution plan) shall be binding on the corporate debtor
(Parental Drugs India), its employees, members, and creditors,
including the central government, any state government or any local
authority to whom a debt in respect of the payment of dues arising
under any law for the time being in force is due, guarantors and
other stakeholders involved in the resolution plan," said division
bench of judicial member VG Bisht and a technical member Prabhat
Kumar, ET relays.
According to ET, the company's resolution professional had received
a claim of INR1,306 crore and the successful bidder is paying about
INR90 crore to acquire the company through the insolvency
resolution process. The bankrupt pharma company's admitted
liabilities stood at INR1,287 crore.
Mumbai-headquartered Parental Drugs India was admitted under the
Corporate Insolvency Resolution Process (CIRP) in February 2023 in
an application filed by the Punjab National Bank. The bank
approached the National Company Law Tribunal (NCLT) after the
pharmaceutical company defaulted on its over INR196 crore in dues.
Last year in March, the resolution professional (RP) of the company
received interest from about 26 prospective buyers to acquire the
company, ET recalls. However, in June, the lenders received only
two revised resolution plans from United Biotech Pvt Ltd and IHL
Lifesciences Pvt Ltd.
IHL Lifesciences, formerly known as Virat Trade Corp Pvt Ltd is
primarily engaged in the manufacturing, sale and distribution of
intravenous fluids and is also a leading player in the import, sale
and distribution of polymer products in central India.
PINAKIN PLASTOFORMING: CARE Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Pinakin
Plastoforming Limited (PPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 11,
2023, placed the rating(s) of PPL under the 'issuer
non-cooperating' category as PPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 26, 2024,
November 05, 2024, November 15, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Vadodara-based (Gujarat) PPL was incorporated in 2002 by Joshi
family as a private limited company and changed its constitution to
closely held limited company during February 2016. The operation of
PPL is currently managed by Mr. Dinesh Joshi, Mr. Divyesh Joshi and
Ms. Pratiksha Joshi. PPL is engaged into manufacturing
Polypropylene (PP) Disposable plastic products such as disposable
glass, cups etc. PPL is operating from its sole manufacturing unit
located in Vadodara (Gujarat).
PITAMBAR AGRO: Ind-Ra Moves BB- Bank Rating to NonCooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Pitambar Agro Foods Private Limited's (PAFPL) bank facilities to
Negative from Stable and simultaneously migrated the rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency through emails and phone calls. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings. The ratings will now appear as 'IND BB-/Negative
(ISSUER NOT COOPERATING)' on the agency's website.
The detailed rating actions are:
-- INR110 mil. Term loan due on March 31, 2030 Outlook revised to
Negative and Migrated to non-cooperating category with IND
BB-/Negative (ISSUER NOT COOPERATING) rating; and
-- INR200 mil. Fund-based working capital limit Outlook revised
to Negative and Migrated to non-cooperating category with IND
BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate; based on
best available information
Detailed Rationale of the Rating Action
The migration of rating to the non-cooperating category and Outlook
revision to Negative are in accordance with Ind-Ra's policy,
Guidelines on What Constitutes Non-Cooperation. The Negative
Outlook reflects the likelihood of a downgrade of the entity's
ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interaction with PAFPL while reviewing the
ratings. Ind-Ra had consistently followed up with PAFPL over
emails, apart from phone calls. However, the issuer has been
submitting its monthly no default statement till December 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of PAFPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated in December 2020, PAFPL manufactures edible oil and
de-oiled cakes at its 500 tons per day plant located in Tonk,
Rajasthan.
PRATIBHA KRUSHI: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Pratibha
Krushi Prakriya Limited (PKPL) continue to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 202.78 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 5.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 12,
2024, placed the rating(s) of PKPL under the 'issuer
non-cooperating' category as PKPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
PKPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 27, 2024,
December 7, 2024 and December 17, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
PKPL is a closely held public limited company incorporated in 2010
by Mr. Satish Chavan and his wife Mrs. Ashwini Chavan, it is the
flagship company of the group. The company manufactures various
milk-based products like Ultra High Temperature (UHT) milk, lassi,
cheese, yoghurt, paneer, butter, ghee, Skimmed Milk Powder (SMP),
etc. These products are sold in the regions of
Maharashtra, Goa and parts of Karnataka.
QUINN LODGINGS: Voluntary Liquidation Process Case Summary
----------------------------------------------------------
Debtor: Quinn Lodgings India Private Limited
Q City, 6th Floor, Block-A,
Sy No: 109, 110 & 111/2 Nanakramguda Village,
Serilingampally Mandal, Hyderabad,
Telangana, India 500032
Liquidation Commencement Date: January 8, 2025
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Mr. Chetan Gupta
604-605, PP City Centre, Road, No. 44,
Pitampura, Delhi-110034
Email: chetan.gupta@apacandassociates.com
Phone no: 9818188855
Last date for
submission of claims: February 7, 2025
RADHE FOODS: CARE Keeps D Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri Radhe
Foods Product (SRFP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.85 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 19,
2024, placed the rating(s) of SRFP under the 'issuer
non-cooperating' category as SRFP had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SRFP continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 4, 2024,
December 14, 2024 and December 24, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Shri Radhe Foods Product (SRFP) is a proprietorship firm
established by Mr. Gopal Agrawal in 2015.The firm is engaged in
milling and processing of non-basmati rice. SRFP is operating from
its sole manufacturing plant located at Gondia (Maharashtra).
Further the firm is also engaged in sorting of rice at its plant.
Status of non-cooperation with previous CRA: CRISIL has continued
the rating assigned to the bank facilities of SRFP under Issuer Not
Cooperating category vide press release dated October 24, 2024 on
account of its inability to carry out a review in the absence of
the requisite information from the firm.
RAGHAV SULZCON: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Raghav
Sulzcon Private Limited (RSPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B-; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of RSPL under the 'issuer
non-cooperating' category as RSPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
RSPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 17, 2024,
November 27, 2024 and December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Bhilwara (Rajasthan) based Raghav Sulzcon Private Limited (RSPL)
was incorporated in 2000 by Mr. Rameshwar Lal Samdhani and Mr.
Kapil Samdhani. RSPL is engaged in the business of manufacturing of
grey fabrics and trading of finished fabrics. It also manufactures
grey fabrics on job work basis for others. The company outsources
the processing work required for the manufacturing of finished
fabrics. The weaving unit of RSPL is located at Bhilwara,
Rajasthan.
REETA AND SONS: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Reeta and
Sons (RS) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of RS under the 'issuer non-cooperating'
category as RS had failed to provide information for monitoring of
the rating as agreed to in its Rating Agreement. RS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated November 17, 2024, November 27,
2024, December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of RS have been revised
on account of non-availability of requisite information.
Analytical approach: Standalone
Outlook: Stable
Reeta and Sons was established in 2014 and is engaged in the retail
business of trading of gems & jewellery. The entity deals in Gold,
Silver and Diamond Jewellery through its retail shop situated at
Janpath, Satyanagar, Bhubaneswar. This well-known establishment
acts as a one-stop destination servicing customers both local and
from other parts of Odisha. In Bhubaneshwar, the retail shop
occupies a prominent location in Satya Nagar and is easily
accessible through various modes of transport. Mr. Gopal Krishna
Patra and Kusum Kumari Patra has more than two decades and one
decade of experience, respectively, in the same line of business.
They look after the day-to-day operations of the entity supported
by other partners along with a team of experienced personnel.
SARVOTTAM ATTA: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Sarvottam
Atta Private Limited (SAPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 18.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 2.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 11,
2023, placed the rating(s) of SAPL under the 'issuer
non-cooperating' category as SAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated October 26, 2024,
November 5, 2024, November 15, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
SAPL was established as a proprietorship firm by Mr. Jilubhai
Chauhan in 2005 and was reconstituted as a private limited company
in June 2014. SAPL is engaged in the business of grain processing
(wheat) and produces flour and semolina (rava) and sells it under
the brand name 'Vanraj'. Its manufacturing facility is located at
Sihor in Gujarat and operates with an installed capacity of 200
metric tonnes per day.
SASTIKUMAR FARMS: Ind-Ra Assigns BB Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Sastikumar Farms and
Foods Private Limited's (SFFPL) term loan as follows:
-- INR670 mil. Term loan due on February 28, 2035 assigned with
IND BB/Stable rating.
Detailed Rationale of the Rating Action
The rating reflect SFFPL's small scale of operation, modest EBITDA
margin and credit metrics in FY24. In FY25, Ind-Ra expects scale of
operation to improve as the company's first phase of 10MW solar
plant project commenced operations in May 2024 and the second phase
with an additional 10MW capacity is likely to commence operations
by March 2025.In the medium term, Ind-Ra expects the scale of
operations to further improve on account of the full operation of
both phase of the company's solar plant project. However, the
rating is supported by the promoter's four decades of experience.
Detailed Description of Key Rating Drivers
Small Scale of Operation: SFFPL's revenue was INR71.54 million in
FY24 (FY23: INR65.80 million) and EBITDA was INR47.57 million
(INR48.85 million). In FY24, the revenue improved year-on-year, due
to an increase in the power units sold, particularly from the wind
energy segment. From June 2024, SFFPL has started the operation of
first phase of its 10MW solar project. At end-December 2024, SFFPL
had generated a revenue of INR135.84 million, of which INR64.56
million came from the wind energy segment and INR71.29 million from
solar energy. In FY25, the management expects the revenue to
improve year-on-year, due to an expansion of the company's solar
capacity. The first phase of the solar plant is already
operational, while the second phase with an additional 10MW
capacity is expected to commence operations by March 2025. Also,
SFFPL has power purchase agreements with small, private companies.
Modest EBITDA Margin: The rating also factors in SFFPL's modest
EBITDA margin of 66.49% in FY24 (FY23: 74.24%) with a return on
capital employed of 7.6% (16.3%). In FY24, the EBITDA margin
declined due to an increase in the direct expenses. In FY25, Ind-Ra
expects the EBITDA margin to improve year-on-year due to the
addition of the solar project.
Modest Credit Metrics: The rating further reflects the company's
continued modest credit metrics with an interest coverage
(operating EBITDA/gross interest expenses) of 4.14x in FY24 (FY23:
4.95x) and a net leverage (adjusted net debt/operating EBITDAR) of
9.35x (1.78x). In FY24, the net leverage deteriorate due to an
increase in the debt obligation in the last quarter for which the
interest charged was only for 15 days, and the interest coverage
fell due to an increase in the bank interest on loan. The debt was
infused for capex for the first phase of the solar plant project
amounting to INR463 million and was funded by a term loan of
INR324.7 million. In FY25, Ind-Ra expects the credit metrics to
further deteriorate due to an increase in the debt obligation for
capex of the second phase of the solar plant project amounting to
INR410 million and was funded by a term loan of INR287 million.
SFFPL has a combined capex of INR873 million to be completed by
March 2025, which will be funded through a term loan of INR612
million, an equity of INR1 million and rest INR260 million through
internal accruals and unsecured loans. At end-December 2024, SFFPL
had already incurred INR678.71 million for capex, which was funded
by a term loan of INR449.78 million, equity of INR1 million and the
rest INR227.93 million through internal accruals and unsecured
loans
Promoters' Experience: The ratings are supported by the promoters'
more than four decades of experience in diversified industry. This
will facilitate smooth functioning of the company.
Liquidity
Stretched: SFFPL has debt repayment obligations of INR62.6 million
and INR78.8 million in FY25 and FY26, respectively. The cash flow
from operations stood at negative INR178.33 million in FY24 (FY23:
INR46.15 million). Furthermore, the free cash flow stood at
negative INR387.74 million (FY23: INR39.70 million) due to the
debt-led capex plan. SFFPL does not have any fund-based facilities
for daily operations. In FY24, SFFPL had cash and cash equivalents
of INR71.84 million (FY23: INR0.55 million). The net working
capital remained negative at 70 days in FY24 (FY23: negative 465
days) due to a decline in the creditor days to 135 (508).
Furthermore, SFFPL does not have any capital market exposure and
relies on banks and financial institutions to meet its funding
requirements.
Rating Sensitivities
Negative: A decline in the scale of operations, leading to
deterioration in the overall credit metrics as well as the
liquidity profile, all on a sustained basis, will lead to a
negative rating action.
Positive: A significant improvement in the scale of operations,
along with an improvement in the overall credit metrics with the
net leverage reducing below 5x, along with an improvement in the
liquidity profile, all on a sustained basis, could lead to a
positive rating action.
About the Company
SFFPL is the part of the Ponni Group. SFFPL established in 2004,
primarily focuses on generating energy through windmill in
Namakkal, Tamil Nadu. However, since June 2024, the company
expanded its operations into generating power through solar plant.
At end-December 2024, the company had 6,500KW capacity of wind
energy and 10MW capacity of solar energy. An additional 10MW
capacity is likely to commence operations by March 2025.
SATMAN AUTOMOBILES: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Satman
Automobiles Private Limited (SAPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale & Key Rating Drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of SAPL under the 'issuer
non-cooperating' category as SAPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
SAPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 17, 2024,
November 27, 2024, December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
SAPL was incorporated in 2012 by Ms. Meghna Haren Choksey and Mr.
Konark Nanda. The company is currently being managed by Ms. Meghna
Haren Choksey, Mr. Konark Nanda and Mr. Kunal Ramchandani. It is
engaged in the business of automobile dealership 3S (sales, service
and spares). SAPL is an authorized dealer of Skoda Auto India
Private Limited (SAIPL) vehicles. The company was appointed dealer
for sales and service of passenger vehicles for SAIPL in 2012 and
commenced operations with single showroom in June 2012. The
showroom has attached workshop facility for the post sales services
of cars at Okhla, New Delhi.
SHREE VARDHMAN: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Shree Vardhman Infraheights Private Limited
Regd Office:
302, Third Floor, Indraprakash Building 21,
Barakhamba Road, New Delhi-110001
Project Site:
Shree Vardhman Victoria, Sector-70,
Gurugram-122101, Haryana
Insolvency Commencement Date: January 8, 2025
Estimated date of closure of
insolvency resolution process: July 6, 2025
Court: National Company Law Tribunal, New Delhi Bench
Insolvency
Professional: Mr. Jalesh Kumar Grover
Ducturus Resolution Professionals Pvt Ltd
SCO 818, 1st Floor, NAC, Manimajra,
Chandigarh-160101
Email: ducturus.insolvency@gmail.com
Email: cirp.svinfraheights@gmail.com
Representative of
Creditors in a class:
1. Vijay Kishore Saxena
Email: vksaxena2159@gmail.com
2. Akhil Ahuja
Email: caakhilahuja@gmail.com
3. Akriti Sood
Email: contactaakritisood@gmail.com
Last date for
submission of claims: January 22, 2025
SUKH SAGAR: CARE Keeps D Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sukh Sagar
Motors Private Limited (SSMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.48 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated December 19,
2023, placed the rating(s) of SSMPL under the 'issuer
non-cooperating' category as SSMPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SSMPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 3, 2024, November 13, 2024, November 23, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not applicable
Sukh Sagar Motors Private Limited (SSMPL, CIN:
U34100MP2008PTC020216), incorporated in the year 2008, is promoted
by Mr. Amandeep Singh Khanna and family members. The company has
entered into an authorized dealership agreement with Tata Motors
Limited (TML) for sales and service of passenger cars along with
sale of spare parts in Jabalpur, Madhya Pradesh. SSMPL's revenue
sources include sale of vehicles and their spare parts, service
income, target incentive from TML and commission from
financers.
SWAMI DEVI: CARE Keeps C Debt Rating in Not Cooperating Category
----------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Swami Devi
Dyal HI-Tech Education Academy (SDDHEA) continue to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 17,
2024, placed the rating(s) of SDDHEA under the 'issuer
non-cooperating' category as SDDHEA had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. SDDHEA continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
December 2, 2024, December 12, 2024 and December 22, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
SDDHEA got registered under the Society registration Act-1860 in
August 2000. The society was established by Mr. M.L Jindal
(President), Mr. Ashok Jindal (Vice- President) and Mr. Amit Jindal
(General Secretary) and is providing higher education in the field
of Dental Sciences, Computer Applications, Nursing, Management,
Law, Pharmacy, Hotel Management and Education. The society is
running twelve separate institutions under Swami Devi Dyal Group of
Professional Institutions in Panchkula, Haryana.
Status of non-cooperation with previous CRA: Acuite has continued
the rating assigned to the bank facilities of SDDHEA into Issuer
Not Cooperating category vide press release dated January 14, 2025
on account of its inability to carry out a review in the absence of
requisite information.
TARACHAND INTERNATIONAL: CARE Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tarachand
International Private Limited (TIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 50.00 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 17,
2024, placed the rating(s) of TIPL under the 'issuer
non-cooperating' category as TIPL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
TIPL continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 2, 2024,
December 12, 2024 and December 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Tarachand International Private Limited (TIPL) was set-up in 2011
by Mr. Vinod Kainya and Mrs Sunita Kainya. The company is into the
business of steel trading (viz. sheets, plates, channels, angels &
others) and ship breaking. TIPL has its registered office in Mumbai
and carries out the ship breaking activity from the Mumbai port.
TRUELIXIR LIFE: Ind-Ra Moves B Loan Rating to NonCooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised the Outlook on
Truelixir Life Science Private Limited's (TLSPL) bank facilities to
Negative from Stable and has simultaneously migrated the ratings to
the non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency through phone calls and emails. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The ratings will now appear as 'IND B/Negative (ISSUER
NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR25 mil. Fund-based working capital limit Outlook revised to
Negative and migrated to non-cooperating category with IND
B/Negative (ISSUER NOT COOPERATING )/IND A4 (ISSUER NOT
COOPERATING) rating; and
-- INR175 mil. Term loan due on March 31, 2031 Outlook revised to
Negative and migrated to non-cooperating category with IND
B/Negative (ISSUER NOT COOPERATING) rating.
Detailed Rationale of the Rating Action
The migration of ratings to the non-cooperating category and
Outlook revision to Negative are in accordance with Ind-Ra's
policy, Guidelines on What Constitutes Non-Cooperation. The
Negative Outlook reflects the likelihood of a downgrade of the
entity's ratings on continued non-cooperation.
Non-Cooperation by the Issuer
Ind-Ra has not received adequate information and has not been able
to conduct management interactions with TLSPL while reviewing the
ratings. Ind-Ra had consistently followed up with TLSPL over emails
starting January 2025, apart from phone calls. The issuer had
submitted no default statement until December 2024.
Limitations regarding Information Availability
Ind-Ra is unable to provide an updated forward-looking view on the
credit rating of TLSPL, as the agency does not have adequate
information to review the rating. If an issuer does not provide
timely business and financial updates to the agency, it indicates
weak governance, particularly in 'Transparency of Financial
Information'. The agency may also consider this as symptomatic of a
possible disruption/distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. TLSPL has been
non-cooperative with the agency since November 10, 2024.
About the Company
Incorporated in 2018, TSLPL manufactures intravenous fluids at its
24.96 million bottles per annum manufacturing plant located in
Aurangabad, Maharashtra.
V S EDUCATION: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of V S
Education Foundation (VSEF) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 12,
2024, placed the rating(s) of VSEF under the 'issuer
non-cooperating' category as VSEF had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
VSEF continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 27, 2024,
December 7, 2024 and December 17, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Stable
Ludhiana, Punjab based V S Education Foundation (VSEF) Trust was
formed in October 2015. Mr. Vijay Kansal is the President of the
trust and the trust was setup with an objective to provide
educational services. VSEF was established to provide education
under the brand name of DPS world School. VSEF operates a school in
the name of “Delhi World School” in Ludhiana the school
provides primary and secondary education from Nursery to XII
standard and is affiliated with CBSE (Central Board of Secondary
Education).
Status of non-cooperation with previous CRA: India Ratings has
continued the ratings assigned to the bank facilities of VSEF into
'Issuer not-cooperating' category vide press release dated October
29, 2024 on account of non-availability of requisite information
from the company.
VAMSADHARA GINNING: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vamsadhara
Ginning and Pressing Industries (VGPI) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 2,
2024, placed the rating(s) of VGPI under the 'issuer
non-cooperating' category as VGPI had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
VGPI continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated November 17, 2024,
November 27, 2024, December 7, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Vamsadhara Ginning & Pressing Industries (VGPI) was established in
the year 2016 by seven partners. The firm is engaged in cotton
ginning & pressing at its factory located at Piduguralla, Guntur
district. The operations started from February 2017 and the firm
has its customer presence in Andhra Pradesh and Telangana who
purchase cotton lint and cotton seed manufactured by the firm. Mr.
Sontineni Venkateswara Rao, the chief promoter and managing partner
of this firm since its inception, has 27 years of experience in the
line of rice milling and cotton ginning business. He is also having
a major stake in the associate concerns, 'Vamsadhara Rice
Industries' and 'Vamsadhara Cotton Industries' both located at
Janapadu, Andhra Pradesh.
Status of non-cooperation with previous CRA: CRISIL has continued
the ratings assigned to the bank facilities of VGPI to the 'issuer
not-cooperating' category vide press release dated February 21,
2024 on account of its inability to carryout review in the absence
of requisite information from the firm.
VANTAGE MACHINE: CARE Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vantage
Machine Tools Private Limited (VMTPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 3,
2024, placed the rating(s) of VMTPL under the 'issuer
non-cooperating' category as VMTPL had failed to provide
information for monitoring of the rating as agreed to in its Rating
Agreement. VMTPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated
November 18, 2024, November 28, 2024, December 8, 2024 among
others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Vantage Machine Tools Private Limited (VMTPL) was promoted by Shri
Potluru Mohana Murali Krishna in September 2013 for undertaking
manufacturing of Special Purpose Machines like CNC (Computer
Numerical Control) machines and Hydraulic machines. These machines
are widely used in Power plants, Ports, Steel plants, Sugar
industries, cement industries, heavy fabrication, chemical and
processing equipments of aerospace and defence sectors. The
manufacturing facility of the company is located at Gollapalli
village of Krishna District in the state of Andhra Pradesh with an
annual installed capacity of 360 numbers of Special Purpose
Machines.
VIBRANT FAB: CARE Keeps D Debt Ratings in Not Cooperating Category
------------------------------------------------------------------
CARE Ratings said the ratings for the bank facilities of Vibrant
Fab Private Limited (VFPL) continue to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term/ 12.50 CARE D/CARE D; ISSUER NOT
Short Term COOPERATING; Rating continues
Bank Facilities to remain under ISSUER NOT
COOPERATING category
Rationale and key rating drivers
CARE Ratings Ltd. had, vide its press release dated January 17,
2024, placed the rating(s) of VFPL under the 'issuer
non-cooperating' category as VFPL had failed to provide information
for monitoring of the rating as to in its Rating Agreement. VFPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails dated December 2, 2024,
December 12, 2024 and December 22, 2024 among others.
In line with the extant SEBI guidelines, CARE Ratings Ltd. has
reviewed the rating on the basis of the best available information
which however, in CARE Ratings Ltd.'s opinion is not sufficient to
arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Analytical approach: Standalone
Outlook: Not Applicable
Incorporated in August 2011, Vibrant Fab Private Limited (VFPL) is
engaged in manufacturing [since 2015] & wholesale trading [since
inception] of fabrics and garments. VFPL procures its raw material
(i.e. fabric, suits, salwar & sarees, dress materials) from Mumbai
and Surat and manufactures the same as per requirements of its
clients, the manufacturing activity is outsourced to various
manufacturers located in Surat.
Status of non-cooperation with previous CRA: Acuite has continued
the rating assigned to the bank facilities of VFPL under Issuer Not
Cooperating category vide press release dated February 16, 2024 on
account of its inability to carry out a review in the absence of
the requisite information from the company.
VRUKSHA MICROFIN: Ind-Ra Affirms BB Loan Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Vruksha Microfin
Private Limited's (VMPL) bank loans as follows:
-- INR200 mil. Bank loan affirmed with IND BB/Stable rating.
Detailed Rationale of the Rating Action
The affirmation reflects the continued small scale of operations,
high geographical concentration and modest profitability. However,
the rating continues to factor in adequate capitalization and the
experience of the promoters in the microfinance sector.
Detailed Description of Key Rating Drivers
Small scale of operations with high geographical concentration:
VMPL's loan book stood at INR762 million in 1HFY25 (FY24: INR809
million; FY23: INR342 million), on account of it taking a cautious
approach towards disbursements amid headwinds in the microfinance
institutions (MFI) sector. The company finances small ticket loans
to joint liability groups of women. As VMPL began operating only in
August 2021, it has seen limited cycles so far and does not have a
proven track record. At this stage of evolution, the scale plays an
important role in factors such as operational efficiencies,
concentration risks, and consistent, clear and scalable policies.
However, considering the existing scale of operations, the company
has adequate systems and processes in place to carry out its
day-to-day operations.
VMPL is exposed to high geographical concentration risk as all the
21 branches are located in Tamil Nadu. However, the company is
planning to enter the neighboring southern states over the medium
term. Ind-Ra believes a contiguous expansion would benefit the
company, as non-contiguous expansion might present operational and
control-related challenges.
Asset quality to be tested with seasonality of operations: VMPL's
gross non-performing assets (GNPA) increased to 1.1% in 1HFYE25
(FYE24: 0.14%; FYE23: 0.17%) because of the downturn in the MFI
industry. VMPL's management pro-actively wrote off bad debts and
made high provisions in FY24, due to which the company's credit
cost soared to 4.5% (FY23: 1.2%). The company's 0+ day past due
delinquencies increased to 4% in 1HFY25 (FY24: 1.12%), as its
collection efficiency declined to 97% from around 100% earlier.
However, the management has placed high focus on collections and
expects the delinquencies to reduce by 4QFY25, resulting in
comparatively lower credit cost in FY25. Ind-Ra opines the
company's relatively small portfolio and area of operations
compared to larger non-banking finance company (NBFC)-MFIs has
provided the management with better ability to control its
portfolio quality in comparison to its peers. However, given that
the operations are mainly related to unsecured microfinance loans
and the vulnerable socio-economic profiles of its borrowers, it
continues to face systemic and idiosyncratic risks. Based on the
industry track record, VMPL's GNPAs might settle at higher levels
on achieving of scale and seasoning of portfolio.
Modest profitability profile: As the company does provisions and
write offs at the end of the financial year, the credit cost was
nil in1HFY25, resulting in a profit of INR15.3 million during this
period (FY24: INR9.03 million). Given the deterioration in the
asset quality and high borrowing cost (1HFY25: 16.8%; FY24: 14%),
the profit is likely to moderate from existing levels by end-FY25.
The company reported a return on assets (ROA) of 3.4% in 1HFY25
(FY24: 1.4%), primarily on account of zero credit cost. However,
its ROA is likely to be modest by end-FY25, due to its high
borrowing costs which is constraining its spreads, and its impacted
collection efficiency. Given the challenging operating environment,
the company's ability to maintain credit cost and secure funding at
competitive rates will remain key towards a continued improvement
in its profitability over the medium term.
Adequate Capitalization: VMPL's net worth improved to INR228
million at 1HFYE25 (FYE24: INR213 million), with leverage
(debt/equity) of 2.7x (FY24: 3.1, FY23: 2.2x). VMPL had adequate
capitalization levels at 1HFYE25, with tier 1 ratio of 31.8%
(FYE24: 28.1%). However, Ind-Ra believes capital infusion is
critical for the company to meet its medium-term growth objectives
while maintaining its mid-term leverage. As part of its near-term
strategy, VMPL would attempt to raise borrowings and infuse equity
to fund the growth in its AUM and maintain its leverage. Ind-Ra
expects the leverage to remain below 5.0x in the medium term, given
the systemic risks that MFIs are subject to.
Experienced Promoters: VMPL's board comprises directors with
experience of more than a decade in the microfinance sector and are
supported by a management team that has considerable expertise in
the MFI industry. With its extensive experience, the management has
prioritized the establishment of robust systems and risk management
processes. VMPL conducts local surveys in its operational areas,
targeting regions with low non-performing portfolios for
underwriting purposes. Ind-Ra believes that the management's
experience will continue to support the business's risk profile.
Liquidity
Adequate: At 1HFYE25, VMPL maintained a cumulative surplus of
around 7% of its total assets in the up-to-one-year bucket. As of
December 2024, the company had cash of INR37 million, against debt
repayments of INR47 million over the next one month. The liquidity
is supported by unutilized bank lines of INR40 million as of
December 2024.
Rating Sensitivities
Negative: A significant deterioration in the asset quality and
profitability metrics, leading to capital impairment and the
leverage exceeding 5.0x, on a sustained basis, and inability to
maintain adequate liquidity will lead to a negative rating action.
Positive: A substantial increase in the scale of operations while
reducing the geographical concentration, maintaining high level of
asset quality performance on a sustained basis, and enhanced
management strength, could lead to a positive rating action.
About the Company
VMPL is a registered NBFC-MFI extending collateral-free micro-loans
to group of women from low-income households under the joint
liability model. It operates through 21 branches in nine districts
of Tamil Nadu.
===============
M A L A Y S I A
===============
CAPITAL A: Deadline to Finalize Sale Extended to Mar. 24
--------------------------------------------------------
Capital A Berhad (formerly known as AirAsia Group Berhad) on Jan.
27 announced that it has mutually agreed with AirAsia X Berhad
("AAX") to extend the cut-off dates for the completion of the
proposed disposal of AirAsia Aviation Group Limited ("AAAGL") and
AirAsia Berhad ("AAB") to AAX.
The timeline has been extended by two months, from January 25 to
March 24, 2025, allowing both parties additional time to finalise
the transaction for AAAGL and AAB. Notably, all due diligence for
both entities has already been successfully completed.
Tony Fernandes, CEO of Capital A, said: "We are encouraged by the
progress we've made, and remain committed to ensuring everything is
right on track. This extension provides the time needed to finalise
all aspects of the transaction with precision, including obtaining
consent from the lessors, which is primarily done, and receiving
the earliest date (by end Feb) from the High Court of Malaya. Once
the court approves the arrangement, we will swiftly move to
complete the placement, which is already in advanced discussions.
"With key milestones already achieved, including the completion of
due diligence for both AirAsia Aviation Group and AirAsia Berhad,
as well as the approval from shareholders of both Capital A and
AirAsia X in October 2024, we are now in the final sprint.
"Upon completion, this transaction will result in a stronger,
globally competitive AirAsia, leveraging synergies between
short-haul and long-haul operations to improve efficiency,
profitability, and shareholder returns. It will also enhance
connectivity and customer experience for our guests. This move
unlocks significant growth opportunities, as it aligns with Capital
A's broader strategy to lead in the digital aviation and services
space. Capital A is looking forward to accelerating the growth of
our technology-driven aviation services and digital ecosystem,
particularly in response to the anticipated global rise in travel
demand."
This extension ensures that both parties have adequate time to
fulfill the necessary conditions and finalise the transaction. All
other terms and conditions of the SSPAs remain unchanged.
About Capital A
Capital A Bhd, formerly known as AirAsia Group Bhd, provides
low-cost air carrier service. The company provides services on
short-haul, point-to-point domestic and international routes.
Capital A, headquartered in Malaysia, operates from hubs in
Malaysia, Thailand, Indonesia, Philippines and India. The airline's
Malaysia and Thailand operations are undertaken via AirAsia Bhd and
Thai AirAsia Co Ltd while AirAsia Group's Indonesia and Philippines
operations are managed under PT Indonesia AirAsia and Philippines
AirAsia Inc.
Capital A triggered the PN17 suspended criteria in July 2020 after
its external auditors, Ernst & Young PLT, issued an unqualified
audit opinion with material uncertainty relating to going concern
in respect of its audited financial statements for the financial
year ended Dec. 31, 2019 (FY19) and its shareholders' equity on a
consolidated basis was 50% or less of its share capital.
Capital A also triggered the prescribed criteria pursuant to
Paragraph 8.04 and Paragraph 2.1(a) of PN17 of Bursa's Main Market
Listing Requirements (Main LR), where AirAsia's shareholders'
equity on a consolidated basis was 25% or less of its share capital
and the shareholders' equity is less than MYR40 million based on
the audited financial statements for FY20.
Following relief measures introduced by Bursa and the Securities
Commission Malaysia, Capital A was not classified as a PN17 listed
issuer and was not required to comply with the obligations under
Paragraph 8.04 and PN17 of the Main LR for a period of 18 months
from the date of the first relief announcement, theedgemarkets.com
said. The date of the first relief announcement was July 8, 2020,
and the 18-month period ended on Jan. 7, 2022. Under the relief
measures, companies that triggered any of the suspended criteria
between April 17, 2020 and June 30, 2021, would not be classified
as a PN17 and Guidance Note 3 (GN3) company for 12 months.
As reported in the Troubled Company Reporter-Asia Pacific in
mid-October 2024, shareholders have backed plans for budget carrier
AirAsia to be bought by its long-haul associate, AirAsia X paving
the way for the Malaysian-based airlines to finalise their
consolidation by the end of the year.
AirAsia X shareholders approved the proposed acquisition of Capital
A's equity interest in AirAsia units for MYR6.8 billion (US$1.6
billion) on Oct. 16, 2024, after Capital A shareholders gave the
nod on Oct. 14 to the deal, company statements said, according to
Reuters.
Capital A CEO Tony Fernandes said on Oct. 14, 2024, the disposal of
AirAsia Berhad and AirAsia Aviation Group, which includes AirAsia
units in Thailand, Indonesia, Philippines, and Cambodia, will pave
the way for Capital A's restructuring and exit from PN17 status.
=====================
N E W Z E A L A N D
=====================
BLACK ORIGIN: Creditors' Proofs of Debt Due on Feb. 28
------------------------------------------------------
Creditors of Black Origin Meat Processors (Gore) Limited are
required to file their proofs of debt by Feb. 28, 2025, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Jan. 16, 2025.
The company's liquidator is:
Simon Dalton
Gerry Rea Partners
PO Box 3015
Auckland
LEO'S CAR: Court to Hear Wind-Up Petition on Feb. 4
---------------------------------------------------
A petition to wind up the operations of Leo's Car Valet Co. Limited
will be heard before the High Court at Auckland on Feb. 4, 2025, at
10:45 a.m.
The Commissioner of Inland Revenue, filed the petition against the
company on Sept. 10, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
MOET INVESTMENTS: Creditors' Proofs of Debt Due on Feb. 20
----------------------------------------------------------
Creditors of Moet Investments Limited are required to file their
proofs of debt by Feb. 20, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan. 20, 2025.
The company's liquidators are:
Adam Botterill
Damien Grant
Waterstone Insolvency
PO Box 352
Auckland 1140
TE RAPA MOTOR: Hamilton Motelier Faces Liquidations
---------------------------------------------------
Waikato Times reports that a motelier who collected more than NZD26
million in taxpayer cash during the emergency housing boom now
faces liquidation for three Hamilton hotel strip businesses over
unpaid taxes.
Patrick Loughlin McGuire and Thi Kim Loan Nguyen received NZD26.4
million emergency housing grants between 2018 and 2024.
According to Waikato Times, the Hamilton-based pair owns seven
companies, six of them motels: Te Rapa Motor Inn, Ascot Motor
Lodge, Abbey Travel Lodge Motel, Hamilton Motel, Sails Motor Inn
and Sunrise Motel.
The facilities were packed to the rafters during the peak of the
housing crisis when emergency housing was rapidly expanded under
the Ardern Government, providing guaranteed high occupancy for
operators but a leaving a trail of social problems.
Now Inland Revenue has applied to put three into liquidation, one
is being liquidated by its landlord after Mr. McGuire and Nguyen
allegedly walked out on the lease and left a meth-tainted wreck,
and the lease for another was cancelled by the High Court, notes
the report.
Mr. McGuire declined to comment on the businesses when approached
by the Waikato Times, but those in the industry are puzzled by how
the once prosperous businesses could be left with tax bills and not
enough money for maintenance, Waikato Times says.
A former staffer who worked at Sails Motor Inn for nine years and
whom the Times agreed not to name, said the place was operated
loosely to collect rent but with little obligation to those staying
there.
"The system has failed people, but people like Patrick have failed
people as well," a former employee said of the motelier.
"In my eyes it was just let them [tenants] do whatever they want to
do, so he can get the money.
"Because of that we copped so much abuse."
In 2023 alone, Mr. McGuire made NZD2,056,120 through Sails Motor
Inn, information obtained by Waikato Times through the Official
Information Act shows. If all 20 rooms were occupied every day,
this averaged to a room fee of NZD280 per night.
A source familiar with the industry said a small motel that makes
NZD200,000 a year would have enough money to fix up the motel and
leave it in good shape, notes the report.
Living in a NZD2.5 million Matangi property with a professionally
maintained garden, money didn't seem to be a problem for Mr.
McGuire, judging by statements referred to in a 2022 dispute that
went to the High Court, according to Waikato Times.
Mr. McGuire and Nguyen's company Hamilton Accommodation Limited
(HAL) applied to stop landlord Yi Ming Investment from cancelling
their lease for Ascot Motor Lodge.
Waikato Times relates that Yi Ming Investment argued HAL broke
their lease conditions by modifying the manager's suite without the
landlord's or council's consent, and risked a NZD200,000 penalty.
The court ruled the lease should be cancelled and ordered HAL to
pay NZD23,555.70.
Last year, the landlord liquidated Mr. McGuire's Sails Motor Lodge
business, with a first liquidator's report identifying a total NZD3
million debt owed to creditors - including more than NZD2 million
to trade creditors and NZD850,000 to IRD.
ULTIMATE SCAFFOLDING: Creditors' Proofs of Debt Due on Feb. 26
--------------------------------------------------------------
Creditors of Ultimate Scaffolding Limited are required to file
their proofs of debt by Feb. 26, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Jan. 23, 2025.
The company's liquidator is:
Digby John Noyce
RES Corporate Services Limited
PO Box 301890
Albany
Auckland 0752
VILLAGE CAFE: Court to Hear Wind-Up Petition on Feb. 5
------------------------------------------------------
A petition to wind up the operations of The Village Cafe (Kerikeri)
Limited will be heard before the High Court at Whangarei on Feb. 5,
2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 29, 2024.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
GLADES PROPERTIES: Creditors' Proofs of Debt Due on Feb. 24
-----------------------------------------------------------
Creditors of Glades Properties Pte. Ltd. are required to file their
proofs of debt by Feb. 24, 2025, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Jan. 17, 2025.
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
GRAND HARBOUR FUND: Court to Hear Wind-Up Petition on Feb. 7
------------------------------------------------------------
A petition to wind up the operations of Grand Harbour (Fund
Management) Singapore Pte. Ltd. will be heard before the High Court
of Singapore on Feb. 7, 2025, at 10:00 a.m.
Sim Mong Teck & Partners filed the petition against the company on
Nov. 20, 2024.
The Petitioner's solicitors are:
Emerald Law LLC
3 Shenton Way
#11-10 Shenton House
Singapore 068805
GRAND HARBOUR: Court to Hear Wind-Up Petition on Feb. 14
--------------------------------------------------------
A petition to wind up the operations of Grand Harbour (Asset
Holding) Singapore Pte. Ltd. will be heard before the High Court of
Singapore on Feb. 14, 2025, at 10:00 a.m.
Sim Mong Teck & Partners filed the petition against the company on
Nov. 19, 2024.
The Petitioner's solicitors are:
Emerald Law LLC
3 Shenton Way
#11-10 Shenton House
Singapore 068805
SINGNET SOLUTIONS: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on Jan. 10, 2025, to
wind up the operations of Singnet Solutions Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidators are:
BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
SIR MONEY: Court Enters Wind-Up Order
-------------------------------------
The High Court of Singapore entered an order on Jan. 9, 2025, to
wind up the operations of Sir Money Changer Pte. Ltd.
Ripple Markets Apac Pte. Ltd. filed the petition against the
company.
The company's liquidators are:
Cameron Lindsay Duncan
David Dong-Won Kim
c/o KordaMentha
16 Collyer Quay
#30-01, Collyer Quay Centre
Singapore 049318
=================
S R I L A N K A
=================
OXFORD COLLEGE: Fitch Revises National LT Rating to 'BB-(lka)'
--------------------------------------------------------------
Fitch Ratings has upgraded the National Long-Term Ratings of seven
Sri Lankan non-financial corporates and revised the ratings of two
following the recalibration of the agency's Sri Lankan National
Rating scale to reflect changes in the relative creditworthiness
among the country's issuers. This follows the upgrade of the
sovereign's Long-Term Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC-' on 20 December 2024. Fitch has also affirmed the
National Long-Term Ratings of 13 non-financial corporates.
For details, see Fitch Ratings Recalibrates Sri Lanka's National
Rating Scale, published 16 January 2025. Revision ratings are used
to modify ratings for reasons that are not related to credit
quality.
Abans PLC
- National Long-Term Rating upgraded to 'AA(lka)' from 'AA-(lka)';
Outlook Stable
Singer (Sri Lanka) PLC
- National Long-Term Rating upgraded to 'AA-(lka)' from 'A(lka)';
Outlook Stable
Sri Lanka Telecom PLC
- National Long-Term Rating upgraded to 'AA-(lka)' from 'A(lka)';
Rating Watch Positive maintained
Lakdhanavi Limited
- National Long-Term Rating upgraded to 'AA-(lka)' from 'A(lka)';
Outlook Stable
Windforce PLC
- National Long-Term Rating upgraded to 'A+(lka)' from 'BBB+(lka)';
Outlook Stable
Ceylon Electricity Board
- National Long-Term Rating upgraded to 'A(lka)' from 'BB+(lka)';
Outlook Stable
Resus Energy PLC
- National Long-Term Rating upgraded to 'A-(lka)' from 'BBB(lka)';
Outlook Stable
Bogawantalawa Tea Estates PLC
- National Long-Term Rating revised to 'BBB+(lka)' from 'A(lka)';
Outlook Stable
Oxford College of Business (Private) Limited
- National Long-Term Rating revised to 'BB-(lka)' from 'BBB+(lka)';
Outlook Negative
Dialog Axiata PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
Hayleys PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
Hemas Holdings PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
Lion Brewery (Ceylon) PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
Melstacorp PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
Distilleries Company of Sri Lanka PLC
- National Long-Term Rating affirmed at 'AAA(lka)'; Outlook Stable
CIC Holdings PLC
- National Long-Term Rating affirmed at 'AA+(lka)'; Outlook Stable
Ceat Kelani Holdings Pvt Limited
- National Long-Term Rating affirmed at 'AA+(lka)'; Outlook Stable
Sunshine Holdings PLC
- National Long-Term Rating affirmed at 'AA+(lka)'; Outlook Stable
JAT Holdings PLC
- National Long-Term Rating affirmed at 'AA(lka)'; Outlook Stable
DSI Samson Group (Private) Limited
- National Long-Term Rating affirmed at 'AA(lka)'; Outlook Stable
Vidullanka PLC
- National Long-Term Rating affirmed at 'A+(lka)'; Outlook Stable
Sierra Cables PLC
- National Long-Term Rating affirmed at 'A+(lka)'; Outlook Stable
Key Rating Drivers
Sri Lanka Telecom PLC (SLT)
The upgrade of SLT's National Long-Term Rating to 'AA-(lka)' from
'A(lka)' follows the upgrade of its parent, the Sri Lankan
sovereign. SLT's Standalone Credit Profile (SCP) is stronger than
that of the state, reflecting the company's market leadership in
fixed telephone and broadband services, second-largest share in
mobile, ownership of an extensive optical fibre network and a
strong financial profile. However the sovereign's weak credit
profile is a drag on SLT's rating under Fitch's Parent and
Subsidiary Linkage (PSL) Rating Criteria.
The Rating Watch Positive (RWP) on SLT continues to reflect the
potential rating upside from the removal of linkages with the Sri
Lankan government, as the state is in the process of selling its
50.2% stake in the company. Fitch believes state ownership will no
longer be a drag on SLT's rating following the sale. Fitch will
resolve the RWP when the proposed disposal becomes practically
unconditional, which may take longer than six months.
For further information on SLT's key rating drivers, please refer
to Fitch Maintains Sri Lanka Telecom's 'A(lka)' National Rating on
Watch Positive
Ceylon Electricity Board (CEB)
The upgrade of CEB's National Long-Term Rating to 'A(lka)' from
'BB+(lka)' with a Stable Outlook follows the upgrade of the Sri
Lankan sovereign's Local-Currency IDR. CEB's ratings are equalised
with the Sri Lankan sovereign's under Fitch's Government-Related
Entities (GRE) Rating Criteria. This is based on its assessment
that there is a very high likelihood that CEB, as the country's
monopoly electricity transmitter and distributor with a high share
of generation, would continue to receive government support.
For further information on CEB's key rating drivers, please refer
to Fitch Affirms Ceylon Electricity Board at BB+(lka); Outlook
Stable
Lakdhanavi Limited
The upgrade of Lakdhanavi's National Long-Term Rating to 'AA-(lka)'
from 'A(lka)' with a Stable Outlook reflects the improvement in
CEB's credit profile, as it is a key counterparty. Fitch rates
Lakdhanavi on the consolidated profile of its parent, LTL Holdings
Limited (LTLH), based on its PSL rating criteria. The rating is
constrained at the current level by LTLH's large counterparty
exposure to CEB, which Fitch believes will continue driving the
majority of LTLH's gross profit in the next few years. Fitch
expects payment delays from CEB to power generators like LTLH to
gradually ease, but remain subject to ongoing state support and a
sustained adherence to a cost-reflective tariff policy in the
medium term.
For further information on Lakdhanavi's key rating drivers, please
refer to Fitch Affirms Lakdhanavi at 'A(lka)'; Outlook Stable
Windforce PLC
The upgrade of Windforce's National Long-Term Rating to 'A+(lka)'
from 'BBB+(lka)' with a Stable Outlook reflects the improvement in
CEB's credit profile, as it is a key off-taker. Windforce's rating
is weighed down by the weak credit profile of CEB, the sole
electricity transmitter and distributor in Sri Lanka, despite CEB's
improved financial performance.
CEB's rating is ultimately contingent upon support from the Sri
Lankan sovereign, which has a weak credit profile. Fitch believes
medium-term risks from weaker collection of CEB's dues remain,
which is subject to the consistent implementation of CEB's
cost-reflective tariff mechanism.
For further information on Windforce's key rating drivers, please
refer to Fitch Publishes Sri Lanka's WindForce's 'BBB+(lka)'
National Rating; Outlook Stable
Resus Energy PLC
The upgrade of Resus Energy's National Long-Term Rating to
'A-(lka)' from 'BBB(lka)' with a Stable Outlook reflects the
improvement in CEB's credit profile, as CEB is the company's sole
off-taker. Resus' rating also captures its small operating scale
and tight liquidity. The company has embarked on a number of
initiatives to diversify its revenue away from CEB, which is likely
to generate cash flow in the next few years, although Fitch expects
Resus' exposure to CEB to remain a key rating driver over the
medium term.
For more information on Resus Energy's key rating drivers, please
refer to Fitch Revises Outlook on Resus Energy PLC to Stable;
Affirms at 'BBB(lka)'
Abans PLC
The upgrade of Abans' National Long-Term Rating to 'AA(lka)' from
'AA-(lka)' with a Stable Outlook reflects the improvement in the
company's medium-term prospects following a sustained improvement
in the health of Sri Lanka's external sector, reflected in the
sovereign rating upgrade. The medium-term risks that Sri Lanka will
re-impose import curbs on consumer products has been materially
reduced, in its view.
Abans' cash flow is highly dependent on imported consumer goods for
resale locally, despite efforts to enhance its local manufacturing
capability. The rating also factors in the company's improving
financial profile.
For more information on Abans' key rating drivers, please refer to
Fitch Affirms Abans at 'AA-(lka)'/Stable; Rates Proposed Debentures
'AA-(lka)'
Singer (Sri Lanka) PLC
The upgrade of Singer's National Long-Term Rating to 'AA-(lka)'
from 'A(lka)' with a Stable Outlook reflects the improvement in the
company's medium-term prospects following the sustained improvement
in Sri Lanka's external sector's health, reflected in the sovereign
rating upgrade. The medium-term risks that Sri Lanka will re-impose
import curbs on consumer products has been materially reduced, in
its view.
Singer's cash flow is highly dependent on imported consumer goods
for resale locally, despite efforts to enhance its local
manufacturing capability. The rating also factors in Singer's high
leverage, mostly due to the debt and deposits of its licensed
finance company subsidiary, Singer Finance (Lanka) PLC), which
Fitch believes Singer will support if required given the
subsidiary's strategic importance.
The upgrade of Singer's rating also factors in the company's strong
revenue growth in the first half of the financial year ending March
2025 (1HFY25) and improving cash flow, which Fitch expects will be
sustained in the next 12-18 months amid a recovery in consumer
spending. Fitch forecasts Singer's EBITDAR fixed-charge cover to
improve to around 2.0x in FY25 (FY24: 0.9x) as a result, while
EBITDAR net leverage will fall to around 8.0x from 12.5x.
Singer's rating is not notched for support from its stronger
parent, Hayleys PLC, as Fitch believes Hayleys has limited
incentive to provide support, according to its PSL criteria. This
is driven by its assessment of 'Low' legal, operational, and
strategic incentives for Hayleys to support Singer, based on its
criteria.
For the key rating drivers, key assumptions, financial statement
adjustments and liquidity and debt structure analysis for all other
issuers, please refer to the previous rating action commentaries
via the following links:
Dialog Axiata PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sri-lanka-dialog-axiata-at-aaa-lka-outlook-stable-20-03-2024
Hayleys PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-hayleys-at-aaa-lka-outlook-stable-15-08-2024
Hemas Holdings PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-hemas-holdings-at-aaa-lka-outlook-stable-26-04-2024
Lion Brewery PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-lion-brewery-at-aaa-lka-outlook-stable-27-11-2024
Melstacorp PLC / Distilleries Company of Sri Lanka
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-melstacorp-subsidiary-distilleries-at-aaa-lka-outlook-stable-20-10-2023
CIC Holdings PLC
https://www.fitchratings.com/research/corporate-finance/fitch-publishes-cic-holdings-plc-first-time-rating-of-aa-lka-outlook-stable-20-12-2023
Ceat Kelani Holdings Pvt Limited
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sri-lanka-ceat-kelani-at-aa-lka-outlook-stable-12-09-2024
Sunshine Holdings PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sunshine-holdings-at-aa-lka-outlook-stable-01-07-2024
JAT Holdings PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-jat-holdings-at-aa-lka-outlook-stable-21-03-2024
DSI Samson Group (Private) Limited
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-dsi-samson-group-at-aa-lka-outlook-stable-16-07-2024
Vidullanka PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sri-lanka-vidullanka-plc-at-a-ika-outlook-stable-24-07-2024
Sierra Cables PLC
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-sierra-cables-at-a-lka-outlook-stable-07-05-2024
Derivation Summary
Dialog, Melstacorp, Distilleries, Hayleys, Hemas and Lion are rated
'AAA(lka)' to reflect a combination of stable operating cash flow
from defensive end-products or markets, strong market positions in
core businesses, large operating scale, or diversification across
business segments. The ratings are further supported by strong
financial profiles, solid liquidity and robust domestic funding
access.
CIC, Sunshine and Ceat Kelani are rated 'AA+(lka)', factoring in a
combination of cash flow diversification, sizeable operating scale,
and meaningful domestic market positions, although these attributes
are more modest than for higher-rated peers. All three issuers
benefit from strong financial profiles and solid funding access.
Ceat Kelani's operating scale is smaller than that of these peers,
but this is counterbalanced by its stronger financial profile.
CIC's rating is constrained by the limited transparency of its
parent's credit profile.
DSI's 'AA(lka)' rating reflects defensive demand for domestic
footwear and diversification of cash flow from rubber tyre exports,
mitigated by high competition in these segments. Abans' 'AA(lka)'
rating benefits from its duopoly status in domestic consumer
electronics retail, leading to a stronger market position in its
core business, although balanced by more cyclical demand for its
products than for DSI. Both companies have meaningful operating
scale and strong funding access to domestic banks. JAT Holdings'
scale is meaningfully smaller than these peers', but
counterbalanced by its leading position in the niche wood coating
market, long track record with its overseas supplier, and strong
financial profile.
Singer's 'AA-(lka)' rating reflects its leading market position in
domestic consumer electronics retail as part of the virtual duopoly
with Abans. The one-notch lower rating for Singer versus Abans
reflects the drag on Singer's rating due to the weaker credit
profile of its large licensed finance company, which Fitch believes
Singer will support if needed given the subsidiary's strategic
importance.
Lakdhanavi's 'AA-(lka)' rating is one-notch higher than that of
power generation peers Windforce and Vidullanka due to its much
larger operating scale and geographic and business diversification.
Lakdhanavi's rating is weighed down by the credit risk of its key
counterparty, CEB. The company provides critical services to Sri
Lanka's power sector and therefore Fitch believes CEB may
prioritise payments to Lakdhanavi during periods of stress,
supporting the company's higher rating than CEB.
Windforce and Vidullanka are rated 'A+(lka)' to reflect their
contractual revenue visibility via power purchase agreements with
state-owned utilities. Windforce has larger operating capacity than
Vidullanka and more diversified generation resources. Vidullanka's
exposure to a GRE counterparty owned by a stronger sovereign parent
in Uganda (B/Stable) counterbalances its smaller scale and
concentration in hydropower generation. Most of Vidullanka's cash
flow stems from overseas, while most of its debt is onshore with
Sri Lankan banks, exposing the company to potential repatriation
risks. However, Vidullanka's track record of overseas receipts has
been steady.
Sierra Cables has smaller operating scale than Windforce and
Vidullanka, and is exposed to the construction sector, which is
more cyclical than demand for power generation. This is
counterbalanced by Fitch's expectation of improving prospects in
the domestic construction industry over the medium term, and
Sierra's prominent market position as a domestic manufacturer of
steel cables.
Resus Energy's 'A-(lka)' rating, which is two notches lower than
that of the rated domestic power generation companies, reflects its
smaller operating capacity and tight liquidity. These risks are
counterbalanced by contractual revenue visibility with CEB, and the
counterparty's improving credit profile.
SLT's rating is constrained at 'AA-(lka)' in line with Fitch's GRE
rating criteria because the Sri Lankan government directly and
indirectly has a controlling stake in the company and exercises
significant influence over its operations.
CEB's 'A(lka)' rating reflects the credit risk of its parent, the
Sri Lankan sovereign, in line with Fitch's GRE criteria. This is
based on its assessment of a very strong likelihood of support from
the state. CEB is the country's monopoly electricity transmitter
and distributor, and also accounts for around 75% of the country's
power generation.
Bogawantalawa Tea Estates' 'BBB+(lka)' rating is driven by the
long-term structural decline at Sri Lankan tea plantations amid
regulatory overhang on costs, which is driving weak profitability
and weighing on the industry's appetite for replanting. These risks
are counterbalanced by the company's healthy financial profile with
cash and equivalents exceeding interest-bearing debt, which should
act as a buffer against medium-term challenges.
Oxford College's rating reflects its small scale and tight
liquidity compared with higher-rated peers. Fitch expects its cash
and cash equivalents to be depleted by end-FY25 and trade payables
may be deferred. This is because free cash flow will otherwise be
insufficient to meet large debt maturities in the next 12-18 months
due to limited financing access. The Negative Outlook reflects
increased business risk, as Fitch believes the deferral of trade
payables could affect its relationships with key overseas
suppliers.
RATING SENSITIVITIES
Dialog Axiata
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch does not envisage any negative rating action in the medium
term, given the standalone strength of the business profile, low
financial leverage and implied support from the stronger parent.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade, as Dialog is rated at the
highest end of its Sri Lankan National Rating scale.
Hayleys
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Group EBITDAR net leverage increasing above 4.0x on a sustained
basis;
- Group EBITDAR fixed-charge coverage falling below 2.0x on a
sustained basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade, as the company is already at
the highest rating on the Sri Lankan National Rating scale.
Hemas Holdings
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Group EBITDA net leverage rising above 4.5x on a sustained
basis;
- Group EBITDA interest cover falling below 2.3x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade, as the company is already at
the highest rating on the Sri Lankan National Rating scale.
Lion Brewery
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- An increase in Lion's leverage, measured as EBITDA net leverage,
to over 5.0x for a sustained period;
- A decrease in EBITDA interest coverage to less than 2.0x for a
sustained period;
- Stronger links with weaker parent Carson Cumberbatch under
Fitch's PSL criteria or weakening of the parent's consolidated
credit profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade, as Lion is already at the
highest rating on its Sri Lankan National Rating scale.
Melstacorp and Distilleries
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Consolidated EBITDAR net leverage (including 51% consolidation of
Aitken Spence but excluding Continental Insurance Lanka Limited)
rising to over 5.5x for a sustained period;
- Group operating EBITDAR fixed-charge coverage (including 51%
consolidation of Aitken Spence but excluding Continental Insurance
Lanka) falling below 1.8x for a sustained period;
- Weakening in the group's business risk profile, as reflected in a
significantly lower EBITDA contribution from the beverage segment,
due to large investments in riskier businesses without a
commensurate improvement in leverage, or due to a weaker
competitive position in spirits.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade, as the company is already at
the highest rating on Sri Lanka's national rating scale
CIC Holdings
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA net leverage increasing above 4.0x for a sustained
period;
- EBITDA interest coverage falling below 2.3x for a sustained
period;
- Further related-party transactions, including with parent Paint
and General Industries (Pvt) Ltd (PGIL).
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch may reassess CIC's rating should there be improved
transparency on parent PGIL's credit profile.
Ceat Kelani
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- An increase in EBITDA net leverage above 1.0x for a sustained
period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- No upgrade in the medium term, given the exposure to more
volatile cash flow and small scale compared with higher-rated
peers.
Sunshine Holdings
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- An increase in EBITDA net leverage (including proportionate
consolidation of Sunshine Wilmar Private Limited) to more than 4.0x
over a sustained period;
- EBITDA interest coverage of gross interest (including
proportionate consolidation of Sunshine Wilmar Private Limited)
falling below 2.3x over a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Increased scale of operations, while maintaining a healthy
financial profile.
JAT Holdings
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA interest coverage falling below 2.0x on a sustained
basis;
- EBITDA net leverage rising above 4.0x on a sustained basis;
- A significant weakening in the company's liquidity profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch does not anticipate an upgrade in the medium term. The
rating may be upgraded in the longer term if there is a material
increase in scale while maintaining the current financial risk
profile.
DSI Samson Group
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDAR fixed-charge coverage declining below 1.3x on a sustained
basis;
- An increase in EBITDAR net leverage, to above 5.5x on a sustained
basis;
- Significant weakening in the company's liquidity profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- No likelihood of an upgrade in the medium term, given the
exposure to more volatile cash flow than higher-rated peers.
Abans
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDAR net leverage, including consolidation of the Colombo City
Centre project, exceeding 5.5x for a sustained period;
- EBITDAR fixed-charge coverage, including full consolidation of
the Colombo City Centre project, below 1.3x for a sustained
period;
- A significant weakening in the company's liquidity position.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is unlikely as the rating is constrained by limited
scale and leverage versus higher-rated peers.
Singer
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDAR fixed-charge coverage less than 1.5x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDAR net leverage sustained below 5.5x, reflecting lower risk
from its licensed finance company subsidiary or an improvement in
Singer's corporate leverage to compensate for the finance company's
risks.
SLT
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch does not expect negative rating action as the rating is on
RWP. However, Fitch will remove the RWP and affirm the National
Long-Term Rating at 'AA-(lka)' with a Stable Outlook if the
proposed disposal does not proceed and the linkages with the state
remain intact.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch will resolve the RWP when the proposed disposal becomes
practically unconditional, which may take more than six months, and
once Fitch has sufficient information on the new majority
shareholder's credit profile and linkages with SLT and the proposed
funding structure;
- An upgrade of the Sri Lankan sovereign's Long-Term Local-Currency
IDR could result in an upgrade of SLT's National Long-Term Rating
if the linkages with the state remain intact.
CEB
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of the Sri Lankan sovereign's Long-Term
Local-Currency IDR could result in corresponding action on CEB's
National Long-Term Rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade of the Sri Lankan sovereign's Long-Term Local-Currency
IDR could result in corresponding action on CEB's National
Long-Term Rating.
Lakdhanavi
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- LTLH's EBITDA net leverage rising above 7.5x on a sustained
basis;
- LTLH's EBITDA interest coverage falling below 1.5x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A sustained and substantial improvement in counterparty risk as
reflected in a continued improvement in CEB's credit profile, while
maintaining LTLH's EBITDA net leverage below 6.5x on a sustained
basis.
Vidullanka
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA net leverage sustained above 4.0x
- EBITDA interest coverage sustained below 1.8x
- Material increase in counterparty risk or risk of repatriating
cash flow from overseas
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Significant increase in operating scale and meaningful
diversification of power plants
Sierra Cables
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA net leverage over 4.0x for a sustained period;
- EBITDA interest coverage falling below 1.5x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch does not expect an upgrade in the medium term given
Sierra's modest market position and business scale compared with
higher-rated peers.
Windforce
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA net leverage above 5.0x for a sustained period;
- EBITDA interest coverage below 1.5x for a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A sustained and substantial reduction in counterparty risk, as
reflected in a continued improvement in CEB's credit profile.
Resus Energy
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA net leverage above 6.5x for a sustained period;
- EBITDA interest coverage below 1.5x for a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch does not expect an upgrade given Resus' small scale versus
higher-rated peers.
Bogawantalawa Tea Estates
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustained negative free cash flow, leading to a weakening of the
liquidity position or banking access;
- EBITDA interest coverage falling below 2.0x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- There is no scope for an upgrade given exposure to structurally
weakening crops (tea or rubber) with regulatory constraints on crop
diversification impeding earnings growth and scale.
Oxford College
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to extend trade payables to suppliers.
- Further weakening in liquidity and funding access, including an
inability to settle maturing debt with operating cash flow;
- Increased likelihood of non-renewal of supplier contracts.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Material improvement in liquidity and funding access, provided
contracts with key suppliers are renewed.
Public Ratings with Credit Linkage to other ratings
SLT's and CEB's ratings are directly affected by the Sri Lankan
sovereign's credit profile, in line with Fitch's PSL and GRE
criteria, respectively.
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
Fitch does not provide ESG relevance scores for Abans
PLC,Bogawantalawa Tea Estates PLC,CIC Holdings PLC,Ceat Kelani
Holdings Pvt Limited,Ceylon Electricity Board,DSI Samson Group
(Private) Limited,Dialog Axiata PLC,Distilleries Company of Sri
Lanka PLC,Hayleys PLC,Hemas Holdings PLC,JAT Holdings
PLC,Lakdhanavi Limited,Lion Brewery (Ceylon) PLC,Melstacorp
PLC,Oxford College of Business (Private) Limited,Resus Energy
PLC,Sierra Cables PLC,Singer (Sri Lanka) PLC,Sri Lanka Telecom
PLC,Sunshine Holdings PLC,Vidullanka PLC,WindForce PLC.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
Entity/Debt Rating Prior
----------- ------ -----
Lion Brewery
(Ceylon) PLC Natl LT AAA(lka) Affirmed AAA(lka)
Sri Lanka
Telecom PLC Natl LT AA-(lka) Upgrade A(lka)
senior
unsecured Natl LT AA-(lka) Upgrade A(lka)
DSI Samson
Group (Private)
Limited Natl LT AA(lka) Affirmed AA(lka)
Sunshine
Holdings PLC Natl LT AA+(lka) Affirmed AA+(lka)
Ceylon
Electricity
Board Natl LT A(lka) Upgrade BB+(lka)
senior
unsecured Natl LT A(lka) Upgrade BB+(lka)
Sierra
Cables PLC Natl LT A+(lka) Affirmed A+(lka)
Vidullanka PLC Natl LT A+(lka) Affirmed A+(lka)
senior
unsecured Natl ST F1(lka) Affirmed F1(lka)
CIC Holdings
PLC Natl LT AA+(lka) Affirmed AA+(lka)
Singer
(Sri Lanka) PLC Natl LT AA-(lka) Upgrade A(lka)
senior
unsecured Natl ST F1+(lka) Upgrade F1(lka)
Hemas Holdings
PLC Natl LT AAA(lka) Affirmed AAA(lka)
Abans PLC Natl LT AA(lka) Upgrade AA-(lka)
senior
unsecured Natl LT AA(lka) Upgrade AA-(lka)
senior
unsecured Natl ST F1+(lka) Affirmed F1+(lka)
Lakdhanavi
Limited Natl LT AA-(lka) Upgrade A(lka)
JAT Holdings
PLC Natl LT AA(lka) Affirmed AA(lka)
Distilleries
Company of Sri
Lanka PLC Natl LT AAA(lka) Affirmed AAA(lka)
WindForce PLC Natl LT A+(lka) Upgrade BBB+(lka)
Bogawantalawa
Tea Estates PLC Natl LT BBB+(lka)Revision Rating A(lka)
senior
unsecured Natl LT BBB+(lka)Revision Rating A(lka)
Melstacorp PLC Natl LT AAA(lka) Affirmed AAA(lka)
Oxford College
of Business
(Private)
Limited Natl LT BB-(lka) Revision Rating BBB+(lka)
Dialog
Axiata PLC Natl LT AAA(lka) Affirmed AAA(lka)
Resus
Energy PLC Natl LT A-(lka) Upgrade BBB(lka)
senior
unsecured Natl LT A-(lka) Upgrade BBB(lka)
Ceat Kelani
Holdings Pvt
Limited Natl LT AA+(lka) Affirmed AA+(lka)
Hayleys PLC Natl LT AAA(lka) Affirmed AAA(lka)
[*] Fitch Affirms 'BB+(lka)' National Ratings on 3 Sri Lankan Banks
-------------------------------------------------------------------
Fitch Ratings has upgraded the National Long-Term Ratings of 10 Sri
Lankan banks following the recent sovereign upgrade and
recalibration of the agency's Sri Lankan national rating scale. At
the same time, Fitch has affirmed the National Long-Term Ratings of
five Sri Lankan banks.
The recalibration reflects changes in the relative creditworthiness
of Sri Lankan issuers after Fitch upgraded Sri Lanka's Long-Term
Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC-' on
20 December 2024. Fitch typically does not assign Outlooks to
sovereigns with a rating of 'CCC+' or below.
National scale ratings are a risk ranking of issuers in a
particular market designed to help local investors differentiate
risk. Sri Lanka's national scale ratings are denoted by the unique
identifier '(lka)'. Fitch adds this identifier to reflect the
unique nature of the Sri Lankan national scale. National scales are
not comparable with Fitch's international rating scales or with
other countries' national rating scales. For details, see "Fitch
Ratings Recalibrates Sri Lanka's National Rating Scale", dated 16
January 2025.
The banks' National Ratings consider their creditworthiness
relative to other issuers in the country. The recalibration of the
Sri Lankan National Rating scale has resulted in upgrades of the
National Long-Term Ratings of the following banks. The Outlooks
remain Stable.
Bank of Ceylon (BOC) to 'AA-(lka)', from 'A(lka)'
People's Bank (Sri Lanka) (PB) to 'AA-(lka)', from 'A(lka)'
Commercial Bank of Ceylon PLC (COMB) to 'AA-(lka)', from 'A(lka)'
Hatton National Bank PLC (HNB) to 'AA-(lka)', from 'A(lka)'
Sampath Bank PLC to 'AA-(lka)', from 'A(lka)'
Seylan Bank PLC to 'A+(lka)', from 'A-(lka)'
DFCC Bank PLC to 'A(lka)', from 'A-(lka)'
National Development Bank PLC (NDB) to 'A(lka)', from 'A-(lka)'
Nations Trust Bank PLC (NTB) to 'A(lka)', from 'A-(lka)'
Pan Asia Banking Corporation PLC (PABC) to 'BBB(lka)', from
'BBB-(lka)'
Fitch has also affirmed the national ratings of the following
banks. For their key rating drivers and rating sensitivities,
please refer to the previous rating action commentaries:
Amana Bank PLC - https://www.fitchratings.com/site/pr/10283247
Union Bank of Colombo PLC (UB) -
https://www.fitchratings.com/site/pr/10283288
SANASA Development Bank PLC (SDB) -
https://www.fitchratings.com/site/pr/10283289
Housing Development Finance Corporation Bank of Sri Lanka (HDFC) -
https://www.fitchratings.com/site/pr/10283246
Cargills Bank PLC (CBL) -
https://www.fitchratings.com/site/pr/10283245
Key Rating Drivers
The National Rating upgrades are driven by the upgrade of the
sovereign's Long-Term Local-Currency IDR and the recalibration of
the national rating scale. The ratings reflect the relative
creditworthiness of Sri Lankan issuers. Fitch believes the
sovereign's credit profile improvement has alleviated
sovereign-related stresses on the banks' operating environment (OE)
of 'ccc+'/stable as well as on financial and non-financial factors,
due to the strong link between the sovereign's financial health and
the banks' credit profiles.
The Negative Outlook on UB reflects the potential for its capital
buffers to deplete relative to similarly rated peers, alongside the
loan book expansion Fitch expects as it pursues market share
growth.
The affirmation of CBL's National Rating underpins Fitch's view
that extraordinary support would be forthcoming from the ultimate
parent, CT Holdings PLC, if needed. The Negative Outlook reflects
downside risks from its increasing size relative to that of its
ultimate parent, which could constrain the parent's ability to
provide support in times of need.
The affirmations of the National Ratings of Amana, UB, SDB and HDFC
reflect the unchanged relative creditworthiness of these banks
compared to other Fitch-rated Sri Lankan entities following the
recalibration.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The National Ratings are sensitive to a change in the banks'
creditworthiness relative to other Sri Lankan issuers. A downgrade
of the banks' National Ratings is most likely to stem from a
deterioration in Sri Lanka's sovereign rating, through its
influence on the banks' OE.
A deterioration in these banks' key credit metrics beyond its
base-case expectations relative to peers would also lead to
increased downward pressure on the banks' ratings, which are driven
by their intrinsic financial strength, independent of any sovereign
rating changes.
A deterioration in UB's key credit metrics, especially a
significant deterioration in capital ratios relative to its risk
profile, such as a sustained drop in its common equity Tier 1 ratio
to below 14% or excessive growth leading to a large erosion of its
capital buffers relative to peers, could lead to a downgrade of
UB's rating.
CBL's rating is sensitive to changes in its parent's credit profile
as well as Fitch's opinion around the parent's ability or
propensity to extend timely extraordinary support. A continued
increase in CBL's balance sheet relative to the parent's that makes
extraordinary support more onerous could lead to a multiple-notch
downgrade in CBL's national rating to reflect its standalone credit
strength.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The National Ratings are sensitive to a change in the banks'
creditworthiness relative to other Sri Lankan issuers. Upside to
the National Long-Term Ratings of BOC, PB, COMB, HNB and Sampath is
limited in the near term, due to its assessment of the sovereign
rating and the OE. That said, an improvement in Sri Lanka's
sovereign rating may lead to an upgrade of these banks' National
Ratings. For the other banks, excluding CBL, sustained improvement
in their key credit metrics beyond its base case expectations,
relative to peers, could lead to an upgrade of their National
Ratings.
There is limited scope for upward rating action on UB and CBL given
the Negative Outlook. Fitch may revise the Outlook to Stable if UB
sustains its capital buffers at a level that is commensurate with
its risk profile and OE-related risks, most likely through enhanced
capital levels and/or moderated growth plans. Fitch would revise
the Outlook on CBL to Stable if the credit profile of its ultimate
parent improves to the extent that any extraordinary support for
CBL would become more manageable.
BOC and PB each have a 1.78% equity stake in Fitch Ratings Lanka
Ltd. No shareholder other than Fitch, Inc. is involved in the
day-to-day rating operations of, or credit reviews undertaken by,
Fitch Ratings Lanka.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Fitch has taken corresponding rating action on the banks' national
scale debt ratings, where assigned. The outstanding senior
unsecured debt ratings of DFCC and HDFC and the proposed senior
unsecured green bonds of COMB are rated at the same level as these
banks' National Long-Term Ratings, in accordance with Fitch's
criteria, as the debt ranks equally with the claims of the bank's
other senior unsecured creditors.
The outstanding Sri Lankan rupee-denominated subordinated debt of
BOC, COMB, HNB, Sampath, NDB, Seylan, DFCC, NTB and Seylan are
rated two notches below their respective National Rating anchors.
This reflects Fitch's baseline notching for loss severity for this
type of debt and its expectations of poor recoveries upon
non-performance. There is no additional notching for
non-performance risks, as the notes do not incorporate
going-concern loss-absorption feature.
Fitch has simultaneously upgraded the expected National Long-Term
Rating of Sampath's proposed Sri Lankan rupee-denominated Basel
III-compliant subordinated debentures to 'A(EXP)(lka)' from
'BBB+(EXP)(lka)', in line with the anchor rating upgrade.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
The assigned senior and subordinated debt ratings will move in
tandem with the banks' National Long-Term Rating.
Public Ratings with Credit Linkage to other ratings
CBL's National Long-Term Rating is driven by support from its
ultimate parent, CT Holdings PLC.
Entity/Debt Rating Prior
----------- ------ -----
People's Bank
(Sri Lanka) Natl LT AA-(lka) Upgrade A(lka)
Union Bank of
Colombo PLC Natl LT BBB-(lka) Affirmed BBB-(lka)
Seylan Bank PLC Natl LT A+(lka) Upgrade A-(lka)
Subordinated Natl LT A-(lka) Upgrade BBB(lka)
SANASA Development
Bank PLC Natl LT BB+(lka) Affirmed BB+(lka)
Amana Bank PLC Natl LT BBB-(lka) Affirmed BBB-(lka)
Cargills Bank PLC Natl LT A(lka) Affirmed A(lka)
DFCC Bank PLC Natl LT A(lka) Upgrade A-(lka)
subordinated Natl LT BBB+(lka) Upgrade BBB(lka)
senior
unsecured Natl LT A(lka) Upgrade A-(lka)
National Development
Bank PLC Natl LT A(lka) Upgrade A-(lka)
Subordinated Natl LT BBB+(lka) Upgrade BBB(lka)
Sampath Bank PLC Natl LT AA-(lka) Upgrade A(lka)
subordinated Natl LT A(lka) Upgrade BBB+(lka)
subordinated Natl LT A(EXP)(lka) Upgrade BBB+(EXP)(lka)
Hatton National
Bank PLC Natl LT AA-(lka) Upgrade A(lka)
subordinated Natl LT A(lka) Upgrade BBB+(lka)
Commercial Bank
of Ceylon PLC Natl LT AA-(lka) Upgrade A(lka)
subordinated Natl LT A(lka) Upgrade BBB+(lka)
senior
unsecured Natl LT AA-(lka) Upgrade A(lka)
Housing Development
Finance Corporation
Bank of Sri Lanka Natl LT BB+(lka) Affirmed BB+(lka)
senior
unsecured Natl LT BB+(lka) Affirmed BB+(lka)
Bank of Ceylon Natl LT AA-(lka) Upgrade A(lka)
subordinated Natl LT A(lka) Upgrade BBB+(lka)
Pan Asia Banking
Corporation PLC Natl LT BBB(lka) Upgrade BBB-(lka)
Nations Trust
Bank PLC Natl LT A(lka) Upgrade A-(lka)
subordinated Natl LT BBB+(lka) Upgrade BBB(lka)
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2025. All rights reserved. ISSN: 1520-9482.
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